AFS Licensee Compliance Manual

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$3,900.00

inc GST

An Australian Financial Services (AFS) licence holder is required to have procedures in place to comply with its licence obligations.  Do you know what your obligations are?  Do you comply?

Our suite of procedures and templates address the obligations imposed on AFS licensees under:

  • the Corporations Act 2001;
  • the Corporations Regulations 2001;
  • ASIC Regulatory Guides (RG) (formerly Policy Statements) and Class Orders; and
  • AFS licence conditions.

Each of the procedures and templates below, once tailored to your business, form part of a body of documentation ASIC requires a financial services business seeking or holding a licence to have.  Each licence holder will require a slightly different combination of these materials, depending on their activities and licence authorisations.  You can see examples here.

You can choose to purchase the compliance manual which contains all the procedures set out below - or - you can purchase individual procedures you need to enhance your existing compliance measures.

AFSL procedures - will they fit your business?

We understand the frustration and lack of relevance associated with a "one size fits all" approach, so have designed the procedures in a way which allows the licensee control of the content, and focus on what's relevant.  It is important, however, that you review them carefully and make the changes required to ensure they fit your business.

The AFS Licensee Compliance Manual includes the following procedures:

Compliance arrangements

This procedure* is an umbrella "compliance plan" supporting the other procedures in the manual.  It describes the necessary compliance personnel and committees, and their roles.  It:

  • meets the requirements of ASIC's RG 104 (Licensing: Meeting the general obligations); and
  • is benchmarked against the Australian Standard on Compliance Programs (ISO 19600).

Note: this procedure contains the Compliance Diary, also available as a separate product.

Cost: $250 (including GST)

Breach reporting

This procedure* sets out how to comply with breach reporting obligations under s912D of the Corporations Act.  It:
  • assists in compliance with ASIC's RG 104 (Licensing: Meeting the general obligations);
  • contains a template breach register and breach reporting form to help you assess whether the breach is significant and, therefore, reportable to ASIC; and
  • reflects ASIC's RG 78 (Breach reporting by AFS licensees).

Cost: $250 (including GST)

Outsourcing

This procedure* includes checklists and registers designed to assist you comply with ASIC's RG 104 (Licensing: Meeting the general obligations) when engaging external service providers.

Cost: $150 (including GST)

Ensuring appropriate information in promotional material/advertising

This procedure* includes a checklist designed to assist you comply with ASIC's RG 104 (Licensing: Meeting the general obligations).  Our detailed checklist helps ensure your advertising is not misleading, and complies with ASIC requirements set out in ASIC's RG 234 (Advertising financial products and advice services including credit: Good practice guidance).

Click here to see an example.

Cost: $250 (including GST)

Maintaining adequate financial resources and records and compensation

This procedure*, ** is designed to assist you comply with the conditions on your licence in relation to financial requirements, audit and professional indemnity insurance.  It also assists you to comply with ASIC's RG 104 (Licensing: Meeting the general obligations), and ASIC's RG 166 (Financial requirements).  The requirements vary widely depending on your licence authorisations, and must be tailored to your business and licence requirements, with assistance from your accountant.  

It also includes a checklist to help you comply with ASIC's RG 126 (Compensation and insurance arrangements for AFS licensees), that is, Professional Indemnity Insurance requirements.

Cost: $450 (including GST)

Handling clients' money

This procedure*, ** is essential if you hold client monies, and assists in compliance with ASIC's RG 104 (Licensing: Meeting the general obligations), and must be tailored with assistance from your accountant.

Cost: $150 (including GST)

Dispute resolution

If you provide financial services to retail clients, you must have internal and external dispute resolution procedures in place.  These are provided in this document, which includes a template complaints register.  This procedure*: 

  • complies with legal requirements and licence conditions;
  • reflects ASIC's RG 104 (Licensing: Meeting the general obligations) and ASIC's RG 165 (Internal and external dispute resolution); and
  • is benchmarked against ISO 10002 - 2006.

Cost: $250 (including GST)

Appointing representatives, and banned (conflicted) remuneration

Licensees should ensure background checks are completed when they appoint representatives, and, if they give financial advice, that no conflicted remuneration is given or received.  Most volume-based remuneration is presumed to be conflicted unless it can be demonstrated otherwise.  This procedure*:

  • assists in compliance with ASIC's RG 104 (Licensing: Meeting the general obligations);
  • includes templates and registers for use when appointing and authorising representatives; and
  • sets out the requirements for keeping the ASIC Register of Financial Advisers up-to-date if your advisers provide personal advice to retail clients.

Cost: $450 (including GST)

Training

A licensee must ensure its representatives are competent to provide the financial services authorised by the licence at all times.  

This procedure* includes a pro-forma training register and development plan for use by your representatives, and is designed to assist in compliance with the conditions of your licence, as well as:

  • ASIC's RG 146 (Licensing: Training of financial product advisers); and
  • ASIC's RG 104 (Licensing: Meeting the general obligations).

Cost: $250 (including GST)

Appointing a responsible manager and/or key person

A responsible manager is a person involved in day-to-day decisions about the provision of the financial services that the licensee relies on to demonstrate the competence required to hold an AFSL.  

This procedure* assists in compliance with ASIC's RG 104 (Licensing: Meeting the general obligations) and ASIC's RG 105 (Licensing: Organisational competence); as well as the key person licence condition.

Cost: $450 (including GST)

Monitoring and supervising representatives

Licensees are required to take reasonable steps to ensure that their representatives comply with the financial services laws.  This procedure* sets out pro-forma arrangements to monitor and supervise representatives, and:

  • assists in compliance with ASIC's RG 104 (Licensing: Meeting the general obligations);
  • includes templates and registers for use when carrying out monitoring activities;
  • includes a clear and plainly expressed checklist to explain the difference between no advice, general advice and personal advice; and 
  • includes practical guidance for how to design and implement a monitoring program.

Cost: $250 (including GST) 

Risk management   

This procedure* sets out how to conduct a risk management assessment of the licensee's business, and:

  • assists in compliance with ASIC's RG 104 (Licensing: Meeting the general obligations); and
  • is benchmarked against the Australian / New Zealand Standard ISO 31000 : 2009.  The procedure includes a template risk register and risk action plan.

Click here to see an example.

Cost: $750 (including GST)

IT resources

This procedure* helps you comply with ASIC's RG 104 (Licensing: Meeting the general obligations) in relation to IT requirements, including security, disaster recovery and service levels.  It requires tailoring with the assistance of your IT service provider.

Cost: $150 (including GST)

Human resources

This procedure* helps you comply with ASIC's RG 104 (Licensing: Meeting the general obligations).  It requires tailoring with the assistance of your HR Manager.

Cost: $150 (including GST) 

Managing conflicts of interest

All licensees are required to have effective measures in place to manage conflicts of interest.  This procedure*:

  • meets the requirements of ASIC's RG 181 (Licensing: Managing conflicts of interest);
  • includes the conflicts disclosure requirements that apply when giving personal advice to retail clients; and
  • includes a template conflicts of interest register.

Cost: $250 (including GST)

Credit activities and credit referrals 

If you refer clients to credit providers, or recommend credit products, this procedure* helps you comply with the consumer credit laws.  See also our ACL Superdocs page for further procedures and templates.

Cost: $650 (including GST)

Board, employee and associates trading policy

This procedure* is designed to assist in compliance with: 

  • market integrity rules for all market transactions;
  • regulatory requirements for providers of financial services; and
  • ASIC's RG 181 (Licensing: Conflicts of interest).

Cost: $450 (including GST)

Research policy 

This procedure* is designed to assist in compliance with ASIC's RG 175 (Licensing: Financial Product Advisers - Conduct and Disclosure) when licensees provide research reports in relation to a financial product.

Cost: $150 (including GST)

Client review and remediation

This procedure* covers the review and remediation procedure that should be undertaken when a systemic issue has been identified, and how to determine the review and remediation program that should be undertaken, as well as other related factors that must be considered in the process.  

Cost: $450 (including GST) 

Compliance diary 

This procedure* is a practical tool that ties together all the annual and quarterly obligations of the licensee into a 4-page checklist.  The procedure also distinguishes between legal and best practice obligations.

Cost: $150.00 (including GST)   


Download an example procedure

You can download an example risk management or promotional material procedure by clicking on the links.


AFS Licensee Compliance Manual cost

The cost of the complete AFS Licensee Compliance Manual is $3,900 including GST.

Not all the procedures provided in the manual will apply to every licensee.  Some will need to be deleted (e.g. if you do not handle client money or you do not deal with retail clients).  


Is the manual exhaustive?

Compact has assisted many financial services businesses in obtaining their licence, and has drafted pro-formas of the proofs which are required during the application process, which reflect the procedures listed above.  If the complete manual is purchased and then tailored to the licensee's/applicant's business, there will be adequate documentation in place to support an AFS licence application.  

The manual will provide a basis on which to ensure the ongoing legal responsibilities of an AFS licensee, in relation to that licence, are updated regularly to reflect ongoing regulatory and business changes.

Of course, an AFS licensee may have other regulatory obligations not addressed by these procedures.  Examples include the areas of privacy, anti-money laundering, and industry-specific requirements.



What's included?

Once payment is received, the manual is delivered via email as a downloadable file(s) in Word and Excel format, together with a tax invoice. 

*This procedure(s) will not comply with the regulatory requirements if it is not correctly tailored to your particular business and kept up-to-date.  Compact - Compliance & Training is not responsible for the tailoring and implementation or upkeep of each procedure once purchased by the licensee.  Compact - Compliance & Training can assist you tailor these documents.  The first step towards keeping your procedure(s) up-to-date is to subscribe to our tailored monthly regulatory update service, T-REX.  The content of each procedure will vary depending on legislative and policy changes and updates, as well as the nature of the licensee.  This procedure(s) is current on the date of purchase.  Whilst every care is taken in their preparation, Compact - Compliance & Training makes no representation that these documents are fit for your particular purpose, and accepts no responsibility for any loss or damage or cost incurred as a result of their use.  Compact - Compliance & Training takes no responsibility for formatting or other errors resulting from software errors, defects, incompatibility or viruses.

**This procedure(s) is only organisational.  It does not address financial reporting and financial auditing requirements.






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