Australian Financial Services Licensees and Australian Credit Licensees are each required to have procedures in place to comply with their licence obligations. Do you know what your obligations are? Do you comply?
There are many similarities between the obligations of financial services and credit licensees. These procedures address all the obligations of AFSL and ACL holders in a single manual. ASIC expects licensees to maintain current and effective procedures that reflect the obligations under both licences.
The manual is designed in a way to let you control the content. It is important that you review it carefully and make the changes required to ensure it reflects your business.
Once tailored and implemented by you
, the manual helps you address
the requirements of:
- the Corporations Act 2001;
- the Corporations Regulations 2001;
- the National Consumer Credit Protection Act 2009 and Regulations;
- ASIC Regulatory Guides (RG) (formerly Policy Statements) and Class Orders; and
- Australian Financial Services and Australian Credit icence conditions.
The manual includes the following procedures:
1. Compliance arrangements*
2. Notifying ASIC of breaches and events*
4. Ensuring appropriate information in promotional material / advertising*
5. Maintaining adequate financial resources and records and compensation*, **
6. Handling clients’ money*, **
7. Dispute resolution*
8. Hardship (Credit providers only)*
9. Appointing representatives, and banned (conflicted) remuneration*
10. Appointing a Responsible Manager and/or Key Person*
12. Monitoring and supervising representatives*
13. Risk management*
14. IT resources*
15. Human resources*
16. Managing conflicts of interest*
17. Research policy*
18. Responsible lending*
19. Small and medium amount credit contracts*
20. Consumer statements*
Not all the procedures listed in the table 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).
AFS and AC licensee 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.
AFS and AC Licensee Compliance Manual cost
The cost of the complete AFS and AC Licensee Compliance Manual is $4,000 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?
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/Credit licence application.
The manual will provide a basis on which to ensure the ongoing legal responsibilities of an AFS/Credit licensee, in relation to that licence, are updated regularly to reflect ongoing regulatory and business changes.
Of course, an AFS/Credit licensee may have other regulatory obligations not addressed by these procedures. Examples include the areas of privacy, anti-money laundering, and industry-specific requirements.
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.