An Australian Financial Services (AFS) licence holder is required to take reasonable steps to ensure that its representatives, including its Authorised Representatives, comply with the financial services laws. Do your ARs know what their obligations are? What ‘reasonable steps’ are you taking to ensure they comply with these laws?
Written in a clear and accessible style our suite of procedures and templates serves as a roadmap for the obligations imposed on the authorised representatives of AFS licensees under:
- the Corporations Act 2001;
- the Corporations Regulations 2001;
- the Anti-Money Laundering and Counter-Terrorism Financing Act 2006;
- the Privacy Act 1988;
- ASIC Regulatory Guides (RG) (formerly Policy Statements) and Class Orders; and
- AFS licence conditions.
Each of the procedures and templates below, once tailored to the licensee and AR’s businesses, 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.
AFSL Authorised Representative 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 and your authorised representatives.
The Authorised Representative Compliance Manual comprises over 100 pages of procedures, information sheets and working documents, and includes the following chapters*, **:
- The purpose of the manual
- Responsibility for this manual
- Your obligations under the financial services laws
- Professional indemnity insurance
- Marketing and promotional activities
- Privacy and information management
- Anti-money laundering and counter-terrorism financing
- Handling client money
- Best interests duty
- The first client contact
- The fact finding process
- Fact finding after the first contact
- Ongoing disclosure obligations
- Giving financial product advice
- Keeping a paper trail
- What if the client changes his or her mind on a product
- Conflicts of interest
- Advising a client in your capacity as an accountant
- Products you recommend
- Powers of attorney and executors of deceased estates
- Dealing with elderly or infirm clients
- Gearing policy
- IT policy
- Monitoring and supervision
- How you should deal with client complaints
- Reporting and incident or breach.
The Package includes working documents, including prescribed warnings and disclaimers, privacy consents, AML/CTF ID forms, client engagement letter and fact find templates, pro-forma fee disclosure statement and record of advice templates, among others.
AFSL Authorised Representatives Compliance Manual cost
The cost of the complete AFS Authorised Representatives Compliance Manual is $3,300 including GST.
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 particular types of clients). The cost of the procedures includes a one hour consultation with one of our lawyers to tailor the manual to your needs.
Is the manual exhaustive?
has assisted many financial services businesses in obtaining their licence, and conducted many adviser reviews of dealer groups and other financial services businesses required to comply with the procedures listed above.
The manual will provide a basis on which an AFS Licensee can ensure its ongoing legal responsibilities are communicated to its Authorised Representatives, in relation to that licence. However, these procedures will only support the legal responsibilities of the licensee if they are updated regularly to reflect ongoing regulatory and business changes.
Of course, an AR or AFS licensee may have other regulatory obligations not addressed by these procedures, depending on the nature of its particular business.
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.