ASIC expects an AFS licensee or licence applicant to be responsible for deciding how to comply with the general obligations.
General obligations under s912A(1) of the Corporations Act 2001 (Corporations Act) are as follows:
- services covered by your licence are provided efficiently, honestly and fairly
- adequate arrangements in place for managing conflicts of interest
- comply with the conditions on your licence
- comply with the financial services laws
- representatives comply with the financial services laws
- comply with the ASIC Reference checking and information sharing protocol (ASIC protocol)
- have adequate financial, technological and human resources to provide the financial services covered by your licence and to carry out supervisory arrangements
- maintain the competence to provide the financial services
- ensure that your representatives are adequately trained and competent
- if you provide financial services to retail clients, have a dispute resolution system
- establish and maintain adequate risk management systems
LICENCE CONDITIONS
Are there additional conditions on the licence?
ASIC may impose additional licence conditions on a licence in certain circumstances. For example, ASIC may require the appointment of an independent expert to review all aspects of the licensee’s arrangements for compliance with its general licensee obligations. There may also be a key person condition on a responsible manager.
ASIC expects compliance with the general obligations from the time your AFS licence is granted and on an ongoing basis. If ASIC has a reason to believe that you are not complying with your obligations, they may take administrative action, which could include suspending or cancelling your licence, or imposing additional licence conditions.
We’re ready to help. This is a specialised area of audit practice, please contact Sandeep Kumar on +61 2 9263 2631 or skumar@hallchadwick.com.au to ensure that you meet your ongoing annual lodgement requirements with the most accurate and correct information needed for submission.
Key Contact
Sandeep Kumar
