ASIC expects a structured and systematic process for identifying, evaluating and managing risks faced by your business. The measures in place will contribute to compliance with the obligation to have adequate risk management systems on an ongoing basis.
ASIC expects the risk management systems will:
- be based on a structured and systematic process that takes into account your obligations under the Corporations Act;
- identify and evaluate risks faced by your business, focusing on risks that adversely affect consumers or market integrity (this includes risks of non-compliance with the financial services laws);
- establish and maintain controls designed to manage or mitigate those risks; and
- fully implement and monitor those controls to ensure they are effective.
Obligations of a financial services licensee regarding its representatives
Representatives who provide financial services must have, and maintain, the necessary knowledge and skills to competently provide those services.
- take reasonable steps to ensure that your representatives comply with the financial services laws
- comply with the ASIC protocol
- must have adequate resources
- need to monitor and supervise
- measures for monitoring and supervision will include carrying out appropriate background checks before you appoint new representatives.
- representatives are trained and competent applies only in relation to your representatives who provide financial services.
- remain responsible for all of the financial services provided under your licence, regardless of how, or by whom, those services are provided including customer service representatives, para-planners and trainee advisors.
We’re ready to help. This is a specialised area of audit practice, please contact Sandeep Kumar on +61 2 9263 2631 or email@example.com to ensure that you meet your ongoing annual lodgement requirements with the most accurate and correct information needed for submission.