Written by Tetiana George
Appointing and managing AFSL (Australian Financial Services License) authorized representatives involves several critical components to ensure compliance with Australian financial regulations and to maintain a successful business relationship. Here are five key components:
1. Due Diligence and Selection:
– Conduct thorough due diligence when selecting authorized representatives. This includes evaluating their qualifications, experience, and track record in the financial services industry.
– Ensure that the authorized representative aligns with your business values and objectives to maintain a mutually beneficial relationship.
2. Licensing and Compliance:
– Ensure that the authorized representative holds the necessary AFSL or is appropriately authorized to act on your behalf under your AFSL.
– Regularly review and update your authorized representative agreements to reflect changes in regulations and compliance requirements. For example, updates in the Privacy regulations, Complaints handling etc.
3. Training and Education:
– Provide comprehensive training and ongoing education to your authorized representatives regarding your products, services, compliance obligations, and industry developments.
– Implement processes to verify that representatives remain knowledgeable and up-to-date on relevant regulations.
4. Supervision and Monitoring:
-Establish robust monitoring and supervision processes to oversee the activities of your authorized representatives.
-Regularly review their most critical client interactions, advice provided, and compliance with your policies and procedures.
-Implement reporting mechanisms for authorized representatives to promptly alert you to any potential compliance issues or breaches.
5. Record Keeping and Reporting:
– Maintain accurate and comprehensive records of all interactions and transactions conducted by your authorized representatives.
– Ensure timely reporting of any breaches or misconduct to the Australian Securities and Investments Commission (ASIC) as required by law.
– Implement a system for tracking and reporting key performance indicators (KPIs) to assess the effectiveness of your authorized representatives.
Additionally, it’s crucial to stay informed about changes in AFSL regulations and industry best practices to adapt your processes and requirements as needed. Engaging legal and compliance professionals with expertise in Australian financial regulations can also help ensure that your business remains in compliance and avoids legal issues when appointing and managing authorized representatives.
Curium Compliance module can help you establish and run effective supervision in real time as well as become your training and educational partner of choice.
What you get:
Oversight over entire network while lowering the cost of compliance
– All compliance data in one place on a dashboard
– Real-time data for each AR
– Onboard new ARs in minutes
– Use pre-configured settings (no need to re-invent the wheel)
– Allow us to train them
Bring more value to your ARs & partners
– Make Compliance part of your proposition
– Make it simple
– No fixed or installation costs
– Transparent & predictable pricing
What your AR get:
Peace of mind that compliance “works”
– No need to start from scratch – the Compliance toolkit is in the system already
Ongoing trainings, incl. for new joiners
– We have a library of existing trainings available to our clients
– We run live trainings on reg changes, examples, specific topics
High degree of automation – no more manual reporting
– All data lives in the system and can be shared
– Pre-configured reporting for certain cases (e.g., ASIC RG 271)