Financial services are defined in the Act as:
- Providing financial product advice (personal and/or general);
- Dealing in financial products (includes issuing and/or arranging);
- Making a market in financial products;
- Operate a registered scheme;
- Providing a custodial or depository service.
Financial products are defined as an instrument used to:
- Manage a risk
- Make an investment
- Make a non-cash payment
Classes of financial products are also defined and include:
- Foreign exchange
- Government bonds
- Basic deposit products (including cash and non-cash)
- Carbon units
- Margin lending facilities
- Insurance (including life and general insurance)
An entity may apply to be authorised to provide one or more type of financial services, and/or provide one or more financial product class to retail and/or wholesale clients. Financial product/service delineations and boundaries are complex and it is easy to overlook or inaccurately define an aspect of your activities.
If it’s not clear whether you need an AFSL or which authorisations are appropriate for your business, we will suggest you receive formal legal advice from our legal division (which gives you protection in the event of ASIC scrutiny). There are serious penalties and repercussions for operating without an AFSL or without the correct authorisations.
If you would like to obtain further information or assistance regarding an AFSL for your firm, please contact Sophie Grace directly.