Sophie Grace works with numerous business types in the financial markets industry including, fund managers, financial planners and brokers, to help them obtain their own Australian Financial Services Licence (AFSL).
Applying to obtain or vary an AFSL can be a daunting and time-consuming task. Sophie Grace offers solutions to simplify the AFSL application process.
The basic steps you need to follow when obtaining an AFSL are:
It is crucial that you obtain the appropriate authorisations to operate your new financial services business. As a starting point, the following questions should be considered:
Sophie Grace will ask you these questions and more to ensure you seek and obtain the appropriate authorisations needed to operate your business. Financial product and service delineations and boundaries are complex and it is easy to overlook or inaccurately define an aspect of your activities. There are serious penalties and repercussions for operating without an AFSL or without the correct authorisations.
Read more about the types of financial products and financial services which are covered by the AFSL regime.
You must ensure that the Responsible Managers (RMs) nominated in your application have the appropriate skills and experience to demonstrate organisational competence in each of the authorisations that your business is seeking.
Generally, ASIC requires RMs to have:
Read more about the Responsible Manager requirements.
Sophie Grace can assist to assess whether your RMs meet ASIC’s stringent requirements. Alternatively, we can put you in touch with candidates who will satisfy the requirements for the business you are seeking to operate.
The documents submitted to ASIC for your AFSL application are known as ‘Proof Documents’. There are two types of proof documents, ‘Core Proofs’ and ‘Additional Proofs’. Core Proofs are the initial set of documents which go to ASIC. Sophie Grace will work closely with you to prepare the following proof documentation to meet the requirements of your ASIC AFSL application:
Depending on your business you may also be required to provide the following documentation:
Depending on the authorisations for which your business is seeking to get an AFSL, ASIC will require the submission of additional proof documentation. Sophie Grace will prepare these documents for you and liaise with ASIC on your behalf.
The ongoing compliance obligations of your new or varied AFSL will require procedural documentation. Refer to our page on AFSL Procedural Documentation for more information.
There are four ASIC portals that you will need to access:
ASIC requires AFSL holders to appoint an auditor within 1 month of the AFSL being granted. Form FS06 must be submitted to ASIC within 14 days of appointing an auditor.
Any entity that provides designated services must be enrolled with AUSTRAC within 28 days of commencing operation. Enrolment forms can be completed via AUSTRAC Online.
AFSL holders are required to notify ASIC of the appointment of any Authorised Representative or Financial Advisers within 30 days of the appointment via the ASIC Connect portal. Any changes to Authorised Representative/Financial Adviser details are also required to be notified to ASIC within 30 days.
It’s important you have established compliance procedures at this time to ensure you are meeting your ongoing compliance obligations.
AFSL holders must commence their financial services business within 6 months of receiving their final AFSL. ASIC has the power to cancel an AFSL if the licensee fails to commence its business within this timeframe. AFSL holders can request an extension of time from ASIC if there are genuine reasons to do so.
If you would like to obtain further information or assistance, please contact Sophie Grace directly.
Sophie Grace’s Head of Licensing, Sarah Chapman, goes through the AFSL Application Process.
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