Should you be Conducting More Stringent Monitoring and Supervision of your Representatives?

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If you are the holder of an Australian Financial Services Licence (AFSL) or an Australian Credit Licence (ACL) who authorises representatives to provide financial or credit services on your behalf, you need to meet a range of obligations in relation to these representatives.

Your obligations as the holder of the AFSL or ACL include:
• Conducting appropriate screening;
• Ensuring Authorised/Credit Representatives are appropriately trained and have the required knowledge and skills to provide services;
• Ensuring Authorised/Credit Representatives comply with your compliance measures;
• Identifying and addressing any activities which are high risk or outside of the authorisations given; and
• Implementing disciplinary action where required.

In light of the recent media attention which has surrounded the financial services and credit industries, it can be expected that ASIC will increase their surveillance of the industry with a particular focus on the way AFSL and ACL holders monitor and supervise their representatives.

As the holder of an AFSL or ACL, you should be engaged in frequent communication with your representatives and have thorough compliance and monitoring processes and procedures implemented which your representatives should adhere to. However, your obligations in relation to your Authorised or Credit Representatives do not cease when you terminate the representative from providing services under your licence. Read our blog article on procedures which should be followed upon terminating a representative.

Sophie Grace can assist with the implementation of adequate compliance processes and procedures for monitoring and supervising representatives. For any assistance, please contact Sophie Grace.

About The Author

Sarah Murray

Sarah works with the Compliance Team with a particular focus on compliance and legal services. Sarah works with the Legal Team providing ongoing assistance in drafting and reviewing documentation as well as legal research. Sarah assists clients with AFSL and ACL applications, variations and also assists in the implementation of compliance reviews. She provides ongoing compliance support in the form of compliance program implementation and reviews.

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