FACT SHEET – Should I have my own AFSL? – Finance and Banking

Australia:

FACT SHEET – Ought to I’ve my very own AFSL?

13 June 2020

Holley Nethercote industrial & monetary companies legal professionals

Does the licensing regime stop you from being an authorised
consultant of an present AFSL holder? Are you getting bored with
receiving payments out of your licensee for the privilege of being a
consultant underneath their licence each month? Fascinated with the
freedom of holding and working your personal AFSL? Are you aware the
full extent of the prices, time, and useful resource necessities for
holding your personal AFSL? Listed here are a few issues to consider
as you make your determination.

There are benefits in working underneath an
present licensee as a company authorised consultant or an
authorised consultant:

• Many authorized dangers are with the licensee.




• The licensee incurs the prices (it’s generally a more cost effective
  possibility than acquiring and sustaining your personal licence).




• The licensee gives techniques, templates, analysis and
  coaching.




• You should use this era to achieve related, business
  expertise.

Nevertheless, there different benefits of holding your
personal licence, reminiscent of:

• With the ability to present the precise monetary companies and
  monetary merchandise that you really want (there are particular authorisations
  that solely a licensee can present, for instance, issuing
  monetary merchandise.




• You possibly can develop your online business by authorising others (for a price)
  to supply sure monetary companies underneath your licence.




• It may be extra worthwhile as a result of your authorised
  representatives pay you a price for offering companies underneath your
  licence.




• You’re your personal boss, and have the pliability to hold on
  enterprise the best way you need.

Does it matter who my purchasers are?

Figuring out, classifying, and holding up-to-date data of
precisely who your purchasers are, will help you with the continued
operations of your online business and compliance together with your licensing
situations, greater than you’ll initially think about.

AFS licensees can have authorisations for retail purchasers,
wholesale purchasers, or each. Are you aware the distinction between
retail and wholesale purchasers? Do you want retail authorisations on
your licence? The solutions to those questions are necessary to
assembly your ongoing obligations, however are additionally a licensing set off
level.

Retail shopper authorisations
add a number of additional obligations as a licensee – PI
insurance coverage, inner dispute decision, EDRS membership and
advisory obligations (FoFA and finest pursuits obligations and so on).
Your representatives can even want to fulfill the minimal academic
and coaching necessities to supply monetary product recommendation to
retail purchasers every year (Skilled Requirements and FASEA
necessities). Offering monetary product recommendation to retail purchasers
could be mentioned at size right here. It is very important know the way this
impacts your online business, licence situations, and the extra
necessities on the utility stage.

The content material of this text is meant to supply a basic
information to the subject material. Specialist recommendation ought to be sought
about your particular circumstances.

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