AFSL Application
Organisations that wish to provide financial products and services in Australia are generally required to obtain an Australian Financial Services Licence (AFSL), or as an authorised representative under an AFSL, with the appropriate authorisations.
1. The Application Process: How We Can Assist
We may be able to help you through the application process and take the pain out of your hand, so you can focus on the planning and establishing your operations. We may be able to assist in the following aspects:
a. Selecting Responsible Manager (RM) Candidates
An AFSL cannot exist on its own, but rather must be held through your RMs. It is therefore crucial that your RM candidates, collectively, cover each and every authorisation sought in your AFSL application in terms of both the knowledge and skills competency requirements under RG 105 AFS Licensing: Organisational Competence.
We can help you assess your RM candidates and depending on the authorisations sought, we may be able to connect you and potential RM candidates.
b. Preparing Proof Documents
Proof documents are the documents that must accompany your AFSL application. There are two types of proof documents:
- Core Proofs: These are documents that must be provided to ASIC regardless of the authorisations sought, including A5 Business Description, People proof documents for each RM, B1 Organisational Competency and B5 Financial Statements and Resources Statements.
- Additional Proofs: These are the further proof documents that may be required, depending on the nature and scope of the authorisations sought. These may cover areas such as compliance arrangements, risk management, conflicts of interest management, dispute resolution, dispute resolution and so on.
c. Assisting with the Preparing and Lodging of the Application Form
Once all the proof and other documents are in order, you are ready to complete and submit the AFSL application form. We can assist you with the completion and lodgement of the application form.
d. Liaising with ASIC with respect to the AFSL Application
ASIC may seek further information and/or documents in order to assess your AFSL application. We may be able to help you responde to these queries in a timely manner.
2. Your AFSL Has Been Granted. Now What?
Congratulations on reaching the finish line! You can now offer your financial products and services in accordance with your AFSL conditions and the applicable financial services law. You may wish to check the following points:
a. Auditor Appointment
You need to appoint an auditor within one month of obtaining your AFSL.
b. Membership of the Australian Financial Complaints Authority (AFCA)
In the event that your AFSL allows you to deal with retail clients, it will be a condition on your AFSL that you must obtain and maintain your AFCA membership.
c. Insurance
If your AFSL authorises you to deal with retail clients, it will be a condition of your AFSL to obtain adequate professional indemnity cover.
d. AUSTRAC Enrolment & Registration
If your products and services fall within one of the items referred to in s 6(2) of the AML/CTF Act, you will need to enroll with AUSTRAC within 28 days from the commencement of your operations.
If you propose to offer remittance or digital currency exchange services, you are required to obtain AUSTRAC registration before you can offer such services. See AUSTRAC Registration & Enrolment for further details.
e. Compliance Policies and Procedures
While you are likely to have drafted a number of proof documents that are compliance policies in nature, it is highly possible that these documents do not cover all the regulatory requirements applicable to your business. We may be able to assist you with the following:
AFSL Compliance Policies Drafting
Ongoing AFSL Compliance Monitoring
AFSL Responsible Manager Nominations and Variation of AFSL conditions
To find out more about how we could assist with the AFSL application process, simply click here to book an obligation-free virtual coffee with our founder and director Xiaoshu Liu.
Note: We are not legal practitioners and cannot give legal advice. We will do everything we can to assist you through the AFSL application process with due diligence and care. However, we cannot guarantee a particular outcome.