An Australian Financial Services (AFS) licence holder is required by law to have various compliance measures. Are you complying?
All the following procedures are aimed at addressing the obligations imposed on AFS licensees by:
- the Corporations Act 2001,
- the Corporations Regulations 2001,
- ASIC Regulatory Guides (formerly Policy Statements and Guides),
- AFS licence conditions, and
- other relevant financial services laws.
Each of the procedures below, once tailored to your business, would form part of a body of documentation required by ASIC when obtaining and holding a licence. Each licence holder will require a slightly different combination of these procedures, depending on their licence authorisations. You can see example procedures here.
AFSL procedures - will they fit your business?
We understand the frustration and the inappropriateness associated with a "one size fits all" approach, and have designed the procedures in a way which allows the licensee control of the content.
The following procedures are available for purchase separately or together at a discounted price.
Download an example procedure
You can download an example risk management or promotional material procedure by clicking on the links.
Full procedure manual cost
The cost of the complete procedure manual is $2,500 including GST.
Not all the procedures listed in the table will apply to the particular licensee. Some will need to be deleted (eg. If you do not handle client money using trust accounts). Typically, a licensee would require between 11 and 15 of the 15 procedures, depending on its authorisations.
Is the manual exhaustive?
If the complete manual is purchased and then tailored to the licensee's business, there will be adequate documentation in place to make an AFS licence application. Compact has assisted many financial services businesses in obtaining their licence, and has drafted the Pro Forma Proofs which are required during the application process, and which reflect the procedures listed above.
There will also be adequate documentation which, if used and tailored correctly, would support the ongoing legal responsibilities of an AFS licensee. (However - the procedures would only support the legal responsibilities of the licensee if they were updated on a regular basis to reflect ongoing regulatory and business changes.)
Contact us
Please contact us. We look forward to discussing your options with you.
Managing conflicts of interest
This procedure* is to meet the requirements of s912A(1)(aa) of the Corporations Act, which came into force on 1 January 2005. In particular, it:
- meets all the requirements of ASIC Regulatory Guide (RG) 181 - Managing Conflicts of Interest;
- includes all the conflicts disclosure requirements which must be dealt with in SoAs and FSGs;
- includes a conflicts of interest register.
Note: the procedure is not designed to satisfy the FPA Code of Practice on Alternative Remuneration.
Cost: $165 (including GST)
Compliance
This procedure* is:
- designed to meet the requirements of RG 104 - Licensing: Meeting the general obligations.
- benchmarked against the Australian Standard on Compliance Programs AS 3806-2006.
- designed to act as an umbrella "compliance plan" for the greater compliance manual.
Cost: $165 (including GST)
Breach Reporting
This procedure is essential in assisting the licensee to comply with its breach reporting obligations under s912D of the Corporations Act. This procedure:
This procedure is essential in assisting the licensee to comply with its breach reporting obligations under s912D of the Corporations Act. This procedure:
- assists in compliance with RG 104 - Licensing: Meeting the general obligations;
- contains a breach register and a breach reporting form which works through whether the breach is significant or not; and
- is benchmarked against ASIC's breach reporting guide.
Cost: $165 (including GST)
Outsourcing
This procedure* assists in compliance with RG 104 Licensing: Meeting the general obligations.
Cost: $110 (including GST)
This procedure* assists in compliance with RG 104 Licensing: Meeting the general obligations.
Ensuring adequate information in promotional material/advertising
This procedure* assists in compliance with RG 104: Licensing: Meeting the general obligations. It also helps satisfy ASIC's Pro Forma 209 (PF) licence condition 2 on your AFSL.
Click here to see an example.
Cost: $165 (including GST)
Maintaining adequate financial records
This procedure*, ** assists in compliance with RG 104 - Licensing: Meeting the general obligations, and RG 166 - Financial requirements. It is primarily organisational and must be tailored with assistance from your accountant.
Cost: $82.50 (including GST)
Financial Resources
This procedure*,** assists in compliance with RG 104 - Licensing: Meeting the general obligations and RG 166 - Financial requirements. It is primarily organisational and must be tailored with assistance from your accountant.
Cost: $82.50 (including GST)
This procedure*,** assists in compliance with RG 104 - Licensing: Meeting the general obligations and RG 166 - Financial requirements. It is primarily organisational and must be tailored with assistance from your accountant.
Handling clients' money
This procedure*,** is useful for trust account holders, and assists in compliance with RG 104 - Licensing: Meeting the general obligations. It is primarily organisational and must be tailored with assistance from your accountant.
Cost: $82.50 (including GST)
This procedure*,** is useful for trust account holders, and assists in compliance with RG 104 - Licensing: Meeting the general obligations. It is primarily organisational and must be tailored with assistance from your accountant.
Dispute resolution
An internal and external procedure are provided in this document, in addition to a complaints register. This procedure*: An internal and external procedure are provided in this document, in addition to a complaints register. This procedure*:
- has been designed to comply with RG 104 - Licensing: Meeting the general obligations;
- reflects the requirements of RG 165 - Internal and external dispute resolution;
- is benchmarked against the Australian Standard AS 4269-1995; and
- assists in compliance with PF209 licence condition 30.
Cost: $165 (including GST)
Compensation arrangements
This procedure* is designed to assist in compliance with RG 104 - Licensing: Meeting the general obligations. It incorporates your Professional Indemnity and Bond details. The procedure assists in complying with PF209 licence conditions 27, 28 and 29. Note as of 1 January 2008, bonds will no longer be required.
Cost: $82.50 (including GST)
This procedure* is designed to assist in compliance with RG 104 - Licensing: Meeting the general obligations. It incorporates your Professional Indemnity and Bond details. The procedure assists in complying with PF209 licence conditions 27, 28 and 29. Note as of 1 January 2008, bonds will no longer be required.
Appointing representatives
This procedure* is designed to assist in compliance with RG 104 - Licensing: Meeting the general obligations.
Cost: $175 (including GST)
Monitoring and supervising representatives
This procedure* is designed to assist in compliance with:
- RG 146 - Licensing: Training of financial product advisers; and
- RG 104 - Licensing: Meeting the general obligations.
Cost: $165 (including GST)
Training of representatives
This procedure* is designed to assist in compliance with:
- RG 146 - Licensing: Training of financial product advisers;
- RG 104 - Licensing: Meeting the general obligations; and
- PF209 licence conditions 6 and 7.The procedure includes a pro-forma training register and development plan which can be easily duplicated for each representative.
Cost: $165 (including GST)
Appointing a responsible officer
The procedure* is designed to assist in compliance with Regulatory Guide 104 - Licensing: Meeting the general obligations; and Regulatory Guide 105 - Licensing: Organisational competence.
Cost: $165 (including GST)
Replacing a key person
This procedure* is designed to assist in compliance with Regulatory Guide 104 - Licensing: Meeting the general obligations; Regulatory Guide 105 - Licensing: Organisational competence; as well as PF209 licence condition 3.
Cost: $82.50 (including GST)
This procedure*:
- assists in compliance with RG 104 - Licensing: Meeting the general obligations; and
- is benchmarked against the Australian / New Zealand Standard AS/NZS 4360:2004.The procedure includes a risk register and risk action plan.
Click here to see an example.
Cost: $275 (including GST)
Technological resources
This procedure* is designed to assist in compliance with RG 104 - Licensing: Meeting the general obligations.
Cost: $82.50 (including GST)
Human resources
This procedure* is designed to assist in compliance with RG 104 - Licensing: Meeting the general obligations.
Cost: $82.50 (including GST)
Compliance Diary
Although not required by law, this procedure is extremely helpful as it ties together all the annual and quarterly obligations of the licensee into a 3-page checklist. The procedure also distinguishes between legal and best practice obligations.
Cost: $100.00 (including GST)
* None of these procedures will comply with the regulatory requirements if they are not correctly tailored to your particular business. Compact - Compliance & Corporate Training is not responsible for the upkeep of these procedures once purchased by the licensee. The content of each procedure will vary depending on legislative and policy changes and updates, as well as the nature of the licensee. These procedures will be current on the date of purchase.
**This procedure is only organisational. It does not address financial reporting and financial auditing requirements.
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