Our associated law firm, Holley Nethercote Commercial Lawyers, conducts Australian Financial Services (AFS) licensee reviews and can assist with ASIC audits.
Licensee Review
This is an annual compliance review of the licensee's documentation, procedures and processes measured against the law, AFS licence conditions and regulatory obligations.
Our on-site visits take between half a day and a full day. They involve a review of office policies and procedures, and client files, in light of the Licensee's licence conditions, the Corporations Act and Regulations, ASIC's Regulatory Guides and what the industry considers as "best practice". This would usually involve a review of the following areas:
- compliance with licence conditions;
- licence activities;
- outsourcing arrangements;
- compliance arrangements;
- risk management;
- responsible officers;
- appointing, supervising and training representatives;
- giving advice;
- IT resources;
- human resources;
- dispute resolution procedures;
- conflicts of interest;
- breach reporting; and
- promotional material.
ASIC Audits
Sometimes, ASIC requires an AFS licensee to conduct a compliance audit using external compliance professionals. It may do this instead of requiring the licensee to enter an enforceable undertaking (EU), or it might require it when granting an AFS licence.
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