Responsible managers (RMs) are the people that the licensee relies on to prove to ASIC that it can competently operate a financial services business.  They are required to make significant day-to-day decisions for the licensed operations and play an important role in ensuring that licensees operate in accordance with their obligations and regulatory requirements in[…]

Spectrum Wealth Advisers Pty Ltd (Spectrum), the holder of an AFS licence, was in the business of authorising representatives to provide financial planning advice to clients.  It also provided marketing and other support services and received a share of the fees charged by its representatives.  ASIC claims that Spectrum failed to diligently recruit, train, monitor[…]

Australian financial services licence (AFSL) holders must comply with the general licensing obligations under the Corporations Act, including: ensuring financial services are provided efficiently, honestly and fairly complying with licence conditions and financial services laws managing conflicts of interest ensuring that representatives comply with relevant licensing obligations and are adequately trained and competent maintaining competence[…]

When making disclaimers in information, marketing or promotional material about financial services products that will be circulated to the general public, be aware that regulatory policies and specific legal requirements apply. Regulatory Guide 234: Advertising financial products and services (including credit): Good practice guidance, issued by the Australian Securities and Investments Commission, is essential reading[…]

Until recently, AUSTRAC presented as a low profile regulator which, possibly, led to the perception that AML/CTF requirements presented a low regulatory risk. In recent times, however, AUSTRAC has wielded a big stick against 2 of the major banks. In 2018, the CBA was fined $702 million for breaches. (The fines could have been many[…]