Australian financial services license or AFS licenses have some general obligation for providing fair, honest, and efficient financial services and solutions. The Australian Financial Services Licence or AFS License used to conduct the financial services business in Australia. This license is generally issued by the ASIC or Australian Securities Investments Commission. If you would like to run a financial services business across the country, an AFS License authorization. In this blog, we are talking about the Australian Financial Services Licence.
The Necessity Of AFS License:
In Australia, AFSL is essential for conducting financial services. This is highly essential. Compliance companies prepare all kinds of procedural documentation for addressing the obligations that are imposed on AFSL holders by the CTF/AML legislation, AFS Licence conditions, ASIC Regulatory guides, and other financial services laws. So, AFS License generally authorizes individual for:
1.Making the market for the financial items
2.Offering the custodial service
3.Providing financial item advice
4.Providing traditional services
5.Dealing with a variety of financial products
6.Operating the Registered schemes
Financial items generally include a number of things like bonds, shares, managed investment schemes, life insurance, derivatives, general insurance, margin lending facilities, and superannuation. As a representative of an AFS licensee, you should select for providing financial services.
How Do Compliance Consulting Organizations Work With AFSL?
Many reputable and professionals compliance consulting organizations in Australia assist a company that can hold the Australian Financial Services Licence with AFSL compliance. Let’s take a closer look at the following areas that a compliance consulting organization generally helps. They are
What Are The Suggested Areas For AFSL Holders?
Suggested areas for AFSL holders are mainly tailored based on the business requirement.
Some areas of external review are mentioned below.
- Compliance Training
- Compliance Plan & Policies
- Compliance Monitoring
- Internal Audit
- Compliance Governance
- Risk Management
- Breaches & Incidents
- Outsourcing processes
- Competence & training of Representatives
Policy Drafting And Procedure
A good compliance consulting company mainly manages and assists with some compliance policies and procedures. They include:
1.Appointment, training, and termination
3.Conflict of interest management
4.STP or Stuff trading policy or
8.Registers (complaints registers, breach register, training register, etc)
This short not showcases the major things about the Australian Financial Services Licence. Without authorizing this license, a company or any individual can not deliver any financial advice. So, AFSL or Australian Financial Services License is necessary.