1. Determine which authorisations you need – It is important that you obtain the appropriate authorisations to operate your new financial services business. As a starting point, the following aspects must be considered:
- What financial products will your business be working with?
- Will you be dealing or providing advice in these financial products?
- Will this service be provided to retail or wholesale clients, or both?
- Will you be making a market in a financial product?
- Will you be operating a registered scheme?
- Will you be providing a custodial or depository service?
Sophie Grace will work with you to ensure you seek and obtain the appropriate authorisations needed to operate your business. Financial product/service delineations and boundaries are complex and it is easy to overlook or inaccurately define an aspect of your activities. There are serious penalties and repercussions for operating without an AFSL or without the correct authorisations.
2. Choose your Responsible Managers – You must ensure that the Responsible Managers (RM) nominated have appropriate skill and experience to provide the authorisations that your business is seeking. If you provide us with the Resume or CV of your staff or proposed RM candidate we can quickly advise you as to whether the person is suitable, and for which products. Alternatively we can put you in touch with candidates who will satisfy the requirements for the business you are seeking to operate.
3. Draft your Documents for ASIC – The documents submitted to ASIC for your AFSL application are known as ‘Proof Documents’. There are two types of proof documents, ‘Core Proofs’ and ‘Additional Proofs’. Core Proofs are the initial set of documents which go to ASIC. Sophie Grace will work closely with you to prepare the following proof documentation to meet the requirements of your ASIC AFSL application:
- Business Description (A5)
- People proofs for each nominated Responsible Manager – including police check, bankruptcy check and qualifications.
- Organisational Expertise Table (B1)
- Financial Resources Statements (B5)
4. Additional Proof Documentation – Depending on the authorisations for which your business is seeking to get an AFSL, ASIC will require the submission of additional proof documentation. Sophie Grace will prepare these documents for you and liaise with ASIC on your behalf. Some of the documents which may be required include:
- Development Program for Responsible Managers
- Compliance Arrangements
- Outsourcing Statement
- Conflicts of Interest Arrangements
- Program for monitoring, supervision and training of Representatives
- Human Resources Capacity Statement
- Dispute Resolution System Statement
- Risk Management System Statement
- Derivatives Statement
- Foreign Exchange Operating Statement
- Operate a custodial or deposit service
- Scheme Operating Capacity Statement
- Scheme Property Statement
- Market Maker Statement
- MDA Operator Capacity Statement
5. Ongoing Procedural Documentation – The ongoing compliance obligations of your new or varied AFSL will require procedure documents. Refer to our section on Procedural Documentation for more information.
If you would like to obtain further information or assistance, please contact Sophie Grace directly.