The standard answer to your question is that your systems need to be scalable to the nature of your business. That said, ASIC has a bunch of expectations that effectively set a minimum benchmark. There are plenty of off the shelf compliance procedures kits that include a monitoring program and a compliance diary or equivalent (we have one, for example). However, when implementing the supervision and monitoring, that comes down to actual practice and can be difficult to do in a way that doesn’t stifle business – as you rightly point out. For example, call centres may require a script to be used and then compliance staff will monitor a percentage of calls and check them off against a compliance checklist. We have a client that only offers one product and gives some general advice but primarily gives no advice. We provide no-advice training to their staff approximately annually. There are also various “do’s and don’ts” checklist using traffic-light systems that are used in their office. Monitoring and supervision in their instance is fairly “light touch”, but is scaleable and appropriate to the amount of financial services provided. I would be interested to know how the two ARs (I assume you mean Authorised Representatives) are issuers. Is this via an Intermediary Authorisation? Using ARs as issuers throws up a few complex and interesting legal issues.
If you require further information, please feel free to contact our office.
Author: Paul Derham
