Australian Financial Services Licensing (AFSL) Forum

Home Forums Australian Financial Services Licensing (AFSL) Forum Do you list the CAR and the staff or just the CAR on the ASIC register Reply To: Do you list the CAR and the staff or just the CAR on the ASIC register

#4948 Reply

Andrew Ham
Member

Hello,

Thank you for your question.

It is important to be clear about the separate roles of the Register of Authorised Representatives and the Register of Financial Advisers.

If the staff member of the CAR is sub-authorised under the CAR Agreement to provide financial product advice on behalf of the licensee, then that person is also an authorised representative of the licensee.  In this case, there are two registers these individual financial advisers that are individuals must be registered on; the Financial Adviser Register, and if they are appointed under the CAR Agreement, as sub-authorised representatives also on the separate Authorised Representative Register.

The CAR, or the licensee on its behalf, must notify ASIC when it authorises any financial adviser to give financial product advice, within 15 business days of the appointment.  These “sub-authorised” advisers are authorised representatives for the purpose of the Act just as the CAR is.  This can be completed through ASIC Connect by providing adviser details to be uploaded onto the Financial Adviser Register.

Financial adviser’s details must also be kept up-to-date, as failing to do so will be a breach of the licensee’s obligations.

The adviser appointed as a sub-authorised representative might, nevertheless, issue SOAs in the name of the CAR.  This does not affect their registration obligations.  There are, however, circumstances where notification is not required.  Under s916F of the Corporations Act 2001, there is no obligation to notify ASIC of the appointment of financial advisers if the following conditions are met:

  • They are employees of the authorised representative and included in a specified class of individuals that the licensee has consented to authorise under s916B(5);
  • The financial services they are authorised to provide are limited to:

— general advice on and/or dealing in general insurance products, cash management trust interests or basic deposit products and related non-cash payment facilities (see reg 7.6.04A of the Corporations Regulations 2001); and/or

— personal advice on basic deposit products and related non-cash payment facilities; and

  • The authorised representative provides information about them and their authorisation when requested.

Please feel free to contact our Financial Services Team for further information.

Authors: Andrew Ham (Senior Lawyer) and Greta Walters (Legal Clerk)

 

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