Australian Financial Services Licensing (AFSL) Forum

#4625 Reply

Hi Damien,

Thanks for the question.

 

As a starting point, we would suggest that you read the licensing kit contained in RG 1, 2 and 3 which can be found on the ASIC website.  RG105 will also provide a better understanding of organisational competence and requirements of responsible managers.  It includes some information about the education courses accepted by ASIC.

 

When applying for a financial services license it is often difficult to find a suitable responsible manager to demonstrate the licensee’s competence to provide financial services, and who has the required qualifications and experience.

 

Under ASIC’s RG105 there are five options available to demonstrate the skill and knowledge required of a responsible manager.  To demonstrate skill, the minimum ‘relevant experience’ is 3 years within 5 years.  It may be that not all industry experience is accepted, depending on the circumstances.  Generally the experience component should be served under another AFSL in the form of qualifications.  Working or trading on your own behalf will likely not be accepted.  The knowledge component must also be satisfied.  RG146 alone may not be enough to meet the requirements.

 

Given the nature of the forum we refrain from discussing your proposed business structure and the circumstances which relate to your need for a financial services license.

 

The requirements are complex and we would advise you to seek legal advice on the matter to ensure you meet the minimum requirements set by ASIC.

 

Please feel free to contact our financial services team if you require further information.

 

Author: Michelle Chasser

Co-contributor:  Georgia Dixon

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