ASIC INFO216 – Combined Licensed & Non-Licensed activities for Accountant ARs

[KMacK]

Your comments/interpretation relating to the below would be appreciated:

Within the section headed “How the Exemptions will apply if you are covered by an AFS Licence” in ASIC INFO 216, the statement is made that if you are covered by an AFS Licence you cannot rely on the exemption for the provision of advice on the establishment, operation, structuring and valuation of a superannuation fund (reg 7.1.29(5)) to a retail client, because 7.1.29 (5)(d)(i) can’t be satisfied ie because an AFS Licensee or representative can’t provide a written statement that they are not licensed to provide financial product advice under the Corporations Act.

This appears to be suggesting that a Corporate Auth Rep and its individual representatives cannot conduct activities in the areas of “establishment, operation, structuring and valuation of a superannuation fund” on a non-licensed basis, while also conducting other activities on a licensed basis, as no form of “statement”/disclaimer would meet the requirements.

Could you please comment on your interpretation of the above.

[Andrew Ham]

Hello,

 

Thank you for your question.

 

We cannot give you specific legal advice without more information about your circumstances.  However you are correct, as a general principle, in saying that if you are covered by an AFS licence, any financial product advice provided (whether by the AFS licensee or its representatives) in regards to the establishment, operation, structuring and valuation of the fund, will need to be covered by authorisations on the licence.

 

As a Corporate Authorised Representative, your company and its duly sub-authorised directors and employees will be deemed to be representatives of the licensee, with authority to advise and deal in the financial products and services as set out in the licence, subject to any limitations imposed by the licensee.  You therefore need to ensure that your licence has all the authorisations you require to operate your business.

 

Please feel free to contact our Financial Services Team if you would like to obtain more specific legal advice on your particular situation.

 

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

 

 

[Author]

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