Training and Compliance Policy

[Archived User]

Hi there,

The Group I represent is a ‘Holding’ company that wholly owns two ARs, who are the issuers.
I have attempted to buid the AFSL compliance framework from zero and I’m floudering a bit with regards to the above. I wish to include monitoring and supervision into this document as well as training and legal compliance matters. As a Group we only provide general advice, with regards to a non cash payment product, and I do not want to overburden managers with unneccessary compliance tasks. If anyone can suggest an acceptable level of training/supervision/monitoring with regards to Compliance for the purposes of AFSL it would be appreciated.

[Archived User]

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

[Author]

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