Australian Financial Services (AFS) License Control Set

This is a control set to help manage AFSL compliance. These controls have been linked to applicable sections of Corporations Act 2001, Anti Money Laundering and Counter Terrorism Financing Act 2006 and Anti Money Laundering and Counter Terrorism Financing Rules Instrument 2007. Note that this is not an exhaustive list but indicative on managing licence arrangement. This control set can be updated to reflect individual and specific licence obligation requirement the organisation is required to meet.

AFS licensees have obligations relating to:

• conduct and disclosure

• the competence, knowledge and skills of responsible managers

• the training and competence of your financial advisers and authorised representatives

• ensuring financial advisers and authorised representatives comply with the financial services laws

• compliance, managing conflicts of interest and risk management

• the adequacy of your financial, technological and human resources, and

• your dispute resolution and compensation arrangements (if your clients include retail clients).

• notification of any changes to your AFS licence, such a your details change, (responsible managers, address and contact information), any changes to a financial adviser or authorised representative, appoint an auditor etc

• notify regulator when unable to meet, or have breached, any of the obligations

To help manage AFSL compliance, over 70 standard controls covering over 110 responsibilities have been divided into 15 different control domains:

1. Governance

2. Financial

3. Representatives

4. Capability and capacity

5. Monitoring and supervision

6. Training and competence

7. Dispute resolution

8. Conflict of interest

9. Promotion and marketing

10. Third party management

11. Indemnity

12. Anti-money laundering and counter-terrorism financing (AML/CTF)

13. Privacy

14. Breach reporting

15. Other