Appointing and ceasing AFS authorised representative

See also Regulatory Guide 175 Licensing: Financial product advisers - conduct and disclosure

Sections 916A, 916B, 916C, 916D, 916E and 916F of the Corporations Act 2001 (the Corporations Act), relate to the appointment and cessation of authorised representatives by Australian Financial Services (AFS) licensees.

How representatives are authorised

You may authorise a person to provide a specified financial service or financial services on behalf of the licensee by giving the person a written notice (s916A(1)).

The financial services specified may be some or all of the financial services covered by the licensee's licence (s916A(2)).

An authorisation may be revoked at any time by the licensee giving written notice to the authorised representative (s916A(4)).

An employee or director of a licensee is a representative of the licensee and does not need to be authorised (s910A).

Who may be an authorised representative

Only a body corporate, natural person, partnership (see s761F) or a group of individuals that act as trustee (see s761FA) may be an authorised representative of an AFS licensee.

A trust fund is not allowed to be an authorised representative but the trustees of the fund may be authorised. Refer to INFO 91.

Generally, an AFS licensee cannot be the authorised representative of another AFS licensee. However, an AFS licensee who is an insurer, may authorise an AFS licensee who acts under a binder given by the insurer (s916D & E).

Authorised representatives may sub-authorise

Under s916B of the Corporations Act, an authorised representative may sub-authorise individuals to provide financial services on behalf of the licensee, but only where the licensee consents in writing. A body corporate that is an authorised representative will generally need to sub-authorise its directors and employees in order to provide financial services on behalf of a licensee. Refer to INFO 88.

Authorised representative of 2 or more licensees

One person can be the authorised representative of 2 or more AFS licensees but only if each of the licensees consents to the person being the authorised representative of the other licensees, or each of the licensees is a related body corporate of the other licensees (s916C).

Notifying ASIC of authorisation, variation or revocation of authorisation

You must notify us within 15 business days of the date an authorisation is issued (s916F(1). This applies to both licensees authorising representatives and to authorised representatives who sub-authorise (subject to some limited exceptions). Refer to INFO 88.

To notfiy appoint of an authorised representative you will need to use ASIC Connect. The information you submit immediately updates our AFS Authorised Representatives Register. This means you can find out the authorised representative's number straight away by browsing our Professional registers after you lodge your form.

The notification of appointment must also indicate whether the authorised representative is able to appoint further authorised representatives under your licence. If you do not notify us of this, we will not accept any notifications from them of sub-authorisations.

If you change the authorised representative's authorisation to allow it to appoint representatives after the initial notification to ASIC has been lodged, you need to lodge the paper form available.

You must notify us within 10 business days if there is a change:

  • in the name and business address of the representative;
  • in the details of the authorisation; or
  • in the details of each other financial services licensee on behalf of whom the representative is an authorised representative

If you revoke an authorisation, you must notify us within 10 business days of the revocation using the paper form available (s916F(3)).

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Last updated: 20/03/2015 03:00