Released 26 April 2001. Comment closed 7 June 2001.

In this paper we outline:

• our general approach to the licensee obligations under the Law as amended by the Financial Services Reform Bill 2001 (the Bill) (Section A); and
• what we will expect of financial services licensees and applicants generally in meeting these obligations (Section B).

We also set out proposals for some specific licensee obligations in this paper; others are covered in related papers. The licensee obligations we discuss in this paper are:

• what compliance measures a licensee should have in place: this relates to all the obligations (Section C);
• what procedures a licensee should have for monitoring, supervising and training your representatives: 912A(c) and (f) (Section D);
• what skills and knowledge (“organisational expertise”) we expect a licensee to have: 912A(e) (Section E); and (d) for non-APRA regulated licensees:
  • what systems a licensee should have in place for managing risk: 912A(h) (Section F); and
  • what non-financial resources a licensee should have: 912A(d) (Section G).

We also outline:

• what a licensee must do when they apply for a licence to show they can meet these obligations (Schedule 1); and
• some typical issues a licensees should think about concerning its measures, procedures and processes designed to ensure it to complies with the licensee obligations (Schedule 2).

Download CP 18 (PDF 366 KB) | Read the media release