What Is Authorised Representative (AR) or Corporate Authorised Representative (CAR)
An Authorised Representative (AR) or Corporate Authorised Representative (CAR) is an individual or a business entity that operates under the authority of an Australian Financial Services (AFS) licensee to offer specific financial services. Acting as an extension of the licensee, AR/CAR can deliver a range of services such as financial advice, investment management, insurance broking, and dealing in financial products, all within the scope of the agreement with the AFS licensee.
AR/CAR Responsibilities and Accountability
While AR/CAR work independently in their service delivery, the AFS licensee is ultimately responsible for ensuring compliance with legal and regulatory requirements. Therefore, it is critical for AR/CAR to ensure that all representatives under their umbrella are properly licensed, trained, and competent to perform the services they provide.
Key Obligations of AR/CAR
- Compliance with AFS Licensee Requirements: AR/CAR must adhere to the licensing, disclosure, and record-keeping requirements set forth by their AFS licensee to maintain compliance.
- Regulatory Obligations: AR/CAR must operate in full compliance with relevant legislation, including the Corporations Act 2001, and follow ASIC guidelines to meet regulatory expectations.
- Training and Competence: AR/CAR are responsible for ensuring their representatives have the necessary training and competence to provide financial services in accordance with regulatory standards.
- Adequate Insurance: AR/CAR must maintain appropriate insurance coverage to protect clients from financial losses arising from any potential breaches of their obligations.
- Client Interests First: AR/CAR must always act in the best interests of clients, offering financial advice that is tailored to individual circumstances and needs.
- Transparency: Providing clear and accurate information about fees, risks, and conflicts of interest is a fundamental obligation for AR/CAR to ensure informed decision-making by clients.
- Internal Systems and Controls: Effective risk management systems and controls are essential to ensure ongoing compliance and to address any risks associated with the provision of financial services.
Our firm has a well-established network of trusted AFS licensees ready to authorise and partner with Authorised Representative (AR) and Corporate Authorised Representative (CAR). With extensive industry connections, we are well-positioned to help businesses find the right AFS licensee to authorise their services. If you’re looking to become an AR/CAR or need assistance in finding a suitable AFS licensee, contact us today for expert guidance and access to a broad range of resources and partnerships.
