Obtaining an AFSL is a crucial step for individuals and businesses looking to provide financial services in Australia. The Australian Securities and Investments Commission (ASIC) regulates the financial services industry to protect consumers and maintain the integrity of the market. An AFSL is required under the Corporations Act 2001 for entities engaging in various financial activities.
We understand that obtaining an AFSL is a crucial step for individuals and businesses looking to offer financial products and services in Australia. Our dedicated team of experts is here to guide you through the application process, ensuring compliance with regulatory requirements and maximizing your chances of a successful outcome.
Financial services and products
Financial services are defined in the Act as (included but not limited to):
- Provide financial product advice
- Deal in a financial product by:
– issuing, applying for, acquiring, varying or disposing of a financial product
– applying for, acquiring, varying or disposing of a financial product on behalf of another person - Make a market for financial products
- Underwrite a financial product
- Provide a custodial or depository service
- Operate a registered managed investment schemes
- Provide a claims handling and settling service.
There are some financial products that are defined by ASIC:
- Securities
- FX contracts
- Derivatives
- Superannuation
- Debentures, stocks or bonds issued or proposed to be issued by a government
- Deposit and payment products
- Insurance product
- Standard margin lending facility
- Interests in managed investment schemes
- Managed discrectionary accounts
- Retirement savings accounts
Clients must obtain an AFSL to legally provide financial services in Australia. The AFSL acts as a regulatory framework that ensures individuals and businesses meet specific standards, obligations, and licensing requirements. Holding an AFSL demonstrates a commitment to professionalism, compliance, and consumer protection, enhancing client trust and credibility in the financial services sector.
AFSL Application and Licensee Requirements:
The AFSL application process involves meeting stringent criteria and providing comprehensive documentation to demonstrate compliance with regulatory obligations. The application requires the completion of ASIC forms, submission of financial statements, development of compliance policies and procedures, and identification of key personnel responsible for overseeing licensed activities.
Key Persons or Roles:
The AFSL application requires identifying individuals who will hold key positions within the licensee organization. These may include responsible managers, who have the necessary skills and expertise to ensure compliance and supervise financial services activities. Our team can guide you through the requirements for key personnel and assist in determining suitable individuals for these roles.
Core Proof and Additional Proof Documents:
The AFSL application requires the submission of core proof documents that serve as evidence of your organization’s ability to comply with regulatory obligations. These may include
- A5 business description
- B1 organisational competence
- Cash flow projection
- Derivative statement
- Human resource statement
- Outsourcing statement
Timeframe and Application Process:
The timeframe for an AFSL application can vary based on the complexity of your business model and the completeness of the documentation. In general, it usually takes 6-12 months. Our team will provide an estimated timeline and guide you through each step of the application process. We ensure that all necessary requirements are met promptly to expedite the application.
Our AFSL Application Assistance:
At Acp Advisory, we offer comprehensive assistance throughout the AFSL application process. Our experienced team will work closely with you, understanding your specific needs, and providing guidance in compiling and reviewing the necessary documents. We ensure that your application is comprehensive, compliant, and optimized for success. Our expertise and personalized approach will support you in meeting regulatory requirements and successfully obtaining your Australian Financial Services License.
