Appointing and ceasing an AFS authorised representative
- How representatives are authorised
- Who may be an authorised representative
- Authorised representatives may sub-authorise
- Authorised representative of 2 or more licensees
- Notifying ASIC of authorisation, variation or revocation
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), as modified by regs 7.6.04AA and 7.6.08 of the Corporations Regulation 2001,?relate to the appointment and cessation of authorised representatives by Australian Financial Services (AFS) licensees.
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) and 916B(3)).
The financial services specified may be some or all of the financial services covered by the licensee's licence (s916A(2) and 916B(4)).
An authorisation may be revoked at any time by the licensee or an authoriser?giving written notice to the authorised representative (s916A(4) and 916B(7)).
INFO 91?explains who can be an authorised representative of an AFS licensee.
An employee or director of a licensee is a representative of the licensee and does not need to be appointed as an authorised representative.
If the licensee is a partnership, unless the individual partners who engage in financial services are ‘employees’ of the partnership, they must be appointed as authorised representatives.
If the licensee is a group that is the trustees of a trust, each trustee who engages in financial services must be appointed as an authorised representative.
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).
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.
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).
You must notify us within 30 business days of the date an authorisation is issued (s916F(1) as modified by reg 7.6.04AA). This applies to both licensees authorising representatives and to authorised representatives who sub-authorise (subject to some limited exceptions). Refer to INFO 88.
To notify the appointment of an authorised representative you 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/s straight away by browsing our Professional registers.
The notification of appointment must indicate whether the authorised representative can 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 there is any change in the authorised representative's details (address, name, etc.), you must notify us within 30 business days using ASIC Connect.
If you cease an authorisation, you must also notify us within 30 business days of the cessation through?ASIC Connect.
For instructions on how to use ASIC Connect, refer to User guides for AFS licensees and authorised representatives and to AFS licensees?- Financial advisers register.