• Australian Financial Services License

    australian financial services license

An Australian Financial Services License (AFSL) is essential to conduct financial services business in Australia. It is issued by the Australian Securities and Investments Commission (ASIC), the Australian financial regulator. An application for an AFSL has to be made by any person or business providing financial product advice to clients. It may also include dealing with financial products such as buying and selling of shares and debentures on behalf of a client. Once you obtain an Australian Financial Services License, you will also be able to appoint an authorized representative who would be able to operate without further licensing if they comply with your AFSL licensing conditions. It is important to note that an Australian Financial

License is essential if you are located abroad and offer services to Australia citizens or residents in Australia.

An application for an Australian Financial Services License is a well drawn out process and it is highly recommended that you obtain the services of an AFSL Specialist for the process. The application process is designed to evaluate if you are competent to carry on the financial service business mentioned in your application based on your resources and can meet obligations such as training, compliance, insurance and dispute resolution.

After application, ASIC may seek further clarifications or request additional documents which you will have to respond with support from your AFSL Consultants. Once approved, you will be issued with a license which you can use to commence your business.

Empire Global has a team of experienced professionals who will assist you through the entire process of Australian Financial Services License application including assistance in preparation of documents, submission of application and responding to any queries from the ASIC. We request you to get in touch with Empire Global at the earliest to understand the entire process in detail and apply for an Australian Financial Services License.

Australian Financial Services License

An Australian Financial Services License (AFSL) is essential to conduct financial services business in Australia. It is issued by the Australian Securities and Investments Commission (ASIC), the Australian financial regulator. An application for an AFSL has to be made by any person or business, if:

    • Financial product advice is provided to clients
    • Deals in financial products such as buying and selling of shares and debentures are made on behalf of a client
    • Markets are made for financial products by quoting prices at which people can buy or sell financial products
    • A registered management scheme is operated or managed investment schemes are offered to retail clients
    • Trustee company services such as estate management services are conducted

The definition of a financial product for an Australian FSL is quite wide and includes shares, bonds, superannuation, interests in managed investment schemes, life insurance, general insurance, derivatives and margin lending facilities. Once you obtain an Australian Financial Services License, you will also be able to appoint an authorized representative who would be able to operate without further licensing if they comply with your AFSL licensing conditions. It is important to note that an Australian Financial License is essential if you are located abroad and offer services to Australia citizens or residents in Australia.

An application for an Australian Financial Services License is a well drawn out process and it is highly recommended that you obtain the services of an AFSL Specialist for the process. The process of application is designed to evaluate if you are competent to carry on the financial service business mentioned in your application based on your resources and can meet obligations such as training, compliance, insurance and dispute resolution.

The process of application for an Australian Financial Services License starts with the selection of your Responsible Manager or Managers (RM) if you want to appoint multiple persons. The RMs will have to be vetted for their qualification. Each RM will have to submit their personal information, certificates of qualifications held, bankruptcy check certificate, national criminal history check and copies to two business references. You will also need to prepare your Business Description (A5), Financial Statements and Financial Resources proof (B5) and Organizational Competence (B1) which includes a Table of Organizational Competence. You will also need to provide details about the type of your business entity (A1) along with its incorporation documents. It is recommended that documents are prepared in consultation with Empire Global AFSL Specialists.

The next step is obtaining a Professional Indemnity Insurance (PI Insurance) for your business to ensure that your business can cover any liabilities arising for your activities. You will also have to obtain a risk management statement for your business (B7) and a registration with an ASIC approved external dispute resolution scheme. Based on the approvals for businesses that you seek, you may also be required to submit the following documents:

  • Development Program for Responsible Managers
  • Industry Standards Compliance
  • Compliance Arrangements
  • Arrangements for Managing Conflicts of Interests
  • Outsourcing Statement
  • Program for Monitoring, Supervision and Training of Representatives
  • Human Resources Capacity Statement
  • Information Technology Capacity Statement
  • Dispute Resolution System Statement
  • Risk Management System Statement
  • Compensation Capacity Statement
  • Research Statement

In case of very specialized businesses, ASIC will ask for further documents which will be communicated by your AFSL Specialist or Empire Global.
The crucial third step is the actual process for application and you will have to submit Australian Financial Services License Application Form (FS01) online and pay the application fee. Empire Global will normally complete the process on your behalf and submit the necessary documents after obtaining your authorization.

The fee for the application of an AFSL can vary from AU$ 2,333 to AU$ 7357 depending on the authorizations that you have sought and the type of your business structure.

After application, ASIC may seek further clarifications or request additional documents which you will have to respond with support from your AFSL Consultants. Once approved, ASIC will issue you a draft license which you will need to check for errors. Once you have verified its correctness, you will be issued the final license which you can use to commence your business.

Empire Global has a team of experienced professionals who will assist you through the entire process of Australian Financial Services License application including assistance in preparation of documents, submission of application and responding to any queries from the ASIC. We request you to get in touch with Empire Global at the earliest to understand the entire process in detail and apply for an Australian Financial Services License.

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