AFSL Applications

CNM Legal’s expertise carries across all forms of AFSL application and variations and across all financial services, financial products and business types.

AFSL Application Services

CNM Legal is an industry-leading financial services law firm specialising in AFSL application services. With over 20 years of concentrated experience in financial services licensing, we act as a trusted advisor to a broad range of financial institutions, from start-ups to ASX-listed entities.

Our legal team offers legal advice and expertise to deliver a successful AFSL application, from basic applications to the highly complex. Our clients benefit from our deep industry knowledge and experience to guide them through ASIC’s regulatory maze.

CNM Legal’s expertise extends to all forms of AFSL applications and across all financial services, financial products and business types. We service both Australian and international clients.

Benefit from CNM Legal’s decades of AFSL application experience and assured AFSL legal advice. Contact us today to learn how we can help you navigate the AFSL application process.

Accountants limited AFS licence

Accountants limited AFS licence

As part of the Future of Financial Advice (FOFA) reforms, the exemption in the Corporations Regulations 2001 (Cth) which allows accountants to give advice about self-managed superannuation funds (SMSFs) without holding an Australian financial services (AFS) licence will be repealed on 1 July 2016.
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CFD and other OTC derivative providers

CFD and other OTC derivative providers

Contracts for difference and other over-the-counter (OTC) derivative products such as binary options generally require the operator to hold an AFS licence with an authorisation to make a market.
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Corporate advisors and independent experts

Corporate advisors and independent experts

There are some exemptions under the Corporations Act which provide licensing relief for certain aspects of corporate advisory work.
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Financial planners, investment advisors and brokers

Financial planners, investment advisors and brokers

Financial product advice includes a recommendation or opinion that can reasonably be regarded as being intended to influence a person’s decision to buy, sell or hold a particular financial product
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Insurers and insurance brokers

Insurers and insurance brokers

Insurance intermediaries and insurers provide opinions and recommendations about the insurance products in which they deal and are therefore required to hold an AFS licence or be an authorised representative of a licensee.
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Managed discretionary accounts (MDAs) or separately managed accounts (SMAs)

Managed discretionary accounts (MDAs) or separately managed accounts (SMAs)

Generally, MDA services are arrangements that involve a person (an MDA operator) managing a portfolio of assets for a retail client on an individual basis.
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Responsible entities, wholesale trustees and investment managers

Responsible entities, wholesale trustees and investment managers

If you want to operate a managed investment scheme, then you will generally need to hold an AFS licence.
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Carbon Credits

Carbon Credits

If you wish to operate a business that participates in carbon markets, i.e. buying, selling and trading Australian carbon credit units (ACCUs) and safeguard mechanism credit units (SMCs).
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AFSL Application Process

CNM Legal will guide you through the AFSL application process from start to finish. As part of our AFSL application assistance, we:

Meet Our Team

Alanah McAliece

Corporate Legal Assistant

Alanah is a corporate legal assistant at CNM Legal. Alanah is involved in assisting in the preparation and lodgement of Australian financial services (AFS) licence applications and variations, including assisting with reviewing the experience and qualifications of potential responsible managers.
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Jessica Bauers

Graduate Law Clerk

Jessica is a graduate law clerk at CNM Legal and holds a Bachelor of Business and Bachelor of Laws. She is experienced in the corporate advisory, financial services and funds management legal services provided by CNM Legal.
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Our role as your AFSL legal advisor is to guide you through the AFSL application process in an efficient and expert manner.

While there is only one licence for financial services in Australia, there are multiple different authorisations that we can help you obtain.

While there is only one licence for financial services in Australia, there are multiple different authorisations that we can help you obtain.

All AFS licensees (other than those regulated by APRA) must be solvent and have positive net assets.

Holding your own Australian financial services licence (AFSL) is an important step for any financial services business. 

A fundamental question before you apply for an AFSL is whether you will be providing services to retail clients or wholesale clients —or both. 

FAQs

Our role as your AFSL legal advisor is to guide you through the AFSL application process in an efficient and expert manner, and to prepare all the documentation necessary for you to apply for an AFSL or vary an AFS licence. In order to deliver a successful outcome, our legal advice for an AFSL application may include:

  • Advising you on the authorisations that you will require to successfully apply for an AFSL.
  • Reviewing and identifying the right AFSL responsible managers and preparing agreements.
  • Reviewing professional indemnity insurance to ensure AFSL compliance.
  • Preparing ASIC form FS01
  • Preparing your business description statement for your AFSL application.
  • Assisting you to prepare your financial statements.
  • Preparing your table of organisational competence.
  • Preparing the additional proofs ASIC may request during the AFSL application process.
  • Assisting you in answering ASIC requisitions on the AFSL application.

While there is only one licence for financial services in Australia, there are multiple different authorisations that we can help you obtain, depending on what you plan to use your licence for financial services for. Every AFS licence is different, and not every licensee is authorised to provide all the financial services it is possible to provide. Some licensees, like independent experts, may only need a very limited AFS licence, whilst fund managers generally require licences with a number of authorisations. Determining what authorisations you require will also determine the AFSL responsible managers you need to nominate, so this step is critical in the process. Here are a few of the different types of AFSL’s we’ve helped our clients obtain.

  • Financial Planning Licence
  • Foreign Exchange Licence
  • CFDs Licence
  • Managed Funds Licence
  • Limited Licence (for Accountants)
  • APRA Licence (ADIs/Banking Licence)
  • Stock Broker’s Licence
  • …and More
Any AFSL application rises and falls on the experience and knowledge of the nominated AFSL responsible managers. A responsible manager is a person who is responsible for the day-to-day decision making about the financial services provided by an AFS licensee. This does not mean that they personally have to be providing the services— but they are responsible for the supervision of those that do provide the services. In our role as your AFSL legal advisor, we can not only vet your proposed responsible managers and identify any skill gaps, but also leverage our extensive industry network to suggest qualified candidates to ensure a successful AFSL application.CNM Legal also offer a free AFSL Responsible Manager training course to ensure AFSL compliance.Our services include:
  • Reviewing resumes of any proposed AFSL responsible managers.
  • Identifying any skill or experience gap among the proposed responsible managers.
  • Assisting you in identifying and recruiting responsible managers to provide the requisite skill or experience, either internally or on a consulting basis.
  • Preparing responsible manager AFSL appointment agreements.
  • Preparing pro forma reference letters for your responsible managers.
  • Assisting you in obtaining criminal history checks and bankruptcy searches for your nominated AFSL responsible managers.
  • Providing free training for AFSL Responsible Managers

All AFS licensees (other than those regulated by APRA) must be solvent and have positive net assets. In addition, to apply for an AFSL, licensees must prove they have, or have access to, sufficient financial resources to meet their anticipated cash flow expenses. For particular licensees, such as responsible entities, IDPS operators, wholesale fund trustees, custodial and depository service providers and retail OTC derivative issuers, additional capital adequacy requirements apply. You will need to budget for these requirements and provide balance sheets, cash flow statements and other financial information to ASIC as part of the AFSL application process. We will help you every step of the way as you apply for your Australian Financial Services License.

Holding your own Australian financial services licence (AFSL) is an important step for any financial services business. It can provide you with independence, allow you to reach larger markets and provide your clients with a greater sense of security. But do you need an AFSL?
Chances are that if you are reading this guide, then you have already made the decision to apply for an AFSL. If you are in the business of providing financial services in Australia, then unless an exemption applies, you will need an AFSL.

There are, however, a number of circumstances where you are not required to hold an AFSL. Examples include where you are an authorised representative of a licensee, you only provide financial services to related bodies corporate or you are an off-shore regulated entity that only provides services to wholesale clients in Australia. If you are not sure whether you need an AFSL, then it is best to speak to a specialist and get some advice. Please get in touch for expert legal advice.

A fundamental question before you apply for an AFSL is whether you will be providing services to retail clients or wholesale clients —or both. Providing services to retail clients means that you must hold professional indemnity insurance, become a member of an external dispute resolution scheme and comply with additional training obligations where you are providing advice to those retail clients.

Understanding how retail and wholesale clients are defined under the law is vitally important in understanding the kind of AFSL you require. Wholesale clients are generally those that meet certain wealth thresholds or invest $500,000 or more in a financial product. Get the right legal advice before you start your AFSL application.

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