Funds Management

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

• 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.