Making Compliance Easy Have you outgrown your Dealer Group? Is it time for your own licence?
Making Compliance Easy
Have you outgrown your Dealer Group?
Is it time for your own licence?

What work is involved?

Holding your own licence does provide some significant benefits but it does also bring additional obligations. So what work is involved?

Advice Obligations

Providing advice will continue to be where you spend most of your time. The legal obligations remain the same whether you work within a dealer group or hold your own licence. You would also expect to follow the same advice process:

  • Understand the needs, objectives and circumstances of your client
  • Apply your skills and experience to determine your advice
  • Communicate your advice to your client
  • Provide your client with an advice document (SoA or RoA)
  • Undertake regular reviews to keep your client on track

Holding your own licence does however provide the opportunity to improve your advice processes and documents. For example, you can work on establishing a better risk profiling process, you can restructure and reduce the length of your advice documents or you can move to a verbal RoA process.

Licence Obligations

There are two primary challenges for practices holding their own licence:

  • Being aware of the licensee obligations
  • Designing compliance arrangement to efficiently and effectively meet those obligations

AFSL Compliance is able to guide you through both challenges and design a compliance program tailored to your practice. As part of our licence application service, we will provide you with a Responsible Manager training session and a licensee compliance manual which sets out your compliance program.

Many practices will find the licensee obligations formalise many of the functions that they already perform:

  • Professional development for you and your staff
  • Researching products to ensure you understand what you recommend
  • Monitoring and supervising your staff
  • Preparing cash flow forecasts and managing financial resources
  • Managing the risks of your business
  • Hold PI Insurance
  • Handle any complaints
  • Manage any failings (breaches) in your advice process or business
  • Manage conflicts of interest
  • Manage service providers on which you rely
  • Ensuring the practice has adequate resources (people and IT)

Where there is likely to be additional work is in the preparation of documentation to demonstrate the obligations have been met, this should not however be overly burdensome and we will assist to make it easy and straightforward.