AFS License Compliance Requirements: Ongoing Obligations & ASIC Regulations in 2026 

• AFS License Compliance Requirements provide the basis for any company licensed by Australian Financial Services (AFS). These ongoing requirements ensure compliance with ASIC rules, client protection, and maintenance of market integrity in all authorized activities. 

• To be compliant with AFS License Compliance Requirements, businesses should have appropriate compliance programs, risk management strategies, and internal controls. Tetra Consultants’ licensing experts help firms navigate through different levels of regulation and interpret the guidance provided by ASIC. 

• Legal and licensing experts at Tetra Consultants can also advise you on periodic review of your license to make sure it is still fit for purposes with changing legislation and business environment. For those who already hold an Australia AFS license, ongoing compliance issues like reporting, capital, and complaints management are equally important. 

• The services of Tetra Consultants accounting and taxation experts will also help you manage the reporting on financial resources, while our accounting and taxation experts ensure complete compliance with taxation and record keeping requirements. 

Ongoing obligations for complying with AFS license compliance requirements in 2026 

Compliance plan and internal controls 

• The AFS licensees have to have a compliance plan that shows how they comply with their duties according to section 912A of the Corporations Act. This covers all aspects such as internal controls, employee education, record keeping, and monitoring procedures.  

• At Tetra Consultants, our licensing experts will review and update your compliance plan annually to ensure that it is in line with the ASIC guidelines and changes in your business model. Our licensing and legal experts will also carry out gap analyses for you based on ASIC guidelines. 

Risk management and monitoring system 

• Licensees are required to establish and maintain effective risk management and compliance systems continuously for operational, conduct, and financial risks at all times. It includes the identification of risks, the setting of acceptable risk tolerances, and the establishment of controls.  

• Tetra Consultants licensing experts assist in developing your risk management framework based on the services offered, which includes market, liquidity, and technology risks. We also assist in conducting risk assessments and stress tests from time to time in order to keep your systems robust and ASIC-defensible throughout the year. 

Fit and proper person management 

• AFS licensees have to continually make sure that their ‘managers’ and other employees stay fit and proper in terms of their criminal record, any previous discipline, and professional behavior.  

• Tetra Consultants licensing experts will put together the process for reviewing the ‘fit and proper’ status of these individuals on a periodic basis and keep a centralized record of personnel. The legal and licensing experts will also assist in dealing with any change in key positions or disciplinary matters. 

Financial resources and capital adequacy 

• Licensees require sufficient financial resources to satisfy the solvency and capital adequacy criteria of ASIC, which include the need for positive net asset positions and cash flow projections.  

• The accounting and tax specialists at Tetra Consultants design and maintain financial resource models, projections on the balance sheet, and stress test scenarios that align with ASIC’s RG 166. We also ensure the timely lodgment of financial statements by coordinating with auditors while maintaining your capital structure requirements as your business grows. 

Professional indemnity insurance and dispute resolution 

• AFS licensees should obtain appropriate PI insurance and be members of an external dispute resolution body, such as AFCA. The licensing team at Tetra Consultants assist you in selecting the right kind of PI insurance based on the type of services you offer, level of risks, and volume of clients.  

• We also provide assistance regarding your complaint handling procedures to establish escalation paths from the initial complaint stage through referral to the external scheme. 

Authorizations, structure, and key personnel changes 

• A variation might be needed if there are any material changes that impact the licensing conditions (e.g., introduction of new services and products or change of controlling officers).  

• Tetra Consultants licensing experts evaluate whether a variation might be required by checking whether the material changes meet the variation criteria set by ASIC and then drafting a variation document if required. Our licensing and legal experts can also do a review of your proposed changes before a notification is made in order to ensure the conditions will be realistic and enforceable. 

Training and educating of staff 

• Under their license obligations, licensees have to make sure their staff receive proper training in relation to compliance and risk management requirements, as well as client-advising obligations.  

• Tetra Consultants licensing experts assist in developing training programs based on different roles within the organization and covering topics such as ASIC requirements, product disclosure documents, and advising file standards. 

Record keeping and audit preparation 

• Licensees under AFS regulations need to keep proper and systematic record-keeping for a certain period, which includes advice sheets, customer communication, and internal approvals.  

• Licensing experts from Tetra Consultants can assist you in setting up an efficient and easy-to-use electronic and manual system of record keeping helping you easily search, backup, and produce records in case of ASIC audits. 

ASIC regulations for AFS license compliance in 2026 

• Always keep positive net assets and maintain solvency in accordance with the ASIC’s financial resources standard. 

• Comply with the ASIC’s cash needs and ASLF standard according to Regulatory Guide 166. 

• Submit audited financial statements and other ASIC reports before the due date in every financial year. 

• Have sufficient professional insurance coverage based on your services. 

• Become a member of AFCA and satisfy dispute resolution requirements. 

• Ensure all “managers” and staff members are fit and proper by submitting updated declarations. 

• Develop a written compliance plan which includes risk management, internal control systems, and monitoring processes. 

• Protect your clients’ money and property through effective trust accounting practices. 

• Promptly inform ASIC about any changes in your business activity and obtain license variations if necessary. 

• Keep comprehensive records for the specified period of time. 

Conclusion 

• AFS License Compliant Requirements in 2026 are quite rigorous and require a systematic approach in order to satisfy ASIC regulations, as well as maintain your AFS license in Australia. In partnership with Tetra Consultants, you will be supported through a full end-to-end compliance process in relation to compliance planning, risk management, financial resource modeling, and ASIC reporting processes.  

• You will be able to rely on the expertise of our legal and licensing consultants in maintaining fit-and-proper person standards, updating policies, nominee director and shareholder services, assistance with a corporate bank account opening and preparing for potential audits, whereas our Tetra Consultants accounting and taxation experts will provide support for all matters relating to financial statement reporting, capital adequacy, and tax compliance.  

• Additionally, we can help in managing client money, professional indemnity insurance, dispute resolution, and record keeping. 

• Contact us and we will respond within 24 hours.