Australia AFS license Compliance Service

Compliance officer for Australia AFS license 

• The Australia AFSL compliance services are important for financial service providers who want to be able to legally and efficiently do business in Australia. In short, this compliance service ensures that financial services provide adhere to the rigorous requirements of the Australian Securities & Investments Commission (ASIC) under the Corporations Act 2001. There is a complicated and lengthy process in applying for and maintaining an Australian Financial Services (AFS) License, and you really need someone with experience to help you through the process from the application stage all the way until managing compliance on an ongoing basis.  

• Many businesses who want to plant their flag need to initially register company in Australia as a starting point. This will allow you to meet your legal obligations in association with Australian tax collection and other legal requirements for running your business in Australia. In this situation, Tetra Consultants offers a full-service solution for international clients by providing assistance to register company, plus complete Australia AFSL compliance service. Part of the latter would involve appointing an afsl compliance officer, who would be in charge of the compliance framework, regulatory compliance, and risk management.  

• With Tetra Consultants’ experienced team you will be able to benefit from an all in one, end to end service solution that takes the complexity out of compliance obligations, and helps you enter the market sooner, making Tetra Consultants a trusted partner for financial businesses in Australia’s continually changing environment. 

Benefits of Australia AFSL compliance service 

Ensures regulatory compliance:  

• The Australia AFS license compliance services aids with compliance with the regulatory framework that the client’s business needs to adhere to which is decided by the Australian Securities and Investments Commission (ASIC) and the Corporations Act 2001. Compliance also involves ensuring compliance with conduct, disclosure, reporting and financial information, and risk management obligations. Compliance with legislative obligations will greatly decrease potential penalties, suspension or revocation of the license by ASIC. There is no value in maintaining a valid AFS license if there are no ongoing obligations to be met. Companies need to comply with their obligations, in order to operate legally and sustainably in Australia’s financial market.  

Enhances your business credibility:  

• If your business has a valid Australia AFSL compliance services, it shows your customer base that information or practices will be upheld by honesty, Efficiency, and fairness in the delivery of financial services and products. More and more customers prefer dealing with licensed businesses rather than non-licensed businesses primarily due to the colour of professionalism and reliability the license represents, as regulated by ASIC. Being a valid league with ASIC also represents safety and trustworthiness to investors.  

Reduces compliance costs and burdens:  

• Compliance is not a cheap or easy process to both understand and put in place when dealing with ASIC compliance obligations as they are complicated, expensive, and time-consuming. Getting such assistance from a compliance company means that your business obligations can possibly be met more efficiently and cost-effectively and without the risk of costing you compliance mistakes or compliance period time delays. This frees a company to focus on prioritizing the running of its business, within budgeted allocated resources, while ensuring compliance with license conditions and regulatory changes. 

Facilitates market entry and expansion:  

• An AFS license is required to legally provide a broad variety of financial products and services in Australia, and compliance services allow businesses to comply and continue to keep their AFS license in good standing so the business can enter a new market segment and broaden their offerings without interruption from the regulations. This creates a legal framework for future sustainable growth while keeping a competitive edge in the financial sector.  

Supports risk management and promotes consumer protection:  

• Compliance program functions include staff training, internal controls, consumer dispute resolution processes, etc. These risks will decrease operational risk and protect the interests of consumers and align the business with ASIC’s objectives to maintain the integrity of the market. If risk management steps are taken, even more breaches from occurring will be reduced, while developing the value of the business by demonstrating responsible business conduct. 

Provides compliance oversight that is relevant to the needs:  

• When appointing an afsl compliance officer with compliance services there is a dedicated expert to oversee regulation for compliance, and there is guidance if a business needs to amend its operations for regulatory compliance – such oversight is owned by the business to keep it license valid and create a willingness for responsibility within the business. 

Services offered by Australia AFSL compliance officer 

Establishing and monitoring compliance systems:  

• The compliance officer makes sure that the licensee’s Compliance frame is able to meet all obligations set out under the Corporations Act 2001 and the operational regulatory requirements of ASIC. This includes providing documentation on policies and processes and controls that demonstrate ongoing compliance with license conditions. 

Building a compliance culture:  

• The compliance officer does more than put a framework in place to comply with the conditions. They encourage integrity, ethics, and trust to create a workplace culture of compliance. The compliance officer’s cultural leadership can assist and support the licensee’s directors to create a workplace that values compliance in everyday business practice. 

Identifying and managing risks:  

• The compliance officer continually monitors workplace activity to continuously identify compliance risks to the licensee, evaluate if systems and controls are appropriate, and proactively implement steps to manage regulatory risks. 

Training and communication:  

• The compliance officer provides training and communication obligations to authorized representatives and staff to ensure that they understand their obligations from a compliance perspective on a regular basis. 

Incident management and breach reporting:  

• The compliance officer reactively manages compliance incidents, including timely investigations, reporting to ASIC where required, and ensuring that impacted customers are notified and compensated when required.  

Supervision and monitoring of representatives:  

• The compliance officer oversees the acts of the authorized representatives to ensure compliance with internal policies and regulations while ensuring substantial monitoring and supervision controls are in place.  

Supporting senior management and directors:  

• The compliance officer supports senior management as their key compliance adviser, educating them on their compliance duties, and setting the tone for compliance in their organization.  

Ensuring adequate resources:  

• The compliance officer assists to ensure that the licensee provides sufficient human, technology, and financial resources for the licensee to comply with applicable laws and regulations. 

Regulator of Australia AFS license 

• The Australian Securities and Investments Commission (ASIC) is the government body that regulates the Australian Financial Services (AFS) license. ASIC is the body that receives applications for the Australia AFS license compliance service, considers them, issues the license, and polices the regulation of the AFS license holders. The AFS license allows businesses to give financial product advice, deal with financial products, operate registered schemes, provide custodial services, and more. ASIC’s role grapples with much more than this, having a broader remit to ensure that licensees are fit and proper, have enough financial resources, and can meet ongoing obligations in compliance, training, and dispute resolution.  

• The regulation is contained under the Corporations Act 2001 and particularly Chapter 7 which contains the legislation for obtaining and holding an Australia AFS license. The licensee’s obligations extend to only providing financial services efficiently, honestly, and fairly. If there are any breaches, the consequences for the license could range from penalties to cancellation of the license. In addition to those obligations, ASIC issues regulatory guides and imposes reporting and conduct obligations on licensees under the Corporations Act 2001, to make sure that the Australian financial services industry is characterized by integrity. 

Who need to have Australia AFS license compliance officer? 

• All AFS licensees with a financial services business in Australia.  

• Businesses that give financial product advice or deal in financial products under the authority of an AFS license.  

• Licensees with registered managed investment schemes or that provide custodial or depository services.  

• Entities with superannuation trustee services, claims handling services, or corporate collective investment vehicle (CCIV) services.  

• Licensees are required to have a strong compliance capability to comply with the ASIC regulatory and statutory obligations found in the Corporations Act 2001.  

• Business provides financial services that comply with license conditions, including risk management, breach reporting, compliance monitoring, compliance and internal audit oversight.  

• Companies that are required to supervise authorized representatives and responsible managers.  

• Companies wanting to provide and cultivate a culture of compliance, ethics, and regulatory accountability within their organization.  

• Entities that want to provide evidence to ASIC that they are resourcing compliance oversight and regulatory relationships. 

Eligibility for Australia AFS license compliance services 

• Must be appointed by a legally Australian entity followed by being hold, or apply for, an AFS license. 

• Proven capability with relevant qualifications (minimum diploma) related to the financial service company is providing. 

• Relevant industry experience and ability to properly manage compliance obligations. 

• Must be fit and proper person per ASIC, which includes: 
  • Good name and character (no criminal convictions, bans or disqualifications) 
  • No history of regulatory breaches or financial misconduct 
  • Current national criminal history, personal history and bankruptcy checks (less than 12 months old) 

• Ability to ensure safekeeping, oversight and management of compliance and risk management systems required by the Corporations Act 2001. 

• Demonstrable knowledge and ability to meet all AFS license conditions and ASIC regulatory guides (e.g. RG 104, RG 166). 

• Ability to oversee representatives of the entity to ensure compliance with financial services laws. 

• Demonstration of understanding of conflict of interest, breach reporting and dispute resolution obligations. 

• When fulfilling this compliance role, one must have sufficient financial, technological, and human resources to meet compliance functions. 

• Ability to provide ASIC with all requested proof documentation during the license application and ongoing compliance. 

Australia AFS License compliance officer assistance 

• Tetra Consultants provides comprehensive outsourced compliance officer services for new and existing AFS license holders in Australia, with experienced personnel familiar with the Corporations Act 2001, the ASIC Regulatory Guidelines (RGs) and ongoing compliance obligations. Each compliance officer we appoint will have earned credentials, such as Certified Compliance Professional (CCP), and several are also Certified Anti-Money Laundering Specialists (CAMS). With 5+ years of practical experience in the financial services industry, our officers will implement compliant oversight and risk management to oversee your firm’s operations.  

• Letting us manage your AFS compliance function means you can have confidence in: 
  • Ongoing maintenance and monitoring of compliance frameworks. 
  • Timely preparation and lodgment of compliance related reports to ASIC. 
  • Oversight of your risk management framework specific to your financial services authorizations. 
  • Implementation and reporting of your AML/CTF programs according to AUSTRAC expectations. 
  • Training and support for Responsible Managers and key personnel. 
  • We strive to keep your business compliant, audit ready and efficient while establishing trust with regulators and your customers. 

Services offered by Tetra Consultants Australia AFS license compliance officer 

• Ensure all services provided are permitted under the AFS license. 

• Ensure ongoing compliance with all conditions attached to the AFS license. 

• Establish and implement systems to manage conflicts of interest.  

• Ensure compliance with ASIC’s financial requirements, including solvency and net assets in RG 166. 

• Design and implement a Compliance Management System (CMS) and maintain it. 

• Write, review and update compliance policies, procedures, manuals, and internal controls. 

• Integrate all regulatory obligations into the organization’s running. 

• Conduct regular compliance monitoring and internal audits to identify instances of non-compliance.  

• Identify and investigate examples of non-compliance or operational incidents. 

• Maintain a breach register and assess all breaches for materiality. 

• Report substantial breaches to ASIC, in accordance with section 912D of the Corporations Act. 

• Conduct training sessions on compliance with staff and representatives. 

• Ensure all staff fulfil ASIC’s training requirements and their Continuing Professional Development (CPD). 

• Engage with senior leadership to maintain a robust risk management framework. 

• Identify, assess, and manage regulatory, operational, and reputational risks throughout the business. 

• Monitor internal controls to ensure their effectiveness and that they adequately mitigate the identified risks. 

• Maintain records in accordance with the Corporations Act and ASIC Regulatory Guides RG 104 and RG 166. 

• Follow internal policies for recording documentation such as client file notes, adviser logs, and disclosure records. 

• Act as the primary communication contact with ASIC on all compliance questions. 

• Liaise with ASIC for all requests including surveillance reviews, investigations, or formal inquiries. 

• Prepare and submit regulatory filings as required such as breach reports, financials, and applications for variations to your license. 

• Ensure all relevant AFS licenses are filed in the timeframes prescribed in relevant documentation, such as changes to Responsible Managers, services being offered, or the address. 

• Manage and submit annual compliance certifications as required. 

Steps for appointment of Australia AFS compliance officer