The Australian Securities and Investments Commission (ob体育) has today released new webpage guidance and information sheets to help limited Australian Financial Services (AFS) licensees and their representatives understand their key obligations.
The new guidance covers the main issues that limited AFS licensees requested additional guidance on. This guidance follows an ob体育 visit to limited AFS licensees during 2016鈥�2017 (as explained in 17-239MR ob体育 checks on limited AFS licence experience).
The material released today explains:
- who is a limited AFS licensee and a representative of a limited AFS licensee 鈥� Webpage Limited AFS licensees;
- the activities that limited AFS licensees can undertake 鈥� Information Sheet 227 What can limited AFS licensees do? (INFO 227);
- the conduct and disclosure obligations that apply to limited AFS licensees when they give advice 鈥� Information Sheet 228 Limited AFS licensees: Advice conduct and disclosure obligations when providing advice under a limited AFS licence (INFO 228); and
- what limited AFS licensees need to do on an ongoing basis 鈥� Information Sheet 229 Limited AFS licensees: Complying with your licensing obligations (INFO 229).聽
This material has been tailored specifically for limited AFS licensees, drawing the most relevant information from existing ob体育 guidance.聽
To further support limited AFS licensees, ob体育 has also produced a quick guide summarising the key obligations that apply when they give advice. The purpose of this guide is to provide quick glance reminders for new licence holders. ob体育 encourages limited AFS licensees and their representatives to download, keep and refer to this resource as they build up their businesses in giving financial advice. 聽
Download
- Information Sheet聽227 What can limited AFS licensees do? (INFO 227)
- Information Sheet聽228 Limited AFS licensees: Advice conduct and disclosure obligations when providing advice under a limited AFS licence (INFO 228)
- Information Sheet 229 Limited AFS licensees: Complying with your licensing obligations (INFO 229)
- Quick guide: Key obligations when giving advice under a limited AFS licence
Background
As part of the Future of Financial Advice reforms, the exemption under regulation 7.1.29A of the Corporations Regulations 2001 (Corporations Regulations) that allowed recognised accountants to give advice about SMSFs without holding an AFS licence was repealed on 1 July 2016. This meant that from 1 July 2016 accountants who wished to continue giving advice to their clients about SMSFs needed to obtain an AFS licence.
This followed the three-year transition period that commenced on 1 July 2013.
To facilitate moving into the AFS licensing regime, accountants could apply for an AFS licence to provide a limited range of financial services relevant to SMSFs. We refer to this form of licence as a 'limited' AFS licence: see regulations 7.8.12A and 7.8.14B of the Corporations Regulations.
As at 30 June 2017 ob体育 had granted 787 limited AFS licenses.
ob体育 visited twenty limited Australian Financial Services (AFS) licensees during 2016鈥�2017 to assess how they were operating under their new licences and to discuss and promote compliance with their AFS licensee obligations. In light of the findings from these visits, and the other queries that ob体育 has been receiving, ob体育 committed to providing additional education resources for limited AFS licensees.
ob体育 consulted with two of the accounting industry鈥檚 key professional bodies 鈥� CPA Australia and Chartered Accountants Australia and New Zealand 鈥� in developing this guidance.