Comply with AFSL general obligations (s 912A)

AFSL holders must do all things necessary to ensure financial services are provided efficiently, honestly and fairly.

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Who must comply

All AFSL holders.

What triggers it

Holding an AFSL.

When due

Continuous.

Evidence required

Compliance plan, RG 104 register, breach reports, training records, AFCA membership.

Max penalty

Civil penalties up to $15.65M / 3× benefit / 10% turnover (corporations)

Summary

Section 912A of the Corporations Act imposes ten general obligations on AFS licensees including: efficient/honest/fair provision of services; managing conflicts; complying with conditions; adequate resources; competence; training; risk management; dispute resolution; and (since 2021) the design and distribution obligations under Part 7.8A.

Enforced by

Source legislation

Entity types

afsl holder

Topics

financial-servicesafslgeneral-obligations

Source: https://asic.gov.au/regulatory-resources/financial-services/giving-financial-product-advice/. Rules Mate is not a law firm. Always verify against the live regulator source before acting.