Authorise representatives correctly (Authorised Representative regime)
AFSL holders must authorise representatives in writing and notify ASIC of new ARs within 15 business days.
Who must comply
AFSL holders using authorised representatives.
What triggers it
Engaging or terminating an AR; varying authorisations.
When due
Notification within 15 business days.
Evidence required
Written authorisation, AR register, ASIC FS20 / FS31 lodgement, AFCA membership confirmation.
Max penalty
Civil penalties + ASIC compliance action
Summary
Sections 916A-916F of the Corporations Act govern authorised representatives. AFSL holders must authorise ARs in writing, specify the services covered, retain a register, and lodge with ASIC within 15 business days (extended timeframes for sub-authorisations). Some authorisations require AFCA EDR membership for the AR.
Enforced by
Source legislation
Entity types
Topics
Related obligations
- CWLTHComply with AFSL general obligations (s 912A)AFSL holders must do all things necessary to ensure financial services are provided efficiently, honestly and fairly.
- CWLTHMaintain adequate PI insurance (AFSL holders, RG 126)AFSL holders providing financial services to retail clients must hold adequate professional indemnity insurance.
- CWLTHReport reportable situations to ASIC within 30 days (RG 78)AFSL/ACL holders must report reportable situations within 30 calendar days of becoming aware.
- CWLTHComply with Design and Distribution Obligations (DDO)Issuers and distributors of retail financial products must have a Target Market Determination (TMD) and distribute consistently with it.
- CWLTHBan on conflicted remuneration (FOFA)AFSL holders and representatives must not accept conflicted remuneration in connection with retail financial product advice.
- CWLTHMaintain AFCA membership (mandatory external dispute resolution)AFSL + ACL holders must be members of AFCA — sole AU EDR scheme.
Frequently asked questions
- Who must comply with Authorise representatives correctly (Authorised Representative regime)?
- AFSL holders using authorised representatives.
- What triggers Authorise representatives correctly (Authorised Representative regime)?
- Engaging or terminating an AR; varying authorisations.
- When is Authorise representatives correctly (Authorised Representative regime) due?
- Notification within 15 business days.
- What is the maximum penalty for Authorise representatives correctly (Authorised Representative regime)?
- Civil penalties + ASIC compliance action
- What evidence is required for Authorise representatives correctly (Authorised Representative regime)?
- Written authorisation, AR register, ASIC FS20 / FS31 lodgement, AFCA membership confirmation.
Source: https://asic.gov.au/for-finance-professionals/afs-licensees/notify-asic-about-changes-to-your-business/notify-asic-about-an-authorised-representative/. Rules Mate is not a law firm. Always verify against the live regulator source before acting.