Who must comply with AFSL general obligations (s 912A)?

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

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.

Applies when the business has an AFSL. Where the business has financial products no afsl, check whether you provide financial services (you then need an AFSL or authorised-representative status).

How the regulator frames it: All AFSL holders.

What triggers it: Holding an AFSL.

Jurisdiction: Commonwealth law, so the test is the same in every state and territory.

Outcome across the 35 industries Rules Mate maps (35 of 35: no).

The answer is the same in every industry: no. Industry does not change who must comply.

Structure does not change the answer across all industries: for every structure the answer is "no".

Size does not change the answer across all industries: at every size band the answer is "no".

Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:

• Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: does not apply. Requires an AFSL.

Starting from a small or large professional services company that does not otherwise meet the test, each of these single facts changes the engine's answer:

• The business holds an Australian financial services licence (AFSL): it then applies (AFSL holder).
• The business issues financial products or gives financial product advice: it becomes worth checking, because it applies only if you provide financial services (you then need an AFSL or authorised-representative status).

The engine shows this obligation as "check whether this applies" when a business has financial products no afsl. It then applies only if you provide financial services (you then need an AFSL or authorised-representative status). That fact is not something Rules Mate can infer from industry, structure or size.

When due

Continuous.

Frequency

Ongoing

Evidence to keep

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

Status

Current

Priority

Critical

Maximum penalty: Civil penalties up to $18.2M / 3× benefit / 10% turnover (corporations)

External audit. Authority: Corporations Act 2001 s989B; ASIC Form FS71.

Frequency: Every financial year (FS70 accounts and FS71 auditor's report): within 3 months for a disclosing body corporate, 4 months for another body corporate, 2 months for a licensee that is not a body corporate.

Who can perform it: FS71 is signed by the individual auditor, an ASIC registered company auditor of the firm, or a director of an authorised audit company. It covers the financial statements and compliance opinions (for example client money and financial requirements). No small-licensee exemption.

• ASIC v Mercer Superannuation (greenwashing) (2024): ESG marketing claims must be substantiated and operationalised in the portfolio. ASIC and ACCC are coordinated on greenwashing enforcement.
• ASIC v Block Earner (unlicensed crypto financial product) (2024): Crypto products marketed as savings/yield = financial product. AFSL required.
• ASIC v RI Advice (cyber security) (2022): Cyber security capability is part of the s 912A 'efficiently, honestly, fairly' duty for all AFSL holders. Cannot be outsourced without oversight.

If this obligation applies to you, so do these 7: the engine uses the same rule for each.

• Maintain adequate PI insurance (AFSL holders, RG 126)
• Authorise representatives correctly (Authorised Representative regime)
• Maintain Financial Adviser registration + standards (s 921B)
• Ban on conflicted remuneration (FOFA)
• AFSL representative training (RG 146)
• Provide FSG + Statement of Advice to retail clients
• Best interests duty for financial advisers (s 961B-G)

• Comply 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.
• Design and Distribution Obligations (DDO) — RG 274: Issuers + distributors of retail financial products bound by DDO from 5 October 2021.
• Hold AFSL with derivative authorisations (margin lending + CFD + binary): Issuers of OTC derivatives to retail clients face product intervention orders + tightened conditions.
• Lodge a prospectus for offers requiring disclosure: Offers of securities to retail investors require a prospectus or OIS lodged with ASIC.
• Register a Managed Investment Scheme under Ch 5C: Schemes with 20+ retail members must be registered with ASIC as MIS.

Rules Mate tracks 17 published obligations tagged "financial services", 12 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 0 of those apply outright. This obligation is rated critical priority, and is an ongoing duty.

Regulated by Australian Securities and Investments Commission.

ASIC: Corporate regulator administering the Corporations Act, financial services and credit licensing (AFSL/ACL), markets supervision, insolvency, and registries (ASIC and ABRS).

• Australian Securities and Investments Commission

Corporations Act: The foundational federal Act for Australian corporate law.

• Corporations Act 2001

Free tools that help with this obligation:

• CPS 230 readiness scorer
• CPS 234 readiness scorer
• Reportable situations timer