Thursday 26 October 2006 LAWFUEL – Law News Network – The Australian Securities and Investments Commission (ASIC) has released new information in response to concerns from industry over whether authorised representatives are obliged to refer to their AFS licensee in business documents. Titled QFS 165 I am an authorised representative, do I have to refer to my AFS licensee in business documents?, the FAQ aims to clarify any uncertainty regarding current requirements. ‘Authorised representatives do generally need to identify their AFS licensee in business documentation’, said ASIC’s Executive Director of Compliance, Ms Jennifer O’Donnell.
‘This is necessary to avoid creating the impression that authorised representatives are acting as principal when they are not. This is particularly important for consumers because it is the licensee who is ultimately responsible for the financial services provided by an authorised representative.’
‘While ASIC does not prescribe how information about the AFS licensee should be communicated, the FAQ provides examples and pointers about how authorised representatives can satisfy this obligation’, Ms O’Donnell said. This FAQ is also relevant to insurance distributors who operate under [CO 05/1070]. For further information contact: Jennifer O’Donnell Executive Director, Compliance Telephone: 02 9911 2131 Mobile: 0411 549 257 Emma Forehan ASIC Media Unit Telephone: 03 9280 3354 Mobile: 0409 702 310 Page 1 of 1
