RG 105 Organisational Competency
The Australian Securities and Investments Commission (ASIC) requires all licensees to maintain the competence to provide the financial services they are authorised to provide under their licence. ASIC's requirements are outlined in Regulatory Guide 105.
ASIC will assess Responsible Managers to ensure that they have the knowledge and skills needed to:
- Manage their business;
- Ensure the quality of services provided is adequate; and
- Ensure that they comply with their licence obligations.
Therefore, Responsible Managers need to demonstrate:
- The experience and knowledge of the financial services and products for which their organisation will be responsible; and
- An understanding of their legal obligations under the Australian Financial Services (AFS) licence.
The overriding factor considered by ASIC is that the Responsible Managers must be competent in their role and must:
- Have the relevant knowledge about the financial services and products for which they will be responsible;
- Understand and be able to comply with the licensee's obligations under the AFS license; and
- Have the relevant experience to perform the role.
Relevant knowledge can be demonstrated in one of 5 ways (see RG 105.43).
Option 2
Experienced Responsible Managers seeking to meet Option 2 can be individually assessed by one of Financial Education Professional’s Authorised Assessors as having relevant knowledge equivalent to a diploma. Click here to see how Individual Assessment works.- Identifying the experience and expertise your Responsible Managers need to ensure the licensee meets its obligations;
- Review its Responsible Managers to determine whether they have the experience and expertise required; and
- In the event of a shortfall, recommend strategies to meet that shortfall.