Responsible Manager RG 105
What is an Australian Financial Services licence (AFSL)?
You must have an Australian Financial Services Licence to conduct a financial services business. AFS Licensees have a general obligation to provide efficient, honest and fair financial services. You must comply with the conditions of your AFS licence and the Corporations Act 2001.
AFSL Responsible Manager
Responsible Managers are the people that a licensee appoints to demonstrate to ASIC that it has the knowledge, skills and experience required to provide the financial services it is authorised to on its Australian Financial Services licence (AFSL).
A Responsible Manager is a key individual within a business. They can supervise operations in a few ways:
- Oversee the conduct of authorised representatives who trade financial instruments or provide advice
- Be a company director appointed as a responsible manager
- Serve purely as a responsible manager, monitoring licensing compliance and non financial risks.
Responsible Manager Training and Courses
Whether becoming a responsible manager is the next step in your career, you’re being nominated as one, or you need continuing professional development, we have a solution for every stage. Our responsible manager programs provide all you need to know about your roles and responsibilities and the industry regulations licensees must comply with – wherever you are along your RM journey.
Frequently Asked Questions
ASIC doesn’t specify how many CPD hours are required for Responsible Managers of AFS licensees.
However, the CPD must be ‘adequate’ and assist a responsible manager to:
- maintain knowledge and skills that are appropriate for their activities and responsibilities, and are consistent with any applicable training standards
- update their knowledge and skills, especially in areas where there is continual change
- develop new knowledge and skills to assist with their current role or roles contemplated in the near future.
Our AFSL Responsible Manager CPD awards 15 hours/points. This affords licensees flexibility to make up the balance of the widely accepted industry standard of 20 hours via other activities, such as industry reading, inhouse training, and industry event attendance.
RG 105 AFS licensing: Organisational competence is a guide for Australian financial services (AFS) licensees and AFS licence applicants.
This guide describes what ASIC looks for when assessing compliance with the ‘organisational competence obligation’, which is one of the general obligations under s912A(1) of the Corporations Act.
Responsible Managers are the people that a licensee appoints to demonstrate to ASIC that it has the knowledge, skills and experience required to provide the financial services it is authorised to on its Australian Financial Services licence (AFSL).
For information on relevant legislation and important information surrounding your licensing obligations please refer to ASIC’s Regulatory Index.
Are you applying for an AFS Licence? Refer to ASICs AFS Licensing Kit for your obligations.
ASIC Regulatory Guide 105 AFS Licensing: Organisational competence (RG 105), provides detailed information about the requirements of responsible managers under an AFS licence.
For information on relevant legislation and important information surrounding your licensing obligations please refer to ASIC’s Regulatory Index.
A responsible manager possesses the following attributes:
- they must be directly responsible for significant day-to-day decisions in regard to the provision of financial services
- they must meet one of the five options for demonstrating knowledge and skills appropriate to their role, and
- they must be a ‘fit and proper’ person.
Persons likely to be responsible managers within an AFS licensee include:
- executive directors employed in a small to medium business
- managers in a dealing room environment
- business unit heads.
It is important to note that each financial product and service offered by a licensee must be matched by the skills and experience of at least one responsible manager
Our CPD program is an essential annual update for responsible managers and governance, risk and compliance leaders.
- Released annual each year (January – December)
- Contains five topics in alignment with what the regulators are prioritising
- Earns 15 CPD hours/points (3 CPD points per topic).
- Topics are separately assessed so can be studied one at a time, across the year.
- Assessment is via a multiple-choice quiz for each topic.
We see Compliance Consultants as essential to good customer outcomes. Self-licensing is on the rise, ASIC is increasing scrutiny of regulated entities, and numerous legislative changes and other reforms are prompting all manner of financial services firms to seek the assistance of a Compliance Consultant.
Please visit our Compliance Consultants directory.
To get started, either:
- Purchase course/s online. (You can add multiple courses to the cart.)
Please note: Online orders may take up to 1 business day to be processed and for your team to receive their course login details.
OR
Contact us for your Corporate Solution.
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