Being a Responsible Manager

FAQs

What is a 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).

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.

Who can be a responsible manager?

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.

Who can I talk to further about my AFSL compliance requirements?

Please visit our Compliance Consultants directory.

Do responsible managers need ongoing training (CPD)?

Yes.

  • ASIC requires licensees to maintain and update the knowledge and skills of their Responsible Managers (RG 105.7).
  • APRA’s Prudential Standard CPS 520 Fit and Proper (SPS Fit and Proper for superannuation), requires “persons who are responsible for the management and oversight of an APRA-regulated institution, and persons employed by a member of the group whose activities may materially affect the business or financial standing of the group, to have appropriate skills, experience and knowledge, and act with honesty and integrity”.

What is FEP’s Responsible Managers CPD program?

Our 2021 program:

  • Contains five topics.
  • 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; pass mark for each topic is 6/8 (75%).
  • Once enrolled, participants have until 31 December 2021 to complete.

Will I become Fit and Proper under APRA if I complete FEP’s CPD for Responsible Managers?

No.

  • Our CPD for Responsible Managers annual update will not help you to become ‘Fit and Proper’.  Each institution regulated by APRA must have its  own Fit and Proper policy which meets the requirements of the Prudential Standard. The standard states,  ‘Persons who are responsible for the management and oversight of an APRA institution…. need to have appropriate skills, experience and knowledge, and act with honesty and integrity.

Our program provides CPD for Responsible Persons and Senior Managers to keep up to date with changing APRA regulations and contributes to the ‘appropriate knowledge’ section of the Standard.

How many CPD points/hours can I use toward APRA’s CPS 520?

Each institution regulated by APRA must have its  own Fit and Proper policy which meets the requirements of the Prudential Standard. Your organisation can review the  course outline and make a determination as to how much of the course is relevant to your unique policy. Please contact us for a course outline.

As a Registered Training Organisation (RTO Code 90725) we have allocated 3 CPD points per topic.

If you have questions about financial services regulation and what training is needed to satisfy requirements, information can be found in