AFSL Fundamentals

What’s the difference between an SMA and an SMA mandate?

ASIC treats an SMA as a managed account structure, while an SMA mandate is the investment rule set used within...

How do compliance programs increase client retention rates?

ASIC expects AFS licensees to maintain compliance systems, and those programs increase client retention by turning regulatory obligations into reliable...

What is the key difference between “ongoing review” and an “annual review”?

ASIC doesn’t define “ongoing review” and an “annual review” as separate statutory categories. The key distinction is that ongoing review...

Does supervising a corporate authorised representative mean the licensee can rely on the company to supervise its own advisers?

No. ASIC expects an AFS licensee’s supervision obligation to apply when a corporate authorised representative or its advisers provide financial...

Why does retail or wholesale client classification matter?

Under the Corporations Act, retail or wholesale client classification determines which consumer protection obligations apply to an AFS licensee. Correct...

Can a client’s classification as retail or wholesale change over time?

Under the Corporations Act, a client’s classification as retail or wholesale can change if the facts supporting the classification change...

When is a client treated as a wholesale client under Australian financial services law?

Under the Corporations Act, a client is treated as a wholesale client only when they satisfy one or more of...

What is a retail client under Australian financial services law?

Under the Corporations Act, a retail client is a person or entity that does not satisfy the statutory tests for...

When must a managed investment scheme be registered with ASIC?

Under the Corporations Act, a managed investment scheme must be registered with ASIC when it satisfies the statutory registration requirements,...

What is a responsible entity and what role does it perform?

Under the Corporations Act, a responsible entity is the single legal entity responsible for operating a registered managed investment scheme....

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