To leave your current licensee, you must formally resign, comply with your contractual notice period, and transition your authorisation to a new AFSL or your own licence. You also need to manage client communication, update ASIC’s Financial Advisers Register, and ensure there is no gap in your authorisation to provide financial advice.licence, and ensure there is no gap in your ability to provide advice.
Key steps include
– Review your authorised representative agreement
– Provide formal resignation and align timing
– Secure new AFSL or authorisation
– Update ASIC’s Financial Advisers Register
– Manage client communication and file transfer
Expanded Answer
Leaving a licensee is both a contractual and regulatory process. It requires careful coordination to ensure you remain authorised at all times and continue to meet your obligations to clients.
Start by reviewing your authorised representative agreement to understand notice periods, restraint clauses, and any conditions relating to client ownership or access to client files.
You will need to submit a formal resignation and agree on an end date. At the same time, your new licensing arrangement must be approved so you do not provide advice while unauthorised. ASIC’s Financial Advisers Register must be updated to reflect the change in authorisation.
If you are transitioning to your own licence, you must have your AFSL approved before you begin operating independently.
Client transition is a critical part of the process. You need to plan how and when clients will be notified, what consents are required, and how records will be transferred in line with privacy and compliance obligations.
You should also consider your obligations in relation to ongoing advice services, fee arrangements, and any outstanding compliance matters before you exit.
In practice, the highest risk period is the transition itself, particularly where there is misalignment between your resignation date and new authorisation, or uncertainty around client ownership and file access.
Disputes around client ownership and access to records are one of the most common friction points when advisers leave a licensee.
Why it matters
Poorly managed exits can lead to breaches, client disputes, or gaps in authorisation. This creates regulatory risk with ASIC and can impact your reputation, client relationships, and revenue continuity during the transition.
Practical guidance
– Review your agreement for notice periods, restraints, and client ownership terms
– Align your resignation timing with your new AFSL or licence authorisation approval
– Plan and document your client communication and file transfer process