A Responsible Manager is not automatically personally liable for every compliance failure simply because they are nominated as a Responsible Manager.
The licence obligations sit with the AFS licensee, and ASIC’s focus in RG105 is on whether the licensee has the organisational competence needed to provide the authorised services. That said, a Responsible Manager can still face personal exposure in some circumstances, especially if they are also a director, officer, relevant provider, or are personally involved in misconduct, misleading conduct, or other contraventions.
The practical point is that nominating someone as a Responsible Manager does not shift the licensee’s obligations away from the business. But the role is not risk-free either. If you are proposing to act as a Responsible Manager, you should understand both the scope of the role and any other positions you hold that may carry separate legal responsibilities.