ASIC issues regulatory guides for Australian financial services (AFS) licensees

ASIC has released two regulatory guides about the general obligations of Australian financial services (AFS) licensees under s912A of the Corporations Act .

Regulatory Guide 104 Licensing: Meeting the general obligations [RG 104] and Regulatory Guide 105 Licensing: Organisational competence [RG 105] aim to:

• communicate ASIC’s policy on the general obligations of licensees and organisational competence using simpler language;
• clarify some aspects of the policy in light of ASIC’s regulatory experience; and
• consolidate and harmonise ASIC’s policy on these obligations. RG 164 and RG 130 are now superseded.

RG 104 outlines what ASIC looks for when it assesses compliance with the general obligations. It sets out ASIC’s general approach to the licensee obligations under s912A(1) and ASIC’s policy on particular s912A(1) obligations relating to compliance, risk management, representatives and resources.

RG 105 outlines what ASIC looks for when considering the organisational competence obligation of AFS licensees under s912A(1)(e). It also consolidates ASIC’s guidance on this obligation, which was previously spread across a number of publications, including Section E of RG 164, parts of [RG 130] and Responsible officers: Demonstrating compliance with organisational competency obligations—An ASIC guide (issued July 2003, withdrawn June 2007).