Financial Advisers
Practical guidance for advice businesses and advisers—whether you’re establishing a new licence, transitioning between licensees, acquiring an existing AFSL, or uplifting your ongoing compliance framework.
The provision of personal financial product advice to retail clients is among the most heavily
regulated activities in the Australian financial services framework. Financial advisers must either hold
their own AFSL or be appointed as an authorized representative of an existing licensee. The obligations
imposed on advice licensees are extensive, encompassing the best interests duty, safe harbor steps,
fee disclosure requirements, consent arrangements, ongoing service obligations, and the design and
distribution obligations.
AFSL Advisory supports advice businesses at every stage: from the decision to self-license, through the
application process, to the establishment of a compliance framework that satisfies both regulatory
requirements and practical operational needs.
What we help with
Support across licensing, policies, and ongoing monitoring
We work with advice businesses to define a licensing and compliance approach that fits your advice model, authorisations, and operational reality—then help you implement the controls and evidence needed to support it.
Self-Licensing vs Dealer Group Model
Financial advisers seeking to provide personal financial product advice to retail clients must either hold their own AFSL or operate as an authorised representative under an existing licensee’s AFSL — commonly referred to as a dealer group model. The decision between self-licensing and joining a dealer group involves a careful assessment of the adviser’s business model, client base, compliance capability, and commercial objectives. Self-licensing provides greater control over the compliance framework, fee structures, and business operations, but imposes the full weight of licensee obligations directly on the business. Operating under a dealer group reduces the compliance burden but introduces constraints on business practices, product approved lists, and fee arrangements. We assist advice businesses to assess both models objectively and to select the pathway that best aligns with their long-term business objectives.
Authorisation Scoping for Advice Businesses
The authorisation scope of an advice AFSL must precisely reflect the financial products in respect of which the licensee will provide advice. Common authorisation categories for advice businesses include basic deposit products, securities, interests in managed investment schemes, superannuation, life risk insurance products, and government debentures. Where advisers intend to provide advice on a broad range of products — including self-managed superannuation funds, direct equities, or complex financial products — the authorisation scope must be defined accordingly. An authorisation that is too narrow creates regulatory risk where advisers provide advice on products outside the licence scope. We define the appropriate authorisation schedule for each advice business based on the adviser’s intended service offering, client base, and product range.
Responsible Manager Requirements Specific to Personal Advice
The responsible manager competency requirements for personal advice businesses are among the most demanding under RG 105. Individuals nominated as responsible managers for personal advice authorisations must demonstrate relevant experience and qualifications specific to the advice categories covered by the licence. For advisers who have completed the professional year requirements under the Financial Adviser Standards and Ethics Authority framework, evidence of completion forms part of the responsible manager evidence package. We assess each proposed responsible manager against the RG 105 competency standards applicable to personal advice, identify gaps, and assist with the assembly of evidence that satisfies ASIC’s requirements for advice-specific authorisations.
Compliance Plan and Monitoring Program Design for Advice Businesses
An advice business compliance plan must address the specific obligations applicable to personal advice licensees, including the best interests duty under section 961B of the Corporations Act, the safe harbour steps under section 961B(2), fee disclosure and consent obligations, ongoing service arrangements, and the design and distribution obligations. The monitoring program must include mechanisms for reviewing the quality of advice provided to clients, identifying systemic issues, and escalating concerns to senior management. We design compliance plans and monitoring programs for advice businesses that are proportionate to the scale and complexity of the practice, and that provide the licensee with genuine assurance that advice quality and regulatory obligations are being met consistently.
Statement of Advice Review Processes and Quality Assurance
The Statement of Advice is the primary document through which a personal advice licensee demonstrates compliance with the best interests duty and related obligations. A robust SOA review process is essential both as a compliance control and as a risk management tool. We design SOA review frameworks that include pre-issue quality checks, periodic file sampling, thematic reviews of advice quality across specific product or strategy areas, and structured feedback mechanisms for advisers. Review outcomes are documented and reported to senior management, with findings and remediation actions tracked through to completion. Where systemic advice quality issues are identified, we assist with root cause analysis and the design of targeted remediation programs.
Professional Year Supervision Arrangements
Financial advisers who are new to the industry are required to complete a professional year under the supervision of a qualified supervisor before they can provide personal advice to retail clients independently. The professional year requirements are prescribed by FASEA and include a minimum number of hours of work and structured activities across specified competency areas. Licensees that employ new advisers are responsible for designing and implementing compliant professional year supervision arrangements, maintaining records of activities completed, and providing the required supervisor sign-off. We assist advice licensees to design professional year supervision frameworks, document supervision arrangements, and maintain the records required to demonstrate completion of the professional year requirements.
Ongoing Fee Disclosure and Consent Obligations
Licensees that charge ongoing fees to retail clients are subject to detailed fee disclosure and consent obligations under Part 7.7A of the Corporations Act. These obligations require licensees to provide annual fee disclosure statements, obtain renewed consent from clients to the ongoing fee arrangement at prescribed intervals, and maintain records of consent. Failure to comply with these obligations has been a significant area of regulatory focus for ASIC and has resulted in substantial remediation programs across the advice industry. We assist advice licensees to design fee disclosure and consent frameworks that satisfy the statutory requirements, implement systems and processes to manage the consent renewal cycle, and maintain records that demonstrate ongoing compliance.
Reference Checking and Information Sharing Requirements
Advice licensees are required to conduct reference checks on financial advisers before appointing them as authorised representatives, and to respond to reference check requests from other licensees within prescribed timeframes. These obligations are designed to prevent advisers with compliance or conduct issues from moving between licensees without appropriate scrutiny. We assist advice licensees to design reference checking frameworks that satisfy the regulatory requirements, implement processes for responding to incoming reference check requests, and maintain records of reference checks conducted and received. Where reference check responses raise concerns about a prospective adviser, we provide guidance on how to assess and document the licensee’s response to those concerns.