As a limited AFS licensee, it is important to keep up to date with your ongoing compliance obligations and be aware of regulatory updates.

Here’s a reminder of some of your key compliance obligations and tips on how to comply.

Can you show your client will likely be in a better position if they follow your advice?

ASIC has released Report 575 SMSFs: Improving the quality of advice and members experiences, with a clear message there is a need for significant improvement in some areas.

An independent expert reviewed 250 random client files where personal advice was provided to set up a self-managed superannuation fund (SMSF) to the client. ASIC concluded that in 91 per cent of files did not comply with the Corporations Act 2001 ‘best interests’ duty and related obligations.

Two key areas of concern were advisers failing to demonstrate they:

  • adequately considered their client’s objectives, financial position and needs
  • conducted sufficient research to properly consider the client’s existing super funds.

Are you registered on the Financial Advisers Register (FAR)?

Everyone authorised under your limited AFS licence, including you, must be registered on the FAR.

Late fees may apply and failure to register is a breach.

You must be on the FAR to be recognised as an existing adviser under the new professional standards reforms – if not from 1 January you will no longer be able to provide advice under your licence and will have to complete new entry requirements. 


Limited AFS licence and tax (financial) advice registration

If you advise your clients about the tax consequences of the financial advice you provide, you are providing a tax (financial) advice service.

Even if you are a registered tax agent, your limited AFS licence must also be registered with the Tax Practitioners Board (TPB) for tax (financial) advice.