Posted April 17, 2020

Posted By Meghann Cannon

Self Licensing Fairy Tales

Published 8 April, 2019

Prepared by the big bad wolf, Peter.

Self Licensing Myth #1

“Self-licensees need to have file reviews undertaken by ASIC.”

This is just not correct. As an AFSL holder, you’re in control of your own destiny – and compliance. You need to supervise your representatives as a condition of holding your AFSL, and for this purpose, we recommend you regularly review your advisers’ files to ensure they are compliant and accord with your internal standards. However ASIC doesn’t play any part in these reviews.

Self Licensing Myth #2

“Self-licensees can’t get PI insurance”

Again, complete myth. Sure PI insurers have increased premiums since the RC, but they are still offering cover to new licensees. The better question is not whether you will get cover, but rather whether the cover you get is appropriate and in accordance with ASIC’s regulatory requirements. We’re seeing more and more policies in the market that do not meet ASIC’s requirements.

Self Licensing Myth #3

“Self-licensees need to comply with licensee standards even if they are self-licensed. The (onerous) licensee standards are what is required by law.” 

A licensee standard sets out the policies and procedures that the licensee has implemented to ensure it complies with the law. Licensees can determine how they comply with the law. It’s a scalable obligation meaning that the length and complexity of the standard should align with the type of business run by the licensee. A simple business can have a simple standard. Remember bigger licensees and dealer groups need more complicated standard to deal with the complexity of their business and the fact that they are often supervising many ARs. Licensees with simple business models don’t need to (and shouldn’t) adopt standards adopted by bigger licensees.

Self Licensing Myth #4

“ASIC is targeting new licensees”

Simply not true. ASIC has not made any comment that this is the face. We call BS on this one.


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