Posted November 10, 2020
Posted By Meghann Cannon
AFSL Hot Topics: What is the most suitable corporate structure for a self-licensed firm?
Answered by Catherine Evans.
The right corporate structure for your firm will depend on your goals and vision for your firm, and whether you’re seeking flexibility or security. We
recommend you seek professional advice before choosing the right corporate structure.
We frequently see firms choose corporate structures where the AFSL is led by a separate entity. The AFSL application to ASIC is then made in the name of the separate entity. In this situation, you can apply for a new AFSL, while continuing to operate your firm under your current AFSL.
If you apply for an AFSL using your existing entity, this may create timing challenges because you can’t operate under two licenses at one time.
Another consideration is that if you get audited, the audit may only apply to the entity that holds the AFSL-which can make an audit less complex.
Kit Legal includes a legal review of the structure of your firm and advises on the optimal structure for obtaining your AFSL as part of our AFSL Application package.