Journal

AFSL Hot Topics: Is there personal liability attached to being an RM?

Prepared by Catherine Evans.

Normally, in a small business, the RM is also a principal or director the firm, therefore the same liability applies. If you’re not a director of the firm, there is no personal liability associated with the role of RM. With that in mind, as an RM you can be banned by ASIC from operating as an adviser or as an RM if you’re knowingly involved in contraventions of the licence – however the same applies to advisers who are not RMS.