In the new breach regime, what are the AFSL’s core obligations?
Your core obligations under s912A of the Corporations Act, include obligations to:
• do all things necessary to ensure that the financial services covered by your licence are provided efficiently, honestly and fairly;
- have in place adequate arrangements for the management of conflicts of interest;
- comply with the conditions of your licence;
- take reasonable steps to ensure that your representatives comply with the financial services laws;
- if you are the operator of an Australian passport fund, or a person with responsibilities in relation to an Australian passport fund, comply with the law of each host economy for the fund;
- comply with the ASIC reference checking and information sharing protocol;
- have adequate resources to provide the financial services covered by your licence and to carry out supervisory arrangements (unless you are a body regulated by APRA);
- be competent to provide the financial services;
- have trained and competent representatives;
- have a dispute resolution system for retail clients (that complies with ASIC Standards and requirements and includes AFCA membership);
- have adequate risk management systems (unless you are a body regulated by APRA);
- have compensation arrangements in accordance with s912B; and
- comply with any other obligations prescribed by Corporations Regulations, including the requirement to cooperate with AFCA.