AFSL licensing and regulation
Whether you need a licence is decided by what you actually do, not by what you call it.You are providing financial advice, dealing in financial products, or building a business that will. Whether that requires an Australian Financial Services Licence is decided by the activity itself, not by how the business describes it. Operating without a licence you needed is a criminal offence, and operating outside the authorisations you hold exposes you and your responsible managers personally. We tell you which category you are in, get the licence or the variation, and build the compliance arrangements that keep it.
An answer, not a maybe
You get a definitive view on which authorisations your activities need before you take a client.
An application that lands
All five areas the regulator examines are answered properly, so it is not sent back for more information.
Compliance you can run
The arrangements fit how your business actually operates, rather than sitting in a manual nobody opens.
What is an AFSL and when do you need one?
An Australian Financial Services Licence is issued by ASIC and authorises a business to provide financial services in Australia. The activities that trigger it are defined rather than obvious. They are giving financial product advice, dealing in a financial product, making a market, operating a registered scheme, and providing custodial or depository services.
Not every business touching financial services needs its own licence. Some operate as an authorised representative under someone else’s, and a few narrow exemptions apply to particular professions. Which of those applies to you turns on the specific activities you carry on. That is why the question is answered by describing what you do rather than what you sell.
Does my business need an AFSL?
It depends on the activity, not the label. The Corporations Act requires a licence to provide a financial service in Australia. The common triggers are giving financial product advice, arranging deals in financial products, and operating an investment scheme. A few exemptions exist but they are narrow. We advise on which category your activities fall into.
How long does an AFSL take?
A straightforward application generally runs three to six months. Novel products or business models take longer, sometimes considerably. Most of the delay in practice comes from applications lodged with gaps the regulator then has to ask about. Time spent preparing properly is time saved.
What are my obligations once I hold a licence?
You have to maintain the compliance arrangements and organisational competence your licence conditions describe. You also have to keep adequate financial resources, hold professional indemnity insurance, belong to a dispute resolution scheme, and report significant breaches. The obligations are ongoing rather than a one-off at grant.
What happens if I operate without one?
Operating a financial services business without a required licence is a criminal offence under the Corporations Act, carrying fines and potential imprisonment. Contracts entered into during the unlicensed period can be void, and responsible managers can be personally exposed. If you are unsure, settle the position before you start rather than after.
Licensing is cheaper to settle before you start than after ASIC asks
Tell us what your business does, or plans to do, in plain terms. We will tell you whether you need a licence, which authorisations, and what the application involves.
You can build the business properly and still be operating unlawfully
You have a financial services business, or you are building one. What you are not certain about is whether your activities need a licence, or whether the one you hold covers what you have grown into. The answer is not intuitive, and the people who get it wrong are rarely careless. They are usually people who understood their product and underestimated the regime it sits inside.
- We will analyse your activities and tell you what licensing they require.
- We will prepare and lodge your AFSL application or variation.
- We will advise whether an authorised representative arrangement is a genuine option.
- We will assess and document your responsible managers.
- We will design compliance arrangements that meet your licence conditions.
You need to know which side of the line you are on
You are launching something in financial services and you need to know what licensing you require before you take a single client. Or you already hold an AFSL, the business has moved on since it was granted, and nobody has checked whether the authorisations still match what you sell. Perhaps you have been told you can operate as an authorised representative under somebody else’s licence. You want to know whether that is really true. The stakes are high enough that a maybe is not usable.
What's included in your AFSL licensing and regulation service
- Licensing opinion for your specific activities.
- AFSL application prepared and lodged.
- Variation application for changes to your authorisations.
- Responsible manager assessment and documentation.
- Compliance framework designed and reviewed.
- Ongoing regulatory advice as a licence holder.
What happens when the licensing is wrong?
Unlicensed conduct is not a paperwork problem with a fine attached. ASIC can seek injunctions, and contracts entered into during the unlicensed period can be void. The conduct can also be referred for criminal prosecution.
For responsible managers the exposure is personal rather than corporate, and prosecution in this area is not theoretical. The commercial damage runs alongside it. An enforcement action ends client confidence, makes a future licence application very hard to sustain, and can close off a career in financial services entirely. And the exposure accumulates quietly, because nothing announces it. Every month of operating in the wrong category is another month that becomes relevant the day somebody looks.
How we get the licensing settled
We start by describing what your business actually does, activity by activity, because that is the level the law works at. You get a definitive view on whether you need a licence, which authorisations, and whether an exemption or an authorised representative arrangement is a genuine option.
If an application is required we prepare it in full. That means the business model, the compliance arrangements, the dispute resolution membership, the professional indemnity cover, and the responsible managers’ qualifications. Those are the five things the regulator examines. A thin answer on any one of them is what turns a three-month application into a nine-month one. Once the licence is granted we set up compliance arrangements you can actually run, rather than a manual nobody opens.
How an AFSL application runs
Three steps from an uncertain position to a licence that fits.Map your activities
We describe what the business does at the level the law works at, and tell you which authorisations that needs.
Lodge the application
We prepare the full submission across all five areas the regulator examines, so it is not sent back for more information.
Run it compliantly
We set up the compliance and reporting the licence conditions require, in a form your team can actually operate.
A licence that matches what you actually do
Financial services is one of the few areas where you can understand your product completely and still be in trouble. The regime does not reward commercial sense. It rewards describing your activity in the terms the law uses. That is a translation problem, and it is not one most founders should have to solve alone.
We are ISO 9001 accredited. What gets checked on a licensing file, and what you are told about it, is defined rather than left to chance. On an application where the regulator is assessing whether your compliance arrangements are real, pointing at our own is not a bad place to start.
Our great lawyer guarantee
Six principles we hold to, whatever you bring us and however long it takes.
Take the time
We listen carefully to understand what you want to achieve, then step you through the advice and the documents.
Share our knowledge
We pass on as much as we can, so you can make your own informed decisions.
Stick to our knitting
We only do what we are good at, so you never pay for our learning.
Work as one team
Someone is always available to answer your question or point you the right way.
Fair pricing
A fixed or capped quote for advice and documents, so you do not carry the price risk.
It is your show
We are in it for a front row seat to witness your success, not for our egos.
Find out whether you need a licence
Tell us what your business does, or intends to do. We will tell you whether it needs an AFSL, which authorisations, and what the application would involve.
More on this area of law
Read more about AFSL licensing, ASIC and financial services regulation.