AFSL Solutions for Wealth Managers| Pre-licensing Assessment | Wealth Managers’ AFSL Application Management | Post-licensing Risk and Compliance Solutions

We offer a comprehensive set of solutions to help you obtain and maintain a wealth manager’s AFSL, tailored to:

• Your business goals and objectives
• Your client demographics
• Your countries of operation
• The size of your business
• The available human and technology resources
• Your risk appetite
• Your governance structure
• The products that you offer
• ASIC regulated wealth managers’ obligations covering risk and compliance management under financial laws and regulations, the applicable financial licensing requirements, AML/CFT laws, privacy laws, consumer protection laws, and more

We have designed our financial licensing solutions to help you navigate the complexities of the Australian licensing regime for wealth managers in a commercially oriented and goal-focused manner, providing effective support for all stages of the Australian wealth managers' AFS licensing  process, including but not limited to the following aspects:

• Wealth Managers' AFSL Guidance: Advising on a wide range of aspects associated with wealth managers’ AFSL Licensing as it relates to your specific situation
• Pre-licensing assessment: Covering compliance gap analysis as well as risk and compliance assessment
• Pre-licensing support:
• Drafting the necessary policies and procedures to help you comply with the wealth managers’ AFS licensing conditions and financial markets' regulations
• Developing internal controls to help you meet your obligations under the Australian licensing regime for wealth managers
• Wealth Managers' AFSL Application Support: Covering the entire licensing process
• Post-licensing Support: Covering
• Ongoing compliance advice
• Comprehensive second-line risk and compliance support, including leading the implementation of your risk management framework (RMF), compliance management framework (CMF), compliance monitoring program (CMP), compliance calendar and checklist, ongoing risk assessments, internal and external reporting, outsourced providers' management, and more
• AML/CFT advice
• AML/CFT compliance management
• Compliance assurance solutions, including compliance assurance program (CAP) development, implementation, and internal control testing

 

Service Coverage

This page is about the Australian Wealth Managers’ AFSL. In Australia, entities providing wealth management services - including financial product advice, investment management, and dealing in a range of financial products - must obtain an Australian Financial Services Licence (AFSL) from ASIC under the Corporations Act 2001 and register with AUSTRAC under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (if your business firm provides designated services).

Depending on your business model, this may require AFSL authorisations for financial product advice, managed investment scheme (MIS) operation, portfolio management, dealing in financial products, or a combination of these authorisations. This licence authorises you to provide financial services to both retail and wholesale clients. We offer comprehensive support for a wide range of wealth managers' AFS license applications tailored to meet the specific needs of the following businesses:

• Private Wealth Managers
• Wholesale Wealth Managers
• Retail Wealth Managers 
• Institutional Wealth Managers 
• Boutique Wealth Managers 
• Family Offices
• Robo-Advisors
• Cross-Border Investment and Tax Planning Advisors
• ESG-Focused Wealth Managers

You can find more information about our wealth managers’ AFS licensing solutions below:

 

Wealth Managers’ AFS Licensing Preparation

Pre-licensing Compliance Assurance

Our wealth managers’ AFS licensing solutions cover the following focus areas:

• Compliance Goals Analysis: We review your business-specific goals and resources against the suitability criteria for the Australian licensing regime for wealth managers
• Initial Consultation: We provide guidance on potential risk and compliance issues that may arise during the wealth managers’ AFS licensing process
• Choosing the Right Jurisdiction: We assist in evaluating regulatory, risk, and compliance environments to determine the most suitable jurisdictions for your Wealth Managers' AFSL, tailored to suit your:

• business objectives,
• operational capacity,
• client base,
• markets of operations,
• and other relevant factors

• Gap Analysis: We identify gaps between your existing operations and regulatory requirements and help you align them in a commercially oriented manner
• Wealth Managers' AFSL Application Plan: We help you establish a roadmap to effectively meet the wealth managers’ AFS licensing requirements

 

Wealth Managers’ AFS Licensing Guidance

Selecting the right compliance model is crucial not only for navigating the licensing process but also for maintaining ongoing compliance and avoiding potential breaches. Our wealth managers’ AFSL solution covers:

• Compliance Model Selection: To help you best comply with the Australian licensing regime for wealth managers and related risk and compliance obligations.
• Corporate Governance Model Selection: We offer practical guidance on establishing effective corporate governance practices that support your risk and compliance oversight.
• Operations Model Advisory: We advise you on optimising your operational and governance models to help you efficiently comply with the Australian licensing regime for wealth managers, keeping in mind your specific circumstances, available resources and business goals.

 

Entering Wealth Managers’ AFSL Environment

We help businesses transition from an unregulated environment to operating under the Australian licensing regime for wealth managers, helping them meet their obligations as wealth managers’ AFS licensing holders.

We also assist already regulated businesses in aligning their existing risk and compliance management structures with the requirements of the Australian licensing regime for wealth managers.

Our focus areas for this service include:

• New businesses
• Existing wealth managers operating in unregulated markets
• Regulated wealth managers expanding into foreign jurisdictions
• Financial institutions and/or service providers with established risk and compliance frameworks seeking to introduce a regulated wealth management service as a new product.

 

Multi-Jurisdictional Compliance

With years of experience managing risk and compliance obligations for businesses operating under multiple financial licences across various jurisdictions, we help businesses remain compliant with the wealth managers’ obligations globally.

 

Wealth Managers’ AFSL and Wholesale Markets

Getting a wealth manager’s AFSL may not always be the best fit for all. For example, a retail market expansion may not always align with your goals or the products you offer.

Operating in the wholesale environment can sometimes be a more suitable option. We offer a wider range of risk and compliance management solutions to assist wealth managers that:

• Operate in the wholesale markets
• Operate under exemptions from the Australian licensing regime for wealth managers
• Offer services to sophisticated, eligible, and wholesale investors

 

We help them comply with the regulatory compliance obligations that are not caught by the Australian licensing regime for wealth managers, but that still have to be addressed and handled, including:

• Advertisement Rules
• Fair Dealing Regulations
• Risk Management
• Outsourced Providers' Oversight
• Restrictions on offering services to retail investors without a licence (an integral part of the Australian licensing regime for wealth managers)
• Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) laws and regulations
• Data Management Laws and Regulations

 

 

Wealth Managers’ AFSL Application

We assist with your AFSL application through ongoing engagement in the Australian wealth managers’ AFS licensing process:

• Document Compilation and Review: We compile and review all required supporting documents to support your Wealth Managers' AFSL application.
• Application Form Completion: We help you complete the forms so that all material information is accurate and complete.
• Pre-Submission Review: We can arrange a pre-submission review session with key stakeholders to ensure all parts of your application are understood and agreed upon. This session aligns application details with the actual situation, removing ambiguity.
• Regulatory Liaison: We manage the end-to-end submission process, maintaining clear and effective communication channels throughout the ASIC licensing process.
• Timeline Management: We closely monitor and adhere to all necessary deadlines, providing timely updates and adjustments to keep the application process on track.

 

Resolving Wealth Managers’ AFSL Issues

Having competent compliance advisors is crucial when licensing issues arise. Therefore, our  wealth managers’ AFS licensing solutions include a range of services to address and resolve these issues effectively:

• Remediation Solutions for Wealth Managers' AFSL Applicants: We address and remediate risk and compliance issues identified by regulators, helping your operations align with the requirements of the  Australian licensing regime for wealth managers.
• Specific AFSL Conditions Compliance: We can help you manage additional conditions imposed on your wealth managers’ AFSL, developing a tailored action plan to maintain compliance and facilitate the eventual removal of these conditions with minimal disruption to your business operations.
• Licensing Issues Handling: We address common licensing issues encountered during the Australian wealth managers’ AFS licensing process, providing you with solutions to navigate and resolve these challenges efficiently.
• Further Information: You can visit our Compliance Remediation Solutions page for more information.

 

Post-Licensing Support

We offer a full range of ongoing risk and compliance solutions for Australian-regulated wealth managers. Our services include, but are not limited to:

Ongoing Risk and Regulatory Compliance

• ASIC Regulated Wealth Managers’ Obligations Guidance: We can advise your risk, compliance, management and other teams on meeting the requirements of the wealth management licensing regime and other regulatory compliance obligations. You can visit our Compliance Advisory page for more information.
• Regulatory Risk and Compliance Management: We provide dedicated compliance managers to manage your overall compliance. For more information, visit our Specialised Compliance Management Solutions page for Wealth Managers.
• Compliance Assurance Solutions: As part of our compliance assurance solutions, we offer:

• Compliance Assurance Program (CAP) development and testing options
• Internal Controls Design option
• Internal Controls Testing option
• Internal AML/CFT Review option
• Statutory AML/CFT Audit option

• Compliance Training Solutions: We offer training programs to different teams on complying with:

• ASIC Regulated Wealth Managers’ obligations for risk and regulatory compliance management. You can visit our Compliance Training page for more information.
• Wealth managers’ AML/CFT obligations and operational best practices for fraud prevention. You can visit our AML/CFT Training page for more information.
• Crisis Management Planning: We can develop proactive strategies to manage potential compliance crises effectively.
• Anti-Money Laundering (AML) and Counter Terrorist Financing Solutions: We provide a full range of AML/CFT solutions for wealth management providers. For more information, visit our Specialised AML/CFT Solutions page for Wealth Managers.
• Advanced Compliance Technologies: We can assist you with selecting and integrating advanced technology solutions, such as compliance automation tools and regulatory technology (RegTech), to streamline compliance processes without disrupting operations.

• Risk and Compliance Framework Adjustments: Including adjustments to risk management frameworks (RMFs), compliance monitoring programs (CMPs), compliance management frameworks (CMFs), and other core procedures and policies to align them with:
• new business goals
• regulatory changes
• changes in your operations
• evolving market conditions
• changes in stakeholders’ risk appetites (your banking partners, insurance companies, liquidity providers, etc.).

 

 

Risk and Compliance Obligations for ASIC-Regulated Wealth Managers

ASIC-regulated wealth managers are subject to various obligations set out in applicable laws and regulations. They are also expected to uphold standards for their conduct and internal operations, as outlined in regulatory guidance or accepted industry practices.

We can help you address these obligations and expectations through comprehensive support across various areas. The list below is not exhaustive:

Wealth Management AFSL and Regulatory Compliance Obligations

• Compliance Management Systems: We can help you establish effective compliance programs, compliance monitoring plans, controls testing methodologies, compliance calendars and more (as required under RG 104).
• Risk Management Frameworks: We can help you develop comprehensive risk management frameworks to fulfil ASIC regulated wealth managers’ obligations for identifying, assessing, and mitigating operational, regulatory, strategic, financial and other types of risks.
• Policy and Procedure Development: We can help you draft and implement policies and procedures aligned with the wealth management licensing requirements (as required under RG 104 and RG 105).
• Compliance Monitoring Plans: We can oversee the execution of your CMPs, covering ongoing monitoring of your compliance obligations under the wealth management licensing regime.
• Internal Control Testing and Compliance Assurance: We can conduct internal reviews and audits of your controls to test their effectiveness and compliance with the applicable regulatory standards.
• Capital Adequacy Requirements: We can help you implement controls to comply with capital adequacy requirements, helping your businesses meet ASIC regulated wealth managers’ obligations for maintaining required financial resources.
• Liquidity Management Requirements: We can assist you in developing controls to comply with liquidity management requirements (as required under RG 166).
• Financial Auditing Standards: We can assist in establishing procedures to help you comply with the audit and assurance requirements under the wealth management licensing regime.
• Digital Payment Token Services: We can assist in developing controls to comply with regulations for digital payment tokens, cryptocurrencies, and digital assets, including obligations under the wealth management licensing regime and AML/CFT requirements for transaction monitoring and reporting.

 

Wealth Management AFSL and Operational Oversight Obligations

• Oversight of Outsourcing: We can establish a set of effective controls to comply with wealth managers' AFS licensing requirements for overseeing outsourced services, also covering related obligations under AML/CFT compliance, ISO requirements, and more.
• Structures for Governance: We can help you establish effective governance structures to comply with ASIC regulated wealth managers’ obligations and develop an effective approach to overseeing your risk exposure and compliance status across different functions of your business.
• Senior Management Accountability: We can help you comply with AISC regulated wealth managers’ obligations for senior management and key staff conduct and competence (as required under ASIC RG 105).
• Maintaining Operational Resilience: We assist in developing continuity plans to meet ASIC regulated wealth managers’ obligations for operational resilience, helping critical business services withstand disruptions.
• Managing Technology Risks: We provide guidance on technology risk management obligations under the wealth management licensing regime.

 

Wealth Management AFSL and Market Integrity/Transparency Requirements

• Standards for Market Conduct: We can help you implement controls for ASIC regulated wealth managers’ obligations to maintain fair and transparent market conduct, including preventing manipulation and insider trading.
• Principles for Fair Treatment: We can help you implement controls to comply with expectations that cover adherence to principles of fair treatment and transparent communications with clients.
• Standards for Conduct and Disclosure: We can help you comply with wealth managers' AFS licensing standards for conduct and disclosure.
• Product Suitability and Governance: We can establish tailored controls to help ASIC regulated wealth managers’ obligations comply with product suitability and governance obligations, including risk management and governance arrangements across the product life cycle.
• Protection of Client Assets: We can help you comply with wealth managers' AFS licensing obligations to protect and segregate client assets.
• Resolution of Disputes: We can help you establish effective mechanisms for dispute resolution and complaints management, particularly for retail clients.
• Best Interests Duty and Related Obligations: We can help you implement controls to support your compliance with the best interests duty and related obligations, ensuring financial advice is always in your clients’ best interests and meets statutory conduct standards (as required for financial advisers under the Corporations Act and RG 175).
• Personal vs General Advice Disclosures: We can help you develop procedures to distinguish between personal and general advice, ensuring all required disclosures are made and advice documentation complies with ASIC requirements (as required for financial advisers under the Corporations Act and RG 168).

 

Wealth Management AFSL and Resource Management Obligations

We can help you comply with the following requirements of the wealth management licensing regime:

• Adequacy of Resources: Covering financial, technological, human and other resources.
• Competence of Professionals: Covering key personnel, their necessary skills, knowledge, and professional competence.
• Our focus areas include:

• Assessment and Gap Analysis: We can help you evaluate the adequacy of your financial, technological, and human resources against the requirements of the licensing regime.
• Resource Allocation Plans: We can help you develop strategies to optimise resource allocation, covering sufficient capacity for compliance, trading, operations, banking, customer support and other functions and departments.
• Technological Solutions: We can recommend and implement RegTech tools to streamline compliance processes, such as transaction monitoring, reporting, and audit trails.
• Key Personnel Assessment: We can help you assess the skills, qualifications, and experience of key personnel to identify areas for improvement.
• Training and Development Programs: We can design and deliver targeted compliance training programs to upskill personnel in compliance, risk management, and compliance regulations.
• Representative Vetting: We can help establish a framework for assessing the competence and suitability of advisors and representatives before appointment.
• Compliance Monitoring: We can help develop controls to monitor representatives' adherence to conduct and disclosure obligations.
• CPD and Ethics Standards: We can help you implement policies and frameworks to meet ongoing continuing professional development (CPD) and ethical standards, covering requirements for all relevant providers (as required by FASEA standards and ASIC guidance).

• Regulator Liaison: We can act as an intermediary with regulators to address queries and help you demonstrate compliance with resourcing obligations.

 

Wealth Management AFSL and Reporting

• Regulatory Reporting: We can help you prepare and submit periodic and ad-hoc reports covering:
  • Wealth Managers' AFS licensing obligations
  • Wealth Managers’ AML/CFT obligations (SMRs, STRs, SARs, cross-border transaction reports, cash transaction reports, and other reporting obligations)
  • ASIC Regulated wealth managers’ obligations under the financial markets' conduct-related regulations 
• Compliance Documentation: We can help you develop and maintain the necessary documentation to meet record-keeping obligations under various laws and regulations.
• Fee Disclosure Statements and Ongoing Fee Arrangements: We can help you establish systems to deliver compliant fee disclosure statements and manage ongoing fee arrangements for retail clients (as required under the Corporations Act).
• Conflicted Remuneration Controls: We can help you put in place controls to identify, manage, and avoid conflicted remuneration, supporting your compliance with Australia’s ban on conflicted remuneration for financial advisers (as required under the Corporations Act).
• Breach Reporting: We can help you develop systems for prompt identification, assessment, and reporting of significant breaches to ASIC, supporting compliance with breach reporting requirements (as required under the Corporations Act and RG 78).
• Audit Readiness: We can prepare you for audits and reviews to demonstrate compliance with regulatory requirements, provisions of the wealth management licensing regime, applicable operational standards, and more.

 

Related Services

We assist in obtaining wealth managers’ AFSL equivalents in the following jurisdictions:

• Singapore: For more information on the Singaporean equivalent of a wealth manager’s AFSL, the Singaporean wealth management licence, you can visit our CMS Licence page for Singaporean Wealth Managers.
• New Zealand: For more information on the New Zealand equivalent of a wealth manager’s AFSL, the wealth manager’s FMA licence, as well as Financial Service Provider (FSP) registration for non-retail wealth managers, you can visit our FMA Licensing page for New Zealand Wealth Managers.
• United Kingdom: For more information on the UK equivalent of a wealth manager’s AFSL, the UK wealth management authorisation, you can visit our FCA Authorisation page for Wealth Managers.
• Other Jurisdictions: We also offer licensing solutions for wealth managers in the prominent financial centres and offshore tax havens, including but not limited to:

• British Virgin Islands
• Cayman Islands
• Seychelles
• Jersey
• Guernsey
• Isle of Man
• Bermuda
• Mauritius