The Australian Securities and Investments Commission (ASIC) has released a new licensing guide for nominated responsible officers in a bid to end confusion about their role under the Financial Services Reform Act.  

“Responsible officers: Demonstrating compliance with organisational competency obligations” spells out how Australian financial services licence (AFSL) applicants can successfully demonstrate they comply with competency obligations. It also explains how ASIC plans to assess their competency.

Pauling Vamos, ASIC’s Director of FSR Licensing and Business Operations, says the regulator was concerned AFSL applicants would delay submitting their applications because they were “concerned about the process of identifying their responsible officers”. 

“We are also concerned to address any confusion that has arisen as a result of differing advice that is being provided to applicants in the marketplace”, she said. “This guide is designed to simplify the process for prospective licensees”.

The five alternatives outlined to AFSL applicants in PS164 to demonstrate the competency of their responsible officers has been further explained in the guide and “addresses questions raised by different industry groups about how each of these alternatives is applied during assessment of licence applications”.