What exactly are “principals” and “representatives” as ASIC sees them? Since the regulator issued its two sets of policy proposal papers over the FSRB in May and June, a NIBA team has been examining them for potential problems. And as you’d expect from such a voluminous range of papers, there are a few hang-ups.

For example, the difference between principals and representatives needs work, according to NIBA. The policy proposal papers say the relevant criteria for the two definitions are “indicators only” and “not determinative”. In its written response, NIBA has asked for guidance.

Some of the other major issues being considered include:

• When is someone a mere “referrer”?
• When does somebody give personal advice?
• How can the scope of the definition of “advice” be restricted?

NIBA has also been working on the development of training and other educational tools designed to assist members in complying with FSRB licensing requirements. 

The regulations connected with the legislation are expected to be released next month.