Licensing and disclosure: Making the transition to the FSR regime

REPRESENTATIVES
LICENSING AND DISCLOSURE: MAKING THE TRANSITION TO THE FSR REGIME
SECTION 1.3: LICENSING — WHAT ARE THE PROCESSES FOR MOVING TO THE NEW REGULATORY REGIME?
1.3.31 In general, under the transitional provisions, representatives of
financial service providers move to the new regulatory regime
when their principal moves to the new regulatory regime by
obtaining an AFS licence:
(a) representatives of current financial service providers who
act for or on behalf of their principal in respect of the
principal’s existing activities will move to the new
regulatory regime when their principal obtains an AFS
licence under the new regulatory regime, during the 2-year
transitional period: see paragraphs 1.1.1 and 1.1.6 of this
guide;
(b) representatives of current financial service providers who
act for or on behalf of their principal in respect of the
principal’s new activities after FSR commencement will
move to the new regulatory regime when those activities
commence: see paragraphs 1.1.4 and 1.1.6 of this guide;
and
(c) representatives of new financial service providers after
FSR commencement will move to the new regulatory
regime when those activities commence: see paragraphs
1.1.5 and 1.1.6 of this guide.
Note 1: In relation to insurance agents, see Section 1.5.
Note 2: Representatives may decide to apply for an AFS licence themselves,
and to operate as a principal if they are granted an AFS licence.
1.3.32 Representatives who must be authorised as an authorised
representative under the new regulatory regime will require new
authorisations from their principal(s). These may be made
before FSR commencement, but will only take effect when the
principal is granted an AFS licence under the new regulatory
regime: see s1431(2) of the transitional provisions. Each
principal will also need to communicate with its representatives
to ensure that they act on the principal’s behalf in compliance
with the new regulatory regime.
Australian Securities and Investments Commission — October 2001
Page 36