Suite 503

3 Spring Street

Sydney

NSW 2000

Phone: 1300 669 605

Email: info@hlkgroup.com.au

Website: www.hlkgroup.com.au

Sydney, Australia - HLK Group Sheds Light On Authorised Representative Appointments

According to Corporations Act 2001 Sect 916A(1), an Australian Financial Services Licence (AFSL) holder, may provide a person with a written notice (s916A(1)) authorising them to act on behalf of the licensee, by providing financial services to the public. The services may be some, or all of the financial services authorised in their AFSL. Authorisations may be altered or revoked by the licensee by giving the authorised representative a written notice.

Any individual or natural person, partnership, body corporate or group of individuals acting as a trustee may become an authorised representative of an AFSL. While trust entities are not allowed to become authorised representatives, only the trustee(s) may become authorised representatives.

Similarly, an AFSL holder may not be an authorised representative of another licensee. However an Authorised Representative may represent more than one AFSL provided they have sought permission from each licensee, this known as cross-endorsement.

The Corporations Act allows ASIC CARs to sub-authorise individuals to provide financial advice and services on behalf of the licensee under written consent. Employees and directors of a body corporate that provide financial services will have to be sub-authorised under the corporate authorised representative that is authorised by the licensee.

An individual may be authorised to act on behalf of multiple CARs, provided the CARs and linked licensees provide written consent for the representative to work for both, or if the licensees are somehow related.

All Authorised Representatives must be reported by the licensee to the Australian Securities and Investment Commission (ASIC). ASIC should be notified of an authorised representative appointment within fifteen (15) business days of the issuing of written notice of authorisation. This applies to both direct authorisations, and sub-authorisations. Appointments are to be notified to ASIC by submitting a form electronically via the online ASIC Connect portal. Once the form has been lodged, information should be updated in the ASIC Authorised Representatives Register immediately with the Authorised Representative name, number and date of commencement.

The ASIC CAR appointment notification should indicate whether they may sub-appoint additional individual representatives under its authorisations. Without that stipulation in the notice of appointment, ASIC will not accept sub-authorisation notices from the authorised representative.

Authorisations of an authorised representatives may be changed after the first appointment notice has been lodged with ASIC, using the required paper form. Changes should be lodged within ten (10) business days. Changes may include allowing them to sub-authorised individuals, limiting or expanding their authorisations, business address change or name change of the representative.

Should a licensee revoke an authorised representative, the licensee needs to notify ASIC within ten (10) business days of the revocation, using the (s916F(3)) paper form.