Defining a Corporate Authorised Representative (CAR)
A Corporate Authorised Representative (CAR) is a business entity or organisation that holds authorisation from an Australian Financial Services (AFSL) licensee to deliver financial services to clients on the licensee’s behalf.
This role allows the CAR to function as an agent of the AFS licensee, providing services such as financial advice, investment and funds management, insurance broking, or trading in financial products, in accordance with their specific agreement.
Core Responsibilities of a CAR
To maintain compliance and ensure high-quality service, CARs must fulfill several key obligations:
Follow AFSL Requirements: CARs must adhere to the requirements set by the AFS licensee, including licensing, disclosure, and record-keeping obligations.
Abide by Legal Standards: CARs are required to comply with relevant laws and regulations, including the Corporations Act 2001 and the Australian Securities and Investments Commission (ASIC) guidelines.
Ensure Proper Training and Competence: The CAR must ensure that all representatives offering financial services are well-trained and competent in their roles.
Maintain Adequate Insurance: CARs must have appropriate insurance coverage to protect clients from potential financial losses arising from any breaches of obligations.
Prioritise Clients' Best Interests: CARs are obligated to act in their clients' best interests, providing advice that suits their individual needs and circumstances.
Provide Transparent Information: CARs must offer clear and accurate information about the financial services provided, including details on fees, risks, benefits, and any conflicts of interest.
Implement Effective Systems and Controls: CARs need to have robust systems and controls in place to ensure compliance with obligations and manage associated risks effectively.
These responsibilities are designed to ensure CARs operate with a high level of professionalism and deliver excellent protection and service to their clients.
How Avenir Capital Can Assist You
If you are looking to operate as a CAR or require access to an AFSL, Avenir Capital is here to help. We hold a highly regarded Wholesale Australian Financial Services Licence (AFSL 405469), which has been blemish-free since 2011. This licence supports businesses in the Funds Management, VC and Asset Management sectors, M&A Advisors, fund raising platforms through to Credit Funds and Financial Advisors.
To discuss your business & how Avenir Capital can support your AFSL and compliance requirements:
Reach out directly to Anya Haywood at +61 438 355 002 or
Comments