Understanding the Role of a CAR in the Australian Financial Services Industry by Avenir Capital
A Corporate Authorised Representative (CAR) is a company or organisation appointed by an Australian Financial Services Licence (AFSL) holder to provide financial services on its behalf. This arrangement allows the CAR to operate within the regulated financial services industry without holding its own licence, provided it complies with the conditions set by the AFSL holder.
CARs play a critical role in delivering services such as financial advice, investment management, insurance broking, or dealing in financial products and the AFS licensee is responsible for ensuring that the CAR meets all regulatory obligations.
Key Obligations of a Corporate Authorised Representative
To operate under an AFSL, a Corporate Authorised Representative (CAR) must comply with various legal and operational requirements, including:
1. Compliance with the AFSL Holder’s Requirements
A CAR must adhere to the reporting, disclosure, and record-keeping requirements set by its AFS license holder and the Responsible Manager.
2. Regulatory Compliance
CARs must ensure they follow all ASIC regulations and the Corporations Act 2001, maintaining high standards of ethical and legal conduct.
3. Training & Competence
All representatives working under the CAR must be properly trained, qualified, and competent to provide financial services in line with regulatory expectations.
4. Professional Indemnity Insurance
CARs must maintain adequate insurance coverage to protect clients against financial losses arising from breaches of obligations.
5. Acting in the Best Interests of Clients
A CAR must always act in the best interests of clients, ensuring financial advice and services align with their needs.
6. Transparent & Accurate Communication
CARs are required to provide clear, accurate, and complete information about financial services, including fees, risks, and any conflicts of interest.
7. Robust Risk & Compliance Systems
A CAR must have effective internal systems and controls in place to monitor compliance and mitigate risks associated with providing financial services.
Are You Looking to Operate Under an Australian Financial Services Licence?
At Avenir Capital, we offer access to our Wholesale Australian Financial Services Licence (AFSL 405469) for businesses in the Funds Management and Asset Management industries. Since 2011, our blemish-free AFSL has provided firms with a reliable licensing solution to operate legally in Australia’s financial services sector.
🔹 Short-Term AFSL Access: If you plan to obtain your own AFSL later, our AFSL for rent service is available on a flexible, short-term basis. We also provide a pathway to obtaining your own AFSL if this is something you're interested in down the track.
🔹 Long-Term Partnership: For those seeking ongoing access, we offer competitive rates and additional value-added services.
Take the Next Step
✅ Complete our short enquiry form to explore your options.
📞 Contact Anya at +61 438 355 002
or email ahaywood@avenircapital.com.au.
Let’s simplify your path to operating under an AFSL!
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