What's a Corporate Authorised Representative (CAR) & what are their obligations?
Updated: Jun 23
A Corporate Authorised Representative (CAR) is a company or organisation that has been granted permission by an Australian Financial Services (AFS) licensee to provide financial services to clients on behalf of the licensee.
The CAR acts as an agent of the AFS licensee and is authorised to provide specific financial services outlined in their agreement with the licensee. These services may include financial advice, investment management, insurance broking or dealing in financial products.
The CAR must ensure that all of their representatives who provide financial services are appropriately licensed, trained and competent to provide those services. The AFS licensee remains responsible for the actions of the CAR and their representatives and must ensure that they comply with all relevant regulations and licensing requirements.
As a Corporate Authorised Representative (CAR) in the Australian Financial Services industry, there are several obligations that must be met to comply with the regulatory framework and ensure the provision of high-quality financial services to clients.
Compliance with the AFS licensee's obligations: The CAR must comply with the obligations of the AFS licensee, including licensing requirements, disclosure requirements, and record-keeping requirements.
Compliance with relevant laws and regulations: The CAR must comply with all relevant laws and regulations, including the Corporations Act 2001 and the Australian Securities and Investments Commission (ASIC) regulatory guides.
Maintaining appropriate training and competence: The CAR must ensure that all of their representatives who provide financial services are appropriately trained and competent to provide those services.
Maintaining appropriate insurance cover: The CAR must maintain appropriate insurance cover to protect clients against financial loss in the event of any breach of their obligations.
Acting in the best interests of clients: The CAR must act in the best interests of their clients and provide financial advice that is appropriate for their clients' individual circumstances.
Providing clear and accurate information: The CAR must provide clear and accurate information to clients about the financial services being provided, including fees and charges, risks and benefits, and any conflicts of interest.
Maintaining appropriate systems and controls: The CAR must have appropriate systems and controls in place to ensure compliance with their obligations and to manage any risks associated with the provision of financial services.
Overall, the obligations of a CAR are designed to ensure that they operate within a high standard of conduct and professionalism and provide clients with the highest level of protection and quality of financial services
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