What is an AFSL?
An Australian Financial Services Licence (AFSL), or AFS licence, is a legal licence that governs the procedures and processes of financial and investment organisations in Australia, including Unlisted Property Trusts in Australia. Provided by the Australian Securities and Investment Commission (ASIC), the country’s corporate regulator, an AFSL is required by any Australian Financial Services Business.
Why does an AFSL matter to investors?
Investors should ensure they choose an investment services provider who complies with the AFSL standards. The good news for investors who know they are investing with a business who is complying with the obligations of their AFSL is that they are very likely a trustworthy operator.
To be AFSL compliant a company must adhere to certain obligations relating to:
- Conduct and disclosure
- The provision of their financial services
- The competence, knowledge and skills of their responsible managers
- The training and competence of their financial advisers and authorised representatives
- Ensuring their financial advisers and authorised representatives comply with the financial services laws
- Compliance, managing conflicts of interest and risk management
- The adequacy of their financial, technological and human resources, and
- Their dispute resolution and compensation arrangements (if their clients include retail clients).
AFSL compliance is critical for any organisation operating in the financial or investments space, including those providing commercial property investment. A financial services provider’s AFSL number can typically be found on their website or on relevant financial or investment materials. For example, at Properties & Pathways, we include our AFSL on every Information Memorandum (IM) and investment’s Executive Summary.
Investors wanting more information should read the information available on ASIC’s website.
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