Appointing and ceasing authorised representatives

You may authorise a person to provide a specified financial service or financial services on behalf of the licensee by giving the person a written notice: see sections 916A(1) and 916B(3) of the Corporations Act 2001 (Corporations Act).

The financial services specified may be some or all of the financial services covered by the licensee's licence: see sections 916A(2) and 916B(4) of the Corporations Act.

An authorisation may be revoked at any time by the licensee or an authoriser giving written notice to the authorised representative: see sections 916A(4) and 916B(7) of the Corporations Act.

An employee or director of a licensee is a representative of the licensee and does not need to be appointed as an authorised representative. However, if the individual provides personal advice to retail clients on relevant financial products, they must be appointed to the Financial Advisers Register and registered with ASIC before providing advice. 

If the licensee is a partnership, unless the individual partners who engage in financial services are ‘employees’ of the partnership, they must be appointed as authorised representatives.

If the licensee is a group that is the trustees of a trust, each trustee who engages in financial services must be appointed as an authorised representative. The trust itself cannot be an authorised representative.

Generally, an AFS licensee cannot be the authorised representative of another AFS licensee. However, an AFS licensee who is an insurer, may authorise an AFS licensee who acts under a binder given by the insurer (s916D & E).

For more information see Information Sheet 91 Who can be an authorised representative of an AFS licensee (INFO 91).

Under s916B of the Corporations Act, an authorised representative may sub-authorise individuals to provide financial services on behalf of the licensee, but only where the licensee consents in writing. A body corporate that is an authorised representative will generally need to sub-authorise its directors and employees in order to provide financial services on behalf of a licensee. For more information see Information Sheet 88 Notifying ASIC of the appointment of an AFS authorised representative (INFO 88).

An authorised representative that sub-authorises an individual is referred to as an ‘authoriser’.

One person can be the authorised representative of 2 or more AFS licensees but only if each of the licensees consents to the person being the authorised representative of the other licensees, or each of the licensees is a related body corporate of the other licensees (section 916C of the Corporations Act).

You must notify us within 30 business days of the date an authorisation is issued (section 916F(1) of the Corporations Act as modified by regulation 7.6.04AA of the Corporations Regulations 2001). This applies to both licensees authorising representatives and to authorised representatives who sub-authorise (subject to some limited exceptions). For more information see Information Sheet 88 Notifying ASIC of the appointment of an AFS authorised representative (INFO 88). 

To notify ASIC of the authorisation of an authorised representative you must submit an 'appoint' transaction using ASIC Online Services. The information you submit immediately updates the AFS Authorised Representatives Register. This means you can find out the authorised representative's number/s straight away by browsing our Professional registers.

The notification of appointment must indicate whether the authorised representative can appoint further authorised representatives under your licence. If you do not notify us of this, we will not accept any notifications from them of sub-authorisations.

If there is any change in the authorised representative's details (address, name, etc.), you must notify us within 30 business days and submit a 'maintain' transaction using ASIC Connect.

If you cease an authorisation, you must notify us within 30 business days of the cessation and submit a 'Cease adviser/authorised representative' transaction using ASIC Connect.

For instructions on how to use ASIC's Online Services, refer to User guides for AFS licensees and authorised representatives and to AFS licensees - Financial advisers register.

• Regulatory Guide 175 AFS Licensing: Financial product advisers - conduct and disclosure (RG 175)
• Information Sheet 91 Who can be an authorised representative of an AFS licensee (INFO 91) 
• Information Sheet 88 Notifying ASIC of the appointment of an AFS authorised representative (INFO 88)