find the latest legal job
Part Time Risk & Compliance Officer
Category: Other | Location: Brisbane QLD 4000
· Brisbane City · Flexible Part Time Hours
View details
Infrastructure Lawyer/SA
Category: Construction Law | Location: Sydney CBD, Inner West & Eastern Suburbs Sydney NSW
· Global elite law firm · Dedicated Infrastructure team
View details
Property Lawyer
Category: Property Law | Location: All Melbourne VIC
· 12 Month Contract · Diverse Work
View details
Family Lawyer
Category: Family Law | Location: Eastern Suburbs Melbourne VIC
· Boutique Firm · Great Reputation
View details
Infrastructure Lawyers
Category: Construction Law | Location: All Perth WA
· We'd be particularly interested to hear from you if you were a lawyer who knows your way around the infrastructure and energy sectors.
View details
FSR licence issues remain

FSR licence issues remain

WHILE THE spectacular workload of the run up to the introduction of the Financial Services Reform Act (FSRA) last year has abated, there are many unresolved issues surrounding the reforms, a…

WHILE THE spectacular workload of the run up to the introduction of the Financial Services Reform Act (FSRA) last year has abated, there are many unresolved issues surrounding the reforms, a leading lawyer has warned.

One year on from the enaction of the FSRA, which passed into law on 11 March 2004, Australian Financial Services License (AFS) holders are finding that applying a single regulatory environment to diverse financial products is not an easy fit.

AFS holders that are companies must have their licences audited, and problems are arising. The Australian Securities and Investments Commission (ASIC) has stated that the financial and compliance audit should cover whether the licensee is complying with both the license conditions and the requirements of the FSRA. However, a traditional audit of a company only covers reporting on the company’s financials and the adequacy of financial and statutory record keeping.

“This distinction is creating certain tensions given the different set of skills required for a compliance audit as opposed to a financial audit,” said Marianne Robinson, manager, compliance solutions at Phillips Fox. “It is new territory for everyone and as auditors are not experts in the law related to licensing there have been some issues arising.”

Also causing problems are the conflict of interest arrangements. “Licensees are required to identify the potential and actual conflicts in order to control the conduct, avoid conflicts wherever possible and have adequate mechanisms in place where the conflict cannot be removed. Once again, the emphasis is on the licensee demonstrating that its processes are adequate to manage, monitor and control,” Robinson said.

Robinson recommended Australian Standards AS/NZS4360 and AS3806 1998 for AFS licensees due to their use as benchmarks by ASIC when considering the legislative obligations of AFS licensees.

Stuart Fagg is the Editor of Risk Managementmagazine, Lawyers Weeklys sister publication.

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

FSR licence issues remain
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Violence
Nov 17 2017
It's time for politicians to commit to eradicating domestic violence
The national shame of domestic violence cannot be left unaddressed, writes Christine Smyth. ...
Nov 16 2017
From lawyer in law firm to senior governance professional
Promoted by Governance Institute of Australia As a law graduate, Kate Griffiths never imagined...
marriage equality
Nov 16 2017
Legislation the next hurdle for marriage equality
Lawyers have underscored the importance of ensuring same-sex marriage legislation does not limit ant...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...