Requirements to hold an AFS licence
To provide financial services, you generally need to hold an Australian financial services (AFS) license or be authorised under an AFS licence.
A financial service includes:
- providing financial product advice to clients for example, giving a recommendation to clients or the general public about which financial product they should purchase
- dealing in a financial product for example, buying or selling shares on behalf of a client or issuing interests in a managed investment 91AV
- making a market for a financial product for example, where you regularly quote prices at which people can buy or sell financial products
- operating a registered managed investment 91AV. ASIC is also required to register managed investment 91AVs that are offered to retail clients
- providing a custodial or depository service for example, holding a financial product, or a beneficial interest in a financial product on trust for a client
- providing traditional trustee company services for example, preparing estate management functions
- providing a crowd funding service
- providing a superannuation trustee service, or
- providing a claims handling and settling service.
Financial product advice can include limited and digital advice.
Limited advice is personal advice that does not cover all possible topics relevant to the client. Limited advice is also known as scaled, single-issue, narrow-scope, modular, piece-by-piece or episodic advice.听
The same obligations apply when providing personal advice regardless of whether the advice is limited or more comprehensive in scope.听For more information, see:听
- Limited AFS licensees
- Information Sheet 267鈥�Tips for giving limited advice鈥�(INFO 267).听
- Regulatory Guide 244鈥�Giving information, general advice and scaled advice鈥�(RG 244)听
- Obligations when giving financial advice听
Digital advice (also known as robo-advice or automated advice) is the provision of automated financial product advice using algorithms and technology and without the direct involvement of a human adviser.听See Regulatory Guide 255鈥�Providing digital financial product advice to retail clients (RG 255) for more information.听
Financial products include shares, bonds, superannuation, interests in managed investment 91AVs, life insurance, general insurance, derivatives and margin lending facilities.
Our regulatory guides and other regulatory resources on AFS licensing explain the terms 'financial product' and 'financial service' (as defined in the Corporations Act 2001 and the Corporations Regulations 2001) and any exemptions.
Exemptions from holding an AFS licence
Depending on your circumstances, you may be exempt from the requirement to hold an AFS licence or you may provide financial services under a limited AFS licence.听
Related information
- Regulatory Guide 36 Licensing: Financial product advice and dealing (RG 36)
- Do you need an AFS licence?
- Applying for and managing an AFS licence
- Limited AFS licensees听