Fund Manager Compliance | Cowell Clarke Lawyers

Australia's regulatory framework covers a variety of financial services participants. We help businesses to navigate their obligations and manage risk while achieving their commercial goals.

Our team has real, hands-on financial services expertise, gained in private practice and working for Australian Securities and Investment Commission (ASIC) and the Australian Prudential Regulation Authority (APRA). Our practical experience, insights and passion to see financial services businesses thrive set us apart.

Key Steps before Issuing Interests in the Scheme

  • Incorporate a company & obtain an AFSL with the company as manager/trustee
  • Adopt a constitution for the scheme
  • Formalise engagement with service providers
  • Issue an offer document
  • Comply with the obligations of a reporting entity
  • Adopt a privacy policy and privacy compliance plan
  • Obtain relevant certificates from the wholesale investor

Privacy Requirements

  • Must comply with the Privacy Act 1988 on the basis that the trustee is a reporting entity for the purposes of the Anti-Money Laundering and Counter-Terrorism Act 2006
  • Have a readily available Privacy Policy that governs the collection, use, disclosure and management of personal information
  • Establish a privacy compliance plan
  • Establish a procedure where persons can have access to and correct their personal information held by the trustee

Consequences of Breaching your AFSL

For a range of AFSL breaches, administrative action may be taken by ASIC to cancel or suspend your AFSL after offering you a hearing. For providing financial services outside of your AFSL authorisations criminal penalties apply with a strict liability offence which imposes a maximum of 200 penalty units, currently $42,000 or 2 years imprisonment, or both. For accepting conflicted remuneration civil penalties apply with a maximum penalty of $200,000 (for individuals) or $1,000,000 (for body corporates). For this breach, the Court may also ban you from being involved in the financial services industry.

The above does not cover each breach penalty, however it provides an illustration of the extent of consequences that may result from failing to comply with your AFSL obligations.

We engaged Cowell Clarke to help us with our AFSL and Credit Licence Compliance obligations. We immediately found the Compliance Portal of great assistance when it comes to policies, registers, reminders and document storage.

Stewart Partners

We have found the Cowell Clarke portal a very useful resource for our limited AFSL needs, it has acted as a central point for information and retention of our key documents. We have also found the Cowell Clarke AFSL team to be most supportive in our endeavours and always available to assist with queries.

Tilbrook Rasheed

Cowell Clarke provides us with a fully outsourced AFSL Compliance function. Utilising their specifically developed AFSL Compliance Portal and experienced staff they have effectively removed all AFSL compliance administration from our business whilst simultaneously ensuring we are appropriately managing compliance risk.

Philip Riquier, Director, Accord Property

To know that we have all of our AFSL ‘collateral’ in one place, in the right place and that it is current, gives us great comfort in meeting our obligations under the Act and to the regulator. I would highly recommend Cowell Clarke's services to any AFSL holder.

Edwards Marshall Advisory Pty Ltd

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