The AFSL regime continues to evolve, with ASIC increasing its expectations of licensees and auditors and enforcing those expectation rigorously.
Licensees have a general obligation to provide efficient, honest, and fair financial services – they must comply with conditions of the AFS licence and Corporations Act 2001.
AFS licensees are bound by their general obligations from the moment a licence is granted – and must continue to meet them on an ongoing basis. Any failure to comply creates both a serious business risk and a significant audit concern.
This session will:
- Explain why the licence is relevant to the auditor and procedures to consider
- Outline the requirements of RG 104 AFS licensing: Meeting the general obligations (including authorised representatives
- Highlight risks faced by AFS licensees, illustrated by recent ASIC enforcement actions – the “business killers” such as licence suspensions, cancellations, and court actions
- Discuss the role ASA 250 Consideration of Laws and Regulations in an Audit of a Financial Report plays
- Explore the connection between the licence and FS71 Auditor’s report for Australian financial services licensee
- Discuss the auditors breach reporting responsibilities including the revised RG 34 Auditor obligations: Reporting to ASIC, and
- Summarise ASIC’s latest guidance and reports.
