Why you Must Supervise and Monitor your Authorised Reps
And why it is crucial to your Funds Business
In the highly regulated financial services industry, supervision and monitoring are not just regulatory requirements—they are essential practices that safeguard your business, clients, and reputation.
Here’s why they matter:
Regulatory Compliance
As an AFSL (Australian Financial Services Licence) holder, you are ultimately responsible for the actions of your Authorised Representatives (ARs). Ensuring their compliance directly protects your business from legal and regulatory breaches.
Risk Management
Misconduct by an AR operating under your license can result in severe financial losses and irreparable damage to your business’s reputation. Proactive supervision helps mitigate these risks before they escalate.
Maintaining Standards of Conduct
To provide high-quality financial services, ARs must act in the best interests of their clients. Regular monitoring ensures adherence to professional standards and industry best practices.
Protecting Consumers
Consumers rely on accurate information and appropriate financial advice. It’s your responsibility to ensure ARs treat clients fairly, provide transparent advice, and maintain high service standards.
Building Trust and Integrity
Supervising AR activities demonstrates your commitment to integrity, transparency, and ethical conduct. This proactive approach fosters trust with regulators, clients, and other stakeholders.
By embedding effective supervision and monitoring practices into your business operations, you not only comply with legal obligations but also strengthen your firm’s resilience and reputation in a competitive market.
Need help?
Ellevate Compliance is here to help with any of your AFSL Compliance needs, including supervising your AR’s.