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ASIC surveillance targets AFS licensees

March 2018

ASIC is ramping up its surveillance of AFS licensees and the operation of their financial services businesses.

Associate Kristy McCluskey reports we have recently seen an increase in ASIC's surveillance activities aimed at ensuring AFS licensees comply with the conditions of their licence and the financial services laws.

What you need to know

The ASIC Act and the Corporations Act empower ASIC to carry out surveillance activities, including issuing a notice of direction requiring the disclosure of broad ranging information about an AFS licensee and its business, such as—

  • evidence of compliance with licence conditions (including financial requirements)
  • information about internal governance, risk and compliance, including details of board composition and reviewing and preparing business plans
  • details of monitoring the execution of a scheme's investment strategy, liquidity and leverage.

How can we help?

Our lawyers have extensive knowledge of the financial services regulatory framework and can help in a number of ways:

  • undertaking a trial surveillance when reviewing your internal compliance arrangements
  • assisting with an ASIC surveillance
  • advising on your licensing obligations.

Please contact a member of our Funds Management team for more information about how we can help.