Ensuring your Responsible Manager (RM) role is compliant and meets the obligations of your licence is an important issue for all independent advice businesses.
Recent events within the financial planning industry has seen businesses start to take a microscope to their own organisations and place a greater focus on this role.
What does a Responsible Manager do?
A Responsible Manager (RM) is the person nominated within a business to demonstrate the licensee has the competence to provide the licensed financial services or credit activities. They apply their knowledge and experience to the day-to-day matters that relate to the AFSL or ACL. They should be able to identify what the key licence requirements are and understand what measures are in place to ensure the compliance framework is functioning effectively. They are also often the first point of contact for ASIC if problems with the licence arises. The role forms part of a wider organisation framework to manage licence and compliance matters.
Nominating a Responsible Manager
You nominate your business’s Responsible Manager when applying for an AFS licence or apply to vary your licence authorisations. You must also notify ASIC if you change any of your RM’s at any point. ASIC may also ask about your RM’s if they conduct a surveillance visit on your business.
The RM must fulfil the skill and knowledge requirements outlined by ASIC in in RG 105 or RG 206 for Australian Credit Licensees (ACLs).
Once you have nominated your RM(s), ASIC will assess their suitability across a number of areas including:
- What responsibility they have for significant day-to-day decisions
- Their level of involvement in the business of a general nature
- Demonstratable, appropriate knowledge and skills
- Ensuring they are of good fame and character.
The competencies are assessed taking into account the formal qualifications and relevant experience of the nominated persons.
On-going Professional Development
Licensees are required to regularly review and update their competence to provide financial services - therefore RM’s must maintain and update their knowledge and skills. It’s essential that they are on top of regulatory and legislative developments, issues effecting the industry as well as refreshing their understanding of their role.
How we help
Jigsaw Support Services holds an annual business forum, which includes Responsible Manager training that counts towards your CPD points. For RM training outside of the business forum, we work closely with our partners CCT and can offer discounted RM training. For more information contact your Jigsaw Regional Manager or call 1800 812 987.