The financial services regulator has released an information sheet on limited Australian Financial Services Licences (AFSLs), explaining in further detail their definition and scope.
In its Information Sheet 179: Applying for a limited AFS licence, the Australian Securities and Investments Commission (ASIC) has provided guidance on the regulator's licensing application process, and how it will apply to those seeking a limited AFSL.
According to ASIC, applicants can create different combinations when it comes to the scope of their licence. The three areas are financial product advice, ‘class of product' advice, and arranging for a person to deal in a financial product.
"Financial product advice means a recommendation or statement of opinion that is provided with the intention of influencing a person's decision on a financial product, or could reasonably be regarded as intending to have such an influence," the document stated.
"Class of product advice is defined as financial product advice about a class of products, but does not include a recommendation about a specific product in the class."
‘Arranging to deal', according to ASIC means applying for or acquiring a financial product, issuing, varying and disposing of a financial product on behalf of someone else.
The limited licence comes as the accountants' exemption under the Corporation Act will cease on 1 July, with a three-year transitional period.
Existing practices will retain their exemption until 30 June, 2016.
The exemption allows accountants to provide advice on the establishment of self-managed super funds without the need for an AFSL.
"While any person can apply for the new limited AFS licence, recognised accountants who apply between 1 July 2013 and 30 June 2016 can take advantage of transitional arrangements," ASIC said.
"Under the transitional arrangements, different organisational competence arrangements will apply where the responsible managers of the applicant are recognised accountants."
