The Benefits Of Obtain Your Own Australian Financial Services Licence

Whenever deciding whether to obtain your personal Australian Financial Services Licence or become a representative of an AFS licensee, you should think about the advantages and drawbacks of obtaining your personal licence. We have included a brief review of the pros and cons of holding your own personal AFS licence.

The benefits of obtaining your personal AFS licence

Control: The largest and most obvious benefit to holding your personal licence is the control that you may have over your company and specialist practice. Basically, you are free to run and direct the company your personal way.

Revenue preservation: You don't have to share your revenue or even pay ongoing administration fees to a 3rd party (i.e. your AFS licensee). Your specialist indemnity insurance fees can also be cheaper because the insurer will not have to bear the potential risks that large licensees might have.

Cost effective: We discover the additional or marginal costs of working with a financial services licence along with an accounting practice are fairly low because most of the overhead and glued cost is already being paid with regards to the present accounting practice. Significantly, since you'll have control over the nature and scope of the work and clients many expenses can be controlled. For instance, your specialist indemnity insurance premiums with your personal licence might be comparatively cheaper because the insurer will not have to bear and cost the risks that large national licensee's knowledge about geographically spread and various practices. In these conditions, insurance premium pricing should factor in the best risk practices, which your practice will in the end cross-subsidies.

Expert independence: In light of a few of the experiences of the GFC and up to date media scandals, a large segment of the public want to accountants because the bastion from the independent specialist, providing independent advice. A subject for your Australian Financial Services Licence authorization, you are going to be free to pick the financial products and services that you'll recommend for your clients. Operating your personal licence can eliminate actual or perceived conflicts of interest to be an authorized representative of a AFS licensee, which might be owned by a financial institution. There should not be a doubt that accountants acting beneath authorizations issued by big institution-owned (mostly bank owned) licences will normally have their own operations, financial service promotional activity as well as an approved product lists based on executives of those financial institutions.

Own compliance plans: You'll be able to structure and cope with the compliance arrangements by yourself. While the necessity to adhere to the financial services laws is really a self-evident obligation. Several large licensees have additional compliance needs to safeguard their corporate/commercial pursuits. Having your personal licence reduces which additional layer of compliance rules established by large institutional groups which are designed primarily for his or her benefit.

Handling of complaints: If or when you're faced with a customer complaint, you can resolve the complaint directly with all the clients. Many of the financial services clients may also be accounting clients with whom you may have long standing associations. Arguably, the very last thing you would wish is really a manager of a financial institution dictating the way you resolve the consumer complaints as well as relationships.

Branding: Operating your personal Australian Financial Services Licence, under your name, can improve your brand. While accountants working as afs licence authorized representatives can easily still trade under their very own business names, the Corporations Act disclosure obligations need these to determine interests, associations, relationships as well as payments/benefits that may influence their carry out. This can dilute the company branding. Up to 80% of Australia’s financial advisers (such as many accountant/advisers) act to have an entity that is associated with, or controlled by, one of the big 4 banks.

Resource - medium.com/@afsllicence

The Australian Dealer Group Pty LTD was started by the financial adviser who once had given up seeking to meet high standards of financial institutions. He acquired his AFSL and created the Dealer Group that was aimed towards helping professionals wh