[Company Logo]
Responsible Managers
Procedures
[Date]
[Author]
[Company Name]
[AFSL]
Contents
1.
Overview .............................................................................................................................. 3
2.
To whom does this Procedure apply?................................................................................... 4
3.
Laws, Regulations and Industry Standards relevant to this Procedure ................................. 4
4.
Background Checking .......................................................................................................... 4
5.
Competency analysis ........................................................................................................... 5
6.
How do RMs perform their obligations? ................................................................................ 6
7.
Summary of Attachments ..................................................................................................... 7
Responsible Managers - Procedures | June 2014
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1.
Overview
As an Australian Financial Services (AFS) Licence holder (No.xxxxxx), Company X Pty Ltd has an
obligation under section 912A(1)(e) of the Corporations Act 2001 (Cth) (Corporations Act) to maintain the
competence required to provide the financial services covered by its AFS Licence. This obligation is referred
to as the ‘organisational competence’ obligation.
Responsible Managers (RMs) are senior managers responsible for ensuring that the Company meets its
organisational competency obligations.
The persons nominated and appointed as RMs, must not only satisfy the requisite knowledge and skill
requirements, but also be of good fame and character, and have direct responsibility for significant day-today decisions in those areas of the business for which they are responsible.
Our aim is to ensure that the sum total of our RMs’ knowledge, skills and experience covers the entire range
of financial services and products provided under our AFS License.
Accordingly, we have developed these Procedures to ensure we have in place a clearly defined process to:

Adequately identify the appropriate number of RMs needed to run the business efficiently and
effectively;

Ensure our RMs not only have the appropriate knowledge and skills, but are of good fame and
character;

Ensure we have appropriate initial and ongoing training arrangements in place for our RMs; and

Identify other staff within the Company with the capability of taking on the role of RM in the future,
as and when the need arises.
RMs are effectively ‘gatekeepers’ of the specific sections of the business for which they are responsible.
Specifically, our RMs are charged with the responsibility of ensuring compliance with:

The Company’s AFS Licence conditions; and

All relevant laws, regulations, industry standards and codes, including our codes of conduct and/or
policies.
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2.
To whom does this Procedure apply?
This Procedure applies to each duly appointed RM.
The Board expects full compliance with this Procedure by all duly appointed RMs.
3.
Laws, Regulations and Industry Standards relevant to this
Procedure
This Procedure has been written to ensure that the duly appointed RMs comply with all relevant laws,
regulations and Industry Standards, including, without limitation:

Corporations Act 2001 (Cth) and Corporations Regulations 2001;

National Consumer Credit Protection Act 2009 (Cth) and National Consumer Credit Protection
Regulations;

ASIC Regulatory Guide 105;

ASIC Regulatory Guide 146;

Financial Services Council (FSC) Standard No 1: Code of Ethics & Code of Conduct; and

The Financial Planning Association CPD Policy Guide for Licensees.
4.
Background Checking
Prior to nominating any new RMs, certain checks must be undertaken. The purpose of this requirement is
to ensure that the nominated RMs are of good fame and character, and have the requisite knowledge,
experience and/or qualifications for their role within our business.
The following pre-requisites must be satisfied before any potential new RM’s application will be submitted
to ASIC:
A full background check must be undertaken. This includes:

A criminal history check;

A bankruptcy check; and

A minimum of two business reference checks;

Verification of all completed education;

Confirmation of employment in the financial services industry for a minimum period of three years;
and

Verification of identity.
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5.
Competency analysis
We will only nominate RMs who:
(a)
Are directly responsible for significant day-to-day decisions about the ongoing provision of
financial services and products provided under our Licence
(b)
Possess the relevant knowledge and skills in respect of those financial services and products
covered by the Licence
(c)
Meet one of the five options designed to demonstrate appropriate knowledge and skills as listed
below. (See ASIC Regulatory Guide 105 for details).
Option
Knowledge component
(qualifications training, etc.)
Skills component (experience)
Option 1
Meet widely adopted and relevant
industry standard or relevant standard
set by APRA
Three years relevant experience over
past five years
Option 2
Be individually assessed by an
authorised assessor as having relevant
knowledge equivalent to a diploma
Five years relevant experience over
past eight years
Option 3
Hold a university degree in a relevant
discipline and complete a relevant
short industry course
Three years relevant experience over
past five years
Option 4
Hold a relevant industry – or productspecific qualification equivalent to a
diploma or higher
Three years relevant experience over
past five years
Option 5
If not relying on Options 1 – 4, The Company is required to provide a written
submission that demonstrates to ASIC that the nominated RM has appropriate
knowledge and skills for their role.
In determining the knowledge and skill requirements for each RM, the following issues will be taken into
consideration:
(a)
The sections/areas of the business each RM is responsible for;
(b)
The RM’s qualifications, skills and experience;
(c)
Any other credentials the RM may have. Such credentials may include, for example:
(d)

Details of any relevant industry associations, memberships or affiliations; and/or

Skills or knowledge recognised by an industry association or relevant regulatory body such
as the Financial Services Council and/or the Financial Planning Association of Australia;
and
Any other material which may be used to support the nominated RM’s application, including, for
example, positive client feedback, and /or other relevant performance measures.
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To qualify under the standards set by ASIC, potential new RMs will be assessed on the basis of their:

Qualifications and skills;

Experience with, and knowledge of the section of the business they are responsible for;

Understanding of our obligations under the AFS Licence, and also of all relevant laws, regulations,
standards, codes and policies which impact on the financial services,

Being able to demonstrate good fame and character.
6.
How do RMs perform their obligations?
See Process Map attached as Annexure A for overview of the obligations of our RMs.
RMs should be copied in on all key reports relating to, or impacting on, their specific area of responsibility
within the Company.
For example, the RM responsible for the management of breach identification and reporting would be
required to:
(a)
Review the breach and incident reports and registers to identify significant and/or systemic
recurring or systemic incidents;
(b)
Review reported breaches of the Corporations Act and the AFS Licence conditions to identify
significant and/any systemic or recurring incidents.
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7.
Summary of Attachments
Annexure A
Process Map – Responsible Manager Procedure (attached)
Annexure B
Appointment of Responsible Manager Procedure
Annexure C
Appointment of Responsible Manager Form
Annexure D
Ongoing Assessment of a Responsible Manager Procedure
Annexure E
Responsible Manager Assessment Plan Report
Annexure F
Good Fame and Character Assessment
Annexure G
Register of Responsible Managers
Annexure H
Responsible Manager Training Plan
Annexure I
Personal Statement
Annexure J
Organisational Competence
Annexure K
Procedure to Notify ASIC: Amend Details of a Responsible Manager
Annexure L
Procedure to Notify ASIC: Adding or Removing a Responsible Manager
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ANNEXURE A
Process Map – Responsible Manager Procedure
ANNEXURE B
Appointment of Responsible Manager Procedure
RESOURCES REQUIRED
1.
Resume/CV of nominated Responsible Manager;
2.
Original academic transcripts or certified copies;
3.
Criminal History Check/ Police Check (not more than 12 months old);
4.
Bankruptcy Check (not more than 12 months old);
5.
Two pro-forma business references;
6.
A signed personal statement; and
7.
ASIC Register of Banned & Disqualified Persons check.
PROCEDURE
Using the required resources, complete the Appointment of Responsible Manager Form.
Provided all sections are adequately addressed, approval to be given. If there are any shortfalls then a plan
to address these should be implemented prior to approval being provided.
Once the approval has been granted the relevant details should be transposed to the Register of
Responsible Managers Form.
The Resume / CV provided must provide full details of:

Qualifications;

Membership of relevant professional associations;

The financial services and financial products provided;

Details of previous employer and length of service;

The title, role and duties performed;

Any authorisation(s) held;

The type of client services provided;

Any application form for a Criminal History Check can be obtained from the Federal Police website
www.afp.gov.au.

Bankruptcy check can be applied for from information brokers listed on www.itsa.gov.au.
The prescribed business reference format is contained in the AFS Licensing Kit. See www.asic.gov.au
>Financial advice & services > Licensing > AFS licensing kit- Part 2 (RG 2 Appendix 1)
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ANNEXURE C
Appointment of Responsible Manager form
NAME:
ORGANISATIONAL EXPERTISE:
1.
Review the detailed CV provided by the prospective Responsible Manager.
2.
Original certificates and academic transcripts should be cited as evidence.
3.
Compare the prospective Responsible Manager’s knowledge and skills against the financial
service authorisation
QUALIFICATIONS:
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
EXPERIENCE:
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
(a) Detail Number of years
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
(b) List relevant Industry Memberships / Associations
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
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OPTIONS FOR
DEMONSTRATING
KNOWLEDGE &
SKILLS
KNOWLEDGE
SKILLS/EXPERIENCE
OPTION
SATISFIED
1
Widely accepted and relevant industry
standards
At least 3 years’ experience
over the past 5 years
2
Individual assessment (or recognition
of current competency) by an
authorised assessor as having relevant
knowledge equivalent to a diploma
At least 5 years’ experience
over the past 8 years
3
Relevant university degree and
relevant short industry course listed on
the ASIC training register
At least 3 years’ experience
over the past 5 years
4
A qualification which is the equivalent
of a diploma specifically relevant to the
particular industry and/ or product
At least 3 years’ experience
over the past 5 years
5
Provide a detailed submission to
satisfy ASIC that the responsible
manager nominated has the necessary
skills and experience
Experience history over the
past 10 years (or
thereabouts)
GOOD FAME AND CHARACTER ASSESSMENT
Instructions:
(a) Are copies of all required documents attached?
Yes
No
(b) Are police checks and bankruptcy checks less than 12 months old?
Yes
No
(c) Do business references follow the ASIC pro forma?
Yes
No
(d) Has a criminal history check/police check been completed?
Yes
No
(e) Has a bankruptcy check been completed?
Yes
No
(f) Has the ASIC Register of Banned & Disqualified Persons check been
completed?
Yes
No
(g) Have two business references been provided?
Yes
No
(h) Has a personal statement been signed?
Yes
No
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Please provide details if necessary:
The applicant for the role of responsible manager meets the organizational
expertise and good fame and character requirements
Yes
No
Approved by:
Signed:
Dated:
Responsible Managers - Procedures | June 2014
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ANNEXURE D
Ongoing Assessment of a Responsible Manager Procedure
RESOURCES REQUIRED

Criminal History Check / Police Check (not more than 12 months old);

Bankruptcy Check (not more than 12 months old);

A signed Personal Statement; and

Details pertaining to training undertaken over the preceding twelve months.
ANNUAL PROCEDURE
Company to:

Consider the results of the above checks in conjunction with the duly completed Responsible
Manager Plan Assessment Report;

Provided all sections are adequately addressed – approval to be given. If there are any shortfalls
then a plan to address these should be implemented prior to approval being provided; and

Once approval has been given the details should be transposed to the Register of Responsible
Managers Form. This register should be updated every 12 months.
NOTE:
An application form for a Criminal History Check can be obtained from the Federal Police website
www.afp.gov.au
A Bankruptcy Check can be applied for from information brokers listed on www.itsa.gov.au
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ANNEXURE E
Annual Responsible Manager Plan Assessment Report
NAME:
Summary of the responsible managers’ activities / duties:
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
Provide details of relevant training undertaken over the previous twelve months:
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
Note: Copy of training register may be attached
Has the training been sufficient to maintain knowledge and skills requirements?
Yes
No
Provide details:
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
Are there any shortfalls that need to be addressed?
Yes
No
If yes, provide details of the shortfalls/’gaps’ as well as the training and/or courses needed to
address the identified shortfalls/gaps.
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
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Provide details of the specific training objectives for the next twelve months:
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
Assessed by:
Signed:
Dated:
Approved by:
Signed:
Dated:
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ANNEXURE F
Good Fame and Character Assessment
We will conduct good fame and character checks on an annual basis.
INSTRUCTIONS:
(a) Attach copies of all required documents
Yes
No
(b) Police checks and bankruptcy checks must be less than 12 months old
Yes
No
(c) Personal Statement signed
Yes
No
(d) Criminal History Check / Police Check
Yes
No
(e) Bankruptcy Check
Yes
No
(f) ASIC Register of Banned & Disqualified check
Yes
No
Yes
No
Provide details if necessary:
The Responsible Manager has maintained and updated their expertise and meets
the good fame and character requirements
Approved by:
Signed:
Dated:
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ANNEXURE G
Register of Responsible Managers
Name of
Responsible
Manager
Date
Appointed
Key Person
Yes/No
Responsible Managers - Procedures | June 2014
Alternative
Knowledge &
Skills
Good Fame &
Character
Check
Training
Requirements
Date
Removed
Page | 10
ANNEXURE H
Sample Responsible Manager Training Plan**
NAME OF RESPONSIBLE MANAGER:
AREAS OF RESPONSIBILITY:
Knowledge Area
Requirement
Details of Training
Comments
**Training Plans for RMs will be set, administered and tracked via the KAPLAN Ontrack training
system.
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ANNEXURE I
Personal Statement
I,
declare that during the previous 10 year period that I have not been:
1.
refused the right, or been restricted in the right, to carry on any trade, business or profession for which
a licence, registration or other authority is required by law;
2.
suspended from membership of, or disciplined by, any securities, stock, futures, commodities or other
exchange of which I have been a member;
3.
refused membership of any securities, stock, futures, commodities or other exchange;
4.
removed from membership of, or disciplined by, any professional body;
5.
carried on business under any name other than the name or names shown in this application;
6.
known by any name or names other than those shown in this Personal Statement;
7.
the subject of any findings, judgments or current proceedings, including findings, in relation to fraud,
misrepresentation or dishonesty, in any administrative, civil or criminal proceedings in any country;
8.
declared bankrupt or insolvent under any administration;
9.
engaged in the management of any companies/businesses that have had an external administrator
appointed;
10.
engaged in the management of any companies/businesses that were declared insolvent;
11.
engaged in the management of any companies/businesses that were declared the equivalent of
insolvent under the law of an external territory or country other than Australia;
12.
engaged in the management of any company that has had an instrument of approval under the
Superannuation Industry (Supervision) Act 1993 (Cth) revoked; and
13.
engaged in the management of any companies/businesses that have had a Corporations Act 2001
(Cth) (or previous corresponding law) licence or Insurance Agents and Brokers Act 1984 (Cth)
registration revoked or suspended.
Signed:
Dated:
____/____/____
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ANNEXURE J
Review of the Organisational Competence
Date
Change to our business
For example a change in our
AFSL business activities
may result in a need to
replace a key person or
responsible manager, etc.
Have we maintained our
organisational
competence?
Reviewed by
Board Approval
Required
(Required action or
comments)
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ANNEXURE K
Procedure to notify ASIC: Amend details of a Responsible Manager
The Company may be required to amend details of a Responsible Manager from time to time. For example,
this may be due to the name of the Responsible Manager changing.
The Company must undertake the following in order to amend the details of a Responsible Manager:

Upon notification by the Responsible Manager of the request for the change, the Register of
Responsible Managers must be amended for record purposes; and

The Company is to complete and submit a form FS20 to ASIC within 10 business days from
change in details.
The relevant sections of Form FS20 must be completed and lodged with ASIC within 10 business days of
any change occurring. The most efficient way to complete and lodge Form FS20 is online via the portal.
Alternatively, download and print a paper copy of Form FS20, This material can then be lodged by mail or
in person.
It is the responsibility of the Company to undertake this procedure.
Methods of lodging Form FS20
(a) Lodging by mail
Mail Form FS20 to:
Australian Securities & Investments Commission
FS Licensing, Regulation Directorate
GPO Box 9827
Melbourne VIC 3001
(b) Lodging in person
Deliver Form FS20 to the nearest ASIC Service Centre.
Lodgement Fees
There is no fee if Form FS20 is lodged within 10 business days.
A late fee applies after 10 business days. See ASIC website for details.
The fee can be paid by phone, mail or in person.
Licensees lodging electronically will be able to print an invoice showing any fee payable.
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ANNEXURE L
Procedure to notify ASIC: Adding or removing a Responsible
Manager
The Company has an ongoing obligation to formally notify ASIC when changes any of its Responsible
Managers. This means we must tell ASIC when it adds or removes any of its Responsible Managers. For
example, we may need to add or remove a responsible manager if:

The business changes (e.g. it expands to cover new services or products, or the roles of people
within the business change); or

A Responsible Manager leaves our business or is no longer involved in significant day-to-day
decisions about our business.
Where the outgoing Responsible Manager is named on the AFS licence as a key person, the Company
must apply to vary the key person conditions on its AFS licence.
Adding a Responsible Manager
The Company may be required to add a Responsible Manager from time to time.
The relevant sections of Form FS20 must be lodged with ASIC within 10 business days of any change
occurring. The most efficient way to complete and lodge Form FS20 is online via the portal. Alternatively,
download and print a paper copy of Form FS20. This material can then be lodged by mail or in person.
When adding a Responsible Manager, the following core proofs must be lodged in support of Form FS20:
(a)
Statement of Personal Information, including certified copies of relevant qualification certificates;
(b)
Certified copy of a Criminal History check;
(c)
Certified copy of a Bankruptcy check;
(d)
Certified copy of two business references; and
(e)
Submission on Responsible Manager’s Competence (for Option 5 only). (See page 8 of this
Procedure for details).
These proofs are explained in detail in Section E of Part 2 of the AFS Licensing Kit (“RG 2”).
Importantly, ASIC needs to receive these core proofs within 20 business days of submitting Form FS20
online. If ASIC do not receive them all within this time frame, our online form will be rejected at the prelodgement stage.
Accordingly, the Company must undertake the following in order to add a Responsible Manager:

The Register of Responsible Managers must be amended to add the Responsible Manager for
record purposes;
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
Form FS20 must be completed and submitted to ASIC within 10 business days from the actual
change in details and submit the respective core proofs within 20 business days of submitting
Form FS20 online; and

A review of the organisational competence must be undertaken.
Removing a Responsible Manager
The Company may be required to remove a Responsible Manager from time to time, for example when a
Responsible Manager resigns.
The relevant sections of Form FS20 must be completed and lodged with ASIC within 10 business days of
any change occurring. The most efficient way to complete and lodge Form FS20 is online via the Licensee
portal. Alternatively, download and print a paper copy of Form FS20. This material can then be lodged by
mail or in person.
The Company must undertake the following in order to remove a Responsible Manager:

The Register of Responsible Managers must be amended to remove the Responsible Manager
for record purposes;

You must complete and submit a Form FS20 to ASIC within 10 business days from change in
details; and

A review of the organisational competence must be undertaken.
It is the responsibility of the Company to undertake this procedure.
Method of lodging Form FS20 and other documents
(a) Lodging by mail
Mail Form FS20 to:
Australian Securities & Investments Commission
FS Licensing, Regulation Directorate
GPO Box 9827
Melbourne VIC 3001
(b) Lodging in person
Deliver Form FS20 to your local ASIC service Centre.
Lodgement Fees
There is no fee if Form FS20 is lodged within 10 business days.
A late fee applies after 10 business days. See ASIC website for details.
The fee can be paid by phone, mail or in person.
Licensees lodging electronically will be able to print an invoice showing any fee payable.
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