What is an AFSL for Hire?

An AFS Licensee for Hire is a company that holds an Australian Financial Services (AFS) Licence, and grants permission to external companies and organisations to come under the umbrella of its AFS Licence in order to provide specific financial services to their clients.

True Oak Investments is an AFS Licensee for Hire.

What is a Corporate Authorised Representative?

A Corporate Authorised Representative, generally known as a CAR, is a company or organisation that has been granted permission by an AFS Licensee for Hire like True Oak Investments Pty Ltd (True Oak), to use True Oak’s Australian Financial Services (AFS) Licence to provide financial services to its clients.

The CAR essentially comes under the umbrella of True Oak’s AFS Licence and is authorised to provide specific financial services that will be outlined in the CAR Agreement that we jointly sign. These services may include providing advice on, and/or issuing or dealing in, specific financial products including managed investment schemes and carbon credits.

As the AFS Licensee, we’re required to register the CAR on ASIC’s Authorised Representatives Register. When we do this, the CAR will be provided with an Authorised Representative Number, which can be used by the public to see which AFS Licensee the CAR is acting on behalf of.

True Oak, as the AFS Licensee, is responsible for the actions of the CAR that are related to the provision of financial services. It’s our responsibility to ensure that the CAR complies with all relevant regulations and licensing requirements.

Operating as a CAR means that you can focus on servicing your clients and building your brand, whilst we’re focused on the ongoing compliance activities related to holding an AFSL.

What are a CAR's obligations?

A Corporate Authorised Representative (CAR) must:

  1. Comply with the AFS Licensee's obligations: The CAR must comply with the obligations set out by the AFS Licensee in the CAR Agreement. The obligations generally cover conduct, disclosure and record-keeping requirements.

  2. Comply with relevant laws and regulations: The CAR must comply with the relevant laws and regulations, which apply to the provision of financial services, the collection and verification of clients' identity and the collection, use and storage of clients' personal information.

  3. Maintain appropriate training and competence: The CAR must ensure that each of their Sub-Authorised Representatives who provide financial services under the terms of the CAR Agreement are appropriately trained and competent to provide those services.

  4. Maintain appropriate insurance cover: The CAR must maintain appropriate professional indemnity insurance cover to protect clients against financial loss in the event of any breach of their obligations.

  5. Act in the best interests of clients: The CAR must act in the best interests of their clients.

  6. Provide clear and accurate information: The CAR must provide clear and accurate information to clients about the financial services being provided, including fees and charges, risks and benefits, and any conflicts of interest.

  7. Maintain appropriate systems and controls: The CAR must have appropriate systems and controls in place to ensure compliance with their obligations and to manage any risks associated with the provision of financial services.

What is an Authorised Representative?

An Authorised Representative is an individual officer or employee of the Corporate Authorised Representative (CAR) that will be providing the specific financial services outlined in the CAR Agreement to clients.

True Oak asks each CAR to nominate its Authorised Representatives. As the AFS Licensee, we’re required to register these individuals on ASIC’s Authorised Representatives Register. When we do this, each individual will be provided with their own Authorised Representative Number, which can be used by the public to see which CAR, and which AFS Licensee, the individual is acting on behalf of.

The CAR is responsible for the actions of the Authorised Representatives that are related to the provision of financial services. True Oak works with the CAR to ensure that its Authorised Representatives comply with all relevant regulations and licensing requirements.

Does my company need to become a Corporate Authorised Representative?

If your company or organisation wants to provide financial services to other organisations (wholesale clients) or individuals (retail clients), but you’re not ready to apply for your own Australian Financial Services (AFS) Licence, you should consider becoming a Corporate Authorised Representative of an AFS Licensee for Hire, like True Oak.

There are currently ten financial services which require access to an AFSL:

  1. Providing financial product advice, personal advice or general advice. This is the selling part of your business.

  2. Dealing in financial products. This includes applying for, issuing, varying, or disposing of a financial product. This is the transaction part of your business.

  3. Operating a registered managed investment scheme.

  4. Operating the business and conducting the affairs of a corporate collective investment vehicle (CCIV).

  5. Making a market in a financial product.

  6. Providing a crowdfunding service.

  7. Providing custodial or depository services. You may need this if you hold financial products on behalf of someone else.

  8. Providing traditional trustee company services.

  9. Provide a claims handling and settling service.

  10. Providing a superannuation trustee service.

If your company wants to provide any of these financial services in respect of the following financial products, you’ll need access to an appropriate AFSL:

  • Australian carbon credit units (ACCUs) and eligible international emissions units (EIEUs)

  • Deposit and payment products

  • Derivatives

  • Foreign exchange contracts

  • General insurance

  • Government debentures, stocks or bonds

  • Life insurance products

  • Managed investment schemes

  • Margin lending facilities

  • Miscellaneous financial facilities

  • Retirement savings accounts

  • Securities

  • Superannuation

Not all AFS Licensees for Hire will offer access to all of these financial services, in respect of all of these financial products. Do your research to find an AFS Licensee for Hire that holds an AFSL that suits your needs. For the financial services authorisations that True Oak can offer, see the FAQ below - What are your Financial Services Authorisations?

What are Trustee Services?

To operate a wholesale managed fund, you require a trustee. The role of the trustee is to be responsible for the compliance and governance of the fund, ensuring that it operates in accordance with its trust deed, disclosure documents and the law. The trustee has a duty to ensure that the fund is being managed in the best interests of all unitholders.

A fund trustee is responsible for:

  • Issuing the fund’s offer document (Information Memorandum) and other fund communications.

  • Overseeing the fund manager, investment decisions and fund accounting.

  • Managing external service providers (fund administrator, custodian, registry provider, auditor.)

Is True Oak a Responsible Entity?

No, True Oak Investments is not a Responsible Entity (RE). The scope of our AFS Licence does not include an authorisation to operate a registered scheme. This means we’re unable to help you if you’re looking for a RE for your retail managed fund.

I need coverage under an AFSL whilst I apply for my own AFSL, can you help?

Yes, we’re comfortable welcoming CARs who need access to financial services authorisations whilst they apply for their own AFS Licence. Our CAR Agreements generally carry a minimum term of 12 months. If you terminate the Agreement inside the minimum term because you have obtained your own AFS Licence, you are required pay the Representative Fees payable for the remainder of the minimum term as a condition of leaving.

What are your financial services authorisations?

True Oak Investments holds AFS Licence No. 238184.

Under the conditions of this licence, we’re authorised to provide, to both retail and wholesale clients, general financial product advice on, and dealing (arranging to deal) services in, the following financial products:

  • Australian carbon credit units (ACCUs)

  • Eligible international emissions units (EIEUs)

  • Basic deposit and payment products

  • Derivatives

  • Debentures, stocks and bonds issued by a government

  • Life risk insurance products

  • Interests in managed investment schemes, excluding investor directed portfolio services

  • Securities

  • Superannuation

We’re also authorised to issue, to both retail and wholesale clients, the following financial products:

  • Derivatives

  • Interests in managed investment schemes, excluding investor directed portfolio services

  • Securities

What are your fees?

That's a great question. Contact us directly to discuss.