Do you need an AFSL? Unless you have AFSL experience, it’s not always immediately clear. AFSL requirements and authorisations differ depending on the nature of your financial services, so it’s always sound practice to get AFSL Application assistance from an expert. 

We’ve created this AFSL Application Guide to answer some of the questions we come across in our role in helping clients submit their AFSL applications. 

Please note that this blog does not constitute legal advice. Please download our AFSL Application Guide for additional general information, or contact us for a conversation tailored to your specific business circumstances.

Ques 1. Retail or Wholesale Clients? How does that affect my need for an AFSL?

Ans. Are you providing financial services or products to retail customers, wholesale customers, or both? Both client types will normally require AFSLs unless you are operating under an exception. See our AFSL Application Guide.

Ques 2. What if my financial services clients are overseas? Do I need an AFSL?

Ans. If you operate a financial services business in Australia, regardless of where your clients are located, you will need an AFSL. 

Ques 3. What if you only offer your service or product as a one-off?

Ans. Tricky question — and definitely one worth contacting us to discuss. While you probably don’t need an AFSL when you supply the service or product only once, this is tricky to define. You definitely don’t want to get this one wrong and find yourself operating in breach of the law. 

Ques 4. Will I need an AFSL to talk about financial products or advice on my podcast/blog/newspaper?

Ans. If your publication or podcast is all about financial advice, then yes. If your advice is general in nature and available publicly, then generally no.

Ques 5. I’m providing financial services as a representative of an AFSL licensee. Do I need my own AFSL? 

Ans. No. But you may need authorisation from that licensee.

Ques 6. Do I need an AFSL to provide financial services or products to someone who is an AFSL licensee, or who is exempt from needing an AFSL? 

Ans. No, you won’t need an AFSL. 

Ques 7. What if I refer my clients to AFS Licensees, but don’t offer any other financial services or products?

Ans. If literally all you do is recommend clients to AFS license holders, then no, you do not require an AFSL. But the advice must be entirely limited to a basic referral. 

Ques 8. Do energy retailers need an AFSL?

Ans. Generally, yes. Please refer to our Industry Insights article on this topic.

Ques 9. Do I need an AFSL if I deal in foreign exchange accounts and derivatives on my own behalf?

Ans. This depends on if you deal with these as a significant part of your business. We suggest seeking AFSL application assistance.

Ques 10. I’m a funeral expenses facilities provider. Do I need an AFSL?

Ans. Yes. Exemptions apply if you distribute policies issued by friendly societies. 

AFSL applications are complex. Please download CNM Legal’s AFSL Application Guide to give you an overview of the AFSL process, or contact our team for AFSL application assistance and advice tailored to your business.