ASIC’s report outlining decisions on relief applications covering the period 1 October 2014 to 30 January 2015 includes details of relief given in respect of the appointment of AFS licence authorised representatives.

Auto & General Services Pty Ltd is an intermediary which was granted relief to appoint another AFS licensee as an authorised representative for life risk insurance products.

ASIC was satisfied that the risk of consumer confusion about who was responsible for the provision of services was minimised by conditions ensuring adequate disclosure. Further, it considered that consumers remain protected from the risk of loss by a condition that ensures that the intermediary is responsible for the conduct of the authorised representative, as well as a requirement that the authorised licensee hold adequate professional indemnity insurance.

Heritage Bank Limited as the issuer of a non-cash payment facility was granted conditional relief to remove the administrative requirements associated with notifying ASIC of the appointment (and variation) of certain authorised representatives.

The payment facility is issued to customers of two telecommunications providers for use on their mobile phone. The relief ASIC provided deems the telecommunications providers’ distribution networks to be the representatives of the AFS licensee that issues the non-cash payment facility.

ASIC granted the relief because it considered the cost of compliance with the requirement to appoint authorised representatives was unduly burdensome, given the significant size of the distribution networks and the very limited nature of the distributors’ conduct. It considered that the relief involved minimal risks for consumers because the AFS licensee is responsible for the conduct and competence of the distributors in the same way it is responsible for its authorised representatives.