FNS50217 | FNSFMK505 Comply with Financial Services Regulation and Industry Codes of Practice
Trainer’s Guide | V 2.0 | Apr 2018
Assessment Task 1: Research: AFS Compliance – Regulatory Reforms
Assessment Task Research: AFS Compliance – Regulatory Reforms
Schedule TBA
Outcomes Assessed
Performance Criteria:
1.1, 1.2, 1.3, 1.4, 2.1, 2.2, 2.3
Addresses some elements of required skills and knowledge
as shown in the Assessment Matrix
Description:
The provision of financial services and products is regulated in Australia by Chapter 7 of the Corporations Act
2001 (Cth) (Corporations Act). The regulatory framework creates a uniform licensing (Australian Financial
Services (AFS) licensing) and disclosure regime for financial services and products. The Australian Securities
and Investment Commission (ASIC) is responsible for AFS licensing and supervision of financial services
providers, consumer protection in the financial services industry and for enforcement of the financial services
laws in general.
The Corporations Amendment (Professional Standards of Financial Advisers) Act 2017 commenced on 15
March 2017. It introduced several measures in the Corporations Act 2001 (Corporations Act) to raise the
education, training and ethical standards of financial advisers providing personal advice to retail clients on
more complex financial products.
In this assessment task, you will be required to research the licensing and compliance requirements for an
Australian Financial Service (AFS) license, and analyse the changes made under the reform.
Context
For the purpose of providing an organisational and work context, assume that you work as an Investment
Intern at one of the financial management firms in the city. You are completing your internship at the firm and
looking forward to applying for a license as a financial service provider. There are four other interns at the firm
same as you, and any changes in the regulatory requirements for licensing will also affect them. Accordingly,
assume that your Manager (traine
assessor roleplay) has asked you to conduct due research, identify the
elevant documents and analyse their impact on the requirements for financial advisors and firm’s obligations.
The policy on implementing regulatory changes at the firm
oadly require that a file review be conducted on
the roles affected by the changes.
Any changes in the regulatory and licensing requirements must be noted and communicated to the
Manager (traine
assessor roleplay) as soon as practicable;
Source and reference documents (e.g. updated standards, licensing requirements, training
equirements etc.) must be identified and downloaded for records;
Roles relevant to, or being impact by, the regulatory changes must be identified, and the Position
Description reviewed and updated
More information can be found at: http:
asic.gov.au
egulatory-resources/financial-services/professional-
standards-for-financial-advisers-reforms/
Task
http:
asic.gov.au
egulatory-resources/financial-services/professional-standards-for-financial-advisers-reforms
http:
asic.gov.au
egulatory-resources/financial-services/professional-standards-for-financial-advisers-reforms
FNS50217 | FNSFMK505 Comply with Financial Services Regulation and Industry Codes of Practice
Trainer’s Guide | V 2.0 | Apr 2018
Page 2 of 17
Accordingly, research, gather and organise the following information in relation to an Australian Financial
Service (AFS) license;
Reference documentation and source
Obligations for an AFS licensee
An analysis of the new changes under the reform
Meeting the general obligations as an AFS licensee under the new reforms
Training of financial product advisers
Financial product advisers: Conduct and disclosure
Relevant legislation, regulations, and codes impacting financial services industry
Strategies for professional development and knowledge of legislative changes and legislative and
egulatory sources of information
You may use ASIC’s AFS regulatory guides as references. Your task is to provide a summary of key sections of
these guides based on your research and understanding.
Ensure that you cite all external sources to avoid the risk of plagiarism. Collect and summarise the information
in a structured word-processed document with appropriate headings and/or sub-headings. Where applicable,
identify and provide a
ief explanation of applicable laws, regulations and/or codes of conducts.
Assessment Criteria
The following assessment criteria will be used for marking this assessment task. Ensure that you have
addressed all of the criteria in your work.
The document shows relevant research in gathering, reading and synthesising the required
information
Refe
ed to The Corporations Amendment (Professional Standards of Financial Advisers) Act 2017 to
eview the reforms
An analysis of the changes is provided in the view of existing licensee requirements
Referenced relevant ASIC regulatory guides for respective subject areas
Demonstrated an overall understanding of the component of the regulatory framework around
Australian financial services
Made references to relevant laws, regulations and/or codes of conduct where applicable
Described key obligations as an AFS licensee based on ASIC requirements under the legislation and
the reform
Researched and complied information on relevant legislations, regulations, and codes relevant to the
financial services industry and information sources
Suggested strategies for professional development for financial services professionals that help keep
a
east of changing legislative and secto
industry environment
Analysed an appropriate regulatory guide to articulate and summarise general obligations as an AFS
licensee
Analysed an appropriate regulatory guide to articulate and summarise the needs for Training of
financial product advisers as an AFS licensee
Analysed an appropriate regulatory guide to articulate and summarise the responsibilities and
obligations for conduct and disclosure as an AFS licensee
All the main areas of respective regulatory guides are covered and summarised without losing their
original context and meaning
Organised the information in a logical structure and format that can be easily communicated to
another person for information and reference
FNS50217 | FNSFMK505 Comply with Financial Services Regulation and Industry Codes of Practice
Trainer’s Guide | V 2.0 | Apr 2018
Page 3 of 17
Submission Guidelines
Submit:
AFS Obligations and compliance summary document (Word processed)
Copies of relevant legislations, regulations and codes (relevant parts)
Electronic versions of the assessment task and email/electronic submission a
angements are at further
discretion of the traine
assessor.
FNS50217 | FNSFMK505 Comply with Financial Services Regulation and Industry Codes of Practice
Trainer’s Guide | V 2.0 | Apr 2018
Page 4 of 17
Assessment Task 2: Develop and Present an Internal Monitoring Program
Assessment Task
Develop and Present an Internal Monitoring
Program
Schedule TBA
Outcomes Assessed
Performance Criteria:
1.1, 1.5, 2.1, 2.2, 2.3, 2.4, 3.3
Addresses some elements of required skills and knowledge
as shown in the Assessment Matrix
Description:
This task builds on the research conducted on The Corporations Amendment (Professional Standards of
Financial Advisers) Act 2017 reforms for financial services advisors. As in the previous task, you will continue to
use the same organisational profile and your given role in this task. Your traine
manager will play the role of
you Manager for the purpose of this task.
the Auditing and Assurance Standards Board (AUASB) prepares Auditing and Assurance Guidance Statement
(AGS) to provide general guidance to auditors on various matters relating to the audit requirements for
Australian financial services (AFS) licensees in accordance with the requirements of the Corporations
Act 2001 (the Corporations Act). Under the Corporations Act, the responsibilities of an AFS licensee are
imposed by ASIC Policy Statement RG166 Licensing: Financial requirements.
They can be found at;
AUASB – Auditing and Assurance Guidance Statement:
http:
www.auasb.gov.au/admin/file/content102/c3/AGS1068_10-04b.pdf
ASIC: RG166: http:
asic.gov.au
egulatory-resources/find-a-document
egulatory-guides
g-166-licensing-
financial-requirements/
With reference to the above, assume that your firm has asked to develop and implement an audit and
compliance monitoring program. The implementation will be in form of an information session (presentation)
delivered to the class audience playing the role of the organisational stakeholders. Your traine
assessor will
organise the session.
Task
Your Manager (traine
assessor roleplay) has asked you to undertake the following activities in view of the
changes in the regulations (Assessment Task 1) and audit and assurance requirements under the above
egulatory provisions. Accordingly;
Implications of changes in the regulatory requirements on the role of – FINANCIAL SERVICES ADVISOR
Process for obtaining the license and maintaining regulatory compliance;
Regulatory and policy implications on the firm to ensure that its advisors stay compliant;
Develop a step-by-step process for monitoring compliance at the firm supported by an internal
auditing process in accordance with the AGS;
http:
www.auasb.gov.au/admin/file/content102/c3/AGS1068_10-04b.pdf
http:
asic.gov.au
egulatory-resources/find-a-document
egulatory-guides
g-166-licensing-financial-requirements
http:
asic.gov.au
egulatory-resources/find-a-document
egulatory-guides
g-166-licensing-financial-requirements
FNS50217 | FNSFMK505 Comply with Financial Services Regulation and Industry Codes of Practice
Trainer’s Guide | V 2.0 | Apr 2018
Page 5 of 17
Types of record to be maintained for on-going compliance
You will need to structure and present the above information in form of an official/formal report. As a
principle, a report concentrates on facts, and sets outs and analyses a situation or a problem followed by
ecommendations. A report typically covers;
A description and overview of the regulatory changes;
A
ief Interpretation of the significance of these changes (your own analysis supported by facts and
other reports/publications);
An evaluation of the facts or the results of your research;
Discussion of the likely impact and audit and compliance procedures;
Specific responsibilities of the firm, advisors and other employees; and
Conclusions
While there is no word limit for the report, it is expected that the content will sufficiently address the above
equirements and demonstrate appropriate research to justify the recommendations. As a guide, each of the
above sections should not exceed one single-sided A4 sheet.
Presentation
Once completed, present the report to the class using PowerPoint, assuming the class audience as
organisational stakeholders. Allow for questions and answers and include a summary of audience feedback as
an appendix/annexure of your report.
Presentation Duration: 10 minutes
Assessment Criteria
The following assessment criteria will be used for marking this assessment task. Ensure that you have
addressed all of the criteria in your work.
Used an appropriate and approved organisational context for this task (Ref Assessment Task 1) and
followed the policy requirements
Maintained the given role and undertook consultation as required
Was able to access, identify and understand the extent of regulatory changes and the impact on
licensing