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Your Obligations

Acting as a Financial Services Licensee or Representative

The Australian Securities and Investment Commission (ASIC) have advised that under the Corporations Act 2001, Managers are deemed to provide financial services to owners corporations if a Manager talks about insurance, processes insurance claims, seeks quotations for insurance, or does anything with insurance apart from write out the cheque on the instructions of the owners corporation for an insurance premium. 

Therefore, Managers who wish to continue to act for owners corporations in relation to insurance matters must be:

• appointed as an authorised representative of an Australian Financial Services Licensee (Licensee) or a Licensee
• have an updated contract in force with the Licensee
• notify the Licensee as to any cross endorsement when representing two or more Licensees with consent, and 
• have completed the necessary training programmes.

The Australian financial services licence also requires Managers to make certain disclosures, report to ASIC and give owners corporations a written financial services guide.

The penalties for failing to have a licence or authorisation are significant.