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Changing Responsible Manager Details

How to add or change a responsible manager to a brokerage

AFS licensees should notify ASIC of any changes to their nominated responsible manager within 10 business days of any change occurring. As well as updating your details in ASIC’s register of AFS licensees, ASIC will also use the information to assess whether the changes affect the brokerage’s organisational competency.

What details can be changed using form FS20?

Use form FS20 to:

  • Change the principal business address;
  • Change the address for service of notices;
  • Add or remove a business name;
  • Change details of your contact person;
  • Add or remove a nominated responsible manager;
  • Amend details of a nominated responsible manager;
  • Change the details of your external dispute resolution scheme;
  • Change details of your professional indemnity insurance;
  • Change details of your security bond; or
  • Apply to discharge your security bond.

Requirements for nominated responsible managers

Nominated responsible managers are the people licensees rely on for organisational competency. Before identifying a new nominated responsible manager, you need to ensure that the person concerned:

  • Is directly responsible for significant day-to-day business decisions about the ongoing provision of financial services;
  • Is of good fame and character; and
  • Has the qualifications and experience to meet one of the alternatives in paragraph [RG105.43] Regulatory Guide 105 Licensing Organisational Competence.

In assessing the relevance of their experience, you need to consider whether they have provided the financial services for which you are authorised, or have performed a role that required them to directly monitor how the financial services are provided in relation to each financial product. This is to ensure that they have an adequate understanding of how the financial services are provided so that you can ensure your ongoing compliance with any obligations under your licence and the law.

Find out more about nominated responsible officers and organisational competency obligations in:

    Regulatory Guide 105 Licensing Organisational Competence.

How do you notify ASIC of changes to your nominated responsible managers?

Complete the relevant sections of form FS20 and lodge it with ASIC within 10 business days of any change occurring. The most efficient way to complete and lodge form FS20 is online via the Licensees portal; or download and print a paper copy of form FS20 and lodge it by mail or in person.

ASIC will consider the impact on your business of changes to your nominated responsible managers, but ASIC will not be able to do this until it receives all supporting proof documents.

Changing or removing a key person condition

If you are adding a new responsible manager with the intention of changing or removing a key person condition that has been imposed, you must also complete form FS03 to vary your licence.

Proof documents you must send ASIC

When adding a nominated responsible manager you must lodge the following proofs to support form FS20:

  • Statement of personal information, including certified copies of relevant qualification certificates;
  • Certified copy of a criminal history check;
  • Certified copy of a bankruptcy check;
  • Certified copies of two business references;
  • Submission on Responsible Manager’s Expertise (for Alternative 5 only).

ASIC needs to receive these proofs within 20 business days of submitting the online form FS20. If ASIC doesn't receive them all within this timeframe, the online form will be rejected at the pre-lodgement stage.

Statement of personal information

The statement of personal information is an attachment to form FS20. Print off a copy when you either download a paper form FS20 or print off a copy of your online form, as requested by the system.

All new nominated responsible mangers must answer all of the questions in the statement of personal information and it must be signed and witnessed. Part B of the statement of personal information requires you to provide, for each new nominated responsible manager, the details of the educational qualifications relevant to the types of financial services you are authorised to provide under your AFS licence.

You must also lodge all of the nominated responsible manager's relevant qualification certificates. If a nominated responsible manager has relevant foreign university qualifications, they can apply to Australian Education International – National Office of Overseas Skills Recognition (AEI–NOOSR) for individual verification of their overseas qualifications. Alternatively, you can lodge a copy of the relevant AEI–NOOSR Country Education Profile and a submission setting out the nominated responsible manager's relevant overseas qualification(s) and explaining how it is relevant to the alternative selected under [RG105] and/or Regulatory Guide 104 Licensing: Meeting the general obligations.

Criminal history check, bankruptcy check and business references

As an annexure to the statement of personal information, you must also provide a criminal history check and bankruptcy check for each new nominated responsible manager, which must be no more than 12 months old, as well as two business references in the format set out in the Appendix to Part E (Core Proofs) of Part 2 of the AFS Licensing Kit. If you experience delays in obtaining the criminal history check, you should lodge form FS20 showing evidence that you have applied for a criminal history check.

Submission on Responsible Officer’s Expertise

If you are relying on Option 5 in Regulatory Statement 105 (i.e. other demonstration of knowledge and skills) to show how a nominated responsible manager meets the expertise standards for their role, you must lodge the proof Submission on Responsible Manager's Expertise. See Part E (Core Proofs) in Part 2 of the AFS Licensing Kit for more information about each of these proofs.

Where to lodge your proofs

Lodging by mail

Mail your proof documents (and your form FS20, if you haven’t applied online) to:
Australian Securities & Investments Commission
FS Licensing, Regulation Directorate
GPO Box 9827
Melbourne VIC 3001

Lodging in person

You can deliver your proof documents (and your form FS20, if you haven’t applied online) to your local ASIC Service Centre.

Lodgement fees

There is no fee if you lodge your form FS20 and proof documents within 10 business days.

The following late fees apply after 10 business days:
Up to 1 month late - $65
More than 1 month - $270

The fee can be paid by phone, mail or in person.
Licensees lodging electronically will be able to print an invoice showing any fee payable.

More information

Checklists

Check

 

Checklist for number and job descriptions of RMs
 

Updated organisational chart showing:

  • functions each RM manages
  • reporting lines
  • any functions outsourced
  • % of time each RM spends on advising or dealing activities in your business and/or that of a related body
 

Any changes in business and management structure from the previous review period are noted
 

Records on file of any notifications to ASIC re changes in RMs:

  • If you have a partnership: check you have registered details of all partners and indicated those acting as RMs
  • If you are a small business with a Key Person licence condition:
    • Check you have notified ASIC if a key person has left the business and informed it of the actions taken to replace RM.

Ongoing RM training

Check

Checklist for Ongoing RM training
 

Annual training & development program for each RM on file

 

Changes to program noted
 

Internal registers of training participation on file.

Recruitment process for new RMs

Check steps appropriate steps undertaken prior to engagement.

Check

Checklist for appointing new RMs
 

Your have ensured your new RM is:

  • A natural person; and either:
    • A director, partner, senior staff member of your business or a holding company or related company; or
    • From an external organisation eg, lawyer, accountant, IT provider.
 

The new person is actually in an RM role ie. responsible for decisions about how your business operates relating to your licensed services or compliance arrangements.
 

Your new RM is qualified and experienced for their role

  • Holds a relevant qualification covering the compliance area they are responsible for; and
  • At least three years relevant industry experience out of the last five in the role.
 

Qualification held by the new RM is listed on the ASIC Training Register
 

Good fame and character check completed prior to engagement of the RM including:

  • Police checks; and
  • Referee reports
 

Package of current information about new RM sent to ASIC:

  • Federal police check – not more than 12 months old:
  • An ITSA bankruptcy check – not more than 12 months old
  • Resume – not more than 12 months old
  • Two business references – not more than six months old
  • Details of educational qualifications and experience
  • Signed and witnessed declaration by each RM agreeing to be a responsible officer.