Compliance


The Financial Services Reform Act (FSRA)

The Financial Services Reform Act came into force on 11 March 2002 with a two year transition period during which the only mandatory provisions were:

  • Confirmation of transaction provisions.
  • Anti-hawking provisions.
  • Cooling off provisions.

The Act introduces a single licensing and consumer protection regime for financial sales, advice and dealing in financial products, as well as a consistent approach to financial product disclosure. Key aspects are:

  • A uniform approach to the regulation of all financial products.
  • Uniform disclosure obligations when dealing with retail clients.
  • A single licensing framework for all financial service providers.
    (Not every financial service provider will have the same licence or the same conditions on their licence).
  • The imposition of competency, skills, integrity and compliance standards.

Since 11 March 2004, insurance advisers and brokers cannot continue in business except as a holder of an Australian Financial Services Licence, or as an Authorised Representative of an AFS Licensee.

NAS Insurance Brokers obtained an AFS licence in 2003 and chose to operate under the provisions of the licence from 1 November 2003. Our legal compliance system has therefore been operational for several months, placing us in a strong position to assist other general insurance advisers and brokers who are seeking to become Authorised Representatives of an AFS licensee with a robust compliance system.

Key features of the compliance system include:

  • Approval and support of the Board of Directors and Management Team.
  • Adherence to the Australian Standard for Compliance Programs.
  • An extensive set of policies, procedures and forms defining and describing operational aspects of our relationship with clients and Authorised Representatives, as well as our internal operations
  • A Compliance Officer, Broker Services Managers in each State and members of the support staff who assist with, monitor and supervise efficient operation of the system