A Detailed Explanation of the Authorised Representative (AR) in Australian ASIC Regulation | A Complete Analysis of the Authorised Representative System

1. What is an AR (Authorised Representative)?

In Australia, the financial services market is regulated by the Australian Securities and Investments Commission (ASIC) . Any company or individual providing financial services to clients must possess regulatory compliance qualifications .

Among them, one of the common modes is AR (Authorised Representative) :

• AR does not directly hold an AFSL (Australian Financial Services Licence) issued by ASIC;

• Instead, they sign a formal authorization agreement with an AFSL licensed company and conduct business under its license;

• AR will also have a registration record in the ASIC system, which customers can publicly query.

2. The Legal Status of AR

AR is a legal entity within the Australian regulatory system, but its legitimacy comes from:

1. Must have a valid AFSL authoriser ;

2. Must be registered as Current on the ASIC Professional Registers ;

3. Business must be conducted within the scope of authorization and must not exceed the contractual agreement.

In other words, AR = Legal, but not Independent .

III. AR Permissions and Restrictions

✅ Permissions

• Can provide financial advice, education, promotion, customer referral and other services within the scope of authorization;

• You can use AFSL licensed companies as compliance endorsement;

• Can appear on the ASIC published register of authorised representatives .

❌ Limitations

• Unable to independently manage client funds;

• Do not have the same independent status as AFSL licensees;

• The ultimate responsibility for any violation lies with the AFSL licensee;

• The scope of business is limited by the contract (for example, only investment advice can be provided, and derivatives cannot be sold).

4. The difference between AR and AFSL

5. Typical Application Scenarios of AR

1. Independent financial advisor team
   No funds or conditions to apply for AFSL → Legally conduct business through AR authorization.

2. Investment education platform
   Focusing on financial training and promotion → Utilizing AR model for compliant operation.

3. IB (Introducing Broker)
   Direct traffic and introduce clients to brokerage firms → Obtain legal identity through AR authorization.

6. How to check whether a company/individual is an AR?

👉 Official portal: ASIC Professional Registers

step:

1. Open ASIC Professional Registers

2. Select Authorised Representatives in the search type

3. Enter company name or personal name

4. Check:

• Whether the status is Current

• AFSL licensee

• Authorization scope and start and end dates

7. Risks that investors need to pay attention to

1. AR is not an independent licensee and its compliance risks are dependent on AFSL.

2. Funds must be kept in a trust account supervised by AFSL , and AR has no right to manage them independently.

3. Black platforms often pretend to be AFSL or AR , but no records can be found in the ASIC system.

4. Some ARs have a status of Ceased , which means they are no longer valid.

8. Conclusion

• AR (Authorised Representative) is an important part of the ASIC regulatory system. It is legal but not independent.

• It is suitable for individual consultants, small education platforms, IBs, etc. to enter the market in a low-cost and compliant manner.

• Investors must confirm its legality and validity through the ASIC official registry.

• In terms of risk control, it is recommended to give priority to AFSL licensed companies and be cautious about institutions that are only AR