Charitable Organisations

Appropriate AFSL for bodies operating under the group charities exemption?

For bodies offering funds and debentures pursuant to the group charities organisations operating under the ASIC Regulatory Guide 87 exemption, you may still require an AFSL to cover your non cash payment facilities offered in conjunction with your products (which commonly include telephone banking, internet banking, direct deposit facilities etc). The issues involving the application process for such charitable bodies are complex and generally requires professional advice and guidance to identify the appropriate AFSL authorisations and manage the licensing process.

What is the process for applying for an AFSL for bodies operating under the Group Charities exemption?

1. Lodgement of the electronic application on-line with ASIC (hard copy and proofs to be lodged within 20 days of finalising on-line application);

2. Nomination of appropriately experienced and skilled Responsible Managers;

3. Lodgement of the following proofs (together with supporting documentation) with the initial application:

• A5 Business Description
• People proof for each nominated Responsible Manager (this comprises the 2 business references, police check, insolvency check and the Statement of Personal Information)
• B1 Organisational Expertise Table
• B5 Financial Resources (together with financial statements)

4. Lodgement of some or all of the following statements (‘proofs’) will need to be provided within 10 business days of a specific request by ASIC, together with supporting documentation (evidence, policies & procedure manual, certain disclosure documentation etc):

• B2 Development Program for Responsible Managers
• B2 Industry Standards Compliance
• B3 Compliance Arrangements
• B3 Outsourcing Statement
• B3 Conflicts of Interest Arrangements
• B4 Program for monitoring, supervision and training of Representatives
• B5 Human Resources Capacity Statement
• B5 Information Technology Capacity Statement
• B6 Dispute Resolution System Statement
• B7 Risk Management System Statement
• B8 Compensation Capacity Statement
• B9 Research Statement

5. Preparation of requisite documentation, including:

• Product Disclosure Statement;
• Identification Statements (to be lodged with ASIC);
• Procedures for compliance with ASIC Regulatory Guide 87 and Class Order 02/184 exemption requirements; and
• Financial Services Guide.

What can Block Legal & Compliance do for bodies operating under the Group Charities exemption?

1. advise you regarding ASIC requirements and the appropriate authorisations to obtain;

2. project manage or review your AFSL Application or Variation;

3. draft policies and procedures (including comprehensive Compliance Manual) and/or application proofs;

4. liaise with ASIC to finalise your AFSL application or variation;

5. provide training and workshops to staff regarding the process and applicable legal/regulatory requirements;

6. provide specialised assistance in key areas such as drafting of Identification Statements, compliance documentation, and specialised disclosure documentation;

7. review and advise regarding marketing materials and website disclosures;

8. provide implementation advice and guidance once AFSL is obtained; and

9. provide ongoing compliance oversight and reviews, and training, once AFSL has been granted/varied.

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