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ARTICLE · 04 SEPTEMBER 2024

ASIC Seeks To Clarify The Scope Of The "Authorised Representative" Exemption

K&L Gates
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The Australian Securities and Investments Commission (ASIC) has appealed certain findings in the recent decision in Australian Securities and Investments Commission v BPS Financial Pty Ltd [2024] FCA 457...

AustraliaFinance and Banking
Kane Barnett
Kane Barnett
Daniel Nastasi
Daniel Nastasi

The Australian Securities and Investments Commission (ASIC) has appealed certain findings in the recent decision in Australian Securities and Investments Commission v BPS Financial Pty Ltd [2024] FCA 457 (BPS Financial Decision) in relation to the scope of the authorised representative exemption. The authorised representative exemption is commonly relied upon and allows a person or entity to provide a financial service under the Corporations Act on behalf of the holder of an AFS licence without having to hold an AFS licence itself.

In the BPS Financial Decision, the Federal Court held that:

  • in order to rely on the intermediary authorisation exemption under section 911A(2)(b), the product provider must be a separate person from the person making the offers. This is consistent with ASIC's position; and

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