AFS Licensees Quiz Jodie Nicholls 22 August 2016

QUIZ – UNIMUTUAL DIRECTORS 1. WHO ARE UNIMUTUAL’S RESPONSIBLE MANAGERS? a) b) c) d)

3. WHAT DOES UNIMUTUAL’S AFSL ENABLE THE COMPANY TO DO? a) b) c) d)

5. DOES UNIMUTUAL HAVE AN AFSL TO PROVIDE FINANCIAL PRODUCT ADVICE TO: a) b)

7. WHAT ARE SOME OF THE KEY AREAS ASIC REQUIRES LICENSEES TO CHECK? a)

9. WHAT IS THE BEST INDICATOR OF A CULTURE OF COMPLIANCE? a) b) c)

ANSWERS 1. d) 2. c) 3. c) 4. a) 5. d) 6. d) 7.

RESULTS – What do they mean? • • • 8 or above – Jodie

Slides: 8

Download presentation

AFS Licensees - Quiz Jodie Nicholls 22 August 2016 Creating and Managing Mutuals • www. rmml. com

QUIZ – UNIMUTUAL DIRECTORS 1. WHO ARE UNIMUTUAL’S RESPONSIBLE MANAGERS? a) b) c) d) Gerald Ewing and Martin Griffith Gerald Ewing and Christine Cummings Martin Griffith and Christine Cummings Gerald Ewing, Martin Griffith and Christine Cummings 2. WHICH COMPANY HOLDS AN AFS LICENSE? a) b) c) d) Unimutual Limited Regis Mutual Management Pty Ltd Unimutual Limited and Regis Mutual Management Pty Ltd ASIC Creating and Managing Mutuals • www. rmml. com

3. WHAT DOES UNIMUTUAL’S AFSL ENABLE THE COMPANY TO DO? a) b) c) d) Provide financial product advice Deal in financial products Both a) and b) None of the above, only Regis has a license to do both 4. WHAT IS FINANCIAL PRODUCT ADVICE? a) b) c) d) A statement intended to influence a member A factual statement about Unimutual’s protections A recommendation to a member about risk activities All of the above Creating and Managing Mutuals • www. rmml. com

5. DOES UNIMUTUAL HAVE AN AFSL TO PROVIDE FINANCIAL PRODUCT ADVICE TO: a) b) c) d) Retail clients only Wholesale clients only Only members of Unimutual Both retail and wholesale clients 6. DOES UNIMUTUAL NEED AFSL AUTHORISATIONS FOR THE FOLLOWING ACTIVITIES IN RELATION TO FINANCIAL PRODUCTS? a) b) c) d) Investing funds with Escala Issuing property protection to Members Arranging for an insurer to issue Cyber cover Both b) an c) Creating and Managing Mutuals • www. rmml. com

7. WHAT ARE SOME OF THE KEY AREAS ASIC REQUIRES LICENSEES TO CHECK? a) b) c) d) That there is a broad compliance framework in place That there is a risk management system in place That there is training in place for representative and responsible managers All of the above 8. IS THERE A LEGAL REQUIREMENT FOR UNIMUTUAL TO HAVE A CULTURE OF COMPLIANCE? a) No but ASIC has issued a directive to all AFS licensees b) No but Jodie bores us with her compliance reports c) Yes the Commonwealth Criminal Code requires organisations to operate a proper culture of compliance d) Yes the Corporations Act 2001 sets out the standard of compliance for all companies Creating and Managing Mutuals • www. rmml. com

9. WHAT IS THE BEST INDICATOR OF A CULTURE OF COMPLIANCE? a) b) c) d) Compliance is measured annually Compliance breaches are reported A Member Director has a background in compliance b) and c) 10. UNIMUTUAL HAS INSUFFICIENT RESERVES TO PAY A CATASTROPHIC LIABILITY CLAIM, WHAT DOES ASIC HAVE THE POWER TO DO? a) Nothing ASIC has no power with respect to management of claims b) Suspend or cancel Unimutual’s AFSL c) Suspend Unimutual’s AFSL as ASIC has no power to cancel a license without a Court hearing d) Issue proceedings against Unimutual on the Member’s behalf Creating and Managing Mutuals • www. rmml. com

ANSWERS 1. d) 2. c) 3. c) 4. a) 5. d) 6. d) 7. d) 8. c) 9. b) 10. b) Creating and Managing Mutuals • www. rmml. com

RESULTS – What do they mean? • • • 8 or above – Jodie might be out of a job 5 or above – OK for Directors, however not for Gerald and Martin 4 or below – Sorry to say but more compliance training is required! Creating and Managing Mutuals • www. rmml. com