ASIC financial adviser exam, Licensing, authorised representatives and professional standards question: Ben a written authorisation

ASIC examLicensing, authorised representatives and professional standards

Kai is an authorised representative of a licensee. He wants to authorise his new employee, Ben, to provide general advice on the licensee's behalf. What MUST Kai have before he gives Ben a written authorisation?

A The licensee's written consent
B ASIC's approval of Ben as a representative
C Ben's registration with ASIC as a relevant provider
D A notice to ASIC about Ben

Show the answer and explanation

Answer: A. The licensee's written consent

Section 916B(3) of the Corporations Act 2001 (compilation 19 Sep 2026) lets an authorised representative authorise an individual to provide financial services on the licensee's behalf only if the licensee consents in writing given to the authoriser; otherwise s916B(1)-(2) makes the authorisation void. Ben is to give general advice only, so he is not a relevant provider and the professional year and registration rules for personal advice do not apply. ASIC does not approve representatives in advance.

Common mistake

Relevant-provider rules apply to personal advice to retail clients; general advice alone does not trigger them.

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