Tips & Traps: Appointing and Notifying Authorised Representatives 
Common directorships between the AR and another licensee
A licensee can appoint a company as an authorised representative, even if one of the directors of the company is a director of another license. This is because the corporate authorised representative and the other licensee are separate entities, even though they share directors. There are no cross-liability issues or compliance concerns from the point of view of the appointing licensee.   Appointing Trusts - While it is not possible to appoint a trust as an AR, you can appoint the corporate trustee – which has the same effect.  

Yellow Pages
Authorised representatives do not need to list their AR number in Yellow Pages advertisements.  The Yellow Pages is a telephone directory used to obtain contact details, not marketing in the usual sense. It probably isn't even possible to include an AR number in a standard listing and it would be unreasonable to require every AR to have a premium listing just so they can include their AR number. However AR’s must be sure to make the appropriate disclosures about their AR status when contacted.  

More than One FSG
ARs can have more than one FSG (i.e. they may have one each relating to the services they offer on behalf of each licensee). It is no longer necessary to list or note the names of all authorising licensees in all FSGs - only the licensee who has authorised distribution of the particular FSG.  

PI Insurance 
ARs need to be covered under PI insurance that complies with the ASIC standard (in RG 126). Generally ARs will be covered under the licensee’s PI insurance, but some licensees may require the AR to maintain their own insurance.  

Information for Cross Endorsements 
It is good practice but not absolutely essential to get a copy of the other licensee's PI insurance certificate and AFS license details when deciding whether to cross endorse an authorised representative. This is because:

• Licensees can check the other licensee's authorisations and AFSL status on the ASIC website (www.asic.gov.au ).
• Because ASIC requires all licensees to have adequate PI insurance by 1 January 2010, there is little risk that the other licensee will not have PI insurance arrangements that would be used to meet client claims relating to the AR.

Notifications to ASIC

To notify ASIC of the appointment of an AR and obtain an AR number, use the form FS30 on the ASIC licensing portal (available on the ASIC website). The AR Number will not be supplied to you, but it should be immediately available on the AR register if you do a search. If a person already has an AR number, this AR number can be used, but if the person is ceasing to be an AR for another licensee, it would be best to ensure that the AR is not appointed until after the existing arrangement is terminated. This means there is no need to obtain cross endorsement.