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AFS licensees need to be careful about granting authorisation - Insurance & Risk Professional
Under section 916D of the Corporations Act 2001, an AFS licensee cannot be the authorised representative of another AFS licensee, unless they are a general insurance underwriting agent or broker operating under a binder given by an insurer. ASIC investigated 65 cases where AFS licence holders had also been appointed as authorised representatives by another AFS licensee. Of the 65 cases investigated, ASIC found that 58 were in breach of the law and have now had their authorisation revoked. In …