1.1  What is an AFSL and Why Does It Matter?

An Australian Financial Services Licence (AFSL) is a licence issued by ASIC that permits a person or business to provide financial services in Australia. Sirius Insurance Pty Ltd holds an AFSL that authorises it to advise on and arrange general insurance products.

You do not hold your own AFSL. Instead, you operate as an Authorised Representative (AR) of Sirius, meaning:

• You are authorised to provide the specific financial services listed in your authorisation, using Sirius's AFSL;
• Sirius is legally responsible to ASIC for your conduct in providing those services;
• You must act consistently with Sirius's compliance policies, procedures, and the Compliance Management Manual; and
• Any breach of the law or Sirius's requirements by you can expose Sirius — and potentially you — to regulatory action and liability.

1.2  How You Are Authorised

Your appointment as an AR is governed by an Authorised Representative Agreement between you (or your company) and Sirius. The Agreement sets out:

• The financial services you are authorised to provide (your 'scope of authorisation');
• Your obligations as an AR;
• The conditions under which Sirius may vary or revoke your authorisation;
• Restrictions on your conduct, both during and after the Agreement; and
• The consequences of failing to comply with your obligations.

Your appointment is notified to ASIC via ASIC Connect, and your name appears on ASIC's public register of ARs. You must not act outside the scope of your authorisation.

1.3  ASIC's Fit and Proper Standard

ASIC requires all persons who provide financial services to be 'fit and proper'. This means you must:

• Be of good fame and character — free from relevant criminal convictions, bankruptcies, or regulatory bans;
• Have the skills, knowledge, and experience appropriate to the financial services you provide; and
• Comply with continuing training and development requirements.

If your circumstances change in a way that may affect your fit and proper status (for example, if you are charged with an offence, become insolvent, or are banned from a role in financial services), you must notify Sirius immediately.

1.4  Legislation You Are Bound By

1.5  The Deed of Acknowledgement — Plain English Explainer

Before you commence operating, you must sign a Deed of Acknowledgement. This deed binds you personally to the key obligations in the AR Agreement.

1.6  Section 1041H — Misleading or Deceptive Conduct

Section 1041H of the Corporations Act 2001 prohibits conduct in connection with a financial product or financial service that is misleading or deceptive, or is likely to mislead or deceive. This is a strict liability — you can breach it even without an intention to mislead.

Examples of potentially misleading conduct include:

• Overstating the coverage of a policy;
• Telling a client a claim 'should be fine' before the insurer has made a decision;
• Omitting a material fact that would affect a client's decision; and
• Using terms like 'independent', 'impartial', or 'unbiased' to describe your services when you are paid commission (this is separately prohibited under s923A of the Corporations Act).

2.1  The Financial Services Guide (FSG)

The Financial Services Guide (FSG) is a legally required document that helps retail clients decide whether to use your services. It explains who you are, what services you provide, how you are remunerated, and how to access the complaints process.

When must you provide an FSG?

You must give an up-to-date FSG to all actual and potential retail clients as early as possible after they first contact you — before you provide any advice or arrange any insurance on their behalf.

How must the FSG be provided?

The FSG may be provided in person, by email (to an address the client has nominated), or by directing the client to a link or website where they can download it. If sent electronically, you must be satisfied the client has received it and can save a copy.

When is a time-critical statement permitted?

If a client instructs that services must be provided immediately and it is not reasonably practicable to give the FSG first, you may instead give a time-critical statement orally. This statement must describe your remuneration and any relevant associations. You must then send the full FSG within 5 days.

The Lack of Independence disclosure

From 1 July 2021, every FSG must include a "Lack of Independence" statement on its first substantive page, acknowledging that Sirius receives commissions from insurers and cannot describe itself as 'independent', 'impartial', or 'unbiased'.

2.2  Informed Consent to Receive Commission

From 10 July 2025, as part of the Quality of Advice reforms, you must obtain informed consent from new retail clients before Sirius receives any commission for personal financial product advice on general insurance.

Before asking the client to consent, you must provide:

• The name of the insurer (if known at that stage);
• The rate or range of commission as a percentage of the policy cost;
• If multiple commission payments apply, the frequency and period;
• The nature of the services Sirius and you will provide;
• A statement that obtaining informed consent before receiving commission is a legal requirement; and
• That the consent is irrevocable and covers renewals on the same product (unless the insurer changes).

2.3  Retail vs. Wholesale Clients

The level of disclosure and protection required depends on whether a client is classified as 'retail' or 'wholesale'. This is a two-part test.

Part 1 – Who is the client?

The client must be either an individual, or a small business (employing fewer than 20 people, or fewer than 100 for manufacturing businesses). Community groups and not-for-profits are generally treated as small businesses.

Part 2 – What type of insurance is being arranged?

2.4  Personal Advice vs. General Advice

In insurance broking, most client engagements involve personal advice — you are recommending specific products based on their needs.

2.5  Target Market Determinations

Each retail insurance product comes with a product design document prepared by the insurer (formally known as a Target Market Determination, or TMD). When distributing a retail insurance product, you must:

• Take reasonable steps to ensure the product is distributed only to consumers within its target market;
• Where practicable, attach a copy of the relevant TMD to your client file and provide a copy to the client; and
• Report to the product issuer if you become aware the product is reaching consumers outside its intended target market.

2.6  File Notes — Your Advice Documentation Obligation

You have an obligation to document your advice and the basis for your recommendations. Each file note should record:

• The client's insurance needs, objectives, and circumstances as you understood them;
• The products or options you considered and why;
• The product(s) you recommended and the reasoning behind that recommendation;
• Any limitations of the cover you identified or discussed;
• Any instructions given by the client; and
• The date, method of contact, and who was present.

2.7  Non-Monetary Benefits and Conflicts of Interest

Non-monetary benefits are benefits received from insurers that are not direct cash payments — such as entertainment, hospitality, training, or technology support. These create potential conflicts of interest and must be managed carefully:

• All non-monetary benefits must be disclosed in your FSG;
• You must not let them influence your recommendations to clients; and
• Sirius maintains a register of non-monetary benefits — you are required to report any such benefits you receive to the Compliance and Risk Manager.

3.1  Training and Competency Requirements

All ARs who provide financial services must maintain appropriate competency. This means:

• Holding qualifications appropriate to the services you provide (as set out in ASIC's training standards and your AR Agreement);
• Completing Continuing Professional Development (CPD) each year in accordance with the requirements of the relevant professional standards;
• Completing any training modules or assessments required by Sirius as a condition of your authorisation and your annual Training Plan; and
• Keeping evidence of your CPD and training in CCX360.

3.2  Using CCX360

CCX360 is Sirius's compliance management platform and the system of record for all compliance activities. As an AR, you are required to use CCX360 to record:

3.3  The Monthly Compliance Declaration

Each month, you must complete a compliance declaration in CCX360. This declaration asks you to confirm:

• That you have provided financial services only within the scope of your authorisation;
• That all complaints received during the month have been recorded and managed correctly;
• That any breaches have been identified and reported;
• That your CPD is up to date; and
• That you have not received any undisclosed non-monetary benefits from insurers.

3.4  Administrative Staff

There are strict limits on what administrative staff can and cannot do.

3.5  Monitoring and Supervision

Sirius conducts regular activity reviews of ARs to ensure compliance with its policies and the law. These reviews typically examine:

• File notes and advice records;
• FSG delivery records;
• Informed consent documentation;
• Complaints records and handling;
• CPD logs;
• Claims handling records; and
• Monthly compliance declarations.

When you receive a request for a file review or compliance activity review, respond promptly and provide all requested documentation. Failure to cooperate with supervision is itself a compliance breach.

3.6  INSIGHT — The Main Filing and Compliance Database

INSIGHT is Sirius's and Steadfast's primary filing and compliance database. All client-related activity must be filed in INSIGHT, including:

• Phone conversations and call notes;
• Emails sent and received in relation to a client;
• Documents issued (policies, endorsements, renewal notices, disclosure documents); and
• Any other material correspondence or records relating to a client or transaction.

3.7  Record Keeping Obligations

You must maintain adequate records of all financial services activities. Key requirements include:

• Keep a copy of any FSG given to a client for 7 years after it was last provided;
• Keep file notes of advice given, including the basis for your recommendation;
• Keep copies of all executed insurance documents, correspondence, and disclosure documents; and
• File all records in INSIGHT as the primary system of record.

4.1  What is a Complaint?

A complaint is any expression of dissatisfaction made to or about Sirius, related to its products, services, staff, or the handling of a complaint, where a response or resolution is implicitly expected.

Under ASIC's Regulatory Guide 271, complaints include dissatisfaction expressed via social media channels, complaints about matters subject to a remediation program, and complaints about the handling of an insurance claim.

4.2  The Complaints Process

When a complaint is received:

• Record the complaint in CCX360 within one business day. Log the date, complainant's name, how they contacted you, and a summary of the nature of their complaint.
• As soon as it is lodged in CCX360, Sirius's Compliance team (including the Disputes Resolution Manager) are automatically notified. They will manage the process from that point in conjunction with you.
• Cooperate fully with the Compliance team throughout the investigation.

4.3  Handling Complaints Professionally

When dealing with a complainant:

• Remain calm and treat the client courteously at all times;
• Listen carefully and let them explain their concern without interruption;
• Empathise without making admissions — say things like "I understand your frustration";
• Do not blame the complainant, a colleague, or another part of the business;
• Obtain all relevant facts and confirm them back to the complainant; and
• Keep them informed of progress — do not wait for them to chase you.

4.4  Identifying and Reporting Breaches

A breach is any failure to comply with the Corporations Act, Sirius's policies, or your AR Agreement obligations. This includes inadvertent errors. Examples of reportable breaches include:

• Providing financial services outside your scope of authorisation;
• Failing to give a client an FSG before providing services;
• Failing to obtain informed consent before Sirius receives commission;
• Committing a misleading or deceptive act or omission;
• Missing a monthly compliance declaration; and
• Allowing unauthorised staff to provide financial services.

Record any identified breach in CCX360 immediately and notify the Compliance and Risk Manager.

4.5  Consequence Management

Sirius has a consequence management framework for ARs who fail to meet their compliance obligations. The escalation process is:

• A written requirement to complete a specific training course or assessment by an agreed date;
• Suspension from income-earning activities until the requirement is met; and
• As a last resort: termination of the AR's authority to provide advice or arrange insurance.

4.6  Revocation of Authorisation

Your authorisation may be revoked by Sirius at any time, with notice, including where:

• You act outside your scope of authorisation;
• You breach a material obligation in the AR Agreement;
• You fail to meet the Fit and Proper standard;
• Your conduct brings Sirius into disrepute; or
• You fail to remedy a breach after being given the opportunity to do so.

If Sirius revokes your appointment, it must notify you in writing and notify ASIC within 30 business days via ASIC Connect.

4.7  Professional Indemnity — When to Escalate

A PI risk can arise from a range of situations — not only when a client's claim is denied. Examples include:

• A client's claim is denied or heavily reduced by the insurer;
• A client believes they were not adequately covered for a risk you advised on;
• A client suffers a loss not covered due to a gap in their programme; or
• Any situation where the client has indicated they intend to seek compensation or take legal action.

In any of these circumstances: notify the Compliance and Risk Manager immediately, do not make any admissions of liability, and preserve all file notes, correspondence, and documentation.