01 / The meaning
What it means.
Businesses providing financial services generally need the relevant authorisation, although exemptions and representative arrangements can apply. An authorised representative may provide specified services on behalf of a licensee rather than hold its own licence. For an insurance customer, identifying the legal entity, licence holder and representative relationship is more useful than relying only on a licence number displayed on marketing material.
Check the scope of authorisation and whether it covers the service being offered. An AFSL is not ASIC approval of a particular policy, a guarantee of advice quality or a promise that a claim will be paid. It is also different from APRA’s prudential authorisation of an insurer. The intermediary providing advice or arranging cover and the insurer accepting the risk can be separate entities with separate roles.
02 / Put it in context
A practical example.
Hypothetical example: a business owner receives insurance advice from a trading name. It checks the provider’s legal entity, Financial Services Guide and representative details against ASIC’s records, then identifies the insurer named on the proposed schedule.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Verify the legal entity, licence number and current representative relationship.
- Check that the authorised services and products match the proposed engagement.
- Distinguish the adviser or arranger from the insurer responsible under the policy.
04 / Start a useful conversation
A question for your broker.
Who holds the relevant licence, under what authority is this person acting, and does that authority cover the service we need?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
Let’s start with your business
A clearer conversation
about your insurance.
Tell us what you do, what has changed and what you need to understand.