The Colonial First State Licensee Terms (previously known as Dealer Terms of Trade) have been updated. These terms are the agreed conditions under which Third Parties (Licensees and their authorised representatives (advisers)) are able to access and recommend Colonial First State products and platforms.
Colonial First State has updated the terms to better reflect the current operating environment
There have been a number of changes in legislation and regulatory requirements as well as regulator expectations which have been reflected in the updated Licensee Terms. You as an adviser play a crucial role in ensuring compliance with the law, and together we can meet our mutual obligations.
Some of the new legislative and regulatory requirements include changes to privacy laws, sanctions laws, new modern slavery laws, and the Insurance in Superannuation Code of Practice.
We have also updated some of the timeframes in which certain information must be provided. This will enable CFS to take the required actions in a reasonable timeframe ensuring the right outcome for Licensees, advisers, CFS and members.
In addition we have also added more information around remediation as we’ve had a number of licensees advise us of remedial activity they are undertaking with an impact to members. Where the Licensee undertakes remediation and funds need to be returned to member accounts, CFS are here to help.
Finally they’ve provided clarification that we must have the member’s details and not that of the adviser for communication purposes. This is an important step that is required when using digital consent capabilities as well as ensuring we can meet our ongoing disclosure requirements.
What you need to do?
We ask that you take the time to read and understand the Licensee Terms and comply with them when recommending CFS financial products.
The Colonial First State Investments Limited (CFSIL) Licensee Terms can be accessed here.
The Avanteos Investments Limited (AIL) Licensee Terms can be accessed here.
A summary of the updated timeframes in which certain information must be provided can be found below.
Key obligations and standards
The licensee and their representatives have a duty to notify CFS when certain events occur.
|General requirements||Notification period|
|Provide CFS with a copy of its AFSL and PII certificate of currency when on-boarding and at renewal
|Licensee no longer provides ongoing financial services relating to a financial product to members||30 days|
|Ceasing to hold an AFSL or AFSL being revoked, suspended, varied or conditions applied||7 days|
|Matters that affect your ability to provide the services and comply with the terms or any investigations carried out by ASIC||7 days|
|Material or systemic breach of the Licensee Terms||14 days|
|Material breach of laws||14 days|
|Breach of sanctions law||As soon as possible|
|Confirmed instances of bribery and corruption||7 days|
|Material complaints made by members relating to services provided||7 days|
|Remediation activity that relates to members||14 days|
|Relationship events||Notification period|
|Appointment of an adviser||7 days|
|Termination of an adviser||7 days|
|Adviser banned by ASIC||Immediately|
|Agreement between a member and the licensee and their adviser terminates||Immediately|
|Member's death||7 days|
|Transactional events||Notification period|
|Ceasing of Opt-in (where client notifies their adviser to stop an ASF)||Immediately from 1/7/2021 - 10 days|
|Mistakes in processing transactions||10 days|
|Mistakes regarding fees||10 days|
|Member's change in circumstances||7 days|
Adviser use only
Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (Colonial First State) is the issuer of FirstChoice Personal Super, FirstChoice Wholesale Personal Super, FirstChoice Pension, FirstChoice Wholesale Pension, FirstChoice Employer Super offered from the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557. It also issues interests in the Rollover & Superannuation Fund (ROSCO) and Personal Pension Plan (PPP) offered from the Colonial First State Rollover & Superannuation Fund ABN 88 854 638 840. Colonial First State also issues interests in products made available under FirstChoice Investments and FirstChoice Wholesale Investments. Colonial First State Custom Solutions is the registered business name of Avanteos Investments Limited ABN 20 096 259 979, AFS Licence 245531 (AIL). AIL is the trustee of the Avanteos Superannuation Trust ABN 38 876 896 681 which includes FirstWrap Plus Super and Pension, and is the operator of The Avanteos Wrap Account Service which includes FirstWrap Plus Investments.
Colonial First State and AIL are wholly owned subsidiaries of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (the Bank). The Bank and its subsidiaries do not guarantee the performance of FirstChoice and AIL products or the repayment of capital for your investment.
This document is based on the understanding of current regulatory requirements and laws as at May 2021. While all care has been taken in the preparation of this document (using sources believed to be reliable and accurate), to the maximum extent permitted by law, no person including Colonial First State or any member of the Commonwealth Bank group of companies, accepts responsibility for any loss suffered by any person arising from reliance on this information. This document contains general information strictly for adviser use only and is not to be handed to any investor. This document may include general advice but does not take into account any person’s individual objectives, financial situation, needs or taxation circumstances. You should read the relevant Product Disclosure Statement (PDS) or Investor Directed Portfolio Service Guide (IDPS Guide) before making an investment decision and consider talking to a financial adviser. FirstChoice PDSs can be obtained from colonialfirststate.com.au or by calling 13 13 36 and FirstWrap PDSs and IDPSs can be obtained from the FirstWrap website.