2.3.1. Designation of roles as Designated Functions

The functions specified in GEN 2.3.2 to 2.3.6 are Designated Functions.

2.3.2. Senior Manager

The Senior Manager function is carried out by an individual who is responsible either alone or jointly with other individuals for the management, supervision or control of one or more parts of an Authorised Person's Regulated Activities who is:

• (a) an Employee of the Authorised Person; and
• (b) not a Director or Partner of the Authorised Person.

2.3.3. Responsible Officer

The Responsible Officer function is carried out by an individual who:

• (a) has significant responsibility for the management of one or more aspects of an Authorised Person’s affairs; and
• (b) exercises a significant influence on the Authorised Person as a result of (a); but
• (c) is not an Employee of the Authorised Person

2.3.4. Money Laundering Reporting Officer

[intentionally omitted]

2.3.5. Risk Manager

The Risk Manager function is carried out by an individual who is a Director, Partner or Senior Manager of an Authorised Person and who has responsibility for all aspects of the risk management function in relation to the Authorised Person's Regulated Activities.

2.3.6. Internal Audit Manager

The Internal Audit Manager function is carried out by an individual who is a Director, Partner or Senior Manager of an Authorised Person and who has responsibility for all aspects of the internal audit function in relation to the Authorised Person's Regulated Activities.

Guidance: criteria for appointment of Designated Individual

Section 46 of Framework Regulations provides:

(1) Before appointing an individual to carry on a Designated Function, an Authorised Person must take reasonable steps to satisfy itself that the individual is fit and proper to be a Designated Individual.

(2) In making this assessment the Authorised Person must have regard to:

1. (a) the individual's integrity; and
2. (b) the individual's competence and capability; and
3. (c) the individual's financial soundness; and
4. (d) the individual's proposed role within the Authorised Person; and
5. (e) any other matters that the AFSA may prescribe by Rules.

(3) An Authorised Person may not regard an individual as fit and proper if the individual:

1. (a) is bankrupt; or
2. (b) has been convicted of a serious criminal offence; or
3. (c) is the subject of an administrative or civil finding; or
4. (d) is incapable, through mental or physical incapacity, of managing his affairs

2.3.7. Appointment of Designated Individual

In respect of each Designated Individual that it appoints, an Authorised Person must keep records of the assessment process that it has undertaken in accordance with section 46 of the Framework Regulations to satisfy itself that the relevant individual is a fit and proper Person. Such records must be kept for a minimum of six years from the date of the assessment