4.2. Principles for Authorised Persons
4.2.1. Principle 1 ‐ Integrity
An Authorised Person must observe high standards of integrity and fair dealing.
4.2.2. Principle 2 ‐ Due skill, care and diligence
In conducting its business activities, an Authorised Person must act with due skill, care and diligence.
4.2.3. Principle 3 ‐ Management
An Authorised Person must ensure that its affairs are managed effectively and responsibly by its senior management.
4.2.4. Principle 4 ‐ Systems and controls
An Authorised Person must have adequate systems and controls to ensure, as far as is reasonably practical, that it complies with all relevant Regulations and Rules.
4.2.5. Principle 5 ‐ Resources
An Authorised Person must maintain and be able to demonstrate the existence of adequate resources to conduct and manage its affairs. These include adequate financial and system resources as well as adequate and competent human resources.
4.2.6. Principle 6 ‐ Market conduct
An Authorised Person must observe proper standards of conduct in financial markets.
4.2.7. Principle 7 ‐ Information and interests
An Authorised Person must pay due regard to the interests of its Clients and communicate information to them in a way which is clear, fair and not misleading.
4.2.8. Principle 8 ‐ Conflicts of interest
An Authorised Person must take all reasonable steps to ensure that conflicts of interest between itself and its Clients, between its Employees and Clients and between one Client and another are identified and then prevented or managed, or disclosed, in such a way that the interests of a Client are not adversely affected.
4.2.9. Principle 9 ‐ Suitability
An Authorised Person must take reasonable care to ensure the suitability of its Advice and discretionary decisions for Clients who are entitled to rely upon its judgment.
4.2.10. Principle 10 ‐ Client assets and money
Where an Authorised Person has control of or is otherwise responsible for assets or money belonging to a Client which it is required to safeguard, it must arrange proper protection for them in accordance with the responsibility it has accepted.
4.2.11. Principle 11 ‐ Relations with the AFSA
An Authorised Person must deal with the AFSA in an open and co‐operative manner and keep the AFSA promptly informed of significant events or anything else relating to the Authorised Person of which the AFSA would reasonably expect to be notified.
4.2.12. Principle 12 ‐ Compliance with high standards of corporate governance
An Authorised Person must have a corporate governance framework as appropriate to the nature, scale and complexity of its business and structure, which is adequate to promote the sound and prudent management and oversight of the Authorised Person's business and to protect the interests of its Clients and stakeholders.
4.2.13. Principle 13 ‐ Remuneration practices
An Authorised Person must have a Remuneration structure and strategies which are well aligned with the long-term interests of the Authorised Person, and are appropriate to the nature, scale and complexity of its business.