Choosing the right investment partner is integral, both in terms of enjoying a smooth investing process and achieving forecasted results. An important consideration that can get overlooked is whether the investment manager or property syndicate operator holds an Australian Financial Services Licence (AFSL).
What is an AFSL?
An AFSL is issued by the Australian Securities and Investments Commission (ASIC) and gives a firm or individual the legal authority to provide financial services to clients. This licence ensures that the holder is legally bound to adhere to the strictest standards of professional conduct and ethical responsibility when managing your investments.
Why Does an AFSL Matter?
- Regulatory Oversight and Consumer Protection
With an AFSL in place, you can be confident that the person managing your investment is subject to ongoing supervision by ASIC. This oversight ensures that your investments are being handled by someone who follows the laws and regulations designed to protect your interests. It also provides a layer of consumer protection, as the license holder is required to meet obligations for transparency in their dealings. - Expertise and Experience
Obtaining an AFSL requires in-depth knowledge of financial markets, investment strategies, and compliance requirements. When you invest with someone who holds an AFSL, you’re partnering with a professional who has proven expertise in the field and has demonstrated their ability to manage complex financial services. It’s a mark of competence, experience, and accountability. - Peace of Mind for Investors
When you invest in a property syndicate or any managed fund, you want the peace of mind that your money is being handled by a trusted, licensed professional. An AFSL holder must meet stringent financial requirements and comply with ongoing risk management protocols, giving you confidence that your investment is in safe hands. - Ethical Responsibility
An AFSL holder is obligated to act in the best interests of their clients, placing your financial wellbeing above all else. This fiduciary duty ensures that their recommendations and decisions are made with your goals in mind, not their own personal gain. It reduces the risk of unethical behaviour, such as conflicts of interest or misguided advice, which could put your investment at risk. - Access to a Range of Investment Options
AFSL holders can offer a broader array of investment options and services, including syndicate structures, property acquisitions, and even tailored investment advice. This means you can have access to professional guidance and carefully vetted opportunities that align with your financial goals.
How to ensure you’re investing with an AFSL holder
Before committing to any investment opportunity, always check whether the operator holds an AFSL. This can be verified through the ASIC register, which lists all licensed entities. Don’t hesitate to ask the fund manager directly as reputable professionals will be transparent about their licensing status.
AGEM’s Managing Director, Adrian Fiore is the licensee/authorised representative of the AFSL held by APG Finance Services Pty Ltd (this entity oversees all AGEM investments).
