A licensed financial services business needs more than a licence: it needs governance, risk management and operating standards that hold up to scrutiny. Provenance provides that operational governance framework on the licensed framework of Providence Equity Holdings — so whether you operate as an authorised representative or hold your own AFSL, your business runs to standard from day one.
Governance and risk obligations
AFS licensees must maintain adequate risk-management systems and the organisational competence and resources to provide their services — part of the general obligations under s 912A of the Corporations Act 2001 (Cth). Good governance — clear oversight, accountability, risk controls and operating standards — is how those obligations are met in practice.
As ASIC's scrutiny of the wholesale funds sector increases, governance, valuation and conflicts are precisely the areas under focus — so building these in from the start matters.
New to AFSL obligations? See our guide to the licensing pathways.
The operational governance framework
The operating, governance and risk layer of a licensed business:
- Governance framework — oversight, decision-making and accountability structures.
- Risk management — a risk framework, registers and controls (s 912A(1)(h)).
- Operating policies and standards — the day-to-day operating model.
- Outsourcing and service-provider oversight — managing material outsourced functions, consistent with ASIC's guidance (RG 104). The obligation-holder remains responsible for outsourced functions.
- Business continuity and operational resilience — continuity planning and operational controls.
- Conflicts management — supporting the conflicts framework (pairs with Compliance & Regulatory Reporting).
How it works with Provenance
Two ways to run on the framework — under our AFSL as an authorised representative, or alongside your own licence.
| Authorised representative (under our AFSL) | Hold your own AFSL | |
|---|---|---|
| Operational governance | Part of operating under AFSL 487419. | Governance and operational support that sits alongside your licence. |
| Where the obligation sits | With the licensee; you operate within your authorised scope. | With you, as the licensee. |
| Start here | Authorised Representative Onboarding | Runs alongside your existing AFSL. |
What's included
- A governance framework — oversight, decision-making and accountability structures
- Risk management — framework, registers and controls
- Operating policies and standards
- Outsourcing and service-provider oversight
- Business continuity and operational resilience
- Conflicts-management support
Your responsibilities
Who it's for
-
Investment Managers →
Launch or relocate a wholesale strategy under an established AFSL.
-
Compliance & Regulatory Reporting →
A maintained compliance framework, monitoring and regulatory reporting.
-
Managed Scheme & Trustee Infrastructure →
Licensed trustee and scheme infrastructure for wholesale funds.
Frequently asked questions
What does operational governance cover?
The operating layer of a licensed business — governance and oversight, risk management, operating policies and standards, outsourcing and service-provider oversight, and business continuity. It's the framework that keeps the business running to standard.
How is this different from compliance and regulatory reporting?
Operational governance is the operating model — governance, risk and standards. Compliance and regulatory reporting covers your specific obligations and reports to regulators. They pair together: governance keeps the business sound; compliance meets the obligations.
Does this remove my responsibility for running the business?
No. The framework supports your operations — it doesn't replace your responsibility. As an authorised representative or licensee, you remain responsible for running your business to standard within your authorised scope or under your licence.
Is this only for wholesale clients?
Yes — Provenance's framework is for financial services to wholesale clients only.