Who needs to report under intermediary authorisation or authorised representative arrangements?

November 10, 2015

A “Reporting Entity” needs to report information about its “Reportable Transactions” under the ASIC Derivative Transaction Rules (Reporting) 2013.

Assuming that a broker is an Australian entity or foreign subsidiary of Australian entity in respect of a transaction with a customer, the Reporting Entity is the counterparty with the customer.

The counterparty will be the issuer of the derivative. This is identified in the relevant Product Disclosure Statement.

Where the broker does not have an AFSL and is part of an intermediary authorisation arrangement under s911A(2)(b) of the Corporations Act with an AFS Licensee, and the broker is the issuer of a derivative with a customer under the intermediary authorisation arrangement, the broker is the counterparty to the customer and the Reporting Entity for the derivative.

Where the broker is only the authorised representative of an AFS Licensee and the AFS Licensee (including where the AFS Licensee uses a registered business name) is the issuer of a derivative with the customer, the AFS Licensee is the counterparty to the customer and the Reporting Entity for the derivative.