Financial Policy & Procedures An Overview for Staff Prepared by MSM Compliance Services Pty Ltd

Who Are MSM Compliance? MSM is a national professional services business focused on the financial services sector. Your company has engaged MSM to assist in the management of its obligations as a holder of an Australian Financial Services Licence. MSM helps to ensure that you and your company comply with your AFS Licence obligations with the least disruption to your core business.

Why are you reading this? To provide you with an introduction to our Financial Policy and Procedures. It will present you with a synopsis, but not the detail. You should still take the time to read the full Financial Policy & Procedures.

Why do we have Financial Policy & Procedures? As an AFS Licensee, we have strict financial obligations placed on our organisation. We may also be a “Reporting Entity” which increases both the complexity and scrutiny of our financial management & reporting. To reduce the risk of loss to our clients from the financial failure of our business.

What are the Requirements? We Must: Have Risk Management systems for our financial resources. Be solvent at all times. Have access to cash for approximately 1 months expenses. Prepare audited Annual Accounts. Provide ASIC with forms FS70 & FS71- October each year. Have specific bank account for client monies (designated as a Trust A/c). Transfer our Income / GST and Associate money out of Trust A/c at least monthly. Bank client monies to Trust A/c daily/every second day. Provide information on Client Money requirements when paying U/W Agents / Brokers. Pay clients refunds within 7 days of getting money from insurer. Advise insurers of all debts over 90 days within 7 days.

Who is responsible for Financial Management? The Responsible Manager(s) is ultimately responsible to ensure we meet our Financial Requirements. The Financial Compliance Officer is responsible for the day to day management and reporting of financial obligations. The Financial Compliance Officer role is identified on our Organisation Chart with the code FC.

What responsibilities does the Financial Compliance Officer have? Responsible for ensuring we: Maintain Profit and Loss and General Ledger accounts. Prepare monthly RG166 Cash flow projections. Pay expenses etc. as per authority levels & documentary requirements. Monitor our income. Monitor & report on debtor collections & outstandings. Enter data accurately and promptly into our accounting package. Prepare & monitor our annual cash flow budget. Control payments from Trust A/c to insurers, clients, associates & the business. Lodge ASIC financial returns.

Review & updates Our Financial Policy & Procedures will be reviewed on an annual basis as part of our the Business Planning process. Any changes will be advised to you either via email or at our regular Staff meetings .

In summary You should Read the Financial Policy & Procedures. Refer to the Organisation Chart and identify who our Financial Compliance Officer is. Ensure you understand the role of the Financial Compliance Officer. Ensure you understand your role in our Financial Compliance management.

Where to from here? Please take the time to read our full Financial Policy and Procedures and if you require further clarification discuss with our Financial Compliance Officer.