Understanding the B1 Organisational Competence Proof for Your AFS Licence Application (Updated June 2025)

Introduction to the B1 Organisational Competence Proof

Applying for an Australian Financial Services Licence (AFSL) necessitates that applicants demonstrate organisational competence to ASIC. This demonstration remains a crucial aspect of a successful application, as ASIC is responsible for assessing applications to ensure that only competent entities are authorised to provide financial services in Australia. Prior to the application process changes on 16 June 2025, the B1 Organisational Competence proof was one of the essential documents you need for an AFSL application that applicants were required to provide to ASIC as part of their lodgement.

This guide explains what the B1 Organisational Competence proof was in detail, focusing on its key components and how it was used to demonstrate the competency of responsible managers. While this specific document is no longer required for applications lodged after 16 June 2025, understanding its historical requirements is essential for grasping how ASIC continues to assess organisational competence through the questions now integrated into the new online application form.

Important Note on the June 2025 AFSL Changes

This article has been updated to explain that the B1 Organisational Competence proof is no longer a required standalone document for AFSL applications, due to ASIC’s process changes on 16 June 2025. The information is kept for historical context, as the details regarding responsible managers are now provided directly within the new online application form.

What is the B1 Organisational Competence Proof?

Demonstrating Organisational Competence for AFS Licensing

Prior to 16 June 2025, the B1 Organisational Competence proof was a fundamental document required by ASIC for all AFSL applicants. This core proof was essential for demonstrating that a business had the organisational competence to provide the financial services and products it was seeking authorisation for.

While this specific document is no longer required for applications lodged after this date, the underlying obligation to demonstrate organisational competence remains a central part of the AFSL application. ASIC now assesses this competence through specific questions integrated into the online application transaction, rather than through a separate proof document.

The Role of Responsible Managers in B1 Proof

The former B1 proof specifically focused on the competence of your responsible managers because ASIC assesses your organisation’s competence through these individuals. This principle has not changed. Responsible managers are pivotal as they are accountable for the day-to-day significant decisions within your financial services business.

Therefore, the B1 proof required applicants to detail the relevant experience and qualifications of each responsible manager, including:

• Relevant Experience: An outline of the professional experience that qualified each manager.
• Qualifications: Information on the educational and professional qualifications held by each manager.

It was their competency that ASIC evaluated to determine an organisation’s overall competence. This evaluation of their skills and experience remains the method by which ASIC assesses your organisation’s overall competence in the new application system.

Key Components of the B1 Organisational Competence Proof

Table of Organisational Competence

A core component of the former B1 Organisational Competence proof was the Table of Organisational Competence. This table was essential for AFSL applications under the previous system as it allowed ASIC to assess whether responsible managers possessed the necessary organisational competence. Applicants were required to clearly present each responsible manager’s relevant experience and qualifications in this table.

To ensure ASIC could properly evaluate if the responsible managers had the competency to oversee the financial services and products the business intended to provide, the information had to directly relate to the specific authorisations sought in the application. While this standalone table is no longer required for applications after 16 June 2025, the same detailed information is now captured directly within the structured data fields of the new online application on the ASIC Regulatory Portal.

Submission on Responsible Manager’s Competence (If Applicable)

In certain situations, applicants previously needed to include a Submission on Responsible Manager’s Competence as part of their B1 proof. This submission was necessary when using Option 5 (“Other demonstration of knowledge and skills”) to demonstrate a manager’s competence, or if a nominated person would be acting as a responsible manager for multiple AFS licensees.

For a manager overseeing multiple licensees, the submission had to demonstrate that the business would still meet its ongoing competence obligations by detailing:

• Time Allocation: A description of how the manager would allocate their time effectively.
• Conflict of Interest Management: An explanation of how potential conflicts of interest would be managed.

While a separate submission document is no longer required, the new online application process will ask specific questions to address these same scenarios, requiring applicants to provide these justifications directly within the application form.

How to Complete and Lodge the B1 Organisational Competence Proof

Utilising the Table of Organisational Competence Template

To assist applicants in preparing their B1 proof under the previous system, ASIC provided a template in its Regulatory Guide 2 for the Table of Organisational Competence. Applicants were encouraged to use this template to ensure all necessary information was presented clearly.

Appendix 2 of the March 2022 version of ASIC Regulatory Guide 2 included an example of this table, demonstrating how to effectively present the required information. While this template and the B1 proof document itself are no longer required for applications lodged after 16 June 2025, the same detailed information about responsible managers is now collected directly within the new online application form on the ASIC Regulatory Portal.

Submitting the B1 Proof with Your AFSL Application

The B1 organisational competence proof was considered a core proof document that had to be submitted as part of an AFSL application. It was crucial to lodge the B1 proof alongside the completed Form FS01 (the old application form) and other core proof documents. This entire package was submitted to ASIC through the ASIC MOVEit portal.

Submitting all required documents together, including the B1 proof, was essential for a successful application under that system. Failure to do so could result in ASIC rejecting the application for lodgement, a scenario where you would need to know what to do if your AFSL application was rejected. This separate submission process is now defunct. As of 16 June 2025, the ASIC MOVEit portal is no longer used for this purpose. All supporting information and documents are now uploaded directly into the ASIC Regulatory Portal as part of a single, streamlined online application transaction.

Conclusion

The B1 Organisational Competence proof was a critical document in the AFSL application process prior to 16 June 2025. A well-prepared B1 proof was essential for demonstrating to ASIC that your business, through its responsible managers, possesses the necessary organisational competence. While this specific proof document is no longer required as a separate submission, the demonstration of competence itself remains a fundamental requirement to assure ASIC of your capability to operate an AFS licensed financial services business effectively and in compliance with regulatory obligations.

Navigating the complexities of AFS licensing and demonstrating organisational competence within the new online application framework can be challenging. For expert guidance and support with your AFSL application, contact the lawyers at AFSL House today. With a 100% AFSL application success rate, our team’s unparalleled expertise in Australian Financial Services licensing ensures you are well-equipped to navigate every step, increasing your prospects for a successful application and authorisation to provide financial services and products under an AFSL.

Frequently Asked Questions about the B1 Organisational Competence Proof