What is Business Agent Licensing?
Business agents, more commonly known as business brokers, are qualified individuals who can assist in the buying or selling of a business. Specifically, business agent functions include:
- selling, buying or exchanging or otherwise dealing with or disposing of businesses, including:
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- any share or interest in a business;
- the goodwill of a business; or
- any stocks connected with a business; or
- negotiating for the sale, purchase or exchange or any other dealing with or disposition of businesses, including:
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- any share or interest in a business;
- the goodwill of a business; or
- any stocks connected with a business.
In NSW, business brokers require licensing. A corporation that wants to carry out business agent activities must appoint a person who holds an unrestricted class 1 real estate agent licence or a class 1 real estate agent licence with a business agent restriction. These licences are issued by the NSW Office of Fair Trading.
The Exemption
In New South Wales (NSW), a person may be exempt from requiring a licence to provide business agent functions in certain conditions. Holding an AFSL or being an authorised representative of an AFSL holder is one of those conditions.
Section 5(5) of the Property and Stock Agents Act 2002 (NSW) provides an exemption from the requirement to hold a licence or certificate of registration for a person who holds an Australian Financial Services Licence (AFSL) under the Corporations Act, or a person who is an authorised representative of a financial services licensee. This means that if you hold an AFSL, you are able to exercise business agent functions in NSW without the need to obtain a separate licence or certificate of registration from the NSW Office of Fair Trading.
It is important to note that this does not apply to other legal obligations or requirements that may apply to the sale of businesses. If you are considering relying on this exemption, it is important to ensure that you comply with all other applicable laws and regulations.
If you are unsure whether you are eligible for an exemption, it is recommended that you seek legal advice or contact NSW Fair Trading for guidance.
Further Reading:
Section 5(5) of the Property and Stock Agents Act 2002 (NSW)