Introduction

Licensing advisers via multiple third party AFS licensees is problematic, because it leads to licensee–adviser–client conflicts of interest from association and threatens adviser independence. Therefore, the background to licensing advisers in Australia, the US and the UK serves as a starting point to examine the legitimacy of current AFSL-AR licensing in Australia. Examining the legitimacy of current adviser licensing in Australia occurs with the development of a theoretical framework using agency theory, corporation legislation, legitimacy theories and the independent individual regulatory regimes in other professions.