When is a responsible manager liable?

A responsible manager (RM) is not personally liable for any compliance or regulatory breaches that are committed by the AFSL holder. However ASIC has the power to impose banning orders on the responsible manager where he/she has materially failed to comply the obligations that apply to responsible managers. A banning order may be limited to a ban on providing financial services or from managing any financial services business. Such bans may be for life or a period of time.