In its overview of licensing and professional registration applications between July 2018 and June 2019, ASIC cancelled 342 AFSLs and suspended 11 AFSLs within the 12-month period.
The report found 288 of those AFSL cancellations were made on request to ASIC, while the remaining 54 were cancelled by ASIC.
By comparison, ASIC cancelled 191 AFSLs between July 2017 and June 2018, and 214 AFSLs between July 2016 and June 2017.
ASIC also had set a target of finalising 90 per cent new AFSL applications within 240 days.
However, it only finalised 86 per cent of new AFSL applications between July 2018 and June 2019.
“We did not meet our performance standard for the number of new AFS Licence applications finalised within 240 days,” ASIC said.
“This was in part due to a need to finalise an atypically large volume of cancellation applications as a result of the introduction of the industry-based funding model.”
ASIC noted that when a cancellation or suspension occurs, it may still specify that statutory obligations remain in place.
“Such obligations may include the continuation of professional indemnity insurance, continuation of membership with an external dispute resolution scheme and continuation of the obligation to lodge accounts,” ASIC said.
I wonder could it be that it just is not profitable to be a licensee anymore in this industry due to all the BS red tape and other costs being imposed by ASIC and government?
“We did not meet our performance standard for the number of new AFS Licence applications finalised within 240 days,” ASIC said….. I then hereby decree that ASIC Staff and commissioners be taken to the federal court for not acting in the best interest of its customers and fined $9million for every late application processed. Then on top of that given 100 lashes each.
AFSLs aren’t impressed by ASICs extra fees for no service
Wonder if ASIC will need fo reduce resourcing with less advisers to regulate? Or will they increase the adviser levy to keep their funding and resources?
Given time ASIC will have nobody to regulate
The reduction in adviser numbers will also cause a reduction in the number of licensees.
I would expect M & A activity to increase in the next twelve months.
ASIC the fastest growing employer in the financial services industry me thinks….. Could be jobs in the processing factory for some of the advisers leaving the industry.