ASIC’s “Report 671: Licensing and professional registration activities 2020 update” showed that just 379 new financial services licence applications were received in the 2020 year, down from 439 in the previous financial year.
The regulator reported an approval rate of 48 per cent for new AFS applications during the year, roughly the same proportion as the previous year. At the same time, 21 per cent of applications were not approved, up from a 23.5 per cent non-approval rate in 2019.
The data also indicated 31 per cent of applications had not been finalised at the end of the year, up from 29 per cent of applications the previous year.
ASIC noted in the report that “the broader economic impact of the COVID-19 pandemic has affected plans by applicants and licensees to commence business”.
The regulator said it had been flexible in its approach for applicants who were not able to access documents such as criminal history and bankruptcy checks in overseas jurisdictions.
“In response, we have accepted statutory declarations in a greater range of circumstances and have not required declarations to be notarised at an Australian consulate,” ASIC said.
Data in the report revealed a decline in the number of AFS licences that had had additional conditions imposed on them, from 20 in the 2019 financial year to 12 in the 2020 year.
There had also been a decrease in licences cancelled by ASIC, from 54 in 2019 to 47 in 2020.
The regulator said that where appropriate, it had been “flexible about not taking action to cancel licences”, and had extended the period new licensees had to begin operating before ASIC took action against them.
“In light of the impact of the COVID-19 pandemic, our intention is not to cancel a licence unless we identify specific concerns about the warehousing or commodification of the licence,” ASIC said.
“If we don’t identify any concerns, we will advise a licensee that we do not intend to cancel the relevant licence until at least February 2021, when we will expect further information to be provided by the licensee.”
I don’t call 4 weeks to approval slow…..
Was that your own experience? Mine too. I think there’s a lot of scare stories spread by the dealer groups about how slow and difficult it is to get an AFSL.
But if your practice is relatively small and simple, you have solid education & experience, and you get some help from one of the many consultants out there who can assist with manuals & procedures, it’s surprisingly quick and easy to get an AFSL.