A new ASIC report reveals it has received an “atypically large” volume of AFSL cancellation applications as a result of its industry-based funding model.
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.
Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.
You can contact him on [email protected].
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