ASIC’s latest report on its assessment of financial services and credit licensing applications shows that fewer applications are being approved without conditions.
ASIC is taking longer to process applications and is seeking more information about an applicant’s ability to competently provide the services.
In 2017-2018, ASIC considered approximately 2,879 applications, with 60 per cent relating to Australian Financial Services licence applications, 29 per cent relating to Australian Credit Licence applications and the remaining 11 per cent relating to professional auditor registrations.
AFS licences
Of the 1,167 AFS licence applications finalised, ASIC granted 303 new licences and 455 licence variations. Of the 758 AFS licence applications ASIC approved (including variations), ASIC imposed:
• a key person condition on 386 licences;
• an additional responsible manager requirement on 21 licences (five new licences and 16 variations); and
• modified authorisations on 154 licences.
ASIC declined to accept six responsible managers nominated by the AFS licensee (three new licences and three licence variations), as ASIC was concerned that they did not have the knowledge and skills to meet the organisational competence obligations.
Credit licences
During the relevant period, ASIC considered 822 credit licence applications (comprising 229 received during the relevant period and 593 received before the relevant period), and finalised 75% (618) of these in the period.
Of the 618 credit licence applications finalised, ASIC granted 408 new licences and 210 licence variations. Of the 430 credit licence applications (including variations) that ASIC approved during the relevant period, ASIC:
• imposed a key person condition on 278 licences;
• imposed additional conditions on six licences;
• required the appointment of an additional responsible manager for six licences (one new licence and five variations);
• modified authorisations sought on seven licences; and
• declined to accept three responsible managers nominated by credit licensee (two new licences and one variation), as ASIC was concerned they did not have the knowledge and skills to meet the organisational competence obligations.
