The Australian Securities and Investments Commission (ASIC) has issued an update on its licensing and professional registration activities for the 2023-24 financial year.
The report, titled Report 797 Licensing and professional registration activities: 2024 update (REP 797), provides insights into ASIC’s ongoing licensing regime for Australian financial services (AFS) and credit licensees.
The report also covers several areas, including licensing trends related to digital assets (such as cryptocurrencies), Buy Now Pay Later (BNPL) services, and payment systems.
ASIC Commissioner Alan Kirkland said: “ASIC’s licensing and professional registration function plays a key gatekeeping role by ensuring new licensees and registered professionals meet the necessary thresholds. The report provides guidance to AFS and credit licensees and financial services industry professionals about ASIC’s rigorous licensing and professional registration decision-making processes.
“‘This year we are continuing to improve ASIC’s licensing processes and systems through our stakeholder and applicant engagement process. We’re also building a new digital portal for AFS licensees and applicants to make it easier and more efficient to apply for, maintain, and vary their licence, enabling a modern and user-friendly application process.”
Between July 2023 and June 2024, ASIC received 1,531 licensing and registration applications and finalized 1,246 of them. This includes:
- 280 new AFS licences and 143 new credit licences
- 495 variations to existing AFS and credit licenses
- Registration of 113 company auditors, 45 SMSF auditors, and 17 liquidators
- In the same period, ASIC canceled or suspended 239 AFS licenses and 204 credit licenses.
The annual licensing report aims to provide transparency and guidance for AFS licensees, service providers, and prospective applicants on the application process and ASIC’s decision-making criteria.
Quick summary of the ASIC report
The report covers key statistics, reforms, and regulatory updates relevant to Australian financial services (AFS) and credit licensees.
Key Statistics (July 2023 – June 2024)
- 1,531 applications for new and varied AFS and credit licences were received.
- 874 AFS licence applications and 372 credit licence applications were finalized, a 17% and 9% decrease from the previous year, respectively.
- 239 AFS and 204 credit licences were cancelled or suspended.
- Professional registrations included 113 company auditors, 45 SMSF auditors, and 17 liquidators.
Key Issues
ASIC emphasized its risk-based approach to licensing, focusing more resources on complex, high-risk applications. It also highlighted the role of additional regulatory outcomes, such as conditions placed on responsible managers or key-person conditions imposed on applications.
Reforms and Future Developments
- Digital Assets: The Treasury’s proposal for a regulatory framework requires crypto asset platforms to obtain AFS licences.
- Buy Now Pay Later (BNPL) Services: New laws mandate BNPL providers to hold credit licences.
- Payments Systems Reform: Payment services providers will need to apply for AFS licences, expanding ASIC’s regulatory scope in this area.
- Upcoming Licensing Portal: ASIC is launching a new AFS licensing portal in early 2025, designed to simplify and streamline the application process, making it more user-friendly and efficient.
AFS licensing portal pilot commences
“On 12 August 2024, we commenced a pilot to trial the new AFS licensing portal. The pilot involves a limited number of applications for new AFS licences. Throughout the pilot phase, all other AFS licence applicants and existing AFS licensees will continue to use the existing ASIC Regulatory Portal to apply for, maintain and vary their licence. We are using the pilot as an opportunity to take on board any feedback to make continuous improvements to the application process and transaction flows before the portal is launched for all AFS licence applications. The launch is scheduled for the first quarter of 2025,” ASIC said on the report.
