ASIC calls for haste on FSR licences

TheAustralian Securities and Investments Commission(ASIC) has advised those applying for new licences under the new Financial Sector Reform Act (FSRA) to be prompt and use the electronic application service provided on the ASIC website.

ASIC deputy chair, Jillian Segal warned that despite the two year transitional period to the new FSR regime for existing industry players, ASIC had neither the resources or the capacity to process late applications.

“Don’t leave it late because we will be busy preparing for FSRA and we won’t be able to deal with processing mass applications,” she says.

“I wouldn’t want you to think you were not warned. We will not have the staff capacity,” Segal says.

She also confirmed that unlike the transition to the Managed Investments Act (MIA), ASIC would not be able to individually guide people through the application process and advise them if they have not filled it in correctly.

“ASIC won’t be holding your hand. We will be just sending it back to you,” Segal says.

ASIC’s licensing project head Pauline Vamos says because of this situation, people are strongly advised to read the legislation and submit their application for a new licence via the Internet.

“A key message is get in early and start tailoring your application,” she says.

Online applications have a built in mechanism so that once applicants start typing in their details, the application will disregard questions that do not relate to that person or business.

Vamos estimates a streamlined application could take three to four days to process, however one that is missing information could take up to three months due to the delay in people getting back to ASIC with the required information.

Further, there is a cost difference between applying online and doing it manually. Vamos says it costs $220 electronically while it costs $480 manually.