ASIC looks to simplify AFSL application process
ASIC is piloting a new portal to improve the process of applying for, varying, or cancelling an Australian financial services licence (AFSL).
This will streamline and simplify the digital application experience by pre-filling information that is already known to ASIC and only presenting questions which are relevant to each application’s situation.
A pilot commenced with a limited number of new AFSL applications on 12 August which is being used to provide feedback to the process and transaction flows before it formally launches in the first quarter of 2025.
During this time, all other AFSL applications will continue using the existing system.
ASIC said: “The AFS licence project is a part of the wider digital transformation ASIC is making towards becoming a more efficient and data-informed regulator.
“ASIC’s objective is to provide a single digital front door, which offers a convenient and intuitive entry point for all stakeholders, including regulated entities and consumers in their digital interactions with ASIC.”
AFSLs are needed if an individual provides financial product advice, deals in a financial product, operates a registered scheme, or provides a superannuation trustee service, among others. An AFSL is needed from the first day a financial services business begins to operate.
The pilot comes as a growing number of financial advisers look to set up their own AFSL and go self-licensed. Money Management previously wrote how the time and cost of these can mount up, especially at the start of the setup process.
The ASIC registration cost for an individual AFSL varies from $2,233 for an individual working with retail clients and low-complexity products to $5,025 for retail clients and high-complexity products.
There may also be professional fees to a compliance firm and/or legal firm regarding preparing the application to ensure it is all in order to prevent an unsuccessful application.
Once an application has been submitted and approved, there are also ongoing costs including the ASIC levy, which is estimated to be a minimum of $1,500 plus $2,878 per adviser for the 2023–24 financial year, an AFCA membership of $375 for financial firm members, financial auditing, adviser and licensee reviews, external compliance support, technology and more.
AUTHOR
Laura Dew
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