The corporate regulator has shared how many Australian financial services licences (AFSLs) were granted and rejected in the 2022-2023 financial year.
In its annual licensing report, ASIC detailed its licensing and professional registration activities between July 2022 and June 2023.
This is intended to increase transparency of ASIC’s activities and provide guidance to licensees about its decision making.
During the period:
- 1,272 AFS licence and credit licence applications were received
- 1,464 applications were finalised
- 332 new AFS licences were granted
- 149 new credit licences were granted
- 867 AFS and credit licence variation applications from existing licensees were granted
- 118 company auditor registrations were approved
The 1,272 applications received is a decline of 13 per cent on the previous financial year when 1,469 were granted which ASIC said is due to the fact that there were no licencing reforms in 2022-23. This meant there had been no triggers for new authorisations as had occurred in the 2021-2022 financial year.
ASIC said a decision was made on 50 per cent of AFS licence applications within 93 days which is 20 days faster than in the prior financial year. Some 70 per cent were granted within 152 days and 90 per cent were within 303 days, which was 48 days worse than in the prior year.
During the same period:
- 401 applications were withdrawn or rejected
- 515 licences were cancelled
- 26 licences were suspended
- 51 professional registration applications were withdrawn
- 4 professional registration applications were rejected
A decision on an application’s outcome was based on the quality of the information provided, complexity of the applicant’s business model, any adverse intelligence about the applicant and competing ASIC priorities and the volume of applications under consideration.
Applicants with complex applications are offered to opportunity to meet for discussion with ASIC early in the assessment process and engage with ASIC about substantive information requests.
Warren Day, chief executive of ASIC, said: “Our report highlights the important gatekeeping role served by ASIC’s licensing function. It ensures applicants seeking an Australian financial services licence, credit licence or professional registration meet the high standards required to provide these regulated services.
“We are continuing to make a number of improvements to ASIC’s licensing processes and systems. These include increased engagement with stakeholders during the application process, ongoing work to develop a new licensing portal and streamlining our workflow systems to make it easier for stakeholders to interact with ASIC.”
