ASIC grants 303 new AFS licenses from July 2017 to June 2018

Maria Nikolova

Of the 1,167 AFS licence applications finalised, ASIC granted 303 new licences and 455 licence variations.

The Australian Securities & Investments Commission (ASIC) has earlier today posted some numbers concerning Australian financial services (AFS) licensees, Australian credit licensees, lawyers, application service providers, and professionals working in financial services. The report describes the key regulatory issues and ASIC’s activities regarding licensing and professional registration. It focuses on the period from July 1, 2017 to June 30, 2018.

During the relevant period, the regulator considered 1,728 AFS licence applications (comprising 1,226 received during the relevant period and 502 received before the relevant period), and finalised 68% (1,167) of these.

Of the 1,167 AFS licence applications finalised, ASIC granted 303 new licences and 455 licence variations. Of the 758 AFS licence applications approved (including variations), the regulator 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) amid concerns that they did not have the knowledge and skills to meet the organisational competence obligations.

A total of 202 AFS licence applications were withdrawn before ASIC made a formal determination.

The Australian regulator has also shown rigor when it comes to saying “no” to applicants. ASIC refused 11 AFS licence applications during the relevant period (seven new AFS licence applications and four AFS licence variation applications). The watchdog says the number of applications refused would have been much higher if applicants had not withdrawn their applications in response to ASIC’s feedback rather than proceeding to a formal determination.

During the relevant period, ASIC suspended 12 AFS licences due to the licensee’s circumstances (for instance, where the licensee entered into external administration), or as initiated by ASIC (non-enforcement related). Such suspensions may originate from complaints by the public, or from surveillance activities initiated by ASIC or other persons (for example, a breach notification provided by the auditor or where the licensee fails to comply with the conditions on its licence).

ASIC notes that in cases where a cancellation or suspension occurs, it may still specify that statutory obligations remain in place. Such obligations may include continuing to hold PI insurance, maintain membership of AFCA or lodge accounts.

During the relevant period, ASIC cancelled 191 AFS licences. Of these:

  • 160 licences were cancelled at the request of the licensee. The main reason licensees gave for requesting a cancellation is that they had ceased to conduct a financial services business as a result of retirement or the sale of their client list and/or business; and
  • 31 licences were cancelled following action ASIC initiated (non-enforcement related). The main reason for ASIC initiating the cancellation of an AFS licence was because the licensee entered into external administration or the regulator deregistered the licensee.

Read this next

Industry News

21 Republican representatives want to “End the Fed”

“Americans are suffering under crippling inflation, and the Federal Reserve is to blame.”

Retail FX

Scope Markets launches unleveraged trading

“Whilst our traditional contract for difference (CFD) products continue to prove incredibly popular, the Invest account is unleveraged and only allows ‘long’ positions to be taken, a combination that significantly reduces the risk of capital losses.”

blockdag

Unlocking Profit Potential: Earn Returns with DecodeEX Experience Bonus!

DecodeEX, the innovative brokerage subsidiary of Decode Global, announced its experience bonus campaign, offering every user the opportunity to maximize their strategic trading potential with up to $10,000 in experience bonus. 

Market News

Pretiorates’ Thoughts 28 – Precious metals and base metals out of control

Ten days ago we mentioned in Pretiorates’ Thoughts 26: Chapter 2 should start with Precious Metals.

Retail FX

Webull launches discount brokerage in Malaysia

“Making investing more inclusive and accessible to all, Webull Malaysia brings best-in-class tools and information to empower investors of all levels with knowledge and skills to help them make better investment decisions and achieve their investment goals.”

Digital Assets

Hidden Road adds OKX’s Nitro Spreads into prime brokerage

“Hidden Road continually seeks to increase market access and capital efficiency through expanded prime brokerage offerings. Integrating OKX’s Nitro Spreads product builds upon this philosophy by extending our counterparties’ ability to execute risk-managed arbitrage strategies.”

blockdag

Dev Release 31: BlockDAG’s SHA-3 Upgrades Propel Crypto Mining Innovation as Miner Sales Approach 5800 Units

Learn about BlockDAG’s 31st Development Release, which includes advanced SHA-3 updates and a significant increase in miner sales, driving advancements.

blockdag

BlockDAG Dominates 2024 Crypto Trends: Surpasses $28M in Presales Amid Strategic Partnerships

Explore BlockDAG, Shiba Inu, and Kaspa Killer’s rise in 2024’s crypto market, focusing on BlockDAG’s $28M presales, strategic partnerships, and innovative technology.

blockdag

BlockDAG’s $30 by 2030 Valuation Prediction and Roadmap Reveal Gains Traction From Filecoin and XLM Investors

Discover why BDAG’s $30 price prediction by 2030 outshines Filecoin Investors’ hopes and XLM’s recent surge with a booming presale and clear roadmap.

<