ASIC approves 578 new licences in FY22
The Australian Securities and Investments Commission (ASIC) today released its annual licensing report for the period between July 2021 and June 2022. The report outlines ASIC’s licensing and professional registration activities, discusses new and proposed changes to its licensing processes, and notes other work that affects licensees.
Between July 2021 and June 2022 ASIC:
- received 1,469 Australian financial services (AFS) and Australian credit licence (licences) applications;
- finalised 1,859 licence applications (35% more than last year);
- approved 578 new licences (26% more than last year);
- approved 867 licence variation applications from existing licensees (61% more than last year); and
- approved the registration of 89 company auditors, 40 SMSF auditors and note that the liquidator registration committee approved the registration of 21 liquidators.
In the same period 416 licence applications were withdrawn or rejected for lodgement, 558 licences were cancelled and 12 licences were suspended. In addition, 21 professional registration applications were withdrawn and 11 were refused.
Regulatory reforms related to insurance claims handling and settling services, debt management and corporate collective investment vehicles (CCIVs) impacted ASIC’s licensing activities and regulatory guidance in the period covered by the report.
Since releasing the last licensing update, the Financial Regulator Assessment Authority (FRAA) has completed its first review of ASIC, which included an assessment of ASIC’s licensing function. FRAA’s overall assessment is that ASIC’s licensing function is broadly effective, and the licensing team is capable, although somewhat constrained by limited resourcing and technology.
In targeted interviews, industry commented that the portal was old and not intuitive, with one noting that the portal has not changed since 2008. Stakeholders noted that once an application has been lodged, the licensing portal does not update on the progress of applications. Applicants must seek to obtain updates directly from the licensing team, which the team is not always resourced to respond to.
Feedback from ASIC echoed these views. The ASIC staff survey found that software and digital tools for licensing activities are perceived by many staff as ‘ad hoc’ and ‘basic’. In a focus group with senior ASIC licensing staff members, it was suggested that a more automated portal presented a clear opportunity to reduce manual processing and address current gaps in the licensing workflow process.