ASIC overhauls licensing requirements
The corporate regulator has released updated versions of the licensing requirements for Australian financial services (AFS) licensees, and subsequently withdrawn three licensing guides that are no longer necessary.
The updated versions of “Policy Statement 166 Licensing: Financial requirements” (PS 166) and “Pro Forma 209: Australian financial services licence conditions” (PF 209) have been amended after industry queries about the application of the Australian Securities Investments Commission’s (ASIC) financial requirements policy and some of the existing licence conditions.
According to ASIC, the updates contain a number of clarifications and illustrations that will assist licensees and practitioners in applying ASIC’s policy, and complying with their licence conditions and effectively reflecting the commercial circumstances of certain businesses.
The announced changes to ASIC’s policy on financial requirements include, firstly, AFS licensees who are eligible providers being able to add a percentage of non-current assets (minus any intangibles and non-current liabilities) to the calculation of their ‘surplus liquid funds’.
The second amendment applies to the standard adjustments that need to be made by AFS licensees who underwrite financial products that are subject to statutory exposure periods.
As a result of these changes, ASIC has also withdrawn three licensing guides, as they are now already incorporated into PS 166, the AFS Licensing Kit and the planned update of “Policy Statement 164 Licensing: Organisational capacities” (PS 164).
The guides to be withdrawn are: “Meeting the financial requirements for your AFS Licence: Compliance with Policy Statement PS 166—An ASIC guide” (January 2004); “Responsible officers: Demonstrating compliance with organisational competency obligations — An ASIC Guide” (July 2003); and “Small business and your AFS Licence: Compliance with Policy Statements 164 and 181 — An ASIC Guide” (December 2004).
Recommended for you
ASIC has cancelled the AFSL of a Perth financial services firm following payments to its clients by the Compensation Scheme of Last Resort after a failed managed investment scheme.
Bravura chief executive Andrew Russell has announced he will be stepping down from the company, just under two years after his appointment.
Financial advice businesses with a younger, wealthier client base are enjoying higher valuations and increased attention from potential buyers than those with older clients.
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
