ASIC releases licence approval numbers
The Australian Securities and Investments Commission (ASIC) received 970 Australian financial services licence (AFSL) applications during the January-June 2015 period, of which 386 were approved, and 113 were rejected for lodgement.
ASIC's second licensing activity report said the corporate regulator had finalised 61 per cent (594) of the total applications in this period. It approved 149 new licences and 237 licence alterations.
It suspended nine AFSLs and cancelled 98 AFSLs.
The corporate regulator said and seven applicants were refused licences altogether, while 88 lodgements were withdrawn, adding that many more licences would have been refused if they were not so many withdrawals.
Many applicants withdrew their applications as a result of ASIC's feedback rather than moving to a formal determination.
Of the 386 applications that were approved, 71 per cent (274) were approved with changes to the original application, while a key person condition was enacted on 239 licences.
The corporate regulator also imposed an extra responsible manager requirement on 19 licences (seven new and 12 variations), and rejected five responsible managers selected by the AFSLs.
"We were concerned they did not have the knowledge and skills to meet the organisational competence obligations, even though the licence applications were approved," the report said.
ASIC continued to push accountants to attain licences to continue offering self-managed super fund advice after the accountants exemption is removed in July 2016, reporting that 160 limited licences had been lodged, out of which ASIC had granted 70 licences.
"Accountants who do not lodge applications that meet ASIC's requirements by 1 March 2016 run a significant risk that their application will not be assessed before 30 June 2016."
AUTHOR
Malavika Santhebennur
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