ASIC Issued 339 AFS Licenses in 2020-21

The Australian Securities and Investments Commission (ASIC) has updated its licensing and registration activities, reporting that it approved 339 new Australian financial services (AFS) between 1 July 2020 to 30 June 2021.

According to the results, ASIC received 1,883 new and variation AFS and credit licence applications in the 12 months, significantly higher than 1,346 in the previous 12 months. The increase relates mostly to requirements for new persons or entities to hold an AFS or credit licence or additional authorisations.

ASIC highlighted that more AFS and credit licence applications were withdrawn or refused – a total of 392 against 365 in the previous financial year. In addition, the Australian regulator noted that it finalised 50% of AFS licence applications within 93 days, 70% within 145 days and 90% within 251 days.

The regulator further outlines key issues related to licence applications and licensing approach. These issues are particularly relevant for recent applicants or for entities who are planning to apply for a new or varied licence.

“We are aware that the broader economic impact of the COVID-19 pandemic has affected some applicants’ intended commencement dates,”ASIC said.”Although the law enables ASIC to cancel a licence when a licensee has not commenced operation within six months of the licence being granted, as at 30 June 2021 we had extended this period for 27 licensees due to pandemic-related issues.”

“We will continue to adopt a flexible approach in responding to unforeseen impacts of the pandemic, provided that investor protection and market integrity are maintained,”the regulator added.