ASIC has cancelled two Australian financial services licenses and 11 credit licenses for failing to meet regulatory requirements, as it continues to tighten compliance and streamline licensing processes.
The affected licensees failed to comply with requirements such as maintaining membership with the Australian Financial Complaints Authority (AFCA), lodging compliance certificates, and paying levies owed to ASIC.
These actions were taken under ASIC’s authority to cancel licenses when obligations under the Corporations and Credit Acts are not met.
ASIC’s investigation found that some licensees had also ceased operating financial services or credit businesses.
“AFCA membership gives consumers access to a free, fair, and independent dispute resolution scheme if a complaint cannot be resolved internally by a Licensee,” ASIC said, reinforcing the importance of this requirement.
Alongside the cancellations, ASIC released its 2023-24 report on licensing and registration activities, providing transparency on regulatory decisions.
The report, Licensing and Professional Registration Activities: 2024 Update (REP 797), outlined the number of applications received, processed, and approved, as well as the licenses and registrations cancelled or suspended.
Between July 2023 and June 2024, ASIC processed 1,246 applications for new and varied AFS and credit licenses, approving 280 new AFS licenses and 143 new credit licenses.
The report also highlights 239 AFS licenses and 204 credit licenses being cancelled or suspended over the same period.
ASIC’s report also touches on current and upcoming challenges in the licensing process, including the regulation of digital assets, buy now pay later (BNPL) services, and evolving payment systems.
“ASIC’s licensing and professional registration function plays a key gatekeeping role by ensuring new licensees and registered professionals meet the necessary thresholds,” ASIC commissioner Alan Kirkland (pictured above) said.
ASIC aims to modernise its application systems by launching a new digital portal for licensees, which is expected to improve the ease and efficiency of applying for, maintaining, and modifying licenses.
ASIC’s cancellations are part of its ongoing effort to ensure compliance within the financial services industry.
License holders who failed to meet their obligations, such as AFCA membership or lodging financial statements, faced regulatory action, including suspension and cancellation of licenses.
This rigorous approach continues to be a priority as ASIC tightens oversight on licensing and professional registration, aiming to protect consumers and uphold industry standards.
To enhance transparency and efficiency, ASIC is revamping its licensing processes, enabling faster application turnaround and introducing digital solutions.
“We’re also building a new digital portal for AFS licensees and applicants to make it easier and more efficient to apply for, maintain, and vary their licence,” Kirkland said.
The initiative, along with ASIC’s ongoing engagement with stakeholders, underscores the regulator’s commitment to streamlining processes while maintaining its rigorous standards.
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