In the current regulatory environment, it is more important than ever to ensure a new AFS licence (AFSL) application or variation application is prepared and lodged with the highest quality information, is appropriate for the applicant's financial services business, and complies with the AFS laws and regulatory policy.
Here, partner Elliott Stumm takes a close look at ASIC's recent licensing activity report which makes for interesting reading, particularly in relation to the AFSL regime. The report sets out the regulatory outcomes for the period 1 July 2018 to 30 June 2019.
The report highlighted the following outcomes for the period:
ASIC reminded applicants that being granted a licence is a privilege and not a right, and ASIC cannot grant a licence unless it is satisfied about each of the matters it is required to consider under legislation. For this reason, applicants should be aware that ASIC cannot grant a licence, or approve a variation, unless an applicant provides all relevant information requested and ASIC is satisfied the applicant meets all standards imposed by law.
The types of additional outcomes in the relevant period included imposing a key person condition, changing the authorisations granted, tailoring authorisations, appointing an additional responsible manager, imposing additional conditions and rejecting a responsible manager.
ASIC also pointed out that it may cancel an AFSL for a range of reasons, including where the licensee:
Also, ASIC cancelled/suspended four AFSLs for a failure to obtain membership of the Australian Financial Complaints Authority scheme.
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