ASIC’s Licensing and professional registration activities: 2021 update (Report 700) outlines key issues, new and proposed changes to our licensing processes, and other work we have undertaken that affects licensees.
Between July 2020 and June 2021, ASIC received 1,883 Australian financial services licence (AFSL) and Australian credit licence (ACL) applications (a significant increase from 1,346 the previous year). The increase was mainly due to the licensing reforms relating to insurance claims handling and debt management services.
ASIC approved 458 new AFSLs and ACLs (compared to 394 last year). ASIC also approved 537 variation applications by existing licensees (the same as last year).
As part of our licence assessments, and in addition to granting or not granting licences, we achieved other regulatory outcomes including removing or adding authorisations and imposing additional conditions on licence and auditor applicants.
ASIC Chief Operating Officer Warren Day said the report outlines our important function to ensure licence and auditor applicants are fit and proper, competent, and appropriately licensed or registered for their business activities.
‘This is to ensure that the quality of participants and their businesses providing financial services or auditing services have satisfied the statutory requirements,’ Mr Day said.
‘In 2020-21, ASIC implemented reforms requiring litigation funding scheme operators, insurance claims handling services and debt management services firms to be licensed.’
‘Importantly, the report acknowledges the impact of the ongoing COVID-19 pandemic and our continued flexibility during these times.’