ASIC grants just over 1 in 2 AFSL applications received in FY23

In a statement on Thursday, the corporate regulator said it received 633 applications for a new Australian Financial Services Licence (AFSL) in the 2022–23 financial year, of which it granted 332 licences or 71 per cent of the finalised applications.

As many as 138 applications were finalised but not approved, while 163 remained incomplete. The total number of granted new licences was well below the 415 granted in FY2021–22, and just under the 339 granted the year prior.

Variations of AFSLs numbered 805 during the reviewed period, with 509 said to have been approved by 30 June.

With the addition of the newly approved licences, the total number of AFSLs stood at 6,325 at the end of June, up by just under 150 on the year prior.

Commenting on the figures, the Australian Securities and Investments Commission’s (ASIC) chief executive officer, Warren Day, said: “Our report highlights the important gatekeeping role served by ASIC’s licensing function”.

“It ensures applicants seeking an Australian financial services licence, credit licence or professional registration meet the high standards required to provide these regulated services.”

Also in the reviewed period, ASIC said 64 SMSF auditors applied for licensing, of which 44 were registered, 18 withdrew their application, and nine had not been finalised by the end of June.

As such, the number of SMSF auditors registered as of the end of June was 4,410, which is some 700 less than a year earlier.

Regarding credit licence applications, ASIC said 149 had been approved, taking the total number to 4,675.

During the FY22–23, 401 licence applications were withdrawn or rejected for lodgement, 515 licences were cancelled, and 26 licences were suspended. In addition, 51 professional registration applications were withdrawn and four were refused.

Mr Day added that the regulator is “continuing” to make improvements to its licensing processes and systems.

“These include increased engagement with stakeholders during the application process, ongoing work to develop a new licensing portal and streamlining our workflow systems to make it easier for stakeholders to interact with ASIC.”

ASIC’s licensing report is released annually in an effort to increase transparency and provide guidance to licensees, professional auditor registrants, and prospective applicants about ASIC’s licensing and professional registration decision making.