ASIC licence cancellations drop for FY23–24

In its latest report on its licensing activities, REP 797 Licensing and professional registration activities: 2024 update, the Australian Securities and Investments Commission (ASIC) said it received 1,531 licensing and registration applications, and finalised 874 new and variation Australian Financial Services Licences (AFSL) applications during the 2023–24 financial year.

This figure represented a 2 per cent increase in applications, however, AFSL finalisations decreased 17 per cent on the previous year with 874.

There was also a significant drop in the number of AFSLs that were cancelled or suspended at 269 – down about 18 per cent on 2022–23. Among this group, 29 were cancelled by ASIC, 212 were cancelled at the firm’s request and 28 were suspended.

In FY22–23, 45 AFSLs were cancelled by ASIC, 260 cancelled at the firm’s request and 24 were suspended.

A further 44 professional registrations were withdrawn and two were refused during the financial year.

The regulator added that it had approved 111 AFSL applications received during FY23–24 with additional regulatory outcomes, 64 were approved without any additional regulatory outcome, and 57 were rejected for lodgement. There were also 17 withdrawn before the start of the assessment and four withdrawn after assessment had begun.

An additional 66 AFSL applications received prior to July 2023 were approved with additional regulatory outcomes and 48 were approved without additional regulatory outcome.

ASIC also said that it decided on 80 per cent of new AFSL applications and 75 per cent of AFSL variation applications within 150 days.

“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 said.

“This year we are continuing to improve ASIC’s licensing processes and systems through our stakeholder and applicant engagement process.

“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, enabling a modern and user-friendly application process.”