The Australian Securities and Investments Commission (ASIC) has introduced changes which will reduce the amount of paperwork required to be submitted as part of an application for an Australian financial services (AFS) licence by over 50 per cent.

Mr Malcolm Rodgers, Executive Director, Regulation said ASIC has reduced the documents that must accompany an initial application for a licence to a maximum of four documentary ‘proofs’.

‘In some instances, ASIC might need to ask for additional paperwork to enable it to assess an application fully, but for most applicants four proofs will be sufficient,’ Mr Rodgers said.

‘The information that ASIC needs to assess a licence application varies, and the type and number of documents ASIC requests depends on its analysis of the applicant’s business and the kinds of products and services they plan to provide,’ Mr Rodgers added.

‘In making these changes to our processes, we are not lowering the bar for licence applicants, but rather we are drawing on our regulatory experience to remove the need for extensive paperwork where we are confident we understand the applicant’s business,’ he said.

Changes to ASIC’s AFS Licensing Kit will see the introduction of a new three-part structure:

• Part 1 explains how to apply for a licence, and how to later apply for a variation to it;
• Part 2 covers technical issues applicants will encounter when completing their licence or variation application. It also identifies the core proofs that must be provided by all applicants when they lodge their application with ASIC;
• Part 3 explains any additional proofs that ASIC may ask for later on.

‘Anyone with an application that ASIC is currently considering, or who is in the process of finalising their application, will not need to resubmit or change their licence application,’ Mr Rodgers said.

‘ASIC will make any necessary changes internally and contact individuals if we require additional information. For people who are thinking about making a new application but haven’t yet started, the revised licensing kit will be an invaluable guide.’

Further information regarding the changes to ASIC’s AFS Licensing Kit are available on the ASIC website at www.asic.gov.au/afsl.

Background

The Financial Services Reform Act 2001 introduced a single AFS licensing regime for people in the business of providing financial services, such as dealing in financial products and providing financial advice. This regime was phased in over a two-year transition period ending on 10 March 2004.

As at November 2005, ASIC has issued 4,498 AFS licences. ASIC has also processed 1,454 requests to vary these licences.

As at November 2005, the number of authorised representatives appointed by AFS licensees is 51,093. However, this figure counts each appointment of an authorised representative rather than each single authorised representative. This is because some people or entities are authorised to represent more than one licensee. The following table indicates how many authorised representatives AFS licensees have:

Download a copy of the AFS Licensing Kit