ASIC provides new guidance for certain AFS licence applications

ASIC has released an information sheet AFS licensing – Requirements for certain applicants to provide further information (INFO 240) to provide guidance to applicants on recent changes to the regulator’s Australian financial services (AFS) licensing assessment procedures.

ASIC Executive Director – Assessment & Intelligence, Warren Day said, “ASIC has reviewed the AFS licence assessment processes and has streamlined its assessment processes in some limited respects. This is designed to avoid unnecessary delays that may arise when ASIC seeks additional information during an assessment.”

This information sheet provides guidance on the additional information ASIC now requires that is above and beyond what is requested in the existing AFS licence application forms.

These changes apply to:

  • applicants that are a body corporate;
  • applicants that are Australian Prudential Regulation Authority-regulated bodies; and
  • applicants that are proposing to offer certain financial services or to operate in specific circumstances,

and are required to provide additional information to ASIC.

This will enable ASIC to ascertain whether it has reason to believe an applicant is likely to contravene its legislative obligations, including to deliver financial services ‘efficiently, honestly and fairly’ and to ensure that the responsible officers of a body corporate applicant are of good fame or character.

The AFS Licensing Kit (Regulatory Guides 1, 2 and 3) remain relevant to all AFS licence applicants and applicants should have regard to this in conjunction with INFO 240.