ASIC cancels licenses and updates licensing exercise

ASIC has cancelled two Australian monetary providers licenses and 11 credit score licenses for failing to satisfy regulatory necessities, because it continues to tighten compliance and streamline licensing processes.

ASIC cancels a number of monetary and Credit score licenses

The affected licensees didn’t adjust to necessities similar to sustaining membership with the Australian Monetary Complaints Authority (AFCA), lodging compliance certificates, and paying levies owed to ASIC.

These actions have been taken below ASIC’s authority to cancel licenses when obligations below the Companies and Credit score Acts will not be met.

ASIC’s investigation discovered that some licensees had additionally ceased working monetary providers or credit score companies.

“AFCA membership provides shoppers entry to a free, truthful, and unbiased dispute decision scheme if a grievance can’t be resolved internally by a Licensee,” ASIC stated, reinforcing the significance of this requirement.

ASIC’s licensing {and professional} registration replace

Alongside the cancellations, ASIC launched its 2023-24 report on licensing and registration actions, offering transparency on regulatory selections.

The report, Licensing and Skilled Registration Actions: 2024 Replace (REP 797), outlined the variety of purposes acquired, processed, and authorized, in addition to the licenses and registrations cancelled or suspended.

Between July 2023 and June 2024, ASIC processed 1,246 purposes for brand new and assorted AFS and credit score licenses, approving 280 new AFS licenses and 143 new credit score licenses.

The report additionally highlights 239 AFS licenses and 204 credit score licenses being cancelled or suspended over the identical interval.

Addressing rising points

ASIC’s report additionally touches on present and upcoming challenges within the licensing course of, together with the regulation of digital belongings, purchase now pay later (BNPL) providers, and evolving cost techniques.

“ASIC’s licensing {and professional} registration operate performs a key gatekeeping position by guaranteeing new licensees and registered professionals meet the required thresholds,” ASIC commissioner Alan Kirkland (pictured above) stated.

ASIC goals to modernise its utility techniques by launching a brand new digital portal for licensees, which is predicted to enhance the benefit and effectivity of making use of for, sustaining, and modifying licenses.

Stricter compliance measures result in license cancellations

ASIC’s cancellations are a part of its ongoing effort to make sure compliance throughout the monetary providers business.

License holders who failed to satisfy their obligations, similar to AFCA membership or lodging monetary statements, confronted regulatory motion, together with suspension and cancellation of licenses.

This rigorous method continues to be a precedence as ASIC tightens oversight on licensing {and professional} registration, aiming to guard shoppers and uphold business requirements.

Bettering licensing processes

To boost transparency and effectivity, ASIC is revamping its licensing processes, enabling quicker utility turnaround and introducing digital options.

“We’re additionally constructing a brand new digital portal for AFS licensees and candidates to make it simpler and extra environment friendly to use for, preserve, and differ their licence,” Kirkland stated.

The initiative, together with ASIC’s ongoing engagement with stakeholders, underscores the regulator’s dedication to streamlining processes whereas sustaining its rigorous requirements.

For extra data, see the ASIC media releases right here and right here.

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