All holders of an Australian Financial Services License (AFSL) with a retail client authorisation will need to comply with ASIC’s internal dispute resolution (IDR) reporting framework. Summary reports will need to be provided to ASIC on a 6 monthly basis, highlighting the status of each client complaint. Reporting obligations commence from 1 July 2023 (for reporting in January or February 2024). AFSL holders should put systems in place now to ensure all required information is being captured.Read More
The Australian Securities & Investments Commission (ASIC) has announced changes to its service charter standard for processing licence applications effective immediately. Under the updated standard, ASIC will decide 70% of licence applications within 150 days, and 90% of applications within 240 days. The previous timeframes were 60 days and 120 days respectively. ASIC has attributed this increase to an increasingly robust and risk-based approach to its assessment of licence applications.
In addition, a new fees-for-service regime will commence on 1 July 2018. It will apply to document compliance reviews, licence applications or variations, applications for registration, requests for changes to market integrity rules or procedures and applications for relief. There will be fee increases across the board for lodging ASIC forms, with the exception of certain registry activities which will now be exempt from payment of fees.
For fintech startups looking to operate in Australia, the hurdle of obtaining an AFSL is often daunting. An AFSL application can be expensive and time consuming but it’s rarely necessary to obtain an AFSL from day one. Whether it’s through an exemption, relief or authorisation, there’s usually another way.