ASIC has released its annual licensing report: Report 772 Licensing and professional registration activities: 2023 update (REP 772).

The time to make decisions for AFS Licences has worsened while the time to make decisions for Credit Licences has improved:

• a decision is made on 50% of AFS licence applications within 93 days (20 days faster than in 2021–22), on 70% within 152 days (one day faster than in 2021–22) and on 90% within
  303 days (48 days worse than in 2021–22);
• a decision is made on 50% of credit licence applications within 14 days (26 days faster than in 2021–22), on 70% within 65 days (40 days faster than in 2021-22) and 90% within 213 days (33 days faster than in 2021–22).

ASIC says that the assessment of applications is not an automatic administrative process, as it subjects
each application to a risk rating and assess it on its particular facts.

ASIC says there are a number of factors that can affect how long an assessment will take.

These include:

• the quality of the application, and any additional information requested;
• the complexity of an applicant’s business model and authorisations sought;
• any adverse intelligence about the applicant or its relevant personnel; and
• competing ASIC priorities and the volume of applications under consideration.

The report discusses new and proposed process changes, and notes other ASIC work that affects licensees including:

• Greenwashing
• Scams
• Consumer remediation
• Reportable situations
• Financial Accountability Regime
• Payment system modernisation and crypto-assets
• Compliance with the design and distribution obligations
• Product intervention power.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.