Accountants and Limited AFSLs – time is running out and the process is now not so easy!!

There are just 4 months of the licensing period remaining where recognised accountants can streamline to a limited AFS licence. The transition period of three years ends on 30 June 2016.

Be warned that, as with previous transitional licensing processes, ASIC may publicly state that they will not be able to guarantee that applications will be finalised by 30 June 2016 if they are submitted in say, May or June.

Potential applicants need to be aware that the licensing process is not as straight forward as it was and it is not uncommon to receive a number of requests for further information or clarification therefore extending the assessment period.

ASIC is currently requiring more information from applicants than detailed in the Recognised Accountants Limited Licence checklist. Be prepared to provide additional documentation in relation to the methods of operations of the proposed business and also to provide authorisations for ASIC to contact your accounting body in relation to your application for an AFS Licence. You may also be asked to provide further details of the RG 146 course you have completed.

In addition to the tips provided in earlier Know Compliance Blogs be aware that ASIC will analyse the cash flow projections and also the financial statements provided with the application. Incorporating a company with minimal capital and a basic cash flow projection will result in additional requisitions during the assessment process. You may need to provide additional documentation detailing how the applicant company will meet its obligations.

If you wish to apply for a limited AFS Licence, we can assist you through this process so that you can focus on what you do best and broaden your business opportunities.