The AFSL application process for the ASIC Regulatory Portal has changed and is quite different from the previous, and now discontinued, ASIC Licensing Portal. As it can be time consuming if you are unprepared, here are some tips to make the process more efficient.
Before you start, be prepared to think, plan and make the application in a different way than you may have done before the change. Where written explanations are required, the Regulatory Portal aims to limit the amount of information to be submitted. In many instances, the required answers are simply Yes or No, but some of the questions are unclear and are open to interpretation.
Prior to commencing the application, think carefully about your intended business operations and why you would require certain licence authorisations. It is crucial to understand what aspects of your intended business require licensing and which of your products are regarded as financial products or credit services and products.
Save the information, page by page, as the responses are inserted. For some pages, there is no possibility of a simple “Save” command. Instead, it is necessary to hit the button “Save and Close” then return to where you left off to continue with the application. The process is not one that allows much time for a break as the system will automatically close after a certain time.
If the new information you have just added has not been saved, it will be lost and you will have to input the information again. Always save the page before you decide to take a short break.
Presentation of the information is important to the application. When you prepare your new information, you must focus on what is appropriate, your English and grammar and the word limit. Some questions require written explanations with word limits of 2,000 or 5,000 words. Responses are best prepared offline in Word format that will enable you to cut and paste the information into the system and make further slight modifications as required. The system does not allow much opportunity for formatting, but it does allow paragraphs to be created.
Once you have selected the section you wish to view, you cannot skip sections to get to the next section you wish to review or amend. You must go through each intervening section before you get to the target section. To avoid this delay, hit the button “Save and Close” then return to the application to access the desired section.
It is inadvisable to make applications based on template licence applications in the hope of making a successful application with little investment in time and effort. ASIC can identify/detect template applications and the outcome will not be favourable to you. If you have complex structures or processes, it is advisable to prepare diagrams that will enable the ASIC officer to better understand the information. It is also inadvisable to apply for a large range of authorisations in the hope of getting a licence that will enable you to potentially provide many types of financial services and products unless you plan to provide specific products and services related to these authorisations.
The description of the inherent risks associated with the anticipated growth of the business requires you to think about the potential risks which your intended business will face. One important risk is the ability to comply with the regulatory requirements of your future business. You must comply with the licence conditions, relevant parts of the Corporations Act and Regulations and financial services laws as soon as ASIC issues the Australian Financial Services Licence. You must maintain all the relevant documents for at least seven years, taking into account the requirements of several laws. You must also consider the guidelines issued by the different regulators of the financial services laws, which is their interpretation of the law that they administer.
In the licence application, you will be asked if you have documented certain compliance processes, so it is advisable to prepare your compliance manual and document certain processes when making the application. You should make the application and prepare compliance documents only if you are confident that you are nominating the right responsible managers who can meet the licensing requirements, and that you will have sufficient financial, human resources and IT resources for your intended operations.
If you would like to have expert assistance to obtain your own Australian Financial Services Licence and be confident that your application could be successful, please email Know Compliance at admin@knowcompliance.com.au or phone 0411 578 642 or (03) 9689 1186 for a free discussion about your requirements and a quote for the licence application and compliance documents.