The Australian Securities & Investments Commission (ASIC) released its annual licensing report on Friday, revealing that it has approved 578 new licenses between July 2021 and June 2022, which is an increase of 26 percent from the prior year.
The regulator received a total of 1,469 applications for the Australian Financial Services (AFS) license and Australian Credit License in the period. Additionally, the finalized application figure went up 35 percent to 1,859.
Furthermore, ASIC approved 867 license variation applications from the existing license, which is a jump of 61 percent from the previous year.
Meanwhile, the Aussie regulator withdrew or rejected 416 license applications for lodgement. Another, 558 licenses were cancelled, while 12 were suspended. On top of that, it withdrew 21 professional registration applications and refused 11.
“The report outlines our important license assessment work and gatekeeping role to maintain high standards in the financial services and credit industries,” said ASIC’s Commissioner Danielle Press.
“Our gatekeeping role is highlighted by our assessment of debt management firm license applications. Fourteen debt management firm applicants withdrew their applications following questions and concerns raised by ASIC during [the] assessment. This was at a rate nearly three times higher than a typical credit licensing application.”
A Reputed Supervisor
ASIC supervises the financial markets in Australia. Thus it licenses and oversees all financial services companies operating in the country, including FX and CFDs brokers, which are operating in the country with an AFS license.
The retail brokerage industry in the country has been rattled in recent years by the large-scale failure of USGFX and ForexCT. However, ASIC is still handing out licenses to retail FX and CFDs brokers: Moneta Markets received an AFS license earlier this year.
In its four-year corporate plan revealed earlier, ASIC highlighted that its focus will be on technical risks of trading platforms. Earlier this week, it warned market intermediaries, including brokers, against the possibilities of identity theft and fraud amid the Optus data breach.
