In Fiscal Year 2022, ASIC Approved 578 New Licenses

On Friday, the Australian Securities and Investments Commission (ASIC) issued its annual licensing report, disclosing that it authorized 578 new licenses between July 2021 and June 2022, a 26 percent increase over the previous year.

During that time, the regulator received 1,469 applications for the Australian Financial Services (AFS) license and Australian Credit License. In addition, the number of completed applications increased by 35% to 1,859.

ASIC also authorized 867 license variant applications from existing licenses, a 61 percent increase over the previous year.

Meanwhile, the Australian agency rescinded or rejected 416 licensing applications. In addition, 558 licenses were revoked, and 12 were suspended. Furthermore, it rescinded 21 professional registration applications and denied 11.

“The report highlights our critical license assessment work and gatekeeping responsibility in maintaining high standards in the financial services and credit sectors,” said ASIC Commissioner Danielle Press.

“Our review of debt management business license applications exemplifies our gatekeeping responsibility.” Fourteen debt management business applicants withdrew their applications after ASIC raised issues and concerns throughout the review process. This was roughly three times the rate of a standard credit license application.

ASIC oversees Australia's financial markets. As a result, it licenses and supervises all financial services businesses operating in the nation, including FX and CFD brokers with an AFS license.

The large-scale collapses of USGFX and ForexCT have shaken the country's retail brokerage business in recent years. ASIC is still issuing licenses to retail FX and CFD brokers like Moneta Markets did earlier this year.

ASIC said in its previously disclosed four-year business strategy that it would concentrate on the technological dangers of trading platforms. It cautioned market intermediaries, including brokers, earlier this week about the risks of identity theft and fraud in the aftermath of the Optus data leak.

ASIC Facts

The Australian Securities and Investments Commission (ASIC) is an independent Australian government entity that serves as the country's business regulator. It was founded on July 1, 1998, in response to the Wallis Inquiry's recommendations. The purpose of ASIC is to enforce and regulate corporate and financial services laws in order to safeguard Australian consumers, investors, and creditors. The Australian Securities and Investments Commission Act, 2001, established ASIC's jurisdiction and scope.

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