Five reasons ASIC will reject your licence application

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ASIC rejects 30% of AFS licence applications and 24% of credit licence applications. In this article, we explain why it rejects applications and give you tips on how to avoid becoming a statistic. In 2017/2018, ASIC approved just 40% of all Australian financial services licence (AFSL) applications and 49% of credit licence applications. Many licence […]

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Can’t get mandatory PI cover? Here’s what to do

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Some financial services and credit licence applications are being delayed because licensees simply cannot buy professional indemnity (PI) insurance. We outline what to do if this is happening to you. The Royal Commission has made it more difficult for licensees to get PI insurance The insurance market has hardened following the Royal Commission. This is […]

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Changes to ASIC licensing

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At a liaison meeting between ASIC and professional licensing consultants in March this year, we were warned not to expect a return to the good ol’ days of 2 month turnarounds on AFS and credit licence applications – ever! It seems that ASIC considers 6 months to be an acceptable minimum. Here’s why. According to […]

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Recruitment choices can affect your compliance

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Employing someone with a conviction or bankruptcy can jeopardise compliance with an Australian Financial Services (AFS) licensee’s obligations. ASIC can ban any person it considers to not be of ‘good fame and character’. It can suspend an AFS licence if a significant representative of a licensee is banned, or if ASIC believes the licensee will […]

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3 tips to write an SOA your clients want to read

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Most clients don’t read Statements of Advice (SoA) because they are far too long. This renders them ineffective and exposes advisers to the risk that their client may not understand the advice they’ve been given. If things go wrong down the track it may even leave advisers on the hook if the SoA is not […]

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New tough approach to licensing

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ASIC is now taking a tougher approach on AFS and ACL licence applications – they’re refusing to accept applications for lodgement if they don’t contain all the required material and they’re taking a more detailed and rigorous approach to assessing applications. Lodgement failures On lodgement of an AFS or credit licence application, ASIC initially checks […]

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Financial Advice Register: Time is running

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Sonia Cruz Individuals who provide personal advice to retail clients about financial products have until 30 May 2015 to update their details on ASIC’s Financial Adviser Register in order to avoid late fees. This applies to employees, directors and authorised representatives of AFS licensees – unless they only advise on basic deposit products, general insurance […]

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More paperwork for advisers

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Financial advisers will need to keep additional records proving they’ve complied with the Best Interests Duty when they give personal advice to retail clients after 23 March 2015. The Fold Legal (The Fold)’s senior compliance consultant, Sonia Cruz, says advisers will be required to keep records of how they acted in a client’s best interests; […]

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