Australia's financial markets regulator has announced the approval of 332 new Australian Financial Services (AFS) licences in FY2023.。In addition, 509 AFS licenses, 149 credit licenses and 114 AFS licenses were approved.。

AFS New License

In addition to the approved applications, the Australian Securities and Investments Commission (ASIC) has completed 360 AFS and credit licence applications, but has not yet approved them.。Last year, the regulator received 1,272 licence applications.。

In the last fiscal year, ASIC issued 578 new licenses while receiving 1,469 applications for both licenses.。

ASIC is Australia's top financial markets regulator, which issues licences and oversees all activities in the industry.。Financial services companies, including foreign exchange margin and contract for difference (CFD) providers, must obtain an AFS license to provide services in the country。

"The report highlights the important gatekeeping role of ASIC licensing in ensuring that applicants for financial services licences, credit licences or professional registrations in Australia meet the high standards required to provide these regulated services.。ASIC CEO Warren Day said.。

"We are continuing to make a number of improvements to ASIC's licensing process and systems, including enhanced engagement with stakeholders during the application process, ongoing development of new licensing portals, and streamlining the workflow to make it easier for audiences to interact with ASIC.。"

In addition to the new licences, ASIC withdrew (or rejected) 401 licence applications and cancelled a further 515 licences.。In addition, 26 licenses were revoked。

ASIC in Action

Licences cancelled by ASIC last year included those of FTX Australia, a local entity of now-bankrupt Sam Bankman-Fried's FTX Group.。The regulatory action comes just months after FTX, its sister company Alameda Research and about 130 other global affiliates filed for bankruptcy protection.。

Meanwhile, ASIC is taking tough action against those who violate its design and distribution obligations.。Recently, it sued the local operator of the Kraken cryptocurrency exchange for failing to meet these obligations with its margin products; eToro was also sued in a similar lawsuit for failing to identify its CFD customers.。