The
Australian Securities and Investments Commission (ASIC) has initiated a pilot
program for a new digital portal designed to make the life easier for companies
applying for Australian Financial Services (AFS) licenses.

So far, the
new portal has only launched in a test version, but it is expected to be fully
implemented for applicants and those already holding AFS authorization by the
beginning of 2025.

ASIC Pilots Digital Portal
to Modernize AFS Licensing Process

The tool
was officially launched in a pilot version on August 12, by invitation from
ASIC only. In its final version, however, it will serve license holders to
manage their authorizations or submit requests for withdrawal. Companies,
including FX/CFD brokers, will also use it to apply for new licenses.

ASIC aims
to fully implement the new portal in the first quarter of 2025.

It aims to
simplify the licensing experience for applicants, which is quite complicated in
Australia, by offering a more user-friendly interface and a streamlined
application process. Key features include pre-filling information already known
to ASIC and presenting only relevant questions to each applicant, potentially
reducing the time and complexity involved in obtaining or modifying an AFS
license.

During the
pilot phase, which involves a select group of new AFSL applicants, existing
licensees and applicants will continue to use the current eBusiness licensee
portal.

“ASIC is
using the pilot as an opportunity to take on board any feedback to make
continuous improvements to the AFSL application process and transaction flows
before we go live for all AFS license applications, scheduled for the first
quarter of 2025,” the regulator commented.

AISC is
also closely monitoring the prop trading firms market, which has been
dynamically emerging in recent months, including the participation of retail brokers.

ASIC Implements Key
Changes Affecting CFD Brokers

The Australian
market watchdog has recently rolled out several others significant changes that
CFD brokers should be aware of.

In July,
ASIC called on AFS licensees to conduct a thorough review of their financial
advisers’ information on the Financial Advisers Register. This request came
after the regulator’s spot checks uncovered numerous errors and inconsistencies
in the recorded data, a finding that has important implications for FX/CFD
brokers.

The
regulator identified several issues during its review, particularly concerning
qualifications and training courses incorrectly marked as “approved”
on the register. Common mistakes included mismatched qualification wording,
incorrectly listing professional designations as approved qualifications, and
erroneously marking bridging courses or non-approved qualifications as
approved.

Earlier in
the year, ASIC unveiled its new Professional Registers Search (PRS) tool, which
became operational in late June 2024. This innovative tool offers users
enhanced search capabilities, allowing them to query multiple register
databases simultaneously for licenses and registrations.