The Australian Securities and Investments Commission (ASIC) will launch a new digital portal on 5 May 2025 for managing Australian financial services (AFS) licences. The platform will allow users to apply for, vary, and cancel licences, representing a key advancement in ASIC’s broader digital transformation strategy.
The upcoming AFS licence portal is intended to replace the current system with a more streamlined and user-friendly interface. It will offer features such as pre-filled data fields and tailored application pathways, with the goal of reducing processing times and improving the experience for licensees and applicants.
Pre-filled data fields and tailored application pathways
Until the new system goes live, applicants and current AFS licence holders may continue to use the existing portal to manage their licence obligations.
ASIC confirmed that the eligibility requirements and core application content will remain unchanged. Regulatory Guides 1–3, commonly referred to as the AFS Licensing Kit, will be updated to reflect the portal’s revised structure and functionality, though the underlying policies will stay the same.
The regulator stated that the new portal will collect essential information at the outset of the application process, helping to streamline internal workflows and provide faster turnaround for applicants. Supporting guidance materials will be made available on ASIC’s website during the transition to help users adapt to the new interface.
The initiative forms part of the RegistryConnect program, ASIC’s ongoing effort to improve and stabilize its registry services while moving toward a more data-informed and efficient regulatory framework. The new portal is designed to act as a single digital entry point for regulated entities and consumers interacting with ASIC’s services.
ASIC to Add Relief Measures to AFSL Holders
Earlier this year, ASIC proposed additional relief measures to assist Australian financial services and credit licensees in complying with the reportable situations regime. These measures aim to reduce the reporting burden while ensuring ASIC continues to receive reports of high regulatory value.
ASIC suggests exempting licensees from reporting certain breaches of misleading and deceptive conduct provisions, as well as specific civil penalty contraventions, provided the following conditions are met:
- Rectification Period: The breach is rectified within 30 days of its occurrence, including any necessary remediation.
- Consumer Impact: No more than five consumers are affected.
- Financial Loss: The total financial loss or damage to all impacted consumers does not exceed $500, even if the loss has been remediated.
- Exclusions: The breach does not involve contraventions of client money reporting rules or clearing and settlement rules.
- Licensees are reminded of their obligation to have systems in place to identify, escalate, investigate, rectify, and document incidents and breaches as part of their general duties.
The reportable situations regime, introduced in October 2021, requires licensees to promptly identify, address, and report potential misconduct. Compliance with this regime aims to elevate industry standards and enhance consumer outcomes, while also providing ASIC with valuable regulatory intelligence.
ASIC released 2025 Key Issues Outlook
ASIC recently released its 2025 Key Issues Outlook, highlighting critical areas within its regulatory remit. These priorities reflect emerging challenges affecting Australia’s financial system, including market dynamics, fraud prevention, cybersecurity, and the impacts of natural disasters.
ASIC emphasized its role as a proactive regulator safeguarding Australian businesses, markets, and consumers. It identified increased market volatility, geopolitical changes, AI advances, and cyber risks as significant factors shaping its focus for the year.
ASIC plans to review the governance of retail private credit funds as part of its broader surveillance activities. The commission will examine asset valuation and liquidity management practices to adapt to evolving market dynamics. This initiative aligns with efforts to ensure transparency in private markets, which operate differently from public markets and carry inherent risks.
ASIC noted that approximately three million Australians will become eligible to draw from their superannuation in the next decade. To address these changes, ASIC will publish findings on member services and enforce action where necessary. Complaints about superannuation fund services have doubled between 2021 and 2023, underscoring the need for trustees to meet members’ evolving needs.
ASIC continues efforts to combat financial fraud, including scams involving cryptocurrency and celebrity endorsements. Over 7,300 scam websites have been removed since 2023, with the Investor Alert List updated weekly. ASIC collaborates with the ACCC’s National Anti-Scam Centre to share intelligence and mitigate threats.
Addressing unsuitable superannuation advice is another priority. ASIC observed high-risk investments facilitated through superannuation platforms and will take enforcement action against misconduct targeting retirement savings. Surveillance assessing the quality of financial advice for self-managed super funds is underway.
Cybersecurity remains a critical area of concern. ASIC expects organizations to maintain robust risk management frameworks and has investigations underway to ensure compliance. It will provide guidance based on findings from sector reviews.
ASIC highlighted issues with general insurers’ claims handling following natural disasters. Persistent delays in claims processing and poor communication will be scrutinized to ensure insurers meet customer needs amid increasing climate change impacts.
The Clearing House Electronic Subregister System (CHESS) replacement project by ASX is under ASIC’s close watch. ASIC, in collaboration with the RBA, will oversee its implementation to maintain market confidence and operational integrity.
ASIC also flagged concerns over poor-quality climate-related disclosures and greenwashing. It will support entities with guidance on reporting obligations while scrutinizing misrepresentations of environmentally friendly investment strategies.
Audit quality remains a focus, with ASIC emphasizing the importance of auditor independence. It plans to ensure compliance with legislative requirements to uphold market confidence.
Finally, ASIC is monitoring banks’ financial hardship practices, particularly amid cost-of-living pressures. Lenders are expected to improve support for customers experiencing financial difficulties.
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