ASICs Licensing Liaison Meeting March 2017 ASICs Licensing

  • Slides: 31
Download presentation
ASIC’s Licensing Liaison Meeting March 2017

ASIC’s Licensing Liaison Meeting March 2017

ASIC’s Licensing Team Warren Day – Senior Executive Leader, Assessment & Intelligence Regional Commissioner

ASIC’s Licensing Team Warren Day – Senior Executive Leader, Assessment & Intelligence Regional Commissioner of Victoria

WELCOME Ø Introduction Ø ASIC's focus Ø ASIC's Innovation Hub Ø Upgrade to ASIC's

WELCOME Ø Introduction Ø ASIC's focus Ø ASIC's Innovation Hub Ø Upgrade to ASIC's Technology Platform and Portals

Limited licences – 3 year transition Number of Limited AFS applications received by month

Limited licences – 3 year transition Number of Limited AFS applications received by month 500 450 400 350 300 250 200 150 100 50 0 Jul Oct Jan Apr 201320132013201420142014201420142014201520152015201520152015201620162016

Limited licences – Assessing the applications

Limited licences – Assessing the applications

ASIC’s Innovation Hub

ASIC’s Innovation Hub

Upgrade to ASIC's Technology Platform and Portals Ø Significant opportunity Ø Common integrated work

Upgrade to ASIC's Technology Platform and Portals Ø Significant opportunity Ø Common integrated work flow systems across ASIC Ø What it means for service providers and licensees? ØSmart forms ØBetter guidance and information

ASIC’s Licensing Team James Nott Senior Manager, Operations

ASIC’s Licensing Team James Nott Senior Manager, Operations

INDUSTRY SEGMENTS AND AREAS OF FOCUS • Licensing – workload and key statistics •

INDUSTRY SEGMENTS AND AREAS OF FOCUS • Licensing – workload and key statistics • Hot topics • Risk Assessment

WORKLOAD & KEY STATISTICS – Volume

WORKLOAD & KEY STATISTICS – Volume

WORKLOAD & KEY STATISTICS – AFS (Full)

WORKLOAD & KEY STATISTICS – AFS (Full)

WORKLOAD & KEY STATISTICS – AFS (Variation)

WORKLOAD & KEY STATISTICS – AFS (Variation)

WORKLOAD & KEY STATISTICS – Credit (Full)

WORKLOAD & KEY STATISTICS – Credit (Full)

WORKLOAD & KEY STATISTICS – Credit (Variation)

WORKLOAD & KEY STATISTICS – Credit (Variation)

WORKLOAD & KEY STATISTICS – Company Auditors

WORKLOAD & KEY STATISTICS – Company Auditors

WORKLOAD & KEY STATISTICS – SMSF

WORKLOAD & KEY STATISTICS – SMSF

WORKLOAD & KEY STATISTICS - Liquidators • Finalised 65 Applications – 40 Registered company

WORKLOAD & KEY STATISTICS - Liquidators • Finalised 65 Applications – 40 Registered company liquidator applications – 25 Official liquidator applications • Insolvency Law Reform Act 2016 and the Insolvency Practice Rules (Corporations) 2016, commenced on 1 March 2017

Overall - WORKLOAD & KEY STATISTICS

Overall - WORKLOAD & KEY STATISTICS

Workload & Service Charter • • • Volume Resources Transitioning accountants ‘whole-of-ASIC’ approach Going

Workload & Service Charter • • • Volume Resources Transitioning accountants ‘whole-of-ASIC’ approach Going forward

Hot topics • Speculative foreign exchange • Misleading & deceptive conduct

Hot topics • Speculative foreign exchange • Misleading & deceptive conduct

Misleading & deceptive conduct Concerns Action • Statements of personal • Basis for refusal

Misleading & deceptive conduct Concerns Action • Statements of personal • Basis for refusal information in licensing • Working closely with applications Enforcement • Statutory declarations & – Administrative other certificates – Refer to Commonwealth DPP • Proposed business, controllers & operations

Critical Issues & Risk Assessment Business model Clarity, consistency etc. Intelligence Authorisations Scale Competence

Critical Issues & Risk Assessment Business model Clarity, consistency etc. Intelligence Authorisations Scale Competence & Capacity Service providers

ASIC’s Licensing Team Peng Lee Senior Manager, Legal & Policy

ASIC’s Licensing Team Peng Lee Senior Manager, Legal & Policy

Legal & Policy update - Licensing • Fintech businesses • Managed discretionary accounts •

Legal & Policy update - Licensing • Fintech businesses • Managed discretionary accounts • ASIC Enforcement powers

Legal & Policy update - Licensing Fintech businesses • Digital financial product advice: RG

Legal & Policy update - Licensing Fintech businesses • Digital financial product advice: RG 255 and RG 105 – one responsible manager that meets minimum training and competence standards for advisers (RG 255. 36) • ASIC Sandbox - testing and validation: RG 257 and RG 105 – Conditional relief for eligible products and eligible services: ASIC Instruments 2016/1175 & 2016/1176 – RG 105 - greater flexibility for some “small-scale, heavily automated businesses” - Responsible Manager without day-today involvement in the business to provide regular sign-off (RG 105. 26)

Legal & Policy update - Licensing

Legal & Policy update - Licensing

Legal & Policy update - Licensing Managed Discretionary Accounts: RG 174 and Instrument 2016/968

Legal & Policy update - Licensing Managed Discretionary Accounts: RG 174 and Instrument 2016/968 • • • Revocation of ASIC’s regulated platform no action letter Need to vary licence to obtain a ‘deal by issuing’ authorisation Appropriate experience under no-action letter will be accepted Increased PI and fraud insurance required Transition: – for those who relied on CO 04/194: by 1 Oct 2017 – for those who are relying on the no-action letter: by 1 Oct 2018 – Everyone else that’s new to MDAs after 1 Oct 2016: from 1 Oct 2016 • Some of the new requirements: – Non-limited recourse investments – Managing conflicts of interest

Legal & Policy update - Licensing ASIC Enforcement Taskforce Review: • to assess the

Legal & Policy update - Licensing ASIC Enforcement Taskforce Review: • to assess the suitability of the existing regulatory tools available to ASIC to perform its functions adequately • Looking at civil/criminal penalties, alternative enforcement mechanisms, disgorgement of profits, banning powers • The adequacy of licensing powers, including the threshold for granting or refusing to grant a license, the circumstances in which ASIC may vary, suspend, or cancel licences

ASIC’s Financial Advisers Team Melbourne - Joanne Comrie and Li-Na Neoh Sydney - Violet

ASIC’s Financial Advisers Team Melbourne - Joanne Comrie and Li-Na Neoh Sydney - Violet Wong and Nicole Chew

Surveillance & Compliance Wealth Management project Financial Adviser Register

Surveillance & Compliance Wealth Management project Financial Adviser Register

DISCUSSION

DISCUSSION