Want to Become a CFD Broker in Australia? ASIC Has an Important Update for You

Thursday, 29/08/2024 | 07:51 GMT by Damian Chmiel
  • The Aussie regulator introduces a new digital portal for license applicants.
  • It aims to streamline the process of obtaining AFS authorization, which is used by CFD firms.
Sydney, Australia

The Australian Securities and Investments Commission (ASIC) has initiated a pilot program for a new digital portal designed to make 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 other 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.

The Australian Securities and Investments Commission (ASIC) has initiated a pilot program for a new digital portal designed to make 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 other 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.

About the Author: Damian Chmiel
Damian Chmiel
  • 1831 Articles
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About the Author: Damian Chmiel
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
  • 1831 Articles
  • 41 Followers

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