Stronger regulatory tools proposed for ASIC would make it harder for those looking for an AFSL to buy their way into the market, argues financial services law firm Sophie Grace.
According to Alicia Pevely, the firm’s manager for licensing and compliance, with AFSL applications taking longer to be processed, the option to purchase a self-licensed business, and therefore its licence, has been an attractive alternative for many international investors.
But that is expected to change now that the government is slated to grant ASIC the power to approve – or fail to approve – these types of sales.
“[The proposed power] will give ASIC more scope to limit and control the instances of international investors purchasing and continuing to operate a range of AFSLs – a trend which we have seen becoming more prevalent over recent years with the market value of AFSLs steadily increasing,” Ms Pevely said.
Alicia works across both Sophie Grace Pty Ltd and Sophie Grace Legal Pty Ltd with a particular focus on compliance and legal services. She manages the licensing and compliance aspects of the business. She is responsible for AFSL and ACL applications, variations and assists the compliance team in the implementation of compliance reviews. She provides ongoing compliance support and assists with the preparation of legal advice, commercial agreements and disclosure documents.