ASIC is once again calling for reforms – this time requesting there be more “rigorous” tests for those wishing to be granted a licence by the corporate regulator.
Addressing the parliamentary joint committee on corporations and financial services on Friday, ASIC deputy chairman Peter Kell said that by implementing tougher check points in the application process, this will help weed out unfit candidates earlier.
“The barriers of entry to getting a licence, in our view, have not been robust enough. And then on the other hand, the ability to take away a licence is more difficult than it should be, which is the opposite of the combination that you would wish,” he said.
“We believe that having more rigorous tests before a licence is granted can create an ability to not back a licence if we do not think the firm is equipped to satisfy the requirements.
“It would allow us, to in effect, knock some of the poor players out at the entry gate rather than down the track.”
However, others would argue that the current system in place is not exactly a smooth process.
Speaking to ifa, financial services lawyer Sophie Gerber, who is a director at Sophie Grace Compliance and Legal, said it has been taking longer than usual lately to receive an AFSL.