The AFSL, issued by the Australian Securities and Investments Commission (ASIC), serves as a regulatory cornerstone that governs the provision of financial services within Australia. From ensuring market integrity to safeguarding investors' interests, the AFSL license stands as a symbol of trust, transparency, and professionalism in the financial industry.

The basic steps you need to follow when obtaining an AFSL are:

1. Determine which authorisations you want 

Financial services are defined in the Act as (included but not limited to):

• Provide financial product advice

• Deal in a financial product by:
  – issuing, applying for, acquiring, varying or disposing of a financial product
  – applying for, acquiring, varying or disposing of a financial product on behalf of another person

• Make a market for financial products

• Underwrite a financial product

• Provide a custodial or depository service

• Operate a registered managed investment schemes

• Provide a claims handling and settling service.

There are some financial products that are defined by ASIC:

• Securities

• FX contracts

• Derivatives

• Superannuation

• Debentures, stocks or bonds issued or proposed to be issued by a government

• Deposit and payment products

• Insurance product

• Standard margin lending facility

• Interests in managed investment schemes

• Managed discrectionary accounts

• Retirement savings accounts

2. Choose your Responsible Managers 

It is essential to ensure that the individuals appointed as Responsible Managers (RMs) in your application possess the appropriate expertise and experience to demonstrate the organizational competence necessary for each of the authorizations your business is seeking. Typically, ASIC mandates that RMs should meet the following criteria:

Have at least 3 of the last 5 years' experience or 5 of the last 8 years' experience providing financial services under an AFSL with similar authorizations.

1. Hold a tertiary level qualification, such as an Advanced Diploma in Financial Services or a Bachelor's Degree in disciplines like Business, Commerce, Economics, or Finance.

2. For any retail advice authorizations, RMs must either have an RG146 qualification for general advice or meet the Financial Adviser Education Standards for personal advice.

3.Prepare the necessary paperwork for submission to ASIC

The AFSL application necessitates providing essential documentation that acts as evidence of your organization's capacity to adhere to regulatory responsibilities. These documents may encompass:

1. A5 business description

2. B1 organizational competence

3. Cash flow projection

4. Derivative statement

5. Human resource statement

6. Outsourcing statement

4.Supplementary Evidentiary Documents

The specific authorizations your business is pursuing for its AFSL application will determine the need for additional proof documentation, as stipulated by ASIC.

Timeframe and Application Process:

The timeframe for obtaining an AFSL license can vary depending on the intricacy of your business model and the completeness of the documentation submitted. Typically, the process may take anywhere from 6 to 12 months. Rest assured, our team will offer an estimated timeline and diligently assist you through each stage of the application process. We prioritize meeting all necessary requirements promptly to expedite the application and ensure a smooth and efficient approval process.