As reported by our colleagues at Traction Fintech and Finance Feeds, newly granted powers to the Australian Securities and Investments Commission (ASIC) have allowed the regulator to effectively cancel the AFSL and ACL licenses of firms who remain inactive.
As such, the Australian regulator has the ability to immediately cancel an AFSL or ACL if the licensee hasn’t commenced its business within six months of being granted its licence, or from the 18th of February 2020 for existing AFSL or ACL holders. Furthermore, the regulator can cancel the licences if the entity has ceased to operate a financial services or credit business.
As highlighted by TRAction Fintech, which provides trade and transaction regulatory reporting services for financial products, including OTC FX and Derivatives, if a company is a body corporate, ASIC may cancel their licences by giving them written notice once the six month period has ended. Specifically, the company advises that if the six month period ends and a licensee has not provided the services authorised by their AFSL or ACL then they must lodge a notification with ASIC 15 business days at the conclusion of the six-month period.