The corporate regulator has revised three of its regulatory guides for Australian financial services licences (AFSL) in a bid to reduce industry red tape and costs.
Under the changes, those wishing to apply for an AFSL will no longer need to lodge the signed application form and the supporting documentation in paper text nor will they need to certify true copies of ‘people proofs’ or background checks, with applicants now able to submit documents electronically.
The changes effect Regulatory Guide 1 AFS Licensing Kit: Part 1 – Applying for and varying an AFS licence (RG 1), Regulatory Guide 2 AFS Licensing Kit: Part 2 – Preparing your AFS licence or variation application (RG 2), and Regulatory Guide 3 AFS Licensing Kit: Part 3 – Preparing your additional proofs (RG 3).
ASIC commissioner Greg Tanzer said the changes would save industry “time and money”, and were important for small business operators.
“These updates reflect our commitment to efficient registration and licensing, essentially cutting red tape for business,” Tanzer said in a statement.
“We will also continue to review our policies and procedures to improve efficiency dividends for business where we can.”
The updated guidance has immediate effect.
Meanwhile, the regulator continues to examine the conduct of AFSL holders, with ASIC yesterday banning Sovereign MF director and officer Michael Grochowski from providing financial services for a four-year period.
Grochowski of Hampton, Victoria, was a director and officer of Sovereign MF from 12 May 2003 until his resignation in March 2010, ASIC said in a statement.
Sovereign holds an AFSL that authorises it to operate registered managed investment schemes, including the Sovereign Aged Care Property Fund.
An ASIC investigation found Grochowski failed to exercise the degree of care and diligence expected of a person in his position and responsible for operating a managed investment scheme.
ASIC also found Grochowski’s conduct as an officer of the company between December 2006 and March 2010 demonstrated a lack of understanding of the obligations imposed on Australian financial services licensees.
Grochowski has the right to appeal to the Administrative Appeals Tribunal to seek a review of ASIC’s decision.
In 2010, the directors of Sovereign, including Grochowski, resigned and sold all shares in the company.
As a result, new directors were appointed to Sovereign in March 2010.
ASIC is not pursuing any action against Sovereign or its current directors in relation to these issues.
