AFSL Update from 16 June 2025: Key Changes for Your Business

Introduction

Navigating the Australian Financial Services Licence (AFSL) application process is a critical step for any financial services business. As of 16 June 2025, the Australian Securities and Investments Commission (ASIC) has implemented significant changes, moving all AFSL transactions to the new ASIC Regulatory Portal.

For businesses looking to apply for an AFSL or manage an existing licence, understanding this updated digital framework is essential for ensuring a compliant and efficient process. This guide provides a clear overview of the key updates, detailing what the transition to the new portal means for your AFSL application and your business.

The New AFSL Application Process for Your Financial Services Business

Transitioning to the ASIC Regulatory Portal

Effective 16 June 2025, a significant change has been implemented for any business looking to apply for an AFS licence. All AFSL application processes have transitioned from the old eLicensing system to the new ASIC Regulatory Portal. This move marks a shift away from legacy paper-based forms, such as the FS01 and FS03.

Instead of forms, all applications for new licences, variations, or cancellations are now managed as online ‘transactions’ within the portal. This digital-first approach is designed to streamline how your financial services business interacts with ASIC for all licensing matters.

Understanding the Portal’s Role in AFSL Transactions

The ASIC Regulatory Portal is now the central hub for managing most of your AFS licence application and maintenance tasks. This centralisation means you can complete a wide range of essential functions through a single online platform.

Key AFSL-related transactions that are now handled exclusively through the portal include:

• Applying for an AFS licence: All new applications must be initiated and submitted through the portal’s dedicated online transaction.
• Varying or cancelling a licence: Any requests to change the authorisations and conditions of your licence or to cancel it must be made online.
• Notifying of changes: The portal is used to inform ASIC of significant updates, including changes in control of the AFS licensee or other licence details.
• Managing responsible managers: You can notify ASIC of any changes to the details of your nominated responsible managers.
• Submitting financial statements: The portal facilitates the submission of your AFS licence annual financial statements.
• Handling auditor appointments: You can use the portal to notify ASIC about or apply to ASIC regarding AFS licensee auditor appointments.

Key Changes to Your AFSL Application

Moving from Legacy Forms to Online Transactions

The process to apply for an AFSL has been streamlined with the move to the ASIC Regulatory Portal. This significant change means all aspects of your application are now managed digitally in one place, from initial submission to subsequent variations or notifications.

Key changes to the application process include:

• Paper-based and eLicensing forms (such as the FS01 for new applications and FS03 for variations) are no longer used
• These have been replaced by integrated online ‘transactions’ within the portal
• All application components are now managed in a single digital environment

A New Approach to Proof Documents & Information

A significant change to the AFSL application is the removal of the previous requirement to submit separate “core” and “non-core” proof documents. Now, this information is collected through tailored questions within the online application itself, simplifying the submission process.

Furthermore, the new system introduces “People Proofs” as the only supporting documents you need to upload directly through the portal. At the same time, the amount of upfront information required has been reduced. For instance, applicants are no longer required to provide:

• Business references for responsible managers
• Australian bankruptcy certificates for fit and proper persons
• Initial financial statements and financial resources information

Enhanced Flexibility in Authorisation Selections

When you apply for an AFS licence through the portal, you can be much more specific in selecting the authorisations your business requires. This enhanced flexibility allows for more precise tailoring of your licence to your operational needs.

The new system allows for several specific combinations, including:

• Mixing client types: You can combine retail, wholesale, or both client authorisations for different financial services and products. For example, some services can be limited to wholesale clients only, while others are available to retail clients.
• Specifying advice types: For financial product advice, you can limit the authorisation for some products to general advice only, while offering personal advice for others.
• Detailing dealing services: Applicants can now select authorisations for dealing, arranging, or both, and specify the subtype of dealing activity, such as issuing or underwriting a financial product.
• Hedging purposes: You can select authorisations for derivatives and foreign exchange contracts specifically for hedging purposes, which reduces the number of subsequent questions in the application.

How to Apply for an AFS Licence After the June 2025 Update

Registering & Using the ASIC Regulatory Portal

The first step to apply for an AFS licence is to register for an account on the ASIC Regulatory Portal. This portal is now the mandatory platform for all AFS licence application transactions.

The registration process involves several key steps:

• Go to the Portal Homepage: Begin by selecting the ‘Register’ button on the ASIC Regulatory Portal homepage.
• Select Your Intention: You will be prompted to choose what you want to do on the portal. For a new AFSL application, you can simply select ‘I just want to register’.
• Enter Your Details: Provide the requested personal details, including an email address that will serve as your username for the account.
• Agree to Terms: You must read and accept the User Agreement and Privacy Policy to proceed with the registration.
• Confirm Your Email: ASIC will send a confirmation link to your email address, which you must click to verify your account.
• Set Your Password: Finally, create a secure password that meets the specified criteria to complete your account setup.

Preparing Your Information & Supporting Documents

Before you begin your AFSL application on the portal, it is essential to prepare all necessary information and documentation. A thorough preparation process will help ensure your application is processed as efficiently as possible.

You must have a clear understanding of your business and the obligations of a licensee. This includes:

• Knowing Your Business: Be prepared to describe your proposed financial services business accurately. You need to select the correct financial service and product authorisations that align with your business operations.
• Understanding Licensee Obligations: You must have systems and processes in place to meet the obligations under sections 912A and 912B of the Corporations Act 2001 (Cth) from the first day your licence is active, as these are often the focus of subsequent AFSL audits and investigations.
• Gathering Supporting Documents: You will need to provide supporting documents, known as ‘People Proofs’, for your nominated responsible managers and other ‘fit and proper people’ involved in your application. The specific documents required will depend on the complexity of your proposed services.

Understanding the Post-Submission Process for Your AFSL Application

The Assessment Process & Communicating with ASIC

Once you have submitted your AFSL application through the ASIC Regulatory Portal, it will be assigned to a licensing analyst for review. Because ASIC employs a risk-based approach to assessment, processing times can vary depending on the complexity of your business and the market you intend to operate in.

If the analyst requires more information or additional supporting documents, they will contact you. Accordingly, all communication regarding your AFS licence application will occur through the portal or via direct email with the assigned analyst.

It is crucial to respond to all requests from ASIC promptly and within the specified timeframe. If you cannot meet a deadline, contact the analyst to discuss a possible extension. Otherwise, failure to respond to a formal notice for information may have serious consequences:

• Your application could be legally deemed withdrawn
• The application fee will not be refunded

Receiving Your Draft & Final AFS Licence

If your application is successful in principle, ASIC will issue a “requirements letter.” This letter includes a draft of your AFS licence, detailing the proposed authorisations and conditions. You should carefully review this draft to ensure it accurately reflects your business needs.

In addition, the requirements letter will outline any final steps you need to complete before the licence can be granted. These often include:

• Providing details of your professional indemnity insurance
• Confirming your membership with the Australian Financial Complaints Authority (AFCA)
• Formally confirming that there have been no material changes to the information provided in your AFSL application

After you have satisfied all outstanding requirements and returned the signed confirmation notice, ASIC will issue your final AFS licence. An electronic copy of the licence certificate will then be sent to the email address you provided in your application.

Conclusion

The June 2025 update has fundamentally changed the AFSL application process, with all transactions now managed exclusively through the new ASIC Regulatory Portal. This digital transition streamlines how you apply for an AFSL, simplifying document submissions and providing greater flexibility in tailoring your licence authorisations.

To ensure your AFSL application is compliant with these significant changes, it is crucial to have expert guidance. Contact the AFSL application specialists at AFSL House today for trusted expertise to navigate the new requirements and streamline your AFSL application.

Frequently Asked Questions