A person who carries on a financial services business in Australia must hold an Australian financial services (AFS) licence, subject to certain exemptions, including where the person provides a financial service as a representative of an AFS licensee. Similarly, a person must not engage in a credit activity unless the person holds an Australian credit licence, or engages in the activity as a credit representative or as an employee or director of a credit licensee or related body corporate.
When it grants a licence, ASIC can require that a licensee put in place internal systems or restricts its activities in appropriate ways. However after a licence is granted, imposing such requirements or restrictions is slow and difficult.
The Taskforce has reviewed ASIC’s existing powers to modify an AFS or credit licensee’s ongoing systems and conduct after the relevant licence has been granted.
Source: The Commonwealth of Australia