As we settle in to 2024, Sophie Grace has taken some time to review its 2023 AFS and Credit Licensing trends.
Overall, Sophie Grace found its AFS and Credit Licensing activity to be lower than previous years – sentiments that were echoed at ASIC's November 2023 licensing liaison meeting where ASIC commented that its licensing activity was the lowest it has been in 3 years. This also reflects broader sentiment drop-off in the market.
Australian Financial Services Licences
For AFS Licensing, Sophie Grace submitted a total of 19 applications to ASIC (either for new businesses looking to obtain an AFS Licence or for existing AFS holders looking to vary their licence). The table below shows a summary of Sophie Grace's 2023 AFS licensing activity:
| Submitted | Granted | Under Assessment | |
| Applications | 12 | 8 | 4 |
| Variations | 7 | 4 | 3 |
Of the 19 AFS Licensing applications submitted in 2023, 63% were granted in the same year. Of the 37% of the AFS Licensing applications that remain under assessment, 86% were submitted to ASIC in Q4 2023.
Australian Credit Licences
In relation to Credit Licensing, Sophie Grace submitted a total of 21 applications to ASIC (either for new businesses looking to obtain a Credit Licence or for existing Credit Licence holders looking to vary their licence). The table below shows a summary of Sophie Grace's 2023 Credit Licensing activity:
| Submitted | Granted | Under Assessment | |
| Applications | 19 | 12 | 7 |
| Variations | 2 | 1 | 1 |
Of the 21 Credit Licensing applications submitted in 2023, 62% were granted in the same year. Of the 38% of the Credit Licensing applications that remain under assessment, 75% were submitted to ASIC in Q4 2023.
The Year Ahead
Sophie Grace is already seeing an uptick in AFS and Credit Licensing application queries and engagements in 2024 and we are not even 2 months into the year!
Sophie Grace looks forward to working with new businesses seeking to obtain an AFS or Credit Licence as well as existing licence holders throughout 2024.
Further Reading
- AFSL Application Support Options
- Credit Licence Application Process