pc
nid 92271
Apr 29, 2026
kgurnani@vixio.com
Australia
The Treasury
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1580 charsAustralian Government Responds to Parliamentary Committee Report on ASIC Licence Transfers
On 24 March 2026, the Australian Treasury tabled its formal government response to the Parliamentary Joint Committee on Corporations and Financial Services' report on ASIC Licence Transfers. The response addresses four recommendations made by the Committee in its final report, which was delivered on 10 July 2023.
The Parliamentary Joint Committee on Corporations and Financial Services conducted an inquiry into the Australian Securities and Investments Commission (ASIC) licence transfer processes. The Committee's final report outlined recommendations intended to improve the efficiency and effectiveness of ASIC's licence transfer procedures. The government response provides the Australian Government's position on each of the Committee's recommendations, detailing how it intends to address the issues raised.
The formal response was made publicly available on 9 April 2026 through the Treasury website, with downloadable copies of the government response document provided for public access. This response represents the government's commitment to addressing the Committee's findings and implementing any necessary reforms to ASIC's licence transfer framework. Stakeholders in the financial services sector, including financial institutions and ASIC, should review the response to understand the government's intended course of action regarding the Committee's recommendations.
REFERENCES:
Australian Treasury. "Australian Government response to the Parliamentary Joint Committee on Corporations and Financial Services." Accessed April 9, 2026. https://treasury.gov.au
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3034 charsAustralian Government Responds to Parliamentary Committee Report on ASIC Licence Transfers
On April 9 2026, the Australian government published a response to the Parliamentary Joint Committee on Corporations and Financial Services' inquiry into Australian Securities and Investments Commission licence transfer, specifically how entities acquire ASIC licences through transfers or changes in control rather than applying for a new licence directly.
The report focuses on concerns that some firms may be 'buying' regulated status by acquiring an existing licence holder, rather than undergoing the full licensing assessment process themselves. This is particularly relevant for high-risk financial services, credit, and market infrastructure licences.
The key themes of the response include:
Greater transparency on licence transfers
The Committee recommended that ASIC publish annual data on how many transfers or changes in control occur across major licence types, including:
Australian Financial Services Licences (AFSLs)
Australian Credit Licences
Auditor registrations
Market licences
Benchmark operator licences
Clearing and settlement licences
The Government did not formally commit to this, but said it expects ASIC to act transparently and supports ASIC considering whether more public reporting is appropriate and how best to publish it.
Audit of firms using licence transfers after failed applications
The Committee asked ASIC to investigate and publish how often firms acquired a licence through transfer after previously having an application for the same licence type refused, withdrawn, rejected, cancelled, or suspended.
The government again only “noted” the recommendation. It said ASIC may consider such an audit, but warned that doing so would likely divert resources away from other regulatory priorities.
Closer scrutiny of high-risk licence transfers
The Committee recommended ASIC examine all high-risk licence transfers or changes in control, particularly for:
Market licences
Benchmark operator licences
Clearing and settlement licences
Large or complex AFSL and credit licence transfers
The Government’s response was that ASIC already applies a risk-based supervisory model and has sufficient regulatory tools to focus on areas of greatest harm. It supports ASIC continuing this targeted approach rather than creating a blanket review obligation.
Review of why firms prefer buying licences over applying
The Committee also recommended a review into the economic incentives behind licence acquisition through transfers rather than fresh applications.
Possible reasons identified include:
Avoiding licensing delays
Preserving business goodwill
Acquiring an existing client base
Established trading history
Maintaining going concern status
Expanding market share or diversifying operations
The Government declined to launch a formal review for now, saying this would be resource-intensive and Treasury and the Financial Regulator Assessment Authority currently have higher priorities. However, it said it would keep the issue in mind if review capacity becomes available.