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Jessica Darnbrough
Brokers are being told to submit their licence applications now or run the risk of not being able to operate in the New Year.
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ASIC’s real economy senior executive leader Katherine Morgan Wicks told The Adviser that despite the cut-off date of 31 December, brokers need to get their applications in by Friday, 10 December at the latest, due to processing implications.
“Between 8 and 10 per cent of applications are being returned to the applicants, mostly because of incomplete information,” Ms Morgan Wicks said.
At present, ASIC has only formally approved 1,500 credit licences.
And according to Advantedge’s general manager distribution broker platforms and lending Steve Weston, there is still a substantial amount of brokers that are yet to get their licence applications into ASIC.
Just 5 per cent of the group’s brokers that are looking to hold their own licence under the new legislation have completed the necessary paperwork.
In addition, more than 10 per cent of brokers looking to be a credit representative under Advantedge’s licence are yet to get their application in.
Mr Weston told The Adviser that the situation was now alarming.
“We knew there would be some brokers that wouldn’t both to complete their licence paperwork until the last minute, but it has now come down to the pointy end where brokers need to act now or be forced to cease operating,” Mr Weston said.
“You need to block out your weekend and do whatever you need to do to get it done now.
“ASIC closes down between Christmas and New Year, so if you think you can leave it until the last day of December, think again.”
