ASIC breaks down timeline to implement financial services licensing reforms

• asset-holding standards under s912BE 
• transactional and settlement standards under s912BF 
• financial requirements, including those relating to cash needs and net tangible assets  

ASIC added that its planned consultation on regulatory guidance will cover: 

• the need for such guidance 
• ASIC’s approach to applying its discretion, where appropriate, including in connection with responsible managers 
• standard conditions applicable to platform licensees 
• the possible streamlining of the licence variation process for some organisations, including those that have recently acquired a licence under information sheet 225 on “Digital assets: Financial products and services” 

This consultation will consider these possible guidance documents: 

• a new DAP/TCP regulatory guide 
• updated guidance on applying for and varying an Australian financial services (AFS) licence 
• amended guidance on financial requirements for AFS licensing 

In its news release, ASIC noted that access to the class no-action position will expire in June. 

Months 6–12

In the sixth to twelfth months, ASIC seeks to: 

• Publish new regulatory guidance relevant to DAPs and TCPs 
• Develop regulatory instruments that set standards for DAP and TCP operators 

Months 12–18

In the twelfth to eighteenth months, ASIC aims to open applications for financial service licence applications filed by DAP and TCP operators. ASIC explained that they can operate under regulatory relief until the processing of their applications. 

Beyond month 18

For the eighteenth month and onward, ASIC plans to have fully implemented the new regime. Under the reforms that take effect in April 202, ASIC will licence and supervise DAPs and TCPs and will enforce the law as required.