The Australian Securities and Investments Commission (ASIC) has received more than 800 applications for financial services licences – but it’s expecting up to 8000 before the end of the year. Ian Johnston, the regulator’s Director of Financial Services Regulation, says a “logjam” of applications is inevitable towards the end of the year, but ASIC is prepared for it.

In an interview in Insurance & Risk Professional magazine, Mr Johnston said people must be aware that as the pressure increases, the ability of staff to provide advice to applicants will be limited. “It does mean if you come in very late and there are some flaws in your application, [there’ll be] less of an ability for us to be able to go back and work with people on it,” he told the magazine. “It will probably just be sent back out saying, resubmit it…”

Mr Johnston said the percentage of poorer quality applications has been “pretty high”, probably because many applications have come from new industry entrants or “people doing new things”.

Nominating early December as the latest time to have applications in, he said people opening up new businesses and new types of business should apply earlier. “Clearly to be licensed by the due date… you’re banking on having a good application that will sail through.”

Mr Johnston also said in the interview that there is “some appeal” in companies submitting their licence applications now but not having to comply with the Financial Services Reform Act until March 11. “It’s not something that we’ve been able to do yet, but I’m keeping an eye on that.”

The full interview is in Insurance & Risk Professional, out this week.