The Australian Securities and Investments Commission (ASIC) has issued 363 financial services licences since March 11 last year when the Financial Reform Services Act came into being. But it’s a case of quantity and not quality.

Executive Director FSR Ian Johnston says the growing number of applications indicates the market is growing, but he is concerned about a steady decline in the standard.

“Common problems include failure to provide all documents requested and deficiencies in many of those provided,” he said. “These include financial statements not audited or not signed by the appropriate party, failure to adequately detail compliance and risk management procedures, and failure to adequately identify the relevant experience and qualifications of responsible officers.”

Mr Johnston says applications that don’t include all the requested information will be rejected.

ASIC will soon run random checks on the compliance and risk management arrangements of licencees. Surveillance teams will continue to monitor general industry compliance.

ASIC has issued a total of 4101 licences, most of which were applied for before the new law took effect. It has also granted 582 variations to licences and has been notified of 1018 changes of responsible officers.