Some disturbing facts for intermediaries who still haven’t decided on their Australian financial services (AFS) licensing strategy have been revealed by Ian Johnston, the Australian Securities and Investments Commission's (ASIC) Executive Director Financial Services Regulation. He says only 50 brokers “and even less agents” have so far obtained AFS licences. About 14-15,000 applications have been received so far, but up to 8000 are expected, Mr Johnston told the Insurance Council of Australia's Canberra conference last week.

And there is no chance at all that the Federal Government will allow an extension to the deadline for obtaining a licence, he said. Pointing out that Federal Treasurer Peter Costello said as much in a speech several weeks ago, Mr Johnston said organisations needn’t think ASIC will be gentle on late-comers.

“If you have exceptional circumstances, we will consider relief,” he said. “Being a late-comer is not an exceptional circumstance.”

Mr Johnston says the low number of brokers licensed so far isn’t a problem – at this stage. “They are no slower than anyone else.” Funds managers and financial planners are under-represented and a greater concern.

Most large financial services companies have lodged their applications already or have “booked in” with ASIC. Most will be ready for processing in September-October.

Lodgements in the next two months will ensure ASIC staff are available to advise and assist, he said. But companies which are just starting to undergo the licensing process are risking being left without access to ASIC advice. If they miss the licensing deadline they will be unable to operate after March 11 next year. “Late lodgers also risk a compliance visit from ASIC,” Mr Johnston said. “Late lodgement is a risk indicator to us.”

His advice to applicants: You definitely don’t need a lawyer to complete the process. Be clear what you want to be authorised in. It’s very unusual to come across a unique question, so read the kits and guides produced by ASIC and such organisations as the National Insurance Brokers Association.