404 Credit Licences Cancelled by ASIC

In a report released by the Australian Securities and Investments Commission ("ASIC") it has been revealed that a total of 404 Australian Credit Licences were cancelled between 1 July 2016 and 30 June 2017.

The report, Overview of Licensing and Professional Registration Applications, showed that 7 credit licences were suspended and 404 cancelled with the most common reason for cancellation being the company being placed into external administration, becoming deregistered, failure to comply with licence conditions to applying to ASIC for suspension or cancellation.

Of the 404 cancellations, 97 were initiated by ASIC through enforcement action while the remainder were initiated by the licencee themselves. In the report ASIC wrote that, "The most common reason for withdrawals is linked to the quality of the application – that is, where we communicate to the applicant, and the applicant agrees, that the final outcome is likely to be a refusal if the matter proceeds to a hearing."

The full report can be downloaded from here.

Source: ASIC - December 2017