To become self-licensed, you must apply for and obtain your own Australian Financial Services Licence (AFSL) from ASIC. This requires demonstrating organisational competence, adequate financial resources, and robust compliance and risk management systems, as well as the ability to operate independently as a regulated advice business.
Expanded Answer
Becoming self-licensed means transitioning from operating under another licensee to holding your own AFSL. This shifts full responsibility for compliance, supervision, and business operations onto you.
In practice, ASIC is assessing whether you can operate a sustainable and compliant advice business, not just whether you can meet the minimum licensing criteria.
The process starts with assessing whether you meet ASIC’s licensing requirements. This includes organisational competence, which typically requires appointing responsible managers with appropriate experience and qualifications.
You must also demonstrate that you have adequate financial resources, as well as clearly defined compliance infrastructure (processes, systems and risk management frameworks).
You will need to prepare detailed documentation covering your business model, advice services, compliance arrangements, and AML/CTF obligations if you are a reporting entity. ASIC will assess your ability to meet ongoing obligations, not just obtain the licence.
The application process typically takes several months and often involves responding to ASIC requisitions or requests for further information. Based on our experience supporting AFSL applications, delays are commonly caused by gaps in documentation or unclear articulation of how compliance will operate in practice.
Many advisers engage specialist support to prepare and lodge the application, particularly where the structure or scope of the licence is complex.
Why it matters
Self-licensing gives you full control over your advice business, but it also makes you directly accountable to ASIC and, where applicable, AUSTRAC. Weak preparation can lead to delays, additional licence conditions, or rejection, which can disrupt your ability to operate or transition from your existing licensee.
Practical guidance
- Assess your readiness across organisational competence, financial resources, and compliance capability before applying
- Identify and appoint suitable responsible managers early in the process
- Build and document your compliance, risk, and AML/CTF frameworks before lodging your AFSL application