In this practice area
Acting for Australian financial services licensees and their people in licensing disputes, ASIC administrative action, banning orders, breach reporting issues and AFCA complaints.
What these disputes involve
A person carrying on a financial services business in Australia must hold an Australian financial services licence or be exempt, under Part 7.6 of the Corporations Act 2001 (Cth). Licensees carry ongoing general obligations under section 912A, including to provide services efficiently, honestly and fairly, maintain adequate resources and risk management, and maintain internal and external dispute resolution arrangements.
Disputes arise when ASIC proposes to impose or vary licence conditions, suspend or cancel a licence, or ban an individual. They also arise from client complaints escalated to the Australian Financial Complaints Authority, and from breach reporting obligations that expose conduct to regulatory scrutiny.
The legal framework
ASIC may impose, vary or revoke licence conditions under section 914A and may suspend or cancel a licence under sections 915B and 915C. Section 920A allows ASIC to make banning orders against individuals in defined circumstances, including where they have not complied with a financial services law or are not a fit and proper person. Before making many of these decisions ASIC must give the person an opportunity to appear at a hearing and make submissions.
Section 912D requires licensees to report reportable situations, including significant breaches and certain investigations, to ASIC within 30 days of knowing or being reckless about them. AFCA, established under Part 7.10A, resolves consumer and small business complaints; a determination accepted by the complainant binds the licensee. Many ASIC licensing and banning decisions are reviewable on the merits by the Administrative Review Tribunal, which replaced the Administrative Appeals Tribunal in October 2024, and judicial review is available in the Federal Court.
How these matters run
ASIC administrative action usually begins with a notice setting out its concerns, a summary of the material relied on and a hearing date. The written submissions and evidence filed at that stage are central. Hearings are conducted by an ASIC delegate and are not formal trials, but they are the licensee's main opportunity to answer the case.
AFCA complaints follow AFCA's own rules and timetable, with short deadlines for responses. Decisions made at one stage can be relied on by ASIC or by other complainants, so each response needs to be considered in the wider context.
How GopherWood Lawyers acts
We act for licensees, responsible managers and advisers at the hearing and review stages, preparing submissions and evidence, and challenging decisions where the process or the reasoning is flawed. We advise on breach reporting decisions and on how to report without conceding more than the facts require.
We also handle AFCA complaints and related litigation, including challenges to determinations and claims between licensees and their representatives or insurers.