In Australia, the mortgage broking industry has seen phenomenal growth over the past decade, and this appears to mirror what is happening elsewhere around the world. Here we look at various aspects of the mortgage broking industry internationally.

The financial services industry in Australia is governed by the Financial Services Regulations (FSR), which are enforced by the Australian Securities and Investment Commission (ASIC). However, while the regulations are strict and must be adhered to, there is the opportunity to apply for relief from FSR. Here we look at some of the reasons why you might apply for relief and how you apply.

Why AFS licensees might apply for FSR relief
What are the reasons why you might apply for FSR relief in the first place? Firstly, let’s look at the information you might supply to potential customers, such as a Product Disclosure Statement (PDS). In a recent ruling, ASIC provided relief to a company that had provided incorrect information in a PDS . After applying for, and being granted, relief, the financial services company rectified the situation by putting a sticker over the incorrect information and retrieving PDSs with the incorrect information wherever possible.

In another example, FSR relief was provided in the form of a no-action letter to an AFS licensee who had failed to provide all the required information for the 2003-2004 financial year . The no-action letter was issued by ASIC because it was their first financial year as an AFS licensee and the licensee had provided some of the required information.

Other reasons for applying for relief might include licensing relief, dollar disclosure regulations relief and managed investment registration exemptions. ASIC releases a regular report called Overview of decisions on relief applications from financial service providers which documents relief applications that have been both granted and rejected. This provides an interesting insight into the types of relief being sought by AFS licensees and the types of relief ASIC is granting and rejecting. You can download a copy of the report on the ASIC website at www.asic.gov.au.

How to apply for relief

Before applying for relief, you should read Policy Statement 51 Application for relief. This policy statement outlines the different types of applications such as standard applications and minor and technical applications and what is required for each. It also provides information on the lodgement and processing of FSR relief applications. You can download a copy of Policy Statement 51 Application for relief on theASIC website.