The paper makes six recommendations.
- ASIC should be able to take action if it suspects the controllers of an Australian financial services licence (AFSL) are not 'fit and proper' upon their application (or change of control of the AFSL).
- There should be a statutory obligation for controllers of an AFSL to notify ASIC if there is a change of a control.
- AFS licence application assessments should be aligned with the enhanced credit license requirements adopted in 2010.
- ASIC should also have the power to cancel or suspend an AFSL if the licensee fails to commence business within six months.
- Penalties for false or misleading statements in financial services and credit should be aligned.
- Misleading or false statements in an AFSL application should be a "specific basis for refusing to grant the licence".
- Applicants should be required to confirm that there have been no material changes to information given in the application before the licence is granted.