How Much Does an Australian Financial Services Licence (AFSL) Application Cost?

One of the questions we receive most frequently is: “How much does it cost to get an AFSL?” The answer varies because AFSL costs depend heavily on the complexity of your business model, the authorisations required, and whether the licence will service retail or wholesale clients. This article provides a comprehensive and technically detailed overview of ASIC AFSL fees, professional fees, set-up and ongoing compliance costs, Responsible Manager requirements, retail uplift obligations, and practical challenges that impact total expenditure.

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Hannah Deuk•29 November 2025
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Short Answer

The total cost of an AFSL application typically ranges from $5,000 to $50,000+, depending on the complexity of the licence and the level of professional support required.

The cost for an AFSL application varies significantly, but the base ASIC's fee range from approximately $2,233 to $11,305, depending on complexity, entity type (whether the applicant is a body corporate or individual) , and whether the application is lodged online or paper.

Wholesale-only AFSLs tend to fall at the lower end. Retail AFSLs, or licences involving derivatives, FX, client money authority, custodial services, or multiple Responsible Managers, sit at the higher end.  Reference : Australian Securities and Investments Commission (ASIC)

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Introduction

Obtaining an AFSL involves both upfront and ongoing costs. For financial services providers and start-ups (fintech, brokers, financial advice providers, securities dealers, fund managers) considering self-licensing, understanding these costs is essential to budgeting, planning and long-term compliance.

This article offers an information-rich, practitioner-level breakdown of AFSL application fees, set-up costs, and ongoing compliance obligations, and highlights the key factors that materially influence the total cost of operating under an AFSL. Reference: ASIC Do you need an AFS licence?

ASIC Lodgement Fees for AFSL Applications

ASIC AFSL application fees vary significantly based on complexity, business structure, and whether applications are lodged online or via paper.

These fees reflect ASIC’s assessment workload and the risk profile of the services sought.

Indicative ASIC AFSL Fees (FS01)

Online – Body Corporate

    • Low complexity: $2,233
    • Moderate complexity: $3,721
    • High complexity: $7,537

Paper Applications – Body Corporate

    • Low complexity: $5,582
    • High complexity: $11,305

Wholesale Applications

  • Low complexity (individual): $1,488
  • High complexity (body corporate): $5,025 – $7,537

What drives complexity?

Applications cost more where businesses:

  • Provide complex products such as derivatives, FX, margin lending
  • Operate or provide services to managed investment schemes
  • Offer custodial or depository services
  • Handle client money or assets
  • Provide personal advice to retail clients
  • Require multiple Responsible Managers
  • Sit within larger or multi-entity corporate structures
  • Seek broad or high-risk authorisations
  • Provide services across multiple product classes

Complexity directly increases ASIC’s review requirements, which is why higher-risk or multi-authorisation licences attract higher fees.

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Other Key Costs to Consider

Beyond ASIC’s lodgement fees, AFSL applicants incur a range of additional costs.

Professional Fees

Professional support for preparing the AFSL application can range from $5,000 to $50,000+, depending on the scope, authorisations sought, and complexity. These fees typically cover:

  • Responsible Manager guidance and proof documentation
  • Organisational Competence Matrix
  • Tailored compliance frameworks
  • Required policies and procedures
  • Business description and operational model
  • Risk Management Plan
  • Privacy and AML/CTF programs
  • Drafting and lodgement via the ASIC Regulatory Portal
  • Responding to ASIC requisitions through to licence approval

The more complex the business model, the higher the professional fees.

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Legal and Compliance Documentation

Applicants often require:

  • Compliance manuals
  • Governance frameworks
  • AML/CTF Program
  • Responsible Manager statements
  • Privacy compliance documentation
  • Training and competence frameworks

Templates are rarely appropriate. ASIC expects tailored, business-specific documentation.

Complexity Factors

Costs increase significantly where the applicant:

  • Services retail clients
  • Deals with complex or high-risk products
  • Requires multiple RM proofs
  • Operates cross-border or in group structures
  • Requires a custodial, FX, or derivatives licence
  • Handles client money
  • Provides personal advice

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Ongoing AFSL Compliance Costs & Obligations

Once licensed, businesses must meet ongoing compliance costs. These include:

Professional Indemnity (PI) Insurance

Mandatory for all AFSL holders servicing retail clients.

Indicative PI cost ranges:

  • Small retail AFSLs: $10,000 – $12,500 per year
  • Larger businesses: typically 1.8% – 2.3% of fee income

PI insurance must cover:

  • Minimum $2m per claim
  • Fraud / dishonesty
  • AFCA awards
  • Defence costs

AFCA Membership (Retail AFSLs Only)

  • Annual fee: $350 – $5,000+ depending on revenue and complaint volume
  • Case fees apply per complaint

AFCA membership is mandatory for retail financial service providers.

ASIC Industry Funding Levy

AFSL holders are required to pay both:

  • Annual flat levy: approx. $1,500
  • Graduated levy: varies by licence category

Example for advice licensees:

  • $1,500 (flat levy)
  • $3,217 per adviser (graduated levy)

Audit & Financial Reporting Requirements

Most AFSL holders must appoint an auditor to conduct:

  • Financial statement audits
  • Compliance audits

Indicative cost: $3,000 – $8,000 per year depending on business size and complexity.

Training & Competence (RG146 / CPD)

  • RG146 training: $500 – $1,500 per person
  • Ongoing CPD: $1,000 – $3,000 per adviser annually

Retail-focused AFSLs must maintain higher education standards.

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Additional Costs for Retail Client Services

AFSLs providing services to retail clients must comply with enhanced obligations across:

  • Training & supervision
  • PI insurance
  • AFCA membership
  • Design & distribution obligations (DDO)
  • Additional monitoring and governance

Retail AFSLs often incur between $10,000 and $50,000+ annually in additional compliance expenditure.

Set-Up Costs for an AFSL Application

The initial cost to apply for an AFSL typically ranges between $5,000 and $55,000, capturing:

  • Professional fees
  • ASIC lodgement fees
  • Responsible Manager documentation
  • Policies and procedures
  • AML/CTF program
  • Training
  • Risk management framework

Wholesale-only models generally fall at the lower end.
Retail AFSLs, or those involving high-risk financial products, fall at the higher end.

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Hidden Challenges & Practical Risks

AFSL applicants often underestimate the following:

  • Responsible Manager availability
    ASIC requires clear demonstration of competence. Gaps or weak proofs cause delays.
  • ASIC requisitions
    Common where policies lack sufficient tailoring or detail.
  • PI insurance underwriting hurdles
    Insurers may require detailed disclosures before issuing cover.
  • Compliance framework weaknesses
    ASIC increasingly scrutinises “template-style” policies.
  • Capital and liquidity expectations
    While ASIC does not mandate specific NTA levels, insurers and industry norms often expect $20k–$100k in net assets.
  • Cash-flow pressure
    PI insurance and AFCA membership fees must be paid before licence activation.

These issues can add weeks or months to the approval timeline.

What You Need to Prepare

To lodge an AFSL application, businesses must prepare:

  • Corporate structure details
  • Business description and revenue model
  • Responsible Manager CVs, qualifications, references
  • Police, bankruptcy, sanctions and D&O checks
  • Financials demonstrating adequate resources
  • Compliance documentation including:
    • Compliance framework
    • AML/CTF program
    • Risk management plan
    • Training framework

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How Click Legal Can Help With Your AFSL Application

When you engage Click Legal AFSL Lawyers, we provide end-to-end support in preparing, lodging and managing your AFSL application.

A standard AFSL application package includes:

  • Advising on company structure
  • Responsible Manager support and all RM proofs
  • Preparation of the Organisational Competence Matrix
  • Drafting Compliance Framework and all required compliance policies and procedures
  • Preparing the Business Description and Risk Management Plan
  • Creating Privacy Policy
  • Completing the ASIC Regulatory Portal application
  • Managing ASIC queries and requisitions until approval

Complimentary Support

  • One month post-licence compliance support
  • Special rate for six months of Compliance Fractional General Counsel support

Optional Add-On

  • Special rate for AUSTRAC enrolment + AML/CTF Program

Contact us
📩 hello@clicklegal.com.au
📞 0450 502 672

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Disclaimer

The information provided in this article is for general informational purposes only and does not constitute legal, financial, or compliance advice. While every effort has been made to ensure accuracy at the time of publication, ASIC AFSL fees, levies, and regulatory requirements are subject to change. Figures quoted are indicative only and may vary based on your business model, authorisations, and complexity. You should obtain legal advice tailored to your circumstances before making any decisions regarding an Australian Financial Services Licence (AFSL) application or compliance obligations.

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