AFSL B5 Financial Resources Template | RG 166 Compliant | ASIC Application

Prepare for ASIC’s financial review with our streamlined AFSL Financial Resource Template. While the upfront "B5 Proof" is no longer required, you must still demonstrate financial capacity during ASIC’s "requirements stage" after initial approval.

This editable template helps you quickly compile balance sheets, profit & loss statements, and cash flow projections aligned with ASIC Regulatory Guide 166. Just fill in your company’s details—no complex formatting needed.

What’s included:

• RG 166-compliant structure
• Easy-to-edit document (.DOCX)
• Clear placeholders for your data

Understanding the B5 Financial Statements and ASIC's New Process

What Was the B5 Proof?

Prior to June 16, 2025, the B5 Financial Statements and Financial Resources Proof was a mandatory upfront submission for most AFSL applicants. It demonstrates the applicant's capacity to meet the ongoing financial requirements set by the Australian Securities and Investments Commission (ASIC). Its purpose was to:

• Demonstrate Financial Stability: Provide ASIC with immediate evidence of an applicant's financial health through balance sheets, profit & loss statements, and cash flow projections.

• Prove Compliance Capacity: Show the applicant's ability to meet the ongoing financial requirements stipulated under the Corporations Act 2001 and ASIC Regulatory Guide 166 (RG 166).

• Assess Viability: Allow ASIC to assess the financial viability of a business before investing significant time in the application review.

What Changed on 16 June 2025?

ASIC streamlined the Australian Financial Services Licence (AFSL) application process:

1. No More Upfront B5 Submission: The specific "B5 Proof" document is no longer part of the initial application lodgement.

1. Later-Stage Financial Scrutiny: The identical financial information is now requested by ASIC at the 'requirements stage'—after an in-principle decision to approve the licence has been made.

1. Core Obligation Unchanged: Crucially, the legal requirement for an AFSL holder to have adequate financial resources at all times remains absolute. This is a ongoing licence condition under Section 912A of the Corporations Act 2001.

What This Means for Applicants

• You Must Still Be Prepared: While not submitted day one, you must have all your financial documentation ready for immediate submission upon ASIC's request. Delays can jeopardise your application.

• Core Obligation Remains: Although the specific upfront proof is gone, entities are still required to have sufficient financial resources to operate their business and comply with licensing obligations under the Corporations Act 2001 (Cth) and submit this proof at the 'requirements stage'.

• Strategic Shift: The application process now initially focuses on other core proofs (e.g., organisational competence, resources, risk management), with financial viability confirmed later.

Where to Find Guidance

• ASIC Regulatory Guides: Regulatory Guide 166 (RG 166) Guidance on completing the B5 Financial Resources proof and the relevant financial requirements.

• ASIC Regulatory Guide 2 and RG 166 remains the primary source for all financial requirements. RG 2 (Licensing: Application and administrative process) has been updated to reflect the new process.

• Professional Advisers: Engaging a specialist AFSL Lawyer is highly recommended - contact our AFSL Lawyers at hello@clicklegal.com.au to navigate the updated process and ensure your financial evidence is compliant when ASIC requests it.

Disclaimer: This is a general summary and does not constitute legal advice. You should seek professional advice tailored to your specific circumstances.