Early engagement with APRA’s licensing team is recommended to clarify the licensing process and expectations. The pre-application stage helps applicants refine business plans and align with prudential requirements, focusing on governance, ownership, financial resources, risk management, IT, outsourcing, and contingency planning.
 

Step 1 – Early contact with APRA
 

Engaging with APRA’s licensing team early in the setup of a business helps applicants understand the licensing process, meet APRA’s expectations, and address potential concerns before submitting an application. Before contacting APRA, prospective applicants should have considered key areas such as business planning, governance, risk management, funding, and IT strategy.

The pre-application process involves at least three meetings — an initial inquiry, a business plan review, and a final challenge meeting — designed to refine the proposal and ensure it aligns with APRA’s prudential requirements. Applicants are expected to maintain communication and progress through these stages at their own pace; however, if we do not hear from you for six months, the application will be assumed withdrawn.

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Step 2 – Lodge an application

Once Step 1 is complete, businesses can formally apply for an APRA licence by submitting the required documentation and paying the application fee. We begin the assessment once we have received a substantial portion of complete, high-quality documentation. Applicants should review relevant licensing guidelines, prudential standards, and post-licensing obligations before lodging. The application must include comprehensive details such as ownership and management structures, a credible three-year business plan, financial resources, and risk management frameworks.

To avoid delays, all information must be accurate and complete. Applications are lodged through APRA’s secure online portal (typically with 1 GB capacity, extendable if needed), and hard copies are not required.

The application fee varies depending on the industry of the applicant.

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Step 3 – Assessment

After an application is lodged, APRA’s licensing team begins assessing it by reviewing documentation, requesting additional information, and potentially conducting on-site meetings. The assessment focuses on understanding the business’s risks, financial soundness, governance, and risk management capabilities to ensure it does not threaten financial system stability. The process is iterative and can take 12–18 months, depending on the quality of the submission, business complexity, and responsiveness to APRA’s requests.

Once the application is substantially complete, a licensing decision is typically made within 90 days. The final decision — made independently of the licensing team — may grant approval, approval with conditions, or a decline. Conditions are often imposed for limited business models or specific licence types and can later be amended if the business expands. If an application is declined, APRA provides written reasons, offers a chance to discuss or seek review, and applicants may appeal the decision through the Administrative Appeals Tribunal.

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Step 4 – Post-licensing
 

Once licensed, an entity must continually meet APRA’s prudential standards, provide ongoing reporting, and comply with supervisory levies. Under the Financial Sector (Collection of Data) Act 2001, licensees are required to submit regular reports to APRA through the D2A and APRA Connect systems, with data also shared with other financial regulators. Entities must notify APRA of any changes to “responsible persons,” such as directors or senior managers, within specific timeframes using designated forms.

APRA imposes annual supervisory levies to recover the cost of regulation across financial sectors. Depending on the licence type, additional disclosures and approvals may be required — for example, foreign ADIs must disclose their exemption status, RSE licensees must seek approval for licence variations or product authorisations, and private health insurers must apply for changes such as mergers or fund restructures.

All licensed entities are listed on APRA’s public registers for transparency.

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Frequently asked questions
 

These FAQs are published for information and guidance purposes only. The content of these FAQs is not legal advice and does not form part of the law or create enforceable requirements. Users are encouraged to obtain professional advice about the application of any legislation or Prudential Standard to their particular circumstances. Users should exercise their own skill and care when relying on any material contained in the FAQs.

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Make sure you read APRA’s licensing process cross-industry in conjunction with the relevant information for your industry.