APRA has evolved its approach to new entrants as it has gained a greater understanding of the financial and operational challenges applicants face in gaining a foothold into the sector. The revised approach places more focus on areas such as the long-term business sustainability of the business, capital requirements and exit planning. The rationale behind the changes to the licensing framework are aimed at enhancing financial safety as well as increasing the number of successful applications. However, the new approach does have more stringent requirements which has made the overall application process more complex and requires significant time and resourcing investment from applicants.