The Government has introduced the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2025 into the House of Representatives, which includes foreign financial service provider (FFSP) exemptions from the need to hold an Australian financial services licence. Background.

The current exemption for foreign financial services providers from the need to hold an Australian financial services licence when providing financial services to wholesale clients in Australia is due to expire on 31 March 2026.

The Bill will assist overseas providers of financial services, including (but not limited to) banking, investment funding, wealth management, market making, and financial advisory services by:

• providing an exemption from the requirement to hold an AFS licence for persons that provide financial services from outside Australia to professional investors (the professional investor exemption);
• providing an exemption from the requirement to hold an AFS licence for persons regulated by comparable regulators and that provide financial services to wholesale clients (the comparable regulator exemption);
• providing an exemption from the requirement to hold an AFS licence for persons that provide financial services that involve making a market for derivatives that are able to be traded on a specified licensed market (the market maker exemption); and
• fast-tracking the licensing process for persons seeking to establish more permanent operations in Australia by providing an exemption for persons regulated by comparable regulators from the fit and proper person test when applying for an AFS licence to provide financial services to wholesale clients (the fit and proper person test exemption).

If the Bill is passed, the FFSP exemptions in it will come into force 12 months after the Bill receives Royal Assent.

If so, it is likely that the current transitional arrangements will continue until the Bill commences.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.