The Government has released for comment exposure draft legislation to provide regulatory relief for Foreign Financial Service Providers (FFSPs).

A person who carries on a financial services business in Australia must hold an Australian financial services licence covering the provision of the financial services. Unless exempt, the provision of a financial service in Australia without a licence is a contravention of a civil penalty provision under subsection 911A(5B) of the Corporations Act.

The Exposure Draft legislation proposes to introduce:

• the comparable regulator exemption, which exempts FFSPs authorised to provide financial services in a comparable regime from the requirement to be licensed when dealing with wholesale clients;
• the professional investor exemption, which exempts FFSPs that provide financial services from outside Australia to professional investors from the requirement to be licensed in Australia; and
• an exemption from the fit and proper person assessment to fast track the licensing process for FFSPs authorised to provide financial services in a comparable regulatory regime.

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