Treasury has issued a consultation paper Relief to Foreign Financial Service Providers on options for relief from the requirement to hold an Australian Financial Service Licence (AFSL) if they carry on a financial services business in Australia The relief would be limited to FFSPs that deal with wholesale clients and professional investors.
The options are:
- provide Australian licensing relief to FFSPs that are already similarly licensed and regulated in other jurisdictions that want to enter the Australian market,
- provide Australian licensing relief to FFSPs not based in Australia that provide financial services to their Australian clients, and
- fast-track the licensing process for FFSPs that will require a licence to operate in Australia.
On 10 March 2020, ASIC announced that from 1 April 2020 FFSPs wanting to commence a
financial services business in Australia have until 31 March 2022 to obtain a foreign or standard AFSL
to remain in the Australian financial services market.
On 11 June 2021, ASIC announced that it would extend transitional relief for foreign financial
services providers for 12 months until 31 March 2023 pending the outcome of the Government’s
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Author: David Jacobson
Principal, Bright Corporate Law
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.