Transitional relief for foreign financial services providers (FFSPs) has been extended to 31 March, 2023 by the Australian Securities and Investments Commission (ASIC).
This will see them relieved from holding an Australian financial services (AFS) licence, pending the outcome of a Government consultation.
This would see the Government consult on options to:
- Restore regulatory relief for FFSPs who are licensed and regulated in jurisdictions with comparable financial service rules and obligations, or have limited connection to Australia, from holding an AFS licence; and
- Create a fast-track licensing process for FFSPs who wish to establish more permanent operations in Australia.
ASIC said it had paused applications for licences lodged by FFSPs pending the announcement of the reforms, unless requested by the applicant.
“During this extended transitional period, ASIC will consider new applications for individual temporary licensing relief or new standard or foreign AFS licence applications from entities that cannot rely on the transitional relief,” it said.
“FFSPs that have been or are granted a foreign AFS licence will be able to continue to operate their financial services business in Australia under the licence issued by ASIC pending any legislative changes arising from the Government’s consultation.”
A further three instruments – ASIC Corporations (Repeal and Transitional) Instrument 2016/396, ASIC Corporations (CSSF Regulated Financial Services Providers) Instrument 2016/1109 and ASIC Corporations (Foreign Financial Services Providers – Limited Connection) Instrument 2017/182 – would apply until 31 March, 2022.