Another reprieve for foreign financial services providers (FFSPs): ASIC extends licensing relief 

ASIC has removed the requirement for certain FFSPs to hold an Australian financial services licence (AFSL) for an extra year, to 31 March 2023.

This latest development in the on-again, off-again relief follows the Federal Budget announcement in May 2021.  The Government will consult on how it can:

  • Restore legislated AFSL relief for FFSPs who are: 
    • licensed and regulated in comparable jurisdictions; or 
    • have limited connection to Australia; and
  • Create a “fast-track” process for FFSPs applying for an AFSL for more permanent Australian operations.

ASIC also extended similar relief for foreign fund managers providing services to certain Australian professional investors.

As a result of this extension, and pending Government consultation, ASIC will not:

  • give further consideration to existing AFS licence applications from FFSPs unless they request; or
  • consider new applications from FFSPs who can rely on the extended relief.

ASIC’s media release on this subject can be found here:

https://asic.gov.au/about-asic/news-centre/find-a-media-release/2021-releases/21-131mr-asic-extends-transitional-relief-for-foreign-financial-services-providers-following-federal-budget/

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