ASIC is extending for a further 12 months the transitional relief for foreign financial services providers (FFSPs) from the requirement to hold an Australian financial services (AFS) licence when providing financial services to Australian wholesale clients.
The current transitional arrangements for ASIC’s sufficient equivalence relief and limited connection relief were due to expire on 31 March 2025.
To provide certainty for FFSPs that are currently relying on ASIC relief, we will extend this transitional relief until 31 March 2026. After this date, FFSPs will be required to notify ASIC of their intention to rely on the new licensing exemption regime, unless they choose to opt in by notifying ASIC earlier.
The Australian Government has introduced legislation for a new licensing exemption regime for FFSPs under the Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023. The new regime is due to commence on 1 April 2025, subject to passage of the Bill through Parliament.
Entities that are not currently subject to ASIC relief will be able to notify ASIC of their reliance on the licensing exemption regime after it commences.
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.
The extension of the transitional relief is made by ASIC Corporations (Amendment) Instrument 2024/497.
Background
ASIC Corporations (Amendment) Instrument 2024/497 extends the relief contained in the following 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.
The date of commencement of ASIC Corporations (Foreign Financial Services Providers—Funds Management Financial Services) Instrument 2020/199 will be 1 April 2026. This is subject to passage of the Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023.
