ASIC has extended the transitional relief for foreign financial services providers (FFSPs) by an additional 12 months. This relief exempts FFSPs from the requirement to hold an Australian financial services (AFS) licence when providing financial services to Australian wholesale clients.
Under the current arrangements, ASIC’s sufficient equivalence relief and limited connection relief were due to expire on 31 March 2026. With this extension, the transitional relief will remain in place until 31 March 2027.
On 26 November 2025, the Australian Government introduced legislation for a new licensing exemption regime for FFSPs under the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2025 (the Bill). The new regime is due to commence 12 months after the Bill receives Royal Assent.
FFSPs that have been granted a foreign AFS licence will be able to continue to operate their financial services business in Australia under the licence issued by ASIC.
Background
ASIC Corporations (Foreign Financial Services Providers) Instrument 2025/798 remakes the relief previously provided under ASIC Corporations (Repeal and Transitional) Instrument 2016/396. As a result, FFSPs currently relying on an individual relief instrument—where the expiry is linked to 2016/396—can continue to rely on that relief until 31 March 2027.
ASIC Corporations (Amendment) Instrument 2025/799 extends the relief contained in the following instruments:
- 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 2027. This is subject to the passage of the Bill.
