ASIC Announces Extension of Transitional Relief for FFSPs

ASIC has announced that it is extending its transitional relief for foreign financial services providers (FFSPs) from the requirement to hold an Australian financial services (AFS) licence, for 12 months to 31 March 2023, pending the outcome of the Australian Government’s consultation about the regulation of FFSPs.

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As part of the Federal Budget released on 11 May 2021, the Government announced that it will 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 Corporations (Amendment) Instrument 2021/510 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 three instruments currently apply to a range of FFSPs until 31 March 2022.

The instrument also delays the commencement of the ASIC Corporations (Foreign Financial Services Providers—Funds Management Financial Services) Instrument 2020/199 until 1 April 2023.