ASIC Consults on Transitional Relief for New Foreign Financial Services Provider Regime

The Australian Securities and Investments Commission (ASIC) is seeking feedback on proposals to support the transition to the new foreign financial services provider (FFSP) regime, which starts on 8 April 2027. The consultation covers a proposed six-month extension of existing transitional relief, conditional class relief under the new professional investor exemption, and regulatory guidance.

ASIC: New FFSP regime and licensing exemptions

The Government’s new FFSP regime aims to improve Australian professional and wholesale investors’ access to global markets by exempting certain providers from the requirement to hold an Australian Financial Services (AFS) licence. Under Schedule 2 of the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Act 2026, licensing exemptions are provided for FFSPs that:

• provide financial services from outside Australia to professional investors (professional investor exemption);

• are regulated by comparable regulators and provide services to wholesale clients (comparable regulator exemption); or

• make a market for certain derivatives traded on a prescribed licensed market (market maker exemption).

FFSPs must notify ASIC if they intend to rely on any statutory exemption and must comply with its conditions.

Proposed extension and conditional class relief

ASIC proposes to extend transitional relief for certain FFSPs by six months, until 1 October 2027. Subject to conditions, this would allow them to continue providing financial services to Australian wholesale clients without an AFS licence. The proposed extension is intended to support an orderly transition to the new FFSP regime. FFSPs relying on the current relief will need to transition to the new regime or apply for an AFS licence, as appropriate.

ASIC also proposes conditional class relief for eligible FFSPs whose global operating models may fall outside the new professional investor exemption. Subject to conditions, the relief would allow individuals in Australia to support financial services principally provided offshore by an FFSP to Australian institutional investors. The proposed relief would be limited to FFSPs with a related AFS licensee and cover financial services provided mainly offshore to institutional investors. FFSPs relying on the relief would need to ensure activities in Australia are carried out efficiently, honestly and fairly.

The relief aims to give FFSPs with integrated global operating models greater certainty without undermining the AFS licensing regime. ASIC is seeking feedback on the relief’s proposed scope, conditions and practical operation.

Feedback should be sent to rri.consultation@asic.gov.au by 5pm AEST on 4 December 2026.