ASIC Remakes Relief Instruments for AFS Licensees and Overseas Banks

The Australian Securities and Investments Commission (ASIC) has remade a key legislative instrument providing regulatory relief for foreign Australian financial services licensees and authorized deposit-taking institutions, while extending other relief measures following industry consultation. ASIC Corporations (Foreign Licensees and ADIs) Instrument 2026/121 grants exemptions in two primary areas. It relieves foreign licensees from specific record-keeping obligations and the requirement to lodge and audit financial statements under the Corporations Act 2001. It also exempts foreign ADIs from needing an AFS license when dealing in derivatives and foreign exchange contracts on their own behalf. This new instrument replaces the previous ASIC Corporations (Foreign Licensees and ADIs) Instrument 2016/186 and is set to expire on 1 April 2031. In a separate move, ASIC has extended the operation of ASIC Corporations (Licence Conditions—Treatment of Lease Assets) Instrument 2021/229 for five years until 1 May 2031. This extension permits certain AFS licensees to include lease assets, or right-of-use assets, in calculations for net tangible assets and surplus liquid funds. The regulator noted it consulted on these proposals in December 2025 and received no submissions from the industry. Additionally, ASIC will implement minor updates to Form 405 Statement, which is used to verify the financial statements of foreign companies.