ASIC Extends Licensing Relief to Foreign Financial Service Providers

The Australian Securities and Investments Commission (ASIC) announced on Friday the extension of temporary relief for all foreign financial service providers (FFSPs) that will allow them to operate in the country without an Australian Financial Services (AFS) license.

The relief has been extended for 12 months, ending on March 31, 2023. The financial market regulator is expecting that the Australian government will provide an outcome after consultation on the matter by that time period.

The Aussie government first released a proposal in its latest budget to restore relief of the AFS license requirement for FFSPs which already hold licenses in jurisdictions with ‘comparable financial service rules and Obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term’.

Additionally, they are considering creating a fast-track licensing process for FFSPs who want to establish permanent operations in the country.

Until now, the relief to the FFPs was provided till 31 March 2022, which has been extended by the financial markets regulator.

A Welcoming Move

“Today's announcement has been eagerly anticipated by a number of our clients who have been putting significant effort into their Foreign AFSL application recently. The commentary in the Australian budget last month as to the future of the Foreign AFSL regime garnered attention in the Australian media and created angst amongst industry participants,” Sarah Murray, Head of Licensing at Sophie Grace, told Finance Magnates.

Furthermore, ASIC ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the Read this Term has paused the assessment of the license applications lodged by FFPs but is willing to review them upon request. The regulator clarified that it will accept new AFS licensing applications during the relief period.

“As the Australian economy (and the world) seeks a path out of Covid, financial service providers locally are seeking government support for re-igniting a "financial services hub" strategy for Australia. We are supportive of any moves which move Australia towards that outcome,” Murray added.