Regulation Impact Statement Updates

Official website for publishing regulatory impact analysis information for regulatory decisions announced by the Australian Government, COAG and COAG Councils.

Extension of licensing relief for Foreign Financial Services Providers

Aust Gov
11th December 2018

Foreign Financial Services Provider (FFSP) relief instruments - Australian Securities and Investment Commission

On 21 September 2018 the Australian Securities and Investment Commission (ASIC) extended the following instruments, without significant amendments, for a period of 12 months until 30 September 2019:

  • ASIC Corporations (Repeal and Transitional) Instrument 2016/396;
  • ASIC Corporations (Foreign Financial Service Providers—Limited Connection) Instrument 2017/182; and
  • ASIC Corporations (CSSF-Regulated Financial Services Providers) Instrument 2016/1109.

Foreign financial services providers (FFSPs) dealing with Australian wholesale clients are exempt from the requirement to hold an Australian financial services (AFS) license where they are regulated under overseas regulatory regimes that ASIC has assessed as sufficiently equivalent to the AFS licensing regime.

ASIC is temporarily extending the relief provided by these instruments while it continues to consult industry and other relevant stakeholders on the detailed proposals laid out in ASIC Consultation Paper 301 Foreign financial service providers.

Consistent with the Australian Government’s best practice regulation requirements for sunsetting instruments, ASIC has, after consultation with industry, assessed these instruments as operating effectively and efficiently, while continuing to undertake further consultation with industry on the detailed proposals released in Consultation Paper 301. Therefore, a Regulation Impact Statement is not required for temporarily remaking these instruments without significant amendments.

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