Foreign financial service providers will be subject to a new
regulatory regime from 1 April 2020, which will require a number of
previously exempt foreign financial service providers
(FFSPs) to hold an Australian Financial Services
(AFS) licence.
At the same time a new exemption specific to funds managers will
also take effect.
This article outlines the new FFSP regulatory framework, who the
changes will affect and when.
It should also be noted that the final regulatory regime
implemented by ASIC differs in key respects from the last round of
consultation.
What is the new foreign AFS licensing regime?
The new foreign AFS licensing regime will impose a scaled down
version of the existing AFS licensing regime on eligible FFSPs, and
require all other foreign FFSPs to comply with Australia's
licensing regime in full.
