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ARTICLE · 10 DECEMBER 2025

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Another 12 Months Extension For FFSP AFSL Exemptions

Herbert Smith Freehills Kramer LLP
Herbert Smith Freehills Kramer LLP
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Herbert Smith Freehills Kramer LLP

Herbert Smith Freehills Kramer LLP

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On 5 December 2025, ASIC announced another 12 months extension to the transitional arrangements for the current FFSP AFSL exemptions (the passporting exemptions and limited connection exemption)...

AustraliaFinance and Banking
Fiona Smedley
Fiona Smedley
Yorick Ng
Yorick Ng
Adam Hickey
Adam Hickey
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On 5 December 2025, ASIC announced another 12 months extension to the transitional arrangements for the current FFSP AFSL exemptions (the passporting exemptions and limited connection exemption) which will now expire on 31 March 2027. These FFSP exemptions were previously set to expire on 31 March 2026.

Background

  • The passporting exemptions and limited connection exemption which operate to exempt foreign financial services providers (FFSPs) from the need to hold an Australian financial services licence (AFSL) when providing financial services to wholesale clients in Australia and were due to expire on 31 March 2026 (see our earlier article of 31 July 2024).
  • In 2022 the Government had proposed a bill to introduce legislation to replace the passporting exemptions and limited connection exemption with new FFSP exemptions called the 'comparable regulator exemption' and the 'professional investor exemption'.

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