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ARTICLE · 21 MAY 2026

How Foreign Financial Services Providers Can Provide Services To Australian Clients

Sophie Grace Pty Ltd
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Australia is introducing three new licensing exemptions for foreign financial services providers that will take effect in April 2027. These exemptions—covering professional investors, comparable regulators, and market makers—will allow certain FFSPs to conduct financial services business without obtaining an Australian Financial Services Licence, provided specific conditions are met.

AustraliaFinance and Banking
Larissa Tan
Larissa Tan
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A person who carries on a financial services business in Australia must hold an Australian Financial Services Licence (“AFSL“), unless an exemption or relief applies. Three new licensing exemptions for foreign financial services providers (“FFSPs“) will commence on 9 April 2027. These are:

  1. Professional investor exemption
  2. Comparable regulator exemption
  3. Market maker exemption

Professional investor exemption

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This exemption is relevant for FFSPs who provide financial services from outside Australia to professional investors. To rely on this exemption, all of the following criteria must be satisfied:

  • The financial service is provided only to professional investors. It’s important to note that not all wholesale clients are professional investors.

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