New Australian Licensing Requirements for Foreign Financial Service Providers managing funds on behalf of Australian Wholesale Investors
The rules are changing
The Australian Securities & Investments Commission (ASIC) recently announced changes to licensing requirements affecting Foreign Financial Services Providers (FFSPs).
The changes mean many FFSPs will need to obtain a Foreign Australian Financial Service Licence (FAFSL) in order to continue operating.
Fund managers operating Non-Australian funds with FUM from domestic Australian Wholesale Investors will be required to obtain an FAFSL.
FFSPs have previously relied on exemptions including ‘passport’ or ‘limited connections’ to provide relief from the requirement to hold an Australian Financial Services Licence (AFSL) in Australia. These exemptions have been repealed and Non-Domestic funds will now need to take one of the following actions:
- Return funds to Australian Wholesale investors, or
- Apply for and maintain a valid Foreign Australian Financial Services Licence, or
- Establish a relationship with a domestic Australian Financial Services Licensee.
Refer to the following articles to remain up to date with the changing regulations: