Licensing exemptions for foreign financial service providers (FFSPs)
The Financial Services Committee and the Corporations Committee of the Business Law Section of the Law Council of Australia (collectively, the Committees) provided a submission to the Treasury in response to the exposure draft Treasury Laws Amendment (Measures for Future Bills) Bill 2023: Licensing exemptions for foreign financial services providers (the Bill) and its accompanying Explanatory Memorandum (the EM), which were released for consultation on 7 August 2023.
The Bill seeks to amend the Corporations Act 2001 (Cth) (the Corporations Act) to introduce:
- a comparable regulator exemption;
- a professional investor exemption;
- a market maker exemption; and
- an exemption from the fit‑and‑proper person assessment to fast‑track the licensing process for FFSPs which are authorised to provide financial services in a comparable regulatory regime.
If the Bill was to become law, certain exemptions which the Australian Securities and Investments Commission (ASIC) has provided to certain FFSPs from the obligation to hold an Australian financial services licence (AFSL) in specified circumstances would cease to have effect.