The Australian Securities and Investments Commission (ASIC) is consulting on proposals to extend transitional licensing relief for foreign financial services providers (FFSPs) by six months to 1 October 2027 and provide conditional class relief. The proposals would support the transition to the new FFSP regime, which starts on 8 April 2027. Existing transitional relief, previously extended to 31 March 2027, allows eligible providers to serve Australian wholesale clients without an Australian financial services (AFS) licence. Providers relying on that relief will need to transition to the new regime or apply for an AFS licence, as appropriate. The proposed class relief targets providers whose global operating models may fall outside the new professional investor exemption. It would be limited to FFSPs with a related AFS licensee and allow individuals in Australia to support financial services provided mainly offshore to Australian institutional investors. Providers would need to ensure that activities in Australia are carried out efficiently, honestly and fairly. Proposed regulatory guidance would explain the new regime’s statutory exemptions, eligibility criteria and conditions. FFSPs must notify ASIC of any statutory exemption they intend to rely on and comply with its conditions. Further information about the notification process will be published before the regime starts.
ASIC consults on extending foreign financial services provider relief to 1 October 2027 and conditional class relief
ASIC proposes extending transitional licensing relief for foreign financial services providers by six months to 1 October 2027 to support the new regime starting on 8 April 2027. Conditional class relief would allow eligible providers with a related Australian financial services licensee to use individuals in Australia to support services delivered mainly offshore to institutional investors. Proposed guidance would explain the statutory exemptions, which providers must notify ASIC before relying on.