ASIC releases new regulation for foreign financial services providers

ASIC office

ASIC has released new regulation for foreign financial services providers (FFSPs) that service Australian wholesale clients.

Cathie Armour, ASIC Commissioner, noted:

Cathie Armour

Our new regulatory framework facilitates Australian wholesale access to foreign investment opportunities, preserves market integrity against misconduct in wholesale markets, and strengthens ASIC’s ability to take effective regulatory and supervisory action.

Our ability to effectively supervise all participants in Australian markets is crucial for the confident participation of investors.

There are two major components to the new regulation. Firstly, there will be new foreign Australian financial services (AFS) licensing regime for FFSPs. And secondly, there will be licensing relief for funds management financial services provider seeking to induce some types of professional investors.

The previous ASIC’s licensing exemptions for foreign providers will be replaced. The new regulatory framework is developed through extensive consultation with industry and overseas regulators. The details of the new framework are contained in ASIC’s updated Regulatory Guide 176 Foreign financial services providers (RG 176). The new regime will come after a two-year transition period.

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