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Screenshot of a breaking news alert e-mail from Q2 2017
The Australian Securities and Investments Commission (ASIC) is clarifying the documentation foreign financial services providers should provide to it when applying for class order exemptions to conduct business in Australia to facilitate an easier application process.
In a written statement to key advisers to foreign financial services providers, ASIC has clarified the required documents to be lodged with ASIC when submitting an application for exemption.
As outlined in ASIC’s Regulatory Guide 176, Foreign financial services providers (RG 176) and Information Sheet 157, Practical guidance for foreign financial services providers, foreign financial advisers must provide certain documents when applying for an exemption. All foreign financial services providers must provide:
- an original dated letter of intention to provide financial services in Australia
- a certified copy or original providing adequate evidence of registration, authorisation or permission from the overseas regulator
- a notice of reliance
- an original signed deed of reliance
- an original dated and signed letter addressed to ASIC consenting to mutual disclosure between ASIC and the overseas regulator
Brokers or dealers registered with the US Securities and Exchange Commission and seeking to rely on Class Order [CO 03/1100] US SEC regulated financial service providers, should also provide a certified copy or original evidence of membership with Securities Investor Protection Corporation.
Commodity pool operators or commodity trading advisers registered with the US Commodity Futures Trading Commission and seeking to rely on Class Order [CO 04/829] US CFTC regulated financial service providers, should also provide a written certification of adequacy of resources.
Where any documents that need to be provided are not in English, a translation in English of them must be provided.
A delay in the provision of these documents or an incomplete application that does not contain all these documents can delay the granting of the exemption. Without the exemption, an Australian financial services licence or approval to be an authorised representative, foreign financial services providers are unable to conduct business in Australia.
Class orders that provide these exemptions will sunset in the coming years. ASIC will consider and consult on whether or not new class orders which extend this relief should be issued, and what might be the appropriate conditions for these new class orders.
Applications to rely on the class order exemptions can still be made via [email protected] However, a copy of any original documents should be included in the emailed application and the original subsequently sent by mail.