ASIC has today published a media release on Consultation Paper 315 proposing to extend the current licensing relief for foreign financial service providers (FFSP) in Australia, while it further consults on the new licensing relief that will apply to FFSPs.

Main takeaways: 

• ASIC proposes to extend the ‘limited connection relief’ to 31 March 2020 and to allow a transition period to 30 September 2020.
• ASIC proposes to provide new funds management relief to certain FFSPs subject to a cap on the scale of services they can provide to Australian professional investors.
• ASIC intends to introduce a new foreign AFS licensing regime from 1 April 2020. 
• The new licensing regime will permit FFSPs to provide financial services to wholesale clients and be exempt from certain requirements of the Corporations Act applicable to Australian financial services licensees.
• ASIC proposes a transition period of 24 months from 1 April 2020 for FFSPs relying on the sufficient equivalence relief to comply with the new licensing regime, including for example, submitting an application for a foreign AFS licence and having the application assessed by ASIC.
• Submissions to ASIC on Consultation Paper 315 are due by 9 August 2019.

We intend to provide you with a more detailed analysis of the updated FFSP relief in due course.