Statutory FFSP AFSL exemptions are at last law 3 min read
The passage of proposed exemptions for foreign financial service providers (FFSPs) regarding the need to hold an Australian financial services licence (AFSL) means FFSPs relying on the exemptions from Australian Securities and Investments Commission (ASIC) transitional arrangements can finally look forward to the certainty of a statutory exemption framework, which will replace the current patchwork of temporary relief.
What is changing?
After almost ten years in the making, on 1 April 2026, both Houses of Parliament passed the proposed exemptions, and Royal Assent was granted on 8 April 2026.
Schedule 2 of the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Act 2026 (Cth) (the FFSP Act) introduces the following core exemptions:
- professional investor exemption;
- comparable regulator exemption; and
- market maker exemption.
For a detailed outline of each exemption and the new FFSP licensing framework, please see our previous Insight.
What does this mean for FFSPs?
The FFSP exemptions are expected to come into force on 8 April 2027. FFSPs currently relying on existing individual or transitional relief will be able to continue doing so until 31 March 2027, unless this is otherwise extended.
During this one-year transition period, FFSPs providing or intending to provide financial services in Australia should consider:
- obtaining legal advice and assessing whether they are able to rely on any of the new exemptions;
- mapping their compliance obligations against the specific exemption they intend to rely on, and having their ASIC notification and any supporting documents ready to go well before the commencement of the FFSP Act; or
- applying for a standard or foreign AFSL to the extent they are unable to rely on an alternative licensing exemption.
We expect that ASIC will issue further guidance on the new regime in the coming months and whether it intends to extend transitional or individual relief until 7 April 2027 to cover the gap between the commencement of the FFSP Act and expiry of ASIC individual or transitional relief. If you would like to discuss the issues raised in this Insight, please contact any of the people below.