Licensing exemptions allowing foreign financial services providers (FFSPs) to provide financial services in Australia expires on 27 September 2018 (in the absence of any further extension by ASIC). See our previous alert for further background on the exemptions and ASIC's current review.
These licence exemptions are relied on by many FFSPs who provide financial services in Australia. The outcome of ASIC's review of the exemptions is generating much interest by both FFSPs and their clients. FFSPs are particularly concerned that there will be sufficient time to respond to the outcome of ASIC's review and any potential change in approach.
We understand that ASIC is finalising material for public release, and that this is likely to occur in late May 2018.
FFSPs and local participants who rely on their services may need to quickly assess ASIC's announced position unless the relief is extended. Even if the relief is not extended, hopefully ASIC will grant a reasonable transition period to FFSPs who currently rely on the relief.