Afsl exemptions

Do you need an AFS licence? ASIC - Australian Securities. The passporting exemptions are conditional on the FFSP meeting certain requirements in relation to disclosure, reporting breaches and compliance with. It’s important to note that these exemptions are subject to strict conditions. By Narelle Watters, Industry Consultant.

GTA Advisory and Compliance Workshop.

Melbourne, Australia. How the exemptions will apply if you are covered by an AFS licence Establishing, operating, structuring or valuing an SMSF If you are covered by an AFS licence, including a limited AFS licence, you cannot rely on the exemption for the provision of advice on the establishment, operation, structure or valuation of a superannuation fund (regulation .29(5)) to a retail client. Compliance Obligations on AFSL Holders AFSL holders must comply with a range of compliance, conduct and disclosure obligations.

Certain other licensing exemptions may apply to the provision of financial product advice. For example, general advice in advertising in various media may be covered by a licensing exemption if appropriate warnings are given: see reg 7. Instead of the exemption, offshore providers will be able to apply for a modified form of licence ( AFSL ). The process is fairly similar to applying for a new AFSL , however, there may be some exemptions to facilitate the application. Accountants’ Limited AFSL Applications With the changing of the relevant legislation, accountants now require an AFSL in order to undertake certain activities relating to the provision of advice and the establishment of a self-managed superannuation fund (“SMSF”).

Recently we have seen an increasing number of entities looking to be listed on the New Zealand Financial Service Provider Register (FSPR).

Being a listed entity on the FSPR is a requirement if you want to provide financial services to New Zealand resident clients. If an AFSL is not hel it is possible for the ‘fund originator’ or ‘investment manager’ to outsource the activities for which an AFSL is required. THE QUICK ANSWER: An AFSL is required for the provision of the financial services to be undertaken by a business. AFSL depending on the marketing activity.

An entity (or its representative), undertaking any form of marketing (inducement) or distribution of a foreign fund in Australia, (e.g. UCITS fund manager or AIFM), would usually need to hold an appropriate AFSL. Exemptions from needing an AFSL are available.

However, the above exemption. FFSP Class Order exemptions – will be able to apply for a foreign AFSL licence. In addition, Denmark, Sweden, France and Brazil have been assessed as sufficiently equivalent. FFSPs in all of these jurisdictions will be eligible to apply for a foreign AFS licence. Australian Financial Services Licence ( AFSL ) is a licence normally required to be held by an Australian business involved in the provision of financial services.

An AFSL can be issued to an individual, to a director or employee of an AFSL holder, or an authorised representative of a person who holds an AFSL. Australian financial services licence to provide financial services in Australia. Existing businesses with infrastructure that covers off on some of the conditions of the relief – such as professional indemnity insurance – will be in a. These exemptions are not available to entities which are financial institutions. Given these exemptions , it is expected that the application process for a foreign AFSL , while similar, will not be as onerous as the application process for an AFSL.

Next steps The costs of preparing an application for a foreign AFSL and complying with the conditions of the licence will be higher than the compliance costs of relying on the currently available licensing exemptions. Very limited AFSL exemptions will apply. The purpose of the new financial service is to apply AFSL obligations to a far broader range of activities involved in operating a superannuation fund as trustee.

Examples given in the explanatory materials include handling member insurance claims, fee charging practices, investment selection, product. There will be a transitioning period for FFSPs who are currently relying on. AUSTRAC consults with industry and other.

It may also be preferable to be authorised under an AFSL rather than rely on the exemption in some cases as this allows greater flexibility in the types of financial services provided and provides a pathway to scale up through. The removal of these exemptions will require litigation funders to obtain an AFSL from the Australian Securities and Investments Commission.