ASIC Seeks Feedback on Relief for New Foreign Provider Regime

The Australian Securities and Investments Commission (ASIC) is seeking feedback on proposed relief and guidance to help foreign financial services providers (FFSPs) prepare for a new Australian regime starting on 8 April 2027. The proposals include a six-month extension of existing transitional relief, conditional class relief for some providers and guidance on the new licensing exemptions and notification process. Under the proposed extension, certain FFSPs could continue providing financial services to Australian wholesale clients without an Australian financial services (AFS) licence until 1 October 2027, subject to conditions. Providers using current relief would need to move to an exemption under the new regime or apply for an AFS licence, as appropriate. The new regime provides exemptions for providers serving professional investors from offshore, providers regulated by comparable overseas regulators that serve wholesale clients, and market makers for certain derivatives traded on a prescribed licensed market. FFSPs intending to rely on a statutory exemption must notify ASIC and comply with its conditions. ASIC says it will publish further information about the notification process before the regime begins. ASIC also proposes conditional class relief for eligible FFSPs with a related AFS licensee whose global operating models may not fit the professional investor exemption. It would cover services provided mainly offshore to institutional investors, while allowing individuals in Australia to support those services. Activities in Australia would have to be conducted efficiently, honestly and fairly. Feedback on the proposals in consultation paper CS 68 is due by 5pm Australian Eastern Standard Time on 4 December 2026, at [email protected].