The Australian Securities and Investments Commission (ASIC) has extended for a further 12 months transitional relief for foreign financial services providers (FFSPs) from the requirement to hold a licence when providing services to wholesale clients here. 

ASIC says the current transitional arrangements for ASIC’s sufficient equivalence relief and limited connection relief were due to expire on March 31 next year. 

The extension made by ASIC Corporations (Amendment) Instrument 2023/588 means FFSPs are exempted from having to hold an Australian financial services AFS) licence until March 2025. 

“During this extended transitional period, ASIC will consider new applications for individual temporary licensing relief, or new standard or foreign AFS licence applications, from entities that cannot rely on the transitional relief,” the corporate regulator said. 

The transitional relief in ASIC Corporations (Amendment) Instrument 2023/588 extends the relief contained in the following instruments: 

• ASIC Corporations (Repeal and Transitional) Instrument 2016/396; 
• ASIC Corporations (CSSF-Regulated Financial Services Providers) Instrument 2016/1109; and 
• ASIC Corporations (Foreign Financial Services Providers - Limited Connection) Instrument 2017/182. 

The relief granted in ASIC Corporations (Foreign Financial Services Providers - Limited Connection) Instrument 2017/182 applies to all financial service providers, including insurers, where they are dealing with Australian wholesale clients. 

This relief only operates in limited circumstances as detailed in the class order, namely where the relevant person that is carrying on a financial services business in Australia only because of section 911D of the Act. Section 911D is directed at conduct that involves inducing Australian client to use a financial service.