From: RegTech Analyst
The Australian Securities & Investments Commission (ASIC) has unveiled its latest update to foreign financial service providers looking to provide their services to wholesale clients in Australia.
The new rules include a new licencing regime for these businesses and licensing relief for providers of funds management financial services seeking to induce some types of professional investors.
“Our new regulatory framework facilitates Australian wholesale access to foreign investment opportunities, preserves market integrity against misconduct in wholesale markets and strengthens ASIC’s ability to take effective regulatory and supervisory action,” said Cathie Armour, commissioner at ASIC. “Our ability to effectively supervise all participants in Australian markets is crucial for the confident participation of investors.”
The new rules will replace ASIC’s previous licensing exemptions for foreign providers and will come into effect over a two-year transition period.
New foreign financial service providers will be able to apply for a licence under the new regime from April 1, 2020.
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