The Government has introduced the Treasury Laws Amendment (Streamlining and Improving Economic Outcomes for Australians) Bill 2022 into the House of Representatives to, amongst other things, amend the Corporations Act to prescribe exemptions for foreign financial service providers  from the need to hold an Australian financial services licence.

Foreign financial services providers are overseas providers of financial services, including (but not limited to) banking, investment funding, wealth management, insurance, and financial advisory services.

The Bill provides the following exemptions:

• an exemption from the requirement to hold an Australian financial services licence for persons that provide financial services from outside Australia to professional investors (the professional
  investor exemption);
• an exemption from the requirement to hold an Australian financial services licence for persons regulated by comparable regulators that provide financial services to wholesale clients (the
  comparable regulator exemption); and
• an exemption from the fit and proper person test for persons regulated by comparable regulators when applying for an Australian financial services licence for the provision of financial services to wholesale clients (the fit and proper person test exemption).

If the Bill is passed it will commence on 1 April 2023.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.