S/C/N/ 1014  
 
 
16 June  2020 
(20-4233) Page: 1/2 
Council for Trade in Services  Original:  English  
  
  
NOTI FICATION PURSUANT TO ARTICLE VII :4 
OF THE GENERAL AGREEMENT  ON TRADE IN SERVICES  
 
 
The following notification , dated 15 June  2020, from the delegation of  the Australia  is being circulated 
to the Members of the Council for Trade in Services.  
 
 
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1  MEMBER NOTIFYING : 
Australia  
2  NOTIFICATION UNDER  ARTICLE:   
Article VII, paragraph 4 , of the General Agreement on Trade in Services  
3  DATE OF ENTRY INTO FORCE : 
Foreign Australian financial service licensing regime : 
  
▪ 1 April 2020 for new foreign financial services providers  
▪ 1 April 2022 for existing foreign financial services providers relying on old sufficient 
equivalence relief  
 
Funds management licensing relief : 
 
▪ 1 April 2022  
 
3.1  Duration:  
10 years from the date of e ntry into force  
4  AGENCY RESPONSIBLE FOR ENFORCEMENT OF THE MEASURE : 
Australian Securities and Investments Commission  
5  DESCRIPTION OF THE MEASURE : 
The Australian Securities and Investments Commission (ASIC) has introduced a new regulatory 
framework for foreign financial services providers (FFSPs) that wish to provide financial services to 
wholesale clients or professional investors in Australia.  
 
ASIC’s new regulatory framework has two key elements:  
 
▪ A new foreign Australian Financial Service (AFS) licensing regime for FFSPs; and  
▪ Licensing relief for FFSPs of funds management financial services seeking to induce some 
types of professional investors.  
 S/C/N/ 1014 
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  Foreign AFS licensing regime  
 
The new foreign AFS licensing regime is available to FFSPs that are au thorised under an overseas 
regulatory regime that ASIC has assessed as sufficiently equivalent to the Australian regulatory 
regime. The FFSP holding a foreign AFS licence will be exempt from certain obligations that apply to 
standard AFS licensees as ASIC acknowledges that similar regulatory supervision and outcomes will 
be achieved by the equivalent overseas requirements.  
 
This relief will replace ASIC’s sufficient equivalence relief.  
 
FFSPs relying on ASIC’s existing broad relief to carry on a financial  services business in Australia 
have a two -year transition period to comply with the new licensing framework. However, new 
entrants to Australia will be required to apply for a foreign AFS licence if they are from a sufficiently 
equivalent jurisdiction or seek to rely on other exemptions available under Australian law.  
 
Funds management licensing relief  
 
This relief is available for FFSPs inducing certain types of Australian professional investors to use the 
funds management financial services they provide . FFSPs must separately consider if they need to 
hold a licence to actually provide financial services in Australia.  
 
This relief will replace ASIC's limited connection relief, which is broader in scope.  
 
6  MEMBERS SPECIFICALLY AFFECTED, IF ANY : 
None 
7  TEXT AV AILABLE FROM : 
Australian Securities and Investments Commission  
  
Telephone: +61 3 5177 3988  
 
Postal: GPO Box 9827, Brisbane, QLD, 4001  
 
Legislation :  
 
New FFSP regulatory framework : 
 
▪ Foreign AFS licensing regime: ASIC Corporations (Foreign Financial Services Providers —
Foreign AFS licensees) Instrument 2020/198  
▪ Funds management licensing relief: ASIC Corporations (Foreign Financial Services Providers —
Funds Management Financial Services) Instrument 2020/199  
 
Old FFSP relief framework : 
 
▪ Sufficient equivalence relief: ASIC Corporations (Repeal and Transitional) Instrument 
2016/196  
▪ Sufficient equivalence relief for Luxembourg entities: ASIC Corporations (CSSF –Regulated 
Financial Services Providers) Instrument 2016/1109  
▪ Limited connection relief: ASIC Corporations (Foreign Financial Services Provides —Limited 
Connection) Instrument 2017/182  
Further information : 
▪ Regulatory Guide "RG 176: Foreign financial services providers " 
▪ Information Sheet "INFO 157: Foreign financial services provide rs: Practical guidance on 
transitional arrangements " 
 
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