media release (16-100MR)

ASIC remakes instruments on financial reporting and record keeping by foreign licensees

Published

Following public consultation, ASIC has continued the relief available to foreign companies which are Australian financial services licensees (foreign licensees) from certain financial reporting and record keeping obligations. ASIC has also continued relief available to foreign licensees which are authorised deposit-taking institutions (foreign Authorised Deposit-taking Institutions (ADIs)).

The relief applies is set out in the new legislative instrument, ASIC Corporations (Foreign Licensees and ADIs) Instrument 2016/186.

The new instrument replaces Class Orders [CO 03/823] Relief from licensing, accounting and audit requirements for foreign authorised deposit-taking institutions and [CO 06/68] Conditional relief for foreign licensees from financial reporting and record keeping obligations. ASIC remade these instruments as a single instrument without significant changes before they were due to sunset over the next few years under the Legislation Act 2003.

Relief from financial reporting and record keeping

The instrument:

  • exempts a foreign licensees from certain record keeping obligations and the need to lodge financial statements and have them audited provided it lodges with ASIC certified copies of a balance sheet, cash flow statement and profit and loss statement required in its place of origin together with the views of the auditor on those documents
  • exempts foreign ADIs from the requirement to hold an Australian financial services licence in specified circumstances when dealing in derivatives and foreign exchange contracts on their own behalf.

ASIC received no submissions in response to its consultation on remaking this relief under Consultation Paper 241 Remaking class orders on foreign licensees and ADIs: [CO 06/68] and [CO 03/823] (CP 241). Therefore we remade the instruments substantially in the form consulted on.

ASIC Corporations (Amendment and Repeal) Instrument 2016/182 revokes the previous instruments.

Download

 ASIC Corporations (Foreign Licensees and ADIs) Instrument 2016/186

Background

Under the Legislation Act 2003, all class orders are repealed automatically or ‘sunset’ after a specified period of time (mostly 10 years) unless we take action to exempt or preserve them. This ensures that legislative instruments like class orders are kept up to date and only remain in force while they are fit for purpose and relevant.

All government organisations are responsible for considering whether the legislative instruments they have made that are due to sunset will be relevant after their sunset date.

Read more about sunsetting class orders

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