ASIC has extended its relief for foreign financial service providers (FFSPs) from the requirement to hold an Australian financial services (AFS) licence when providing financial services to Australian wholesale clients by Luxembourg fund managers.
The relief in ASIC Corporations (CSSF-Regulated Financial Services Providers) Instrument 2016/1109 applies to Luxembourg fund managers who are either:
- management companies, which can manage undertakings for collective investment in transferable securities relating to the undertaking for collective investment of Luxembourg (2010 Law) that come under Chapter 15 of the 2010 Law (Chapter 15 Management Company), or
- investment companies established under Part I of the 2010 Law that have designated themselves as “self-managed” (Self –Managed UCITS).
The relief applies until 28 September 2018. This period is consistent with the extension of relief ASIC gave to FFSPs in ASIC Corporations (Repeal and Transitional) Instrument 2016/396. It will allow ASIC to consider the policy settings for all FFSPs comprehensively.
Applying for reliance
Luxembourg fund managers who meet the terms of the legislative instrument should apply for reliance in the same way as for other foreign financial services providers as set out in Regulatory Guide 176 Foreign financial service providers (RG 176) and 15-051MR ASIC facilitates foreign financial services providers applying for exemptions.
Background
FFSPs regulated by certain overseas regulators who wish to provide financial services to wholesale clients in Australia can apply to us to rely on certain exemptions. Where we allow the FFSP to rely on one of these exemptions, the FFSP can provide certain financial services to wholesale clients in Australia without the need to hold an AFS licence under s911A of the Corporations Act 2001.
Detailed guidance on the contents of the documents to be submitted in support of the application is available in RG 176 and Information Sheet 157, Practical guidance for foreign financial service providers.
On 28 September 2016, ASIC extended for two years its relief from the requirement to hold an AFS licence when providing financial services to Australian wholesale clients: see ASIC Corporations (Repeal and Transitional) Instrument 2016/396.