Released 6 November 2026. Comments close 4 December 2026.
ASIC is seeking feedback on proposals to support the transition to the new foreign financial services provider (FFSP) regime, which commences on 8 April 2027.
We propose to:
- publish regulatory guidance that helps explain eligibility criteria and conditions of exemptions available under the new FFSP regime
- extend existing transitional relief for FFSPs by six months, until 1 October 2027, and
- provide conditional class relief under the new professional investor exemption to accommodate certain global operating models.
The proposals are intended to support an orderly transition, provide greater certainty for FFSPs and accommodate certain global operating models while maintaining appropriate regulatory safeguards.
See Related information for the draft regulatory guidance, draft amendment instrument and draft conditional class relief.
A consultation paper was not issued for this consultation.
Key proposed changes
Regulatory guidance
ASIC proposes to publish regulatory guidance to explain the new FFSP regime, the available statutory exemptions and eligibility criteria, the applicable conditions and the initial and ongoing notifications that FFSPs must give ASIC.
We propose to include guidance on our approach to administering various aspects of the new FFSP regime, including the requirement for FFSPs to notify ASIC of any significant enforcement actions against them in the overseas jurisdiction.
We invite feedback on whether the draft guidance on the new exemptions available to FFSPs and the conditions associated with relying on an exemption under the new regime are appropriate.
Extension of transitional relief
The new FFSP regime will replace the current ASIC relief framework for FFSPs. ASIC proposes to extend its existing sufficient equivalence and limited connection relief for FFSPs that currently rely on this relief for six months.
ASIC’s sufficient equivalence relief and limited connection relief are due to expire on 31 March 2027. Under the proposal, the transitional relief would continue until 1 October 2027. The proposed six-month extension is intended to support an orderly transition to the new FFSP regime. FFSPs that rely on the current relief will need to transition to the new regime or apply for an AFS licence, as appropriate.
ASIC also proposes to repeal ASIC Corporations (Foreign Financial Services Providers—Foreign AFS Licensees) Instrument 2020/198 on 30 September 2027. Repeal of that instrument would not automatically cancel a foreign AFS licence. A foreign AFS licensee that does not apply to cancel its licence and instead relies on an exemption under the new regime will need to ensure that it complies with the applicable AFS licence obligations: see paragraph 11A of Pro Forma 209: Australian financial services licence conditions (PF 209).
ASIC proposes to repeal ASIC Corporations (Foreign Financial Services Providers—Funds Management Financial Services) Instrument 2020/199 when the amendment instrument commences, because the professional investor exemption under the new regime replaces that relief.
We invite feedback on:
• whether the proposed transitional arrangements are appropriate and useful
• any practical issues associated with the repeal of our transitional relief, and
• any additional relevant matters.
Conditional institutional investor class relief
The professional investor exemption under the new FFSP regime may apply where an FFSP provides financial services from outside Australia to professional investors in Australia. Some FFSPs operate through integrated global operating models that transfer trading, risk management and operational functions between offices in different time zones. Under these models, individuals in Australia may support a financial service that is principally provided from, supervised, and managed offshore.
ASIC proposes conditional class relief that would allow individuals in Australia to support an offshore FFSP’s provision of financial services.
Under the proposal, the relief would be available only where:
- the FFSP has a related entity that holds an Australian financial services (AFS) licence
- the relevant financial service is principally provided from offshore and relates to an offshore financial product
- the financial services are provided to institutional investors in Australia, and
- the FFSP ensures that activities provided under the relief are provided efficiently, honestly and fairly.
Relevant considerations in determining whether a financial service is principally provided from offshore may include the locations of responsibility for the service, decision-making, execution, booking, risk ownership and supervision.
The proposed relief is intended to accommodate legitimate global operating models while maintaining the distinction between financial services provided principally from offshore and financial services that should be provided under an AFS licence. ASIC proposes that the relief would expire after five years.
We invite feedback on:
- whether the proposed scope and conditions of the relief are clear, appropriate and workable, and
- whether the factors ASIC should consider in determining whether a financial service is principally provided from offshore are clear and appropriate.
Impact analysis
Before settling the final instruments and guidance, ASIC will consider the likely regulatory impacts of the proposals. To assist ASIC to understand those impacts, we invite feedback on:
- the expected upfront and ongoing compliance costs or savings associated with the proposed six-month extension, conditional class relief and regulatory guidance, and
- in relation to the conditional class relief:
- any changes FFSPs would otherwise need to make to their operating models to comply with the professional investor exemption without the proposed relief
- whether the proposed conditions would create practical difficulties, uncertainty or unintended consequences, and
- any effect on Australian institutional investors’ access to offshore products, markets, liquidity or expertise.
Where possible, please provide specific examples and dollar estimates of compliance costs or savings.
Providing feedback
We invite feedback on our proposals. You should send your submission to rri.consultation@asic.gov.au by 5 pm AEDT on 4 December 2026.
You may choose to remain anonymous or use an alias when providing feedback. However, if you do remain anonymous we will not be able to contact you to discuss your feedback should we need to.
We will not treat your feedback as confidential unless you specifically request that we treat the whole or part of it (such as any personal or financial information) as confidential.
Please see our privacy policy for more information on how we handle personal information, your rights to seek access to and correct personal information, and your right to complain about breaches of privacy by ASIC.
Background
The new FFSP regime under Schedule 2 to the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Act 2026 commences on 8 April 2027.
The regime provides exemptions from the requirement to hold an AFS licence for FFSPs that:
- provide financial services from outside Australia to professional investors, or
- are regulated by comparable regulators and provide financial services to wholesale clients, or
- make a market for certain derivatives traded on a prescribed licensed market.
An FFSP that intends to rely on one or more statutory exemptions must notify ASIC and comply with the conditions of the relevant exemption.
The new FFSP regime also introduces a fast-track process for FFSPs that apply for an AFS licence by exempting them from the ‘fit and proper’ test if they are authorised to provide financial services in a comparable overseas regulatory regime.
The reforms are intended to ensure regulatory oversight of activity by FFSPs in the Australian financial markets while facilitating the provision of cross-border financial services.
The new FFSP regime replaces the sufficient equivalence relief, limited connection relief and foreign AFS licensing regime that comprise ASIC’s current relief framework for FFSPs providing financial services to professional and wholesale clients in Australia.
As at the date of publication of this consultation, there are no prescribed comparable regulators for the purposes of the comparable regulator exemption as the relevant legislative instrument has not yet been made and no prescribed licensed markets for the purposes of the market maker exemption as the relevant regulations have not yet been made.
Related information
Attachment 1: Draft RG 176 Foreign financial service providers (PDF 456 KB)
Attachment 2: ASIC Corporations (Amendment and Repeal) Instrument 2026/XX (PDF 273 KB)
ASIC consults on relief and guidance for the new foreign financial services provider regime