In a previous client alert we informed you of ASIC's decision to release a consultation paper seeking feedback on its proposal to repeal Class Order 03/824 Licensing Relief for financial services providers with limited connected to Australia dealing with wholesale clients (Class Order).
The Class Order exempts foreign financial services providers (with limited connection to Australia and who deal with wholesale clients only) from the requirement to hold an Australian financial services licence. The Class Order was due to expire on 1 April 2017. Baker McKenzie made a submission to ASIC in relation to the consultation paper.
As a result of the public consultation, ASIC have temporarily remade the Class Order in the form of ASIC Corporations (Foreign Financial Services Providers - Limited Connection) Instrument 2017/182 (Legislative Instrument). The Legislative Instrument will continue to provide licensing relief for foreign financial services providers (with limited connection to Australia and who deal with wholesale clients only) for the next 18 months, until 27 September 2018.
The extension of relief under the Legislative Instrument will allow ASIC to review market and regulatory developments and seek detailed information from the industry about the use of the Class Order and the likely implications if it were to be repealed.