Introduction An Australian Financial Services Licence (AFSL) can become too narrow without a fundamental change to the business. A new advice model, financial product, retail offering, fund structure or platform feature may introduce financial services that fall outside the authorisations…
Introduction An Australian Financial Services Licence (AFSL) needs to remain aligned with the business operating under it. Adding a financial product, expanding into retail clients, changing responsible managers, bringing in a new controller or restructuring into another company can all…
Introduction Digital wallets, payment apps, remittance platforms, stablecoin products and embedded payment features can all bring a fintech within Australia’s financial services licensing regime. The key question is not the technology being used, but whether the arrangement allows a person…
Introduction A change to an Australian financial services licence (AFSL) holder’s responsible managers does not automatically require an AFSL variation. An ordinary responsible manager change generally requires notification to the Australian Securities and Investments Commission (ASIC). However, where the person…
Introduction An Australian financial services licence (AFSL) only authorises the financial services covered by its conditions. If a business changes, its activities can move beyond the services or financial products covered by its existing licence. Section 911A(1) of the Corporations…
Introduction A company that provides financial services in Australia does not always need to hold its own Australian Financial Services Licence (AFSL). In some circumstances, it can operate as a Corporate Authorised Representative (CAR) of an existing AFS licensee and…
Introduction Obtaining your own Australian Financial Services Licence (AFSL) is not the only way to provide regulated financial services in Australia. In some circumstances, a business can operate as an authorised representative (AR) of an existing AFS licensee and rely…
Introduction Operating a financial services business without the required Australian Financial Services Licence (AFSL) is not a minor compliance gap. If your business provides financial services in Australia without an AFSL covering those services, a valid exemption or an appropriate…
Introduction Businesses dealing with digital assets must determine whether their tokens or services fall within the financial product definitions under Section 763A of the Corporations Act 2001 (Cth) (‘Corporations Act‘). The Australian Securities and Investments Commission (ASIC) Information Sheet 225…
Introduction Under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (‘AML/CTF Act‘), every reporting entity must complete a documented risk assessment before providing any designated service. Section 26E makes it a civil penalty provision to commence services without a…
