Australian Financial Services – How do I “get” an AFS Licence?
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Level 35, 31 Market Street, Sydney NSW 2000 Australia
Unit 1-6, 25/f, building 1, chengdu international financial center, no.1, section 3, hongxing road, jinjiang district, chengdu city, sichuan province, zip code 610021
Generally, there are three manners for you to “get” an AFS Licence to conduct financial services businesses in Australia. Each method involves considerations regarding cost and time efficiency as well as your own unique business development plan.
1.Application for an AFS Licence
Australian Securities & Investments Commission (“ASIC”) assesses applications for AFS Licences as part of its role as regulator of the financial services industry. In its assessment, ASIC considers whether you have the competency and financial resources. In addition, you must be able to meet other obligations such as training, compliance and dispute resolution.
In order to be successful in your application for an AFS Licence, responsible managers (“RMs”) play a crucial role. Therefore, in your planning/application stage, we strongly recommend finalising your employment arrangements with the RMs.
This method involves an agreement with a current AFS Licensee followed by a lodgement with ASIC to update the financial services register. Upon successful lodgement, you will be authorised to provide the relevant financial services. As with all private agreements, negotiations play a significant role in the shaping of your agreement with a current AFS Licence holder.
Key items such as reporting obligations, data management, compliance arrangements and risk management must be emphasised so as to ensure an ongoing cooperative relationship between the parties.