Government delivers FFSP to Parliament

2 minute read  05.12.2023 Richard Batten, Prayas Pradhan, William Allchurch and Brooke Srour

Bill introduced to implement changes to Australia's FFSP licensing exemptions – with some key modifications to the earlier exposure draft.

On 30 November, the Australian Government tabled draft legislation in Parliament to implement changes to the licensing exemptions for foreign financial service providers (FFSPs). This follows consultation on an exposure draft (Exposure Draft), which is summarised in The new world for FFSPs.

Summary of the proposed changes

The Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023 (Bill) covers a number of proposed changes to financial services laws, including the proposed FFSP regime. The content of the Bill relating to FFSPs is very similar to the proposals in the Exposure Draft. However, there have been some changes, including:

  • a delay to the commencement date for the new exemptions to 1 April 2025 (rather than 1 April 2024);
  • only requiring FFSPs to provide financial services efficiently, honestly and fairly if they carry out their financial services business 'predominantly in Australia' – the explanation for this requirement is limited but it would seem to have the effect that it would not apply to services provided to Australian clients for most FFSPs (because they would predominantly carry out their business outside Australia);
  • only requiring FFSPs to submit to Australian jurisdiction in respect of proceedings brought by ASIC or another Commonwealth authority – i.e. it would not apply for example to proceedings brought by Australian clients or other third parties;
  • excluding days where representatives do not meet with clients from the 28 day limit on marketing visits under the professional investor exemption;
  • widening of the professional investor exemption by removing the restriction for dealings in certain financial products tradeable on certain licensed markets;
  • easing the comparable regulator exemption requirements by, removing the obligation for FFSPs to have adequate oversight and training of representatives, and removing the limitation that financial services must be provided from the home jurisdiction of the FFSP or in Australia; an
  • extending the time for reporting breaches from 15 to 30 business days to align with current requirements for licensees.

Next steps

The Bill will now be debated in Parliament and we expect it will be referred to a Parliamentary committee for consideration. There is likely to be a further opportunity to make submissions at that point. It is possible that the Government will make further changes before the Bill becomes law. We do not expect the Bill will pass both Houses of Parliament before the end of the year.


Please do not hesitate to contact us if you have any queries about the Bill.

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