What You Need To Know About Australia's FFSP Regime

Australia's Foreign Financial Service Provider (FFSP) regime is changing. From 9 April 2027, new exemptions will replace existing relief. 

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FFSPs that cannot rely on them may need to hold an Australian Financial Services Licence (AFSL) or look to rely on alternative relief such as a corporate authorised representative appointment (if suitable).

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The New Rules FFSPs Should Be Aware Of

A person who carries on a financial services business in Australia generally must hold an AFSL under the Corporations Act 2001 (Cth). Historically, FFSPs could operate without an AFSL through individual relief instruments, sufficient equivalence relief or limited connection relief. In December 2025, ASIC extended these relief instruments, currently prolonging them until 31 March 2027.

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In April 2026, the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Act 2026 introduced two new exemptions, commencing 9 April 2027.

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We anticipate the existing relief will likely be extended to 9 April 2027 so there is no gap between the date the existing relief expires and the date the new FFSP exemptions begin.

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The Professional Investor Exemption 

This applies where: 

• The financial service is provided only to "professional investors" (a narrower subset of “wholesale clients”) 
• The FFSP operates from outside Australia (with a 28-day per year allowance for marketing visits), and
• The FFSP’s head office and principal place of business are located outside Australia.

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The FFSP must also reasonably believe the financial service doesn't contravene local law.

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The Comparable Regulator Exemption 

This exemption replaces sufficient equivalence relief. It applies where the financial service is provided solely to "wholesale clients" and the FFSP holds authorisations from a recognised comparable regulator. The list of comparable regulators isn't finalised, but it's expected to include the UK, USA, Singapore, Hong Kong and others.

Both exemptions carry conditions, including notifying ASIC and clients of reliance on them.

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Funds Management Relief

Separately, the Funds Management Relief commences 1 April 2027. It exempts eligible foreign providers of certain funds management services from holding an AFSL. This relief covers offshore fund financial products and products under portfolio management mandates for "eligible Australian users”.

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Four Steps To Take Before April 2027

1. Assess whether your business can rely on the new exemptions before the deadline.
2. If not, this is the time to begin your AFSL application or look for an alternative exemption from the requirement to hold an AFSL (such as a corporate authorised representative appointment, if suitable). ASIC currently takes around six to nine months to process an AFSL application.
3. Note the notification requirements, as both exemptions require FFSPs to notify ASIC and clients of their reliance.
4. Monitor for further details on the comparable regulator list and other outstanding elements of the new regime.

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The Window Is Shorter Than It Looks

April 2027 may feel distant, but AFSL processing times and outstanding regulatory details make early action essential. Several elements of the new regime are still to be confirmed, and leaving your assessment too late can limit your options.

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Get in touch with PMC Legal to make sure your FFSP arrangements are compliant and ready before the April 2027 deadline.

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