ASIC extends foreign AFSL exemptions

After receiving no response to a public consultation, ASIC has continued the rules that exempt foreign licensees from certain record-keeping obligations.

The corporate regulator announced last week it would continue the relief available to foreign companies holding AFSLs in a new instrument that replaces the class order due to expire over the next few years.

At the same time, ASIC also continued relief available to foreign entities that are authorised deposit-taking institutions (ADIs) from being required to hold an AFSL in specified circumstances. 

In October 2015, ASIC released a consultation paper seeking feedback on proposals to remake the class order as a single instrument without significant changes.

"ASIC received no submissions in response to its consultation on remaking this relief under Consultation Paper 241 remaking class orders on foreign licensees and ADIs," the regulator said.

"Therefore we remade the instruments substantially in the form consulted on."

The new instrument exempts foreign licensees from certain record-keeping obligations, as well as the need to lodge financial statements and have them audited.

The licensees are, however, required to lodge certified copies of a balance sheet, cash flow statement and profit and loss statement together with the views of the auditor on those documents.

Foreign ADIs can be exempted from holding an AFSL when dealing in derivatives and foreign exchange contracts on their own behalf. 

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