Depending on your circumstances, you may be exempt from the requirement to hold an AFS licence or you may provide financial services under a limited AFS licence. You may also choose to provide financial services as an authorised representative of an AFS licensee. This exemption means that financial counsellors can give financial product advice as part of a financial counselling service without a licence, as long as the financial counselling agency: doesn’t charge any fees or receive any remuneration arising from the financial counselling service doesn’t run,. A debenture issuer who carries on a financial services business of dealing in debentures will generally be required to hold an AFS licence except where they are merely dealing in their own securities.
However, the self-dealing exemption does not apply where a person: (a) carries on a business of investment in securities, interests in land or other investments, and (b) invests the contributions of investors after an offer or invitation to the public made on terms that the funds subscribed would be invested (see section 766C(5)). We have briefly considered these factors in the following paragraphs.
See full list on asic. The extent to which the activities are repetitious or systematic is relevant to whether a person is carrying on a business. We generally do not consider that lending money can be characterised as an investment, at least where there is no understanding that the repayments will be coming from any particular assets or core commercial activity held by the person who borrows the money from the debenture issuer (the borrower). A disclosure memorandum issued by a person, even to a person to whom disclosure is not required under section 7of the Corporations Act, coul depending on the circumstances, amount to an offer to the public.
However, we take the view that where the offer is extended only to particular professionals in the business of investment, it is not to be regarded as an offer to the public. There are no general licensing exemptions for debenture issuers providing financial product advice about debentures. This exemption does not apply to documents that are not issued under the Corporations Act, such as information memoranda provided to wholesale clients.
As a result, even if a debenture issuer does not need an AFS licence to offer its debentures to professional investors (because it is not a public offer under section 8 as outlined earlier), it would still technically need an AFS licence if it provides information memoranda containing financial product advice.
We are considering what, if any, relief might be appropriate. Certain other licensing exemptions may apply to the provision of financial product advice. AFSL under the existing regime. There are exemptions from the requirement to provide a PDS to a ‘retail investor’: 1. If less than $2m is raised by the AFS Licensee from fewer than ‘retail investors’ in a rolling 12-month perio an exemption applies to effectively treat them as ‘wholesale investors’. If you provide a financial service you need to consider whether you must hold an Australian financial services (AFS) licence or hold an authorisation from a licensee: see RG 36.
Register the foreign collective investment scheme 02. Notably, the foreign AFS licensee will be exempt from the following key requirements: To have adequate resources, such as financial, technological or human resources, to provide the financial services and supervisory arrangements of the licence. The process is fairly similar to applying for a new AFSL, however, there may be some exemptions to facilitate the application.
As a result, litigation funders do not face the same regulatory scrutiny and accountability as other financial services and products under the Corporations Act. Further exemption “Contracts required by foreign law” As a separate additional ground of exemption, an arrangement with a UFI that is required by the law of a foreign jurisdiction will be exempt. All the data will be provided to you instantly, so you don’t waste even a minute of your time! The Regulations also preserve the exemptions that currently apply to certain litigation funding schemes in the insolvency context and litigation funding arrangements which are used in actions involving a single plaintiff. Specifically, the Tax Institute believes reintroducing a limited form of the accountants’ exemption should be considered.
There are certain circumstances in which a foreign person or company may carry on a financial services business in Australia without holding an AFS licence: see Section D. Exemptions from the licensing requirement RG 121. FFSP is regulated by the relevant overseas regulatory authority (e.g. the SEC, FCA or other) under the laws of the relevant overseas jurisdiction, which differ from Australian laws. What you need to know.
Treasury has released draft legislation setting out how it intends to regulate insurance claims handling and settlement as a financial service. Double tax agreement exemptions 3. Overview of double tax agreement exemptions The DTAs between Australia and selected other countries provide for an exemption from IWT for interest paid to financial institutions (as defined). Also, insurers who enter into an intermediary authorisation with an AFS licensee that has the claims handling authorisation will be exempt.
Taking action on recommendation 4. Note: Section 66A defines exempt body. It is intended to provide to commonly asked questions in relation to exemptions and to provide information to potential applicants on the process for making an application. AUSTRAC consults with industry and other government agencies before making such an exemption, which is then registered and tabled in Parliament. A reporting entity can apply to AUSTRAC to have exemptions or modifications granted specifically to them.
ASIC power to modify or exempt.