Table of Contents
What is a financial services Business Corporations Act?
The Corporations Act 2001 imposes: a single licensing regime for financial sales, advice and dealings in relation to financial products, consistent and comparable financial product disclosure, and a single authorisation procedure for financial exchanges and clearing and settlement facilities.
WHO issues Australian financial services Licence?
ASIC
The AFSL is issued by ASIC under Chapter 7 (section 911A) of the Corporations Act 2001, in line with its regulatory supervision of the financial services industry. Australian Financial Service Businesses must submit an application to ASIC coupled with supporting documents to be assessed.
What is Chapter 7 of the Corporations Act?
Chapter 7 of the Corporations Act governs (among other things) the provision of financial services and the offer and sale of financial products other than securities. Chapter 6D of the Corporations Act regulates the offer and sale of securities.
What does an Australian financial services Licence AFSL do?
The Australian Federal Government agency that enforces laws relating to companies, securities, financial services and credit, in order to protect consumers, investors and creditors.
How do I get a financial services Licence in Australia?
To be eligible for this licence you must:
- meet approved qualification and competency standards and / or have practical experience.
- have sufficient financial resources to carry on the proposed business.
- be able to meet certain obligations as a licensee such as training, compliance, insurance and dispute resolution.
How much does it cost to get an Afsl?
The application fee for an online application by a company ranges from $3,721 for financial planner through to $,7,537 for a responsible entity or market maker.
What is the Financial Services Reform Act 2001?
The Bill aims to harmonise the regulatory regime for the financial services industry. The Bill establishes a single licensing regime for the provision of financial services. The regime will capture entities that deal in a financial product, provide financial product advice or make a market for a financial product.
Which types of businesses must hold an Australian financial services Licence?
You may need an AFS licence if, as part of your business, you:
- provide financial product advice to clients.
- deal in a financial product.
- make a market for a financial product.
- operate a registered scheme.
- provide a custodial or depository service.
- provide traditional trustee company services.
- provide a crowd funding service.
Do you need AFS licence to do business in Australia?
You must have an Australian financial services (AFS) licence to conduct a financial services business. If you carry on a business of providing financial services, you must hold an AFS licence (unless you are exempt or are authorised to provide those services as a representative of another person who holds an AFS licence).
What are the regulations for financial services in Australia?
ASIC’s regulatory guidance on compliance with the financial services regime. The Corporations Act 2001 imposes: a single licensing regime for financial sales, advice and dealings in relation to financial products, consistent and comparable financial product disclosure,
Is the financial services licence still in effect?
Under Note 11 of The Commonwealth of Australia Constitution Act, The Corporations Act 2001 can be seen as still in effect Australian Financial Services Licence (AFSL) is a legal licence provided by the Australian Securities and Investments Commission (ASIC) enabling the operation and activities of Australian Financial services Businesses.
What does it mean to be financial services licensee?
“financial services licensee” means a person who holds an Australian financial services licence. “foreign exchange contract” means a contract: (a) to buy or sell currency (whether Australian or not); or (b) to exchange one currency (whether Australian or not) for another (whether Australian or not).