The new legislative Instrument 2016/186 continues the relief available to foreign companies that hold an Australian Financial Services Licence (“AFSL”) from certain financial reporting and record keeping obligations.
- exempts a foreign AFSL holder from:
- the need to lodge financial statements and have them audited provided it lodges certain documents with ASIC; and
- certain record keeping obligations.
Foreign AFSL holders
Foreign entities that are AFSL holders can obtain conditional relief from preparing and lodging audited financial statements and keeping financial records in relation to their financial services businesses, provided that they lodge the following documents with ASIC at least once each calendar year:
- a certified copy of their balance sheet;
- a certified copy of their cash flow statements;
- a certified copy of their profit and loss statement; and
- a certified copy of a document setting out the views of the licensee’s auditor about the above three documents as required to be prepared by the laws of the foreign AFSL holder’s home jurisdiction.
Class Orders [CO 03/823] and [CO 06/68], which dealt with each of these arrangements separately, have now been replaced by the single Instrument 2016/186, which can be accessed here: https://www.legislation.gov.au/Details/F2016L00451
If you would like further information about whether this relief may apply to your company, please contact us.
Sophie is the director of both Sophie Grace Legal Pty Ltd and Sophie Grace Pty Ltd. Sophie has worked with some of Australia’s largest financial services organisations in compliance, legal and operational roles. She has also worked with small businesses to provide tailored solutions with a strong understanding of business practicalities as well as obligations to regulators.