ASIC to Sharpen Teeth with Further Regulatory Powers

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carriage-clock-797833_1280In late 2013 the Australian Government established a Financial Systems Inquiry, and this week they have released their response.

Of the 44 recommendations released by the Financial Systems Inquiry, the Government has accepted all but one. The implementation of the recommendations is stated as being beyond 2016, including one recommendation which has the ability to affect the margin FX and OTC derivative industry quite substantially.

It is well known that ASIC has not granted an Australian Financial Services Licence (AFSL) to a retail OTC derivative broker for the past 14 months to 2 years. Prospective investors from the Asia Pacific region, particularly from China, have been directly impacted by ASIC’s reluctance to license these providers with these types of AFSLs.

It has led to an increase in people exploring the option of purchasing an existing AFSL in order to enter the market. This can be a quick way to commence operations and many international investors consider this an attractive option.

Read more on Finance Magnates or on our Media page.

About The Author

Alicia Pevely

Alicia works across both Sophie Grace Pty Ltd and Sophie Grace Legal Pty Ltd with a particular focus on compliance and legal services. She manages the licensing and compliance aspects of the business. She is responsible for AFSL and ACL applications, variations and assists the compliance team in the implementation of compliance reviews. She provides ongoing compliance support and assists with the preparation of legal advice, commercial agreements and disclosure documents. 

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