+61 2 8960 7242

ASIC to Sharpen Teeth with Further Regulatory Powers

Posted on November 2nd, 2015 by Sophie Gerber in AFSLs

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.

Alicia Pevely

Alicia works with Sophie Grace Pty Ltd with a particular focus on compliance and legal services. She assists clients with AFSL and ACL applications, variations and also assists in the implementation of compliance reviews. She provides ongoing compliance support as well as assisting in the preparation of legal advice, commercial agreements and disclosure documents.