In the 2021-22 Budget, the Government announced as part of the Global Talent Attraction package that it would consult on options to restore previously well-established regulatory relief for Foreign Financial Service Providers (FFSPs) and options to create a fast-track licensing process for those that wish to establish more permanent operations in Australia.
FFSPs provide Australian investors with access to global investment opportunities and overseas markets. FFSPs also attract investment and liquidity into Australia. These services are important for many Australian industries, such as the superannuation industry, to support diversified investment portfolios. Australian businesses also benefit from having greater access to overseas funding markets which provide growth opportunities. These measures are intended to reduce duplicate regulation and barriers for FFSPs entering the Australian market.
We are seeking stakeholder feedback on options that aim to:
- provide Australian licensing relief to FFSPs that are already similarly licensed and regulated in other jurisdictions that want to enter the Australian market,
- provide Australian licensing relief to FFSPs not based in Australia that provide financial services to their Australian clients, and
- fast-track the licensing process for FFSPs that will require a licence to operate in Australia.
The consultation paper poses questions to draw out which options are preferred and understand the implications of applying these options.