Extension to current licensing relief for Foreign Financial Services Providers still uncertain as deadline approaches

Transitional Australian Financial Services (AFS) licensing relief for Foreign Financial Services Providers (FFSPs), which is due to expire on 31 March 2026, has not yet been extended.

In ASIC's 2025 update on licensing and professional registration activities published on 10 November 2025, ASIC acknowledges the 31 March 2026 expiry date, but states that it will announce its position on extending the relief closer to the expiry date.

Currently, many FFSPs rely on licensing relief, which allows them to operate in Australia without needing a full AFS licence. This relief includes two main types:

• Sufficient Equivalence Relief: For providers from countries with similar financial regulations to Australia. This may be in the form of mutual recognition relief or interim licensing relief.

• Limited Connection Relief: For providers with minimal links to Australia.

A new framework for FFSP licensing relief was in the Treasury Laws Amendment (Miscellaneous Measures) Bill 2024, but it lapsed when the Federal Election was called in May 2025 and has not yet been reintroduced to Parliament. Given that there is only one remaining parliamentary sitting week in 2025, it is unlikely that the FFSP relief legislation will pass before the end of the year.

Whilst we expect ASIC will grant an extension of the transitional relief period beyond 31 March 2026, this is not definitive, and in light of the approaching deadline, FFSPs currently relying on licensing relief will need to maintain a close watching brief on ASIC's announcement regarding an extension of the relief period. If ASIC does not announce an extension shortly, FFSPs will need to consider their options for continuing to provide financial services to persons in Australia post-31 March 2026.

Please don’t hesitate to contact us if we can assist you with any of the above.