Parliament passes exemptions for foreign financial service providers

The Federal Parliament has passed the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2026 on 1 April 2026, which introduces substantial amendments to Australia’s foreign financial service provider (FFSP) regime.

The Bill updates exemptions available to FFSPs seeking to provide financial services in Australia. The exemptions are set to commence 12 months after Royal Assent, which the Bill is yet to receive. Accordingly, the start date of the new legislation will be at a date to be determined, but after 1 April 2027. We are expecting further guidance from ASIC on the transition process.

Implications for offshore providers

There were no changes to the proposed FFSP exemptions since the Bill was re-introduced to Parliament last year.

Once the Bill commences, FFSPs will need to:

• assess eligibility for the updated exemptions;

• review cross‑border marketing practices; and

• consider whether reliance on an exemption remains viable, or if an AFSL becomes necessary.

Clayton Utz is advising a range of FFSPs on the practical implications of the revised FFSP regime. For further information on how these changes may affect your organisation, please contact our Financial Services Regulatory team.