Overview
What is financial services regulation?
The Australian regime of financial services regulation is very complex and is vigorously enforced by the Australian Securities and Investments Commission (ASIC). It covers a wide range of financial services and products. Some financial services entities are also regulated by the Australian Prudential Regulation Authority (APRA).
A financial services licence is needed to carry on a financial services business in or into Australia, unless an exemption is available. If you represent a foreign entity that provides its services or offers its products into Australia, you may be able to obtain exemptions.
Which types of financial products and services are regulated?
The financial services regulatory regime extends to securities, interests in managed (collective) investment schemes, derivatives (including futures), foreign exchange, government bonds, superannuation and life and general insurance, as well as facilities for financial investment, managing risks and with respect to non-cash payment facilities.
The financial services covered include the provision of advice, defined broadly, dealings of various kinds, including dealing by issuing in some cases, making a market as principal, custodial and depository services and acting as a manager ('responsible entity') of non-corporate managed schemes, trusts and funds.
In which instances do you need a market licence?
Providers of online or other facilities for principals to deal with each other commonly require a market licence, an area of very extensive regulation.
Bankers and other deposit-taking institutions, insurance underwriters and superannuation trusts are also regulated, both prudentially and especially with respect to superannuation trusts by APRA in addition to ASIC’s regulation.
Superannuation trusts require a licence from APRA as well as from ASIC.
What can we do for you?
Freehills has substantial expertise and experience across the whole area of regulation by ASIC, APRA and related relevant areas such as competition law.
We have hands-on experts in specific areas and they can advise and assist in dealing with ASIC, APRA, the Reserve Bank, the Australian Stock Exchange, and the Sydney Futures Exchange.
We work for or with other self-regulatory bodies of various kinds and industry bodies such as AFMA and IFSA.
We assist clients in:
- regulation and compliance—advice on all aspects of the impact of the Financial Services Reform Act (FSRA), including the requirements for licensing, financial services and products disclosure and the regulation of sales and marketing activities
- advising on compliance systems and strategies; ASIC inquiries, surveillance activities, and investigations, including potential criminal, civil and administrative actions arising out of breaches of the FSRA or license conditions
- all aspects of relevant legislation, including the Corporations Act, new privacy legislation and ASIC Policy Statements; and anti-money laundering
- ASX Listing and Business Rules and SFE Rules and reporting of public companies generally
- the impact of stamp duty and taxation laws
- ongoing advice on the management of schemes and the acquisition of units
- preparation and review of documentation for investment products
- structuring of new products and acquisition of assets.