On 17 February 2021, the Treasury Laws Amendment (Streamlining and Improving Economic Outcomes for Australians) Bill 2022 (Bill) was introduced into Parliament with a first reading in the House of Representatives.
Schedule 1 to this Bill gives effect to legislative reforms to the exemptions for foreign financial service providers (FFSPs) from the need to hold an Australian financial services licence (AFSL), as discussed in our earlier article Consultation paper released on financial services licensing exemptions for foreign financial service providers. These reforms introduce:
- the new 'professional investor exemption' - to replace the limited connection exemption;
- the new 'comparable regulator exemption' - to replace the passporting exemptions; and
- an exemption from the fit and proper person test for FFSPs applying for a wholesale AFSL, to fast track their application.
The Bill has evolved from the exposure draft of the legislation released for consultation on 20 December 2021 (which we reported in our previous update) and it may be amended further while it is considered by Parliament.
To read about the key changes to the draft legislation from the exposure draft, see our summary here.
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