The Senate Economics Legislation Committee has just issued its report on Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2025. The bill includes the long awaited amendments to the Corporations Act to facilitate operation of foreign financial services providers (FFSPs) in Australia.
Three new exemptions from the requirement to hold an AFSL will be enshrined in the Corporations Act by the bill:
- Professional investor exemption – Exempting persons that provide financial services from outside Australia to professional investors
- Comparable regulator exemption – Exempting persons regulated by comparable regulators that provide financial services to wholesale clients
- Market maker exemption – Exempting persons making a market for derivatives able to be traded on specified licensed markets.
The professional investor exemption applies to a person if the financial service is provided only to professional investors from outside of Australia (except during limited marketing visits), where their head office and principal place of business are located outside Australia, and the person is allowed to legally provide the same or similar services in their home country. ASIC must be notified of reliance on this exemption. The current definition of professional investor is unchanged.
Fast-tracking for obtaining an AFSL is proposed by an exemption from the fit and proper person test for organisations authorised to provide financial services in comparable overseas regulatory regimes.
The committee has recommended that the Senate pass the bill which is currently in the House of Representatives.
Read the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2025 here.
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