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Author: Admin | 2025-04-28
The Australian financial services market is heavily regulated in Australia – and one of the most basic requirements is the need to hold an Australian Financial Services Licence. This is the licence required by entities to conduct a business involving the provision of financial services and products.Below, we’ll outline what an Australian Financial Service Licence is, who needs one and how you can get one.What is an Australian Financial Services Licence?An Australian financial services licence (AFSL) is a licence granted by the Australian Securities & Investments Commission (ASIC) to:Provide financial adviceDeal with a financial product (such as securities)Operate a ‘registered scheme’Provide services as a traditional trustee companyMake a market for a financial product (for instance, where you would quote a price to sell or buy financial products like bonds)Put simply, if you want to operate a financial services business, you’ll need an AFSL.Who needs an AFSL?Anybody who wants to run a financial services business will need an AFSL.Chapter 7 of the Corporations Act 2001 (Cth), the primary corporations legislation in Australia, says that entities must hold an AFSL if they carry on a business involving the provision of a financial service or a financial product.“Financial services” is a broad term but can include:Advising clients on whether to buy or sell a particular financial instrumentIssuing shares, or arranging for the purchase and sale of stockCustodial servicesDepository servicesCrowdfunding servicesClaims handing and settling servicesSuperannuation trustee servicesA “financial product” is defined as a facility through which a person makes a financial investment, manages financial
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