The Australian Securities & Investments Commission warns UK companies operating in Australia that Brexit could impact on their AFS licensing arrangements. Anna Tobin reports
The Australian Securities & Investments Commission (ASIC), which regulates Australia’s corporate, markets and financial services, issued its 19-023MR document Preparing for Brexit today. Working with the UK Financial Conduct Authority, the Bank of England and other Australian financial authorities, the ASIC has been assessing how Brexit and, in particular, a no-deal Brexit will impact on UK companies operating in Australia and on Australian companies operating in the UK.
It is urging firms with global operations to review their Australian financial services (AFS) licensing arrangements as part of their broader preparations for Brexit. Foreign Financial Service Providers, for example, who relying on an AFS licensing exemptions, should consider the implications for their AFS licensing status where their global operations are to be transferred to a different EU subsidiary.
“In view of the Brexit date of 31 October 2019, we expect firms to have adequate contingency measures to mitigate the potential implications of Brexit for their operations and importantly, to ensure they have in place appropriate AFS licensing arrangements to provide services in Australia,” said ASIC Commissioner Sean Hughes.