AFSL (Australian Financial Service License) - Australia
An Australian Financial Services (AFS) license is a legal authorization for an individual or business to conduct financial services operations in Australia and is required for businesses that deal with, advise on, or manage financial products
On this page
Quick facts
Regulator / authority
Australian Securities and Investments Commission (ASIC)
Coverage
Financial product advice, dealing in financial products, securities, derivatives, foreign exchange contracts, and portfolio management in Australia and outside of Australia
Best for
The best solution for businesses entering the Australian market: Investment and Wealth Management Firms, Brokerage and Trading Platforms, Fintech Investment Platforms, Managed Funds and Investment Schemes, Crypto and Digital Asset Platforms, and Custody and Financial Infrastructure Providers
Local presence
Required (Australian legal entity)
Substance level
High (it is required a legal entity within Australia, typically a private company (i.e., Pty Ltd.), to hold a valid Australian Business Number (ABN) or Australian Company Number (ACN), to have at least one Australia-resident director, and to have at least two responsible managers with relevant experience)
Banking friendliness
High
Who this is for
Best fit
- Investment platforms
- Financial advisers
- Fund operators
- Custody/trust services
- Corporate finance or product dealers
- Crypto Platforms Offering Financial Products
- Wealth Management Firms
- Stored-value facilities / e-wallets structured as financial products
What you can do (scope)
- Provide financial product advice to clients
- Deal in financial products
- Make a market for a financial product
- Operate a registered managed investment scheme
- Provide custodial or depository services
- Provide traditional trustee company services
- Provide superannuation trustee services
- Operate a corporate collective investment vehicle (CCIV)
Requirements overview
Company & presence
It is necessary to establish a legal entity in Australia with ASIC, such as a Pty Ltd company, with at least 1 resident director (the director must pass fit and proper assessments) and a valid ABN/ACN. A physical office is required, and you must demonstrate your presence in Australia. AFSL holders must appoint responsible managers who have relevant financial services experience and demonstrate competence in the licensed activities.
Key persons / governance
At least one Australia-resident director; there can be appointed foreign directors too. Directors and responsible managers must take a fit and proper person test. Responsible managers should each have 3–5 years of relevant experience.
Capital / safeguarding / bonds
Minimum Net Tangible Assets (NTA): 50,000 AUD.
AML/CTF baseline expectations
The baseline AML/CTF expectations for AFSL firms generally include: documented AML/CTF program, risk-based compliance framework, customer due diligence procedures, transaction monitoring systems, suspicious activity reporting, record keeping requirements, AML compliance officer, staff training and periodic independent review.
Reporting / audits
Where applicable, AFSL holders are required to submit regular reports to AUSTRAC and ASIC: Suspicious Matter Reports (SMRs), Threshold Transaction Reports (TTRs), and International Funds Transfer Instructions (IFTIs) are submitted when there are reasonable suspicions of unlawful activity. Periodic internal audits and evaluations of their AML/CTF controls should be conducted by AFSL holders to guarantee that they are still functional and in compliance with regulatory expectations and risk assessments. Annual Financial Statements (balance sheet, profit and loss statement, cash flow statement, notes to the financial statements). Financial Resources Compliance (RG166) (Net Tangible Assets (NTA) compliance, liquidity requirements, ability to meet operating expenses). Compliance Reporting to ASIC (significant compliance breaches occur, financial services laws are violated, investigations into misconduct start). AFSL holders must maintain records for at least 7 years, including client records, transaction records, compliance reports and financial records.
Process (end-to-end steps)
Step 1: Structuring & Regulatory Pre-Assessment
Defining the scope of financial services activities (financial product advice, dealing, market making, custody, managed investments, etc.). Determining financial products involved (securities, derivatives, FX contracts). Identifying target clients (retail vs wholesale investors). Assessing regulatory risk profile and licensing category. Confirming financial resources and Net Tangible Assets (NTA) requirements. Identifying shareholders, directors, responsible managers (RMs), and compliance officer.
Step 2: Incorporation of the AFSL Licensing Entity
Incorporation of an Australian proprietary limited company (Pty Ltd). Registration with ASIC and obtaining an Australian Company Number (ACN). Appointment of directors (usually at least one Australian resident director). Appointment of Responsible Managers (typically two individuals with relevant qualifications and experience). Establishment of a registered office and principal place of business in Australia.
Step 3: Compliance Framework & Documentation Preparation
Preparation of regulatory documentation demonstrating the company's business plan / business description, compliance manual, risk management framework, conflicts of interest policy, compliance monitoring program, training and competency policy, client disclosure procedures (FSG, PDS, SOA where applicable), complaints handling and dispute resolution policy, financial resources and liquidity management framework, AML/CTF compliance framework (if financial transactions are involved).
Step 4: Capitalisation & Operational Readiness
Meeting Net Tangible Assets (NTA) financial thresholds. Preparing financial statements and projections. Obtaining professional indemnity insurance. Establishing internal governance and compliance oversight. Joining the Australian Financial Complaints Authority (AFCA) if retail clients are involved. Ensuring staff training and competency frameworks are in place.
Step 5: AFSL Application Submission & ASIC Review
The application package typically includes: AFSL application forms, corporate documentation, Responsible Manager proof of competence, fit & proper assessments, business model description, compliance and risk management documentation, financial resource calculations and projections.
Step 6: Licence Approval & Post-Licensing Implementation
ASIC issues the Australian Financial Services Licence. The licence holder receives an AFSL number and authorised activities. Post-approval steps typically include: finalizing operational systems and compliance monitoring, activating financial services operations, implementing ongoing reporting and compliance frameworks, maintaining financial resource and audit requirements, ongoing supervision by ASIC and compliance with reporting obligations.
What's included in our support
- Registration of the Pty Ltd. in Australia
- Liaising with the regulator ASIC during the processing of the application
- Corporate documents (certificate of registration of a company, application for director registration)
- Preparation of business documentation
- Preparation of AML/CTF policies and other compliance framework
- Assistance with ASIC Form FS01
- Preparation of Responsible Manager personal statements
- Preparation of fit and proper declarations
- Preparation of financial resources statement
AFSL - Australia
From EUR 195,000
FAQ
With an Australian Financial Services Licence (AFSL) a firm may lawfully offer financial services in Australia. These services include giving financial advice, selling financial goods, keeping money safe, or running investment programs.
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