Wholesale Marketing Relief in Australia
Typically non Australian domiciled financial services firms who have contact only with wholesale clients are granted relief under a variety of class orders issued by the Australian Securities and Investments Commission (“ASIC”) from the need to have an Australian Financial Services Licence (“AFSL”). The firms are referred to as Foreign Financial Service Providers (“FFSPs”).
However there have been growing regulatory and industry concerns in Australia that FFSPs are not properly using the class order relief system. In September 2016 ASIC released a consultation paper granting a temporary extension of certain class orders for another 2 years as the matter is under consideration and also proposing removing or amending class orders in the future.
In March 2017, ASIC penalised three Barclays entities for breaches of the conditions of the ASIC class order licensing exemptions relied on by them. The affected companies are Barclays Capital Inc. (BCI) domiciled in the United States of America, Barclays Capital Asia Limited (BCAL) domiciled in Hong Kong and Barclays Capital Securities Limited (BCSL) domiciled in the UK (‘the Barclays entities”).