What Is An Australian Financial Services License? How To Get It

If your company plans to provide financial services in Australia, then you need to get an Australian Financial Services license (AFS).

An AFS is necessary unless you are exempt or are authorized to provide those services as a representative of another person who holds an AFS license.

To be more specific, you will need to have your AFS license or be a representative of a licensee from the day you start your financial services business.

You will need a Financial Services License if you provide financial product advice to clients, deal in financial products, provide a custodial or depository service, operate a registered managed investment scheme, or conduct crowd-funding campaigns.

Our associates can help you with your Australian Financial Services license (AFS) requirements. Contact us and we will help you with the process.

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How To Get An Australian Financial Services License (AFS)
An applicant for an AFS license must complete an application consisting of form FSO1 and supporting core proof documents.

An applicant must have a good understanding of the financial services and products they propose to provide, understand the obligations of an AFS licensee, and have appropriate systems and processes in place.

Currently, the best way to apply for an AFS license is online using the eLicensing system. To get access to the online form, an applicant will need to register. This system individually tailors the application to your business.

AFS License Conditions
There are a few conditions that have to be met before an AFS license is issued.

For one to be eligible for an AFS license, your business needs to meet approved qualification and competency standards and, or have practical experience, with sufficient financial resources to carry on the proposed business.

Besides this, you will need to meet certain obligations of an AFS licensee such as training, compliance, insurance, and dispute resolution. Fees will vary depending on your circumstances.


Australian Financial Services License Online Application Process

Please note this is just a genetal idea of the application p

Part 1:
Enter your details as the applicant and the details of a contact person. Here you will also select the financial services and products that you want to be authorized to provide. In this part, you will provide answers to questions that describe your business.

Part 2: Here, you will be asked questions related to the obligations you will have as an AFS licensee and your ability to comply with them.

Part 3: Here, you will display where complex financial services or products have been selected in Part 1. Part 3 will include more detailed questions about those services.

Part 4: Here you will provide ASIC with declarations and certifications based on your answers in Parts 1 and 2.

Part 5: This will include the core proof documents to send as part of the application.

Important: As soon as you have submitted the application form, you must immediately send these to ASIC:

• A scanned and signed print out of the form and copies of the proof documents; and

• A cheque by post if you haven’t already paid the application fee by BPAY.

If you need more information about the Australian Financial Services License application process check here.