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On 5 December 2025, ASIC announced another 12 months extension to the transitional arrangements for the current FFSP AFSL exemptions (the passporting exemptions and limited connection exemption) which will now expire on 31 March 2027. These FFSP exemptions were previously set to expire on 31 March 2026.
Background
- The passporting exemptions and limited connection exemption which operate to exempt foreign financial services providers (FFSPs) from the need to hold an Australian financial services licence (AFSL) when providing financial services to wholesale clients in Australia and were due to expire on 31 March 2026 (see our earlier article of 31 July 2024).
- In 2022 the Government had proposed a bill to introduce legislation to replace the passporting exemptions and limited connection exemption with new FFSP exemptions called the 'comparable regulator exemption' and the 'professional investor exemption'.
- The 2022 bill lapsed on the calling of the general election in 2022 (see our earlier article of 11 April 2022).
- A second bill to introduce the new FFSP exemptions was introduced into Parliament in 2023 (see our earlier article of 30 November 2023).
- The second bill contained some contentious superannuation reforms and so was split in late 2024 so that the FFSP exemptions could be proposed again in Parliament in a stand alone third bill: the Treasury Laws Amendment (Miscellaneous Measures) Bill 2024 (Third Bill).
- The Third Bill was not passed before the 2025 general election was called, and lapsed (see our article of 28 March 2025).
- A fourth bill containing the proposed FFSP exemptions was introduced on 26 November 2025: Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2025 (Fourth Bill) (see our article of 26 November 2025).
Update
The Australian corporate regulator, the Australian Securities and Investments Commission (ASIC) has announced a further 12 months extension of the transitional arrangements for the current FFSP AFSL exemptions, the passporting exemptions and limited connection exemption, until 31 March 2027.
The extension is effected by ASIC Corporations (Foreign Financial Services Providers) Instrument 2025/798which remakes the relief previously provided under ASIC Corporations (Repeal and Transitional) Instrument 2016/396.
The transitional arrangements for the current FFSP AFSL exemptions were previously set to expire on 31 March 2026.
We will continue to monitor the status of the Fourth Bill and provide an update when one becomes available.
The Fourth Bill has been referred to the Senate Economics Legislation Committee for inquiry with submissions due by 21 January 2026, and a reporting date of 26 February 2026.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
