AFSL licencing and regulation
We will help you understand and meet your licensing obligations as a financial services business.
Businesses that provide financial advice, deal in financial products, or operate in the financial services industry need to understand whether they require an Australian Financial Services Licence (AFSL) and the obligations which come with holding one.
Getting this wrong carries serious consequences: operating without a required licence is a criminal offence, and operating outside the scope of an existing licence exposes the business and its responsible managers to regulatory action. We advise financial services businesses on their licensing position, help them apply for or vary an AFSL, and assist them to design compliance arrangements that meet their ongoing regulatory obligations.
What is an AFSL and when do you need one?
An Australian Financial Services Licence (AFSL) is a licence issued by the Australian Securities and Investments Commission (ASIC) that authorises a business to provide financial services in Australia. The categories of financial service that require an AFSL include giving financial product advice, dealing in financial products, making a market for financial products, operating a registered scheme, and providing a custodial or depository service. Not every business that touches financial services needs its own AFSL, but determining which category applies requires a careful analysis of the specific activities the business conducts or intends to conduct.
Does my business need an AFSL?
Whether your business needs an AFSL depends on the nature of the financial services you provide. The Corporations Act 2001 (Cth) requires a person to hold an AFSL (or be authorised under someone else’s licence) if they provide a financial service in this jurisdiction. The most common triggers are giving financial product advice, arranging deals in financial products, and operating an investment scheme. There are some exemptions, for example, for certain professional service providers, but these are narrowly defined. We advise on whether your activities require licensing and, if so, what the appropriate path is.
How long does it take to get an AFSL?
What are my ongoing obligations as an AFSL holder?
An AFSL holder must maintain the organisational competence and compliance arrangements described in their licence conditions, keep adequate financial resources, have appropriate dispute resolution processes in place, maintain professional indemnity insurance, and report to ASIC on a range of matters including significant breaches. The obligations are substantial and ongoing, they do not stop once the licence is granted. We advise licensees on their ongoing compliance obligations and assist them to design internal systems that meet ASIC’s requirements without imposing unnecessary operational burden.
What happens if I operate without an AFSL when one is required?
Operating a financial services business without a required AFSL is a criminal offence under the Corporations Act 2001 (Cth) that carries significant penalties including fines and imprisonment. It also exposes the business to civil liability and can result in the voiding of contracts entered into in the course of the unlicensed activity. ASIC actively monitors for unlicensed conduct, particularly in emerging areas such as digital assets, credit intermediation, and managed fund arrangements. If you are uncertain whether your activities require an AFSL, the safest course is to obtain a definitive legal opinion before you begin operating.
A clear licensing opinion before you launch.
A complete, well-documented application.
Ongoing compliance support that works in practice.
Licensing questions are easier to resolve before you start operating than after ASIC has raised them.
You cannot undo the cost of operating without a licence, but you can avoid it entirely.
You have a financial services business (or you are building one) and you are not entirely sure whether your activities require a licence, whether your current licence covers what you are now doing, or what your obligations are as a licence holder. Operating in the wrong category or without the right authorisations exposes you to regulatory action that can end a business and create personal liability for its responsible managers.
- We will analyse your business model and advise on your licensing obligations.
- We will prepare and submit an AFSL application or variation on your behalf.
- We will advise on your ongoing compliance obligations as an AFSL holder.
- We will assist you to design compliance systems that meet ASIC's requirements.
You need to get the licensing right from the start.
You are launching a financial services business and you need to understand what licensing you require before you begin offering services. Or you already hold a licence, but your business has expanded and you are not certain whether your current authorisations cover what you are now doing. Either way, you know the regulatory stakes are high and that getting this wrong early can create problems that are very difficult to fix.
What's included in your AFSL licensing and regulation service
- Licensing analysis and opinion for your specific business model.
- AFSL application preparation and submission.
- AFSL variation application (for changes to authorisations).
- Responsible manager assessment and documentation.
- Compliance framework design and review.
- Ongoing compliance advice and regulatory guidance.
What happens when a financial services business gets its licensing wrong?
A financial services business that operates without a required licence or outside the scope of an existing one faces consequences that go beyond regulatory fines. The regulator can seek injunctions, void contracts entered into in the unlicensed period, and refer conduct for criminal prosecution. For the business’s responsible managers, the personal exposure is significant: individuals can be personally liable for the conduct of the unlicensed business, and prosecution in this area is not theoretical.
Beyond the direct legal consequences, an enforcement action destroys client confidence, makes it almost impossible to obtain or retain a licence, and may permanently end a career in financial services. The regulatory risk accumulates quietly until something triggers scrutiny — at which point every month of unlicensed operation becomes relevant.
Here is how we give your financial services business a compliant foundation.
We start with a clear analysis of your business model and give you a definitive view on what licensing you need. If an AFSL application is required, we prepare a complete, well-documented submission that addresses every requirement the regulator will examine: your business model, your compliance arrangements, your dispute resolution memberships, your professional indemnity insurance, and your responsible managers’ qualifications.
From licensing analysis to ongoing compliance, we support the full journey.
Understand your position.
We analyse your business model and advise on whether you need an AFSL, which authorisations are required, and whether any exemptions may apply to your specific activities.
Apply for your licence.
We prepare and submit a complete AFSL application or existing license variation covering every requirement the regulator will assess, so your application is approved without unnecessary delay.
Build a compliant business.
With your licence in place, we help document your obligations and establish compliance framework so your business stays on the right side of ASIC.
Financial services lawyers with deep AFSL licensing and regulatory experience.
We understand you want to know the cost, before we get started.
We will map out our process, from beginning to end, so you know what the journey will look like before you get started.
We will provide you with a clear and detailed Work Proposal covering each step along the way.
Our fair fees are all-inclusive. No hidden costs for telephone calls, emails, photocopying, couriers, or coffee.
Our great lawyer guarantee
We want to be part of your team over the long term. We achieve this by adhering to these core principles:
Take the time
We listen carefully to understand what you want to achieve. Then we thoroughly explain our advice and step you through the documents. You can be sure you know the full consequences.
Share our knowledge
We will pass on as much knowledge as we can, so you can make your own informed decisions. We want to make you truly independent.
Stick to our knitting
We only do what we're good at. You can be confident that we know what we're doing and don't pass on the cost of our learning.
Work as one team
Someone will always be available to answer your questions, or point you in the right direction. You will also benefit from a range of perspectives and experience.
Fair pricing
For advice and documents, we provide a fixed or capped quote so you don't take price risk. If you're in a dispute, we map out the process and costs so you know what to expect.
It's your show
We're not in this for our egos. We're in it for a front row seat to witness your success.
