AFS License in Australia– An Overview

Aspect Details
What is AFS License? An AFS License is a legal permit issued by the ASIC, allowing individuals or business entities to deliver financial services in Australia.
Benefits of AFS License Registration
  • Legal Authorization for Financial Services
  • Credibility and Market Reputation Uplift
  • Greater Business Flexibility and Autonomy
  • Consumer Protection and Market Integrity
  • Access to Broader Financial Markets
Types
  • Financial Product Advice License
  • Dealing in Financial Products License
  • Market Making or Underwriting License
  • Custodial or Depository Services License
  • Managed Investment Scheme (MIS) License
  • Foreign Financial Services Provider (FFSP) Exemption or License
Who is eligible to Apply?
  • Individuals
  • Business Entities
Documents required
  • Form FS01 - AFS License Application Form
  • Business Description - Services, Target Audience, Business Model & Delivery Methods
  • Organizational Chart - Reporting Lines & Responsibilities
  • Financial Statements & Projections - Balance Sheet, Income Statement & Cash Flow Forecast
  • Proof of Professional Indemnity Insurance - ASIC’s Minimum Coverage Provisions
How can Enterslice help you?
  • Evaluating the business model and scope of AFS license
  • Guidance to select suitable license authorizations
  • Assistance with Responsible Manager selection and profiling
  • Drafting and reviewing all ASIC-compliant documents
  • Offering post-license compliance and reporting assistance

Launch Your Financial Venture in Australia with an AFS License

Enterslice experts helps you get the AFS License in Australia with ease.

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What is AFS License? 

An AFS license, also known as an Australian Financial Services license, is a legal authorization issued by the Australian Securities and Investments Commission (ASIC) that enables businesses and individuals to deliver financial services legally in Australia. This license is mandatory for operating a financial services business, providing financial products, or managing investment schemes in Australia. Granted by the ASIC under the Corporations Act 2001, it ensures that providers comply with all the relevant laws and regulations.

If you are a foreign business looking to establish financial services operations in Australia, Enterslice consultants can help you expedite the AFS license processing. This license outlines the commitments of license holders towards not just the clients but also the regulators, the public, and the financial services industry. It is a gateway to enter the Australian financial market lawfully and yield long-term benefits.

Legal permit to deal in financial products

Issued by ASIC under the Corporations Act

Mandates compliance with legal standards

Ensures consumer protection and fair conduct

Compulsory for financial service businesses

99% success rate in getting approval

Types of AFS License in Australia

Depending on the financial service offered, various types of AFS License in Australia are available. The Australian Securities and Investments Commission (ASIC) has outlined the license types required for delivering specific services, such as financial advice, financial products, and fund management.

Types include the following:

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Financial Product Advice License

AFS License registration, as a Financial Product Advice License, legally permits businesses to deliver personal or general advice about financial products, including shares, insurance, or superannuation. This advice can be provided to both retail and wholesale clients.

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Dealing in Financial Products License

Businesses or entrepreneurs that apply for an AFS License as a Dealing in Financial Products License are eligible to legally arrange, issue, apply for, obtain, vary, or dispose of financial products on behalf of their clients.

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Market Making or Underwriting License

Businesses or entrepreneurs that register a AFS License as Market Making or Underwriting License are legally permitted to make a market or underwrite financial products, such as shares or derivatives.

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Custodial or Depository Services License

Online AFS License registration in Australia, available to businesses and entrepreneurs as a Custodial or Depository Services License, enables them to deliver services, including holding financial products in trust for clients. This license is preferred by fund managers and wealth management firms.

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Managed Investment Scheme (MIS) License

A Managed Investment Scheme (MIS) License is the type of AFL License that allows businesses and entrepreneurs to operate and manage a registered MIS or investment fund in Australia legally.

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Foreign Financial Services Provider (FFSP) Exemption or License

The Foreign Financial Services Provider (FFSP) Exemption or License is a type of AFS License in Australia that allows offshore businesses to offer services to wholesale clients in Australia, however, under limited conditions.

Procedure for AFS License Registration in Australia

AFS license registration is a legal requirement to offer financial services in Australia. It is a stepwise and structured process that outlines a comprehensive procedure. The step-by-step process for AFS License registration in Australia includes the following:

Prepare Application Documents

The first step in the process of AFS License registration in Australia is to prepare the application documents, including form FS01, business details, organizational chart, financial statement and forecast and external dispute resolution membership. We help you with error-free documentation.

Application Submission

The next step to register a AFS License requires the applicants to digitally submit the collected documents along with the application form through the ASIC Regulatory Portal. Application submission is a charm with Enterslice experts.

Establish Compliance Arrangements

The next step for an AFS License in Australia requires the applicants to create internal policies for risk management, conflict protocols and compliance manuals.

ASIC Review and Feedback

The next step for AFS License registration involves confirmation of application acceptance by ASIC. If accepted, ASIC proceeds to evaluate the application to determine the usefulness of proposed managers and other resources available to the applicants. ASIC may issue requisition letters, outlining the concern areas or request more information.

Final License Issuance

The last step in the AFS License process requires the applicants to meet all the conditions, enabling ASIC to issue the AFS license in Australia. Depending on the depending on authorization type, applicants may be required to fulfil other conditions to receive their final license and commence legal operations in Australia.

Timeline to Get Online AFS License in Australia

Obtaining an online AFS License in Australia is a stepwise process. If applicants follow the procedure, the process usually takes 5 to 8 months to complete. Depending on the complexity of the application and ASIC’s response time, the step-by-step procedure includes the following-

Document Preparation: 2 to 3 Weeks

The first step in the AFS License process is to prepare the documents and initiate background checks, which usually take 2 to 3 weeks to complete.

Application Submission: 1 to 2 Weeks

The next step in the process for AFS License in Australia is to submit the documents along with the application through ASIC's online portal. The application and documents must be verified, and this step takes 1 to 2 weeks to complete.

Compliance Arrangements: 2 to 4 Weeks

The next step for AFS License registration is to develop internal policies and compliance frameworks, and it takes about 1 to 2 weeks to complete.

ASIC Review and Feedback: 3 to 4 Months

The next step in the process to apply for AFS License requires ASIC to evaluate the application, raise requisitions, and submit draft license terms. It takes 3 to 4 months to complete this step.

Final AFS License Issuance: 1 to 2 Weeks

Once ASIC is satisfied with all the conditions, it issues the final AFS License in Australia. This step typically takes 1 to 2 weeks to receive the license to start legal operations in Australia.

Documents Required to Apply for AFS License in Australia

Entrepreneurs and businesses seeking to apply for AFS License in Australia are required to submit various documents, including the following:

Form FS01 - AFS License Application Form

Business Description - Services, Target Audience, Business Model & Delivery Methods

Organizational Chart - Reporting Lines & Responsibilities

Compliance Arrangements & Policies - Manuals, Risk Management, Training Policies & Dispute Resolution

Responsible Managers' (RMs) Information - Resume, Qualifications, Experience Letter & RG 105 Competency Proof

Financial Statements & Projections - Balance Sheet, Income Statement & Cash Flow Forecast

Proof of Professional Indemnity Insurance - ASIC’s Minimum Coverage Provisions

External Dispute Resolution (EDR) Membership - Certificate from Australian Financial Complaints Authority (AFCA)

ASIC Regulatory Guides - RG 1, RG 104, RG 105 & RG 166

Who is Eligible to Register a AFS License in Australia?

Individuals or businesses that meet various mandatory requirements by the Australian Securities and Investments Commission (ASIC) are eligible to register a AFS License in Australia. However, all such entities must strongly demonstrate the competence and resources required to deliver seamless financial services.

Applicants seeking to register a AFS License must appoint at least one responsible manager, ensuring adherence with ASIC’s RG 105 competency standards. Entities that have sufficient financial resources (as per RG 166), internal controls, dispute resolution systems (such as AFCA membership), and professional indemnity insurance can obtain this license. However, it is important to note that ASIC conducts due diligence background checks to validate the applicant’s character, including criminal and bankruptcy history.

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Benefits of AFS License in Australia

An Australian Financial Services or AFS License is issued by the ASIC under the Corporations Act 2001. This license allows service providers to operate legally in Australia. While the license holders can seamlessly deliver financial advice and products, some of the key benefits include the following:

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Legal Authorization for Financial Services

AFS License is the legal authorization that allows businesses and individuals to legally deliver advice, products, manage schemes, and hold custodial services under ASIC’s regulatory supervision.

Consumer Trust through Regulation and Oversight

AFS License in Australia is the key to earning consumer trust as it reflects professionalism and reliability. License holders are trusted by consumers because the process to obtain it is rigorous, requiring applicants to fulfill regulatory, compliance, conduct, training, and financial requirements set by ASIC.

Credibility and Market Reputation Uplift

AFS License registration requires applicants to meet strict compliance standards, which in turn boosts the business’s reputation among existing and potential clients.

Greater Business Flexibility and Autonomy

Obtaining an online AFS License in Australia facilitates businesses to exercise control over their product offerings, compliance systems, and advisor activities, allowing management without dealer group restrictions.

Consumer Protection and Market Integrity

Businesses that apply for an AFS License in Australia demonstrate commitment towards treating their clients fairly. They follow high disclosure standards and have robust risk management in place to safeguard consumers and stabilize markets.

Access to Broader Financial Markets

Registering an AFS License empowers businesses to offer diverse services and products in the financial market, allowing entry into new segments.

Demonstration of Competence and Insurance Coverage

AFS License in Australia mandates adherence to compliance requirements set by ASIC, serving as proof of the business's training, qualifications, financial capabilities, and professional indemnity insurance.

Opportunity to Self License and Evolve Practice

AFS License facilitates advisers’ complete control over business operations, allowing them to innovate delivery and create compliance systems to increase revenue.

Prerequisites for AFS License in Australia

  • Responsible Managers with Required Competence :- It is a must to appoint Responsible Managers (RMs) in accordance with ASIC's Regulatory Guide 105 (RG 105) for AFS License in Australia.
  • Adequate Financial Resources :- Applicants are required to fulfil all the financial requirements under RG 166, such as solvency, net tangible assets, and cash flow projections to apply for AFS License in Australia.
  • Internal Compliance Systems :- It is a must to develop a robust compliance framework, including written policies for risk, training, record-keeping, and legal compliance to register a AFS License in Australia.
  • Professional Indemnity Insurance :- As per the ASIC mandate, applicants must have professional indemnity insurance in place to cover civil liabilities and compensation for retail clients at the time of submitting AFS License application.
  • Membership with External Dispute Resolution Scheme :- AFS License registration requires the applicants to hold membership of the Australian Financial Complaints Authority (AFCA) to manage consumer complaints.

Why is AFS License Registration in Australia Important?

AFS License registration in Australia is important as it serves as a gateway for individuals and businesses to deliver financial services in Australia legally. This license is a mandatory compliance requirement and is granted under the Corporations Act 2001.

AFS License registration in Australia is issued by ASIC, and it mandates adherence to all regulatory compliance requirements to encourage transparency and safeguard consumer interests. This license helps the holders build credibility, which in turn boosts investor trust and facilitates access to wider financial markets. No business or entity can offer financial product advice, deal in products, or manage investment schemes without this AFS license in Australia.

Services for AFS License in Australia by Enterslice

Enterslice is an expert in helping businesses obtain AFS License in Australia. Our consultants offer assistance with every step of the licensing process. We ensure businesses meet regulatory compliance to deliver a smooth experience while dealing with ASIC.

  • Pre-application eligibility check
  • Helping prepare Form FS01
  • Finding the Responsible Manager
  • Help draft compliance manuals
  • Help with financial resource planning
  • Assist with risk management framework design
  • Guidance on professional indemnity insurance
  • Assistance with AFCA membership
  • Handle ASIC communication
  • Offer post-license compliance advisory
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Why Enterslice is the Best Choice for AFS License in Australia?

Registering an AFS License in Australia is a complex and time-consuming process. It requires the applicants to adhere to various regulatory, compliance and financial requirements. Enterslice is a global consultancy expert, and our consultants have the required experience to handle AFS License processing. We help simplify the process, ensure full compliance, and offer paperwork assistance.

Our expert legal and financial guidance expedites ASIC approvals, helping applicants launch their operations legally.

  • Helped in securing 1000+ AFS Licenses in Australia
  • Evaluating the business model and scope of the license
  • Guidance for selecting suitable license authorizations
  • Assistance with Responsible Manager selection and profiling
  • Drafting and reviewing all ASIC-compliant documents
  • Assistance with Form FS01 on the ASIC portal
  • Helps develop compliance and risk management frameworks
  • Offering support with AFCA membership and insurance needs
  • Liaising with ASIC during assessments and queries
  • Assistance with financial projections and resource planning
  • Offering post-license compliance and reporting assistance

FAQs on AFS License Registration in Australia

An AFS License is the legal permit granted by the Australian Securities & Investments Commission (ASIC) to businesses and individuals. This license authorizes the holders to deliver a variety of financial services to their clients, including investment advice or product dealing.

Anyone, including a foreign national, who intends to deliver financial services such as product advice, investment management, or dealing in financial products in Australia must obtain an AFS License under the Corporations Act 2001 and ASIC regulations.

Yes, individuals and businesses can apply for an AFS License through ASIC’s online eLicensing portal. The application requires submission of Form FS01 and several supporting documents, along with meeting all regulatory and financial requirements.

The AFS License registration process involves document preparation, appointing Responsible Managers, submitting Form FS01, implementing internal compliance arrangements, and responding to ASIC's feedback. Enterslice provides complete support throughout this structured process.

An AFS License is only required for a pharmaceutical business if it is involved in offering financial services, such as investment schemes or issuing securities. If not engaged in such activities, the license is not required.

Typically, the registration process takes 4 to 8 months. However, the timeline may vary depending on application complexity, completeness of documents, and ASIC’s review process.

Required documents include Form FS01, detailed business description, organizational chart, financial statements, Responsible Managers' qualifications, compliance policies, proof of professional indemnity insurance, and AFCA membership certificate.

AFS License registration provides the legal foundation to offer financial services in Australia. It enhances business credibility, ensures regulatory compliance, protects consumer interests, and enables access to broader financial markets.

An AFS License allows businesses to legally operate in Australia's financial sector, offering services like investment advice and product dealing. Benefits include enhanced trust, self-licensing flexibility, compliance control, and competitive advantage in the market.

Online AFS License application is a complex process and you need an expert to guide you steer past. Enterslice is a pioneer global consultancy firm with a team of experts who have the capability to deliver these services. Our consultants and legal experts specialize in financial regulation and can assist you complete your AFS License application without any regulatory and legal hassles. We offer end-to-end services, including eligibility check, assistance with documentation preparation, application submission, Responsible Manager setup, and compliance with ASIC regulations.

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