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Thanks for your question.
There are three ways to provide activities that require licensing in Australia and this does not include borrowing another business’s licence.
The three options include:
- Applying for an AFSL;
- Becoming an Authorised Representative (“AR”) under an existing AFSL; or
- Buying an existing business (e.g. company) that holds an AFSL.
If you consider becoming an AR under an existing licence, you should be mindful that the AFS licensee can be very stringent with its due diligence process and ongoing monitoring procedures.
Licensees that “rent” or “lend” their licences to other parties may be scrutinised by ASIC because “borrowing” a licence is not within the intention of the law.
We can assist you with any of the above options. Please contact our financial services team for further information.
Author: Paul Derham