AFSL and Client’s funds

[A Holmes]

We are setting up a Forex Brokerage in Australia. Can anyone advise please?

1. Which ASFL is good to use?

2. Can an ASFL hold our client’s fund?

Many thanks

[Michelle Chasser]

Thanks for your question.

 

An AFS licence is required if you are carrying on a business of providing financial services.  This may include providing financial product advice to clients, dealing in a financial product, or making a market for a financial product.  In applying for an AFS licence you must complete an application form and lodge it with ASIC.

 

To ensure the licence authorisations you apply for are appropriate to your business requirements, you must be familiar with your business and understand which financial services and products you must select in your application, to enable you to carry on the business.  We refer you to ASIC Regulatory Guide 1 which contains information on preparing and applying for an AFS licence.

 

We refer you also to ASIC Regulatory Guide 212 which contains information on client money.

 

As the application needs to be tailored to your business and the financial services it offers, we suggest that you seek professional advice.  It is important that you adhere to the relevant legislation and regulations.

 

For further information contact our Financial Services Team.

 

Author: Michelle Chasser

 

Co-contributor: Greta Walters

 

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