Relief for foreign AFS licensees and ADIs remade by ASIC

ASIC News & Regulatory Updates

Published April 1st, 2026

Detected March 31st, 2026

Summary

ASIC remade ASIC Corporations (Foreign Licensees and ADIs) Instrument 2026/121, which exempts foreign AFS licensees from certain record-keeping and financial statement obligations under the Corporations Act 2001, and exempts foreign ADIs from AFS licence requirements when dealing in derivatives and FX contracts on their own behalf. ASIC also extended relief for lease asset calculations for AFS licensees to 1 May 2031.

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What changed

ASIC has remade the ASIC Corporations (Foreign Licensees and ADIs) Instrument 2026/121, which replaces the 2016 version (F2016L00451) and provides relief from certain obligations under the Corporations Act 2001. The new instrument exempts foreign AFS licensees from record-keeping obligations and the requirement to lodge audited financial statements under Division 6 of Part 7.8, and exempts foreign ADIs from the AFS licence requirement when dealing in derivatives and foreign exchange contracts on their own behalf. ASIC also extended ASIC Corporations (Licence Conditions—Treatment of Lease Assets) Instrument 2021/229 for five years to 1 May 2031, allowing certain AFS licensees to include lease assets in net tangible asset and liquid fund calculations.

Compliance teams should verify their reliance on the prior 2016 relief instrument transfers to the new 2026/121 instrument, and review any updated procedures for Form 405 Statement to verify financial statements of a foreign company. No immediate action is required as the relief is already in place and the new instrument does not impose new obligations. The instruments expire on 1 April 2031 and 1 May 2031 respectively.

What to do next

Verify existing reliance on prior relief instrument transfers to new ASIC Corporations (Foreign Licensees and ADIs) Instrument 2026/121
Review updated Form 405 procedures for minor updates to Statement to verify financial statements of a foreign company
Continue monitoring lease asset relief under extended Instrument 2021/229 expiring 1 May 2031

Source document (simplified)

Newsroom

Print Share ASIC has remade a legislative instrument providing relief for foreign companies that are Australian financial services (AFS) licensees and foreign authorised deposit-taking institutions (ADIs) and extended other relief following consultation with industry.

ASIC Corporations (Foreign Licensees and ADIs) Instrument 2026/121 exempts:

foreign licensees from record keeping obligations, and the requirement to lodge financial statements and have them audited under Div 6 of Pt 7.8 of the Corporations Act 2001, and
foreign ADIs from the requirement to hold an AFS licence when dealing in derivatives and foreign exchange contracts on their own behalf. The new instrument **** will replace ASIC Corporations (Foreign Licensees and ADIs) Instrument 2016/186. It will expire on 1 April 2031.

We have also extended the operation of ASIC Corporations (Licence Conditions—Treatment of Lease Assets) Instrument 2021/229 for five years to 1 May 2031. This instrument allows certain AFS licensees to include lease assets (right-of-use assets) when calculating their net tangible assets, adjusted surplus liquid funds and surplus liquid funds.

ASIC consulted on our proposal to remake the relief for foreign licensees and foreign ADIs, and to extend the relief for AFS licensees, in December 2025, and received no submissions.

In addition to remaking the relief, we will also make minor updates to Form 405 Statement to verify financial statements of a foreign company .

Named provisions

Div 6 of Pt 7.8 - Financial statements and audit relief for foreign licensees AFS licence exemption for foreign ADIs dealing in derivatives and FX contracts Lease asset calculations for net tangible assets and surplus liquid funds