ASIC Regulatory Guide 166: Licensing: Financial requirements
This guide explains the financial requirements that you must meet as the holder of an Australian financial services (AFS) licence. These requirements vary in their application depending on the nature, scale and complexity of your financial services business.
The requirements do not apply to you if you are a body regulated by APRA; however, if you hold a registrable superannuation entity (RSE) licence and are also authorised to operate registered managed investment schemes, these requirements will apply: see RG 166.15 166.17. If you are prudentially regulated overseas, you can apply to us for relief from the requirements: see RG 166.18 RG 166.22.
The AFS licensee obligations and our licence conditions apply whether you are a natural person, a partnership, one of several trustees, or a bodycorporate. For partnerships and trustees, it is sufficient if any of the partners complies under s761F(1)(a) or any of the trustees under s761FA(3)(a) of the Corporations Act 2001 (Corporations Act).
Note: In this paper, references to sections (s), chapters (Chs) and parts (Pts) are to the Corporations Act, unless otherwise specified. References to regulations (regs) are to the Corporations Regulations 2001 (Corporations Regulations), unless otherwise specified. RG 166.2 This guide applies to all AFS licensees, except:
(a) bodies regulated by APRA that are not subject to s912A(1)(d) (see RG 166.4–RG 166.6);
(b) bodies subject to an alternative form of foreign prudential regulation—where we are satisfied that the foreign prudential regulation appropriately addresses the licensee obligations for financial resources and risk management (see RG 166.7–RG 166.10); and
(c) market and clearing participants if the financial requirements of the relevant market or clearing and settlement (CS) facility are an adequate substitute (see Appendix 1).
Note: The guidance on adequate arrangements to manage risk at RG 166.21 applies to market and clearing participants.
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