ASIC Corporations (Foreign Financial Services Providers - Funds Management Financial Services) Instrument 2020/199

This instrument gives a limited exemption from the requirement in subsection 911A(1) of the Corporations Act 2001 for some foreign financial services providers. The exemption is aimed at cross-border funds management activity, not general financial services activity in Australia.

The exemption is available only where the provider is carrying on a financial services business in Australia only because of section 911D of the Corporations Act in relation to funds management financial services provided by that person. If the provider is in Australia for broader reasons, or is carrying on other Australian financial services business outside this setting, this instrument may not help.

The instrument is also highly conditional. It only applies if the provider gives ASIC the required written confirmations, has and maintains an agent for service, does not have a place of business in Australia, and continues to meet the ongoing conditions.

The instrument is mainly relevant to foreign providers that want to deal with Australian institutional investors and similar wholesale market participants in a funds management context. It is also relevant to the Australian entities receiving those services, because they need to confirm they fit the definition of an eligible Australian user before assuming the provider can rely on the exemption.

An eligible Australian user is limited to the categories listed in the instrument. These are:

This means the exemption is not drafted for retail clients, local councils, or ordinary Australian companies that do not fall within one of those categories. If there is any doubt about whether the Australian recipient fits the definition, that should be checked before services begin.

The instrument defines funds management financial service in detail. It covers certain financial services provided to an eligible Australian user in relation to offshore fund financial products, and certain services provided under a portfolio management services mandate.

In broad terms, the covered services include dealing, financial product advice, some market making activity connected with redeeming or buying back products, and custodial or depositary services. The exact scope depends on whether the service relates to offshore fund financial products directly or is provided under a portfolio management services mandate.

For offshore fund financial products, the covered services to an eligible Australian user are:

The instrument also covers certain services provided to an eligible Australian user under an agreement or arrangement to provide portfolio management services, described as a portfolio management services mandate. Under that kind of mandate, the covered services include dealing in financial products, providing financial product advice in relation to financial products, making a market in or issued by a managed investment scheme as a result of redeeming or buying back those products, and custodial or depositary services under or in relation to the mandate.

The definitions of offshore fund, offshore fund financial product and wholesale trust are technical and should be checked against the instrument if your structure is unusual. For example, the definition of offshore fund includes certain managed investment schemes established outside Australia and not operated in Australia, and can also extend to certain non-licensee investment vehicles formed outside Australia.

The main trigger point is when a foreign provider plans to provide covered funds management financial services to an eligible Australian user and wants to do so without holding an AFSL. Before relying on the exemption, the provider should confirm each threshold issue.

These checks matter at onboarding, when expanding services, when changing the provider's operating structure, and when the provider's home jurisdiction changes. They also matter if the Australian client changes capacity, for example if a trust structure or licensing position changes.

To access the exemption, the provider must give ASIC written confirmation covering the matters set out in the instrument. This is not a general notice. The confirmation must address specific points.

If the provider's home jurisdiction changes after giving the written confirmation, a new written confirmation for the new home jurisdiction is required, but only from 30 days after the day the home jurisdiction changes.

The provider must have an agent for service. The instrument defines who can act in that role and what authority they must have.

An agent for service must be either a natural person ordinarily resident in Australia or a company. The agent's name and address must have been provided to ASIC in writing for the purposes of the instrument. The agent must also be authorised to accept, on the provider's behalf, service of process from ASIC and, in proceedings relating to a financial services law, from the persons referred to in subsection 659B(1) of the Corporations Act.

This is not a one-off formality. A provider relying on the exemption must not fail to have an agent for service for any consecutive period of 10 business days. The provider must also give ASIC written details within 10 business days if a natural person ceases or commences as agent for service, or if the name or address of the agent changes.

Once the exemption is being relied on, the provider's obligations continue. The instrument is built around ongoing regulatory access and cooperation, not just an initial filing.

In practice, the provider should be ready to respond if ASIC asks for a written statement about the financial services business carried on in Australia. The provider must also give ASIC, or a person authorised by ASIC, reasonable assistance in relation to compliance with financial services laws and ASIC's other functions.

The provider must also support information sharing with its overseas regulator when requested, by giving or varying written consent and taking all other practicable steps needed to enable and assist disclosure between ASIC and the overseas regulator.

Australian counterparties should not treat this as purely the provider's issue. If the exemption is central to the arrangement, onboarding and periodic review should include evidence that the provider has made the required confirmations, still has a valid agent for service, and still has no place of business in Australia.

Several common situations sit outside this instrument.

If any of these issues are present, the provider may need to consider an AFSL, another exemption, or a different structure. This page does not assume any alternative relief is available.

The current compilation states that the instrument commences on 1 April 2027. The compilation in force on 5 December 2025 includes several amendments over time, and the amendment history shows section 2, dealing with commencement, has been amended multiple times.

That amendment history matters. Businesses should not rely on an old summary or an earlier commencement date. Before acting, check the latest compilation and any later amendments on the Federal Register of Legislation.

The instrument history in the current compilation records the original instrument and later amending instruments in 2021, 2022, 2023, 2024 and 2025. Because the commencement provision has changed over time, current-date verification is especially important for transaction planning and onboarding timetables.

Before relying on the exemption in a live matter, businesses should work through a practical checklist against the instrument itself.

If any answer is uncertain, the exemption should not be assumed. The definitions are technical and the instrument is narrow by design.

This page is based on the current compilation of ASIC Corporations (Foreign Financial Services Providers - Funds Management Financial Services) Instrument 2020/199 on the Federal Register of Legislation, compilation No. 5, in force on 5 December 2025. The instrument is made under subsection 926A(2) of the Corporations Act 2001.

Because the instrument has an amendment history and the commencement provision has changed over time, businesses should always check the latest registered version before relying on the exemption.