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Being Australia’s major regulator of financial services, ASIC is charged with ensuring abidance by rules & regulations in the corporate & consumer sectors. It is also responsible for protecting consumers’ rights and overseeing the integrity of Australia’s financial system. Hence, establishing a financial company in Australia requires submitting an application with ASIC. 

Considering incorporating a financial enterprise in Australia? IQ Decision UK can provide legal advice on all matters related to incorporation of Australian financial enterprises.

2018 saw the Australian government establish a special commission charged with combating violations in the financial sector. The following year the commission released a report which is still continuing to produce considerable effect on the country’s financial sector.

Regulatory Compliance 

As a financial regulator, ASIC primarily concerns itself with monitoring & regulating financial companies, financial services providers, investors, and pension & insurance funds. It is also charged with overseeing & providing advice on operations involving cashless payments, loans, deposits & crowdsourcing. Let’s take a quick look at what ASIC exactly does:

  • Obtaining a financial license in Australia can only be done through ASIC.It controls providers of financial service to make sure that they do their work effectively, honestly and fairly.
  • Being authorized to regulate consumer lending, ASIC is involved in licencing & regulating organizations engaged in consumer crediting, which include banking institutions, credit unions, financial companies, mortgage & financial brokers.
  • As far as regulation of financial markets is concerned, ASIC evaluates effectiveness of operators’ compliance with their obligations.
  •  ASIC also oversees companies engaged in fundraising through issuing/selling financial products in the Commonwealth of Australia. The regulator also monitors & enforces compliance with disclosure-related requirements for entities involved in production & sale of financial products.


Being an independent statutory authority, APRA is responsible for overseeing banks, construction entities, lending institutions, insurers & reinsurers.

Obtaining an Australian Financial License

Individuals considering providing financial services in the Commonwealth of Australia must obtain an AFSL license or seek other legal ways of being exempted from obtaining a license.

As per Australian legislation, a financial product is defined as an instrument through which individuals can do investments, offset financial risks or make cashless payments. They can be:

  • securities
  • interest in MIS
  • derivatives

The definition of financial products & services provided by the country’s corporate legislation is very very broad. In particular, it involves investment-oriented & asset management activities, securities markets & crowdfunding-oriented services.


To be considered FSPs, legal entities or individuals must apply for membership with AFCA. Their activities fall within  the 1988 act that contains thirteen privacy-related principles requiring AFCA members to honor their obligations with regard to collecting, using, disclosing, storing & disposing of sensitive data.


Registering a financial company in Australia or receiving a financial license in Australia requires compliance with the country’s rigorous regulations. By providing legal advice on  regulations governing financial services in Australia, IQ Decision UK can help your your business get off to a good start.