What is AFSL? AFSL Review, Features

AFSL stands for Australian Financial Services Licensee, which is usually a 6-digit number. Only companies engaged in financial services have AFSL. The Australian regulatory number commonly referred to in the industry is the AFSL license number. All financial companies regulated by the Australian ASIC must have an Australian financial business license.

About AFSL

AFSL = Australian Financial Services Licence, also known as AFS Licence, is a 6-digit number. Formal platforms must have the AFSL number. Only with this number can they be qualified to engage in financial derivatives. Companies with only a single ABN (Australian Business Registration Number) or ACN (Australian Company Number) are not qualified to engage in financial derivatives. Those with an AFSL number will have the corresponding ABN and ACN codes; but those who only have ABN and ACN codes do not necessarily have an AFSL number. All financial product service providers regulated by ASIC must obtain this license to be eligible to engage in financial derivatives, and vice versa.

ASIC Introduction: The Australian Securities and Investment Commission (ASIC) is the statutory regulator of financial services and markets in Australia. The agency independently exercises regulatory functions on companies, investment behaviors, financial products and services in accordance with the law. It is the regulator of the Australian foreign exchange retail industry. It establishes and manages the ASIC Act and implements most of the work of the Act regulations to ensure the fairness and transparency of Australia's financial market. As the manager of the Australian government's financial market, ASIC effectively performs its legal duties on authorized financial promissory note transactions and evaluates the operation of a fair, orderly and transparent market. At the same time, it approves and regulates the financial services industry to enable it to operate effectively, honestly and fairly.

Traders with AFSL financial license

1. Provide financial product advice;

2. Trading financial products;

3. Make markets for financial products;

4. Operate a registered financial business;

5. Provide custody or deposit services.

All companies involved in the above five businesses must apply for and obtain ASIC's license AFSL. Therefore, as a trader, it is far from enough to just register the company's ABN and ACN with ASIC. You must also obtain an AFSL license. You can check the trader's license information and operating rights in detail on the ASIC website.

Requirements for applying for AFSL license

1. Register an Australian company with a minimum registered capital of AUD 500,000 (Note: AUD 500,000 must be actually received);

2. The company needs to have professionals (i.e. professionals who have been engaged in the financial services industry for many years);

3. A local office is required, and local government departments will conduct on-site inspections from time to time.