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Obtaining a Payment Institution license in Australia

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Obtaining an AFS license in Australia in 2020

Advantages of obtaining a payment system license in Australia:

  • One of the prestigious jurisdictions;
  • A developed economy and a stable banking structure;
  • A short list of documents needed for the application;
  • Application is submitted online.
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The Australian Corporations Act, 2001 obliges the companies that plan to provide financial services to obtain an Australian Financial Services License (AFS license). Without an AFS license, it is impossible to conduct business related to financial services.

The company may apply for obtaining a license only for the provision of payment services, or apply for several types of activities. Since, the rules of financial products and services provision are rather inaccurate, each case is considered individually, which in turn creates additional difficulties in obtaining a PI license in Australia. At the same time, all AFS licensees are required to conduct honest and fair activities, as well as comply with the terms of the AFS license and the Corporations Act, 2001.

The activities of licensees are controlled by the Australian Securities and Investments Commission (ASIC), respectively, the application for obtaining an AFSL is submitting to the ASIC.

Obtaining an AFS license in Australia

First of all, ASIC considers the applicant's competence and:

  • His ability to provide really high-quality financial services under the license;
  • Whether he has sufficient assets;
  • Whether he has the opportunity to create an adequate risk management system; and
  • Whether he can fulfill other obligations imposed by the AFS license.

To start the process of obtaining a PI license in Australia, the applicant company must fill out a FSO1 (application form), and collect basic documents confirming one or another quality of the applicant.

Before proceeding to the application preparation process, the company must clearly determine what services it will provide, as well as understand its responsibilities under AFSL, and establish the work of the relevant systems and processes.

Applying for AFS License to the ASIC

The company must collect the necessary package of documents required for the selected type of activity. The application along with documents is submitted via the Internet, and consists of 5 parts:

  1. Here you must enter information about yourself. Also, you will need to select a range of financial services which you plan to offer under the license.
  2. Here you will find answers regarding the liabilities of the licensee. Also, you will need to prove your ability to fulfill these liabilities.
  3. Here you will be able to consider detailed questions about the services described in Part 1.
  4. Here you will find declarations and certificates based on the responses in Parts 1 and 2.
  5. Here you can familiarize yourself with the package of documents that must be sent as a part of your application.

You can apply for online form by registering with the license system through the ASIC website.

A completed application for obtaining a payment institution license in Australia can be printed as a draft for further verification. At the stage of application formation, it would be advisable to enlist the support of experienced lawyers in order to make it qualitative initially. This will minimize the probability of requesting corrections from the Regulator, and will save a lot of time in the future.

A completed application for a payment system license in Australia is sent to the ASIC along with:
  • Scanned copies of supporting documents;
  • Proof of payment of registration fees.

It is worth noting that the procedure of obtaining an AFS license has no time limits. The time required to receive an AFSL in Australia depends on the quality and comprehensiveness of the initial application, which includes a description of the future business, and information about how quickly your company responds to ASIC requests for additional data.

Conditions for obtaining a license for electronic payment services

As we have already mentioned above, licensees are obliged to fulfill a number of liabilities in accordance with the Law on Corporations of 2001, namely, liabilities under section 912A and 912B. In order to clearly understand these obligations, the potential licensee must determine all the liabilities applicable to it and determine control measures for each of them.

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Documents required for obtaining a PI license

Along with the application, you must submit a package of documents, the specific list of which depends on the complexity of the financial services that you plan to offer.

At the same time, there are 4 documents that you will be required to provide with the application:

  1. Data and related documents about people holding senior positions in the company;
  2. Data and related documents on the competence of people holding senior positions;
  3. Description of the business;
  4. Financial reports.

Please note that this material is published for informational purposes only and should not be construed as an instruction, call to action or legal advice. Obtaining a PI license in Australia, that is, AFSL, is a complex process and requires utmost diligence.

If you are not sure whether the AFSL is required in your particular case and how to proceed correctly, you can discuss this issue with IQD Consulting experts, determining further actions during legal advice on providing financial services in Australia.

In addition, our specialists are ready to offer:
  • Legal support in compiling an application for an AFS license;
  • Legal assistance in preparing a business plan for a payment institution;
  • Assistance in opening a bank account in Australia, as well as another related services.

To request a personal advice, or to find out more information regarding the obtaining a AFS license for a payment institution in Australia, fill out the feedback form, or call us directly using the contacts specified below.

  • The information outlined in the article is actual at the time of its publication.
  • Please refer to our specialists for checking possible solutions for your business.
  • Still have any questions?

    Fill out the form or contact us as you find convenient. Our experts will help you resolve the issue.

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