Forex broker license in Australia
The financial services market in Australia is rather wide and it attracts investors across the world. Forex activity is considered here as an OTC contract, so it requires a special license.
There is only one lar that regulates the process of licensing and financial market rules – the Corporations Act 2001. It covers all areas on the forex market. The specific authority was form even earlier. It is call ASIC and it has existed since 1991.
There is nothing special about the demands of the Australian government to license applicants. They are generally similar to the procedure in other countries. The company owner has to:
- confirm the solvency of the company (f.e. by the bank receipt);
- provide information about all shareholders and their previous experience. At least 1 person has to have experience in the Australian market;
- set the minimum capital;
- show the development strategy or a business plan;
- hire at least 2 managers and 1 resident;
- rent or buy an office in Australia.
You should pay about 35 000 USD for the license. The annual fee is from 1 086 USD.
The whole procedure can take from 6 to 12 months from the date of application submission.
The law does not include provisions with an exact term. Therefore, it depends on the completeness and clarity of your documents.
After receiving the license, you will have a month to hire an auditor. You need a person inside the company to check your financial operations and their compliance in accordance with the law. You should transfer information about the auditor to the ASIC.
If you have a small company (assets up to 5 mln. USD), you can contact an independent auditor, but this should be done regularly.
ASIC may revoke the license under certain circumstances. For example, in case you break the law or the information you have submitted to ASIC is false.
The other important reasons are:
- providing services to the residents of the USA;
- a break in provision of services for 6 months.
Please, contact our team in case you have any questions or you need a piece of detailed information on license conditions and benefits.
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