Australian ASIC AR (Authorised Representative):
Definition: An ASIC AR is an authorised representative issued by a company holding an ASIC MM, allowing individuals or companies to offer financial services on behalf of a company holding an Australian Financial Services License (AFSL).
Financial Services: AR holders can provide a variety of financial services on behalf of AFSL holders, including investment advice, securities trading, and fund management, among others.
Regulatory Requirements: ARs must operate under the supervision of an AFSL holder and comply with ASIC regulations to ensure their financial services are compliant.
ASIC MM (Market Maker):
Definition: The ASIC MM is a market maker license, allowing the holder to act as a market maker in the Australian financial markets.
Market Makers: MM holders provide liquidity between buyers and sellers in the market, enabling market participants to trade.
Regulatory Requirements: Companies holding the MM license must comply with ASIC regulations regarding market making activities, including trading reporting and liquidity provision.
Requirements for Applying for an Australian MM License:
Ample Capital and Resources: As a market maker, you must have sufficient capital and resources to support your market making activities.
Technology and Systems: You must possess advanced technology and trading systems to ensure effective market liquidity provision.
Compliance Requirements: You must adhere to ASIC regulations concerning market maker activities, including trading reporting, risk management, and liquidity provision.
Regulatory Review: Your application will undergo a review by ASIC to ensure you meet the market maker license requirements.
Background Check: You may need to undergo a background check to ensure you don’t have any adverse records or history of violating financial regulations.
Contracts or Trading Agreements: You must sign appropriate contracts or trading agreements with exchanges or market operators to obtain market maker permissions.
Requirements for Applying for an Australian ASIC AR License:
Finding an AFSL Holder: First, you need to find a company or individual holding an ASIC Financial Services License (AFSL), as AR is a representative of an AFSL holder.
Negotiating an Agency Agreement: Reach an agency agreement with the AFSL holder, specifying your role and responsibilities as an AR, along with your compliance requirements.
Compliance Training and Certification: You may need to undergo compliance training and certification to ensure you understand and comply with ASIC regulatory requirements, including financial services regulations.
Background Check: You may need to undergo a background check to ensure you don’t have any adverse records or history of violating financial regulations.
Submitting the Application: Submit the AR license application along with the necessary documents and information together with the AFSL holder.
Compliance Requirements: Once you obtain the AR license, you need to comply with ASIC’s compliance requirements, including regulatory reporting, record-keeping, and customer protection.
