What is the difference between Australia's ASIC AR license and ASIC MM license?


An ASIC AR (Authorised Representative) typically refers to a representative authorized by a company or individual holding an ASIC MM (Market Maker) license.

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.

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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The Authorized Representative of the Australian Securities and Investments Commission (ASIC) derives their authority from the main license issued by ASIC, with their powers mirroring those of the main license.


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