Set up an FX (forex) company in Australia
There's quite a bit of work in setting up a foreign exchange business in Australia. We have helped dozens of FX companies do this, and we also provide them with ongoing commercial and compliance services. You need to think about creating or reviewing:
Of course, you also need to
apply for a licence to provide FX transfer or trading services to people or companies in Australia.
Because we have so much experience in this area, we have developed lots of templates to make the process as cost-effective, quick and efficient as possible.
Maintaining a forex company in Australia
Most of our FX clients have offices overseas. We keep the head office (wherever that is) and any local contacts, legally compliant by offering them a number of ongoing services:
- Ongoing legal services
- Ongoing regulatory updates
- Ongoing training
- Attentance at their compliance committee meetings (usually monthly or quarterly).
We also use skype and other technology to keep communication lines open.
Comments
Question: I want to start up an FX money transfer or FX trading business in Australia. Can I do it?
Yes – if you have enough experience providing FX services in a regulated environment. This means you need to have worked for a licensed FX provider in Australia or overseas, for a minimum of 3 in the last 5 years. See ASIC’s Regulatory Guide 105 for more details. There are also other requirements relating to your qualifications (but you can gain these in a matter of weeks).
No – if you or your business partners don’t have the required directly relevant experience in a regulated environment, you just can’t get an AFSL. However, you can try to get your company authorised by an existing licensee. This would make you and your company “authorised representatives” of the AFSL holder. That licensee will need an AFSL which authorises it to advise and deal and make a market in foreign exchange contracts (and perhaps other financial products, depending on your proposed activities). How do you find a licensee like this? Just type “Forex trading FSG” or “money transfer FSG” or similar into your search engine, and it will find a website that is operated by an Australian Financial Services licensee (this is because all AFSL holders who deal with retail clients have an FSG, usually available on their website). You can then look at their AFSL on the ASIC website. Then, it’s up to you to negotiate a commercial relationship with them. Most licensees charge a flat fee and a commission of some sort in exchange for appointing you as an authorised representative. Once you have your three years’ experience, you can then apply for your own licence. However, keep in mind that the licensee may require you to: use their platform; their FX rates; their compliance documentation; and be subject to audits, training and other supervision.
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