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An AFSL is a legal requirement for virtually every person that raises money

An Australian Financial Services License (AFSL) is a legal requirement for virtually every person that raises money. But considering its longevity and integral role it plays in the industry, it’s surprising how much confusion and uncertainty surrounds an AFSL. We explain more in this article. UNDERSTANDING THE ROLE OF AFSLs AND WHEN THEY’RE REQUIRED An […]

Knowledge

Am I carrying on a “financial services business”?

The key to an AFSL requirement centres on the words: ‘Carrying on a financial services business’.

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Knowledge

11th December 2024

Court issues $1.25 million penalty to unlicensed property scheme promoter

We recently wrote about ASIC’s enforcement priorities for 2025, noting that one of those priorities is a focus on “unscrupulous” property investment schemes. We have also previously highlighted the perils...

Knowledge

27th November 2024

Landholder duty – be aware of the rules

When structuring a property investment fund and the purchase of assets for it, stamp duty is always a key consideration. The stamp duty rules in the different States and Territories...

Knowledge

20th November 2024

ASIC focuses on property investment schemes and continues emphasis on pursuing action in the Courts

Towards the end of each year, ASIC publishes its enforcement priorities for the next year, giving a useful insight into where the regulator intends to focus its attention and resources....

Knowledge

23rd October 2024

Being “knowingly concerned” – Could you or your client be at risk?

There are a number of different potential consequences under the Corporations Act (and other legislation) if someone breaches the financial services laws and regulations. But how wide can the regulatory...

Knowledge

15th August 2024

Beware “double duty” risks – investors coming into a property fund might be aggregated

A recent Victoria Court of Appeal decision highlights the potential stamp duty risks associated with bringing investors into a vehicle (whether a trust or company) which already owns, or has...

Knowledge

17th July 2024

Criminal conviction for promoting an investment without an AFSL demonstrates what can happen when you ignore the law

We have previously explained why an AFSL is a legal requirement for virtually everyone who raises money in Australia. The criminal conviction of John Bigatton, a former BitConnect crypto platform...

Knowledge

24th April 2024

The obligations of an AFS Licensee and Trustee

CORPORATIONS ACT OBLIGATIONS AND COMPLIANCE OBLIGATIONS TO ASIC As AFS licensees, we are required to meet strict financial guidelines as set out in the Corporations Act 2001. Under the conditions...

Knowledge

24th April 2024

Transaction steps and documents

The transaction steps and documents required for your fund will depend on many factors. Typically, we can have the fund establishment documents and draft Information Memorandum with you in a...

Knowledge

24th April 2024

Taxation implications

A fund that is a unit trust is generally treated as a flow through vehicle for taxation purposes unless it is characterised as a ‘public trading trust’. To be a...

Knowledge

24th April 2024

Jurisdictional Issues

The right to offer an investment in a fund may be restricted in certain countries. No recipient of the PDS or the IM, in any country other than Australia, may...

Knowledge

24th April 2024

Do I need a Product Disclosure Statement or an Information Memorandum?

1. A Product Disclosure Statement (PDS) is a document required under the Corporations Act 2001 to be issued to prospective investors, which must contain sufficient information so that a retail...

Knowledge

24th April 2024

What’s the difference between a registered and unregistered fund?

1. Generally, it is easier and cheaper to structure and promote a fund as an unregistered fund compared to a registered fund. A registered fund is a far more onerous...

Knowledge

24th April 2024

Fund, syndicate, unit trust … or a company?

There are several key issues that make it undesirable to use a company structure to raise private capital. Each stems from the way companies are regulated through the Corporations Act...

Knowledge

24th April 2024

What is a “fund”?

The terms “fund,” “syndicate,” “club investment” and various other terms all refer to the same concept defined under the Corporations Act 2001 as a “managed investment scheme.” These schemes are...

Knowledge

24th April 2024

Am I carrying on a “financial services business”?

The key to an AFSL requirement centers on the words: ‘Carrying on a financial services business’. If you are in the business of providing financial services (such as the raising...