AUSTRALIA Law and Practice Contributed by: Michael Lawson, Nicole Brown, Lizzie White and Tamaryn Leach, MinterEllison
on an alternative exemption, depending on the scope of the services and the category of clients to whom those services are provided. Where a non-local manager manages an Aus - tralian retail fund, particular consideration will need to be given as to whom the services are provided. If the non-local manager provides financial services directly to retail clients in Australia, it would likely be required to obtain an AFSL or be appointed as an authorised representative to cover the provisions of these services to retail clients. For more information on the key licensing options/exemptions that may be available, please see 3.3.2 Requirements for Non-local Service Providers . 3.3.4 Regulatory Approval Process Applying for Registration As discussed in 3.3.1 Regulatory Regime , the regulatory approval process for an Australian retail fund is relatively straightforward. Once the requisite documentation (ie, the fund constitu - tion and compliance plan) have been prepared, these are lodged with ASIC for its consideration. In the case of a registered managed investment scheme, ASIC has a statutory 14-day period to consider the application and register the fund or reject the application. During the 14-day regis - tration period, ASIC will generally respond with queries and comments in relation to the consti - tution and compliance plan. Applying for an AFSL As discussed in 3.3.2 Requirements for Non- local Service Providers , separate from register - ing the fund with ASIC, and depending on the structure and scope of services to be provided in
relation to the fund, an AFSL may be required for the investment manager and will be required for the responsible entity or corporate director. The process of applying for an AFSL can be relatively lengthy and involves preparing a number of doc - uments to be submitted to ASIC. Preparing an application, lodging it with ASIC, and obtaining the AFSL can take six to eight months or more. 3.3.5 Rules Concerning Pre-Marketing of Retail Funds In Australia, pre-marketing of retail funds, as with marketing of retail funds, will likely involve the provision of financial services in Australia, for which an AFSL will be required, subject to applicable exemptions. Please refer to 3.3.2 Requirements for Non- local Service Providers , 3.3.3 Local Regulatory Requirements for Non-local Managers , 3.3.6 Rules Concerning Marketing of Retail Funds and 3.3.7 Marketing of Retail Funds . 3.3.6 Rules Concerning Marketing of Retail Funds Similar to as discussed in 3.3.2 Requirements for Non-local Service Providers and 3.3.3 Local Regulatory Requirements for Non-local Managers , an entity (whether local or offshore) that is involved in or engages in the marketing of an Australian retail fund to Australian clients (whether retail clients or wholesale clients) will need to consider its Australian licensing options, because the activity of marketing the fund will likely involve the provision of financial services (in particular, financial product advice, as well as potentially dealing or arranging for dealing in financial products). 3.3.7 Marketing of Retail Funds The Corporations Act places no restrictions on the types of investors to whom an Australian
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