Do I need an AFSL to raise capital?

(Our Avenir Capital founder at a party!!)

An Australian Financial Services License (AFSL) is required when providing advice or services related to certain financial products, such as securities, derivatives, and superannuation. This is a regulatory requirement set out by the Australian Securities and Investments Commission (ASIC).

There are severe penalties – we’re talking fines to imprisonment – for people who do not comply with the rules, and that can stretch to anyone associated with the fund raising.

Chapter 7 of the Corporations Act 2001 (Cth) requires an entity to hold an AFSL if the entity carries on a business involving the provision of a financial service and/or a financial product.

Financial services are defined in the Act as:

• Providing financial product advice (personal and/or general);

• Dealing in financial products (includes issuing and/or arranging);

• Making a market in financial products;

• Operate a registered scheme;

• Providing a custodial or depository service; or

• Provide a claims handling and settling service.

We understand that it can be a daunting task to obtain and maintain an AFSL. We've been there, got the t-shirt etc... and this is one of the reasons why we set our AFSL for hire service up in the first place as we have experienced first hand the amount of time and grey hairs it takes to set yourself up in the Australian Financial Services industry.

So remember, we are here to help you make sure your business is operating within the laws and regulations set by ASIC and depending on the nature of your business, we can provide you with access to the Avenir Capital AFSL license. This is a broad-ranging wholesale Australian Financial Services Licence (AFSL 405469) and we offer that as an AFSL for hire service.

Have any questions around AFSL licenses, Australian Financial Services License for Hire services or would like to discuss your compliance needs further?

Contact one of our team, Anya, directly on 0438 355 002 or ahaywood@avenircapital.com.au or complete our short form here.