Financial services representatives will be able to provide financial services involving regulated emissions units following steps taken by ASIC to clarify the law.
ASIC announced the relief today under Class Order [CO 12/794] Emissions units: Relief for representatives, to apply from 1 July 2012 until 31 December 2012.
During this period, representatives may provide financial services in regulated emissions units providing they act for either:
- a person registered with ASIC to provide those financial services; or
- an Australian financial services (AFS) licensee holding a licence with an appropriate authorisation for regulated emissions units.
The class order addresses a technical concern in the law and provides certainty for representatives.
From 1 July 2012, certain types of emissions units will be financial products for the purposes of the Corporations Act 2001 (Corporations Act). The types of emissions units considered financial products are carbon units, Australian carbon credit units and eligible international emissions units. ASIC refers to these emissions units, which are also financial products, as ‘regulated emissions units’.
From July 2012, people may require an AFS licence from ASIC to carry on a financial services business in regulated emissions units, unless exempt.
ASIC has established an early registration system under the Corporations Regulations to assist carbon market participants to make the transition to the AFS licensing regime. Registration is an interim step before obtaining an AFS licence or a variation to an existing AFS licence. A registrant may provide financial services in relation to regulated emissions units through a financial services business without holding an AFS licence with appropriate authorisations for regulated emissions units from 1 July until 31 December 2012, providing they apply for a new AFS licence or licence variation by 31 October 2012.
28 June 2012