ASIC releases new policy proposals for carbon financial products
Ahead of the Federal Government's carbon pricing regime, the Australian Securities and Investments Commission (ASIC) has released a regulatory guide outlining new licensing requirements for businesses providing carbon financial products.
From 1 July, emission units recognised under the carbon tax will be financial products under the 'Corporations Act 2001' and ASIC will be responsible for regulating entities that provide such services or products, the regulator stated.
To assist individuals to meet their requirements, ASIC's regulatory guide 236 'Do I need a licence to participate in carbon market?' will provide details on:
- the regulatory body's role in relation to carbon markets and emissions units;
- which emissions units are financial products, and when you are likely to require an Australian financial services (AFS) licence; and
- the steps required to apply for an AFS licence and vary an existing licence.
ASIC will accept applications for new AFS licences or licence variations when regulations amending the Corporations Act are finalised, expected to occur by May 2012.
The commission has also issued consultation paper 175 'Carbon markets: Training and financial requirements'.
It is also undertaking industry consultation on applying the updated licensing arrangements to licensees engaged in the provision of financial services relating to emissions units.
Comments on the proposals will be accepted up until 10 April.
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