ASIC satisfies most requests for FSR relief

Claiming to have no knowledge of the existence of Financial Services Reform (FSR), applying for a financial services license just days before the new regime was due to kick in and claiming to be a charitable organisation, are all excuses that have been turned down by the corporate watchdog as reasons for not complying with FSR.

The requests for leniency, form part of a series of examples contained in an Australian Securities and Investments Commission (ASIC) quarterly overview of decisions on relief applications from FSR.

For the period between August 15 and December 31, 2004, ASIC received 915 applications for relief from FSR requirements, especially those related to licensing, disclosure and managed investments. Relief was granted in relation to 791 or 86 per cent of 915 applications, while the other 124 were turned down.

Some of the numerous examples of licensing situations were relief was granted included the exemption of a French investment bank that provided a range of financial services to Australian wholesale clients on the basis that the applicable foreign regulatory regimes were similar to the Australian regime, and the suspension of action against a company who’s own external auditors detected a licensing breach in a compliance audit.

Relief form providing a Product Disclosure Statement was granted to several joint issuers of non-cash payment facilities and to companies who sold Australian financial products to overseas residents.

ASIC director of regulation John Price said similar reports would be published every quarter to help financial services providers figure out what factors ASIC will take into account before granting relief from FSR.