Financial services licensing for emissions units

From 1 July 2012, various types of emissions units will be financial products under the Corporations Act. Financial services in these products will be regulated by the Australian Securities and Investments Commission (ASIC).

If you’re considering providing financial product advice or other financial services in emissions units, you’ll require an Australian financial services (AFS) licence, unless you are exempt.

ASIC is currently accepting applications for registrations from those who intend to advise, deal, make a market or provide a custodial or depository service in relation to emissions units. For those who already hold an AFS licence, a variation may be required.

Registration is an interim step before obtaining an AFS licence or a variation to an existing AFS licence and will allow you to provide financial services in emissions units from 1 July. From 1 January 2013, it will be an offence to provide financial services in emissions units without a licence, unless an exemption applies.

Registrations can be lodged with ASIC until 30 June 2012. Visit ASIC’s website to download the registration form. A $35 registration fee will apply. Further details on the registration and licensing process can also be found on ASIC’s website, as well as more details on how the financial services regulation applies to emissions units.