AFSL Obligations: Carbon Emissions UnitsUnderstanding the licensing requirements |
ASIC has released Regulatory Guide 236 to provide guidance to businesses to comply with their legal obligations in anticipation of the introduction of Australia’s carbon pricing mechanism later this year.
From 1 July 2012, emissions units recognised under the carbon pricing mechanism will be financial products under the Corporations Act. Any entity who buy or sells carbon permits and provide financial services in relation to emissions units will therefore require an Australian Financial Services Licence (AFSL) to carry on a financial services business, unless an exemption applies. For those entities that already hold an AFSL, a variation may be required and consideration made as to where the AFSL is held in the corporate structure.
ASIC will accept applications for new AFSL licences or licence variations relating to emissions units during 1 May 2012 to 30 June 2012. From 1 January 2013, it will be an offence to provide financial services in emissions units without a licence, unless an exemption applies.
This report outlines key considerations for businesses including assessing whether their conduct falls within an exemption category and requirements for AFSL applications. Please click the “download” button at the top of this page to download the report.
AFSL Obligations: Carbon Emissions Units
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