ASIC have recently stated in two new fact sheets for Carbon Farming Initiative that a “forward sale of ACCUs for settlement in the future is classed as a derivative”. Unless you are covered by an exemption, you must hold an AFS licence or be an authorised representative of an AFSL holder with appropriate authorisations before providing financial services (advice, deal, make a market etc) for carbon products and derivatives before providing any financial services in relation to the forward sale of any of the ASIC regulated carbon products.
New AFS Licence applicants
If you are a new AFS licence applicant that registered with ASIC prior to 1 July 2012, lodged your full application before 31 October 2012 and have not yet received your AFS licence, you must not provide financial services in derivatives (including forward sales) until you have been granted your AFS Licence. You can continue providing the financial services that you registered for until 31 December 2012. Unless you are covered by an exemption, you cannot provide any additional financial services or financial products or client type in the interim. From 1 January 2013, all interim relief expires.
If you did not register or if you missed the 31 October deadline to submit your full AFS Licence application, then you currently have no transition relief. This means you must first obtain an AFS Licence or become an authorised representative of an appropriately licensed ASF licence holder before providing financial services.
If you did not lodge your application under the same entity name you registered in, you do not have the benefit of transition and must wait until your AFS Licence is granted before providing financial services.
All new AFS Licence applicants should check their websites and advertising to ensure that they are not inadvertently providing any unlicensed financial services.
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