ASIC has today released details regarding the registration and licensing process for those intending to provide financial services in emissions units under the Federal Government’s carbon pricing mechanism.
ASIC Commissioner John Price said registration will help providers of financial services meet their licensing requirements under the Corporations Act 2001 (Corporations Act).
‘From July 1, emissions units recognised under Australia’s carbon pricing mechanism will be financial products. Our priority is to help market participants understand and meet their obligations when providing financial services relating to those products.’
Registrations for those involved in either advising, dealing, making a market or providing a custodial or depository service in relation to emissions units can be lodged with ASIC from 1 May until 30 June 2012.
‘The aim of the registration process is to enable people intending to either apply for an AFS licence or vary an existing licence to offer financial services in emissions units from July 1’, Mr Price said.
‘By registering, people can offer financial services in emissions units until 31 December 2012 – provided they have applied for an AFS licence by 31 October 2012.
‘From 1 January 2013, it will be an offence to provide financial services in emissions units without a licence, unless exempt.’
Commissioner Price said ASIC has developed a regulatory guide, Do I need a licence to participate in carbon markets? (RG 236)(Refer ASIC Advisory 12-45AD) to help people determine whether they require an AFS licence to provide financial product advice and other financial services in emissions units.
ASIC’s registration form, Application to register to provide financial services in emissions units, is now available for downloading via the ASIC website. A $35 registration fee will apply. Further details on the registering and licensing process can be found on ASIC’s website.
ASIC will continue to work closely with industry to assist with the transition in the coming months.
Support tools
- Regulatory Guide 236 Do I need a licence to participate in carbon credits? (RG 236) -this will be updated shortly to take into account regulations made since the guide was released on 9 March 2012.
- A dedicated carbon webpage on the ASIC website with further details regarding the registration and licensing process.
- A call centre for applicants to talk to trained staff: 1300 300 630.
Background
Due to commence on 1 July 2012, the carbon pricing mechanism will require certain entities to incur a charge for their carbon emissions, unless they acquire and surrender the number of emissions units that represents their total annual emissions. The related Carbon Farming Initiative will allow individuals to generate emissions units through domestic emissions offset projects that reduce or sequester carbon emissions.
The Clean Energy Legislative Package includes the Clean Energy Act 2011 which is the main piece of legislation establishing the carbon pricing mechanism and the Carbon Credits (Carbon Farming Initiative) Act 2011, which covers the Carbon Farming Initiative. More information about the Clean Energy Legislative Package is available at www.climatechange.gov.au. You can also find more information about the role of the new Clean Energy Regulator, which is responsible for administering the carbon pricing mechanism and related schemes at www.cleanenergyregulator.gov.au.