Financial services representatives will be able to provide services in regulated emissions units under an ASIC class order.
Class order 12/794 Emissions units: Relief for representatives, dictates those providing financial services involving regulated emissions units can do so, providing they act for a person registered with ASIC to provide those financial services.
They may also do so if they are an Australian financial services licensee (AFSL) holding a licence with an appropriate authorisation for regulated emissions units.
The class order addresses a technical concern in the law, ASIC said in a statement.
It will apply from 1 July 2012 until 31 December 2012.
A variety of carbon units are currently traded in the Australian and overseas carbon markets but in Australia, they must be recognised as financial products, that is, regulated emission units
From 1 July, certain types of emissions units will be financial products for the purposes of the Corporations Act 2001 and includes carbon units, Australian carbon credit units and eligible international emissions units, ASIC said.
From next month, an AFSL from ASIC may be required to operate a financial services business in regulated emissions units, unless exempt.
ASIC has established an early registration system under the Corporations Regulations to assist carbon market participants to make the transition to the ASFL regime.
Registration is an interim step before obtaining an AFSL or variation to an existing licence.
