media release (12-240MR)

ASIC grants first licence authorisations for emissions units

Published

ASIC has started to grant authorisations to Australian businesses intending to provide financial services in emissions units.

Earlier this year, 173 individuals and companies registered with ASIC to provide financial services in emissions units and related derivatives. These registrants include 110 current AFS licensees seeking to vary their authorisations to include emissions units. Registrants come from a variety of sectors and backgrounds, including corporate advisory, energy, and carbon farming.

Registrants have until 31 October 2012 to either apply for an AFS licence or seek a licence variation. If an application isn’t lodged, registrants must stop offering these services. New entrants to the carbon markets can apply for an AFS licence or licence variation with an authorisation for emissions units at any time. ASIC must issue an AFS licence before services are provided. ASIC has developed a range of resources to assist applicants. These resources include Information Sheet 156 Regulated emissions units: Applying for or varying an AFS licence (INFO 156) and general guidance on how the financial services regime applies to emissions units and carbon markets (refer to Regulatory Guide 236 Do I need an AFS licence to participate in carbon markets? (RG 236)).

ASIC has also recently published some additional guidance regarding application requirements on its website. This material includes advice from ASIC on how to avoid some of the common problems seen in applications. For more details, visit ASIC’s carbon webpage at www.asic.gov.au/carbon.

Key dates

  • 31 October 2012 - If you are registered, you must apply for an AFS licence by 31 October 2012, or cease providing financial services after this date.

  • 31 December 2012 - The registration of every registered person is cancelled on 31 December 2012.

  • From 1 January 2013 - You must not provide financial services unless you hold an AFS licence.

Background

Since 1 July 2012, emissions units recognised under the carbon pricing mechanism are financial products under the Corporations Act 2001. Any individual or company providing financial services in emissions units and related derivatives requires an AFS licence or licence variation, unless exempt.