Released 6 June 2001. Comment closed 5 July 2001.

This policy proposal paper builds on the guidance provided in our policy proposal papers:

• Licensing: The scope of the licensing regime: Financial product advice and dealing (Advice and Dealing PPP) (April 2001); and
• Licensing: Organisational capacities (Organisational Capacities PPP) (April 2001).

This policy proposal paper should be read in conjunction with those papers. This paper will help you determine whether you need to be licensed as a principal or to hold an authorisation as a representative given by a licensed principal.

The proposals in this paper are based on the Financial Services Reform Bill 2001 (the Bill) introduced into Parliament on 5 April 2001. These proposals will be reviewed, and further guidance may be issued, to take into account:

• changes to the Bill in its passage to legislation;
• regulations made under the Bill; and
• the transitional provisions.

The policy proposals cover:

• What is the meaning of ‘principal’ and ‘representative’? (Section A)
• What obligations apply to principals and representatives? (Section B)
• What will be the status of our existing policy publications on the issues in this paper? (Section C)

The Schedule sets out some further examples showing how the licensing regime applies in relation to para-planners, superannuation trustees and superannuation fund administrators.

Download CP 24 (PDF 203 KB) | Read the media release