ASIC releases next round of policy papers
TheAustralian Securities and Investments Commission(ASIC) released on Friday the next addition to its policy proposal papers (PPP) on licensing and administrative issues of the draft Financial Services Reform Bill (FSRB).
This 10th PPP on licensing financial requirements lists proposed requirements that will apply to Australian financial service licensees, depending on the functions carried out by the licensees.
However ASIC has emphasised that these licensing conditions do not apply to those in the industry who have received a license from theAustralian Prudential Regulatory Authority(APRA). Licenses issued by APRA will remain in force and be administered by that regulator.
The industry and wider public has five weeks to put feedback and written submissions together, while ASIC will meet with industry and consumer representatives to discuss the proposals. The deadline for written submissions is October 29, 2001.
ASIC says that during the five week period it intends consulting separately on a number of other issues including additional financial requirements for licensees who have direct financial obligations with clients.
These requirements would most likely concern licensees who enter into financial product transactions with clients instead of acting on behalf of clients.
The other area ASIC will separately consult on will be the financial requirements necessary for licensees who hold more than $100,000 of client money or assets.
ASIC deputy chair Jillian Segal says once again comments from the industry are important in order to reach the next step.
“ASIC will consider the responses it receives to the issues and questions raised in this paper before we issue our policy on financial requirements under the legislation which will be before December 1, 2001,” she says.
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