Licensing and disclosure: Making the transition to the FSR regime

LICENSING AND DISCLOSURE: MAKING THE TRANSITION TO THE FSR REGIME
SECTION 1: LICENSING
1.1 What is the transition period?
PRINCIPALS
1.1.1 In general, the transition period for a financial service provider
in relation to activities it carries out before 11 March 2002
(existing activities) begins on 11 March 2002 and ends:
(a) when the entity obtains an AFS licence covering those
activities;
(b) when the entity starts to be covered by an exemption from
licensing under s911A(2); or
(c) 11 March 2004;
whichever occurs first (its transition period): see s1431.
Note 1: An entity’s transition period will also end if it ceases to have the status
that entitled it to a transition period: see s1431. For example, if ASIC cancels a
securities licence under the relevant old legislation on or after 11 March 2002,
the transition period of the entity that held that licence will end.
Note 2: An entity may have more than one transition period if it moves to the
new licensing regime at different times in relation to different activities.
Current financial service providers and existing activities
1.1.2 “Current financial service providers” are entities that under the
transitional provisions:
(a) are providing financial services before 11 March 2002;
(b) that will require an AFS licence under the FSR Act
authorising those services.
These include:
(a) holders of a securities dealers licence;
(b) holders of an investment advisers licence;
(c) holders of a futures brokers licence;
(d) holders of a futures advisers licence;
(e) bodies regulated by the Australian Prudential Regulation
Authority (APRA), including some trustees of
superannuation entities;
Australian Securities and Investments Commission — October 2001
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