Licensing and disclosure: Making the transition to the FSR regime

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LICENSING AND DISCLOSURE: MAKING THE TRANSITION TO THE FSR REGIME SECTION 1.3: LICENSING — WHAT ARE THE PROCESSES FOR MOVING TO THE NEW REGULATORY REGIME? (f) should apply for a qualified AFS licence. Insurance multiagents who can meet the competency requirements should instead apply for a standard AFS licence. How will we assess applications for qualified AFS licences? 1.3.36 Applicants for qualified AFS licences are not eligible for legislative streamlining under the transitional provisions. We will assess applications for qualified AFS licences under the ASIC licensing process: see paragraph 1.3.17 of this guide. What requirements apply to qualified licensees? 1.3.37 Under the transitional provisions, a qualified AFS licence can only authorise the qualified licensee to provide financial product advice and deal in relation to risk insurance products and investment life insurance products: see s1434(2)(e). ASIC cannot vary the qualified AFS licence to extend the authorised activities. Insurance multi-agents who wish to act as a principal and provide additional services will need to meet the competency standards and apply for a standard AFS licence. 1.3.38 When we grant a qualified AFS licence, we will impose standard AFS licence conditions on all qualified licensees or particular classes of qualified licensees: see Section C of our FSRB Policy Proposal Paper No 8 Licensing: Discretionary powers, and our forthcoming AFS Licensing Kit which will detail the standard AFS licence conditions we will impose. We may also impose special licence conditions that are tailored to individual licensees or groups of licensees when we grant a qualified AFS licence. Note: We aim to publish the AFS Licensing Kit in February 2002. 1.3.39 While qualified licensees hold their qualified AFS licence, they must comply with all the obligations that apply to other holders of AFS licences, except for the requirements in s912A(e) (licensee’s competency) and s912A(f) (training and competency of representatives). 1.3.40 Under the transitional provisions, qualified licensees and their representatives will be required to include a statement in their financial services guide that the licensee is not bound by the obligations in s912A(e) and (f), and that sets out what those obligations are: see s1434(3)(a)(ii). Australian Securities and Investments Commission — October 2001 Page 38
LICENSING AND DISCLOSURE: MAKING THE TRANSITION TO THE FSR REGIME SECTION 1.3: LICENSING — WHAT ARE THE PROCESSES FOR MOVING TO THE NEW REGULATORY REGIME? What must qualified licensees do by the end of the 2-year transitional period? 1.3.41 Qualified licensees will be required to demonstrate to ASIC that they have met the competency requirements that apply to other licensees by the end of the 2-year transitional period. We encourage qualified licensees to meet the competency standards as soon as possible. Those who have not taken significant steps, such as enrolling in courses, by 30 June 2002 are unlikely to meet the competency standards by the end of the 2-year transitional period. Note 1: Ordinarily, we will not extend the special period under the transitional provisions that qualified licensees are given to meet the competency standards: see our forthcoming FSR policy statement on Licensing: Discretionary powers and transition. We aim to publish this document before 1 December 2001. Note 2: See our forthcoming FSR policy statements Licensing: Training of financial product advisers and Licensing: Organisational capacities for further guidance on the requirements in s912A(e) and 912A(f), including the dates for compliance for persons other than qualified licensees. We aim to publish these documents before 1 December 2001. 1.3.42 Under the transitional provisions, qualified licensees who intend to continue carrying on business as a principal after the 2-year transitional period will be required to re-apply for a standard AFS licence before the end of the 2-year transitional period (ie before 11 March 2004). We are asking qualified licensees to lodge their completed applications with us by 3 months before the end of the 2-year transitional period (ie before by 11 December 2003). 1.3.43 If you delay lodging your complete application until less than 3 months before the end of the 2-year transitional period, we may not be able to process it before the end of the 2-year transitional period. We will give priority to applications that are received at least 3 months before the end of the 2-year transitional period. For entities that delay their applications, the risk that we will not be able to process your application before the end of the 2-year transitional period will increase the longer you take to lodge your complete application. 1.3.44 If you delay your application until less than 3 months before the end of the 2-year transitional period, and we do not process it before the end of the 2-year transitional period, you will be unlicensed from the end of the 2-year transitional period. As a Australian Securities and Investments Commission — October 2001 Page 39
Page 1 and 2: CONSULTATION PAPER 26 Licensing and
Page 3 and 4: Contents LICENSING AND DISCLOSURE:
Page 5 and 6: LICENSING AND DISCLOSURE: MAKING TH
Page 7 and 8: Product disclosure LICENSING AND DI
Page 9 and 10: Your comments LICENSING AND DISCLOS
Page 13 and 14: Our message: apply early LICENSING
Page 15 and 16: Example A LICENSING AND DISCLOSURE:
Page 21 and 22: New financial service providers REP
Page 37: LICENSING AND DISCLOSURE: MAKING TH
Page 63 and 64: Related papers LICENSING AND DISCLO
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