Licensing and disclosure: Making the transition to the FSR regime

LICENSING AND DISCLOSURE: MAKING THE TRANSITION TO THE FSR REGIME
SECTION 1: LICENSING
1.4 What law applies after the transition
period?
1.4.1 In general, the new licensing regime and all its requirements will
apply to financial service providers, and their representatives,
after the financial service provider’s transition period. In
particular, all licensees will be subject to the same obligations
under Part 7.6 of the FSR Act, irrespective of the process by
which they obtained an AFS licence.
Note 1: In accordance with the proclamation under s1442A, s992A (hawking)
will apply to all persons from FSR commencement on 11 March 2002: see
s1442A of the transitional provisions.
Note 2: For special arrangements during the 2-year transitional period, see
paragraph 1.4.7 below.
1.4.2 As a result, in general, by the end of the 2-year transitional
period, the new licensing regime will apply to all financial
service providers and their representatives.
Note: There is an important exception to this rule. If a person advises on or
deals in prescribed interests which immediately, before FSR commencement,
are subject to the licensing provisions of the Corporations Law as in force
before 1 July 1998 as they apply under the Corporations Act, they will remain
subject to that law and will not be subject to the requirement to hold an AFS
licence: see paragraph 1.2.9 of this guide.
1.4.3 At the end of a financial service provider’s transition period,
any:
(a) licence it held under the old Corporations Act; or
(b) registration of the entity as a broker or registered foreign
insurance agent under the IABA;
ceases to have effect: see s1432. The licensee should no longer
display its previous licence or certificate of registration from
that time.
1.4.4 Proper authorities given under licences under the old
Corporations Act will cease to have effect from the time the
licence under the old Corporations Act ceases to have effect: see
s1432.
Example
An entity holds a securities dealers licence under the old Corporations Act.
Australian Securities and Investments Commission — October 2001
Page 41