Licensing and disclosure: Making the transition to the FSR regime

Example A
LICENSING AND DISCLOSURE: MAKING THE TRANSITION TO THE FSR REGIME
SECTION 2.1: PRODUCT DISCLOSURE — WHAT IS THE TRANSITION PERIOD?
Before 11 March 2002, A is a life insurer who issues life risk insurance
products. After that date, A wishes to issue a new offer document which refers
to those life risk insurance products which it has offered to issue before 11
March 2002. The transition period for those products will begin on 11 March
2002 and end when A opts in to the new regulatory regime, or after 2 years,
whichever occurs first. During the transition period for those products, A may
issue an offer document under its old product disclosure regime. If A wishes to
issue the offer document for a product under the new regulatory regime, it can
opt into the new regulatory regime in relation to that product: see Section 2.3
of this guide.
After 11 March 2002, A wishes to offer superannuation interests for the first
time. There is no transition period for those products, so Part 7.9 will apply in
respect of those products and A must prepare a product disclosure statement
(PDS) under the new regulatory regime.
Example B
Product issuer A issues financial products before 11 March 2002. A is part of a
group of companies that re-structures its operations, so that after 11 March
2002, B, a related entity that came into existence after FSR commencement,
carries on A’s former business of issuing life insurance investment products.
Under the transitional provisions, B will have no transition period, as it will be
offering to issue life insurance investment products for the first time on or after
11 March 2002: see s1438(1).
Some Part 7.9 obligations apply from FSR commencement
on 11 March 2002
2.1.5 However, some obligations under Part 7.9 of the FSR Act will
apply to all financial products, whether new or existing, from 11
March 2002: see s1438(2) of the transitional provisions.
These are:
(a) s1017C (information for existing holders of superannuation
products and RSA products);
(b) s1017DA (regulations made under that section may specify
additional obligations on trustees of superannuation entities
to provide information);
(c) s1017E (dealing with money received for financial
products before the product is issued);
(d) s1017F (confirming transactions);
Australian Securities and Investments Commission — October 2001
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