Licensing and disclosure: Making the transition to the FSR regime

LICENSING AND DISCLOSURE: MAKING THE TRANSITION TO THE FSR REGIME
Our approach to the transitional
provisions
6 The transitional provisions establish arrangements for existing industry
participants to make the transition to the new regulatory regime under the
Corporations Act as amended by the FSR Act. On 8 October 2001 by
proclamation, 11 March 2002 was fixed as the day on which Schedule 1
of the FSR Act will commence (FSR commencement). This Schedule
contains the licensing and product disclosure provisions under
Parts 7.6–7.9.
Licensing and product disclosure
Licensing
What we expect of you — planning and preparing for
transition
7 We consider that the onus is on industry participants to start preparing
early and to complete the transition to the new regulatory regime within
the statutory timeframe.
8 As an industry participant, you will need to plan your transition from
your old regulatory regime(s) to the new regulatory regime carefully, to
ensure that:
(a) you understand which regime applies to the different aspects of
your conduct at different times;
(b) your representatives and other relevant persons understand
which regime applies to the different aspects of their conduct at
different times; and
(c) you, your representatives and other relevant persons comply
with those different regimes.
Applying for an AFS licence under the new regulatory regime
9 Under the transitional provisions, current financial service providers
will have up to 2 years from FSR commencement (up to 11 March 2004)
to obtain an Australian financial services (AFS) licence. However, as a
practical matter you will need to apply in sufficient time to allow us to
process your application and decide whether or not to grant you an AFS
licence within the 2-year transitional period.
Australian Securities and Investments Commission — October 2001
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