MORE guidance is being given on the factors the Australian Securities and Investments Commission considers when assessing applications for relief from the licensing or disclosure provisions of the financial services reform regime.
The additional factors include:
• Financial products – whether a reasonable person would think the predominant purpose of the product is not financial in nature;
• Financial services – whether a reasonable person would think the predominant purpose of the products to which the service relates is not of a financial nature;
• Whether the service or product is subject to adequate alternative regulation;
• Whether the likelihood and extent of potential consumer detriment resulting from the proposed relief is minimal; and
• Whether the service or product is only provided to wholesale clients.
ASIC executive director of policy and markets regulation Mark Rodgers said the additional guidance was designed to help applicants provide the commission with all the information that would assist it to consider and decide on their applications faster.
"If applicants are aware of what we take into account when assessing an appplication, they can put their best case forward," he said.
ASIC has previously released two policy statements – PS167 Licensing: Discretionary powers and transition; and PS 169 Disclosure: Discretionary powers and transition.
Those statements have been amended to include the additional guidance.
Copies of the amended policy statements can be obtained at www.asic.gov.au or by phoning 1300 300 630.
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