ASIC has released its tenth policy proposal paper linked to the Financial Services Reform Act. Deputy Chair Jillian Segal said “Licensing: Financial Requirements” highlights administrative issues arising from the new Act, which is set to be introduced next March.

The release of this paper begins another round of public consultation, during which ASIC will meet with industry and consumer groups to discuss the proposals. Written submissions are due by Monday October 29.   

“It is important that everyone who has an interest in these issues uses this opportunity to provide ASIC with feedback,” Ms Segal said.

ASIC will use the issues discussed as a guide for the final policy paper on financial requirements under the legislation, which must be finalised before December 1.

Issues to be raised during the consultation period include financial requirements for licensees who have direct financial obligations to clients.  This will typically apply to dealers who enter into financial product transactions with or on behalf of clients.  ASIC will also focus on licensees who hold more than $100,000 of client money or assets.