Emissions Units To Be Financial Products

When Chapter 7 of the Corporations Act, 2001 (Cth) (Corporations Act) was first introduced, the government announced that the reforms were intended to have flexibility to evolve with the development of financial products and financial services. In less than a decade the flexibility of the financial services laws has been well tested.

Over the next months the FSR regime will be extended to margin lending, rating agencies and research houses. But the release of the Rudd government's draft Carbon Pollution Reduction Scheme demonstrates just how diverse the area of financial products is and will continue to be.

The proposed Carbon Pollution Reduction Scheme Act 2009 will amend the Corporations Act by adding S764A(1)(k) to make Australian emission units and eligible international emission units financial products. By making emission units financial products, the reforms will extend the financial services laws to activities such as advice and dealing in emission units as