Key Points:
Whether someone trading, broking and advising in relation to
carbon credits needs an AFSL requires careful consideration of
their activities.
Many companies now trading, broking and advising in relation to
carbon credits in Australia are presently unregulated and
unlicensed. However, they may soon be regulated and required to
hold a financial services licence if they continue carrying on
those businesses. Regulations such as those relating to
"inside information" on carbon products will be
particularly problematic.
The Carbon Credits (Consequential Amendments)
Bill, which is currently before Parliament, amends the
Corporations Act 2001 (Cth) so as to designate Australian Carbon
Credit Units (ACCUs) created under the
Carbon Farming Initiative, and eligible international emission
units, as "financial products".
