David Samborsky
31st January 2004, 02:50 AM
The new ASIC rules regarding obtaining a securities license for anyone in Australia who provides financial services or products may have a serious impact on the availability our products and this website from the perspective of any local Australian residents. The following document repeated below was obtained from the ASIC website at www.asic.gov.au. Of course this won't have any effect on any overseas parties who are not governed by ASIC's laws.
I can see where they (ASIC) are coming from. To many people in Australia were being fleeced by overseas boiler rooms and so ASIC has decided to finally do something about it.
I'm just wondering whether or not a trading simulator such as TradeSim could be construed as generating buy and sell signals (in essence financial advice) as these are currently being generated by a third party package. By definition a trading simulator or backtester works on historical data so it can never give a buy or sell signal on the day but rather retrospectively. This could be a grey area that may require a lot of legal scrutiny.
What do people think?
04-013 ASIC warns 'no licence, no business'
Tuesday 20 January 2004
The Australian Securities and Investments Commission (ASIC) today provided an update on the progress of Australian financial services (AFS) licence applications under the Financial Services Reform Act (FSRA).
'ASIC now expects a substantial reduction in the final number of applicants, as a result of structural changes within the industry', ASIC Executive Director of Financial Services Regulation, Mr Ian Johnston said.
'To date, ASIC has issued over 2500 licences, with more than 1000 applications currently being assessed. We expect that the vast majority of these will receive their licence by the 10 March 2004 deadline', Mr Johnston said.
'ASIC is still expecting up to 900 applications from existing licensees and insurance brokers', he said.
ASIC is now individually contacting each one of these potential applicants, as their registration and/or licence will lapse on 11 March 2004. The FSRA prohibits financial services businesses from operating without an AFS licence from 11 March 2004. The assessment process for these applicants is relatively simple, and ASIC anticipates applications lodged before the end of January 2004 will be assessed before the 10 March 2004 deadline.
Prospective licensees who are expecting to lodge a full (i.e. non-streamlined) application for a new AFS licence, must contact ASIC urgently if they intend to continue in business after 10 March 2004. The contact at ASIC is Ms Pauline Vamos, ASIC Director of Licensing and Business Operations.
'During the two-year transition period of the FSRA, ASIC has consistently warned financial services businesses to lodge their licence applications as early as possible. We have provided extensive guidance to help industry make the transition to the new licensing regime', Mr Johnston said.
It is an offence to carry on a financial services business without a licence, punishable by a fine of $22,000 or imprisonment for two years, or both. The conduct of an unlicensed financial services business may also expose offenders to other court actions.
After 10 March 2004, ASIC will conduct surveillances targeting businesses that are illegally operating without a licence or otherwise not complying with financial services laws.
This emphasis on compliance is intended to protect the interests of consumers and uphold the integrity of the industry. ASIC will treat very seriously any individual or company that continues to operate whilst unlicensed, or fails to meet the responsibilities and obligations imposed by the reforms to the Corporations Act.
'ASIC's primary concern is to ensure that any company or individual that wishes to operate a financial services business, or provide advice in relation to a financial product, holds an AFS licence after 10 March 2004', Mr Johnston said.
'The Government has confirmed that it will not extend the transition period beyond 10 March 2004. If a business misses that deadline, they will need to have alternative arrangements in place to continue operating', he said.
For further information contact:
Ms Pauline Vamos
Director FSR - Licensing and Business Operations
Telephone: 02 9911 2178
Mobile: 0411 549 287
I can see where they (ASIC) are coming from. To many people in Australia were being fleeced by overseas boiler rooms and so ASIC has decided to finally do something about it.
I'm just wondering whether or not a trading simulator such as TradeSim could be construed as generating buy and sell signals (in essence financial advice) as these are currently being generated by a third party package. By definition a trading simulator or backtester works on historical data so it can never give a buy or sell signal on the day but rather retrospectively. This could be a grey area that may require a lot of legal scrutiny.
What do people think?
04-013 ASIC warns 'no licence, no business'
Tuesday 20 January 2004
The Australian Securities and Investments Commission (ASIC) today provided an update on the progress of Australian financial services (AFS) licence applications under the Financial Services Reform Act (FSRA).
'ASIC now expects a substantial reduction in the final number of applicants, as a result of structural changes within the industry', ASIC Executive Director of Financial Services Regulation, Mr Ian Johnston said.
'To date, ASIC has issued over 2500 licences, with more than 1000 applications currently being assessed. We expect that the vast majority of these will receive their licence by the 10 March 2004 deadline', Mr Johnston said.
'ASIC is still expecting up to 900 applications from existing licensees and insurance brokers', he said.
ASIC is now individually contacting each one of these potential applicants, as their registration and/or licence will lapse on 11 March 2004. The FSRA prohibits financial services businesses from operating without an AFS licence from 11 March 2004. The assessment process for these applicants is relatively simple, and ASIC anticipates applications lodged before the end of January 2004 will be assessed before the 10 March 2004 deadline.
Prospective licensees who are expecting to lodge a full (i.e. non-streamlined) application for a new AFS licence, must contact ASIC urgently if they intend to continue in business after 10 March 2004. The contact at ASIC is Ms Pauline Vamos, ASIC Director of Licensing and Business Operations.
'During the two-year transition period of the FSRA, ASIC has consistently warned financial services businesses to lodge their licence applications as early as possible. We have provided extensive guidance to help industry make the transition to the new licensing regime', Mr Johnston said.
It is an offence to carry on a financial services business without a licence, punishable by a fine of $22,000 or imprisonment for two years, or both. The conduct of an unlicensed financial services business may also expose offenders to other court actions.
After 10 March 2004, ASIC will conduct surveillances targeting businesses that are illegally operating without a licence or otherwise not complying with financial services laws.
This emphasis on compliance is intended to protect the interests of consumers and uphold the integrity of the industry. ASIC will treat very seriously any individual or company that continues to operate whilst unlicensed, or fails to meet the responsibilities and obligations imposed by the reforms to the Corporations Act.
'ASIC's primary concern is to ensure that any company or individual that wishes to operate a financial services business, or provide advice in relation to a financial product, holds an AFS licence after 10 March 2004', Mr Johnston said.
'The Government has confirmed that it will not extend the transition period beyond 10 March 2004. If a business misses that deadline, they will need to have alternative arrangements in place to continue operating', he said.
For further information contact:
Ms Pauline Vamos
Director FSR - Licensing and Business Operations
Telephone: 02 9911 2178
Mobile: 0411 549 287