ESIA Submission: ASIC Consultation - Updates to RG236, 7 June 2024
1. ASIC needs to consider the impacts of the following:
a. Wording in the guide does not clarify whether an Australian Financial Services License (AFSL) is required to trade forward contracts (generally understood to be considered derivatives) in the white certificate schemes operating in Australia.
b. Use of the word ‘likely’ results in a major grey area which is highly significant to white certificate scheme certificate creators and traders including: obligated parties (e.g. electricity retailers) and in Victoria Accredited Persons (APs) and in NSW Accredited Certificate Providers (ACPs).
2.The ESIA would welcome the opportunity to explore with ASIC potential guidance descriptions of regular situations where an AFSL is not required and others where it is required, if at all, in the white certificates markets.
3.The ESIA does not have position on for what an AFSL is required, and rather seeks further engagement to explore where such a requirement may be best placed to strengthen certainty and resilience of the white certificate market, as well as where it may inadvertently be required and which undermines the operation of the white certificate market.
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