ASIC has extended the current class no-action position for a contravention of the requirement to hold an Australian financial services (AFS) licence in section 911A(1) Corporations Act 2001 (Corporations Act) in relation to providing a second party opinion (SPO) that involves general financial product advice to wholesale clients only.

This extension will provide time for consideration on how the phased implementation of mandatory climate reporting requirements under the Corporations Act and upcoming regulatory changes in other jurisdictions will impact these services.

This no-action position applies until the end of 15 June 2028 unless amended or revoked.

ASIC’s no-action position is conditional and includes:

• the SPO is made available in connection with an offer for issue or sale of financial products made available only to wholesale clients;
• there are adequate conflict management arrangements in place; and
• the SPO is accompanied by certain disclosures.

Consistent with Regulatory Guide 108 No-action letters (RG 108), ASIC reserves the right to withdraw or revise this no-action letter at any time.

Download the letter (PDF 132 KB)

More information

ASIC first issued a two-year class no-action position in relation to the requirement for SPO providers to hold an AFS licence where the SPO is given in connection with an offer of financial products in June 2024.

Background

A second party opinion (SPO) is an opinion, statement or report on the alignment or contribution of a financing instrument, program, or framework of an entity to industry-accepted environmental sustainability-based principles, as prepared by a person who is independent of the commissioning party.

An SPO provider is a person that provides the SPO.

Where the conditions are satisfied, ASIC does not intend to take action for a contravention of subsection 911A(1) of the Corporations Act 2001 (Corporations Act) in relation to the provision of a SPO that involves providing general financial product advice to wholesale clients only.