GLOBAL SUB-PRIME CRISIS

BANKILEAKS

Click on our Secret Library of Evidence ------>

    BANKILEAKS Secret Library

Loan Application Forms (LAF's)  

    Bank Emails to Brokers  

    Then Click on 'VIEW NOTEBOOK'

Join us on facebook
 

facebook3           facebook2 

BFCSA
MORTGAGE
DISTRESS SOS

What BFCSA Does...

BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

Visitors

Articles View Hits
760897

Whistleblowers' Corner!

To all mortgage brokers, BDMs and loan approval officers! 
Pls Call Denise: 0401 642 344 

"Confidentiality is assured."

Cartoon Corner

Lighten your load today and "Laugh all the way to the bank!"

Lee Doyle

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form

ASIC Slack on issuers of electricity derivatives [May 2012]

Posted by on in Corrupt Regulators
  • Font size: Larger Smaller
  • Hits: 1685
  • 0 Comments
  • Print

07 May 2012

Issuers of over-the-counter derivatives relating to the wholesale price of electricity could have easier financial requirements if the proposals in ASIC's new Consultation Paper 177 Electricity derivative market participants: Financial requirements are adopted.

This new consultation paper, which is part of ASIC's revisiting of financial requirements for the financial services industry generally, proposes to simplify financial requirements of AFS licensees by moving to a test of net tangible asset measure of 10% of revenue.

On the other hand, ASIC is proposing longer cash flow projections for electricity derivative market participants – these would be rolling 12-month cash flow projections prepared quarterly.

But the proposal only applies to AFS licensees who only trade electricity derivatives. If you trade gas, weather or oil derivatives as well as electricity, then the standard derivatives financial obligations will still apply. As a result, this change would be of benefit really only to traders who only do electricity.

ASIC says that this limitation is justified because "Australian wholesale electricity markets are highly regulated, and we are keen to limit the compliance burden applying to these persons only undertaking financial services activities relating to the wholesale electricity market by ensuring that our financial requirements are as simple and clear as possible, and are appropriate for the nature of this industry sector."

Is there a case to extend the simplified relief to other energy-related derivatives such as gas, weather or oil derivatives?

ASIC is seeking comments on the proposals, including whether the relief should be limited to electricity derivatives, by 29 June 2012.

 

Source and further reading: http://www.claytonutz.com/publications/news/201205/07/asic_looks_at_relaxing_financial_requirements_for_issuers_of_electricity_derivatives.page

 

COMMENT:

Does this mean that the consumer's credit account with the electricity provider would be subject to securitisation?

Would the consumer be given a choice on this securitisation at the time of connecting supply and creating the consumer credit contract?

Have you ever signed a credit contract with an electricity or other utility provider?

Where are the advantages or disadvantages to the consumer in this arrangement?

What type of risk could these derivatives be creating for the consumer, if any?

As for betting on the weather ..... !!

I wonder if ASIC is revising its ideas on the risk and legal status of securities now?

Last modified on
Rate this blog entry:

Comments

  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Saturday, 05 December 2020