The Government has released for public consultation an exposure draft of the Corporations and Australian Securities and Investments Commission Legislation Amendment (Water Trading Exemptions) Regulation 2014 and the accompanying explanatory material.
The intent of this policy is to clarify the treatment of tradeable water rights and certain arrangements in relation to tradeable water rights.
This draft follows public consultation including submissions received on an earlier exposure draft. Following consultation the draft has been revised to explicitly provide that the Australian Securities Investment Commission’s (ASIC) unconscionable conduct and consumer protection functions in relation to financial products would not extend to tradeable water rights. Further the carve-out has been modified to better address scenarios where tradeable water right sold by one party may not be strictly identical to that received by the other party.