Prepared by the Office of Parliamentary Counsel, Canberra
Corporations Regulations 2001
Statutory Rules No. 193, 2001
made under the
Corporations Act 2001
Compilation No. 113
Compilation date: 31 March 2015
Includes amendments up to: SLI No. 39, 2015
Registered: 9 April 2015
This compilation is in 7 volumes
Volume 1: regulations 1.0.01–6D.5.02
Volume 2: regulations 7.1.02–7.6.08E
Volume 3: regulations 7.7.01–8.4.02
Volume 4: regulations 9.1.01–12.9.03
Volume 5: Schedules 1, 2 and 2A
Volume 6: Schedules 3–12
Volume 7: Endnotes
Each volume has its own contents
Federal Register of Legislative Instruments F2015C00303
About this compilation
This compilation
This is a compilation of the Corporations Regulations 2001 that shows the text
of the law as amended and in force on 31 March 2015 (the compilation date).
This compilation was prepared on 31 March 2015.
The notes at the end of this compilation (the endnotes) include information
about amending laws and the amendment history of provisions of the compiled
law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the
compiled law. Any uncommenced amendments affecting the law are accessible
on ComLaw (www.comlaw.gov.au). The details of amendments made up to, but
not commenced at, the compilation date are underlined in the endnotes. For
more information on any uncommenced amendments, see the series page on
ComLaw for the compiled law.
Application, saving and transitional provisions for provisions and
amendments
If the operation of a provision or amendment of the compiled law is affected by
an application, saving or transitional provision that is not included in this
compilation, details are included in the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as
modified but the modification does not amend the text of the law. Accordingly,
this compilation does not show the text of the compiled law as modified. For
more information on any modifications, see the series page on ComLaw for the
compiled law.
Self-repealing provisions
If a provision of the compiled law has been repealed in accordance with a
provision of the law, details are included in the endnotes.
Federal Register of Legislative Instruments F2015C00303
Corporations Regulations 2001 i
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Contents
Chapter 7—Financial services and markets 1
Part 7.7—Financial service disclosure 1
Division 1—Preliminary 1
7.7.01 How documents, information and statements are to
be given .............................................................................1
Division 2—Financial Services Guide 3
7.7.02 Situations in which Financial Services Guide is not
required .............................................................................3
7.7.02A Situations when Financial Services Guide is not
required .............................................................................7
7.7.03 Financial Services Guide given by financial
services licensee: description of documents ......................9
7.7.03A Financial Services Guide given by financial
services licensee: compensation arrangements ................10
7.7.04 Financial Services Guide given by financial
services licensee: remuneration, commission and
benefits ............................................................................10
7.7.04A Financial services guide given by financial
services licensee: more detailed information about
remuneration etc..............................................................13
7.7.04AA Financial Services Guide given by financial
services licensee: non-monetary benefit that is not
conflicted remuneration...................................................14
7.7.04AB Financial Services Guide given by authorised
representative: non-monetary benefit that is not
conflicted remuneration...................................................14
7.7.05 Record of advice given by financial services
licensee............................................................................14
7.7.05A Financial Services Guide given by authorised
representative of financial services licensee:
authorised representative number ....................................15
7.7.05B Personalised Financial Services Guide............................15
7.7.05C Exemption from providing certain information in a
Financial Services Guide.................................................17
7.7.06 Financial Services Guide given by authorised
representative of financial services licensee:
description of documents.................................................18
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7.7.06A Financial Services Guide given by authorised
representative of financial services licensee—
licence number ................................................................19
7.7.06B Financial Services Guide given by authorised
representative of financial services licensee:
compensation arrangements ............................................19
7.7.07 Financial Services Guide given by authorised
representative of financial services licensee:
remuneration, commission and benefits ..........................20
7.7.07A Financial services guide given by authorised
representative: more detailed information about
remuneration etc..............................................................22
7.7.08 Record of advice given by authorised
representative of financial services licensee ....................23
Division 2A—Combined Financial Services Guide and Product
Disclosure Statement 24
7.7.08A Combined Financial Services Guide and Product
Disclosure Statement .......................................................24
Division 2AA—Combined Financial Services Guide and credit
guide 27
7.7.08B Modification of section 942DA of the Act ......................27
Division 2B—Record of small investment advice 29
7.7.08C Record of small investment advice—content
requirements ....................................................................29
Division 3—Statement of Advice 30
7.7.09 Situations in which statement of advice is not
required: further advice ...................................................30
7.7.09A Situations in which Statement of Advice is not
required: small investments threshold .............................30
7.7.09AA Statement of Advice from financial services
licensee............................................................................34
7.7.09AB Modification of subsection 947B(4) of the Act ...............35
7.7.09B Statement of Advice from providing entity—
information not included in the Statement.......................35
7.7.09BA Statement of Advice from authorised
representative ..................................................................36
7.7.09BB Modification of subsection 947C(4) of the Act ...............37
7.7.09BC Statement of Advice given by financial services
licensee: non-monetary benefit that is not
conflicted remuneration...................................................38
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7.7.09BD Statement of Advice given by authorised
representative: non-monetary benefit that is not
conflicted remuneration...................................................38
7.7.09C Requirement to keep Statement of Advice and
other documents ..............................................................38
7.7.10 Products for which a Statement of Advice is not
required ...........................................................................39
7.7.10AA Obligation on authorised representative to give a
financial services guide ...................................................39
7.7.10AAA Record of advice without a recommendation to
purchase or sell—content requirements...........................40
7.7.10AB Financial services guide—contents of guide ...................40
7.7.10AC Financial services guide ..................................................41
7.7.10AD Financial services guide ..................................................43
7.7.10AE Situations in which Statement of Advice not
required ...........................................................................44
7.7.10AF Various consequential amendments to Division 7
of Part 7.7 concerning situations where Financial
Services Guides do not have to be given .........................46
7.7.10AG Various consequential amendments to Division 7
of Part 7.7 ........................................................................49
7.7.10AH Business days ..................................................................51
7.7.10AI Obligation to warn client that advice does not take
account of client’s objectives, financial situation or
needs—carbon units, Australian carbon credit
units and eligible international emissions units ...............51
7.7.10A Statements of Advice—requirement to state
information as amounts in dollars ...................................52
7.7.10B Insertion of definition—further advice ............................53
7.7.10C Omission of definition—further market-related
advice ..............................................................................54
7.7.10D Additional information in Statement of Advice...............54
7.7.10E Additional information in Statement of Advice...............54
7.7.11 Statement of Advice given by financial services
licensee............................................................................54
7.7.11A Statement of Advice given by authorised
representative of financial services licensee—
licence number ................................................................55
7.7.11B Statement of Advice—disclosure of dollar
amounts ...........................................................................55
7.7.12 Statement of Advice given by authorised
representative of financial services licensee ....................56
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7.7.13 Statement of Advice provided by authorised
representative—disclosure of dollar amounts..................57
7.7.13A Additional information about charges or
benefits—disclosure of dollar amounts ...........................58
7.7.13B Additional information about charges or
benefits—disclosure of dollar amounts ...........................59
Division 4—General advice provided to a retail client 60
7.7.14 Product Disclosure Statement not required .....................60
Division 5—Other disclosure requirements 61
7.7.20 General advice to retail client—no obligation to
warn client .......................................................................61
7.7.20A Extension of disclosure requirements to wholesale
clients dealing with certain unauthorised insurers ...........61
Division 6—Exemptions from application of Part 7.7 of the Act 63
7.7.21 Exemption from application of Part 7.7 of the Act..........63
Part 7.7A—Best interests obligations and remuneration 64
Division 2—Best interests obligations 64
Subdivision 1—Duty to act in client’s best interests 64
7.7A.1 Duty if advising on combination of products ..................64
Division 3—Charging ongoing fees to clients 66
7.7A.10 Arrangements that are not ongoing fee
arrangements ...................................................................66
7.7A.11 Fee disclosure statements: product fee ............................66
Division 4—Conflicted remuneration 67
Subdivision 1—Monetary benefits 67
7.7A.12 What subdivision is about ...............................................67
7.7A.12A Life risk insurance products ............................................67
7.7A.12B Stamping fees ..................................................................67
7.7A.12C Time-sharing schemes .....................................................68
7.7A.12D Brokerage fees.................................................................69
7.7A.12E Fees paid by clients for dealing services .........................71
7.7A.12EA Application of ban on conflicted remuneration—
purchase or sale of financial advice business ..................71
Subdivision 2—Monetary or non-monetary benefits 72
7.7A.12F What subdivision is about ...............................................72
7.7A.12G General insurance............................................................72
7.7A.12H Basic banking and general insurance products ................72
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7.7A.12I Mixed benefits.................................................................73
7.7A.13 Non-monetary benefit given in certain
circumstances not conflicted remuneration:
prescribed amount ...........................................................74
7.7A.14 Non-monetary benefit given in certain
circumstances not conflicted remuneration:
education or training course ............................................74
7.7A.15 Non-monetary benefit given in certain
circumstances not conflicted remuneration: other
education and training benefit .........................................75
7.7A.15A Non-monetary benefit given in certain
circumstances not conflicted remuneration—
education and training in conducting a financial
services business .............................................................75
7.7A.15B Application of ban on conflicted remuneration—
non-platform operator (Division 4 of Part 7.7A of
Chapter 7 of the Act does not apply) ...............................76
7.7A.16 Application of ban on conflicted remuneration—
platform operator (Division 4 of Part 7.7A of
Chapter 7 of the Act does not apply) ...............................76
7.7A.16A Application of ban on conflicted remuneration—
platform operator (Division 4 of Part 7.7A of
Chapter 7 of the Act applies)...........................................77
7.7A.16B Application of ban on conflicted remuneration—
person other than platform operator (Division 4 of
Part 7.7A of Chapter 7 of the Act applies) ......................79
7.7A.16BA Sale of business ...............................................................81
7.7A.16C Application of ban on conflicted remuneration—
employer and employee (Division 4 of Part 7.7A
of Chapter 7 of the Act does not apply)...........................81
7.7A.16D Application of ban on conflicted remuneration—
new arrangement entered into on or after
application day (Division 4 of Part 7.7A of
Chapter 7 of the Act does not apply) ...............................83
7.7A.16E Application of ban on conflicted remuneration—
change of party to an arrangement (Division 4 of
Part 7.7A of Chapter 7 of the Act does not apply)...........84
7.7A.16F Application of ban on conflicted remuneration—
benefit is a pass through of a grandfathered benefit
(benefit is not conflicted remuneration) ..........................85
Subdivision 3—Asset-based fees on borrowed amounts 85
7.7A.17 Financial services licensees .............................................85
7.7A.18 Authorised representatives ..............................................86
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Division 6—Exemptions from application of Part 7.7A of the Act 87
7.7A.40 Exemption from application of Part 7.7A of the
Act...................................................................................87
Part 7.8—Other provisions relating to conduct etc connected
with financial products and financial services, other
than financial product disclosure 88 7.8.01 Obligation to pay money into an account ........................88
7.8.02 Accounts maintained for section 981B of the Act ...........91
7.8.03 How money to be dealt with if licensee ceases to
be licensed etc .................................................................95
7.8.04 Money to which Subdivision A of Division 2 of
Part 7.8 of the Act applies taken to be held in trust:
breach of financial services law.......................................98
7.8.05 Money to which Subdivision A of Division 2 of
Part 7.8 of the Act applies taken to be held in trust:
risk accepted by insurer ...................................................98
7.8.06 Statement setting out terms of loan etc............................99
7.8.06A Property exempt from Division 3 of Part 7.8 of the
Act...................................................................................99
7.8.07 How property to which Division 3 of Part 7.8 of
the Act to be dealt with....................................................99
7.8.08 Debts of financial services licensee in relation to
premiums etc .................................................................101
7.8.08A Limit of margin lending facility taken to be
increased........................................................................107
7.8.08B Exemption from requirement to make unsuitability
assessment .....................................................................109
7.8.09 Reasonable inquiries etc about retail client:
inquiries.........................................................................111
7.8.09A Modification of section 985G of the Act .......................111
7.8.10 Circumstances in which margin lending facility is
unsuitable ......................................................................112
7.8.10A Margin lending facility taken not to be unsuitable ........112
7.8.11 Particular categories of information to be shown in
records...........................................................................112
7.8.11A Particular categories of information to be shown in
records: records of non-monetary benefit that is
not conflicted remuneration...........................................113
7.8.12 Requirements in relation to financial records of
financial services licensees............................................115
7.8.12A Modification of section 989B of the Act .......................116
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7.8.13 Auditor’s report with annual profit and loss
statement and balance sheet...........................................118
7.8.13A Compliance certificate with profit and loss
statement and balance sheet...........................................118
7.8.14 Contents of annual profit and loss statement and
balance sheet and applicable accounting
procedures .....................................................................119
7.8.14A Lodgement of annual profit and loss statement and
balance sheet .................................................................119
7.8.14B Modification of section 990B of the Act .......................120
7.8.15 Appointment of auditor by financial services
licensee..........................................................................121
7.8.16 When person is ineligible to act as auditor of
financial services licensee .............................................124
7.8.17 Priority to clients’ orders ...............................................127
7.8.18 Instructions to deal through licensed markets................127
7.8.19 Records of instructions to deal on licensed markets
and foreign markets .......................................................129
7.8.20 Dealings with non-licensees ..........................................131
7.8.20A Dealings involving employees of financial service
licensees—risk insurance products................................134
7.8.21 Dealings involving employees of financial services
licensees ........................................................................134
7.8.21A Anti-hawking provisions if no Product Disclosure
Statement is required .....................................................136
7.8.21B Anti-hawking provisions if no Product Disclosure
Statement is required—carbon units, Australian
carbon credit units and eligible international
emissions units ..............................................................137
7.8.22 Hours for hawking certain financial products................138
7.8.22A Modification of Part 7.8 ................................................138
7.8.22B Return of financial product: first home saver
accounts.........................................................................139
7.8.23 Return of financial product: transfer between
superannuation entities or RSAs....................................140
7.8.24 Right of return not to apply ...........................................140
7.8.25 Variation of amount to be repaid ...................................141
7.8.26 Exemption from application of section 992A of the
Act.................................................................................141
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Part 7.9—Financial product disclosure and other provisions
relating to issue and sale of financial products 142
Division 1—Preliminary 142
7.9.01 Interpretation .................................................................142
7.9.02 Sub-plans.......................................................................146
7.9.02A Alternative ways of giving Statement............................147
7.9.02B Product Disclosure Statement in electronic form ..........147
Division 2—Arrangements for Product Disclosure Statements in
relation to superannuation products and RSA
products 149
Subdivision 2.1—Preliminary 149
7.9.03 Application of Division 2 ..............................................149
Subdivision 2.2—Late provision of Product Disclosure Statement
for certain members of regulated superannuation
fund, public offer superannuation fund or
successor fund 149
7.9.04 Product Disclosure Statement to be provided later........149
Subdivision 2.3—Product Disclosure Statement for retirement
savings account 150
7.9.05 Situation in which Product Disclosure Statement is
not required ...................................................................150
Subdivision 2.4—Additional obligations for eligible rollover funds 150
7.9.06A Relevant superannuation entities ...................................150
7.9.06B Application forms..........................................................150
Subdivision 2.5—Product Disclosure Statement for insurance
options 151
7.9.07 Modification of Act: Product Disclosure Statement
in relation to insurance options......................................151
Division 2A—Product Disclosure Statement for warrants 152
7.9.07A Warrants ........................................................................152
Division 2B—Product Disclosure Statement for market-traded
derivatives 154
7.9.07B Product Disclosure Statements for certain
market-traded derivatives ..............................................154
7.9.07C Remedies for Product Disclosure Statements for
certain market-traded derivatives ..................................155
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Division 2BA—Product Disclosure Statement for discretionary
mutual funds 156
7.9.07CA Extension of Product Disclosure Statement
requirements to wholesale clients..................................156
Division 2C—Situations where a Product Disclosure Statement
is not required 157
7.9.07D Product Disclosure Statement not required for
offers of bundled contracts of insurance........................157
7.9.07E Product Disclosure Statement not required if offer
of financial product is declined .....................................157
7.9.07F Product Disclosure Statement not required if the
client is not contactable .................................................158
7.9.07FA Product Disclosure Statement not required for
certain specified products ..............................................159
7.9.07FB Product Disclosure Statement not required if client
not in this jurisdiction....................................................160
7.9.07FC Product Disclosure Statement not required general
insurance situation.........................................................160
Division 2D—Preparation and content of Product Disclosure
Statements 162
7.9.07J Only 1 responsible person for a Product Disclosure
Statement.......................................................................162
7.9.07K Definition of defective: Product Disclosure
Statement, Short-Form PDS or Replacement
Product Disclosure Statement........................................162
Division 2E—Obligation to make information publicly available:
registrable superannuation entities 163
Subdivision 2E.1—Obligation to make product dashboard
publicly available 163
7.9.07L Modification of Act .......................................................163
7.9.07M Source of power for this Subdivision ............................163
7.9.07N Definitions.....................................................................163
7.9.07P Meaning of MySuper product dashboard reporting
standards .......................................................................165
7.9.07Q Product dashboard—how information must be set
out .................................................................................165
7.9.07R Product dashboard—return target..................................165
7.9.07S Product dashboard—return............................................166
7.9.07T Product dashboard—comparison between return
target and return ............................................................167
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7.9.07U Comparison to be set out as a graph ..............................168
7.9.07V Product dashboard—level of investment risk ................168
7.9.07W Product dashboard—statement of fees and other
costs...............................................................................169
Division 3—Dealing with money received for financial product
before the product is issued 170
7.9.08 Accounts........................................................................170
7.9.08A Dealing with interest .....................................................171
7.9.08B Crediting of payments before money is received ..........171
7.9.08C Money held in trust for a superannuation product
or RSA product..............................................................172
7.9.08D Statutory funds under the Life Insurance Act 1995 .......173
Division 3A—Rights and obligations related to Product
Disclosure Statement—first home saver accounts 174
7.9.08E Application forms..........................................................174
Division 4—Content of Product Disclosure Statements 175
Subdivision 4.1—Preliminary 175
7.9.09 Application of Division 4 ..............................................175
Subdivision 4.1A—No Product Disclosure Statement for carbon
units, Australian carbon credit units and eligible
international emissions units 176
7.9.09A Application of Subdivision............................................176
7.9.09B Provisions of Part 7.9 of Act that do not apply in
relation to carbon units, Australian carbon credit
units and eligible international emissions units .............176
7.9.09C Modification of Act .......................................................177
Subdivision 4.2—Content of Product Disclosure Statements for
First Home Saver Accounts 177
7.9.10 Application of Subdivision............................................177
7.9.10A Definitions.....................................................................177
7.9.10B Modification of Act .......................................................178
7.9.10C Product Disclosure Statement consisting of 2 or
more documents ............................................................178
7.9.10D Manner of giving Product Disclosure Statement
for first home saver accounts.........................................179
7.9.10E Form and content of Product Disclosure Statement ......180
Subdivision 4.2A—Form and content of Product Disclosure
Statement for margin loan 180
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7.9.11 Application of Subdivision 4.2A...................................180
7.9.11A Provisions of Part 7.7 of Act that do not apply in
relation to margin loan ..................................................181
7.9.11B Definitions for Subdivision 4.2A...................................181
7.9.11C Modification of Act—margin loan ................................181
7.9.11D Form and content of Product Disclosure Statement
for margin loan ..............................................................181
7.9.11E Requirements for references to incorporated
information for margin loan ..........................................182
7.9.11F Retention of copies of Product Disclosure
Statement for margin loan .............................................184
7.9.11G Requirement to provide copy of Product
Disclosure Statement for margin loan free of
charge ............................................................................185
7.9.11H Notification about change to Approved Securities
List or current interest rate for margin loan...................185
Subdivision 4.2B—Content of Product Disclosure Statement for
superannuation product 185
7.9.11K Application of Subdivision 4.2B ...................................185
7.9.11L Provisions of Part 7.7 of Act that do not apply in
relation to superannuation product ................................186
7.9.11LA Attribution of accrued default amount to MySuper
product—exemption from significant event notice
requirements ..................................................................186
7.9.11LB Attribution of accrued default amount to MySuper
product—modification of significant event notice
requirements ..................................................................186
7.9.11M Provisions of Part 7.9 of Act that do not apply in
relation to superannuation product ................................187
7.9.11N Modification of Act—superannuation product ..............188
7.9.11O Form and content of Product Disclosure Statement
for superannuation product............................................188
7.9.11P Requirements for references to incorporated
information for superannuation product ........................189
7.9.11Q Retention of copies of Product Disclosure
Statement for superannuation product ...........................191
7.9.11R Requirement to provide copy of Product
Disclosure Statement for superannuation product
free of charge.................................................................192
Subdivision 4.2C—Content of Product Disclosure Statement for
simple managed investment scheme 192
7.9.11S Application of Subdivision 4.2C ...................................192
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7.9.11T Provisions of Part 7.7 of Act that do not apply in
relation to simple managed investment scheme.............193
7.9.11U Provisions of Part 7.9 of Act that do not apply in
relation to simple managed investment scheme.............193
7.9.11V Modification of Act—simple managed investment
scheme...........................................................................194
7.9.11W Form and content of Product Disclosure Statement
for simple managed investment scheme ........................194
7.9.11X Requirements for references to incorporated
information for simple managed investment
scheme...........................................................................195
7.9.11Y Retention of copies of Product Disclosure
Statement for simple managed investment scheme .......197
7.9.11Z Requirement to provide copy of Product
Disclosure Statement for simple managed
investment scheme free of charge .................................198
Subdivision 4.3—Other arrangements for Product Disclosure
Statements and application forms 198
7.9.12 Modification of Act: Product Disclosure
Statements and application forms for standard
employer-sponsors and successor funds........................198
7.9.13 Offer of superannuation interest without
application or eligible application .................................199
7.9.13A Remedies for person acquiring financial product
under defective Product Disclosure Statement: first
home saver accounts......................................................200
7.9.14 Remedies for person acquiring financial product
under defective Product Disclosure Statement:
superannuation and RSAs..............................................201
7.9.14A Treatment of arrangements under which a person
can instruct another person to acquire a financial
product ..........................................................................202
Subdivision 4.4—Product information for certain insurance
products 202
7.9.14B Product information.......................................................202
Division 4A—General 204
7.9.14C Labour standards and environmental, social and
ethical considerations ....................................................204
7.9.14D Further statements required in Product Disclosure
Statement—financial claims scheme.............................205
7.9.15 More detailed information in Product Disclosure
Statement: unauthorised foreign insurer ........................206
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7.9.15A Product Disclosure Statements—requirement to
state information as amounts in dollars .........................207
7.9.15B Product Disclosure Statements—disclosure of
dollar amounts ...............................................................208
7.9.15C Product Disclosure Statements—disclosure of
dollar amounts ...............................................................208
7.9.15CA Less information in Product Disclosure
Statement—financial claims scheme.............................210
7.9.15D Less information in product disclosure statement:
general insurance product..............................................210
7.9.15DA Statement or information not included in a Product
Disclosure Statement .....................................................211
7.9.15DB Requirement to keep record of Product Disclosure
Statement and other documents .....................................212
7.9.15DC Requirement to lodge documents mentioned in a
Product Disclosure Statement with ASIC......................213
7.9.15E More detailed information in product disclosure
statement: general insurance product.............................213
7.9.15F Product disclosure statement: general insurance
product ..........................................................................214
7.9.15FA Transitional arrangements for regulations 7.9.15D,
7.9.15E and 7.9.15F.......................................................214
7.9.15G Business days ................................................................215
7.9.15H New section 1012G: product disclosure statement
may sometimes be provided later ..................................215
7.9.15I Modification of section 1012IA ....................................217
7.9.16 More detailed information in Product Disclosure
Statement: consumer credit insurance product ..............218
7.9.16A Small scale offerings of managed investment and
other prescribed financial products (20 issues or
sales in 12 months) ........................................................219
Division 4B—Ongoing disclosure 220
7.9.16G Ongoing disclosure of material changes and
significant events...........................................................220
Division 4C—Fee Disclosure for certain financial products 221
Subdivision 4C.1—Application 221
7.9.16J Application of Division 4C to financial products ..........221
7.9.16JA Application of Division 4C to financial products—
temporary arrangements ................................................221
7.9.16K Application of Division 4C to periodic statements
and Product Disclosure Statements ...............................221
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Subdivision 4C.2—Product Disclosure Statements 222
7.9.16L More detailed information about fees and costs ............222
7.9.16M Modification of section 1015C of the Act .....................222
7.9.16N Presentation, structure and format of fees and costs
in Product Disclosure Statements ..................................223
Subdivision 4C.3—Periodic statements 223
7.9.16O Presentation, structure and format of fees and
charges in periodic statements .......................................223
Division 4D—Other requirements relating to Product Disclosure
Statements and Supplementary Product Disclosure
Statements 224
Subdivision 4D.1—Requirement to lodge a notice with ASIC 224
7.9.16T Variation of paragraph 1015D(2)(b) of the Act .............224
Division 5—Ongoing requirements for product disclosure after
person becomes a member 225
Subdivision 5.1—Preliminary 225
7.9.17 Application of Division 5 ..............................................225
Subdivision 5.2—Periodic statements for retail clients for
financial products that have an investment
component: regulated superannuation funds,
ADFs and RSAs 225
7.9.18 Application of Subdivision 5.2......................................225
7.9.19 Specific requirements for periodic statements:
superannuation funds (other than self managed
superannuation funds) and RSAs ..................................225
7.9.19A Withdrawal benefit—fees, charges or expenses ............227
7.9.19B Withdrawal benefit—fees, charges and expenses..........227
7.9.20 Specific requirements for certain periodic
statements: superannuation funds (other than self
managed superannuation funds) ....................................229
7.9.20AA Specific requirements for certain periodic
statements: superannuation funds (other than self
managed superannuation funds)—long-term
returns............................................................................231
7.9.20A Details of other significant benefits—disclosure of
fees, charges or expenses...............................................234
7.9.20B Other significant benefits—disclosure of fees,
charges or expenses .......................................................235
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7.9.21 Specific requirements in particular cases: member
(other than capital guaranteed member) of fund
other than a self managed superannuation fund.............237
7.9.22 Specific requirements: capital guaranteed funds
and RSAs.......................................................................238
7.9.23 Information for capital guaranteed fund: benefits
reach $10 000 ................................................................239
7.9.24 Modification of Act: pensioners, members subject
to compulsory protection of small amounts and
members with small amounts that are expected to
grow quickly..................................................................239
Subdivision 5.3—Periodic statements for retail clients for
financial products that have an investment
component: information for RSAs 240
7.9.25 Application of Subdivision 5.3......................................240
7.9.26 Specific requirements where applicable: RSAs.............240
7.9.27 Modification of Act: periodic statements for RSA
holders...........................................................................242
7.9.28 Information for RSA: amount reaches $10 000.............242
Subdivision 5.4—Periodic statements for retail clients for
financial products that have an investment
component: additional information for
superannuation entities and RSA providers 242
7.9.29 Application of Subdivision 5.4......................................242
7.9.30 Additional information for change to choices ...............243
Subdivision 5.4A—Periodic statements for retail clients for
financial products that have an investment
component: additional information for margin
lending facilities 243
7.9.30A Application of Subdivision 5.4A...................................243
7.9.30B Details to be included in periodic statements for
margin lending facilities ................................................244
Subdivision 5.5—Fund information for retail clients for financial
products that have an investment component:
superannuation 245
7.9.31 Application of Subdivision 5.5......................................245
7.9.32 Reporting periods: general ............................................245
7.9.33 Use of more than 1 document........................................246
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Subdivision 5.6—Fund information for retail clients for financial
products that have an investment component:
fund information for regulated superannuation
funds and ADFs 246
7.9.34 Application of Subdivision 5.6......................................246
7.9.35 General requirement ......................................................247
7.9.36 Specific requirements in all cases..................................247
7.9.37 Specific requirements in particular cases.......................247
7.9.38 Specific information in particular case: self
managed superannuation fund .......................................251
7.9.39 Benefits determined by life insurance products.............251
Subdivision 5.7—Fund information for retail clients for financial
products that have an investment component:
fund information for pooled superannuation trusts 252
7.9.40 Application of Subdivision 5.7......................................252
7.9.41 Specific requirements in all cases..................................252
7.9.42 Specific requirements in particular cases.......................253
Subdivision 5.8—Ongoing disclosure of material changes and
significant events 255
7.9.43 Modification of Act: disclosure of material
changes and significant events in relation to
superannuation products and RSA products ..................255
7.9.44 Benefits to be paid to eligible rollover fund ..................255
Subdivision 5.9—Information on request: members 257
7.9.45 Regulated superannuation funds, ADFs and pooled
superannuation trusts.....................................................257
7.9.46 RSAs .............................................................................258
Subdivision 5.10—Information on request: payments 258
7.9.47 Modification of Act: charges for information
requested .......................................................................258
Subdivision 5.11—Information about complaints 258
7.9.48 Source of power for this Subdivision ............................258
7.9.48A Definitions.....................................................................258
7.9.48B Complaints—general.....................................................259
7.9.48C Complaints about benefits other than death
benefits—decision made ...............................................259
7.9.48D Complaints about benefits other than death
benefits—no decision made ..........................................260
7.9.48A Definitions.....................................................................261
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7.9.48B Complaints—general.....................................................261
Subdivision 5.12—Periodic report when product holder ceases to
hold product: superannuation products and RSA
products 262
7.9.49 Application of Subdivision 5.12....................................262
7.9.50 Exit reporting period .....................................................262
7.9.51 Time for compliance .....................................................262
7.9.52 General requirement ......................................................262
7.9.53 Information on death of product holder.........................263
7.9.54 Specific requirements in all cases..................................263
7.9.55 Specific requirements in particular cases.......................264
7.9.56 Exceptions to exit reporting period provisions:
superannuation products and RSA products ..................264
7.9.57 Exception—members subject to compulsory
protection of small amounts ..........................................264
7.9.58 Information to be given in cases other than death
of RSA holder ...............................................................265
7.9.59 Information to be given where applicable .....................266
7.9.60 Modification of Act: exceptions to exit reporting
period provisions ...........................................................267
Division 5AA—General requirements for financial disclosure 268
7.9.60A Modification of Act: disclosure.....................................268
7.9.60B Disclosure of transactions in periodic statements ..........268
Division 5AB—Short-Form Product Disclosure Statements 270
7.9.61AA Modification of the Act: Short-Form Product
Disclosure Statements ...................................................270
Division 5A—Dealing with money received for financial product
before the product is issued 272
7.9.61A Lost application money .................................................272
7.9.61B Issue of substitute insurance product .............................273
7.9.61C Cheques.........................................................................273
Division 5B—Confirming transactions 274
7.9.61D Transactions involving superannuation products...........274
Division 5C—CGS depository interests 276
7.9.61E CGS depository interest information website ................276
Division 6—Confirmation of transactions 277
7.9.62 Confirmation of transaction: superannuation
products and RSAs ........................................................277
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7.9.63 Confirmation of transactions: precise costs of
transaction not known ...................................................280
7.9.63A Persons who must confirm transactions ........................280
7.9.63B Content of confirmation of transactions—general.........282
7.9.63C Confirmation of transaction—multiple transactions......283
7.9.63D Confirmation of transaction—information about
cooling-off period..........................................................285
7.9.63E Confirmation of transaction—facility that provides
written confirmation ......................................................286
7.9.63F Confirmation of transaction—acquisition of
financial product............................................................286
7.9.63G Confirmation of transaction—disposal of financial
product ..........................................................................287
7.9.63H Certain product issuers and regulated persons must
meet appropriate dispute resolution
requirements—self managed superannuation funds ......287
7.9.63I Confirmation of transaction in electronic form .............287
Division 7—Cooling-off periods 288
7.9.64 Cooling-off periods not to apply ...................................288
7.9.64A Notification of exercise of right of return—risk
insurance products.........................................................289
7.9.65 Return of financial product: general ..............................289
7.9.65A Return of financial product: first home saver
accounts.........................................................................290
7.9.66 Return of financial product: superannuation and
RSAs .............................................................................291
7.9.67 Variation of amount to be repaid ...................................292
7.9.68 Modification of section 1019B of the Act: client
includes standard employer-sponsor..............................295
7.9.69 Modification of provisions of Division 5 of
Part 7.9 of the Act: terms of contract.............................297
7.9.70 Modification of provisions of Division 5 of
Part 7.9 of the Act: distributions....................................298
Division 8—Other requirements 299
7.9.71 Modification of section 1017D of the Act: use of
more than 1 document ...................................................299
7.9.71A Periodic statements—exemption for passbook
accounts.........................................................................299
7.9.72 Modification of section 1017D of the Act:
information already given..............................................299
7.9.73 Reporting periods: general ............................................300
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7.9.74 Form of application .......................................................300
7.9.74A Periodic statements—requirement to state
information as amounts in dollars .................................300
7.9.74B Periodic statements—additional details for First
Home Saver Accounts ...................................................302
7.9.75 Content of periodic statements: costs of
transactions....................................................................303
7.9.75A Ways of giving information...........................................306
7.9.75B Information in electronic form ......................................307
7.9.75BA Fund information made available on a website .............307
7.9.75C Periodic statements—disclosure of amounts .................308
7.9.75D Periodic statements—disclosure of amounts .................309
7.9.76 Consents to certain statements.......................................310
7.9.77 Alternative dispute resolution requirements—
product issuer that is not a financial services
licensee..........................................................................310
7.9.78 Additional statement: trustee required to provide
benefits ..........................................................................311
7.9.80B Short selling of certain warrants ....................................312
Division 9—Additional requirements for transfer of lost
members and lost RSA holders 314
7.9.81 Lost members ................................................................314
7.9.82 Lost RSA holders ..........................................................314
Division 11—Superannuation to which arrangements apply
under the Family Law Act 1975 316
7.9.84 Definitions for Division 11............................................316
7.9.85 Application of Division 11 ............................................317
7.9.86 Acquisition of financial product ....................................317
7.9.87 Modification of Act: Product Disclosure Statement
in relation to superannuation interest under Family
Law Act.........................................................................318
7.9.88 Statement content in relation to superannuation
interest under Family Law Act: superannuation
fund ...............................................................................319
7.9.89 Statement content in relation to superannuation
interest under Family Law Act: RSA ............................320
7.9.90 Information for existing holders of superannuation
products and RSA products in relation to
superannuation interest..................................................321
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7.9.91 Periodic statements for retail clients for financial
products that have an investment component—
general ...........................................................................322
7.9.92 Periodic statements for retail clients for financial
products that have an investment component—
superannuation interest other than percentage-only
interest ...........................................................................322
7.9.93 Trustees of superannuation entities—additional
obligation to provide information in relation to
superannuation interest..................................................323
7.9.94 Division 5 of Part 7.9 of the Act not to apply in
relation to non-member spouse......................................324
Division 12—Medical indemnity insurance 325
7.9.95 Medical indemnity insurance—exemption from
product disclosure provisions ........................................325
Division 13—Unsolicited offers to purchase financial products
off market 326
7.9.96 Percentage increase or decrease in the market
value of a product ..........................................................326
7.9.97 Off-market trading by professional investors etc...........326
7.9.97A Information in offer document if payment is to be
made in instalments .......................................................327
Division 14—Exemptions from Parts 7.7, 7.8 and 7.9 of the Act 329
7.9.98 Certain providers of financial services exempted
from the requirements of Parts 7.7, 7.8 and 7.9 of
the Act ...........................................................................329
7.9.98A Exemption from application of Part 7.9 of the Act........329
Division 15—Disclosure in relation to short sales covered by
securities lending arrangement of listed
section 1020B products 331
7.9.99 Interpretation .................................................................331
7.9.100 Seller disclosure ............................................................332
7.9.100A Seller disclosure of existing short position ....................333
7.9.101 Licensee disclosure........................................................334
7.9.102 Public disclosure of information....................................335
Part 7.10—Market misconduct and other prohibited conduct
relating to financial products and financial services 337 7.10.01 Division 3 financial products.........................................337
7.10.02 Professional standards schemes.....................................337
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7.10.03 Exemption for market participants of qualifying
gas trading exchange .....................................................339
Part 7.11—Title and transfer 340
Division 1—Preliminary 340
7.11.01 Definitions.....................................................................340
7.11.03 Arrangements about Division 4 financial products .......342
7.11.04 Arrangements for forms ................................................343
7.11.05 Document duly completed in accordance with a
particular form...............................................................344
7.11.06 Stamping of documents .................................................345
7.11.07 Application of Division 3 of Part 7.11 of the Act to
certain bodies ................................................................345
7.11.08 Interests in registered schemes ......................................346
Division 2—Application of Part 7.11 347
7.11.09 Application....................................................................347
Division 3—Transfer of Division 3 securities effected otherwise
than through a prescribed CS facility 348
7.11.10 Application of Division 3 ..............................................348
7.11.11 Sufficient transfer: general ............................................348
7.11.12 Sufficient transfer of Division 3 assets: licensed
trustee company or Public Trustee of a State or
Territory ........................................................................349
7.11.13 Sufficient transfer of Division 3 rights: licensed
trustee company or Public Trustee of a State or
Territory ........................................................................349
7.11.14 Sufficient transfer ..........................................................349
7.11.15 Transferee’s execution of transfer of Division 3
assets .............................................................................350
7.11.16 Transferee’s execution of transfer of Division 3
rights..............................................................................350
7.11.17 Transfer document that purports to bear stamp of
transferor's broker..........................................................351
7.11.18 Warranties by market licensee if transfer
document purports to bear its stamp..............................353
7.11.19 Indemnities by market licensee and broker if
transfer document purports to bear their stamps............353
7.11.20 Joint and several warranties and liabilities ....................354
7.11.21 Registration of certain instruments................................355
7.11.22 Details to be included in instrument of transfer.............356
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Division 4—Transfer of Division 4 financial products effected
through prescribed CS facility 357
7.11.23 Application of Division 4 ..............................................357
7.11.24 Application of ASTC operating rules ............................357
7.11.25 Participant’s authority to enter into transaction
continues despite client’s death .....................................357
7.11.26 Authority to enter into transaction gives authority
to transfer ......................................................................358
7.11.27 Effect of proper ASTC transfer on transferee:
Division 4 financial products other than rights..............359
7.11.28 Effect of proper ASTC transfer on transferee:
rights..............................................................................360
7.11.29 Warranties by participant if identification code is
included in transfer document .......................................361
7.11.30 Indemnities in respect of warranted matters:
transfer not effected by the participant ..........................363
7.11.31 Indemnities in respect of warranted matters:
transferor not legally entitled or authorised to
transfer Division 4 financial products............................364
7.11.32 Indemnities in respect of warranted matters:
participant not authorised to effect transfer ...................365
7.11.33 Joint and several warranties and liabilities ....................365
7.11.34 ASTC entitled to assume its operating rules
complied with................................................................366
7.11.35 ASTC-regulated transfer not to be registered
unless proper ASTC transfer .........................................366
7.11.36 Issuer not to refuse to register proper ASTC
transfer ..........................................................................367
7.11.37 Determination of who holds Division 4 financial
products for the purposes of meeting.............................367
7.11.38 Determination of who holds Division 4 financial
products in class of Division 4 financial products
for the purposes of meeting ...........................................368
7.11.39 Determination of who holds Division 4 financial
products for the purposes of conferring security
benefits ..........................................................................369
Division 5—Offences 370
7.11.40 Stamping of broker’s stamp on sufficient transfer .........370
7.11.41 Inclusion of identification codes in proper ASTC
transfers .........................................................................371
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7.11.42 Contravention by participant of the ASTC
certificate cancellation provisions relating to use
of cancellation stamps ...................................................372
Division 6—Civil liability 373
7.11.43 Contravention by participant of the ASTC
certificate cancellation provisions .................................373
Part 7.12—Miscellaneous 374 7.12.01 Destruction of records by ASIC ....................................374
Chapter 8—Mutual recognition of securities offers 375
Part 8.1—Preliminary 375 8.1.01 Prescribed foreign recognition scheme (Act s
1200A(1))......................................................................375
8.1.02 Prescribed offeror (Act s 1200A(1))..............................375
8.1.03 Prescribed recognised jurisdiction (Act s
1200A(1))......................................................................376
Part 8.2—Foreign offers that are recognised in this jurisdiction 377
Division 1—Recognised offers 377
8.2.01 Prescribed offer (Act s 1200C(4)) .................................377
8.2.02 Prescribed warning statements (Act s 1200E) ...............377
8.2.03 Prescribed details to be given in warning
statements (Act s 1200E(b)) ..........................................380
8.2.04 Prescribed home regulators (Act s 1200G(13) and
(14))...............................................................................380
Division 4—Modification of the Act in relation to its application
to recognised offers for interests in New Zealand
managed investment schemes (Act s 1020G, 1200M) 382
8.4.01 Modification of Part 7.9 of the Act—New Zealand
offer documents replace Product Disclosure
Statements .....................................................................382
8.4.02 Modification of Part 6D.2 of the Act and Part 7.9
of the Act—certain disclosure obligations not to
apply..............................................................................382
Federal Register of Legislative Instruments F2015C00303
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Preliminary Division 1
Regulation 7.7.01
Corporations Regulations 2001 1
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Chapter 7—Financial services and markets
Part 7.7—Financial service disclosure
Division 1—Preliminary
7.7.01 How documents, information and statements are to be given
(1) For subsection 940C(3) of the Act:
(a) if general advice is given orally in a public forum,
information that subsection 941C(5) of the Act requires to be
given must be given orally; and
(b) if general advice is given in electronic form in a public
forum, information that subsection 941C(5) of the Act
requires to be given must be given in electronic form; and
(c) if general advice is given in writing (otherwise than in
electronic form) in a public forum, information that
subsection 941C(5) of the Act requires to be given must be
given in writing; and
(d) if general advice is given in any other manner in a public
forum, information that subsection 941C(5) of the Act
requires to be given must be given in the same manner.
(2) For paragraph 940C(7)(a) of the Act, a Financial Services Guide
and a Statement of Advice may be given to a person in either of the
following ways:
(a) making the Guide or Statement available to the person in any
way that:
(i) is agreed to by the person; and
(ii) allows the regulated person to be satisfied, on
reasonable grounds, that the person has received the
Guide or Statement;
(b) making the Guide or Statement available to the person’s
agent in any way that:
(i) is agreed to by the agent; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 1 Preliminary
Regulation 7.7.01
2 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) allows the regulated person to be satisfied, on
reasonable grounds, that the agent has received the
Guide or Statement.
(3) For paragraph 940C(7)(b) of the Act, a document, information or
statement that is to be given in electronic form must, as far as
practicable, be presented in a way that will allow the person to
whom it is given to keep a copy of it so that the person can have
ready access to it in the future.
(4) A document or statement that is to be given in electronic form must
be presented in a way that clearly identifies the information that is
part of the document or statement.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Financial Services Guide Division 2
Regulation 7.7.02
Corporations Regulations 2001 3
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2—Financial Services Guide
7.7.02 Situations in which Financial Services Guide is not required
(1) For paragraph 941C(6)(c) of the Act, the following are prescribed:
(a) a deposit product that is a facility in relation to which:
(i) there is no minimum period before which funds cannot
be withdrawn or transferred from the facility without a
reduction in the return generated for the depositor; or
(ii) if there is such a period, it expires on or before the end
of the period of 2 years starting on the day on which
funds were first deposited in the facility;
(b) travellers’ cheques;
(c) a cash management trust interest;
(d) a capital guaranteed FHSA product.
(2) For subsection 941C(4) of the Act:
(a) providing general advice to the public, or a section of the
public, at an event organised by or for financial services
licensees to which retail clients are invited is prescribed; and
(b) a broadcast of general advice to the public, or a section of the
public, that may be viewed or heard by any person is
prescribed; and
(c) distributing or displaying promotional material that:
(i) provides general advice to the public, or a section of the
public; and
(ii) is available in a place that is accessible to the public is
prescribed.
Examples:
1 Television or radio broadcasts.
2 Distributing promotional material contained in newspapers and
magazines.
3 Sending a broadcast via an Internet website or webcast.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 2 Financial Services Guide
Regulation 7.7.02
4 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
4 Giving a public lecture or seminar for retail clients, including
employees of a workplace.
Note: If general advice is given to the public, or a section of the public, the
requirements of subsection 941C(5) of the Act must be complied with.
Additionally, if general advice is provided to 1 or more retail clients,
the providing entity must comply with section 949A of the Act.
(3) For subsection 941C(8) of the Act, a Financial Services Guide does
not have to be given to a client in the following circumstances:
(a) a person (person 1) makes an inquiry by telephone in relation
to the rental of a vehicle from another person (person 2);
(b) as a result of that inquiry, it becomes apparent to person 2
that a financial service will be, or is likely to be, provided to
person 1;
(c) the financial service is the issue of an insurance product that
relates to either or both of:
(i) the accidental death of, or bodily injury to, a person
caused by an accident in connection with the use of the
rented vehicle during the rental period; and
(ii) the loss or destruction of, or damage to, either or both of
baggage and personal effects belonging to a person in
the rented vehicle caused by an insured event during the
rental period;
(d) person 2 makes arrangements for a document that is the
equivalent of a Financial Services Guide to be given to
person 1 no later than the start of the use to which the
insurance product relates.
Example: The commencement of a journey of the rental vehicle is a use to
which the insurance product relates.
(3A) For subsection 941C(8) of the Act, a Financial Services Guide does
not have to be given to a client for a financial service provided in
the circumstances specified in paragraph 7.6.01(1)(la).
(4) For subsection 941C(8) of the Act, a Financial Services Guide does
not have to be given to a client in respect of advice that:
(a) is provided by a providing entity that is:
(i) a product issuer; or
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Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Financial Services Guide Division 2
Regulation 7.7.02
Corporations Regulations 2001 5
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(ii) a related body corporate of a product issuer; or
(iii) a product distributor; or
(iv) an authorised representative of an entity mentioned in
subparagraph (i), (ii) or (iii); and
(b) is only general advice in relation to a financial product that
is, or a class of financial products that includes, a financial
product that is:
(i) issued by the providing entity or a related body
corporate of the providing entity; or
(ii) offered by the providing entity; and
(c) is not provided during a meeting; and
(d) is not provided during a telephone call, unless:
(i) the advice:
(A) concerns a class of financial products that
includes a financial product already held by the
client; and
(B) is provided by the providing entity for that
financial product; or
(ii) there is no issue or sale of any financial product during
the telephone call.
Note: The providing entity must meet obligations under the Act in relation
to the telephone call such as the prohibition of hawking in
sections 992A and 992AA of the Act and the requirements for Product
Disclosure Statements in Part 7.9 of the Act.
(4A) If general advice is provided during a telephone call in accordance
with paragraph (4)(d), the providing entity must tell the client that:
(a) a Financial Services Guide exists; and
(b) the provider will send out a Financial Services Guide on
request.
(5) If subregulation (4) applies and the providing entity does not give a
Financial Services Guide to the client when the advice is provided,
the providing entity must give to the client:
(a) the information that would be required to be in the Financial
Services Guide by paragraphs 942B(2)(a), (e) and (f) of the
Act; or
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 2 Financial Services Guide
Regulation 7.7.02
6 Corporations Regulations 2001
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(b) the information that would be required to be in the Financial
Services Guide by paragraphs 942C(2)(a), (c), (f) and (g) of
the Act;
as the case requires.
Note: If general advice is provided to 1 or more retail clients, the providing
entity must comply with section 949A of the Act.
(5A) For subsection 941C(8) of the Act, a Financial Services Guide does
not have to be given to a client in the following circumstances:
(a) the advice is provided in circumstances in which
section 1018A of the Act applies or will apply at the end of
the transition period;
(b) the advice is only general advice in relation to a financial
product that is, or a class of financial products that includes,
a financial product issued by the product issuer;
(c) the advice is in the form of advertising the financial product:
(i) on a billboard or a poster; or
(ii) in the media within the meaning of
subregulation 7.6.01(7);
(d) the advertisement indicates that a person should consider
whether or not the product is appropriate for the person.
(5B) For subsection 941C(8) of the Act, a Financial Services Guide does
not have to be given to a client in the following circumstances:
(a) the providing entity is an issuer of derivatives that are able to
be traded on a financial market;
(b) the financial service is a dealing (within the meaning of
section 766C of the Act) in a derivative by the providing
entity;
(c) at the time of the dealing, the providing entity is not a
participant in the financial market on which the particular
derivative may be traded;
(d) the only financial service that the providing entity provides to
the client is the issuing of the derivative.
(6) In this regulation:
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Financial Services Guide Division 2
Regulation 7.7.02A
Corporations Regulations 2001 7
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product distributor means a licensee that offers a financial product
for sale.
(7) If:
(a) a financial service is provided by a person (the secondary
service provider) to a client by causing or authorising another
person (the intermediary) to provide or pass on the service;
and
(b) but for the operation of section 52 of the Act, the secondary
service provider would not be taken to be providing the
financial service to the client; and
(c) the intermediary does not act on behalf of the secondary
service provider in providing or passing on the service for the
secondary service provider (see section 911B of the Act); and
(d) the intermediary is a financial services licensee or an
authorised representative of a financial services licensee; and
(e) the secondary service provider has a written agreement with
the intermediary under which the intermediary agrees to
either:
(i) give the secondary service provider’s Financial Services
Guide relating to the financial service provided by the
secondary service provider to the client; or
(ii) inform the client how to obtain the secondary service
provider’s Financial Services Guide relating to the
financial service provided by the secondary service
provider;
then, for subsection 941C(8) of the Act, the secondary service
provider does not have to give the client a Financial Services
Guide for the financial service.
7.7.02A Situations when Financial Services Guide is not required
(1) For paragraph 951C(1)(c) of the Act, section 941C of the Act is
modified by inserting after subsection 941C(1) the following
subsection:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 2 Financial Services Guide
Regulation 7.7.02A
8 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
“(1A) The providing entity does not have to give the client a Financial
Services Guide if the client has already received the documents
referred to in paragraphs (7A)(b) and (c), in the circumstances set
out in that subsection, that together contain all of the information
that the new Financial Services Guide is required to contain.”
(2) For paragraph 951C(1)(c) of the Act, section 941C of the Act is
modified by inserting after subsection 941C(7) the following
subsections:
“(7A) The providing entity does not have to give the client a Financial
Services Guide in the following circumstances:
(a) if the providing entity will, or is likely to, provide a financial
service to the client in a recommendation situation (see
section 1012A), an issue situation (see section 1012B) or a
sale situation (see section 1012C);
(b) the providing entity gives to the client a Product Disclosure
Statement;
(c) the providing entity gives to the client a statement that:
(i) contains so much of the information required by
section 942B or 942C (as the case may be), and any
regulations made for the purposes of the appropriate
section, as is not already set out in the Product
Disclosure Statement; and
(ii) complies with the requirements set out in
subsection (7B);
(d) the statements mentioned in paragraphs (b) and (c) are given
at the same time.
(7B) The statement referred to in paragraph (7A)(c) must:
(a) be up to date as at the time it is given to the client; and
(b) may contain information apart from that referred to in
subparagraph (7A)(c)(i); and
(c) meet the requirements of subsections 942B(3) and (6A) or
subsections 942C(3) and (6A) (as the case may be).”
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Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Financial Services Guide Division 2
Regulation 7.7.03
Corporations Regulations 2001 9
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7.03 Financial Services Guide given by financial services licensee:
description of documents
(1) For paragraph 942B(2)(k) of the Act, the Financial Services Guide
given by a financial services licensee must include a statement that:
(a) describes the purpose and content of the Financial Services
Guide; and
(b) if appropriate:
(i) informs the client that the client may also receive either
or both of a Statement of Advice and a Product
Disclosure Statement; and
(ii) describes the purpose and content of those documents.
(2) In describing the purpose and content of the Financial Services
Guide as mentioned in subregulation (1), the client’s attention must
be drawn to the following matters:
(a) the Guide is designed to assist the client in deciding whether
to use any of the services offered in the Guide;
(b) the Guide contains information about remuneration that may
be paid to the financial services licensee and other relevant
persons in relation to the services offered;
(c) the Guide contains information on how complaints against
the financial services licensee are dealt with.
(3) In describing the purpose and content of a Statement of Advice or
Product Disclosure Statement, the client’s attention must be drawn
to a description of the circumstances in which the Statement of
Advice or Product Disclosure Statement will be given.
(4) Subregulations (2) and (3) do not prevent the statement required
under subregulation (1) from drawing attention to other matters
relating to the purpose and content of the Financial Services Guide,
the Statement of Advice or the Product Disclosure Statement.
(5) The statement required under subregulation (1) must be:
(a) presented in a manner that is easy for the client to
understand; and
(b) displayed prominently in the Financial Services Guide.
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Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 2 Financial Services Guide
Regulation 7.7.03A
10 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(6) A statement is displayed prominently if it:
(a) appears at, or close to, the front of the Financial Services
Guide; and
(b) stands out from the other information contained in the Guide.
Note: Ideally, the statement should be placed:
(a) on the inside cover or inside facing page of a paper-based Financial Services Guide form; or
(b) in an equivalent position of a Financial Services Guide that is not provided in a paper-based form.
7.7.03A Financial Services Guide given by financial services
licensee: compensation arrangements
(1) For paragraph 942B(2)(k) of the Act, the Financial Services Guide
given by a financial services licensee must include a statement
about:
(a) the kind of compensation arrangements that the licensee has
in place; and
(b) whether those arrangements satisfy the requirements for
compensation arrangements under section 912B of the Act.
(2) This regulation commences, for a particular financial services
licensee, on the date that subregulations 7.6.02AAA(1), (2) and (3)
take effect for that licensee.
7.7.04 Financial Services Guide given by financial services licensee:
remuneration, commission and benefits
(1) For paragraph 942B(2)(k) of the Act, the Financial Services Guide
given by a financial services licensee must include information, to
the extent that the information is able to be ascertained at the time
the Financial Services Guide is given to the client, about all
remuneration (including commission) and other benefits that a
person (person 1) has received, or is to receive, for referring
another person to the financial services licensee.
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Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Financial Services Guide Division 2
Regulation 7.7.04
Corporations Regulations 2001 11
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Overview of regulation
(2) For paragraph 942B(4)(c) of the Act, the information required in
particular situations by paragraph 942B(2)(e) in relation to persons
mentioned in paragraph 942B(2)(e) or person 1 (see
subregulation (1)) is as set out in subregulations (3), (4) and (5).
If remuneration is ascertainable at the time FSG is given
(3) The following information is required if the remuneration,
commission or other benefits are able to be worked out at the time
the Financial Services Guide is given to the client:
(a) in a case where the remuneration, commission or other
benefits are to be received by a person who is a licensed
trustee company, either:
(i) the remuneration, commission or other benefits; or
(ii) the remuneration, commission or other benefits stated as
a percentage of the income from the estate or as a
percentage of the capital value of the estate;
(b) in any other case—the remuneration, commission or other
benefits.
If remuneration is not ascertainable at the time FSG is given and
personal advice will be given
(4) If:
(a) the remuneration (including commission) or other benefits
are not able to be ascertained at the time the Financial
Services Guide is given to the client; and
(b) the providing entity reasonably believes that personal advice
will be given to the client;
the following information is required:
(c) either:
(i) particulars of the remuneration (including commission)
or other benefits, including, to the extent relevant, a
statement of the range of amounts or rates of
remuneration (including commission) or other benefits;
or
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Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 2 Financial Services Guide
Regulation 7.7.04
12 Corporations Regulations 2001
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(ii) general information about the remuneration (including
commission) or other benefits and the manner in which
the remuneration (including commission) or other
benefits are to be calculated;
(d) a statement that:
(i) if the remuneration (including commission) or other
benefits are calculable at the time the personal advice is
given, the remuneration (including commission) or
other benefits the person receives on specific financial
products to which the personal advice relates will be
disclosed at the time the personal advice is given or as
soon as practicable after that time; or
(ii) if the remuneration (including commission) or other
benefits are not calculable at the time the personal
advice is given, the manner in which the remuneration
(including commission) or other benefits are to be
calculated will be disclosed at the time the personal
advice is given or as soon as practicable after that time.
If remuneration is not ascertainable at the time FSG is given and
personal advice will not be given
(5) If:
(a) the remuneration (including commission) or other benefits
are not able to be ascertained at the time the Financial
Services Guide is given to the client; and
(b) the providing entity reasonably believes that personal advice
will not be given to the client;
the following information is required:
(c) particulars of the remuneration (including commission) or
other benefits, including, to the extent relevant, a statement
of the range of amounts or rates of remuneration (including
commission) or other benefits; or
(d) both of the following:
(i) general information about the remuneration (including
commission) or other benefits and the manner in which
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Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Financial Services Guide Division 2
Regulation 7.7.04A
Corporations Regulations 2001 13
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
the remuneration (including commission) or other
benefits are to be calculated;
(ii) a statement that the client may request particulars of the
remuneration (including commission) or other benefits
but that the request must be made within a reasonable
time after the client is given the Financial Services
Guide and before any financial service identified in the
Guide is provided to the client.
7.7.04A Financial services guide given by financial services licensee:
more detailed information about remuneration etc
(1) For subsection 942B(7) of the Act, if:
(a) the remuneration (including commission) or other benefits
that a person mentioned in paragraph 942B(2)(e) or person 1
in subregulation 7.7.04(1) has received, or is to receive, are
not able to be ascertained at the time the Financial Services
Guide is given to the client; and
(b) the providing entity reasonably believes that personal advice
will not be given to the client; and
(c) the Financial Services Guide does not contain particulars of
the remuneration (including commission) or other benefits;
the client may request, from the financial services licensee,
particulars of the remuneration (including commission) or other
benefits.
(2) A request under subregulation (1) must be made within a
reasonable time after the client is given the Financial Services
Guide and before any financial service identified in the Guide is
provided to the client.
(3) For subregulation (1), the particulars must, to the extent relevant,
include a statement of the range of amounts or rates of
remuneration (including commission) or other benefits.
Examples:
1 Remuneration is paid within the range of $X to $Y.
2 Commission is paid at rates between X% and Y%.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 2 Financial Services Guide
Regulation 7.7.04AA
14 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) The particulars mentioned in subregulation (3) must be presented
in a manner that is easy for the client to understand.
7.7.04AA Financial Services Guide given by financial services
licensee: non-monetary benefit that is not conflicted
remuneration
(1) This regulation is made for paragraph 942B(4)(b) of the Act.
(2) Information about a non-monetary benefit that, in accordance with
paragraph 963C(b) of the Act, is not conflicted remuneration is not
required by paragraph 942B(2)(e) of the Act.
Note: Under paragraph 963C(b) of the Act, if a non-monetary benefit is
given to a financial services licensee, or a representative of a financial
services licensee, who provides financial advice, is less than the
prescribed amount and identical or similar benefits are not given on a
frequent or regular basis, the benefit is not conflicted remuneration.
7.7.04AB Financial Services Guide given by authorised
representative: non-monetary benefit that is not
conflicted remuneration
(1) This regulation is made for paragraph 942C(4)(b) of the Act.
(2) Information about a non-monetary benefit that, in accordance with
paragraph 963C(b) of the Act, is not conflicted remuneration is not
required by paragraph 942C(2)(f) of the Act.
Note: Under paragraph 963C(b) of the Act, if a non-monetary benefit is
given to a financial services licensee, or a representative of a financial
services licensee, who provides financial advice, is less than the
prescribed amount and identical or similar benefits are not given on a
frequent or regular basis, the benefit is not conflicted remuneration.
7.7.05 Record of advice given by financial services licensee
For subparagraph 942B(2)(g)(iii) of the Act, the period within
which a client may request a record of the advice to which that
subparagraph relates is 7 years after the day on which the advice is
provided.
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Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Financial Services Guide Division 2
Regulation 7.7.05A
Corporations Regulations 2001 15
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7.7.05A Financial Services Guide given by authorised representative
of financial services licensee: authorised representative
number
(1) For paragraph 942C(2)(m) of the Act, the Financial Services Guide
given by an authorised representative must include the authorised
representative number allocated by ASIC to the authorised
representative.
(2) Subregulation (1) does not apply to a Financial Services Guide to
which regulation 7.7.05B applies.
7.7.05B Personalised Financial Services Guide
(1) This regulation applies if:
(a) a financial services licensee; or
(b) an authorised representative (the authoriser) of a financial
services licensee;
authorises an individual to provide financial services on behalf of
the licensee.
(2) For paragraph 942C(4)(b) of the Act, the Financial Services Guide
in relation to a financial service does not have to include the
information in paragraph 942C(2)(a) of the Act, in respect of the
individual, if:
(a) the financial service is dealing in a financial product or the
provision of general advice or both; and
(b) the individual provides the financial service in accordance
with the authorisation; and
(c) the licensee has reasonable grounds to believe that the
identity or remuneration of the individual would not be
material to a decision by a retail client whether or not to
obtain the financial service; and
(d) the Financial Services Guide includes:
(i) the contact details and licence number of the licensee;
and
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Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 2 Financial Services Guide
Regulation 7.7.05B
16 Corporations Regulations 2001
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(ii) a statement setting out, in general terms, the individual’s
role and capacity in providing the financial service.
(2A) For paragraph 942C(4)(b) of the Act, the Financial Services Guide
in relation to a financial service does not have to include a
statement setting out the name and contact details of a person if:
(a) the person is:
(i) a franchisee of the holder of an Australian financial
services licence (the franchisor) and a corporate
authorised representative of the franchisor; or
(ii) an employee of a franchisee of the holder of an
Australian financial services licence; and
(b) the franchisor is an authorised deposit-taking institution
(within the meaning of the Banking Act 1959) and regulated
by APRA; and
(c) the franchise agreement:
(i) subjects the person to the policies of the franchisor; and
(ii) requires compliance by the person with the policies of
the franchisor that were made to give effect to the
franchisor’s obligations under the Australian financial
services licence; and
(d) the Financial Services Guide produced by the franchisor
explains that the franchisor takes responsibility for the
services provided by the person.
(3) For paragraph 942C(4)(b) of the Act, the Financial Service Guide
in relation to a financial service does not have to include the
information in paragraph 942C(2)(a) of the Act, in respect of an
authoriser, if:
(a) the financial service is dealing in a financial product or the
provision of general advice or both; and
(b) the authoriser provides the financial service in accordance
with the authorisation; and
(c) the licensee has reasonable grounds to believe that the
identity or remuneration of the authoriser would not be
material to a decision by a retail client whether or not to
obtain the financial service; and
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Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Financial Services Guide Division 2
Regulation 7.7.05C
Corporations Regulations 2001 17
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(d) the Financial Services Guide includes:
(i) the contact details and licence number of the licensee;
and
(ii) a statement setting out, in general terms, the authoriser’s
role and capacity in providing the financial service.
Note: The Financial Services Guide will contain all information otherwise
required by section 942C of the Act.
7.7.05C Exemption from providing certain information in a
Financial Services Guide
(1) For paragraph 942B(4)(b) of the Act, for a Financial Services
Guide:
(a) information is not required by paragraph 942B(2)(c) of the
Act about a financial service to which subsection 941C(6) of
the Act applies; and
(b) information is not required by paragraph 942B(2)(e) of the
Act in relation to remuneration (including commission) or
other benefits that are received only in respect of, or that are
only attributable to, a financial service to which
subsection 941C(6) of the Act applies.
(2) For paragraph 942C(4)(b) of the Act, for a Financial Services
Guide:
(a) information is not required by paragraph 942C(2)(d) of the
Act, about a financial service to which subsection 941C(6) of
the Act applies; and
(b) information is not required by paragraph 942C(2)(f) of the
Act, in relation to remuneration (including commission) or
other benefits that are received only in respect of, or that are
only attributable to, a financial service to which
subsection 941C(6) of the Act applies.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 2 Financial Services Guide
Regulation 7.7.06
18 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7.06 Financial Services Guide given by authorised representative of
financial services licensee: description of documents
(1) For paragraph 942C(2)(m) of the Act, the Financial Services Guide
given by an authorised representative must include a statement
that:
(a) describes the purpose and content of the Financial Services
Guide; and
(b) if appropriate:
(i) informs the client that the client may also receive either
or both of a Statement of Advice and a Product
Disclosure Statement; and
(ii) describes the purpose and content of those documents.
(2) In describing the purpose and content of the Financial Services
Guide as mentioned in subregulation (1), the client’s attention must
be drawn to the following matters:
(a) the Guide is designed to assist the client in deciding whether
to use any of the services offered in the Guide;
(b) the Guide contains information about remuneration that may
be paid to the authorised representative and other relevant
persons in relation to the services offered;
(c) the Guide contains information on how complaints against
the authorised representative are dealt with.
(3) In describing the purpose and content of a Statement of Advice or
Product Disclosure Statement, the client’s attention must be drawn
to a description of the circumstances in which the Statement of
Advice or Product Disclosure Statement will be given.
(4) Subregulations (2) and (3) do not prevent the statement required
under subregulation (1) from drawing attention to other matters
relating to the purpose and content of the Financial Services Guide,
the Statement of Advice or the Product Disclosure Statement.
(5) The statement required under subregulation (1) must be:
(a) presented in a manner that is easy for the client to
understand; and
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Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Financial Services Guide Division 2
Regulation 7.7.06A
Corporations Regulations 2001 19
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) displayed prominently in the Financial Services Guide.
(6) A statement is displayed prominently if it:
(a) appears at, or close to, the front of the Financial Services
Guide; and
(b) stands out from the other information contained in the Guide.
Note: Ideally, the statement should be placed:
(a) on the inside cover or inside facing page of a paper-based Financial Services Guide form; or
(b) in an equivalent position of a Financial Services Guide that is not provided in a paper-based form.
7.7.06A Financial Services Guide given by authorised representative
of financial services licensee—licence number
For paragraph 942C(2)(m) of the Act, a providing entity that is an
authorised representative of a financial services licensee must
include the licensee’s licence number in a Financial Services Guide
given to a client.
7.7.06B Financial Services Guide given by authorised representative
of financial services licensee: compensation arrangements
(1) For paragraph 942C(2)(m) of the Act, the Financial Services Guide
given by the authorised representative of a financial services
licensee must include a statement about:
(a) the kind of compensation arrangements that the licensee has
in place; and
(b) whether those arrangements satisfy the requirements for
compensation arrangements under section 912B of the Act.
(2) This regulation commences, for a particular authorised
representative, on the date that subregulations 7.6.02AAA(1), (2)
and (3) take effect for the financial services licensee for whom he
or she is a representative.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 2 Financial Services Guide
Regulation 7.7.07
20 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7.07 Financial Services Guide given by authorised representative of
financial services licensee: remuneration, commission and
benefits
(1) For paragraph 942C(2)(m) of the Act, the Financial Services Guide
given by an authorised representative of a financial services
licensee must include information, to the extent that the
information is able to be ascertained at the time the Financial
Services Guide is given to the client, about all remuneration
(including commission) and other benefits that a person (person 1)
has received, or is to receive, for referring another person to:
(a) the authorised representative; or
(b) the financial services licensee.
Overview of regulation
(2) For paragraph 942C(4)(c) of the Act, the information required in
particular situations by paragraph 942C(2)(f) in relation to persons
mentioned in paragraph 942C(2)(f) or person 1 (see
subregulation (1)) is as set out in subregulations (3), (4) and (5).
If remuneration is ascertainable at the time FSG is given
(3) The following information is required if the remuneration,
commission or other benefits are able to be worked out at the time
the Financial Services Guide is given to the client:
(a) in a case where the remuneration, commission or other
benefits are to be received by a person who is a licensed
trustee company, either:
(i) the remuneration, commission or other benefits; or
(ii) the remuneration, commission or other benefits stated as
a percentage of the income from the estate or as a
percentage of the capital value of the estate;
(b) in any other case—the remuneration, commission or other
benefits.
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Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Financial Services Guide Division 2
Regulation 7.7.07
Corporations Regulations 2001 21
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
If remuneration is not ascertainable at the time FSG is given and
personal advice will be given
(4) If:
(a) the remuneration (including commission) or other benefits
are not able to be ascertained at the time the Financial
Services Guide is given to the client; and
(b) the providing entity reasonably believes that personal advice
will be given to the client;
the following information is required:
(c) either:
(i) particulars of the remuneration (including commission)
or other benefits, including, to the extent relevant, a
statement of the range of amounts or rates of
remuneration (including commission) or other benefits;
or
(ii) general information about the remuneration (including
commission) or other benefits and the manner in which
the remuneration (including commission) or other
benefits are to be calculated;
(d) a statement that:
(i) if the remuneration (including commission) or other
benefits are calculable at the time the personal advice is
given, the remuneration (including commission) or
other benefits the person receives on specified financial
products to which the personal advice relates will be
disclosed at the time the personal advice is given or as
soon as practicable after that time; or
(ii) if the remuneration (including commission) or other
benefits are not calculable at the time the personal
advice is given, the manner in which the remuneration
(including commission) or other benefits are to be
calculated will be disclosed at the time the personal
advice is given or as soon as practicable after that time.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 2 Financial Services Guide
Regulation 7.7.07A
22 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
If remuneration is not ascertainable at the time FSG is given and
personal advice will not be given
(5) If:
(a) the remuneration (including commission) or other benefits
are not able to be ascertained at the time the Financial
Services Guide is given to the client; and
(b) the providing entity reasonably believes that personal advice
will not be given to the client;
the following information is required:
(c) particulars of the remuneration (including commission) or
other benefits, including, to the extent relevant, a statement
of the range of amounts or rates of remuneration (including
commission) or other benefits; or
(d) both of the following:
(i) general information about the remuneration (including
commission) or other benefits and the manner in which
the remuneration (including commission) or other
benefits are to be calculated;
(ii) a statement that the client may request particulars of the
remuneration (including commission) or other benefits
but that the request must be made within a reasonable
time after the client is given the Financial Services
Guide and before any financial service identified in the
Guide is provided to the client.
7.7.07A Financial services guide given by authorised representative:
more detailed information about remuneration etc
(1) For subsection 942C(7) of the Act, if:
(a) the remuneration (including commission) or other benefits
that a person mentioned in paragraph 942C(2)(f) or person 1
in subregulation 7.7.07(1) has received, or is to receive, are
not able to be ascertained at the time the Financial Services
Guide is given to the client; and
(b) the providing entity reasonably believes that personal advice
will not be given to the client; and
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Financial services and markets Chapter 7
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Financial Services Guide Division 2
Regulation 7.7.08
Corporations Regulations 2001 23
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) the Financial Services Guide does not contain particulars of
the remuneration (including commission) or other benefits;
the client may request, from the authorised representative,
particulars of the remuneration (including commission) or other
benefits.
(2) A request under subregulation (1) must be made within a
reasonable time after the client is given the Financial Services
Guide and before any financial service identified in the Guide is
provided to the client.
(3) For subregulation (1), the particulars must, to the extent relevant,
include a statement of the range of amounts or rates of
remuneration (including commission) or other benefits.
Examples:
1 Remuneration is paid within the range of $X to $Y.
2 Commission is paid at rates between X% and Y%.
(4) The particulars mentioned in subregulation (3) must be presented
in a manner that is easy for the client to understand.
7.7.08 Record of advice given by authorised representative of
financial services licensee
For subparagraph 942C(2)(h)(iii) of the Act, the period within
which a client may request a record of the advice to which that
subparagraph relates is 7 years after the day on which the advice is
provided.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 2A Combined Financial Services Guide and Product Disclosure Statement
Regulation 7.7.08A
24 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2A—Combined Financial Services Guide and
Product Disclosure Statement
7.7.08A Combined Financial Services Guide and Product Disclosure
Statement
(1) For subsection 942DA(1) of the Act, this regulation specifies the
circumstances in which a Financial Services Guide and a Product
Disclosure Statement may be combined in a single document.
(1A) This regulation does not apply if the Product Disclosure Statement
is for an FHSA product.
(1A) This regulation does not apply if the Product Disclosure Statement
is for an FHSA product.
(1B) This regulation does not apply if the Product Disclosure Statement
is for a margin loan.
(1C) This regulation does not apply if the Product Disclosure Statement
is for a superannuation product to which Subdivision 4.2B of
Division 4 of Part 7.9 applies.
(1D) This regulation does not apply if the Product Disclosure Statement
is for a simple managed investment scheme to which
Subdivision 4.2C of Division 4 of Part 7.9 applies.
(2) A combined Financial Services Guide and Product Disclosure
Statement may be issued as a single document if:
(a) the providing entity for the financial service and the product
issuer for a product issued in relation to that financial service
are the same person; and
(b) the document is divided into 2 separate parts:
(i) a part identifiable as a Financial Services Guide that
satisfies the requirements under the Act for a Financial
Services Guide; and
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Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Combined Financial Services Guide and Product Disclosure Statement Division 2A
Regulation 7.7.08A
Corporations Regulations 2001 25
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) a part identifiable as a Product Disclosure Statement
that satisfies the requirements for a Product Disclosure
Statement; and
(c) the title ‘Combined Financial Services Guide and Product
Disclosure Statement’ is marked on or near the front of the
document; and
(d) the document is provided to a client at the earlier of the time
at which a Financial Services Guide must be provided and
the time at which a Product Disclosure Statement must be
provided.
(3) A combined Financial Services Guide and Product Disclosure
Statement may be issued as a single document if:
(a) the providing entity for the financial service is a
representative or a related body corporate of the product
issuer; and
(b) the product is only a basic deposit product, a non-cash
payment facility that is related to a basic deposit product, a
general insurance product or a life risk insurance product;
and
(c) the document is divided into 2 separate parts:
(i) a part identifiable as a Financial Services Guide that
satisfies the requirements under the Act for a Financial
Services Guide; and
(ii) a part identifiable as a Product Disclosure Statement
that satisfies the requirements for a product Disclosure
Statement; and
(d) the title ‘Combined Financial Services Guide and Product
Disclosure Statement’ is marked on or near the front of the
document; and
(e) the document clearly and prominently discloses:
(i) the identity of the providing entity and the product
issuer; and
(ii) the nature of the relationship between the providing
entity and the product issuer; and
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Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 2A Combined Financial Services Guide and Product Disclosure Statement
Regulation 7.7.08A
26 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(iii) the liability of the providing entity and the product
issuer in relation to the document; and
(f) the document is provided to a client at the earlier of the time
at which a Financial Services Guide must be provided and
the time at which a Product Disclosure Statement must be
provided.
(4) For the single document:
(a) the Financial Services Guide and the Product Disclosure
Statement may provide for matters by the use of
cross-references to each other rather than by fully setting out
material; and
(b) if the document includes cross-references:
(i) the document as a whole must include all of the
information required by subsections 942B(6A) and
1013C(3) of the Act; and
(ii) the use of the cross-references must not have the effect
that the document is misleading or deceptive.
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Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Combined Financial Services Guide and credit guide Division 2AA
Regulation 7.7.08B
Corporations Regulations 2001 27
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2AA—Combined Financial Services Guide and
credit guide
7.7.08B Modification of section 942DA of the Act
(1) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if section 942DA of the Act were modified by substituting the
heading of the section with the following section heading and
subsection heading:
‘942DA Combining a Financial Services Guide and another
instrument
Financial Services Guide and a Product Disclosure Statement’.
(2) Part 7.7 of the Act applies as if section 942DA of the Act were also
modified by inserting after subsection (3) the following subsection
heading and subsections:
‘Financial Services Guide and a credit guide
(4) If:
(a) a person:
(i) is:
(A) a financial services licensee; or
(B) an authorised representative of a financial
services licensee; and
(ii) is required to give a Financial Services Guide to a client
under this Act; and
(b) the person:
(i) either:
(A) holds an Australian credit licence under the
National Consumer Credit Protection Act 2009;
or
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Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 2AA Combined Financial Services Guide and credit guide
Regulation 7.7.08B
28 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(B) is a credit representative (within the same
meaning as in the National Consumer Credit
Protection Act 2009); and
(ii) is required to give a credit guide to a consumer under
that Act;
the person may combine the Financial Services Guide and credit
guide in a single document.
(5) If the person combines the Financial Services Guide and credit
guide in a single document, any statements or information to be
included in the credit guide that are identical to statements or
information to be included in the Financial Services Guide need
only be included once.’
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Record of small investment advice Division 2B
Regulation 7.7.08C
Corporations Regulations 2001 29
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2B—Record of small investment advice
7.7.08C Record of small investment advice—content requirements
(1) For subsection 946AA(4) of the Act, a record of advice to a client
must set out:
(a) the matters set out in subregulation (2); and
(b) the information that, if a Statement of Advice were to be
given, would be required in that statement by paragraphs
947B(2)(d) and (e) of the Act or paragraphs 947C(2)(e) and
(f) of the Act.
(2) For paragraph (1)(a), the matters that the record of advice must set
out are:
(a) brief particulars of the recommendations made to the client
and the basis on which the recommendations are made; and
(b) brief particulars of the information that would be required by
subsection 947D(2) of the Act if a Statement of Advice were
given to the client; and
(c) the statement that would be required by subsection 947D(3)
of the Act if a Statement of Advice were given to the client.
Note: A client is entitled to ask the providing entity for a record of advice
and the providing entity must give a copy of the record of advice to
the client—see paragraph 946AA(5)(a) of the Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.09
30 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 3—Statement of Advice
7.7.09 Situations in which statement of advice is not required:
further advice
(1) For subsection 946B(3A) of the Act, a record of advice must set
out:
(a) the following:
(i) the advice given to the client by the providing entity;
(ii) if information or a statement required by
subsections 947D(2) and (3) is given—the information
and statement; or
(b) the following:
(i) brief particulars of the recommendations made and the
basis on which the recommendations are made;
(ii) if information under subsection 947D(2) is given—brief
particulars of the information;
(iii) if a statement under subsection 947D(3) is given—an
acknowledgement that the statement has been given.
(2) The providing entity may keep the record in any form, for
example, a tape recording.
(3) The providing entity must keep the record for 7 years after the day
on which the further advice is provided.
7.7.09A Situations in which Statement of Advice is not required:
small investments threshold
(1) For subparagraph 946AA(1)(a)(i) of the Act, the threshold amount
is $15 000.
(2) Subregulations (3) and (4) apply to each of the following financial
products:
(a) shares;
(b) rights issues;
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Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.09A
Corporations Regulations 2001 31
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) options over unissued shares;
(d) partly paid shares;
(e) debentures;
(f) stapled securities.
(3) For small investment advice to a client that is related to the
acquisition of one or more of the financial products listed in
paragraphs (2)(a) to (f), the threshold amount in subregulation (1)
must be calculated to include the total value of all financial
investments that would be committed to by the client if the advice
were accepted by the client.
Examples:
1 If the small investment advice related to the purchase of options over
unissued shares the total cost of the options would be both the cost to
buy the options and the cost of the exercise price on the face of the
options.
2 If the small investment advice relates to the purchase of partly paid
shares the total cost of the shares must be calculated as if all calls had
been made on the shares.
Note: The total value of all financial investments in relation to which small
investment advice is provided is calculated in accordance with
subsection 946AA(2) of the Act.
(4) For small investment advice to a client that is related to the
disposal of one or more of the financial products listed in
paragraphs (2)(a) to (f), the threshold amount in subregulation (1)
must be calculated to include the total value of all financial
investments that would be disposed of by the client if the advice
were accepted by the client.
Note: The total value of all financial investments in relation to which small
investment advice is provided is calculated in accordance with
subsection 946AA(2) of the Act.
(5) Subregulations (6) and (7) apply to each of the following financial
products:
(a) superannuation;
(b) managed investment schemes;
(c) non-derivative instalment warrants.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.09A
32 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(6) For small investment advice to a client that is related to the
acquisition of one or more of the financial products listed in
paragraphs (5)(a) to (c), the threshold amount in subregulation (1)
must be calculated to include:
(a) both:
(i) the cost to the client of the initial investment; and
(ii) other amounts that would be committed to by the client
if the advice is taken; and
(b) if the investment is not finite—the value of the investment is
calculated for the 12-month period beginning from the date
that the record of advice is required by subregulation (10),
(11) or (12) to be given to the client.
Examples:
1 Advice given in relation to switching superannuation funds
A person earning $50 000 per annum is given advice to switch an
existing superannuation fund balance of $12 000 to another
superannuation fund and direct all future superannuation guarantee
contributions to that same fund. In this event the total of the
superannuation guarantee contributions in the first 12-month period
(ie $50 000 × 0.09 = $4 500) when added to the initial $12 000
transfer, would exceed the $15 000 threshold. In this example the
exemption, in section 946AA of the Act, from the requirement to
provide a Statement of Advice would not apply.
2 Advice given to acquire non-derivative instalment warrants
The terms of the non-derivative instalment warrants are that $10 000
must be paid initially, a second payment of $12 000 in 18 months time
and a third and final payment of $12 000 in 3 years time. The
investment advice, assuming the client has committed to
implementing the advice, concerns a $34 000 investment and therefore
the exemption, in section 946AA of the Act, from the requirement to
provide a Statement of Advice would not apply.
Note: The total value of all financial investments in relation to which small
investment advice is provided is calculated in accordance with
subsection 946AA(2) of the Act.
(7) For small investment advice to a client that is related to the
disposal of one or more of the financial products listed in
paragraphs (5)(a) to (c), the threshold amount in subregulation (1)
must be calculated to include:
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Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.09A
Corporations Regulations 2001 33
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the value to the client of the total divestment; and
(b) other amounts reasonably related to the divestment that
would be expended if the advice is taken.
Note: The total value of all financial investments in relation to which small
investment advice is provided is calculated in accordance with
subsection 946AA(2) of the Act.
(8) If the total value of an investment, to which investment advice to a
client relates, is not able to be ascertained under
subsection 946AA(2) of the Act, the investment advice is taken to
exceed the threshold amount in subregulation (1).
(9) If an investment, to which investment advice relates, is jointly held
by more than 1 client, the sum of the values of each client’s
investment must be calculated to determine whether the threshold
amount in subregulation (1) is exceeded.
When record of advice is given
(10) For subsection 946AA(4) of the Act, a record of advice is required
to be given to a client when, or as soon as practicable after,
investment advice is provided to the client and, in any event,
subject to subregulation (12), before the providing entity provides
the client with any further financial service that arises out of or in
connection with the investment advice.
Statement of certain information if record of advice not given when
advice provided
(11) If the record of advice is not given to the client when the
investment advice is provided, the providing entity must, at the
time the investment advice is provided, give the client a statement
that contains the information that would be required to be in a
Statement of Advice by:
(a) paragraphs 947B(2)(d) and (e) of the Act; or
(b) paragraphs 947C(2)(e) and (f) of the Act;
as the case requires, and by section 947D of the Act, if applicable.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.09AA
34 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Time-critical cases
(12) If:
(a) a client expressly instructs that they require a further
financial service to be provided immediately, or by a
specified time; and
(b) the further financial service arises out of, or in connection
with, the investment advice given to the client; and
(c) it is not reasonably practicable to give a record of advice to
the client before the further service is provided as so
instructed;
the providing entity must give the client the record of advice:
(d) unless paragraph (e) applies—within 5 days after providing
the further service, or as soon as practicable; or
(e) if the further financial service is the provision to the client of
a financial product and section 1019B of the Act applies to
the acquisition of the product by the client—before the start
of the period applicable under subsection 1019B(3) of the
Act, or sooner if practicable.
7.7.09AA Statement of Advice from financial services licensee
(1) For paragraph 947B(2)(g) of the Act, a Statement of Advice given
by a financial services licensee in relation to a margin lending
facility, or a margin lending facility whose limit is proposed to be
increased, within the meaning of subsection 761EA(1) of the Act
must include the following information:
(a) whether the client has taken out a loan to fund the secured
property or transferred securities contributed by the client for
establishing the margin lending facility;
Note: This is sometimes referred to as ‘double gearing’.
(b) if a loan to fund the secured property or transferred securities
contributed by the client for establishing the margin lending
facility has been taken out—whether the security for the loan
includes the primary residential property of the client;
(c) whether there is a guarantor for the margin lending facility,
and, if so:
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.09AB
Corporations Regulations 2001 35
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) if the financial services licensee has the necessary
information—a statement as to whether the guarantor
has been appropriately informed of, and warned about,
the risks and possible consequences of providing the
guarantee; or
(ii) if the financial services licensee does not have the
necessary information—a statement that the financial
services licensee does not have the information;
(d) the amount of any other debt incurred by the client;
(e) any other matter that ASIC has specified in a legislative
instrument for subregulation (2).
(2) ASIC may specify in a legislative instrument any matter ASIC
considers to be relevant for the purpose of establishing whether the
margin lending facility, or the margin lending facility with the
increased limit, is unsuitable for the client.
7.7.09AB Modification of subsection 947B(4) of the Act
For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if subsection 947B(4) of the Act were modified by:
(a) substituting the full stop at the end of paragraph (c) with a
semi-colon; and
(b) inserting after paragraph (c) the following paragraph:
‘(d) that ASIC may specify in a legislative instrument matters
ASIC considers to be relevant for the purposes of
paragraph 947B(2)(g) of the Act.’
7.7.09B Statement of Advice from providing entity—information not
included in the Statement
(1) For paragraphs 947B(4)(b) and 947C(4)(b) of the Act, a providing
entity is not required to include a statement or information
mentioned in Part 7.7 of the Act in a Statement of Advice to the
client if the Statement of Advice:
(a) refers to the statement or information; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.09BA
36 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) provides sufficient details about the statement or information
to enable the client:
(i) to identify by a unique identifier the document, or part
of the document, that contains the statement or
information; and
(ii) to decide whether or not to read the statement or
information or obtain a copy of the statement or
information; and
(c) states that a copy of the statement or information may be
obtained from the providing entity on request, at no charge.
(2) Subject to subregulation (3), the providing entity must give the
client the document, or part of the document (whichever is
applicable), unless the providing entity has already given the
document or part of the document to the client.
(3) If the providing entity is an authorised representative of an
Australian financial services licensee, the document, or part of the
document (whichever is applicable), may be provided to the client:
(a) by another authorised representative appointed by and acting
on behalf of the licensee; or
(b) by the licensee.
(4) If the client requests a copy of a statement or information that the
providing entity is not required to include in accordance with
subregulation (1), the providing entity must provide the copy as
soon as practicable, at no charge.
(5) If a statement or information is not required to be included in a
Statement of Advice because of subregulation (1), the statement or
information is taken to be included in the Statement of Advice.
(6) The exemption in subregulation (1) does not apply to a statement
or information that is required by section 947D or 961H of the Act.
7.7.09BA Statement of Advice from authorised representative
(1) For paragraph 947C(2)(h) of the Act, a Statement of Advice given
by an authorised representative in relation to a margin lending
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.09BB
Corporations Regulations 2001 37
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
facility, or a margin lending facility whose limit is proposed to be
increased, within the meaning of subsection 761EA(1) of the Act
must include the following information:
(a) whether the client has taken out a loan to fund the secured
property or transferred securities contributed by the client for
establishing the margin lending facility;
Note: This is sometimes referred to as ‘double gearing’.
(b) if a loan to fund the secured property or transferred securities
contributed by the client for establishing the margin lending
facility has been taken out—whether the security for the loan
includes the primary residential property of the client;
(c) whether there is a guarantor for the margin lending facility,
and, if so:
(i) if the authorised representative has the necessary
information—a statement as to whether the guarantor
has been appropriately informed of, and warned about,
the risks and possible consequences of providing the
guarantee; or
(ii) if the authorised representative does not have the
necessary information—a statement that the authorised
representative does not have the information;
(d) the amount of any other debt incurred by the client;
(e) any other matter that ASIC has specified in a legislative
instrument for subregulation (2).
(2) ASIC may specify in a legislative instrument any matter ASIC
considers to be relevant for the purpose of establishing whether the
margin lending facility, or the margin lending facility with the
increased limit, is unsuitable for the client.
7.7.09BB Modification of subsection 947C(4) of the Act
For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if subsection 947C(4) of the Act were modified by:
(a) substituting the full stop at the end of paragraph (c) with a
semi-colon; and
(b) inserting after paragraph (c) the following paragraph:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.09BC
38 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
‘(d) that ASIC may specify in a legislative instrument matters
ASIC considers to be relevant for the purposes of
paragraph 947C(2)(h) of the Act.’
7.7.09BC Statement of Advice given by financial services licensee:
non-monetary benefit that is not conflicted remuneration
(1) This regulation is made for paragraph 947B(4)(b) of the Act.
(2) Information about a non-monetary benefit that, in accordance with
paragraph 963C(b) of the Act, is not conflicted remuneration is not
required by paragraph 947B(2)(d) of the Act.
Note: Under paragraph 963C(b) of the Act, if a non-monetary benefit is
given to a financial services licensee, or a representative of a financial
services licensee, who provides financial advice, is less than the
prescribed amount and identical or similar benefits are not given on a
frequent or regular basis, the benefit is not conflicted remuneration.
7.7.09BD Statement of Advice given by authorised representative:
non-monetary benefit that is not conflicted remuneration
(1) This regulation is made for paragraph 947C(4)(b) of the Act.
(2) Information about a non-monetary benefit that, in accordance with
paragraph 963C(b) of the Act, is not conflicted remuneration is not
required by paragraph 947C(2)(e) of the Act.
Note: Under paragraph 963C(b) of the Act, if a non-monetary benefit is
given to a financial services licensee, or a representative of a financial
services licensee, who provides financial advice, is less than the
prescribed amount and identical or similar benefits are not given on a
frequent or regular basis, the benefit is not conflicted remuneration.
7.7.09C Requirement to keep Statement of Advice and other
documents
A Statement of Advice and a document, or part of a document,
mentioned in the Statement, must be retained, by the providing
entity that gave the Statement, for 7 years after the day on which
the Statement is provided to the client.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.10
Corporations Regulations 2001 39
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7.10 Products for which a Statement of Advice is not required
For paragraph 946B(5)(c) of the Act, the following are prescribed:
(a) a deposit product that is a facility in relation to which:
(i) there is no minimum period before which funds cannot
be withdrawn or transferred from the facility without a
reduction in the return generated for the depositor; or
(ii) if there is such a period, it expires on or before the end
of the period of 2 years starting on the day on which
funds were first deposited in the facility;
(b) travellers’ cheques;
(c) a cash management trust interest;
(d) a motor vehicle insurance product (see regulation 7.1.11);
(e) a home building insurance product (see regulation 7.1.12);
(f) a home contents insurance product (see regulation 7.1.13);
(g) a travel insurance product (see regulation 7.1.16);
(h) a personal and domestic property insurance product (see
regulation 7.1.17);
(i) a general insurance product prescribed by regulations made
for the purposes of subparagraph 761G(5)(b)(viii) (see
regulation 7.1.17A);
(j) a capital guaranteed FHSA product.
7.7.10AA Obligation on authorised representative to give a financial
services guide
For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if subsection 941B(2) were omitted and the following subsection
were substituted:
“(2) A Financial Services Guide must not be given to the person by the
providing entity unless the authorising licensee, or each of the
authorising licensees, on whose behalf the providing entity
provides the financial services, has authorised its distribution by
the providing entity.”
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.10AAA
40 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7.10AAA Record of advice without a recommendation to purchase
or sell—content requirements
For subsection 946B(9) of the Act, a record of advice must set out
the following:
(a) the investment advice given to a client by the providing
entity;
(b) brief particulars of the recommendations made to the client
and the basis on which the recommendations are made;
(c) if the providing entity is a financial services licensee—the
information that, if a Statement of Advice were to be given,
would be required in that Statement by paragraphs
947B(2)(d) and (e) of the Act;
(d) if the providing entity is an authorised representative—the
information that, if a Statement of Advice were to be given,
would be required in that Statement by paragraphs
947C(2)(e) and (f) of the Act.
Note: A client is entitled to ask the providing entity for a record of advice
under subsections 942B(8) and 942C(8) of the Act.
7.7.10AB Financial services guide—contents of guide
Financial services guide given by financial services licensee
(1) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if paragraph 942B(2)(c) of the Act were omitted and the following
paragraph were substituted:
“(c) either:
(i) information about the financial services (the authorised
services) that the providing entity will be, or is likely to
be, providing to the client, and the kinds of financial
products to which those services relate; or
(ii) information about the kinds of financial services (the
authorised services) that the providing entity is
authorised by its licence to provide, and the kinds of
financial products to which those services relate; and”.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.10AC
Corporations Regulations 2001 41
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Financial services guide given by authorised representative
(2) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if paragraphs 942C(2)(c), (d) and (e) of the Act were omitted and
the following paragraphs were substituted:
“(c) either:
(i) information about the financial services (the authorised
services) that the providing entity will be, or is likely to
be, providing to the client, and the kinds of financial
products to which those services relate; or
(ii) information, in relation to the authorising licensee or
each of the authorising licensees, about the kinds of
financial services (the authorised services) that the
providing entity provides as representative of the
authorising licensee, and the kinds of financial products
to which those services relate; and
(d) information about who the authorising licensee, or each of
the authorising licensees, acts for when the authorised
services are provided on their behalf by the providing entity;
and
(e) a statement:
(i) setting out the name and contact details of the
authorising licensee, or of each of the authorising
licensees, mentioned in paragraph (d); and
(ii) stating that the providing entity is the authorised
representative of that licensee or those licensees; and”.
7.7.10AC Financial services guide
Financial services guide given by financial services licensee—
contents of guide
(1) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if paragraph 942B(2)(g) were omitted and the following paragraph
were substituted:
“(g) if the providing entity provides further advice—a statement
in relation to which the following requirements are satisfied:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.10AC
42 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) the statement must indicate that the client may request a
record of further advice that is provided to them, if they
have not already been provided with a record of that
advice;
(ii) the statement must set out particulars of how the client
may request such a record;
(iii) any limitation in those particulars relating to the time
within which the client may request such a record must
be consistent with any applicable requirements in
regulations made for the purposes of this subparagraph
or, if there are no such applicable requirements, must be
such as to allow the client a reasonable opportunity to
request a record of the advice; and”.
Financial services guide given by financial services licensee—
compliance with statement
(2) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if subsection 942B(8) were omitted and the following subsection
were substituted:
“(8) If:
(a) the Financial Services Guide includes a statement to the
effect that a client may request a record of further advice; and
(b) the client is provided with further advice to which that
statement applies; and
(c) the client has not already been provided with a record of that
advice;
the providing entity must comply with a request made in
accordance with that statement for a record of that advice.
Note: Failure to comply with this subsection is an offence (see
subsection 1311(1)).”
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.10AD
Corporations Regulations 2001 43
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7.10AD Financial services guide
Financial services guide given by authorised representative—
contents of guide
(1) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if paragraph 942C(2)(h) were omitted and the following paragraph
were substituted:
“(h) if the providing entity, when acting as representative of the
authorising licensee or any of the authorising licensees,
provides further advice—a statement in relation to which the
following requirements are satisfied:
(i) the statement must indicate that the client may request a
record of further advice that is provided to them, if they
have not already been provided with a record of that
advice;
(ii) the statement must set out particulars of how the client
may request such a record;
(iii) any limitation in those particulars relating to the time
within which the client may request such a record must
be consistent with any applicable requirements in
regulations made for the purposes of this subparagraph
or, if there are no such applicable requirements, must be
such as to allow the client a reasonable opportunity to
request a record of the advice; and”.
Financial services guide given by authorised representative—
compliance with statement
(2) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if subsection 942C(8) were omitted and the following subsection
were substituted:
“(8) If:
(a) the Financial Services Guide includes a statement to the
effect that a client may request a record of further advice; and
(b) the client is provided with further advice to which that
statement applies; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.10AE
44 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) the client has not already been provided with a record of that
advice;
the providing entity must comply with a request made in
accordance with that statement for a record of that advice.
Note: Failure to comply with this subsection is an offence (see
subsection 1311(1)).”
7.7.10AE Situations in which Statement of Advice not required
For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if section 946B of the Act were omitted and the following section
were substituted:
“946B Situations in which a Statement of Advice is not required
First situation: further advice
(1) The providing entity does not have to give the client a Statement of
Advice for particular advice (the further advice) if subsection (2)
or (2A) applies.
(2) This subsection applies if:
(a) the providing entity has previously given the client a
Statement of Advice that set out the client’s relevant personal
circumstances in relation to the advice (the previous advice)
set out in that Statement; and
(b) the client’s relevant personal circumstances in relation to the
further advice (determined having regard to the client’s
objectives, financial situation and needs as currently known
to the providing entity) are not significantly different from
the client’s relevant personal circumstances in relation to the
previous advice; and
(c) so far as the basis on which advice is given relates to other
matters—the basis on which the further advice is given is not
significantly different from the basis on which the previous
advice was given.
Note: Paragraphs 947B(2)(b) and 947C(2)(b) require a Statement of Advice
to include information about the basis on which the advice is or was
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.10AE
Corporations Regulations 2001 45
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
given, which may include the client's relevant personal circumstances,
in which case paragraph (a) of this subsection would be satisfied.
(2A) This subsection applies if:
(a) the client had a relationship with the providing entity before:
(i) if the providing entity is a licensee—the day on which
the providing entity obtained its Australian financial
services Licence; or
(ii) if the providing entity is an authorised representative—
the day on which the licensee on whose behalf the
advice is provided obtained its Australian financial
services Licence; and
(b) the providing entity gave the client advice (the earlier
advice) of a kind that if it were given after the day the
Australian financial services Licence was obtained would be
considered to be personal advice; and
(c) the client’s relevant personal circumstances in relation to the
further advice are not significantly different from the client’s
investment objectives, financial situation and particular needs
that were determined for the earlier advice; and
(d) so far as the basis on which advice is given relates to other
matters—the basis on which the further advice is given is not
significantly different from the basis on which the earlier
advice was given.
(3) At the same time or as soon as practicable after the further advice is given to the client, the client must be given a statement that contains the information that would, if a Statement of Advice were to be given, be required to be in the Statement by paragraphs 947B(2)(d) and (e), or 947C(2)(e) and (f), as the case requires, and by section 947D, if applicable.
(3A) The providing entity must keep a record of the further advice and,
in doing so, must comply with any applicable requirements of
regulations made for the purposes of this subsection.
Note 1: Failure to comply with this subsection is an offence (see
subsection 1311(1)).
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.10AF
46 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Note 2: For the client’s right to a record of the advice, see
subsections 942B(8) and 942C(8).
Note 3: Subsections 947D(2) and (3) require additional information to be
included in the record in certain circumstances.
Second situation: certain basic deposit and other products
(5) The providing entity does not have to give the client a Statement of
Advice if the advice relates to any or all of the following:
(a) a basic deposit product;
(b) a facility for making non-cash payments (see section 763D)
that is related to a basic deposit product;
(c) a financial product of a kind prescribed by regulations made
for the purposes of this paragraph.
(6) However, if subsection (4) applies and the client is not given a
Statement of Advice, the client must instead, when, or as soon as
practicable after, the advice is provided, be given the information
that would be required to be in the Statement of Advice by
paragraphs 947B(2)(d) and (e), or 947C(2)(e) and (f), as the case
requires.”
7.7.10AF Various consequential amendments to Division 7 of
Part 7.7 concerning situations where Financial Services
Guides do not have to be given
(1) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if the provision set out in column 2 of the following table were
modified as set out in columns 3 and 4:
Column 1 Column 2 Column 3 Column 4
Item provision of Act is modified
by…
and…
1 paragraph (a) of the
definition of defective in
subsection 952B(1)
omitting
“941D(2)”
substituting “941D(2) or
paragraph 941C(7A)(c)
or”
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.10AF
Corporations Regulations 2001 47
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Column 1 Column 2 Column 3 Column 4
Item provision of Act is modified
by…
and…
2 subparagraph (a)(iv) of
the definition of
defective in
subsection 952B(1)
omitting
“941D(2)”
substituting “941D(2) or
paragraph 941C(7A)(c)
or”
3 paragraph (d) of the
definition of disclosure
document or statement
in subsection 952B(1)
omitting
“946C(2)”
substituting “946C(2) or
paragraph 941C(7A)(c),”
4 paragraph 952E(3)(a) omitting
“946C(2)”
substituting “946C(2) or
paragraph 941C(7A)(c),”
5 paragraph 952F(1)(b) omitting
“946C(2)”
substituting “946C(2) or
paragraph 941C(7A)(c),”
6 subparagraph 952F(1)(c)
(i)
omitting
“946C(2)”
substituting “946C(2) or
paragraph 941C(7A)(c),”
7 paragraph 952G(1)(b) omitting
“946C(2)”
substituting “946C(2) or
paragraph 941C(7A)(c),”
8 subparagraph 952G(1)(c)
(i)
omitting
“946C(2)”
substituting “946C(2) or
paragraph 941C(7A)(c),”
9 paragraph (a) of the
definition of defective in
subsection 953A(1)
omitting
“941D(2)”
substituting “941D(2) or
paragraph 941C(7A)(c)
or”
10 subparagraph (a)(iv) of
the definition of
defective in
subsection 953A(1)
omitting
“941D(2)”
substituting “941D(2) or
paragraph 941C(7A)(c)
or”
11 paragraph (d) of the
definition of disclosure
document or statement
in subsection 953A(1)
omitting
“946C(2)”
substituting “946C(2) or
paragraph 941C(7A)(c),”
(2) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if subsection 940C(1) were modified by omitting “or a Statement
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.10AF
48 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
of Advice” and substituting “, a Statement of Advice or a statement
referred to in paragraph 941C(7A)(c)”.
(3) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if subsection 941D(4) were omitted and the following subsection
were substituted:
“(4) The client must then be given:
(a) the statement referred to in paragraph 941C(7A)(c) together
with a Product Disclosure Statement as required by
paragraph 941C(7A)(b)) in accordance with the requirements
of subsections 941C(7A) and (7B); or
(b) a Financial Services Guide;
within 5 business days after having given the statement referred to in subsection (3), or sooner if practicable.”
(4) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if the following subsection were inserted at the end of
section 941F:
“(2) If:
(a) a statement referred to in paragraph 941C(7A)(c) is given to
the client before the financial service is provided; and
(b) the following conditions are satisfied:
(i) there is a change in circumstances before the service is
provided and the statement does not contain the
information it would be required to contain if it were
given to a person immediately after that change;
(ii) the fact that the statement does not contain the up to
date information is materially adverse from the point of
view of a reasonable person deciding, as a retail client,
whether to proceed to be provided with the financial
service;
the providing entity must, before the service is provided, give the
client another statement of the kind referred to in
paragraph 941C(7A)(c) that contains the up to date information
before the service is provided.”
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.10AG
Corporations Regulations 2001 49
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7.10AG Various consequential amendments to Division 7 of
Part 7.7
(1) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if the provisions set out in column 2 of the following table were
modified as set out in columns 3 and 4:
Column 1 Column 2 Column 3 Column 4
Item provision of Act is modified
by…
and…
1 paragraph (b) of the
definition of defective in
subsection 952B(1)
omitting
“Statement of
Advice”
substituting “Statement
of Advice, a record of
advice required by
subsection 946B(3A),”
2 paragraph 952E(3)(a) omitting
“Statement of
Advice”
substituting “Statement
of Advice, a record of
advice required by
subsection 946B(3A),”
3 paragraph 952F(1)(b) omitting
“Statement of
Advice”
substituting “Statement
of Advice, a record of
advice required by
subsection 946B(3A),”
4 subparagraph 952F(1)(c)(i) omitting
“Statement of
Advice”
substituting “Statement
of Advice, a record of
advice required by
subsection 946B(3A),”
5 paragraph 952G(1)(b) omitting
“Statement of
Advice”
substituting “Statement
of Advice, a record of
advice required by
subsection 946B(3A),”
6 subparagraph 952G(1)(c)(i) omitting
“Statement of
Advice”
substituting “Statement
of Advice, a record of
advice required by
subsection 946B(3A),”
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.10AG
50 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Column 1 Column 2 Column 3 Column 4
Item provision of Act is modified
by…
and…
7 paragraph (b) of the
definition of defective in
subsection 953A(1)
omitting
“Statement of
Advice”
substituting “Statement
of Advice, a record of
advice required by
subsection 946B(3A),”
(2) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if the provisions set out in column 2 of the following table were
modified as set out in column 3:
Column 1 Column 2 Column 3
Item provision of Act is modified by…
1 the definition of
defective in
subsection 952B(1)
inserting after subparagraph 952B(1)(b)(ii):
(iiA) if it is a record of advice required
by subsection 946B(3A)—there is an
omission from the record of advice of
material required by
subsection 946B(3A) or
section 947D; or
2 the definition of
disclosure document
or statement in
subsection 952B(1)
inserting after paragraph (c) of the definition the
following paragraph:
(ca) a record of advice required by
subsection 946B(3A); or
3 the definition of
defective in
subsection 953A(1)
inserting after subparagraph 952B(1)(b)(ii) the
following paragraph:
(iiA) if it is a record of advice required
by subsection 946B(3A)—there is an
omission from the record of advice of
material required by
subsection 946B(3A) or
section 947D; or
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.10AH
Corporations Regulations 2001 51
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Column 1 Column 2 Column 3
Item provision of Act is modified by…
4 the definition of
disclosure document
or statement in
subsection 953A(1)
inserting after paragraph (c) of the definition the
following paragraph:
(ca) a record of advice required by
subsection 946B(3A); or
7.7.10AH Business days
For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if paragraph 946C(3)(c) was modified by omitting “5 days” and
substituting “5 business days”.
7.7.10AI Obligation to warn client that advice does not take account
of client’s objectives, financial situation or needs—carbon
units, Australian carbon credit units and eligible
international emissions units
For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies in
relation to a carbon unit, an Australian carbon credit unit or an
eligible international emissions unit as if paragraph 949A(2)(c)
read as follows:
“(c) if the advice relates to the acquisition, or possible acquisition,
of a carbon unit, the providing entity must:
(i) provide the client with the address of the website of the
Clean Energy Regulator mentioned in section 202 of the
Clean Energy Act 2011; and
(ii) inform the client that the client should consider each
statement mentioned in section 202 of the Clean Energy
Act 2011 before making any decision about whether to
acquire the financial product; and
(d) if the advice relates to the acquisition, or possible acquisition,
of an Australian carbon credit unit, the providing entity must:
(i) provide the client with the address of the website of the
Clean Energy Regulator mentioned in section 162 of the
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.10A
52 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Carbon Credits (Carbon Farming Initiative) Act 2011;
and
(ii) inform the client that the client should consider each
statement mentioned in section 162 of that Act before
making any decision about whether to acquire the
financial product; and
(e) if the advice relates to the acquisition, or possible acquisition,
of an eligible international emissions unit, the providing
entity must:
(i) provide the client with the address of the website of the
Clean Energy Regulator mentioned in section 61 of the
Australian National Registry of Emissions Units Act
2011; and
(ii) inform the client that the client should consider each
statement mentioned in section 61 of the Australian
National Registry of Emissions Units Act 2011 before
making any decision about whether to acquire the
financial product.”.
7.7.10A Statements of Advice—requirement to state information as
amounts in dollars
(1) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if paragraph 947B(2)(h) of the Act were modified to read as
follows:
‘(h) unless in accordance with the regulations and a
determination by ASIC, information to be disclosed in
accordance with paragraph (d) and subparagraph (e)(i)
must be stated as amounts in dollars.’.
(2) For paragraph 951C(1)(a) of the Act, a providing entity does not
have to provide the information mentioned in
paragraph 947B(2)(h) of the Act, in the form required by that
paragraph, in a Statement of Advice prepared before 1 January
2005.
Federal Register of Legislative Instruments F2015C00303
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Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.10B
Corporations Regulations 2001 53
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if paragraph 947C(2)(i) of the Act were modified to read as
follows:
‘(i) unless in accordance with the regulations and a
determination by ASIC, information to be disclosed in
accordance with paragraph (e) and subparagraph (f)(i)
must be stated as amounts in dollars.’.
(4) For paragraph 951C(1)(a) of the Act, a providing entity does not
have to provide the information mentioned in paragraph 947C(2)(i)
of the Act, in the form required by that paragraph, in a Statement
of Advice prepared before 1 January 2005.
(5) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if paragraph 947D(2)(d) of the Act were modified to read as
follows:
‘(d) unless in accordance with the regulations and a
determination by ASIC, information to be disclosed in
accordance with paragraph (a) must be stated as
amounts in dollars.’.
(6) For paragraph 951C(1)(a) of the Act, a providing entity does not
have to provide the information mentioned in
paragraph 947D(2)(d) of the Act, in the form required by that
paragraph, in a Statement of Advice prepared before 1 January
2005.
7.7.10B Insertion of definition—further advice
For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if the following definition were inserted in section 761A:
“further advice means advice to which subsection 946B(2) or (2A)
applies.”
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.10C
54 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7.10C Omission of definition—further market-related advice
For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if the definition of “further market-related advice” were omitted
from section 761A.
7.7.10D Additional information in Statement of Advice
For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if subsection 947D(2) of the Act were modified by omitting
“Statement of Advice” and substituting “Statement of Advice or
the record of advice under subsection 946B(3A), as the case
requires,”.
7.7.10E Additional information in Statement of Advice
For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if subsection 947D(3) of the Act were modified by omitting
“Statement of Advice” and substituting “Statement of Advice or
the record of advice under subsection 946B(3A), as the case
requires”.
7.7.11 Statement of Advice given by financial services licensee
(1) For paragraph 947B(2)(g) of the Act, a Statement of Advice given
by a financial services licensee must include information about all
remuneration (including commission) and other benefits that a
person (person 1) has received, or is to receive, for referring
another person to the financial services licensee.
(2) For paragraph 947B(2)(h) of the Act, if ASIC determines that, for a
compelling reason, it is not possible to state information to be
disclosed in accordance with paragraph 947B(2)(d) or
subparagraph 947B(2)(e)(i) as an amount in dollars, the
information may be set out as a description of the amount as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
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Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.11A
Corporations Regulations 2001 55
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) For paragraph 947B(2)(h) of the Act, if ASIC determines that, for a
compelling reason, it is not possible to state information to be
disclosed in accordance with paragraph 947B(2)(d) or
subparagraph 947B(2)(e)(i) as an amount in dollars, or to describe
the amount as a percentage, the information may be set out as a
description of the method of calculating the remuneration, benefits
or interests (including worked dollar examples, unless that is
inappropriate).
(4) A determination under subregulation (2) or (3) must be:
(a) in writing; and
(b) published in the Gazette.
(5) The statements and descriptions must be presented in a manner that
is easy for the client to understand.
7.7.11A Statement of Advice given by authorised representative of
financial services licensee—licence number
For paragraph 947C(2)(h) of the Act, a providing entity that is an
authorised representative of a financial services licensee must
include the licensee’s licence number in a Statement of Advice
given to a client.
7.7.11B Statement of Advice—disclosure of dollar amounts
(1) For paragraph 947B(2)(h) of the Act, if ASIC determines that, for a
compelling reason based on the nature of a financial product or
service, or the nature of the information, to state the information as
an amount in dollars:
(a) would impose an unreasonable burden on a providing entity,
or a class of providing entities; or
(b) would impose an unreasonable burden on a providing entity,
or a class of providing entities, within a period specified in
the determination; or
(c) would not be in the interests of a client, or a class of clients;
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.12
56 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
the information may be set out as a description of the amount as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(2) For paragraph 947B(2)(h) of the Act, if ASIC determines that, for a
compelling reason, based on the nature of a financial product or
service, or the nature of the information, to state the information as
an amount in dollars, or to describe the amount as a percentage:
(a) would impose an unreasonable burden on a providing entity,
or a class of providing entities; or
(b) would impose an unreasonable burden on a providing entity,
or a class of providing entities, within a period specified in
the determination; or
(c) would not be in the interests of a client, or a class of clients;
the information may be set out as a description of the method of
calculating the remuneration, benefits or interests (including
worked dollar examples, unless that is inappropriate).
(3) A determination under subregulation (1) or (2) must be:
(a) in writing; and
(b) published in the Gazette.
7.7.12 Statement of Advice given by authorised representative of
financial services licensee
(1) For paragraph 947C(2)(h) of the Act, a Statement of Advice given
by an authorised representative of a financial services licensee
must include information about all remuneration (including
commission) and other benefits that a person (person 1) has
received, or is to receive, for referring another person to the
authorised representative or the financial services licensee.
(2) For paragraph 947C(2)(i) of the Act, if ASIC determines that, for a
compelling reason, it is not possible to state information to be
disclosed in accordance with paragraph 947C(2)(e) or
subparagraph 947C(2)(f)(i) as an amount in dollars, the
information may be set out as a description of the amount as a
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Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.13
Corporations Regulations 2001 57
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(3) For paragraph 947C(2)(i) of the Act, if ASIC determines that, for a
compelling reason, it is not possible to state information to be
disclosed in accordance with paragraph 947C(2)(e) or
subparagraph 947C(2)(f)(i) as an amount in dollars, or to describe
the amount as a percentage, the information may be set out as a
description of the method of calculating the remuneration, benefits
or interests (including worked dollar examples, unless that is
inappropriate).
(4) A determination under subregulation (1) or (2) must be:
(a) in writing; and
(b) published in the Gazette.
(5) The statements and descriptions must be presented in a manner that
is easy for the client to understand.
7.7.13 Statement of Advice provided by authorised representative—
disclosure of dollar amounts
(1) For paragraph 947C(2)(i) of the Act, if ASIC determines that, for a
compelling reason based on the nature of a financial product or
service, or the nature of the information, to state the information as
an amount in dollars:
(a) would impose an unreasonable burden on a providing entity,
or a class of providing entities; or
(b) would impose an unreasonable burden on a providing entity,
or a class of providing entities, within a period specified in
the determination; or
(c) would not be in the interests of a client, or a class of clients;
the information may be set out as a description of the amount as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(2) For paragraph 947C(2)(i) of the Act, if ASIC determines that, for a
compelling reason, based on the nature of a financial product or
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.13A
58 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
service, or the nature of the information, to state the information as
an amount in dollars, or to describe the amount as a percentage:
(a) would impose an unreasonable burden on a providing entity,
or a class of providing entities; or
(b) would impose an unreasonable burden on a providing entity,
or a class of providing entities, within a period specified in
the determination; or
(c) would not be in the interests of a client, or a class of clients;
the information may be set out as a description of the method of
calculating the remuneration, benefits or interests (including
worked dollar examples, unless that is inappropriate).
(3) A determination under subregulation (1) or (2) must be:
(a) in writing; and
(b) published in the Gazette.
7.7.13A Additional information about charges or benefits—
disclosure of dollar amounts
(1) For paragraph 947D(2)(d) of the Act, if ASIC determines that, for
a compelling reason, it is not possible to state information to be
disclosed in accordance with paragraph 947D(2)(a) as an amount
in dollars, the information may be set out as a description of the
amount as a percentage of a specified matter (including worked
dollar examples, unless that is inappropriate).
(2) For paragraph 947D(2)(d) of the Act, if ASIC determines that, for
a compelling reason, it is not possible to state information to be
disclosed in accordance with paragraph 947D(2)(a) as an amount
in dollars, or to describe the amount as a percentage, the
information may be set out as a description of the method of
calculating the charge or benefit (including worked dollar
examples, unless that is inappropriate).
(3) A determination under subregulation (1) or (2) must be:
(a) in writing; and
(b) published in the Gazette.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.13B
Corporations Regulations 2001 59
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7.13B Additional information about charges or benefits—
disclosure of dollar amounts
(1) For paragraph 947D(2)(d) of the Act, if ASIC determines that, for
a compelling reason based on the nature of a financial product or
service, or the nature of the information, to state the information as
an amount in dollars:
(a) would impose an unreasonable burden on a providing entity,
or a class of providing entities; or
(b) would impose an unreasonable burden on a providing entity,
or a class of providing entities, within a period specified in
the determination; or
(c) would not be in the interests of a client, or a class of clients;
the information may be set out as a description of the amount as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(2) For paragraph 947D(2)(d) of the Act, if ASIC determines that, for
a compelling reason, based on the nature of a financial product or
service, or the nature of the information, to state the information as
an amount in dollars, or to describe the amount as a percentage:
(a) would impose an unreasonable burden on a providing entity,
or a class of providing entities; or
(b) would impose an unreasonable burden on a providing entity,
or a class of providing entities, within a period specified in
the determination; or
(c) would not be in the interests of a client, or a class of clients;
the information may be set out as a description of the method of
calculating the charge or benefit (including worked dollar
examples, unless that is inappropriate).
(3) A determination under subregulation (1) or (2) must be:
(a) in writing; and
(b) published in the Gazette.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 4 General advice provided to a retail client
Regulation 7.7.14
60 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4—General advice provided to a retail client
7.7.14 Product Disclosure Statement not required
For paragraph 926B(1)(a) of the Act, a providing entity that is
giving general advice in relation to a financial product for which,
under Part 7.9 of the Act, a Product Disclosure Statement is not
required, does not have to give the warning in
paragraph 949A(2)(c) of the Act.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Other disclosure requirements Division 5
Regulation 7.7.20
Corporations Regulations 2001 61
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5—Other disclosure requirements
7.7.20 General advice to retail client—no obligation to warn client
For paragraph 949A(1)(c) of the Act, the provision of general
advice in the circumstances set out in subregulation 7.7.02(5A) is
specified.
7.7.20A Extension of disclosure requirements to wholesale clients
dealing with certain unauthorised insurers
(1) For paragraph 949B(1)(e) of the Act, a person must give a
wholesale client the information set out in subregulation (3) for a
financial service provided by that person to the wholesale client if:
(a) the service relates to an insurance contract specified in
regulation 4C or 4D of the Insurance Regulations 2002 that
may be offered or issued by an unauthorised foreign insurer
(within the meaning of those Regulations) (the insurer); and
(b) either:
(i) the person would be required to give a Statement of
Advice if the service were provided to a retail client; or
(ii) the contract is offered or issued to the wholesale client.
Note: Failure to comply with this subregulation is an offence punishable by
a fine of up to 50 penalty units or imprisonment for 1 year, or both—
see section 1311 and item 272A of Schedule 3 to the Corporations Act
2001.
(2) For paragraph 949B(1)(e) of the Act, a person must give a
wholesale client the information set out in subregulation (3) for a
financial service provided by that person to the wholesale client if:
(a) the service relates to the wholesale client dealing with an
entity (the insurer) specified in regulation 12 of the
Insurance Regulations 2002; and
(b) either:
(i) the person would be required to give a Statement of
Advice if the service were provided to a retail client; or
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Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 5 Other disclosure requirements
Regulation 7.7.20A
62 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) the insurer offers or issues a financial product to the
wholesale client.
Note: Failure to comply with this subregulation is an offence punishable by
a fine of up to 50 penalty units or imprisonment for 1 year, or both—
see section 1311 and item 272A of Schedule 3 to the Corporations Act
2001.
(3) The information is:
(a) a statement that the insurer is not authorised under the
Insurance Act 1973 to conduct insurance business in
Australia; and
(b) a statement that the insurer is not subject to the provisions of
the Insurance Act 1973, which establishes a system of
financial supervision of general insurers in Australia; and
(c) a statement that the wholesale client should consider whether
to obtain further information, including:
(i) the country in which the insurer is incorporated, and
whether the country has a system of financial
supervision of insurers; and
(ii) the paid up capital of the insurer; and
(iii) which country’s laws will determine disputes in relation
to the financial product; and
(d) a statement that the insurer cannot be a declared general
insurer for the purpose of Part VC of the Insurance Act 1973,
and, if the insurer becomes insolvent, the wholesale client
will not be covered by the financial claims scheme provided
under Part VC of that Act.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Exemptions from application of Part 7.7 of the Act Division 6
Regulation 7.7.21
Corporations Regulations 2001 63
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 6—Exemptions from application of Part 7.7 of the
Act
7.7.21 Exemption from application of Part 7.7 of the Act
For paragraph 951C(1)(a) of the Act, Part 7.7 of the Act does not
apply to a financial services licensee or an authorised
representative in respect of financial services provided to retail
clients who are not in this jurisdiction.
Note: Regulation 7.9.98 also contains exemptions from the operation of
Part 7.7 of the Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 2 Best interests obligations
Regulation 7.7A.1
64 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 7.7A—Best interests obligations and
remuneration Note: Regulations 7.7A.01 to 7.7A.09 are reserved for future use.
Division 2—Best interests obligations
Subdivision 1—Duty to act in client’s best interests
7.7A.1 Duty if advising on combination of products
(1) This regulation:
(a) is made for paragraph 961B(5)(b) of the Act; and
(b) prescribes the circumstances in which a provider is not
required to prove he or she has taken the steps mentioned in
paragraphs 961B(2)(d) to (g) of the Act to satisfy the duty to
act in the best interests of the client, in relation to advice
about the following products:
(i) a basic banking product;
(ii) a general insurance product.
(2) A provider is not required to prove it has taken those steps if:
(a) the provider is:
(i) an agent or an employee of an Australian ADI; or
(ii) otherwise acting by arrangement with an Australian
ADI under the name of the Australian ADI; and
(b) any personal advice that is provided relates only to:
(i) a basic banking product; or
(ii) a general insurance product; or
(iii) a combination of those products.
Note: The definition of personal advice is in subsection 766B(3) of the Act.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Best interests obligations Division 2
Regulation 7.7A.1
Corporations Regulations 2001 65
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) A provider is not required to prove the provider has taken those
steps in relation to advice about a general insurance product, even
if the provider, at the same time, provides other advice (whether or
not personal advice).
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 3 Charging ongoing fees to clients
Regulation 7.7A.10
66 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 3—Charging ongoing fees to clients
7.7A.10 Arrangements that are not ongoing fee arrangements
(1) This regulation is made for subsection 962A(5) of the Act.
(2) An arrangement of a kind mentioned in subsection 962A(1) or (2)
of the Act is not an ongoing fee arrangement to the extent that the
arrangement relates to a product fee mentioned in
subregulation (3).
(3) Each of the following is a product fee:
(a) a fee for the administration, management or operation of a
financial product that is charged to a retail client to which the
product is issued by the issuer of the product;
Example 1: A monthly account keeping fee charged by the provider of a basic
deposit product.
Example 2: A monthly administration or investment fee charged by a trustee of a
superannuation fund or a responsible entity of a managed investment
scheme.
(b) a fee that:
(i) is a cost of providing financial product advice; and
(ii) under section 99F of the Superannuation Industry
(Supervision) Act 1993, is not prohibited or prevented
from being passed on to a member of a regulated
superannuation fund.
7.7A.11 Fee disclosure statements: product fee
(1) This regulation is made for paragraph 962H(3)(a) of the Act.
(2) Information about a product fee mentioned in
subregulation 7.7A.10(3) is not required by subsection 962H(2) of
the Act.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Conflicted remuneration Division 4
Regulation 7.7A.12
Corporations Regulations 2001 67
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4—Conflicted remuneration
Subdivision 1—Monetary benefits
7.7A.12 What subdivision is about
This subdivision:
(a) is made for paragraph 963B(1)(e) of the Act; and
(b) prescribes the circumstances in which a monetary benefit
given to a financial services licensee, or representative of a
financial services licensee, (the provider) who provides
financial product advice to persons as retail clients is not
conflicted remuneration.
Note: The definition of financial product advice is in subsection 766B(1) of
the Act.
7.7A.12A Life risk insurance products
A monetary benefit is not conflicted remuneration if the benefit is
given in relation to a life risk insurance product, other than:
(a) a group life policy for members of a superannuation entity; or
(b) a life policy for a member of a default superannuation fund.
Note 1: The definitions of group life policy for members of a superannuation
entity and life policy for a member of a default superannuation fund
are in section 963B of the Act.
Note 2: If a benefit is given in relation to a financial product that consists of
both general insurance and life risk insurance, the benefit is to be
treated as relating to a general insurance product and a life risk
insurance product.
7.7A.12B Stamping fees
(1) A monetary benefit is not conflicted remuneration if it is a
stamping fee given to facilitate an approved capital raising.
(2) In this regulation:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.12C
68 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
approved capital raising means:
(a) an offer to issue an approved financial product; or
(b) an offer to sell an approved financial product;
where the purpose of the offer is to raise funds for the person
issuing or selling the approved financial product.
approved financial product means:
(a) debentures, stocks or bonds that are, or are proposed to be,
issued by a government; or
(b) shares in, or debentures of, a body that are, or are proposed to
be, quoted on a prescribed financial market; or
(c) interests in a managed investment scheme that are, or are
proposed to be, quoted on a prescribed financial market; or
(d) a right to acquire, by way of issue, shares, debentures or
interests mentioned in paragraph (b) or (c).
stamping fee means a fee, or a part of a fee:
(a) that a person, including an issuer of a financial product, or a
person acting on behalf of the issuer, pays either directly or
indirectly to a provider in connection with:
(i) an offer by the issuer to issue the financial product; or
(ii) an invitation by the issuer for an application to issue the
financial product; or
(b) that a person, including a holder of a financial product, or
person acting on behalf of the holder, pays either directly or
indirectly to a provider in connection with:
(i) an offer by the holder to sell the financial product; or
(ii) an invitation by the holder for an application to sell the
financial product.
7.7A.12C Time-sharing schemes
A monetary benefit is not conflicted remuneration if the benefit is
given for advice that relates to an interest in a time-sharing scheme.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Conflicted remuneration Division 4
Regulation 7.7A.12D
Corporations Regulations 2001 69
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7A.12D Brokerage fees
(1) A monetary benefit is not conflicted remuneration if:
(a) the benefit consists of a percentage, of no more than 100%,
of a brokerage fee that is given to a provider who is a trading
participant of a prescribed financial market or the market
known as the ASX24; and
(b) the provider, directly or indirectly, gives the benefit to a
representative of the provider.
Note 1: For prescribed financial market, see regulation 1.0.02A.
Note 2: The ASX24 is the financial market operated by Australian Securities
Exchange Limited that was formerly known as the Sydney Futures
Exchange.
(1A) A monetary benefit is not conflicted remuneration if:
(a) the benefit is a fee paid between a financial services licensee
that is a trading participant of a prescribed financial market
and a financial services licensee that is not a trading
participant in respect of dealings undertaken by a retail client
through a specified service; and
(b) each of those trades is executed by the trading participant on
behalf of the retail client; and
(c) the fee is a percentage, not exceeding 100%, of a brokerage
fee paid directly or indirectly by the retail client; and
(d) no portion of the benefit is paid to a person other than the
trading participant or the licensee that is not a trading
participant.
(2) In this regulation:
brokerage fee means a fee that a retail client pays to a provider in
relation to a transaction in which the provider, on behalf of the
retail client, deals in a financial product that is traded on:
(a) a prescribed financial market; or
(aa) the market known as the ASX24; or
(b) a prescribed foreign financial market.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.12D
70 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Note 1: Regulations 7.7A.17 and 7.7A.18 relate to exemptions in relation to
the charging of asset-based fees on borrowed amounts.
Note 2: The ASX24 is the financial market operated by Australian Securities
Exchange Limited that was formerly known as the Sydney Futures
Exchange.
prescribed foreign financial market means a financial market that:
(a) has its principal place of business in a foreign country; and
(b) has been authorised by an authority in that country that is a
signatory to the International Organization of Securities
Commissions’ Multilateral Memorandum of Understanding
Concerning Consultation and Cooperation and the Exchange
of Information of May 2002.
specified service means a service which:
(a) is provided for retail clients under the name or brand name
of:
(i) the financial services licensee that is not a trading
participant; or
(ii) the trading participant and the financial services
licensee that is not a trading participant; and
(b) relates to the dealing, on behalf of the retail client, in a
financial product traded on:
(i) a prescribed financial market; or
(ii) a prescribed foreign financial market; and
(c) is provided in either or both of the following ways:
(i) by direct electronic access;
(ii) by telephone, but only if:
(A) direct electronic access is not available for a
temporary period, or the retail client expresses a
preference that the service be provided by
telephone; and
(B) neither the trading participant nor the financial
services licensee that is not a trading participant
is to provide financial product advice to the
retail client by telephone in relation to the
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Conflicted remuneration Division 4
Regulation 7.7A.12E
Corporations Regulations 2001 71
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
dealing undertaken on the retail client’s behalf;
and
(d) is provided in circumstances in which neither the trading
participant nor the financial services licensee that is not a
trading participant provides personal advice to the retail
client in relation to the dealing undertaken on the retail
client’s behalf.
trading participant of a prescribed financial market or the market
known as the ASX24 means a person who:
(a) is a participant of the market admitted under the market’s
operating rules; and
(b) is allowed, under the market’s operating rules, to deal in one
or more of the financial products that are able to be traded on
the market.
Note: The ASX24 is the financial market operated by Australian Securities
Exchange Limited that was formerly known as the Sydney Futures
Exchange.
7.7A.12E Fees paid by clients for dealing services
A monetary benefit is not conflicted remuneration if the benefit is
given to the provider by a retail client in relation to the provider
dealing in a financial product on behalf of the client.
7.7A.12EA Application of ban on conflicted remuneration—
purchase or sale of financial advice business
A monetary benefit is not conflicted remuneration to the extent
that:
(a) the benefit is given to a financial services licensee or a
representative of the licensee; and
(b) the benefit is paid as part of:
(i) the purchase or sale of all or part of the licensee’s
financial advice business; or
(ii) the purchase or sale of all or part of the representative’s
financial advice business; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.12F
72 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) the price is calculated using a formula:
(i) which is based, in whole or in part, on the number or
value of all or part of the financial products held by the
licensee’s clients or the representative’s clients; and
(ii) in which the weighting attributed to the financial
products issued by the licensee or a related body
corporate or other person is the same as the weighting
attributed to other similar financial products.
Subdivision 2—Monetary or non-monetary benefits
7.7A.12F What subdivision is about
This subdivision:
(a) is made for paragraphs 963B(1)(e) and 963C(f) of the Act;
and
(b) prescribes the circumstances in which a monetary or
non-monetary benefit given to a financial services licensee,
or representative of a financial services licensee, (the
provider) who provides financial product advice to persons
as retail clients is not conflicted remuneration.
Note: The definition of financial product advice is in subsection 766B(1) of
the Act.
7.7A.12G General insurance
A benefit is not conflicted remuneration if the benefit is given in
relation to a general insurance product.
Note: If a benefit is given in relation to a financial product that consists of
both general insurance and life risk insurance, the benefit is to be
treated as relating to a general insurance product and a life risk
insurance product.
7.7A.12H Basic banking and general insurance products
A benefit is not conflicted remuneration if:
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Regulation 7.7A.12I
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(a) to the extent that the benefit is given in relation to financial
product advice, the benefit only relates to the following
financial products:
(i) a basic banking product;
(ii) a general insurance product;
(iii) a combination of those financial products; and
(b) the provider does not, at the same time, provide advice about
any other financial products; and
(c) the provider is:
(i) an agent or an employee of an Australian ADI; or
(ii) otherwise acting by arrangement with an Australian
ADI under the name of the Australian ADI.
7.7A.12I Mixed benefits
(1) A benefit that is given in one or more of the circumstances set out
in the prescribed provisions is not conflicted remuneration even if:
(a) the benefit also relates to other activities, but only to the
extent that the part of the benefit that relates to the other
activities is not conflicted remuneration; or
(b) the provider, at the same time, provides other services
(whether or not financial services).
(2) However, subregulation (1) does not apply to the extent that the
prescribed provisions under which the benefit is given provide that:
(a) the benefit may only relate to particular financial products or
services; or
(b) the provider must not receive the benefit if the provider is, at
the same time, providing other specified financial services.
(3) In this regulation:
prescribed provision means:
(a) paragraph 963B(1)(a), (b), (c) or (d) of the Act, or a
regulation made under paragraph 963B(1)(e) of the Act; or
(b) paragraph 963C(a), (b), (c), (d) or (e) of the Act, or a
regulation made under paragraph 963C(f) of the Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.13
74 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7A.13 Non-monetary benefit given in certain circumstances not
conflicted remuneration: prescribed amount
For subparagraph 963C(b)(i) of the Act, the amount is $300 for
each financial services licensee, or each representative of a
financial services licensee, who is the final recipient of a
non-monetary benefit.
Note: Under paragraph 963C(b) of the Act, if a non-monetary benefit is
given to a financial services licensee, or a representative of a financial
services licensee, who provides financial advice, is less than the
prescribed amount and identical or similar benefits are not given on a
frequent or regular basis, the benefit is not conflicted remuneration.
7.7A.14 Non-monetary benefit given in certain circumstances not
conflicted remuneration: education or training course
(1) This regulation is made for subparagraph 963C(c)(iii) of the Act.
(2) This regulation sets out requirements if a non-monetary benefit to
which subparagraphs 963C(c)(i) and (ii) of the Act apply is the
provision of an education or training course to a financial services
licensee, or a representative of a financial services licensee.
Note: Under paragraph 963C(c) of the Act, if certain non-monetary benefits
have a genuine education or training purpose, are relevant to the
provision of financial product advice to retail clients and comply with
the regulations, the benefits are not conflicted remuneration.
(3) Education or training activities for the professional development of
the participants in the course must take up at least:
(a) 75% of the time spent on the course; or
(b) 6 hours a day;
whichever is the lesser.
(4) The participant, or the participant’s employer or licensee, must pay
for the costs of:
(a) travel and accommodation relating to the course; and
(b) events and functions held in conjunction with the course.
Example: The cost of day trips or dinners.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Conflicted remuneration Division 4
Regulation 7.7A.15
Corporations Regulations 2001 75
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(5) In this regulation:
education or training course includes a conference or seminar.
7.7A.15 Non-monetary benefit given in certain circumstances not
conflicted remuneration: other education and training
benefit
(1) This regulation is made for subparagraph 963C(c)(iii) of the Act.
(2) This regulation sets out a requirement if a non-monetary benefit to
which subparagraphs 963C(c)(i) and (ii) of the Act apply is not the
provision of an education or training course to which
regulation 7.7A.13 applies.
Note: Under paragraph 963C(c) of the Act, if certain non-monetary benefits
have a genuine education or training purpose, are relevant to the
provision of financial product advice to retail clients and comply with
the regulations, the benefits are not conflicted remuneration.
(3) The dominant purpose of the non-monetary benefit must be
education and training.
7.7A.15A Non-monetary benefit given in certain circumstances not
conflicted remuneration—education and training in
conducting a financial services business
(1) This regulation:
(a) is made for paragraph 963C(f) of the Act; and
(b) prescribes the circumstances in which a non-monetary benefit
given to a financial services licensee, or representative of a
financial services licensee, who provides financial product
advice to persons as retail clients is not conflicted
remuneration.
Note: For financial product advice, see subsection 766B(1) of the Act.
(2) The benefit is not conflicted remuneration if the benefit:
(a) has a genuine education or training purpose; and
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Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.15B
76 Corporations Regulations 2001
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(b) is relevant to the carrying on of a financial services business;
and
(c) complies with regulations made for the purposes of
subparagraph 963C(c)(iii) of the Act.
7.7A.15B Application of ban on conflicted remuneration—
non-platform operator (Division 4 of Part 7.7A of
Chapter 7 of the Act does not apply)
(1) This regulation:
(a) is made for subsection 1528(2) of the Act; and
(b) prescribes a circumstance in which Division 4 of Part 7.7A of
Chapter 7 of the Act does not apply to a benefit.
Note: Subsection 1528(1) of the Act sets out a rule about when Division 4 of
Part 7.7A of Chapter 7 of the Act does not apply to a benefit given to
a financial services licensee, or a representative of a financial services
licensee. Subsection 1528(2) of the Act permits regulations to
prescribe circumstances in which that Division applies, or does not
apply, to a benefit.
(2) The circumstance is that the benefit would have been given as
mentioned in subsection 1528(1) of the Act had it not been
redirected under one or more later arrangements.
(3) For subregulation (2), if a party to an arrangement changes, the
arrangement is taken to have continued in effect, after the change,
as the same arrangement.
7.7A.16 Application of ban on conflicted remuneration—platform
operator (Division 4 of Part 7.7A of Chapter 7 of the Act
does not apply)
(1) This regulation:
(a) is made for subsection 1528(2) of the Act; and
(b) prescribes a circumstance in which Division 4 of Part 7.7A of
Chapter 7 of the Act does not apply to a benefit.
Note: Subsection 1528(1) of the Act sets out a rule about when Division 4 of
Part 7.7A of Chapter 7 of the Act does not apply to a benefit given to
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Conflicted remuneration Division 4
Regulation 7.7A.16A
Corporations Regulations 2001 77
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a financial services licensee, or a representative of a financial services
licensee. Subsection 1528(2) of the Act permits regulations to
prescribe circumstances in which that Division applies, or does not
apply, to a benefit.
(2) The circumstance is that:
(a) the benefit is given by a platform operator; and
(b) either:
(i) the benefit is given under an arrangement that was
entered into before the application day, within the
meaning of subsection 1528(4) of the Act; or
(ii) the benefit would have been given as mentioned in
subparagraph (i) had it not been redirected under one or
more later arrangements.
(3) For subregulation (2), if a party to an arrangement changes, the
arrangement is taken to have continued in effect, after the change,
as the same arrangement.
(4) If this regulation and regulation 7.7A.16A or 7.7A.16B are able to
apply in relation to the benefit, disregard this regulation.
7.7A.16A Application of ban on conflicted remuneration—platform
operator (Division 4 of Part 7.7A of Chapter 7 of the Act
applies)
(1) This regulation:
(a) is made for subsection 1528(2) of the Act; and
(b) prescribes circumstances in which Division 4 of Part 7.7A of
Chapter 7 of the Act applies to a benefit; and
(c) does not apply in relation to a benefit to which
regulation 7.7A.16C applies.
Note: Subsection 1528(1) of the Act sets out a rule about when Division 4 of
Part 7.7A of Chapter 7 of the Act does not apply to a benefit given to
a financial services licensee, or a representative of a financial services
licensee. Subsection 1528(2) of the Act permits regulations to
prescribe circumstances in which that Division applies, or does not
apply, to a benefit.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.16A
78 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) The circumstance is that:
(a) the benefit is given by a person acting in the capacity as a
platform operator; and
(b) the benefit is given under an arrangement that was entered
into before the application day, within the meaning of
subsection 1528(4) of the Act; and
(c) the benefit:
(i) relates to an acquisition (including a regulated
acquisition, within the meaning of subsection 1012IA(1)
of the Act) of a financial product on the instructions of a
person who had not given an instruction to the person
acting in the capacity of a platform operator to open an
account on the platform before 1 July 2014; or
(ii) does not relate to a person who opened an account on
the platform before 1 July 2014.
(3) For subregulation (2), treat a benefit as having been given by a
person acting in the capacity as a platform operator if it:
(a) is given by a platform operator; and
(b) relates to activities undertaken in connection with the
platform as a result of instructions to the platform operator
from a client who has set up, or is setting up, an account on
the platform.
(4) For subregulation (2), if a retail client has an interest in a financial
product before 1 July 2014, treat a benefit as relating to an
acquisition of the financial product whether it is paid in relation to
the initial acquisition of the financial product or the subsequent
holding of the financial product.
(5) For subregulation (2), if a party to an arrangement changes, the
arrangement is taken to have continued in effect, after the change,
as the same arrangement.
(6) If this regulation and regulation 7.7A.16 are able to apply in
relation to the benefit, disregard regulation 7.7A.16.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Conflicted remuneration Division 4
Regulation 7.7A.16B
Corporations Regulations 2001 79
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7.7A.16B Application of ban on conflicted remuneration—person
other than platform operator (Division 4 of Part 7.7A of
Chapter 7 of the Act applies)
(1) This regulation:
(a) is made for subsection 1528(2) of the Act; and
(b) prescribes a circumstance in which Division 4 of Part 7.7A of
Chapter 7 of Chapter 7 of the Act applies to a benefit; and
(c) does not apply in relation to a benefit to which
regulation 7.7A.16C applies.
Note: Subsection 1528(1) of the Act sets out a rule about when Division 4 of
Part 7.7A of Chapter 7 of the Act does not apply to a benefit given to
a financial services licensee, or a representative of a financial services
licensee. Subsection 1528(2) of the Act permits regulations to
prescribe circumstances in which that Division applies, or does not
apply, to a benefit.
(2) The circumstance is that:
(a) the benefit is given by a person who is not acting in the
capacity of a platform operator; and
(b) the benefit is given under an arrangement that was entered
into before the application day, within the meaning of
subsection 1528(4) of the Act; and
(c) the benefit:
(i) is given in relation to the acquisition, on or after 1 July
2014, of a financial product, for the benefit of a retail
client; or
(ii) does not relate to a financial service provided, before
1 July 2014, for the benefit of a retail client; and
(d) the client did not have an interest in the product before 1 July
2014.
Note: For the definition of platform operator, see subsection 1526(1) of the
Act.
(3) For subregulation (2), treat a benefit as having been given by a
person acting in the capacity as a platform operator if it:
(a) is given by a platform operator; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.16B
80 Corporations Regulations 2001
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(b) relates to activities undertaken in connection with the
platform as a result of instructions to the platform operator
from a client who has set up, or is setting up, an account on
the platform.
Continuity of arrangement
(4) For subregulation (2):
(a) if a party to an arrangement changes, treat the arrangement as
having continued in effect, after the change, as the same
arrangement; and
(b) if a retail client has an interest in a financial product before
1 July 2014, treat a benefit as relating to an acquisition of the
financial product whether it is paid in relation to the initial
acquisition of the financial product or the subsequent holding
of the financial product.
Managed investment schemes
(5) For subregulation (2), if a retail client:
(a) had an interest in a managed investment scheme before
1 July 2014; and
(b) acquires a further interest in the managed investment scheme
on or after 1 July 2014;
do not treat the acquisition of the further interest as having
occurred on or after 1 July 2014.
Multi product offerings
(6) For subregulation (2), if:
(a) more than one financial product is marketed and offered
together under one product disclosure statement (a
multi-product offering) in a way in which:
(i) a retail client receives a consolidated report on a
periodic basis listing the client’s holdings in all of those
financial products; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Conflicted remuneration Division 4
Regulation 7.7A.16BA
Corporations Regulations 2001 81
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(ii) there is a facility which allows a retail client to choose
between, acquire, switch or transfer an interest in one or
more of those financial products; and
(b) the benefit is to be paid by the issuer of the product
disclosure statement; and
(c) a retail client opened an account on the multi-product
offering before 1 July 2014; and
(d) the retail client acquires an interest or a further interest in any
one or more of the financial products available in the
multi-product offering on or after 1 July 2014;
do not treat the acquisition of the interest, or further interest,
mentioned in paragraph (d) as having occurred on or after 1 July
2014.
Relationship with regulation 7.7A.16
(7) If this regulation and regulation 7.7A.16 are able to apply in
relation to the benefit, disregard regulation 7.7A.16.
7.7A.16BA Sale of business
The application of regulation 7.7A.16, 7.7A.16A or 7.7A.16B in
relation to a benefit is not affected only because the benefit, or the
right to the benefit, is transferred as part of the sale of a business,
or a part of a business.
Note: This means that the buyer of a business will have the same protection
for benefits that the seller of the business had.
7.7A.16C Application of ban on conflicted remuneration—employer
and employee (Division 4 of Part 7.7A of Chapter 7 of the
Act does not apply)
(1) This regulation:
(a) is made for subsection 1528(2) of the Act; and
(b) prescribes circumstances in which Division 4 of Part 7.7A of
Chapter 7 of the Act does not apply to a benefit.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.16C
82 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Note: Subsection 1528(1) of the Act sets out a rule about when Division 4 of
Part 7.7A of Chapter 7 of the Act does not apply to a benefit given to
a financial services licensee, or a representative of a financial services
licensee. Subsection 1528(2) of the Act permits regulations to
prescribe circumstances in which that Division applies, or does not
apply, to a benefit.
Remuneration arrangement relating to enterprise agreement or
collective agreement-based transitional instrument
(2) A circumstance is that:
(a) the benefit is paid under a remuneration arrangement
between an employer and an employee; and
(b) the benefit is paid in accordance with an enterprise agreement
(including its associated documents), or a collective
agreement-based transitional instrument (including its
associated documents), that was entered into before the
application day, within the meaning of subsection 1528(4) of
the Act.
When subregulation (2) ceases to apply
(3) If:
(a) an enterprise agreement referred to in paragraph (2)(b) was in
force immediately before the application day; and
(b) the nominal expiry date of the agreement had not passed
immediately before the application day;
the circumstance in subregulation (2) ceases to apply at the end of
18 months after the nominal expiry date of the agreement.
(4) If:
(a) an enterprise agreement referred to in paragraph (2)(b) was in
force immediately before the application day; and
(b) the nominal expiry date of the agreement passed before the
application day;
the circumstance in subregulation (2) ceases to apply on 1 July
2015.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Conflicted remuneration Division 4
Regulation 7.7A.16D
Corporations Regulations 2001 83
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Remuneration arrangement not relating to enterprise agreement or
collective agreement-based transitional instrument
(5) A circumstance is that:
(a) the benefit is paid under a remuneration arrangement
between an employer and an employee; and
(b) the benefit is not paid in accordance with an enterprise
agreement (including its associated documents) or a
collective agreement-based transitional instrument (including
its associated documents); and
(c) the benefit is payable in relation to a period that ends before
1 July 2015.
Definitions
(6) In this regulation:
collective agreement-based transitional instrument has the
meaning given by subitem 2(5) of Schedule 3 to the Fair Work
(Transitional Provisions and Consequential Amendments) Act
2009.
enterprise agreement has the same meaning as in the Fair Work
Act 2009.
7.7A.16D Application of ban on conflicted remuneration—new
arrangement entered into on or after application day
(Division 4 of Part 7.7A of Chapter 7 of the Act does not
apply)
(1) This regulation:
(a) is made for subsection 1528(2) of the Act; and
(b) prescribes a circumstance in which Division 4 of Part 7.7A of
Chapter 7 of the Act does not apply to a benefit.
Note: Subsection 1528(1) of the Act sets out a rule about when Division 4 of
Part 7.7A of Chapter 7 of the Act does not apply to a benefit given to
a financial services licensee, or a representative of a financial services
licensee. Subsection 1528(2) of the Act permits regulations to
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.16E
84 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
prescribe circumstances in which that Division applies, or does not
apply, to a benefit.
(2) The circumstance is that:
(a) the benefit is paid under an arrangement (the new
arrangement) that was entered into on or after the
application day, within the meaning of subsection 1528(4) of
the Act; and
(b) the new arrangement is on the same terms as an arrangement
(the previous arrangement) that was in place immediately
before the application day, except that the new arrangement
does not provide for the giving of remuneration that would
not be permissible under section 1528 of the Act or
regulations made for that section; and
(c) the previous arrangement was terminated as a result of the
application of Division 4 of Part 7.7A of Chapter 7 of the
Act.
7.7A.16E Application of ban on conflicted remuneration—change of
party to an arrangement (Division 4 of Part 7.7A of
Chapter 7 of the Act does not apply)
(1) This regulation:
(a) is made for subsection 1528(2) of the Act; and
(b) prescribes a circumstance in which Division 4 of Part 7.7A of
Chapter 7 of the Act does not apply to a benefit.
Note: Subsection 1528(1) of the Act sets out a rule about when Division 4 of
Part 7.7A of Chapter 7 of the Act does not apply to a benefit given to
a financial services licensee, or a representative of a financial services
licensee. Subsection 1528(2) of the Act permits regulations to
prescribe circumstances in which that Division applies, or does not
apply, to a benefit.
(2) The circumstance is that:
(a) the benefit is given under an arrangement that was entered
into before the application day, within the meaning of
subsection 1528(4) of the Act; and
(b) a party to the arrangement changes.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Conflicted remuneration Division 4
Regulation 7.7A.16F
Corporations Regulations 2001 85
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7A.16F Application of ban on conflicted remuneration—benefit is
a pass through of a grandfathered benefit (benefit is not
conflicted remuneration)
A benefit is not conflicted remuneration to the extent that:
(a) the benefit is a pass through of a benefit (a grandfathered
benefit) to which Division 4 of Part 7.7A of Chapter 7 of the
Act does not apply because of subsection 1528(1) or (3) of
the Act or a regulation made for subsection 1528(2) of the
Act; and
(b) the benefit, as passed through, was given under an
arrangement:
(i) that was entered into before the application day, within
the meaning of subsection 1528(4) of the Act; or
(ii) by which an authorised representative of a financial
services licensee became an authorised representative of
another financial services licensee; or
(iii) by which a representative of a financial services
licensee, or an employee of an authorised representative
of a financial services licensee, became an authorised
representative of the licensee or a related body corporate
of the licensee; and
(c) the benefit, as passed through, is consistent with purposes of
the arrangement under which the grandfathered benefit was
paid; and
(d) the total amount of the benefit, as passed through, does not
exceed 100 per cent of the grandfathered benefit.
Subdivision 3—Asset-based fees on borrowed amounts
7.7A.17 Financial services licensees
For subsection 964D(4) of the Act, a circumstance in which
subsections 964D(1) and (2) of the Act do not apply is that the
asset-based fee being charged is a brokerage fee within the
meaning of regulation 7.7A.12D.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.18
86 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7A.18 Authorised representatives
For subsection 964E(3) of the Act, a circumstance in which
subsection 964E(1) of the Act does not apply is that the asset-based
fee being charged is a brokerage fee within the meaning of
regulation 7.7A.12D.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Exemptions from application of Part 7.7A of the Act Division 6
Regulation 7.7A.40
Corporations Regulations 2001 87
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Division 6—Exemptions from application of Part 7.7A of
the Act
7.7A.40 Exemption from application of Part 7.7A of the Act
For paragraph 1368(d) of the Act, Part 7.7A of the Act does not
have effect in relation to a financial services licensee or an
authorised representative in respect of financial services provided
to retail clients who are not in this jurisdiction.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.8 Other provisions relating to conduct etc connected with financial products and
financial services, other than financial product disclosure
Regulation 7.8.01
88 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 7.8—Other provisions relating to conduct etc
connected with financial products and
financial services, other than financial
product disclosure
7.8.01 Obligation to pay money into an account
(1) For subparagraph 981B(1)(a)(i) of the Act, the reference in that
subparagraph to an account with an Australian ADI does not
prevent a financial services licensee that is an ADI from paying
money into an account held by itself.
(2) For subparagraph 981B(1)(a)(ii) of the Act, the following accounts
are prescribed:
(a) an account with an approved foreign bank;
(b) a cash management trust.
(3) For subparagraph 981B(1)(b)(iv) of the Act, if, in accordance with
an agreement mentioned in paragraph 7.8.02(3)(a), a financial
services licensee is required to pay an amount mentioned in
subparagraph 7.8.02(3)(a)(iv), that amount is money which must
be paid into an account to which that subparagraph applies.
(4) For subparagraph 981B(1)(b)(iv) of the Act:
(a) money paid to a financial services licensee:
(i) from or on behalf or an insured or intending insured for
or on account of an insurer; and
(ii) in connection with a contract of insurance or proposed
contract of insurance;
is money which may be paid into an account to which that
subparagraph applies; and
(b) money paid to a financial services licensee from or on behalf
of an insurer for or on account of an insured or intending
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Other provisions relating to conduct etc connected with financial products and financial
services, other than financial product disclosure Part 7.8
Regulation 7.8.01
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insured is money which may be paid into an account to
which that subparagraph applies.
(4A) For subparagraph 981B(1)(b)(iv) of the Act, if a financial services
licensee is required, by the market integrity rules or the operating
rules of a licensed market, to pay an amount into an account to
which section 981B relates, the amount is money which may be
paid into that account.
(5) For paragraph 981B(1)(c) of the Act, a financial services licensee
must:
(a) operate an account to which that paragraph applies as a trust
account; and
(b) designate the account to be a trust account; and
(c) hold all moneys paid into the account (other than moneys
paid to the financial services licensee under the financial
services licensee’s obligation to call margins from clients
under the market integrity rules, the operating rules of a
licensed market or the operating rules of a licensed CS
facility) on trust for the benefit of the person who is entitled
to the moneys.
(6) For subparagraph 981B(1)(b)(iv) of the Act, money received under
section 1017E of the Act is money which may be paid into:
(a) an account to which section 981B relates; or
(b) an insurance broking account maintained under section 26 of
the Insurance (Agents and Brokers) Act 1984.
(7) For paragraph 981B(1)(c) of the Act, if money received under
section 1017E of the Act is paid into an account under
subregulation (6), Part 7.8 of the Act applies to the money.
Note: See also subregulation 7.9.08(3).
(8) For paragraph 981B(1)(c) of the Act, if a financial services
licensee is required to call margins from a client under the market
integrity rules, the operating rules of a licensed market or the
operating rules of a licensed CS facility:
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(a) the financial services licensee may operate an account to
which that paragraph applies as:
(i) a clients’ segregated account; or
(ii) a trust account;
in accordance with the operating rules or market integrity
rules; and
(b) if:
(i) the account is operated outside Australia; and
(ii) the law in force in the jurisdiction where it is maintained
requires the account to be designated in a particular
way;
the financial services licensee must designate the account in
that way.
Note: The operating rules or market integrity rules may require client
moneys, including moneys used for margining, to be held in either a
clients’ segregated account or a trust account.
(9) For subparagraph 981B(1)(b)(iv) of the Act, if an account is
operated in accordance with subregulation (8), all money received
by the financial services licensee under Subdivision A of
Division 2 of Part 7.8 of the Act is money that may be paid into
that account.
(10) Subregulation (8) does not affect the operation of section 981E of
the Act.
(11) For subparagraph 981B(1)(b)(iv) of the Act, each of the following
is money that may be paid into an account:
(a) mixed money;
(b) unidentified money.
(12) For paragraph 981B(1)(c) of the Act, if mixed money is paid into
an account under subregulation (11), the licensee must, as soon as
practicable, but within 1 month after the mixed money is paid into
the account, remove from the account the part of the money that is
not section 981B money.
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(13) For paragraph 981B(1)(c) of the Act, if unidentified money is paid
into an account under subregulation (11), the licensee must, as
soon as practicable after the unidentified money is paid into the
account:
(a) identify any part of the money that is section 981B money;
and
(b) remove from the account any part of the money that is not
section 981B money.
(14) For subregulations (11) to (13):
mixed money means money that:
(a) is received by the licensee as a single payment; and
(b) is not wholly section 981B money, but includes section 981B
money.
section 981B money means:
(a) money to which Subdivision A of Division 2 of Part 7.8 of
the Act applies; or
(b) money that is allowed to remain in the account because of the
operation of subparagraphs 981B(1)(b)(ii) and (iii) of the
Act; or
(c) money mentioned in subregulation (4).
unidentified money means money that:
(a) is received by the licensee as a single payment; and
(b) at the time of receipt, is unable to be identified as
section 981B money or mixed money; and
(c) might include section 981B money.
7.8.02 Accounts maintained for section 981B of the Act
Withdrawals from account
(1) For paragraph 981C(a) of the Act, payments may be made out of
an account maintained for section 981B of the Act in any of the
following circumstances:
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(a) making a payment to, or in accordance with the written
direction of, a person entitled to the money;
(b) defraying brokerage and other proper charges;
(c) paying to the financial services licensee money to which the
financial services licensee is entitled;
(d) making a payment of moneys due to an insurer in connection
with a contract of insurance;
(e) making a payment that is otherwise authorised by law;
(f) paying to the financial services licensee money to which the
financial services licensee is entitled pursuant to the market
integrity rules or the operating rules of a licensed market.
(1A) For paragraph 981C(a) and subparagraph 981B(1)(b)(iv) of the
Act, if, under paragraph (1)(a), a financial services licensee (the
paying licensee) withdraws money from an account maintained for
section 981B of the Act and pays it to another financial services
licensee (the receiving licensee):
(a) the paying licensee must ensure that the receiving licensee is
notified, at the same time as the payment is made or as soon
as practicable, that the money:
(i) has been withdrawn from an account of the paying
licensee maintained for section 981B of the Act; and
(ii) should be paid into an account of the receiving licensee
maintained for section 981B of the Act; and
(b) not later than the day after the receiving licensee receives the
payment, the receiving licensee must pay the money into an
account of the receiving licensee maintained for section 981B
of the Act.
Permissible investments
(2) For paragraph 981C(a) of the Act, and subject to subregulations
(3), (4) and (5), the following kinds of investment may be made in
relation to an account maintained for section 981B of the Act:
(a) investment in any manner in which trustees are for the time
being authorised by law to invest trust funds;
(b) investment on deposit with an eligible money market dealer;
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(c) investment on deposit at interest with an Australian ADI;
(d) the acquisition of cash management trust interests;
(e) investment in a security issued or guaranteed by the
Commonwealth or a State or Territory;
(f) investment on deposit with a licensed CS facility.
(3) A financial services licensee must not invest an amount in a way
permitted by subregulation (2) unless:
(a) the financial services licensee has obtained the client’s
written agreement to the following matters:
(i) the making of the investment;
(ii) how earnings on the investment are to be dealt with
(including whether or not the earnings are to be shared,
and whether or not the earnings are to be paid into the
account);
(iii) how the realisation of the investment is to be dealt with
(including whether or not the capital invested, and the
proceeds of the investment, are to be deposited into the
account);
(iv) how any losses made on the investment are to be dealt
with (including the circumstances in which the financial
services licensee is required to pay an amount equal to
the difference between the amount invested and the
amount received, into the account or otherwise);
(v) the fee (if any) that the financial services licensee
proposes to charge for the investment; and
(b) the money is money to which the client is entitled.
Note: The investment arrangement may be a managed investment scheme.
(4) For paragraph 981A(4)(a) of the Act, subregulation (3) does not
apply to money to which subregulation 7.8.01(4) applies.
(5) In subregulation (2):
investment does not include the making of an investment in
accordance with the specific direction of a client.
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Note: Paragraph (1)(a) deals with the withdrawal of money from an account
in accordance with the written direction of a person entitled to the
money.
(6) For paragraph 981C(b) of the Act, in relation to moneys received
in relation to insurance products, the financial services licensee
must ensure that:
(a) the balance of moneys in an account maintained by the
financial services licensee under section 981B of the Act; and
(b) the total amount previously withdrawn from the account and
currently invested under subregulation (2);
is at least the sum of:
(c) any amounts that an insurer is entitled to receive from the
account; and
(d) any amounts that an insured or intending insured is entitled to
receive from the account.
(6A) For paragraph (6)(c), if, at a particular time, money received by a
financial services licensee for or on account of an insurer as
mentioned in paragraph 7.8.01(4)(a) is paid into the account, the
insurer is taken to be entitled to receive payment of:
(a) the amount; or
(b) if any deductions from the amount are authorised by a written
agreement between the insurer and the broker—the amount
less the deductions;
throughout the period:
(c) beginning at that time; and
(d) ending when the payment is actually made to the insurer;
whether or not the amount has been invested under
subregulation (2).
(6B) For paragraph (6)(d), if, at a particular time, money received by a
financial services licensee for or on account of an insured or
intending insured as mentioned in paragraph 7.8.01(4)(b) is paid
into an account, the insured or intending insured is taken to be
entitled to receive payment of the amount throughout the period:
(a) beginning at that time; and
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(b) ending when the payment is actually made to the insured or
intending insured;
whether or not the amount has been invested under
subregulation (2).
(6C) On application by a financial services licensee in the prescribed
form, ASIC may consent in writing to the minimum balance of
monies received in relation to insurance products being less than
the level specified in subregulation (6).
(7) For paragraph 981C(c) of the Act, if money is held in an account
maintained for section 981B of the Act:
(a) the financial services licensee is entitled to the interest on the
account; and
(b) the interest on the account is not required to be paid into the
account;
only if the financial services licensee discloses to the client that the
financial services licensee is keeping the interest (if any) earned on
the account.
Interest and other earnings on investments
(8) For paragraph 981C(d) of the Act, interest or other earnings on:
(a) an investment of money withdrawn from an account
maintained for section 981B of the Act; or
(b) the proceeds of the realisation of such an investment;
must be dealt with in accordance with the written agreement
between the financial services licensee and the client under
subregulation (3).
7.8.03 How money to be dealt with if licensee ceases to be licensed etc
(1) For paragraph 981F(a) of the Act, this regulation applies if a
financial services licensee ceases to be licensed (including a
cessation because the financial services licensee’s licence has been
suspended or cancelled).
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Regulation 7.8.03
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(2) For paragraph 981F(b) of the Act, this regulation applies if a
financial services licensee:
(a) becomes insolvent under an administration; or
(b) is the subject of any of the following arrangements:
(i) the appointment of an administrator under section 436A,
436B or 436C of the Act;
(ii) the commencement of winding up;
(iii) the appointment of a receiver of property of the
financial services licensee, whether by a court or
otherwise;
(iv) the appointment of a receiver and manager of property
of the financial services licensee, whether by a court or
otherwise;
(v) entry into a compromise or arrangement with creditors
of the financial services licensee, or a class of creditors;
(vi) if the financial services licensee is deceased—
administration of the estate of the financial services
licensee under Part XI of the Bankruptcy Act 1966;
(vii) if the financial services licensee is deceased—
administration of the estate of the financial services
licensee under the law of an external Territory that
provides for the administration of the insolvent estate of
a deceased person;
(viii) an arrangement under the law of a foreign country that
provides for a matter mentioned in subparagraphs (i) to
(vii).
(3) For paragraph 981F(d) of the Act, this regulation applies if:
(a) a financial services licensee ceases to carry on a particular
activity authorised by the financial services licence; and
(b) money is paid in connection with that activity.
(4) For each person who is entitled to be paid money from an account
of the financial services licensee maintained for section 981B of
the Act, the account is taken to be subject to a trust in favour of the
person.
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(5) If money in an account of the financial services licensee
maintained for section 981B of the Act has been invested, for each
person who is entitled to be paid money from the account, the
investment is taken to be subject to a trust in favour of the person.
(6) Money in the account of the financial services licensee maintained
for section 981B of the Act is to be paid as follows:
(a) the first payment is of money that has been paid into the
account in error;
(b) if money has been received on behalf of insureds in
accordance with a contract of insurance, the second payment
is payment to each insured person who is entitled to be paid
money from the account, in the following order:
(i) the amounts that the insured persons are entitled to
receive from the moneys in the account in respect of
claims that have been made;
(ii) the amounts that the insured persons are entitled to
receive from the moneys in the account in respect of
other matters;
(c) if:
(i) paragraph (b) has been complied with; or
(ii) paragraph (b) does not apply;
the next payment is payment to each person who is entitled to
be paid money from the account;
(d) if the money in the account is not sufficient to be paid in
accordance with paragraph (a), (b) or (c), the money in the
account must be paid in proportion to the amount of each
person’s entitlement;
(e) if there is money remaining in the account after payments
made in accordance with paragraphs (a), (b) and (c), the
remaining money is taken to be money payable to the
financial services licensee.
(7) This regulation applies despite anything to the contrary in the
Bankruptcy Act 1966 or a law relating to companies.
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Part 7.8 Other provisions relating to conduct etc connected with financial products and
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Regulation 7.8.04
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7.8.04 Money to which Subdivision A of Division 2 of Part 7.8 of the
Act applies taken to be held in trust: breach of financial
services law
For paragraph 981H(3)(b) of the Act, if client money is held by an
investment mentioned in subregulation 7.8.02(5) following a
breach of a financial services law:
(a) the money is subject to a trust in favour of the client to the
extent that the client is entitled to the money; and
(b) any investment of the money is subject to a trust in favour of
the client to the extent that the client is entitled to the
investment; and
(c) the proceeds of a realisation of an investment of the money
are subject to a trust in favour of the client to the extent that
the client is entitled to the proceeds.
7.8.05 Money to which Subdivision A of Division 2 of Part 7.8 of the
Act applies taken to be held in trust: risk accepted by
insurer
(1) For paragraph 981H(3)(b) of the Act, this regulation applies if, in
relation to an insurance product:
(a) a financial services licensee is holding money to which
Subdivision A of Division 2 of Part 7.8 of the Act applies;
and
(b) the risk in relation to the insurance product has been accepted
by an insurer.
(2) The financial services licensee holds the money on trust for the
insurer in accordance with Division 2 of Part 7.8 of the Act, subject
to the agreement of the insurer.
(3) This regulation does not affect the operation of regulations 7.8.03
and 7.8.08.
(4) For paragraph 981C(c) of the Act, if money to which this
regulation applies is held in an account maintained for
section 981B of the Act:
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(a) the financial services licensee is entitled to the interest on the
account; and
(b) the interest on the account is not required to be paid into the
account.
7.8.06 Statement setting out terms of loan etc
For subsection 982C(1) of the Act, the financial services licensee
must give a client a disclosure document that contains, as far as
practicable, the matters required for Division 2 of Part 7.9 of the
Act.
7.8.06A Property exempt from Division 3 of Part 7.8 of the Act
For paragraph 984A(2)(a) of the Act, property given as security for
a standard margin lending facility is exempt from Division 3 of
Part 7.8 of the Act.
Note: Paragraph 984A(2)(a) of the Act provides that the regulations may
exempt property given in specified circumstances from some or all of
the provisions of Division 3 of Part 7.8 of the Act.
7.8.07 How property to which Division 3 of Part 7.8 of the Act to be
dealt with
(1) For paragraph 984B(1)(a) of the Act, this regulation sets out
requirements in relation to property to which Division 3 of Part 7.8
of the Act applies.
(2) The financial services licensee must hold the property on trust for
the benefit of the person who is entitled to it.
(3) If the client requests the financial services licensee, in writing, to
deposit the property in safe custody with an ADI:
(a) the licensee must deposit the property; or
(b) if the licensee does not comply with the request for any
reason, the licensee must notify the client, as soon as
practicable, of the failure to comply with the request.
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(4) If the client requests the financial services licensee, in writing, to
deposit the property in safe custody with a financial services
licensee that provides a custodial or depositary service for
section 766E of the Act:
(a) the licensee must deposit the property; or
(b) if the licensee does not comply with the request for any
reason, the licensee must notify the client, as soon as
practicable, of the failure to comply with the request.
(5) If the client requests the financial services licensee, in writing, to
deposit the property in safe custody in the place where the property
was deposited with, or received by, the licensee:
(a) the licensee must deposit the property in accordance with the
request; and
(b) if the licensee does not comply with the request for any
reason, the licensee must notify the client, as soon as
practicable, of the failure to comply with the request.
(6) If the client requests that the body corporate that issued or made
available the securities or managed investment products underlying
the property register the property in the name of a nominee
controlled by the financial services licensee, the financial services
licensee must arrange for the body corporate to register the
securities or managed investment products in that way.
(7) If:
(a) none of subsections (3) to (6) applies; and
(b) the property is not registered in the client’s name by the body
corporate that issued or made available the securities or
managed investment products underlying the property;
the financial services licensee must arrange to have the property
registered in the client’s name.
(8) A financial services licensee must not deposit property as security
for a loan or advance to the financial services licensee unless:
(a) the client owes the financial services licensee an amount in
connection with a transaction entered into by the financial
services licensee on the client’s behalf; and
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(b) the financial services licensee gives the client a written notice
that identifies the property and states that the dealer proposes
to deposit it as security for a loan or advance to the financial
services licensee; and
(c) the amount, or total of the amounts, that the client owes on
the day of the deposit is at least the amount of the loan or
advance.
(9) If a financial services licensee deposits property as security for a
loan or advance to the financial services licensee, in accordance
with subregulation (8):
(a) the financial services licensee must, not later than 1 business
day after the amount, or total of the amounts, that the client
owes on the day of the deposit are repaid, withdraw the
property from that deposit; and
(b) if, at the end of 3 months after the day of that deposit, or at
the end of any subsequent interval of 3 months, the property
has not been withdrawn from that deposit—the financial
services licensee must give the client written notice of that
fact.
(10) In this regulation:
property includes scrip, but does not include money.
7.8.08 Debts of financial services licensee in relation to premiums etc
(1) Subregulations (2) to (4) apply if:
(a) money is received by a financial services licensee:
(i) from, or on behalf of, an insured or intending insured, or
from another financial services licensee on behalf of an
insured or intending insured; and
(ii) as a premium or an instalment of a premium in
connection with a contract of insurance or a proposed
contract of insurance; and
(b) the risk, or a part of the risk, to which the contract or
proposed contract relates is accepted by or on behalf of an
insurer; and
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(c) the financial services licensee who so received the money is
informed of, or otherwise ascertains, the amount of the
premium or instalment to be paid.
(2) The financial services licensee who received the money must pay
to the insurer an amount equal to the amount of the premium or
instalment to be paid:
(a) in the period of 90 days (the relevant period) after:
(i) the day on which the cover provided by the insurer
under the contract starts to have effect; or
(ii) the first day of the period to which the instalment
relates; or
(b) if it is not practicable for the financial services licensee to
pay the amount in the relevant period—as soon as practicable
after the end of that period.
(3) If the financial services licensee has not received the amount of the
premium, or of an instalment of the premium, payable in respect of
a contract of insurance at the end of the relevant period, the
financial services licensee must notify the insurer in writing, not
later than 7 days after the end of the relevant period, that the
financial services licensee has not received the amount.
(4) Subregulation (3) does not apply if the financial services licensee
receives the amount:
(a) in the period of 7 days mentioned in subregulation (3); and
(b) before notifying the insurer in accordance with
subregulation (3).
(5) Subregulations (6) and (7) apply if:
(a) a financial services licensee receives money from, or on
behalf of:
(i) an insured or intending insured; or
(ii) another financial services licensee on behalf of an
insured or intending insured;
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as a premium or an instalment of a premium in connection
with a contract of insurance or a proposed contract of
insurance; and
(b) the risk, or a part of the risk, to which the contract or
proposed contract relates is accepted by or on behalf of an
insurer; and
(c) the financial services licensee who received the money has
not been informed of, and has not otherwise ascertained, the
amount of the premium or instalment to be paid.
(6) The financial services licensee who received the money must pay
the amount mentioned in subregulation (7) to the insurer:
(a) in the period of 90 days (the relevant period) after:
(i) the day on which the cover provided by the insurer
under the contract starts to have effect; or
(ii) the first day of the period to which the instalment
relates; or
(b) if it is not practicable for the financial services licensee to
pay the amount in the relevant period—as soon as practicable
after the end of that period.
(7) For subregulation (6), the amount is:
(a) for a new contract of insurance, an amount not less than the
lesser of:
(i) the amount of the money received; or
(ii) 75% of the amount fairly estimated by the financial
services licensee to be the premium or instalment that is
to be paid; and
(b) for a renewal of a contract of insurance, an amount not less
than the lesser of:
(i) the amount of the money so received; or
(ii) 75% of the previous year’s premium for the risk, or of
the last instalment of that years premium.
(8) Subregulation (9) applies if:
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(a) the risk, or a part of the risk, to which a contract of insurance
or a proposed contract of insurance relates is accepted by or
on behalf of an insurer; and
(b) the contract of insurance or proposed contract of insurance
has been, or is being, arranged or effected by a financial
services licensee (licensee 1), either directly or through
another financial services licensee; and
(c) licensee 1 has not been informed of, and has not otherwise
ascertained, the amount of a premium or of an instalment of a
premium to be paid in connection with the contract or
proposed contract.
(9) Licensee 1 must, notify the insurer in writing, within 10 days after
the day on which the risk, or that part of the risk, was accepted,
that:
(a) the risk, or that part of the risk, has been accepted; and
(b) licensee 1 does not know the amount of the premium or
instalment to be paid;
unless licensee 1 is informed of, or otherwise ascertains, the
amount of the premium or instalment to be paid before notifying
the insurer.
(10) Nothing in this regulation prevents:
(a) an insurer from making a contract or arrangement with a
financial services licensee providing for the financial services
licensee to pay an amount to the insurer before the time by
which the financial services licensee is required by the
provision concerned to pay that amount to the insurer; or
(b) an insurer from authorising a financial services licensee in
writing to pay on behalf of the insurer, out of the money
received by the financial services licensee as a premium or
instalment of a premium in respect of a contract of insurance
arranged with the insurer, any charges required by law to be
paid by the insurer in respect of the contract; or
(c) a financial services licensee from exercising any legal right
available to the financial services licensee to deduct from any
moneys payable by the financial services licensee to the
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insurer any remuneration payable by the insurer to the
financial services licensee in relation to a contract of
insurance.
(11) For subregulation (1) or (5), if the risk, or a part of the risk, to
which a contract or proposed contract mentioned in that
subregulation is accepted on behalf of an insurer by an insurance
intermediary other than the insurance financial services licensee
who received the moneys from or on behalf of the insured or
intending insured, the payment of the premium, or part of the
premium, by the financial services licensee to the intermediary is
taken to be a payment of the premium or part of the premium by
the financial services licensee to the insurer.
(12) For subregulation (3) or (8), if:
(a) a financial services licensee is required to notify an insurer in
accordance with that subregulation; and
(b) an insurance intermediary other than the financial services
licensee has accepted the risk, or a part of the risk, to which
the contract or proposed contract relates on behalf of the
insurer;
a notification by the financial services licensee to the intermediary
is taken to be a notification by the financial services licensee to the
insurer.
(13) Subregulations (14) and (15) apply if:
(a) a financial services licensee receives money from, or on
behalf of, an insured or intending insured in connection with
a contract of insurance or proposed contract of insurance; and
(b) at the end of 30 days after the day on which the money was
received, the risk, or a part of the risk, to which the contract
or proposed contract relates has not been accepted.
(14) If the risk has not been accepted, the financial services licensee
must, within 7 days after the end of the 30 day period:
(a) give notice to the insured or intending insured, in a form (if
any) approved by ASIC for this paragraph, that the risk has
not been accepted; and
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(b) return the money to the insured or intending insured.
(15) If a part of the risk to which the contract or proposed contract
relates has not been accepted, the financial services licensee must,
within 7 days after the end of the 30 day period:
(a) give notice to the insured or intending insured, in a form (if
any) approved by ASIC for this paragraph, of the extent to
which the risk has not been accepted; and
(b) return that part of the money that relates to the part of the risk
that has not been accepted to the insured or intending
insured.
(16) If a financial services licensee receives money from, or on behalf
of, an insurer for payment to, or on behalf of, an insured, the
financial services licensee must pay an amount equal to the money
to, or on behalf of, the insured:
(a) within 7 days after the day on which the financial services
licensee received the money; or
(b) if it is not practicable for the financial services licensee to
pay the amount in that period—as soon as practicable after
the end of the period.
(17) Nothing in subregulation (16) prevents:
(a) an insured from making a contract or arrangement with a
insurance financial services licensee providing for the
financial services licensee to pay an amount mentioned in
that subregulation to or on behalf of the insured before the
time by which the financial services licensee is required by
that subregulation to pay that amount to or on behalf of the
insured; or
(b) a financial services licensee from exercising any legal right
available to the financial services licensee to deduct from an
amount payable by the financial services licensee to the
insured any money payable by the insured to the financial
services licensee in connection with a contract of insurance.
(18) A person is guilty of an offence if the person contravenes
subregulation (2), (3), (6), (9), (14) or (16), whether or not it was
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done with the consent of the insurer or of the insured or intending
insured.
Penalty: 10 penalty units.
(19) Subregulation (18) does not apply if the person has a reasonable
excuse.
Note: A defendant bears an evidential burden in relation to the matter in
subregulation (18) (see subsection 13.3(3) of the Criminal Code).
(20) Strict liability applies to subregulation (18).
Note: For strict liability, see section 6.1 of the Criminal Code.
(21) If:
(a) under subregulation (2), (3), (6) or (9), a financial services
licensee is required to pay an amount to, or to notify, an
insurer; and
(b) under the contract or proposed contract of insurance
concerned the insurer is an underwriting member of Lloyd’s;
it is sufficient compliance with the subregulation if the financial
services licensee pays the amount to, or notifies, as the case may
be, the Lloyd’s broker concerned.
7.8.08A Limit of margin lending facility taken to be increased
(1) For paragraph 985E(3)(a) of the Act, the limit of a margin lending
facility is taken to be increased, despite subsection 985E(2) of the
Act, if:
(a) the increase is a result of a contribution of further secured
property or transferred securities that occurs without the prior
knowledge or agreement of the provider; and
(b) the provider permits the increase to continue; and
(c) the increase is no more than 5% of the current limit of the
margin lending facility (within the meaning given by
subsection 761EA(11) of the Act).
(2) If the limit of a margin lending facility is taken to be increased in
the circumstances mentioned in subregulation (1),
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Chapter 7 Financial services and markets
Part 7.8 Other provisions relating to conduct etc connected with financial products and
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Regulation 7.8.08A
108 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
subsection 985E(1) of the Act is modified by omitting ‘before the
critical day:’ and inserting ‘after the critical day:’.
Note: Paragraph 992C(1)(c) of the Act provides that the regulations may
provide that Part 7.8 of the Act applies as if specified provisions were
omitted, modified or varied as specified in the regulations.
(3) For subregulation (1), if:
(a) more than one contribution of further secured property or
transferred securities under the margin lending facility occurs
on a day; and
(b) each of the contributions is taken to increase the limit of the
facility; and
(c) either:
(i) the cumulative increase is no more than 5% of the
current limit of the margin lending facility; or
(ii) if the cumulative increase is more than 5% of the
current limit of the margin lending facility, the provider
ensures that the increases are reduced so that the
cumulative increase becomes no more than 5% of the
current limit of the margin lending facility;
the increases are taken to be one increase for this regulation.
Increase prior to assessment only to occur once
(4) Subregulation (5) applies if:
(a) the limit of a margin lending facility is taken to be increased
in the circumstances mentioned in subregulation (1); and
(b) an assessment has not yet been made in accordance with
section 985F of the Act.
(5) If the limit of the margin lending facility would be taken to
increase further in accordance with subregulation (1):
(a) the limit is taken not to be further increased until:
(i) an assessment has been made in accordance with
section 985F of the Act; and
(ii) it is assessed that the facility will not be unsuitable for
the client if the limit is increased; and
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Regulation 7.8.08B
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(b) the provider must ensure that the increase does not continue
unless paragraph (a) permits it.
If facility assessed as unsuitable
(6) If:
(a) the limit of a margin lending facility is taken to be increased
in the circumstances mentioned in subregulation (1); and
(b) the assessment made in accordance with section 985F of the
Act assesses that the facility is unsuitable for the client
because of the increased limit;
the limit is taken to be reduced to the limit of the margin lending
facility before the increase, and the provider must ensure that the
limit is reduced within 90 days of the day the assessment is made.
Facility not unsuitable for subsection 985K(4) of the Act
(7) For subsection 985K(4) of the Act, a margin lending facility is
taken not to be unsuitable if:
(a) the limit of the margin lending facility is taken to be
increased in the circumstances mentioned in
subregulation (1); and
(b) the assessment made in accordance with section 985F of the
Act assesses that the facility:
(i) is not unsuitable for the client; or
(ii) is unsuitable for the client because of the increased
limit; and
(c) in the case of subparagraph (b)(ii), the provider ensures that
the limit is reduced, within 90 days of the day the assessment
is made, to the limit of the margin lending facility before the
increase.
7.8.08B Exemption from requirement to make unsuitability
assessment
(1) For paragraph 992C(1)(a) of the Act, a person is exempt from the
requirement in paragraph 985E(1)(c) of the Act to make an
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Regulation 7.8.08B
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assessment if the margin lending facility mentioned in
paragraph 985E(1)(a) or (b) of the Act is a facility mentioned in
subregulation (2):
(a) in respect of the full amount of the loan, including any
interest, fees and charges; and
(b) in relation to which the client has not taken out a loan to fund
the secured property contributed by the client for establishing
the margin lending facility.
(2) For subregulation (1), the facility is a standard margin lending
facility (within the meaning given by subsection 761EA(2) of the
Act) under the terms of which:
(a) the credit provided must be applied wholly:
(i) to acquire one or more marketable securities, or a
beneficial interest in one or more marketable securities;
or
(ii) to repay another credit facility, under the terms of which
the credit provided was applied wholly to acquire one or
more marketable securities, or a beneficial interest in
one or more marketable securities; and
(b) the secured property mentioned in paragraphs (c) and (d) of
that subsection:
(i) consists wholly of one or more marketable securities, or
a beneficial interest in one or more marketable
securities; or
(ii) consists:
(A) partly of one or more marketable securities, or a
beneficial interest in one or more marketable
securities; and
(B) partly of cash given to the provider and held in
trust for the client for the sole purpose of
servicing obligations under the facility; and
(c) the liability of the client to the provider is limited to the
rights relating to the secured property.
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Regulation 7.8.09
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7.8.09 Reasonable inquiries etc about retail client: inquiries
(1) For paragraph 985G(1)(c) of the Act, the following inquiries about
a client are prescribed in relation to a margin lending facility, or a
margin lending facility whose limit is proposed to be increased,
within the meaning of subsection 761EA(1) of the Act:
(a) reasonable inquiries as to whether the client has taken out a
loan to fund the secured property or transferred securities
contributed by the client for establishing the margin lending
facility;
Note: This is sometimes referred to as ‘double gearing’.
(b) if a loan to fund the secured property or transferred securities
contributed by the client for establishing the margin lending
facility has been taken out—reasonable inquiries as to
whether the security for the loan includes the primary
residential property of the client;
(c) if there is a guarantor for the margin lending facility—
reasonable inquiries as to whether the guarantor has been
appropriately informed of, and warned about, the risks and
possible consequences of providing the guarantee;
(d) reasonable inquiries as to the amount of any other debt
incurred by the client;
(e) any other matter that ASIC has specified in a legislative
instrument for subregulation (2).
(2) ASIC may specify in a legislative instrument any matter ASIC
considers to be relevant for the purpose of establishing whether the
margin lending facility, or the margin lending facility with the
increased limit, is unsuitable for the client.
7.8.09A Modification of section 985G of the Act
For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act applies as
if section 985G of the Act were modified by inserting after
subsection (2) the following subsection:
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Chapter 7 Financial services and markets
Part 7.8 Other provisions relating to conduct etc connected with financial products and
financial services, other than financial product disclosure
Regulation 7.8.10
112 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
‘(2A) The regulations may provide that ASIC may specify in a
legislative instrument matters ASIC considers to be relevant
for the purposes of paragraph 985G(1)(c) of the Act.’
7.8.10 Circumstances in which margin lending facility is unsuitable
For paragraph 985H(2)(b) of the Act, a margin lending facility, or
a margin lending facility whose limit is proposed to be increased,
within the meaning of subsection 761EA(1) of the Act is unsuitable
for a retail client if the client:
(a) is, on an ongoing basis, unable to be contacted by any of the
usual means of communication; and
(b) has not appointed an agent to act on the client’s behalf.
7.8.10A Margin lending facility taken not to be unsuitable
For subsection 985K(4) of the Act, a margin lending facility is
taken not to be unsuitable:
(a) if:
(i) an assessment of unsuitability was undertaken in
accordance with the Act; and
(ii) the assessment reasonably concluded that the margin
lending facility is not unsuitable; or
(b) if a person is exempt under regulation 7.8.08B from the
requirement to make an assessment of unsuitability in
relation to the margin lending facility.
7.8.11 Particular categories of information to be shown in records
For paragraph 988E(g) of the Act, the following matters are
specified:
(a) all underwriting transactions entered into by the financial
services licensee;
(b) all financial products dealt with by the licensee under
instructions from another person;
(c) each person who gave instructions to deal with financial
products;
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(d) all property:
(i) that is not the property of the financial services licensee;
and
(ii) for which the financial services licensee, or a nominee
controlled by the financial services licensee, is
accountable;
(e) each person by whom, or for whom, property mentioned in
paragraph (d) is held;
(f) the extent to which property mentioned in paragraph (d) is:
(i) held in safe custody; or
(ii) deposited with a third party as security for a loan or
advance made to the financial services licensee;
(g) all transactions in relation to insurance products entered into
with, or on behalf of, foreign insurers.
7.8.11A Particular categories of information to be shown in records:
records of non-monetary benefit that is not conflicted
remuneration
(1) This regulation is made for paragraph 988E(g) and section 988F of
the Act.
(2) The following table sets out matters in relation to a non-monetary
benefit that:
(a) is given to a financial services licensee or a representative of
a financial services licensee; and
(b) either:
(i) is not conflicted remuneration in accordance with
paragraph 963C(b) of the Act, and is over $100; or
(ii) is not conflicted remuneration in accordance with
paragraph 963C(c) or (d) of the Act; or
Note: Particulars of the matters must be shown in the records kept by the
financial services licensee.
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Regulation 7.8.11A
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Item Matter
1 A description of the benefit
2 Either:
(a) the value of the benefit; or
(b) if the value is not known, the estimated value of the
benefit;
expressed as a dollar amount or as a range of dollars
3 The date on which the benefit was given
4 The name of the person who gave the benefit and, if
relevant, the number of the person’s financial services
licence
5 Whether the benefit was given to the licensee or to a
representative of the licensee
6 If the benefit was given to an authorised representative of
the licensee, the name and contact details of the authorised
representative
7 If the benefit was given to another representative of the
licensee, the name and contact details of the other
representative
(3) At the request of a person, a financial services licensee must give
the person the particulars in its records relating to the matters in
items 1 to 4 of the table for the last financial year.
(4) The licensee may require the person making the request to pay a
charge for obtaining the particulars.
(5) The amount of the charge must not exceed the reasonable costs that
the licensee incurs that are reasonably related to giving the
particulars (including any costs incurred in photocopying the
document containing the particulars).
Note: This would include the costs of collating the information.
(6) The licensee must give the particulars to the person as soon as
practicable, and no later than one month after the person makes the
request to the licensee.
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Regulation 7.8.12
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7.8.12 Requirements in relation to financial records of financial
services licensees
(1) For section 988F of the Act, the financial records of a financial
services licensee must be kept in sufficient detail as to show or
include, for basic deposit products:
(a) separate particulars of every transaction by the financial
services licensee; and
(b) the day on which, or the period during which, each
transaction by the financial services licensee took place.
(2) For section 988F of the Act, the financial records of a financial
services licensee must be kept in sufficient detail as to show or
include, for all financial products other than basic deposit products:
(a) the information mentioned in subregulation (1); and
(b) if the financial services licensee is not a partner in a firm—
separate particulars of each transaction by the financial
services licensee with, or for the account of:
(i) clients of the financial services licensee; or
(ii) the financial services licensee’s own account; or
(iii) other financial services licensees; or
(iv) representatives of the financial services licensee; or
(v) employees of the financial services licensee; and
(c) if the financial services licensee is a partner in a firm—
separate particulars of each transaction by the financial
services licensee with, or for the account of:
(i) clients of the financial services licensee other than the
partners in the firm; or
(ii) the partners in the firm; or
(iii) the financial services licensee’s own account; or
(iv) other financial services licensees; or
(v) representatives of the financial services licensee; or
(vi) employees of the financial services licensee; and
(d) copies of acknowledgments of the receipt of financial
products or documents of title to financial products.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.8 Other provisions relating to conduct etc connected with financial products and
financial services, other than financial product disclosure
Regulation 7.8.12A
116 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.8.12A Modification of section 989B of the Act
(1) For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act applies as
if subsection 989B(3) were modified to read as follows:
“(3) The licensee must, with the statement and balance sheet, lodge
with ASIC:
(a) for a licensee who is a limited licensee for the whole of a
financial year—a compliance certificate containing the
information and matters required by the regulations; or
(b) for a licensee who is a limited licensee for part of a financial
year:
(i) a compliance certificate containing the information and
matters required by the regulations for the part of the
financial year that the licensee was a limited licensee;
and
(ii) an auditor’s reporting containing the information and
matters required by the regulations for the part of the
financial year that the licensee was not a limited
licensee; or
(c) for all other licensees—an auditor’s report containing the
information and matters required by the regulations.
Note: Failure to comply with this subsection is an offence (see
subsection 1311(1)).”.
(2) For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act applies as
if section 989B of the Act were modified by inserting after
subsection 989B(3) the following subsection:
“(4) In this section:
class of product advice means financial product advice about a
class of products but does not include a recommendation about a
specific product in the class.
Example: A financial services licensee may give a recommendation about term
deposit products but must not make a specific recommendation that a
person deposit their money into a term deposit product offered by a
particular bank or building society.
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Regulation 7.8.12A
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limited financial service means the following financial services:
(a) financial product advice on self-managed superannuation
funds;
(b) financial product advice on superannuation products in
relation to a person’s existing holding in a superannuation
product but only to the extent required for:
(i) making a recommendation that the person establish a
self-managed superannuation fund; or
(ii) providing advice to the person on contributions or
pensions under a superannuation product;
(c) class of product advice on the following:
(i) superannuation products;
(ii) securities;
(iii) simple managed investment schemes;
(iv) general insurance products;
(v) life risk insurance products;
(vi) basic deposit products;
(d) arrange to deal in an interest in a self-managed
superannuation fund.
Note 1: See section 761A for the meaning of basic deposit product, financial
product advice, general insurance product, life risk insurance
product, self-managed superannuation fund and superannuation
product.
Note 2: Financial product advice on self-managed superannuation funds
includes advice about acquiring or disposing of an interest in a
self-managed superannuation fund.
limited licensee means a financial services licensee that:
(a) does not deal with money to which Division 2 of Part 7.8 of
the Act applies; and
(b) is only licensed to provide one or more limited financial
services.
simple managed investment scheme has the same meaning as in
the regulations.”.
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Chapter 7 Financial services and markets
Part 7.8 Other provisions relating to conduct etc connected with financial products and
financial services, other than financial product disclosure
Regulation 7.8.13
118 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.8.13 Auditor’s report with annual profit and loss statement and
balance sheet
(1) For subparagraph 989B(3)(b)(ii) or paragraph 989B(3)(c) of the
Act, an auditor’s report lodged with a true and fair profit and loss
statement and balance sheet in respect of a financial year must be
lodged with ASIC in the prescribed form.
(2) For subparagraph 989B(3)(b)(ii) or paragraph 989B(3)(c) of the
Act, an auditor’s report lodged with a true and fair profit and loss
statement and balance sheet in respect of a financial year must
contain a statement of the auditor’s opinion on the following
matters:
(a) the effectiveness of internal controls used by a financial
services licensee to comply with:
(i) Divisions 2, 3, 4, 5 and 6 of Part 7.8 of the Act; and
(ii) Division 7 of Part 7.8 of the Act other than
section 991A;
(b) whether each account required by sections 981B and 982B of
the Act to be maintained by the financial services licensee
has been operated and controlled in accordance with those
sections;
(c) whether all necessary records, information and explanations
were received from the financial services licensee.
7.8.13A Compliance certificate with profit and loss statement and
balance sheet
For paragraph 989B(3)(a) and subparagraph 989B(3)(b)(i) of the
Act, a compliance certificate lodged by a licensee with a true and
fair profit and loss statement and balance sheet in respect of a
financial year must:
(a) be lodged with ASIC in the prescribed form; and
(b) be signed by:
(i) if the licensee is an individual—the licensee; or
(ii) if the licensee is a corporation—an officer of the
corporation; or
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Regulation 7.8.14
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(iii) if the licensee is a partnership or the trustees of a trust—
a partner or trustee who performs duties in relation to
financial services.
7.8.14 Contents of annual profit and loss statement and balance
sheet and applicable accounting procedures
For paragraph 989C(a) of the Act, a true and fair profit and loss
statement and balance sheet in respect of a financial year must
contain a declaration by the financial services licensee that:
(a) the profit and loss statement and balance sheet give a true
and fair view of the matters stated in it; and
(b) if the licensee is required to lodge an auditor’s report under
subparagraph 989B(3)(b)(ii) or paragraph 989B(3)(c) of the
Act—the auditor’s report lodged with the profit and loss
statement and balance sheet is a true copy of the report on the
profit and loss statement and balance sheet of the financial
services licensee; and
(c) if the licensee is required to lodge a compliance certificate
under paragraph 989B(3)(a) or subparagraph 989B(3)(b)(i) of
the Act—the information in the compliance certificate lodged
with the profit and loss statement and balance sheet is
complete and accurate.
7.8.14A Lodgement of annual profit and loss statement and balance
sheet
For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act applies as
if paragraph 989D(1)(b) were modified to read as follows:
‘(b) if the licensee is:
(i) a body corporate that is a disclosing entity or a
registered scheme—the day that is 3 months
after the end of that financial year; or
(ii) a body corporate that is not a disclosing entity
or a registered scheme—the day that is 4
months after the end of that financial year.’.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.8 Other provisions relating to conduct etc connected with financial products and
financial services, other than financial product disclosure
Regulation 7.8.14B
120 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.8.14B Modification of section 990B of the Act
(1) For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act applies as
if subsection 990B(1) of the Act were modified by:
(a) omitting “must, within 1 month after beginning to hold the
licence,” and substituting “who is not a limited licensee
must”; and
(b) omitting “(4) and (5)” and substituting “(4), (5) and (5A)”.
(2) For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act applies as
if section 990B of the Act were modified by inserting after
subsection 990B(5) the following subsection:
“(5A) The licensee must appoint an auditor or auditors within:
(a) if the licensee was a limited licensee—one month after the
licensee ceased to be a limited licensee; or
(b) for all other licensees—one month after beginning to hold the
licence.”.
(3) For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act applies as
if subsection 990B(9) of the Act were modified to read as follows:
“(9) In this section:
class of product advice means financial product advice about a
class of products but does not include a recommendation about a
specific product in the class.
Example: A financial services licensee may give a recommendation about term
deposit products but must not make a specific recommendation that a
person deposit their money into a term deposit product offered by a
particular bank or building society.
limited financial services means the following financial services:
(a) financial product advice on self-managed superannuation
funds;
(b) financial product advice on superannuation products in
relation to a person’s existing holding in a superannuation
product but only to the extent required for:
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(i) making a recommendation that the person establish a
self-managed superannuation fund; or
(ii) providing advice to the person on contributions or
pensions under a superannuation product;
(c) class of product advice on the following:
(i) superannuation products;
(ii) securities;
(iii) simple managed investment schemes;
(iv) general insurance products;
(v) life risk insurance products;
(vi) basic deposit products;
(d) arrange to deal in an interest in a self-managed
superannuation fund.
Note 1: See section 761A for the meaning of basic deposit product, financial
product advice, general insurance product, life risk insurance
product, self-managed superannuation fund and superannuation
product.
Note 2: Financial product advice on self-managed superannuation funds
includes advice about acquiring or disposing of an interest in a
self-managed superannuation fund.
limited licensee means a financial services licensee that:
(a) does not deal with money to which Division 2 of Part 7.8 of
the Act applies; and
(b) is only licensed to provide one or more limited financial
services.
person means:
(a) an individual auditor; or
(b) an authorised audit company.
simple managed investment scheme has the same meaning as in
the regulations.”.
7.8.15 Appointment of auditor by financial services licensee
(1) For subsections 990B(7) and (8) of the Act, this regulation:
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(a) sets out matters related to the appointment of a firm as
auditor of the financial statements of a financial service
licensee; and
(b) modifies the effect of section 990E of the Act.
(1A) If an applicant for a financial services licence:
(a) specifies, in the application for the licence, the name of a
person or firm that is to be, or has been, appointed to audit
the applicant’s financial statements; and
(b) the auditor or auditors specified are appointed before the end
of 1 month after the licence takes effect;
the applicant is taken to have lodged a notice under
subsection 990B(6) of the Act.
(2) The appointment is taken to be an appointment of each person who
is:
(a) a member of the firm; and
(b) a registered company auditor;
whether the person is resident in Australia or not at the date of the
appointment.
(3) Unless subregulation (4) applies, the appointment of the members
of a firm as auditors that is taken by subregulation (2) to have been
made because of the appointment of the firm as auditor of the
holder is not affected by the dissolution of the firm.
(4) If a firm that has been appointed as auditor is reconstituted because
of the death, retirement or withdrawal of a member or members, or
because of the admission of a new member or new members, or
both:
(a) a person who:
(i) was taken under subregulation (2) to be an auditor of the
financial services licensee; and
(ii) has retired or withdrawn from the firm as previously
constituted;
is taken to have resigned as auditor as from the day of the
retirement or withdrawal; and
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(b) a person who:
(i) is a registered company auditor; and
(ii) is admitted to the firm;
is taken to have been appointed as an auditor of the holder as
from the date of the admission; and
(c) the reconstitution of the firm does not affect the appointment
of the continuing members of the firm who are registered
company auditors as auditors; and
(d) nothing in paragraphs (a) to (c) affects the operation of
section 990C of the Act.
(5) Sections 990F to 990H of the Act do not apply to a resignation
mentioned in paragraph (4)(a) unless:
(a) the person who is taken to have resigned was the only
member of the firm who was a registered company auditor;
and
(b) there is no member of the firm who is a registered company
auditor after the retirement or withdrawal of that person.
(6) A report or notice that purports to be made or given by a firm
appointed as auditor is taken not to have been duly made or given
unless it is signed by a member of the firm who is a registered
company auditor:
(a) in the firm’s name; and
(b) in his or her own name.
(7) If a vacancy in the office of an auditor continues, the surviving or
continuing auditor or auditors (if any) may act as auditor while the
vacancy continues.
(8) If a vacancy occurs in the office of an auditor, and there is no
surviving or continuing auditor of the financial services licensee,
the financial services licensee must, within 14 days after the
vacancy occurs appoint as auditor:
(a) a person who is eligible to act as auditor; or
(b) 2 or more persons each of whom is eligible to act as auditor;
or
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(c) a firm that is eligible to act as auditor; or
(d) 2 or more firms each of which is eligible to act as auditor; or
(e) a combination of persons and firms each of which is eligible
to act as auditor.
(9) If an auditor ceases to hold office in accordance with
paragraph 990E(a) or (d) of the Act, the financial services licensee
for which the auditor acted must lodge with ASIC a notice in the
prescribed form stating that the auditor has ceased to hold the
office.
7.8.16 When person is ineligible to act as auditor of financial services
licensee
(1) For section 990C of the Act, a person is ineligible to act as auditor
of a financial services licensee in any of the following
circumstances:
(a) the person is not a registered company auditor;
(b) the person is indebted in an amount exceeding $5 000 to:
(i) the financial services licensee; or
(ii) if the financial services licensee is a body corporate—to
a body corporate related to the financial services
licensee;
(c) a body corporate in which the person has a substantial
holding is indebted in an amount exceeding $5 000 to:
(i) the financial services licensee; or
(ii) if the financial services licensee is a body corporate—to
a body corporate related to the financial services
licensee;
(d) the person is a partner or employee of the financial services
licensee;
(e) if the financial services licensee is a body corporate—the
person is:
(i) an officer of the body; or
(ii) a partner, employer or employee of an officer of the
body; or
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(iii) a partner or employee of an employee of an officer of
the body.
(2) For section 990C of the Act, a firm is ineligible to act as auditor of
a financial services licensee at a particular time unless:
(a) at least 1 member of the firm is a registered company auditor
who is ordinarily resident in Australia; and
(b) if the business name under which the firm is carrying on
business is not registered under a law of a State or
Territory—a return has been lodged in the prescribed form
showing, in relation to each member of the firm:
(i) the member’s full name; and
(ii) the member’s address at that time; and
(c) no member of the firm is indebted in an amount exceeding
$5 000 to:
(i) the financial services licensee; or
(ii) if the financial services licensee is a body corporate—to
a body corporate related to the financial services
licensee; and
(d) no body corporate in which any member of the firm has a
substantial holding is indebted in an amount exceeding
$5 000 to:
(i) the financial services licensee; or
(ii) if the financial services licensee is a body corporate—to
a body corporate related to the financial services
licensee; and
(e) no member of the firm is a partner or employee of the
financial services licensee; and
(f) if the financial services licensee is a body corporate—no
member of the firm is:
(i) an officer of the body; or
(ii) a partner, employer or employee of an officer of the
body; or
(iii) a partner or employee of an employee of an officer of
the body; and
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(g) if the financial services licensee is a body corporate—no
officer of the financial services licensee receives any
remuneration from the firm for acting as a consultant to it on
accounting or auditing matters.
(3) For paragraphs (1)(b), (1)(c), (2)(c) and (2)(d), a debt owed by a
natural person to a body corporate is to be disregarded if:
(a) the body corporate is:
(i) an Australian ADI; or
(ii) a body corporate registered under the Life Insurance Act
1995; and
(b) the debt arose because of a loan that the body corporate or
entity made to the person in the ordinary course of its
ordinary business; and
(c) the person used the amount of the loan to pay the whole or
part of the purchase price of premises that the person uses as
their principal place of residence.
(4) For subregulations (1) and (2), a person is taken to be an officer of
a body corporate if:
(a) the person is an officer of a related body corporate; or
(b) unless ASIC directs that this paragraph not apply in relation
to the person—the person has, at any time within the
immediately preceding period of 12 months, been an officer
or promoter of the body corporate or of a related body
corporate.
(5) For this regulation, a person is not taken to be an officer of a body
corporate by reason only of being or having been the liquidator of
the body corporate or of a related body corporate.
(6) For this regulation, a person is not taken to be an officer of a body
corporate:
(a) by reason only of having been appointed as an auditor of that
body corporate or of a related body corporate; or
(b) for any purpose relating to taxation, a public officer of a body
corporate; or
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(c) by reason only of being or having been authorised to accept
on behalf of the body corporate or a related body corporate:
(i) service of process; or
(ii) any notices required to be served on the body corporate
or related body corporate.
7.8.17 Priority to clients’ orders
(1) For paragraph 991B(3)(b) of the Act, if a participant in a licensed
market:
(a) enters into a transaction; and
(b) complies with all of the participant’s obligations in relation
to the transaction under the market integrity rules and the
operating rules of the licensed market;
subsection 991B(2) of the Act does not apply in relation to the
transaction.
(2) Subject to subregulation (3), for paragraph 991B(3)(b) of the Act,
subsection 991B(2) of the Act does not apply to a transaction if, at
the time that the instruction is issued, the financial services
licensee is not a participant in the licensed market on which the
particular financial product is being traded.
(3) Subregulation (2) does not apply if:
(a) the financial services licensee deals, or has dealt, in a
financial product traded on that market:
(i) on the licencee’s own behalf (whether directly or
through an agent or other representative); or
(ii) on behalf of a client; or
(b) an associate of the financial services licensee is a participant
in the market mentioned in that subregulation.
7.8.18 Instructions to deal through licensed markets
(1) For section 991C of the Act, this regulation applies in relation to
all instructions received by a financial services licensee to deal in
financial products through licensed markets, except to the extent
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that the market integrity rules, or the operating rules of a licensed
market in relation to which the financial services licensee is a
participant, otherwise provide.
(2) Subject to subregulation (3), the financial services licensee must
transmit, in the sequence in which they are received, all
instructions to deal in a class of financial products at or near the
market price for financial products of that class prevailing
immediately before execution of the instructions.
(3) If:
(a) a financial services licensee proposes to deal in a class of
financial products on the financial services licensee’s own
account; and
(b) the person by whom or on whose instructions the instructions
for the dealing are to be transmitted is aware of instructions
of a client of the financial services licensee to deal in that
class of financial products at or near the market price for a
financial product of that class prevailing at that time (being
instructions that have not been transmitted);
that person must not transmit, and must not give instructions to any
other person to transmit, the instructions to give effect to the
proposal of the financial services licensee to deal in that class of
financial products before the instructions of the client are
transmitted.
(4) If:
(a) during a particular period, a financial services licensee
transmits instructions (whether or not those instructions
consist of, or include, instructions giving effect to a proposal
of the financial services licensee to deal in the class of
financial products concerned on the financial services
licensee’s own account) to deal in a class of financial
products at or near the market price for a financial product of
that class prevailing immediately before execution of the
instructions; and
(b) dealings in that class of financial products are effected
pursuant to those instructions;
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the financial services licensee must allocate the dealings to those
instructions:
(c) in the sequence in which the dealings were effected; and
(d) in the sequence in which the financial services licensee
transmitted the instructions.
(5) A financial services licensee (licensee 1), or a director, partner,
officer or employee of a financial services licensee, must not
disclose to any other financial services licensee, or to a person
engaged or employed in the business of licensee 1 or any other
financial services licensee, instructions of a client to deal in a class
of financial products, except:
(a) to the extent necessary to execute the instructions; or
(b) as required by this Act or any other law.
(6) In this regulation, a reference to the transmission by a financial
services licensee of instructions to deal in a class of financial
products is a reference:
(a) if the financial services licensee has direct access to the
licensed market on which the instructions are to be
executed—to the transmission of the instructions to that
licensed market; or
(b) if the financial services licensee has access to the licensed
market on which the instructions are to be executed only
through another financial services licensee—to the
transmission of the instructions to that other financial
services licensee.
7.8.19 Records of instructions to deal on licensed markets and
foreign markets
(1) For section 991D of the Act, this regulation applies in relation to:
(a) instructions received by a financial services licensee to deal
in financial products, on behalf of a client, through licensed
markets or through other financial markets (whether inside or
outside Australia); and
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(b) instructions received by a financial services licensee to deal
in financial products, on the financial service licensee’s own
account, through licensed markets or through other financial
markets (whether inside or outside Australia).
(2) The financial services licensee must keep records setting out brief
particulars of the following matters:
(a) the instructions;
(b) if the instructions were received on behalf of a client—the
client;
(c) the person who gave the instructions to the financial services
licensee;
(d) the date and time of receipt of the instructions, and the person
who received the instructions;
(e) the date and time of transmission of the instructions, and the
person who transmitted the instructions;
(f) the date and time of execution of the instructions.
(3) For subregulation (2), if:
(a) a financial services licensee transmits for execution on a
financial market outside Australia and the external Territories
instructions to deal in financial products; and
(b) it is not reasonably practicable for the financial services
licensee to set out the date and time of execution of those
instructions in its records;
the financial services licensee must set out the date and time as
precisely as is reasonably practicable.
(4) The financial services licensee must keep records relating to
instructions given by a client to deal in financial products in a
manner that makes the records identifiable separately from records
relating to instructions to deal in financial products on the financial
services licensee’s own account.
(5) The financial services licensee must keep the records mentioned in
subregulation (2) for at least 5 years after the particulars are
created.
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7.8.20 Dealings with non-licensees
(1) For subsection 991E(1) of the Act:
(a) section 991E does not apply in relation to the sale or
purchase of financial products mentioned in
paragraph 764A(1)(a) of the Act by the body corporate by
which the financial products were made available if the
financial products are made available in accordance with
Chapters 5C and 6D of the Act; and
(b) section 991E does not apply to the sale or purchase of
financial products mentioned in paragraph 764A(1)(b) of the
Act by the body corporate by which the financial products
were made available if the financial products are made
available in accordance with Chapters 5C and 7 of the Act.
(1A) Subject to subregulation (1B), for subsection 991E(1) of the Act,
the subsection does not apply to a transaction if, at the time of the
transaction, the financial services licensee is not a participant in the
licensed market on which the particular financial product is being
traded.
(1B) Subregulation (1A) does not apply if:
(a) the financial services licensee deals, or has dealt, in a
financial product traded on that market:
(i) on the licensee’s own behalf (whether directly or
through an agent or other representative); or
(ii) on behalf of a client; or
(b) an associate of the financial services licensee is a participant
in the market mentioned in that subregulation.
(2) For subsection 991E(2) of the Act:
(a) a disclosure referred to in paragraph 991E(1)(c) of the Act
must be given by the financial services licensee to the
non-licensee:
(i) in writing; and
(ii) if the transaction is an on-market transaction—in
relation to the particular transaction, a class of
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on-market transactions which includes the transaction,
or all on-market transactions; and
(b) a consent referred to in paragraph 991E(1)(d) of the Act:
(i) may be given orally, or in writing, by the non-licensee;
and
(ii) is effective until it is revoked, either orally or in writing,
by the non-licensee; and
(c) if the non-licensee gives an oral consent to the financial
services licensee, or revokes a consent orally, the financial
services licensee must:
(i) make a written record of the consent or revocation; and
(ii) provide a copy of the written record to the non-licensee
within 10 business days after the day on which the
consent is given or revoked.
(3) For subsection 991E(3) of the Act, a brokerage, commission or
other fee is permitted in respect of a transaction between a
financial services licensee and a non-licensee only if:
(a) the financial services licensee is a participant in a licensed
market; and
(b) the financial services licensee has complied with all of the
financial services licensee’s obligations in relation to the
transaction under the market integrity rules and the operating
rules of the relevant licensed market; and
(c) the market integrity rules or the operating rules permit a
brokerage, commission or fee to be charged to non-licensees
of the same kind as the non-licensee; and
(d) the non-licensee has authorised the financial services licensee
to charge the non-licensee in respect of the transaction; and
(e) the financial services licensee discloses to the non-licensee
the amount of the brokerage, commission or fee, or the basis
on which it will be calculated, before the non-licensee gives
the authorisation mentioned in paragraph (d); and
(f) the amount of the brokerage, commission or fee is reasonable
having regard to the amount that would have been charged by
the financial services licensee to the non-licensee if the
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financial services licensee had entered the transaction with
the non-licensee as agent and not on its own behalf.
(4) For subregulation (3):
(a) an authorisation given to the financial services licensee by
the non-licensee:
(i) may be given orally, or in writing, by the non-licensee;
and
(ii) is effective until it is revoked, either orally or in writing,
by the non-licensee; and
(b) if the non-licensee gives an oral authorisation to the financial
services licensee, or revokes an authorisation orally, the
financial services licensee must:
(i) make a written record of the authorisation or revocation;
and
(ii) provide a copy of the written record to the non-licensee
within 10 business days after the day on which the
authorisation is given or revoked; and
(c) a disclosure of the amount of the brokerage, commission or
fee, or the basis on which it will be calculated must be given
by the financial services licensee to the non-licensee:
(i) in writing: and
(ii) if the transaction is an on-market transaction—in
relation to the particular transaction, a class of
on-market transactions that includes the transaction, or
all on-market transactions.
(5) For subsection 991E(7) of the Act, a financial services licensee
must:
(a) keep records of the following matters relating to each
financial products transaction entered into by the financial
services licensee on the financial service licensee’s own
behalf:
(i) a description of the financial products transaction;
(ii) the date and time of receipt of the instructions for the
financial products transaction;
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(iii) the date and time of transmission of the instructions to
the licensed market concerned;
(iv) the date and time of execution of the instructions;
(v) the source of the funds, or financial products, used to
effect the financial products transaction; and
(b) keep the records in a manner that makes the records
identifiable separately from records of the financial services
licensee.
Note: Other requirements for record-keeping are in Division 6 of Part 7.8 of
the Act.
7.8.20A Dealings involving employees of financial service licensees—
risk insurance products
For subsection 991F(1) of the Act, a financial services licensee and
one or more employees of the financial services licensee may, on
their own behalves, jointly acquire a financial product if it is a risk
insurance product as defined in section 761A of the Act.
7.8.21 Dealings involving employees of financial services licensees
(1) For subsection 991F(2) of the Act, that subsection does not have
effect in relation to:
(a) a bank; or
(b) a body corporate that gives credit in good faith to a person
(not being a director of the body corporate) employed by the
body corporate, or by another body corporate that is related
to the first body corporate, to enable the person to acquire
financial products that are:
(i) fully paid shares in the body corporate; and
(ii) to be held in beneficial ownership by the person.
(1A) For subsection 991F(2) of the Act, that subsection does not have
effect in relation to a financial services licensee that gives credit in
good faith to a person employed by:
(a) the financial services licensee; or
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(b) a person related to the financial services licensee;
to enable the person to acquire an insurance product in relation to a
credit facility provided by the financial services licensee to the
person.
Example: Mortgage insurance is an insurance product in relation to a credit
facility.
(2) For subsection 991F(3) of the Act, a body corporate that is related
to a financial services licensee may act as the agent of an employee
of the financial services licensee, in respect of the acquisition
mentioned in that subsection, only if:
(a) before the acquisition, the employee has informed the related
body corporate that the employee is acquiring, or agreeing to
acquire, the financial product on the employee’s own behalf;
and
(b) the financial services licensee has in place arrangements with
the related body corporate to allow the licensee to be
informed of, and to gain access to records relating to, the
acquisition.
(3) For subsection 991F(3) of the Act, a body corporate may act as the
agent of a person who is an employee of a financial services
licensee that is a participant in a licensed market and is so
employed in connection with a business of dealing in financial
products, in respect of an acquisition mentioned in that subsection,
if:
(a) the body corporate holds an Australian financial services
licence; and
(b) the body corporate is a participant in the same licensed
market as the licensee; and
(c) the employer has given consent in writing to the particular
acquisition before the acquisition takes place; and
(d) the employee gives the employer a copy of the confirmation
of the transaction.
(4) For subsection 991F(3) of the Act, a person who is:
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(a) an employee of a financial services licensee that is a
participant in a licensed market; and
(b) employed in connection with a business of dealing in
financial products;
may, on the person’s own behalf, acquire, or agree to acquire, a
financial product that is able to be traded on that licensed market,
without the licensee’s acting as an agent in respect of the
transaction, if the person’s employment is not directly connected
with the licensee’s business of dealing in financial products on that
licensed market.
(5) Subject to subregulation (6), for subsection 991F(3) of the Act, the
subsection does not apply unless:
(a) the particular financial product that is acquired or proposed
to be acquired is a financial product traded on a market in
which the financial services licensee is not a participant at the
time of the acquisition or the proposed acquisition; or
(b) the particular financial product is a derivative the value of
which is derived from a financial product mentioned in
paragraph (a).
(6) Subregulation (5) does not apply if:
(a) the financial services licensee deals, or has dealt, in a
financial product traded on that market:
(i) on the licensee’s own behalf (whether directly or
through an agent or other representative); or
(ii) on behalf of a client; or
(b) an associate of the financial services licensee is a participant
in the market mentioned in that subregulation.
7.8.21A Anti-hawking provisions if no Product Disclosure Statement
is required
For paragraph 992C(1)(c), Part 7.8 of the Act applies as if the
following subsection was inserted after subsection 992A(3):
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Other provisions relating to conduct etc connected with financial products and financial
services, other than financial product disclosure Part 7.8
Regulation 7.8.21B
Corporations Regulations 2001 137
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
“(3AA) Paragraphs 992A(3)(c), (d) and (e) do not apply to a person that
offers a financial product mentioned in paragraph 1012D(7A)(a) if
the regulated person complies with the requirements of paragraphs
1012D(7A)(b) to (e) in respect of the product.”
7.8.21B Anti-hawking provisions if no Product Disclosure Statement
is required—carbon units, Australian carbon credit units
and eligible international emissions units
For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act applies in
relation to a carbon unit, an Australian carbon credit unit or an
eligible international emissions unit as if paragraphs 992A(3)(c),
(d) and (e) (including the note) read as follows:
“(c) informed that:
“(i) for a carbon unit, the person should consider all
information about the financial product that is published
on the website of the Clean Energy Regulator as
mentioned in section 202 of the Clean Energy Act 2011
before becoming bound to acquire a financial product;
and
(ii) for an Australian carbon credit unit, the person should
consider all information about the financial product that
is published on the website of the Clean Energy
Regulator as mentioned in section 162 of the Carbon
Credits (Carbon Farming Initiative) Act 2011 before
becoming bound to acquire a financial product; and
(iii) for an eligible international emissions unit, the person
should consider all information about the financial
product that is published on the website of the Clean
Energy Regulator as mentioned in section 61 of the
Australian National Registry of Emissions Units Act
2011 before becoming bound to acquire a financial
product; and
(d) clearly informed of the importance of using that information
when making a decision to acquire a financial product; and
(e) given the option of having the information on that website
read out to that person.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.8 Other provisions relating to conduct etc connected with financial products and
financial services, other than financial product disclosure
Regulation 7.8.22
138 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Note: Failure to comply with this subsection is an offence (see
subsection 1311(1)).”.
7.8.22 Hours for hawking certain financial products
For paragraph 992A(3)(a) of the Act, the prescribed hours are from
8 am to 9 pm on a day in the State or Territory in which the person
to whom the offer is made is located, excluding:
(a) any Sunday; and
(b) New Year’s Day; and
(c) Australia Day; and
(d) Good Friday; and
(e) the Monday following Good Friday (Easter Monday); and
(f) Anzac Day; and
(g) Christmas Day; and
(h) 26 December (Boxing Day).
7.8.22A Modification of Part 7.8
(1) For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act applies as
if paragraph 992A(3)(e) of the Act were modified so as to read:
‘(e) given:
(i) the name and contact details of the product
issuer; and
(ii) an indication of the nature of the information
contained in the Product Disclosure Statement
relating to the product; and
(iii) the option of receiving, by way of oral
communication, any information that is
required to be included in a Product Disclosure
Statement for the product.’.
(2) For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act applies as
if the following subsection were added after subsection 992A(3A)
of the Act:
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Other provisions relating to conduct etc connected with financial products and financial
services, other than financial product disclosure Part 7.8
Regulation 7.8.22B
Corporations Regulations 2001 139
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
‘(3B) A regulated person must not influence a client’s decision to
elect not to receive the information mentioned in
paragraph (3)(e) (other than by asking the client if he or she
wishes to do so).’.
7.8.22B Return of financial product: first home saver accounts
(1) For paragraph 992A(4)(b) of the Act, this regulation applies in
relation to an FHSA.
(2) If the FHSA holder has never held another FHSA, it is a
requirement of the exercise of the right to return the FHSA in
circumstances in which the moneys paid to acquire the FHSA are
subject to payment restrictions that:
(a) the FHSA holder must:
(i) notify the FHSA provider, in writing or electronically,
that the FHSA holder wishes to exercise the right to
return the FHSA; and
(ii) ask the FHSA provider to pay the entire balance of the
FHSA to the FHSA holder; and
(iii) give the FHSA provider a written declaration that the
FHSA holder has never previously held an FHSA; or
(b) the FHSA holder must:
(i) notify the FHSA provider, in writing or electronically,
that the FHSA holder wishes to exercise the right to
return the FHSA; and
(ii) no later than 1 month after notifying the FHSA
provider, ask the FHSA provider to pay the entire
balance of the FHSA to another FHSA nominated in the
request.
(3) If the FHSA holder has held another FHSA, it is a requirement of
the exercise of the right to return the FHSA in circumstances in
which the moneys paid to acquire the FHSA are subject to payment
restrictions that the FHSA holder must:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.8 Other provisions relating to conduct etc connected with financial products and
financial services, other than financial product disclosure
Regulation 7.8.23
140 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) notify the FHSA provider, in writing or electronically, that
the FHSA holder wishes to exercise the right to return the
FHSA; and
(b) no later than 1 month after notifying the FHSA provider, ask
the FHSA provider to pay the entire balance of the FHSA to
another FHSA nominated in the request.
7.8.23 Return of financial product: transfer between superannuation
entities or RSAs
(1) For paragraph 992A(4)(b) of the Act, this regulation applies in
relation to a superannuation product or an RSA product that has
been issued to the holder of the product as a result of a transfer
between superannuation entities or RSAs.
(2) It is a requirement of the exercise of the right to return the
superannuation product or RSA product that, if the money to be
repaid includes:
(a) restricted non-preserved benefits; or
(b) preserved benefits;
the holder of the superannuation product, or the RSA holder, must
nominate a superannuation fund, approved deposit fund or RSA
into which the money representing restricted non-preserved
benefits or preserved benefits is to be repaid.
(3) For paragraph 992A(4)(b) of the Act, if the right of return is
exercised, the responsible person must return the money as
directed.
7.8.24 Right of return not to apply
For subparagraph 992A(4)(c)(i) of the Act, the following
subclasses of financial products are excluded from
subsection 992A(4) of the Act:
(a) a financial product offered or issued under a distribution
reinvestment plan or switching facility;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Other provisions relating to conduct etc connected with financial products and financial
services, other than financial product disclosure Part 7.8
Regulation 7.8.25
Corporations Regulations 2001 141
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) a financial product the acquisition of which is an additional
contribution required by an existing agreement or contract;
(c) a financial product issued as consideration for an offer made
under a takeover bid under Chapter 6 of the Act;
(d) an interim contract of insurance within the meaning of
subsection 11(2) of the Insurance Contracts Act 1984;
(e) a superannuation product that is issued in relation to:
(i) a non-public offer superannuation entity; or
(ii) a public offer superannuation entity mentioned in
paragraph 7.6.01(1)(b), (c) or (d);
(f) a risk insurance product that is:
(i) of less than 12 months duration; and
(ii) a renewal of an existing product on the terms and
conditions to which the product is currently subject.
7.8.25 Variation of amount to be repaid
For paragraph 992A(4)(b) of the Act, if a financial product is
subject to a distribution, the amount that would otherwise be repaid
on the exercise of the right to return the financial product may be
reduced by the amount of that distribution.
7.8.26 Exemption from application of section 992A of the Act
For paragraph 992C(1)(a) of the Act, section 992A of the Act does
not apply to a person to the extent that the person is offering a
financial product for issue or sale in relation to:
(a) a litigation funding scheme mentioned in
regulation 5C.11.01; or
(b) a litigation funding arrangement mentioned in
regulation 5C.11.01.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 1 Preliminary
Regulation 7.9.01
142 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 7.9—Financial product disclosure and other
provisions relating to issue and sale of
financial products
Division 1—Preliminary
7.9.01 Interpretation
(1) In this Part:
amount includes a nil amount.
annuity has the same meaning as in regulation 1.05 of the SIS
Regulations.
contact details, in relation to a superannuation entity, means:
(a) the name of the superannuation entity and, if relevant, of the
sub-plan; and
(b) a contact address for the superannuation entity; and
(c) a contact person and telephone number for the contact
person.
contact person, in relation to a superannuation entity, means a
named individual, or a person holding a designated office or
position, who is available to receive and deal with inquiries or
complaints by product holders (as the case may be).
contribution includes a benefit that is rolled over or transferred to
a fund.
exit charge means a charge that:
(a) is made against:
(i) a product holder’s benefits in a fund or financial
product; or
(ii) a product holder or another person on the product
holder’s behalf; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Preliminary Division 1
Regulation 7.9.01
Corporations Regulations 2001 143
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) is only made when a payment is:
(i) made in respect of a product holder; or
(ii) transferred.
fund information:
(a) in relation to a superannuation product, means information:
(i) relating to the management, financial condition and
investment performance of either or both of a
superannuation entity and any relevant sub-plan (within
the meaning of section 1017DA of the Act); and
(ii) required to be given under this Division; and
(b) in relation to an RSA product, means information:
(i) relating to the management, financial condition and
investment performance of an RSA; and
(ii) required to be given under this Division.
fund reporting period means a reporting period for fund
information.
Government co-contribution means a Government co-contribution
payable under the Superannuation (Government Co-contribution
for Low Income Earners) Act 2003.
legal personal representative has the meaning given by section 10
of the SIS Act.
lost member has the meaning given by the SIS regulations.
lost RSA holder has the meaning given by the RSA regulations.
net amount of Government co-contribution received means all
amounts of Government co-contributions credited to the member
of a superannuation fund (other than a self-managed
superannuation fund) or an RSA holder, less any amounts deducted
by the superannuation provider or providers to reimburse it or them
for repaying a co-contribution amount to the Commissioner of
Taxation, during the reporting period.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 1 Preliminary
Regulation 7.9.01
144 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
net earnings means the investment return on the assets of a fund
after payment of transaction costs, government charges, taxes and
duties and charges relating to the management of investment of
fund assets.
prescribed net earnings rate, in relation to a fixed-rate option
offered by a capital guaranteed fund for a period, means the net
earnings rate declared, in advance, by the fund.
remuneration, for an Australian financial services licensee or an
authorised representative, means a payment that:
(a) is made to the Australian financial services licensee or
authorised representative because a superannuation interest is
issued to a member; and
(b) is not made under an agreement by which the member, or
another person on the member’s behalf, has retained the
Australian financial services licensee or authorised
representative on a fee-for-service basis.
Note: Also see subregulation (5).
RSA has the meaning given by section 8 of the Retirement Savings
Accounts Act 1997.
sub-fund, in relation to a capital guaranteed fund, means a segment
of a public offer superannuation fund that has the following
characteristics:
(a) the sub-fund has separately identifiable assets and separately
identifiable beneficiaries;
(b) the interest of each beneficiary of the sub-fund is determined
by reference only to the conditions governing that sub-fund;
(c) there is no transfer of assets, benefits or money between the
sub-fund and another sub-fund without a transfer of a
corresponding beneficial interest;
(d) the insurance and administration costs of the sub-fund are
attributable only to that sub-fund.
superannuation provider means any of the following:
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Preliminary Division 1
Regulation 7.9.01
Corporations Regulations 2001 145
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the trustee of a complying superannuation fund, within the
meaning of subsection 995-1(1) of the Income Tax
Assessment Act 1997;
(b) the provider of an RSA, within the meaning of section 12 of
the Retirement Savings Accounts Act 1997;
(c) the trustee of a constitutionally protected fund, within the
meaning of subsection 995-1(1) of the Income Tax
Assessment Act 1997.
transaction cost means:
(a) brokerage paid because of an investment transaction; or
(b) a cost arising from maintenance of a property investment; or
(c) stamp duty on an investment transaction.
unfunded defined benefits fund means a defined benefits fund
under which all or some of the amounts that will be required for
the payment of a benefit are not paid into the fund until the
member concerned becomes entitled to receive the benefit.
withdrawal benefit has the same meaning as in the SIS
Regulations.
(2) In this Part, unless the contrary intention appears, a reference to a
member is taken to mean:
(a) in relation to a superannuation entity—a person who:
(i) is a member of the entity; or
(ii) receives a pension from the entity; or
(iii) has deferred his or her entitlement to receive a benefit
from the entity; and
(b) in relation to an approved deposit fund—a depositor in the
fund; and
(c) in relation to a pooled superannuation trust—a unit-holder.
(3) In a Division of this Part, a reference to a fund is a reference to a
fund of the kind to which the Division applies.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 1 Preliminary
Regulation 7.9.02
146 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(5) For the definition of remuneration, payment is taken to have been
given to an Australian financial services licensee or an authorised
representative for issuing an interest to a member if:
(a) issuing the interest is taken into account to increase the
payment given to the Australian financial services licensee or
authorised representative for other matters (for example,
bonus commission); or
(b) the payment is given after the interest is issued and only if
the member remains a member of the fund (for example,
trailing commission).
7.9.02 Sub-plans
(1) This regulation applies if the trustee of a regulated superannuation
fund proposes to make a determination as to whether a sub-plan
should be made.
(2) In making a determination, the trustee must have regard to all
relevant matters, including each of the following:
(a) whether there is a common factor in a segment of the fund
(for example, whether a group of members of the fund have
the same employer);
(b) whether the governing rules of the fund provide for a
particular segment to be a sub-plan.
(3) For subsection 1017C(9) of the Act, the sub-plan is a relevant
sub-plan.
(4) For paragraph 761E(7)(a) of the Act, if:
(a) a person is a member of a superannuation fund in relation to
a sub-plan; and
(b) either:
(i) the person’s membership changes to membership in
relation to another sub-plan; or
(ii) the person holds interests in 2 or more sub-plans at the
same time;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Preliminary Division 1
Regulation 7.9.02A
Corporations Regulations 2001 147
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
the change to membership in relation to the other sub-plan is taken
to be the issue of a new interest in the superannuation fund.
(5) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to the fund (including a
sub-plan) as set out in Part 1 of Schedule 10A.
7.9.02A Alternative ways of giving Statement
(1) For subsection 1015C(4) of the Act, the following are alternative
ways of giving a Statement to a person:
(a) making the Statement available to the person in any way that:
(i) is agreed to by the person; and
(ii) allows the regulated person to be satisfied, on
reasonable grounds, that the person has received the
Statement;
(b) making the Statement available to the person’s agent in any
way that:
(i) is agreed to by the agent; and
(ii) allows the regulated person to be satisfied, on
reasonable grounds, that the agent has received the
Statement.
(2) If a provision of the Act or these Regulations imposes additional
requirements in relation to a matter in subregulation (1), the
alternative way of giving a Statement is subject to the
requirements.
Note: Regulation 7.9.02B is an example of an additional requirement.
7.9.02B Product Disclosure Statement in electronic form
(1) For paragraph 1015C(5)(b) of the Act, a statement that is to be
given in electronic form must, as far as practicable, be presented in
a way that will allow the person to whom it is given to keep a copy
of it so that the person can have ready access to it in the future.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 1 Preliminary
Regulation 7.9.02B
148 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) A statement that is to be given in electronic form must be presented
in a way that clearly identifies the information that is part of the
statement.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Arrangements for Product Disclosure Statements in relation to superannuation products
and RSA products Division 2
Regulation 7.9.03
Corporations Regulations 2001 149
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2—Arrangements for Product Disclosure
Statements in relation to superannuation
products and RSA products
Subdivision 2.1—Preliminary
7.9.03 Application of Division 2
This Division applies in relation to superannuation products and
RSA products.
Note: See paragraphs 764A(1)(g) and (h) of the Act.
Subdivision 2.2—Late provision of Product Disclosure
Statement for certain members of regulated
superannuation fund, public offer superannuation
fund or successor fund
7.9.04 Product Disclosure Statement to be provided later
(1) For section 1012F of the Act, the following superannuation
products are specified:
(a) a superannuation interest issued by the trustee of a regulated
superannuation fund that is not a public offer superannuation
fund, other than:
(ii) a financial product taken to be issued because of
regulation 7.1.04E; or
(iii) an annuity or pension taken to be issued because of
subregulation 7.9.02(4); or
(iv) an interest in a self-managed superannuation fund that is
not acquired at the time that the fund is established;
(b) a pension issued by a superannuation fund the rules of which
do not allow a member to receive accumulated benefits in a
form other than a pension from that fund;
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 2 Arrangements for Product Disclosure Statements in relation to
superannuation products and RSA products
Regulation 7.9.05
150 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) a superannuation interest issued by the trustee of a successor
fund in relation to the transfer of benefits in the fund.
(2) For paragraph 1020G(1)(c) of the Act:
(a) section 1012B of the Act is modified in its application in
relation to the specified superannuation product as set out in
Part 17 of Schedule 10A; and
(b) section 1012I of the Act is modified in its application in
relation to the specified superannuation product as set out in
Part 17 of Schedule 10A.
Subdivision 2.3—Product Disclosure Statement for retirement
savings account
7.9.05 Situation in which Product Disclosure Statement is not
required
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to an RSA product as set out
in Part 2 of Schedule 10A.
Subdivision 2.4—Additional obligations for eligible rollover
funds
7.9.06A Relevant superannuation entities
For the definition of relevant superannuation entity in
subsection 1016A(1) of the Act, a public offer superannuation
entity is specified.
7.9.06B Application forms
(1) For paragraph 1016A(2)(f) of the Act, the following situation in
which a restricted issue occurs is prescribed:
(a) the financial product is a superannuation product;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Arrangements for Product Disclosure Statements in relation to superannuation products
and RSA products Division 2
Regulation 7.9.07
Corporations Regulations 2001 151
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the interest is issued by the trustee of a public offer
superannuation entity in relation to the payment of benefits to
the entity:
(i) from an EPSSS; and
(ii) in accordance with an application made under the
provisions of section 243 of the SIS Act, as applied by
subregulation (2) (the applied provisions);
(c) if the application is the first application under the applied
provisions made to the trustee of the public offer
superannuation entity by the trustee of the EPSSS on behalf
of any person—the application is an eligible application.
(2) For paragraph (1)(b), section 243 of the SIS Act applies in relation
to the payment of benefits from the EPSSS to a public offer
superannuation entity as if:
(a) a reference in that section to a transferor fund were a
reference to the EPSSS; and
(b) a reference in that section to an eligible rollover fund were a
reference to the public offer superannuation entity.
Subdivision 2.5—Product Disclosure Statement for insurance
options
7.9.07 Modification of Act: Product Disclosure Statement in relation
to insurance options
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to a superannuation entity or
an RSA as set out in Part 3 of Schedule 10A.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 2A Product Disclosure Statement for warrants
Regulation 7.9.07A
152 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2A—Product Disclosure Statement for warrants
7.9.07A Warrants
(1) This regulation applies in relation to warrants.
(2) For paragraph 1020G(2)(a) of the Act, section 1010A of the Act is
modified by adding after subsection 1010A(1):
‘(1A) Despite subsection (1), this Part applies in relation to a
financial product to which regulation 7.9.07A of the
Corporations Regulations 2001 applies.’.
(3) For paragraph 761E(7)(a) of the Act, if the financial product is
entered into, or acquired, on a financial market through an
arrangement made by a financial services licensee acting on behalf
of another person:
(a) the financial services licensee is not taken to be the issuer of
the financial product; and
(b) the warrant issuer is taken to be the issuer of the financial
product.
(4) For paragraph 761E(7)(a) of the Act, if the financial product is
entered into, or acquired, on a financial market through an
arrangement made by an authorised representative of a financial
services licensee acting on behalf of another person (not being the
licensee):
(a) the financial services licensee is not taken to be the issuer of
the financial product; and
(b) the warrant issuer is taken to be the issuer of the financial
product.
(5) For paragraph 1013F(2)(f) of the Act:
(a) information that is, or is required to be, disclosed to the
market in relation to the underlying thing from which a
warrant derives its value, including information published by
a market operator in relation to financial products (including
warrants and types of warrants) in the form of market data or
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Product Disclosure Statement for warrants Division 2A
Regulation 7.9.07A
Corporations Regulations 2001 153
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
educational material which is generally made available to the
public by the market operator is a matter that may be taken
into account for section 1013F of the Act; and
(b) other information that a market operator is required to
disclose to the market, in accordance with the Act, including:
(i) information that was required to be disclosed to the
market operator; and
(ii) information that the operator was required to disclose in
order to meet its obligations under the Act;
is a matter that may be taken into account for section 1013F
of the Act; and
(c) information that is generally made available to the public by
a market operator in relation to financial products, including
information published about a warrant that is entered into or
acquired on a financial market in the form of market data or
educational material, is a matter that may be taken into
account for section 1013F of the Act.
(6) For paragraph 1017B(3)(c) of the Act, a way in which the warrant
issuer may notify a holder of a matter to which that paragraph
applies is by giving the relevant information to the operator of the
financial market on which the warrant was entered into or
acquired.
(7) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
in relation to a warrant as if the words ‘but not more than 3 months
after, the change or event occurs’ in item 1 of the table in
subsection 1017B(5) of the Act were omitted.
(8) In this regulation:
warrant issuer, in relation to a warrant, means the person who:
(a) determines the terms of the warrant, including the rights and
conditions of the warrant; and
(b) is responsible for obligations owed under the terms of the
warrant.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 2B Product Disclosure Statement for market-traded derivatives
Regulation 7.9.07B
154 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2B—Product Disclosure Statement for
market-traded derivatives
7.9.07B Product Disclosure Statements for certain market-traded
derivatives
(1) For paragraph 1020G(1)(c) of the Act, subregulations (2) and (3)
apply if:
(a) the standard terms and conditions relating to a type of
derivative are:
(i) specified by the market operator; and
(ii) made generally available to the public; and
(b) the financial services licensee in relation to the derivative is
taken to be the issuer of the derivative under
subsection 761E(6) of the Act; and
(c) a retail client for the derivative has agreed to the terms and
conditions as applicable to the financial product or products
that are the subject of the transaction.
(2) Subsection 1013D(1) of the Act is modified in its application to the
derivative as if the information required by paragraphs
1013D(1)(b), (c), (d) and (f) were required to be included as
general information about the type of derivative, including, for
example:
(a) general information about exercise prices for the type of
derivative; and
(b) general information about expiry dates for the type of
derivative; and
(c) general information about exercise styles for the type of
derivative.
(3) For paragraph 1013F(2)(f) of the Act:
(a) information that is, or is required to be, disclosed to the
market in relation to the underlying thing from which a
derivative derives its value, including information published
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Product Disclosure Statement for market-traded derivatives Division 2B
Regulation 7.9.07C
Corporations Regulations 2001 155
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
by a market operator in relation to financial products
(including derivatives and types of derivatives) in the form of
market data or educational material which is generally made
available to the public by the market operator is a matter that
may be taken into account for section 1013F of the Act; and
(b) other information that a market operator is required to
disclose to the market, in accordance with the Act, including:
(i) information that was required to be disclosed to the
market operator; and
(ii) information that the operator was required to disclose in
order to meet its obligations under the Act;
is a matter that may be taken into account for section 1013F
of the Act; and
(c) information that is generally made available to the public by
a market operator in relation to financial products, including
information published about derivatives and types of
derivatives in the form of market data or educational
material, is a matter that may be taken into account for
section 1013F of the Act.
7.9.07C Remedies for Product Disclosure Statements for certain
market-traded derivatives
For paragraph 1016F(7)(a) of the Act, financial products that are
derivatives are excluded from section 1016F if the operating rules
of a licensed market or a licensed CS facility permit the closing out
of the derivatives by the matching up of the arrangement with
another arrangement of the same kind under which a person has
assumed an offsetting position.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 2BA Product Disclosure Statement for discretionary mutual funds
Regulation 7.9.07CA
156 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2BA—Product Disclosure Statement for
discretionary mutual funds
7.9.07CA Extension of Product Disclosure Statement requirements
to wholesale clients
(1) For paragraph 949B(1)(e) of the Act, a regulated person must give
a wholesale client a Product Disclosure Statement or a
Supplementary Product Disclosure Statement for a financial
product if:
(a) the financial product is offered or issued by a discretionary
mutual fund (within the meaning given by subsections 5(5)
and (6) of the Financial Sector (Collection of Data) Act
2001); and
(b) the regulated person would be required to give the Statement
if the product were offered or issued to a retail client.
(2) The Product Disclosure Statement or Supplementary Product
Disclosure Statement required to be given under this regulation
must be the same as that which would be given to a retail client.
Note: Failure to comply with this regulation is an offence punishable by a
fine of up to 50 penalty units or imprisonment for 1 year, or both—see
section 1311 and item 272A of Schedule 3 to the Corporations Act
2001.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Situations where a Product Disclosure Statement is not required Division 2C
Regulation 7.9.07D
Corporations Regulations 2001 157
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2C—Situations where a Product Disclosure
Statement is not required
7.9.07D Product Disclosure Statement not required for offers of
bundled contracts of insurance
For paragraph 1020G(1)(c) of the Act, section 1012D of the Act is
modified by adding before subsection 1012D(10):
‘(9G) In an issue situation or a sale situation, the regulated person
does not have to give the client a Product Disclosure
Statement for a financial product if:
(a) the financial product is a general insurance product; and
(b) the product would be provided to the person as a retail
client; and
(c) the financial product would be provided as part of a
contract of insurance that offers more than one kind of
insurance cover; and
(d) the regulated person reasonably believes that the client
does not intend to acquire the product.
7.9.07E Product Disclosure Statement not required if offer of
financial product is declined
For paragraph 1020G(1)(c) of the Act, section 1012D of the Act is
modified by adding before subsection 1012D(10):
‘(9J) In an issue situation or sale situation, the regulated person
does not have to give the client a Product Disclosure
Statement for a financial product if:
(a) the situation is an offer to issue or sell the financial
product; and
(b) the client informs the regulated person, in the course of
the contact during which the offer is made, that the
client does not intend to acquire the financial product;
and
(c) no issue or sale results from the offer.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 2C Situations where a Product Disclosure Statement is not required
Regulation 7.9.07F
158 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(9K) For paragraph (9J)(c), the client must inform the regulated
person explicitly but may inform the regulated person orally
or in any other way.’.
7.9.07F Product Disclosure Statement not required if the client is not
contactable
For paragraph 1020G(1)(c) of the Act, section 1012D of the Act is
modified by adding before subsection 1012D(10):
‘(9L) In an issue situation, the regulated person does not have to
give the client a Product Disclosure Statement, if:
(a) the regulated person has not given the client a Product
Disclosure Statement because the regulated person did
not need to give a Product Disclosure Statement at or
before the time when it would otherwise be required to
be given because of the operation of section 1012F or
1012G of the Act, regulation 7.9.04 or Part 17 of
Schedule 10A; and
(b) either:
(i) the regulated person:
(A) has an address for the client; and
(B) is satisfied, on reasonable grounds that
the address is incorrect; and
(C) has taken reasonable steps to locate the
client but is unable to do so; or
(ii) the regulated person:
(A) does not have an address for the client;
and
(B) is unable to obtain an address for the
client; and
(C) has taken reasonable steps to locate the
client but has been unable to do so.
(9M) If a regulated person does not give a client a Product
Disclosure Statement in reliance on subsection (9L), and the
regulated person becomes aware of the address or location of
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Situations where a Product Disclosure Statement is not required Division 2C
Regulation 7.9.07FA
Corporations Regulations 2001 159
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
the client, the regulated person must give the client a Product
Disclosure Statement as soon as practicable.’.
7.9.07FA Product Disclosure Statement not required for certain
specified products
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if section 1012D of the Act were modified by inserting the
following subsection after subsection 1012D(7):
‘Recommendation, issue or sale situation—when Product
Disclosure Statement not required
(7A) In a recommendation situation, an issue situation or a sale
situation, the regulated person does not have to give the client a
Product Disclosure Statement for the financial product if:
(a) the product is:
(i) a basic deposit product; or
(ii) a facility for making non-cash payments (see
section 763D) that is related to a basic deposit product;
or
(iii) a traveller’s cheque; and
(b) the regulated person has provided information about the cost
of the product (if any) to the client; and
(c) the regulated person has informed the client as to whether or
not any amounts will or may be payable by the holder of the
product, in respect of the product, after its acquisition; and
(ca) if the product is a protected account under the Banking Act
1959—the regulated person has informed the client that:
(i) the account-holder may be entitled to payment under the
financial claims scheme; and
(ii) payments under the scheme are subject to a limit for
each depositor; and
(iii) information about the financial claims scheme can be
obtained from the APRA website at
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 2C Situations where a Product Disclosure Statement is not required
Regulation 7.9.07FB
160 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
http://www.apra.gov.au and the APRA hotline on
1300 13 10 60; and
(d) the regulated person has asked the client whether or not the
client would like further information about the amounts
mentioned in paragraph (c); and
(e) if the client indicates that the client would like the further
information about the amounts mentioned in paragraph (c)—
the regulated person has provided that information.’.
7.9.07FB Product Disclosure Statement not required if client not in
this jurisdiction
For paragraph 1020G(1)(c) of the Act, section 1012D of the Act is
modified by inserting after subsection 1012D(8):
“(8A) In a recommendation situation, an issue situation or a sale
situation, the regulated person does not have to give the client a
Product Disclosure Statement for the financial product if the client
is not in this jurisdiction.”
7.9.07FC Product Disclosure Statement not required general
insurance situation
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified by adding after section 1014E of the Act the following
section:
“1014EA General insurance product situation in which only a
supplementary product disclosure statement need be
given
(1) This section applies if:
(a) a person (the client) acquires a general insurance product (the
original product) from another person (the regulated
person); and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Situations where a Product Disclosure Statement is not required Division 2C
Regulation 7.9.07FC
Corporations Regulations 2001 161
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the client received a Product Disclosure Statement (the
original PDS) relating to the product as required by the Act;
and
(c) the contract of insurance provides a renewable insurance
cover (within the meaning of subsection 58(1) of the
Insurance Contracts Act 1984); and
(d) the regulated person offers to renew the client’s contract of
insurance (the new product); and
(e) the regulated person is required to give the client a Product
Disclosure Statement (the new PDS) relating to the new
product; and
(f) the original PDS contains some but not all of the information
that the new PDS is required to contain.
(2) The regulated person may give the client a new PDS.
(3) If the regulated person does not give the client a new PDS, the
regulated person must give the client a supplementary Product
Disclosure Statement that contains the additional information.
(4) If the regulated person gives the client a supplementary Product
Disclosure Statement under subsection (3), for the purposes of this
Act:
(a) the original PDS is taken to be the new PDS; and
(b) the new PDS is taken to have been given to the client as
required by this Act.”
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 2D Preparation and content of Product Disclosure Statements
Regulation 7.9.07J
162 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2D—Preparation and content of Product
Disclosure Statements
7.9.07J Only 1 responsible person for a Product Disclosure
Statement
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if section 1013A of the Act were modified by adding after
subsection 1013A(3):
‘(3A) A Product Disclosure Statement for a product that is not a
jointly issued product may be prepared by, or on behalf of,
only 1 responsible person.’.
7.9.07K Definition of defective: Product Disclosure Statement,
Short-Form PDS or Replacement Product Disclosure
Statement
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if section 1022A of the Act were varied by omitting
paragraph (b) of the definition of defective in subsection (1) and
the following paragraph were inserted:
‘(b) if it is a Product Disclosure Statement, a Short-Form PDS or
a Replacement Product Disclosure Statement—either:
(i) it is not prepared in accordance with section 1013A; or
(ii) there is an omission from the Product Disclosure
Statement, Short-Form PDS or Replacement Product
Disclosure Statement of material required by
section 1013C, other than material required by
section 1013B or 1013G; or’.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Obligation to make information publicly available: registrable superannuation entities
Division 2E
Regulation 7.9.07L
Corporations Regulations 2001 163
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2E—Obligation to make information publicly
available: registrable superannuation entities
Subdivision 2E.1—Obligation to make product dashboard
publicly available
7.9.07L Modification of Act
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if section 1017BA of the Act were modified as set out in Part 6A
of Schedule 10A.
7.9.07M Source of power for this Subdivision
This Subdivision is made for paragraphs 1017BA(1)(c) and (e) and
subsection 1017BA(2) of the Act.
7.9.07N Definitions
In this Subdivision:
lifecycle exception has the meaning given by subsection 29TC(2)
of the SIS Act.
lifecycle MySuper product means a MySuper product to which a
lifecycle exception applies.
lifecycle stage, of a MySuper product offered by a regulated
superannuation fund, means a subclass of members of the fund
who hold the MySuper product, determined on the basis of:
(a) age; or
(b) age and the factors mentioned in regulation 9.47 of the SIS
Regulations.
offering period means:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 2E Obligation to make information publicly available: registrable
superannuation entities
Regulation 7.9.07N
164 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) for a MySuper product other than a lifecycle MySuper
product:
(i) if the MySuper product has been offered for less than 10
financial years and there is no predecessor product—the
number of whole financial years for which the product
has been offered; or
(ii) if the MySuper product and a predecessor product have
been offered for a total of less than 10 financial years—
the number of whole financial years for which the
products have been offered; or
(b) for a lifecycle stage of a lifecycle MySuper product:
(i) if the lifecycle stage of the MySuper product has been
offered for less than 10 financial years and there is no
equivalent lifecycle stage of a predecessor product—the
number of whole financial years for which the lifecycle
stage has been offered; or
(ii) if the lifecycle stage of the MySuper product and an
equivalent lifecycle stage of a predecessor product have
been offered for a total of less than 10 financial years—
the number of whole financial years for which the
lifecycle stage of the MySuper product and the
predecessor product have been offered.
predecessor product, in relation to a MySuper product, means a
default investment option in existence on 30 June 2013 in relation
to which, if a member’s accrued default amount were attributed to
the MySuper product, the RSE licensee would be exempted from
disclosure requirements under subregulation 9.46(2) of the SIS
Regulations.
reporting standard means a reporting standard determined by
APRA under subsection 13(1) of the Financial Sector (Collection
of Data) Act 2001, as in force from time to time.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Obligation to make information publicly available: registrable superannuation entities
Division 2E
Regulation 7.9.07P
Corporations Regulations 2001 165
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.07P Meaning of MySuper product dashboard reporting standards
For this Subdivision, a reporting standard is a MySuper product
dashboard reporting standard if the reporting standard contains a
clause stating that it relates to information that will be included in a
product dashboard for a MySuper product.
7.9.07Q Product dashboard—how information must be set out
(1) Information for a MySuper product must be set out in a product
dashboard as follows (including the headings):
PRODUCT DASHBOARD
Return target
Return
Comparison between return target
and return
Level of investment risk
Statement of fees and other costs
(2) For a lifecycle MySuper product, the information mentioned in
each item of the table must be set out in relation to each lifecycle
stage of the product.
7.9.07R Product dashboard—return target
(1) The return target for a MySuper product other than a lifecycle
MySuper product must be worked out in accordance with the
MySuper product dashboard reporting standards.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 2E Obligation to make information publicly available: registrable
superannuation entities
Regulation 7.9.07S
166 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) The return target for a lifecycle MySuper product must be worked
out in relation to each lifecycle stage of the product in accordance
with the MySuper product dashboard reporting standards.
(3) The period in relation to which the return target must be worked
out is the period of 10 years starting at the beginning of the current
financial year.
7.9.07S Product dashboard—return
MySuper product other than lifecycle MySuper product
(1) The return for a MySuper product other than a lifecycle MySuper
product must be worked out in accordance with the MySuper
product dashboard reporting standards.
(2) The period in relation to which the return must be worked out is:
(a) the last 10 whole financial years, if:
(i) the MySuper product has been offered for at least 10
financial years; or
(ii) the MySuper product and a predecessor product have
been offered for a total of at least 10 financial years; or
(b) the offering period.
Lifecycle MySuper product
(3) The return for a lifecycle MySuper product must be worked out in
relation to each lifecycle stage of the product in accordance with
the MySuper product dashboard reporting standards.
(4) The period in relation to which the return in relation to a lifecycle
stage of a lifecycle MySuper product must be worked out is:
(a) the last 10 whole financial years, if:
(i) the lifecycle stage of the MySuper product has been
offered for at least 10 financial years; or
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Obligation to make information publicly available: registrable superannuation entities
Division 2E
Regulation 7.9.07T
Corporations Regulations 2001 167
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) the lifecycle stage of the MySuper product and an
equivalent stage of a predecessor product have been
offered for a total of at least 10 financial years; or
(b) the offering period.
7.9.07T Product dashboard—comparison between return target and
return
MySuper product other than lifecycle MySuper product
(1) The comparison between the return target and the return for a
MySuper product other than a lifecycle MySuper product must be
worked out in accordance with the MySuper product dashboard
reporting standards.
(2) The period in relation to which the comparison must be worked out
is:
(a) the last 10 whole financial years, if:
(i) the MySuper product has been offered for at least 10
financial years; or
(ii) the MySuper product and a predecessor product, or a
lifecycle stage have been offered for a total of at least
10 financial years; or
(b) the offering period.
Lifecycle MySuper product
(3) The comparison between the return target and the return for a
lifecycle MySuper product must be worked out in relation to each
lifecycle stage of the product in accordance with the MySuper
product dashboard reporting standards.
(4) The period in relation to which the comparison in relation to a
lifecycle stage of a MySuper product must be worked out is:
(a) the last 10 whole financial years, if:
(i) the lifecycle stage of the MySuper product has been
offered for at least 10 financial years; or
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 2E Obligation to make information publicly available: registrable
superannuation entities
Regulation 7.9.07U
168 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) the lifecycle stage of the MySuper product and an
equivalent stage of a predecessor product have been
offered for a total of at least 10 financial years; or
(b) the offering period.
7.9.07U Comparison to be set out as a graph
(1) A product dashboard must set out a comparison mentioned in
regulation 7.9.07T as a graph.
(2) The graph must contain:
(a) a column representing the return for each year in the
comparison period; and
(b) a line representing the moving average return target for the
comparison period; and
(c) a line representing the moving average return for the
comparison period.
(3) The column and the lines mentioned in subregulation (2) must be
identified in accordance with the MySuper product dashboard
reporting standards.
(4) In this regulation:
comparison period means the period mentioned in
subregulation 7.9.07S(3) that is applicable in the circumstances.
moving average return has the meaning given by the MySuper
product dashboard reporting standards.
moving average return target has the meaning given by the
MySuper product dashboard reporting standards.
7.9.07V Product dashboard—level of investment risk
(1) The level of investment risk for a MySuper product other than a
lifecycle MySuper product must be worked out in accordance with
the MySuper product dashboard reporting standards.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Obligation to make information publicly available: registrable superannuation entities
Division 2E
Regulation 7.9.07W
Corporations Regulations 2001 169
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) The level of investment risk for a lifecycle MySuper product must
be worked out in relation to each lifecycle stage of the product in
accordance with the MySuper product dashboard reporting
standards.
(3) The level of investment risk must be expressed using the relevant
risk label set out in the MySuper product dashboard reporting
standards.
(4) The period in relation to which the level of investment risk must be
worked out is the current financial year.
7.9.07W Product dashboard—statement of fees and other costs
(1) The statement of fees and other costs for a MySuper product other
than a lifecycle MySuper product must be worked out in
accordance with the MySuper product dashboard reporting
standards.
(2) The statement of fees and other costs for a lifecycle MySuper
product must be worked out in relation to each lifecycle stage of
the product in accordance with the MySuper product dashboard
reporting standards.
(3) The period in relation to which the statement of fees and other
costs must be worked out is the current financial year.
(4) For paragraph 1017BA(1)(c) of the Act, the period is 14 days after
a change to the fees or other costs.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 3 Dealing with money received for financial product before the product is
issued
Regulation 7.9.08
170 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 3—Dealing with money received for financial
product before the product is issued
7.9.08 Accounts
(1) For subparagraph 1017E(2)(a)(ii) of the Act, the following
accounts are prescribed:
(a) an account with a foreign deposit taking institution that is
regulated by a foreign regulatory body that ASIC has
approved in writing for this paragraph;
(b) an account with a cash management trust;
(c) a statutory fund under section 29 of the Life Insurance Act
1995.
(2) For paragraph 1017E(2)(c) of the Act, a product provider to which
subsection 1017E(2) of the Act applies must:
(a) operate an account to which paragraph 1017E(2)(a) of the
Act applies as a trust account; and
(b) designate the account to be a trust account; and
(c) hold all moneys paid into the account on trust for the benefit
of the person who is entitled to the moneys.
(3) For paragraph 1020G(1)(c) of the Act, if money received under
section 1017E of the Act is paid into an account under
subregulation 7.8.01(6), Part 7.8 of the Act applies to the money.
Note: See also subregulation 7.8.01(7).
(4) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if section 1017E of the Act were modified by omitting
paragraph 1017E(2)(b) and inserting the following paragraph:
‘(b) any money may be paid into the account, provided that:
(i) money to which this section applies; and
(ii) interest on the amount from time to time standing to the
credit of the account;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Dealing with money received for financial product before the product is issued
Division 3
Regulation 7.9.08A
Corporations Regulations 2001 171
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
is identified and held in accordance with all other provisions
of this section; and’.
7.9.08A Dealing with interest
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if section 1017E of the Act were modified by adding after
subsection 1017E(2C):
‘(2D) In relation to money to which this section applies:
(a) the product provider is entitled to the interest on the
account; and
(b) the interest on the account is not required to be paid into
the account;
only if the product provider discloses to the person who paid
the money that the product provider is keeping the interest (if
any) earned on the account.’.
7.9.08B Crediting of payments before money is received
(1) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if section 1017E of the Act were modified by adding after
subsection 1017E(1):
‘(1A) This section also applies to money paid by a product provider
in the following circumstances:
(a) the product provider knows, or believes on reasonable
grounds, that money (the client’s money) will be paid to
the product provider to acquire, or acquire an increased
interest in, one or more of the financial products
mentioned in paragraph (1)(a) or (b) from the product
provider (whether or not the acquisition would be by a
person as a retail client);
(b) either:
(i) the financial product or increased interest was
offered in this jurisdiction; or
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 3 Dealing with money received for financial product before the product is
issued
Regulation 7.9.08C
172 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) the application for the financial product or
increased interest was made in this jurisdiction;
or
(iii) the money will be received in this jurisdiction;
(c) before receiving the client’s money, the product
provider pays an equivalent amount of money (the
product provider’s money) into an account described in
subsection (2).’.
(2) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if section 1017E of the Act were modified by adding after
subsection 1017E(5):
‘(5A) If subsection (1A) applies:
(a) the product provider is not required to comply with this
section in relation to the client’s money; and
(b) subsections (2A), (2B), (2C), (2D), (3), (4), (5) and (6)
apply to the product provider’s money as if the money
had been paid by the person who paid, or is expected to
pay, the client’s money.’.
(3) For paragraph 1017E(3)(d) of the Act, money may be taken out of
an account if:
(a) the circumstances described in the modified
subsection 1017E(1A) of the Act exist; and
(b) after paying the product provider’s money, the product
provider becomes aware, or has reasonable grounds to
believe, that the client’s money will not be paid.
7.9.08C Money held in trust for a superannuation product or RSA
product
For subsection 1017E(2C) of the Act, if money is paid to a product
provider for a financial product that is a superannuation product or
an RSA product, as defined in section 761A of the Act:
(a) subsection 1017E(2A) of the Act does not apply in relation to
the money; and
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Financial services and markets Chapter 7
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products Part 7.9
Dealing with money received for financial product before the product is issued
Division 3
Regulation 7.9.08D
Corporations Regulations 2001 173
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the money is taken to be held in trust by the product provider
for the benefit of the person who is entitled to the money.
7.9.08D Statutory funds under the Life Insurance Act 1995
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
in relation to an account mentioned in paragraph 7.9.08(1)(c) of
these Regulations as if paragraph 1017E(2)(b) were omitted.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 3A Rights and obligations related to Product Disclosure Statement—first
home saver accounts
Regulation 7.9.08E
174 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 3A—Rights and obligations related to Product
Disclosure Statement—first home saver accounts
7.9.08E Application forms
For paragraph 1016A(2)(f) of the Act, the following situation in
which a restricted issue occurs is prescribed:
(a) an FHSA has become inactive as described in
subsection 22(1) of the First Home Saver Accounts Act 2008;
(b) the FHSA provider has sought to pay the entire balance of
the FHSA to the superannuation interest mentioned in
subsection 22(3) of that Act.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.09
Corporations Regulations 2001 175
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4—Content of Product Disclosure Statements
Subdivision 4.1—Preliminary
7.9.09 Application of Division 4
(1) This Division applies in relation to:
(a) superannuation products; and
(b) RSA products; and
(c) annuity products; and
(d) FHSA products; and
(e) a margin loan; and
(f) a superannuation product to which Subdivision 4.2B of
Division 4 of Part 7.9 applies; and
(g) a simple managed investment scheme to which
Subdivision 4.2C of Division 4 of Part 7.9 applies.
(2) Each of the Subdivisions of this Division has an application
provision:
(a) stating the types of entity in relation to which the Subdivision
applies; and
(b) referring to any provisions that limit or restrict the
application of the Subdivision or a particular provision.
Note: Information content requirements are set out in the main provisions of
section 1013D of the Act. These Regulations set out a more detailed
statement of the information required under subsection 1013D(1) that
the retail clients of superannuation products and RSA products would
reasonably require for the purpose of making a decision whether to
acquire the financial product.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.09A
176 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Subdivision 4.1A—No Product Disclosure Statement for carbon
units, Australian carbon credit units and eligible
international emissions units
7.9.09A Application of Subdivision
This Subdivision applies:
(a) to a person who, apart from this Subdivision, would be
required to give a Product Disclosure Statement for a carbon
unit, an Australian carbon credit unit or an eligible
international emissions unit; and
(b) in relation to a carbon unit, an Australian carbon credit unit
or an eligible international emissions unit.
7.9.09B Provisions of Part 7.9 of Act that do not apply in relation to
carbon units, Australian carbon credit units and eligible
international emissions units
For paragraph 1020G(1)(b) of the Act, the following provisions of
Part 7.9 of the Act do not apply in relation to a carbon unit, an
Australian carbon credit unit or an eligible international emissions
unit:
(a) subparagraph 1012A(3)(b)(i);
(b) subparagraph 1012A(3)(b)(ii);
(c) subparagraph 1012B(3)(a)(ii);
(d) paragraph 1012C(3)(b);
(e) paragraph 1012C(4)(c);
(f) subsection 1012C(6);
(g) section 1013A;
(h) section 1013B;
(i) section 1013C;
(j) section 1013D;
(k) section 1013E;
(l) section 1013F;
(m) section 1013G.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.09C
Corporations Regulations 2001 177
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.09C Modification of Act
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application to a carbon unit, an Australian carbon
credit unit or an eligible international emissions unit as set out in
Part 19 of Schedule 10A.
Subdivision 4.2—Content of Product Disclosure Statements for
First Home Saver Accounts
7.9.10 Application of Subdivision
(1) This Subdivision applies to:
(a) a person required to give a Product Disclosure Statement for
an FHSA product; and
(b) a Product Disclosure Statement for an FHSA product.
(2) However, if a Product Disclosure Statement consists of 2 or more
documents, this Subdivision (other than regulation 7.9.10C) applies
only to the document describing the default investment option for
the product.
7.9.10A Definitions
(1) In this Subdivision and in Schedule 10B:
default investment option, for a multiple investment option FHSA
product, is the investment option which is applied to the product if
the person who acquires the product does not choose an investment
option.
multiple investment option FHSA product means an FHSA
product that has 2 or more investment options.
(2) If a term used in this Subdivision or in Schedule 10B is used in the
First Home Saver Accounts Act 2008, the term has the same
meaning in this Subdivision or in Schedule 10B as it does in that
Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.10B
178 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Note: The following terms used in this Subdivision or in Schedule 10B are
defined in the First Home Saver Accounts Act 2008:
contribution
FHSA eligibility requirements
FHSA holder
FHSA mortgage payment
FHSA payment conditions
FHSA provider
FHSA trust
genuine mortgage
Government FHSA contribution
personal FHSA contribution
qualifying interest.
(3) In this Subdivision and in Schedule 10B, a provision of the Act
modified in accordance with regulation 7.9.10B is referred to as
modified.
Example: Subparagraph 1013C(1)(a)(i) of the Act as modified by item 5.4 of
Part 5 of Schedule 10A is referred to in this Subdivision as ‘modified
subparagraph 1013C(1)(a)(i)’.
7.9.10B Modification of Act
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application to FHSA products as set out in Part 5 of
Schedule 10A.
7.9.10C Product Disclosure Statement consisting of 2 or more
documents
(1) For modified subsection 1013L(7) of the Act, a Product Disclosure
Statement for an FHSA product must not consist of 2 or more
documents.
(2) However, the Product Disclosure Statement for a multiple
investment option FHSA product may consist of 2 or more
documents if:
(a) the document describing the default investment option
complies with this Subdivision; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
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products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.10D
Corporations Regulations 2001 179
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the other documents comply with the provisions of:
(i) the Act; and
(ii) regulations; and
(iii) any instruments made under the Act and the regulations;
that would apply to those documents but for the operation of
this Subdivision.
7.9.10D Manner of giving Product Disclosure Statement for first
home saver accounts
(1) For paragraph 1015C(5)(a) of the Act:
(a) if a Product Disclosure Statement:
(i) relates only to 1 or more FHSA products; and
(ii) is given to a person or the person’s agent personally;
the Statement for the FHSA product or products must be the
first document about FHSA products that is given to the
person or agent at that time, other than a covering letter of no
more than 1 page; but
(b) paragraph (a) does not require the Statement for the FHSA
product or products to be given to the person or agent at that
time before other documents that do not relate to the FHSA
product or products.
(2) For paragraph 1015C(5)(a) of the Act:
(a) if a Product Disclosure Statement:
(i) relates only to 1 or more FHSA products; and
(ii) is given by sending it to the address or fax number of a
person or the person’s agent;
the Statement for the FHSA product or products must be the
first document about FHSA products that is given to the
person or agent at that time, other than a covering letter or
fax coversheet of no more than 1 page; but
(b) paragraph (a) does not require the Statement for the FHSA
product or products to be given to the person or agent at that
time before other documents that do not relate to the FHSA
product or products.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.10E
180 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.10E Form and content of Product Disclosure Statement
(1) For modified subparagraphs 1013C(1)(a)(i) and (ii) of the Act, a
Product Disclosure Statement must:
(a) include the information and statements mentioned in
Schedule 10B; and
(b) be in the form mentioned in Schedule 10B.
(2) However, if strict compliance with subregulation (1) would result
in the Statement being misleading, the Statement must contain
explanations or qualifications so as to make the Statement no
longer misleading.
(3) Subregulation (2) does not require explanation or qualification of a
statement the text of which is specified in subitem 4(1), 5(1) or
6(1) of Schedule 10B.
(4) Also, ASIC may determine, in writing, that a provision of this
Subdivision or of Schedule 10B:
(a) does not apply to a Product Disclosure Statement for an
FHSA product; or
(b) applies to a Product Disclosure Statement for an FHSA
product as if specified provisions were omitted or modified
as set out in the determination.
Subdivision 4.2A—Form and content of Product Disclosure
Statement for margin loan
7.9.11 Application of Subdivision 4.2A
This Subdivision applies to:
(a) a person who is required to prepare a Product Disclosure
Statement for a margin loan; and
(b) a Product Disclosure Statement for a margin loan.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.11A
Corporations Regulations 2001 181
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.11A Provisions of Part 7.7 of Act that do not apply in relation to
margin loan
For paragraph 951C(1)(b) of the Act, section 942DA of the Act
does not apply in relation to a margin loan.
7.9.11B Definitions for Subdivision 4.2A
(1) In this Subdivision and in Schedule 10C:
Approved Securities List means the list of secured properties that
are acceptable for the provider or potential provider of a margin
loan as security for the margin loan and includes the amount of
credit the provider will give for each of the properties.
(2) In this Subdivision and in Schedule 10C, a provision of the Act
that is modified in accordance with regulation 7.9.11C is referred
to as modified.
Example: Paragraphs 1013C(1)(a) and (b) of the Act as modified by
subitem 5A.2(1) of Part 5A of Schedule 10A are referred to in this
Subdivision as ‘modified paragraphs 1013C(1)(a) and (b)’.
7.9.11C Modification of Act—margin loan
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application to a margin loan as set out in Part 5A of
Schedule 10A.
7.9.11D Form and content of Product Disclosure Statement for
margin loan
(1) For modified paragraph 1013C(1)(a) of the Act, a Product
Disclosure Statement for a margin loan must include the
information and statements mentioned in Schedule 10C.
(2) For modified paragraph 1013C(1)(b) of the Act, a Product
Disclosure Statement for a margin loan must be in the form
mentioned in Schedule 10C.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.11E
182 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.11E Requirements for references to incorporated information
for margin loan
(1) For subsection 1013C(1D) of the Act, as modified by Part 5A of
Schedule 10A, this regulation prescribes requirements for
applying, adopting or incorporating, in a Product Disclosure
Statement for a margin loan, a matter contained in writing.
(2) A Product Disclosure Statement may apply, adopt or incorporate a
matter only if a provision of these Regulations requires or permits
the matter to be applied, adopted or incorporated by the Statement.
(3) If a Product Disclosure Statement applies, adopts or incorporates a
matter:
(a) the matter must be:
(i) in writing; and
(ii) clearly distinguishable from any other matters that are
not applied, adopted or incorporated; and
(iii) publicly available in a document other than the
Statement; and
(b) the responsible person for the Statement must identify the
matter by:
(i) including in the Statement a concise description of the
matter; and
(ii) ensuring that the reference to the matter is clearly
distinguishable from the other contents of the
Statement; and
(c) the responsible person for the Statement must:
(i) identify each version of the matter (by including the
date on which the version was prepared) so that a person
who, at a particular time, is considering a margin loan
can identify the version that is relevant to the margin
loan at that time; and
(ii) state the date on which the version was prepared in a
prominent position at or near the front of the version;
and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
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products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.11E
Corporations Regulations 2001 183
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(d) the responsible person for the Statement must ensure that a
person who is relying on the Statement is able to have access
to:
(i) the matter; or
(ii) if there is more than 1 version of the matter—each
version;
reasonably easily and reasonably quickly.
(4) The responsible person for the Product Disclosure Statement must
also ensure that the Statement includes the statements in the
following table relating to the matter, and sets them out in each
place at which the matter has been applied, adopted or
incorporated.
Item Statement
1 You should read the important information about [the subject] before making a
decision. Go to [location of the matter that has been applied, adopted or
incorporated]
2 The material relating to [matter] may change between the time when you read
this Statement and the day when you sign the application form
(5) The responsible person for the Product Disclosure Statement must
also ensure that each document mentioned in subregulation (3)
includes the statement in the following table relating to the matter.
Item Statement
1 The information in this document forms part of the Product Disclosure
Statement [identification by name, date and version (if applicable) of each
Statement]
(6) For the avoidance of doubt:
(a) the giving of a Product Disclosure Statement to which this
Subdivision applies is taken to be the giving of every matter
that is applied, adopted or incorporated in accordance with
subregulations (1) to (5); and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.11F
184 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) if a document mentioned in subparagraph (3)(a)(iii) refers to
more than one PDS, the document:
(i) must include a statement to the effect that the
information in the document forms part of the Product
Disclosure Statement offered by the responsible entity;
but
(ii) is not required to name each Product Disclosure
Statement of which it forms part.
(7) If the Product Disclosure Statement applies, adopts or incorporates
a matter, the information dealing with the matter is taken to have
been given to a person on the day on which the person signs the
application form accompanying the Statement.
7.9.11F Retention of copies of Product Disclosure Statement for
margin loan
(1) The responsible person for a Product Disclosure Statement for a
margin loan must retain a copy of each version of the Statement
that the responsible person issues for a period of 7 years starting on
the day on which the version is prepared.
(2) The responsible person for the Product Disclosure Statement must
retain a copy of the document from which a matter is applied,
adopted or incorporated by the Statement as mentioned in
paragraph 7.9.11E(3)(c) for a period of 7 years commencing on the
day on which the Statement is prepared.
(3) If a document from which a matter is adopted, applied or
incorporated by the Product Disclosure Statement as mentioned in
paragraph 7.9.11E(3)(c) is changed in a way that changes the
description of, or reference to, the matter, the responsible person
for the Statement must retain a copy of the document for a period
of 7 years commencing on the day on which the document is
changed.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.11G
Corporations Regulations 2001 185
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.11G Requirement to provide copy of Product Disclosure
Statement for margin loan free of charge
(1) For paragraph 1015C(5)(a) of the Act, this regulation specifies
requirements as to the manner in which a Product Disclosure
Statement for a margin loan must be given to a person if the person
requests a copy of the Statement.
(2) The responsible person for the Product Disclosure Statement must
give the person, free of charge:
(a) a copy of the Statement within 8 business days; and
(b) a copy of a matter in writing that is applied, adopted or
incorporated by the Statement within 8 business days.
7.9.11H Notification about change to Approved Securities List or
current interest rate for margin loan
(1) For paragraph 1017B(1A)(b) of the Act, a change to the Approved
Securities List or current interest rate for a margin loan is specified.
(2) For paragraph 1017B(3)(c) of the Act, the issuer of the margin loan
must notify the holder of the change by:
(a) sending notice of the change to the holder:
(i) by pre-paid post to a postal address nominated by the
holder; or
(ii) to an email address nominated by the holder; or
(b) placing a notice on a webpage that is likely to come to the
holder’s attention if the holder is monitoring the holder’s
margin loan.
Subdivision 4.2B—Content of Product Disclosure Statement for
superannuation product
7.9.11K Application of Subdivision 4.2B
(1) This Subdivision applies to:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.11L
186 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) a superannuation trustee that is required to prepare a Product
Disclosure Statement for a superannuation product; and
(b) a Product Disclosure Statement for a superannuation product.
(2) However, this Subdivision does not apply to the following
financial products:
(a) an interest in a superannuation product that is solely a
defined benefit interest;
(b) a superannuation product that is solely a pension product;
(c) a superannuation product that has no investment component
(also known as a risk-only superannuation product).
7.9.11L Provisions of Part 7.7 of Act that do not apply in relation to
superannuation product
For paragraph 951C(1)(b) of the Act, section 942DA of the Act
does not apply in relation to a superannuation product.
7.9.11LA Attribution of accrued default amount to MySuper
product—exemption from significant event notice
requirements
For paragraph 1020G(1)(a) of the Act, a person is exempt from
section 1017B of the Act in relation to the attribution or transfer of
an accrued default amount if the person:
(a) is an RSE licensee within the meaning of the Superannuation
Industry (Supervision) Act 1993; and
(b) must comply with a requirement under regulation 9.46 of the
Superannuation Industry (Supervision) Regulations 1994 in
relation to the attribution or transfer.
7.9.11LB Attribution of accrued default amount to MySuper
product—modification of significant event notice
requirements
If a person:
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Financial services and markets Chapter 7
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products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.11M
Corporations Regulations 2001 187
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) is an RSE licensee within the meaning of the Superannuation
Industry (Supervision) Act 1993; and
(b) is exempted under subregulation 9.46(2) of the
Superannuation Industry (Supervision) Regulations 1994
from notice requirements in relation to the attribution or
transfer of an accrued default amount;
then, for paragraph 1020G(1)(c) of the Act, section 1017B of the
Act applies to the person as if subsection 1017B(4) were omitted
and the following subsection were substituted:
(4) The notice must mention the following:
(a) the accrued default amount that was attributed or transferred;
(b) the name of the MySuper product to which the amount was
attributed or transferred;
(c) how the member may obtain a product disclosure statement
for the MySuper product;
(d) any other information that the member needs to understand
the attribution or transfer.
7.9.11M Provisions of Part 7.9 of Act that do not apply in relation to
superannuation product
(1) For paragraph 1020G(1)(b) of the Act, Subdivision D of Division 2
of Part 7.9 of the Act does not apply in relation to a superannuation
product.
(2) If a person:
(a) proposes to prepare a Product Disclosure Statement or a
supplementary Product Disclosure Statement for a
superannuation product during the period commencing on the
day on which this subregulation commences and ending on
22 June 2012; and
(b) is permitted to decide, in accordance with regulation 4 of the
Corporations Amendment Regulations 2010 (No. 5), to
prepare the Product Disclosure Statement or supplementary
Product Disclosure Statement in accordance with Subdivision
D of Division 2 of Part 7.9 of the Act; and
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Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.11N
188 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) prepares the Product Disclosure Statement or supplementary
Product Disclosure Statement in accordance with that
Subdivision;
the preparation of the Product Disclosure Statement or
supplementary Product Disclosure Statement is taken to be full
compliance with all requirements of Part 7.9 of the Act and these
Regulations relating to how the Product Disclosure Statement or
supplementary Product Disclosure Statement is to be prepared.
Note: The Corporations Amendment Regulations 2010 (No. 5) amended
these Regulations to make new arrangements for the preparation of
Product Disclosure Statements for superannuation products, including
identifying that Subdivision D of Division 2 of Part 7.9 of the Act
would no longer apply. However, the transitional arrangements in
subregulations 4(1) to (7) of the Amendment Regulations allowed
certain persons to decide to rely on Subdivision D of Division 2 of
Part 7.9 of the Act for the purpose of preparing the Product Disclosure
Statement.
7.9.11N Modification of Act—superannuation product
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application to a superannuation product to which
this Subdivision applies as set out in Part 5B of Schedule 10A.
7.9.11O Form and content of Product Disclosure Statement for
superannuation product
(1) For modified paragraph 1013C(1)(a) of the Act, a Product
Disclosure Statement for a superannuation product to which this
Subdivision applies must include the information and statements
mentioned in Schedule 10D.
(2) For modified paragraph 1013C(1)(b) of the Act, a Product
Disclosure Statement for a superannuation product to which this
Subdivision applies must be in the form mentioned in
Schedule 10D.
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Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.11P
Corporations Regulations 2001 189
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.11P Requirements for references to incorporated information
for superannuation product
(1) For subsection 1013C(1D) of the Act, as modified by Part 5B of
Schedule 10A, this regulation prescribes requirements for
applying, adopting or incorporating, in a Product Disclosure
Statement for a superannuation product to which this Subdivision
applies, a matter contained in writing.
(2) A Product Disclosure Statement may apply, adopt or incorporate a
matter only if a provision of these Regulations requires or permits
the matter to be applied, adopted or incorporated by the Statement.
(3) If a Product Disclosure Statement applies, adopts or incorporates a
matter:
(a) the matter must be:
(i) in writing; and
(ii) clearly distinguishable from any other matters that are
not to be applied, adopted or incorporated; and
(iii) if the superannuation product is not issued to a standard
employer-sponsored member within the meaning of the
Superannuation Industry (Supervision) Act 1993—
publicly available in a document other than the
Statement; and
(b) the responsible person for the Statement must identify the
matter by:
(i) including in the Statement a concise description of the
matter; and
(ii) ensuring that the reference to the matter is clearly
distinguishable from the other contents of the
Statement; and
(c) the responsible person for the Statement must:
(i) identify each version of the matter (by including the
date on which the version was prepared) so that a person
who, at a particular time, is considering a
superannuation product can identify the version that is
relevant to the superannuation product at that time; and
Federal Register of Legislative Instruments F2015C00303
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financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.11P
190 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) state the date on which a version was prepared in a
prominent position at or near the front of the version;
and
(d) the responsible person for the Statement must ensure that a
person who is relying on the Statement is able to have access
to:
(i) the document containing the matter; or
(ii) if there is more than 1 version of the document
containing the matter—each version;
reasonably easily and reasonably quickly.
(4) The responsible person for the Product Disclosure Statement must
also ensure that the Statement includes the statements in the
following table relating to the matter, and sets them out in each
place at which the matter has been applied, adopted or
incorporated.
Item Statement
1 You should read the important information about [the subject] before making a
decision. Go to [location of the matter that has been applied, adopted or
incorporated]
2 The material relating to [matter] may change between the time when you read
this Statement and the day when you acquire the product
(5) The responsible person for the Product Disclosure Statement must
also ensure that each document mentioned in subregulation (3)
includes the statement in the following table relating to the matter.
Item Statement
1 The information in this document forms part of the Product Disclosure
Statement [identification by name, date and version (if applicable) of each
Statement]
(6) For the avoidance of doubt, the giving of a Product Disclosure
Statement to which this Subdivision applies is taken to be the
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.11Q
Corporations Regulations 2001 191
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
giving of every matter that is applied, adopted or incorporated in
accordance with subregulations (1) to (5).
(7) If the Product Disclosure Statement applies, adopts or incorporates
a matter, the information dealing with the matter is taken to have
been given to a person on the day on which the product is acquired.
7.9.11Q Retention of copies of Product Disclosure Statement for
superannuation product
(1) This regulation applies if:
(a) section 1015B of the Act does not apply to require a Product
Disclosure Statement to be lodged with ASIC; and
(b) the Statement is for a superannuation product to which this
Subdivision applies.
(2) The responsible person for the Product Disclosure Statement must
retain a copy of each version of the Statement that the responsible
person issues for a period of 7 years starting on the day on which
the version is prepared.
(3) The responsible person for the Product Disclosure Statement must
retain a copy of the document from which a matter is applied,
adopted or incorporated by the Statement as mentioned in
paragraph 7.9.11P(3)(c) for a period of 7 years commencing on the
day on which the Statement is prepared.
(4) If a document from which a matter is adopted, applied or
incorporated by the Product Disclosure Statement as mentioned in
paragraph 7.9.11P(3)(c) is changed in a way that changes the
description of, or reference to, the matter, the responsible person
for the Statement must retain a copy of the document for a period
of 7 years commencing on the day on which the document is
changed.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.11R
192 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.11R Requirement to provide copy of Product Disclosure
Statement for superannuation product free of charge
(1) For paragraph 1015C(5)(a) of the Act, this regulation specifies
requirements as to the manner in which a Product Disclosure
Statement for a superannuation product to which this Subdivision
applies must be given to a person if the person requests a copy of
the Statement.
(2) The responsible person for the Product Disclosure Statement must
give the person, free of charge:
(a) a copy of the Statement within 8 business days; and
(b) a copy of a matter in writing that is applied, adopted or
incorporated by the Statement within 8 business days.
Subdivision 4.2C—Content of Product Disclosure Statement for
simple managed investment scheme
7.9.11S Application of Subdivision 4.2C
(1) This Subdivision applies to:
(a) a person that is required to prepare a Product Disclosure
Statement for a simple managed investment scheme; and
(b) a Product Disclosure Statement for a simple managed
investment scheme.
(2) This Subdivision does not apply to the extent that the simple
managed investment scheme relates to a financial product (known
as a “quoted product”) which is, or is intended to be, traded on a
prescribed financial market.
(3) This Subdivision does not apply to the extent that the simple
managed investment scheme relates to a financial product (known
as a “stapled security”) to which the following requirements apply:
(a) the product consists of interests in 2 or more financial
products;
(b) the interests include at least 1 interest in a registered
managed investment scheme;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.11T
Corporations Regulations 2001 193
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) under the terms on which each of the interests is to be traded,
the interests must be transferred together;
(d) there are no financial products in the same class as the
interests which may be transferred separately.
(4) This Subdivision does not apply to the extent that the simple
managed investment scheme is a managed investment scheme that
has a constitution that provides that:
(a) a member may direct that an amount of money corresponding
to part or all of the amount invested by the member in the
scheme be invested in accessible investments; and
(b) the distributions of capital and income from the scheme to
the member in relation to the member’s interests in the
scheme will be determined by reference to amounts received
by the responsible entity or a custodian in relation to the
accessible investments acquired in accordance with the
direction.
7.9.11T Provisions of Part 7.7 of Act that do not apply in relation to
simple managed investment scheme
For paragraph 951C(1)(b) of the Act, section 942DA of the Act
does not apply in relation to a simple managed investment scheme
to which this Subdivision applies.
7.9.11U Provisions of Part 7.9 of Act that do not apply in relation to
simple managed investment scheme
(1) For paragraph 1020G(1)(b) of the Act, Subdivision D of Division 2
of Part 7.9 of the Act does not apply in relation to a simple
managed investment scheme to which this Subdivision applies.
(2) If a person:
(a) proposes to prepare a Product Disclosure Statement or a
supplementary Product Disclosure Statement for a simple
managed investment scheme to which this Subdivision
applies during the period commencing on the day on which
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Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.11V
194 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
this subregulation commences and ending on 22 June 2012;
and
(b) is permitted to decide, in accordance with regulation 4 of the
Corporations Amendment Regulations 2010 (No. 5), to
prepare the Product Disclosure Statement or supplementary
Product Disclosure Statement in accordance with Subdivision
D of Division 2 of Part 7.9 of the Act; and
(c) prepares the Product Disclosure Statement or supplementary
Product Disclosure Statement in accordance with that
Subdivision;
the preparation of the Product Disclosure Statement or
supplementary Product Disclosure Statement is taken to be full
compliance with all requirements of Part 7.9 of the Act and these
Regulations relating to how the Product Disclosure Statement or
supplementary Product Disclosure Statement is to be prepared.
Note: The Corporations Amendment Regulations 2010 (No. 5) amended
these Regulations to make new arrangements for the preparation of
Product Disclosure Statements for simple managed investment
schemes, including identifying that Subdivision D of Division 2 of
Part 7.9 of the Act would no longer apply. However, the transitional
arrangements in subregulations 4(1) to (7) of the Amendment
Regulations allowed certain persons to decide to rely on Subdivision
D of Division 2 of Part 7.9 of the Act for the purpose of preparing the
Product Disclosure Statement.
7.9.11V Modification of Act—simple managed investment scheme
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application to a simple managed investment scheme
to which this Subdivision applies as set out in Part 5C of
Schedule 10A.
7.9.11W Form and content of Product Disclosure Statement for
simple managed investment scheme
(1) For modified paragraph 1013C(1)(a) of the Act, a Product
Disclosure Statement for a simple managed investment scheme to
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products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.11X
Corporations Regulations 2001 195
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
which this Subdivision applies must include the information and
statements mentioned in Schedule 10E.
(2) For modified paragraph 1013C(1)(b) of the Act, a Product
Disclosure Statement for a simple managed investment scheme to
which this Subdivision applies must be in the form mentioned in
Schedule 10E.
7.9.11X Requirements for references to incorporated information
for simple managed investment scheme
(1) For subsection 1013C(1D) of the Act, as modified by Part 5C of
Schedule 10A, this regulation prescribes requirements for
applying, adopting or incorporating, in a Product Disclosure
Statement for a simple managed investment scheme to which this
Subdivision applies, a matter contained in writing.
(2) A Statement may apply, adopt or incorporate a matter only if a
provision of these Regulations requires or permits the matter to be
applied, adopted or incorporated by the Statement.
(3) If a Product Disclosure Statement applies, adopts or incorporates a
matter:
(a) the matter must be:
(i) in writing; and
(ii) clearly distinguishable from any other matters that are
not applied, adopted or incorporated; and
(iii) publicly available in a document other than the
Statement; and
(b) the responsible person for the Statement must identify the
matter by:
(i) including in the Statement a concise description of the
matter; and
(ii) ensuring that the reference to the matter is clearly
distinguishable from the other contents of the
Statement; and
(c) the responsible person for the Statement must:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.11X
196 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) identify each version of the matter (by including the
date on which the version was prepared) so that a person
who, at a particular time, is considering a simple
managed investment scheme to which this Subdivision
applies can identify the version that is relevant to the
simple managed investment scheme at that time; and
(ii) state the date on which the version was prepared in a
prominent position at or near the front of the version;
and
(d) the responsible person for the Statement must ensure that a
person who is relying on the Statement is able to have access
to:
(i) the matter; or
(ii) if there is more than 1 version of the matter—each
version;
reasonably easily and reasonably quickly.
(4) The responsible person for the Product Disclosure Statement must
also ensure that the Statement includes the statements in the
following table relating to the matter, and sets them out in each
place at which the matter has been applied, adopted or
incorporated.
Item Statement
1 You should read the important information about [the subject] before making a
decision. Go to [location of the matter that has been applied, adopted or
incorporated]
2 The material relating to [matter] may change between the time when you read
this Statement and the day when you acquire the product
(5) The responsible person for the Product Disclosure Statement must
also ensure that each document mentioned in subregulation (3)
includes the statement in the following table relating to the matter.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.11Y
Corporations Regulations 2001 197
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item Statement
1 The information in this document forms part of the Product Disclosure
Statement [identification by name, date and version (if applicable) of each
Statement]
(6) For the avoidance of doubt:
(a) the giving of a Product Disclosure Statement to which this
Subdivision applies is taken to be the giving of every matter
that is applied, adopted or incorporated in accordance with
subregulations (1) to (5); and
(b) if a document mentioned in subparagraph (3)(a)(iii) refers to
more than one PDS, the document:
(i) must include a statement to the effect that the
information in the document forms part of the Product
Disclosure Statement offered by the responsible entity;
but
(ii) is not required to name each Product Disclosure
Statement of which it forms part.
(7) If the Product Disclosure Statement applies, adopts or incorporates
a matter, the information dealing with the matter is taken to have
been given to a person on the day on which the product is acquired.
7.9.11Y Retention of copies of Product Disclosure Statement for
simple managed investment scheme
(1) The responsible person for a Product Disclosure Statement for a
simple managed investment scheme to which this Subdivision
applies must retain a copy of each version of the Statement that the
responsible person issues for a period of 7 years starting on the day
on which the version is prepared.
(2) The responsible person for the Product Disclosure Statement must
retain a copy of the document from which a matter is applied,
adopted or incorporated by the Statement as mentioned in
paragraph 7.9.11X(3)(c) for a period of 7 years commencing on the
day on which the Statement is prepared.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.11Z
198 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) If a document from which a matter is adopted, applied or
incorporated by the Product Disclosure Statement as mentioned in
paragraph 7.9.11X(3)(c) is changed in a way that changes the
description of, or reference to, the matter, the responsible person
for the Statement must retain a copy of the document for a period
of 7 years commencing on the day on which the document is
changed.
7.9.11Z Requirement to provide copy of Product Disclosure
Statement for simple managed investment scheme free of
charge
(1) For paragraph 1015C(5)(a) of the Act, this regulation specifies
requirements as to the manner in which a Product Disclosure
Statement for a simple managed investment scheme to which this
Subdivision applies must be given to a person if the person
requests a copy of the Statement.
(2) The responsible person for the Product Disclosure Statement must
give the person, free of charge:
(a) a copy of the Statement within 8 business days; and
(b) a copy of a matter in writing that is applied, adopted or
incorporated by the Statement within 8 business days.
Subdivision 4.3—Other arrangements for Product Disclosure
Statements and application forms
7.9.12 Modification of Act: Product Disclosure Statements and
application forms for standard employer-sponsors and
successor funds
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to superannuation products
and RSA products as set out in Part 6 of Schedule 10A.
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Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.13
Corporations Regulations 2001 199
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.13 Offer of superannuation interest without application or
eligible application
(1) For paragraph 1016A(4)(a) of the Act, if a trustee of a public offer
entity issues a superannuation interest in the entity to a person
without first receiving an application, or an eligible application, the
trustee is taken not to have contravened section 1016A of the Act
if:
(a) the entity is a standard employer-sponsored fund; and
(b) the person holds the interest as a standard
employer-sponsored member of the entity; and
(c) after issuing the interest, the trustee makes reasonable efforts:
(i) to obtain an application or eligible application (as the
case requires under paragraph 1016A(2)(b) or (c) of the
Act) from the person’s standard employer-sponsor; or
(ii) to obtain an eligible application mentioned in
paragraph 1016A(2)(a) of the Act from the person; and
(d) if the trustee has not obtained the application or eligible
application within 90 days after issuing the interest, the
trustee does not accept any more contributions from the
standard employer-sponsor in respect of the person until the
trustee receives the application or eligible application.
(2) For paragraph 1016A(4)(b) of the Act, if a trustee has not obtained
the application or eligible application under subregulation (1)
within 90 days after issuing the interest, the trustee must not
intentionally or recklessly accept any more contributions from the
standard employer-sponsor in respect of the person until the trustee
receives the application or eligible application.
Penalty: 50 penalty units.
(3) Subregulation (2) does not apply if the person has a reasonable
excuse.
Note: A defendant bears an evidential burden in relation to the matter in
subregulation (2) (see subsection 13.3(3) of the Criminal Code).
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.13A
200 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) Strict liability applies to subregulation (2).
Note: For strict liability, see section 6.1 of the Criminal Code.
7.9.13A Remedies for person acquiring financial product under
defective Product Disclosure Statement: first home saver
accounts
(1) For subsection 1016F(3) of the Act, this regulation applies in
relation to an FHSA.
(2) If the FHSA holder has never held another FHSA, to exercise a
right of return for the financial product in circumstances in which
the moneys paid to acquire the FHSA are subject to payment
restrictions:
(a) the FHSA holder must:
(i) notify the FHSA provider, in writing, that the FHSA
holder wishes to exercise the right to return the FHSA;
and
(ii) ask the FHSA provider to pay the entire balance of the
FHSA to the FHSA holder; and
(iii) give the FHSA provider a written declaration that the
FHSA holder has never previously held an FHSA; or
(b) the FHSA holder must:
(i) notify the FHSA provider, in writing, that the FHSA
holder wishes to exercise the right to return the FHSA;
and
(ii) no later than 1 month after notifying the FHSA
provider, ask the FHSA provider to pay the entire
balance of the FHSA to another FHSA nominated in the
request.
(3) If the FHSA holder has held another FHSA, to exercise a right of
return for the financial product in circumstances in which the
moneys paid to acquire the FHSA are subject to payment
restrictions, the FHSA holder must:
(a) notify the FHSA provider, in writing, that the FHSA holder
wishes to exercise the right to return the FHSA; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.14
Corporations Regulations 2001 201
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) no later than 1 month after notifying the FHSA provider, ask
the FHSA provider to pay the entire balance of the FHSA to
another FHSA nominated in the request.
7.9.14 Remedies for person acquiring financial product under
defective Product Disclosure Statement: superannuation
and RSAs
(1) This regulation applies to a financial product:
(a) that is:
(i) a superannuation product to which requirements of the
SIS Act relating to preservation rules and cashing
restrictions apply; or
(ii) an RSA product to which requirements of the RSA
Regulations relating to preservation rules and cashing
restrictions apply; and
(b) that has been issued or sold in contravention of
section 1016E of the Act.
(2) For subsection 1016F(3) of the Act, to exercise a right of return for
the financial product in circumstances in which the moneys paid to
acquire the financial product are subject to the preservation rules
and cashing restrictions, the client must:
(a) nominate a superannuation entity or RSA into which the
monies subject to the preservation rules and cashing
restrictions, and to which preservation conditions apply, are
to be repaid; and
(b) make the nomination not later than 1 month after notifying
the responsible person of the right to exercise the right of
return.
(2A) The right of return is taken to have been exercised only on receipt
by the responsible person of the nomination.
(3) The client must notify the responsible person in writing or by
electronic means.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.14A
202 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) For subsection 1016F(6) of the Act, the responsible person must
repay the monies as directed.
(5) For subsection 1019B(7) of the Act, if:
(a) a financial product mentioned in this regulation is subject to
the nomination of a further superannuation entity or RSA;
and
(b) the application in relation to the financial product is not
accepted by the nominated superannuation entity or RSA;
the responsible person may rollover or transfer the client’s benefits
to an eligible rollover fund.
7.9.14A Treatment of arrangements under which a person can
instruct another person to acquire a financial product
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if the definition of instruction in subsection 1012IA(1) of the
Act were modified by adding at the end ‘, including a direction to
follow an investment strategy mentioned in paragraph 52(4)(a) of
the Superannuation Industry (Supervision) Act 1993’.
Subdivision 4.4—Product information for certain insurance
products
7.9.14B Product information
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to financial products as if:
(a) that Part applied to a financial product mentioned in
paragraph 7.1.14(2)(d); and
(b) the following section were inserted after section 1019B of the
Act:
‘1019C Information about certain vehicle insurance
(1) This section applies in relation to the issue of a financial
product mentioned in paragraph 7.1.14(2)(d) of the
Corporations Regulations 2001.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.14B
Corporations Regulations 2001 203
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) The product issuer of the financial product must, as soon as
practicable after issuing the financial product, give the holder
of the financial product a statement that contains the
information mentioned in paragraphs 1013D(1)(a) and (b)
unless:
(a) the product holder already has a statement containing
that information; or
(b) the product issuer believes on reasonable grounds that
the product holder has already received a statement
containing that information.
(3) The product issuer must give the statement in the same way
as a Product Disclosure Statement is to be given under
subsection 1015C.
(4) The product issuer is not required to comply with any other
requirements in Divisions 2 to 6 (inclusive) in relation to the
issue of the financial product.
(5) The product issuer must not refuse, or intentionally or
recklessly fail, to comply with subsections (2) and (3).
Penalty: 50 penalty units.
(6) Subsection (5) does not apply to the extent that the product
issuer has a reasonable excuse.
Note: A defendant bears an evidential burden in relation to the matter in subsection (6A), see subsection 13.3(3) of the Criminal Code.
(7) Divisions 1 and 7 do not apply in relation to the product
issuer in relation to the financial product mentioned in
paragraph 7.1.14(2)(d) of the Corporations
Regulations 2001.’.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4A General
Regulation 7.9.14C
204 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4A—General
7.9.14C Labour standards and environmental, social and ethical
considerations
For paragraph 1013D(4)(c) of the Act, the more detailed
information to be included in a Product Disclosure Statement about
the extent to which labour standards or environmental, social or
ethical considerations are taken into account in the selection,
retention or realisation of an investment is:
(a) a statement that the product issuer does, or does not, take into
account labour standards for the purpose of selecting,
retaining or realising the investment; and
(b) a statement that the product issuer does, or does not, take into
account environmental, social or ethical considerations for
the purpose of selecting, retaining or realising the
investment; and
(c) if the Product Disclosure Statement includes a statement that
the product issuer does take into account labour standards for
the purpose of selecting, retaining or realising the
investment—a statement outlining:
(i) the standards that the product issuer considers to be
labour standards for that purpose; and
(ii) the extent to which the product issuer takes those
standards into account in the selection, retention or
realisation of the investment; and
(d) if the Product Disclosure Statement includes a statement that
the product issuer does take into account environmental,
social or ethical considerations for the purpose of selecting,
retaining or realising the investment—a statement outlining:
(i) the considerations that the product issuer regards as
environmental, social or ethical considerations for that
purpose; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
General Division 4A
Regulation 7.9.14D
Corporations Regulations 2001 205
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) the extent to which the product issuer takes those
considerations into account in the selection, retention or
realisation of the investment.
7.9.14D Further statements required in Product Disclosure
Statement—financial claims scheme
(1) For paragraph 1013D(1)(k) of the Act, the following further
statements must be included in a Product Disclosure Statement that
relates to a protected policy issued by a general insurer or a
protected account issued by an authorised deposit-taking
institution:
(a) if the Product Disclosure Statement relates to a protected
policy—a statement that:
(i) the person entitled to claim under insurance cover under
a protected policy may be entitled to payment under the
financial claims scheme; and
(ii) access to the scheme is subject to eligibility criteria;
(b) if the Product Disclosure Statement relates to a protected
account—a statement that:
(i) the account-holder may be entitled to payment under the
financial claims scheme; and
(ii) payments under the scheme are subject to a limit for
each depositor;
(c) a statement that information about the scheme can be
obtained from the APRA website at http://www.apra.gov.au
and the APRA hotline on 1300 13 10 60.
(2) In this regulation:
authorised deposit-taking institution has the meaning given by
subsection 5(1) of the Banking Act 1959.
financial claims scheme means:
(a) the scheme provided for in Division 2AA of Part II of the
Banking Act 1959; and
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Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4A General
Regulation 7.9.15
206 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the scheme provided for in Part VC of the Insurance Act
1973.
general insurer has the meaning given by section 11 of the
Insurance Act 1973.
protected account has the meaning given by subsections 5(4) to (7)
of the Banking Act 1959.
protected policy has the meaning given by subsection 3(1) of the
Insurance Act 1973.
7.9.15 More detailed information in Product Disclosure Statement:
unauthorised foreign insurer
(1) For paragraph 1013D(4)(c) of the Act, the more detailed
information that must be included in a Product Disclosure
Statement that relates to a financial product issued by an
unauthorised foreign insurer is:
(a) a statement that the product issuer is:
(i) an unauthorised foreign insurer; and
(ii) not authorised under the Insurance Act 1973 to conduct
insurance business in Australia; and
(b) a statement that an insurer of that kind is not subject to the
provisions of the Insurance Act 1973, which establishes a
system of financial supervision of general insurers in
Australia; and
(c) a statement that the person should consider whether to obtain
further information, including:
(i) the country in which the product issuer is incorporated,
and whether the country has a system of financial
supervision of insurers; and
(ii) the paid up capital of the product issuer; and
(iii) which country’s laws will determine disputes in relation
to the financial product; and
(d) a statement that an insurer of that kind cannot be a declared
general insurer for the purpose of Part VC of the Insurance
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
General Division 4A
Regulation 7.9.15A
Corporations Regulations 2001 207
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Act 1973, and, if the insurer becomes insolvent, the person
will not be covered by the financial claims scheme provided
under Part VC of that Act.
(2) In this regulation:
unauthorised foreign insurer means:
(a) an insurer that:
(i) does not have an authority under the Insurance Act 1973
to carry on insurance business; and
(ii) is not a person who, because of section 5 of that Act, is
not required to have such an authority; and
(iii) carries on insurance business outside Australia and the
external Territories to which the Insurance Act 1973
extends; or
(b) if a direction is in force under section 74 of the Insurance Act
1973—a Lloyd’s underwriter.
7.9.15A Product Disclosure Statements—requirement to state
information as amounts in dollars
(1) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if paragraph 1013D(1)(m) of the Act were modified to read as
follows:
‘(m) unless, in accordance with the regulations and a
determination by ASIC, information to be disclosed in
accordance with paragraphs (b), (d) and (e) must be
stated as amounts in dollars.’.
(2) For paragraph 1020G(1)(a) of the Act, an issuer of a financial
product does not have to provide the information mentioned in
paragraph 1013D(1)(m) of the Act in the form required by that
paragraph, in a Product Disclosure Statement prepared before
1 January 2005.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4A General
Regulation 7.9.15B
208 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.15B Product Disclosure Statements—disclosure of dollar
amounts
(1) For paragraph 1013D(1)(m) of the Act, if ASIC determines that,
for a compelling reason, it is not possible to state information to be
disclosed in accordance with paragraph 1013D(1)(b), (d) or (e) as
an amount in dollars, the information may be set out as a
description of the benefit, cost, amount or payment as a percentage
of a specified matter (including worked dollar examples, unless
that is inappropriate).
(2) For paragraph 1013D(1)(m) of the Act, if ASIC determines that,
for a compelling reason, it is not possible to state information to be
disclosed in accordance with paragraph 1013D(1)(b), (d) or (e) as
an amount in dollars, or to describe the amount as a percentage, the
information may be set out as a description of the method of
calculating the benefit, cost, amount or payment (including worked
dollar examples, unless that is inappropriate).
(3) A determination under subregulation (1) or (2) must be:
(a) in writing; and
(b) published in the Gazette.
7.9.15C Product Disclosure Statements—disclosure of dollar
amounts
(1) For paragraph 1013D(1)(m) of the Act, if ASIC determines that,
for a compelling reason based on the nature of a financial product
or service, or the nature of the information, to state the information
as an amount in dollars:
(a) would impose an unreasonable burden on a product issuer, or
a class of product issuers; or
(b) would impose an unreasonable burden on a product issuer, or
a class of product issuers, within a period specified in the
determination; or
(c) would not be in the interests of a client, or a class of clients;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
General Division 4A
Regulation 7.9.15C
Corporations Regulations 2001 209
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
the information may be set out as a description of the amount as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(2) For paragraph 1013D(1)(m) of the Act, if ASIC determines that,
for a compelling reason, based on the nature of a financial product
or service, or the nature of the information, to state the information
as an amount in dollars, or to describe the amount as a percentage:
(a) would impose an unreasonable burden on a product issuer, or
a class of product issuers; or
(b) would impose an unreasonable burden on a product issuer, or
a class of product issuers, within a period specified in the
determination; or
(c) would not be in the interests of a client, or a class of clients;
the information may be set out as a description of the method of
calculating the charge or benefit (including worked dollar
examples, unless that is inappropriate).
(3) A determination under subregulation (1) or (2) must be:
(a) in writing; and
(b) published in the Gazette.
(4) For paragraph 1013D(1)(m) of the Act, for a Product Disclosure
Statement that is required in relation to a general insurance
product, if:
(a) information is required to be stated in dollars; and
(b) the amount can only be determined:
(i) after the responsible person assesses the risk of the
insured; or
(ii) after the insured has nominated desired levels of
insurance cover;
the responsible person may comply with the requirement to state
the information by either of the ways mentioned in
subregulation (5).
(5) For subregulation (4), the responsible person may state the
information by:
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Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4A General
Regulation 7.9.15CA
210 Corporations Regulations 2001
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(a) stating an amount in dollars in the Product Disclosure
Statement; or
(b) giving to the insured:
(i) a document containing the information, as soon as
practicable (but in any case, not later than 5 business
days after the responsible person issues the general
insurance product); and
(ii) a statement in the Product Disclosure Statement that sets
out the information in at least 1 of the following
formats:
(A) as a range of amounts in dollars;
(B) as a percentage of a matter that is mentioned in
the statement;
(C) as a description.
7.9.15CA Less information in Product Disclosure Statement—
financial claims scheme
(1) This regulation applies from 18 April 2010 to 11 October 2011.
(2) For paragraph 1013D(4)(b) of the Act, paragraphs 1013D(1)(b)
and (f) of the Act do not require a Product Disclosure Statement to
contain information relating to Division 2AA of Part II of the
Banking Act 1959 or Part VC of the Insurance Act 1973.
7.9.15D Less information in product disclosure statement: general
insurance product
For paragraph 1013D(4)(a) of the Act, the following provisions do
not apply to a Product Disclosure Statement that relates to a
general insurance product:
(a) paragraph 1013D(1)(c);
(b) subparagraph 1013D(1)(d)(iii);
(c) paragraph 1013D(1)(e);
(d) paragraph 1013D(1)(h);
(e) paragraph 1013D(1)(j);
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
General Division 4A
Regulation 7.9.15DA
Corporations Regulations 2001 211
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(f) paragraph 1013D(1)(l).
7.9.15DA Statement or information not included in a Product
Disclosure Statement
(1) For paragraph 1020G(1)(c) of the Act, and subject to
subregulation (1A) and (4), a responsible person is not required to
include a statement or information mentioned in Part 7.9 of the Act
in a Product Disclosure Statement if:
(a) the statement or information is in writing and is publicly
available in a document other than the Product Disclosure
Statement; and
(b) the Product Disclosure Statement:
(i) refers to the statement or information; and
(ii) provides sufficient details about the statement or
information to enable a person:
(A) to identify by a unique identifier the document,
or part of the document, that contains the
statement or information; and
(B) to locate the statement or information; and
(C) to decide whether or not to read the statement
or information or obtain a copy of the statement
or information; and
(iii) states that a copy of the statement or information may
be obtained from the responsible person on request, at
no charge; and
(c) the statement or information is not a statement or information
that is in a Short-Form Product Disclosure Statement.
(1A) This regulation does not apply if the Product Disclosure Statement
is for:
(a) a margin loan; or
(b) a superannuation product to which Subdivision 4.2B of
Division 4 of Part 7.9 applies; or
(c) a simple managed investment scheme to which
Subdivision 4.2C of Division 4 of Part 7.9 applies.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4A General
Regulation 7.9.15DB
212 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) If the client requests a copy of the statement or information that the
responsible person is not required to include in accordance with
subregulation (1), the responsible person must provide the copy as
soon as practicable, at no charge.
(3) If a statement or information is not included in a Product
Disclosure Statement because of subregulation (1), the statement or
information is taken to be included in the Product Disclosure
Statement.
(4) Despite subregulation (3), if a responsible person does not include
a statement or information in a Product Disclosure Statement in
accordance with subregulation (1), the responsible person must
include the following information in the Product Disclosure
Statement:
(a) for information required by paragraph 1013D(1)(b) or (f) of
the Act—a description, in summary, of the purpose and key
features of the product;
(b) for information required by paragraph 1013D(1)(c) of the
Act—a description, in summary, of the key risks of the
product;
(c) the information required by:
(i) paragraphs 1013D(1)(a), (g) and (i) of the Act; and
(ii) Divisions 1 and 2 of Part 2 of Schedule 10; and
(iii) paragraphs 209(e) and (h) of Division 4 of Part 2 of
Schedule 10; and
(iv) Divisions 5 and 6 of Part 2 of Schedule 10;
(d) the Consumer Advisory Warning in Division 7 of Part 2 of
Schedule 10.
7.9.15DB Requirement to keep record of Product Disclosure
Statement and other documents
(1) If section 1015B of the Act does not require a copy of a Product
Disclosure Statement to be lodged with ASIC, the Statement and a
document, or part of a document, mentioned in the Statement must
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
General Division 4A
Regulation 7.9.15DC
Corporations Regulations 2001 213
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
be retained by the responsible person for that Statement for 7 years
after the date of the Statement.
Note: Responsible person has the same meaning as in section 1011B of the
Act.
(2) This regulation does not apply if the Product Disclosure Statement
is for:
(a) a margin loan; or
(b) a superannuation product to which Subdivision 4.2B of
Division 4 of Part 7.9 applies; or
(c) a simple managed investment scheme to which
Subdivision 4.2C of Division 4 of Part 7.9 applies.
7.9.15DC Requirement to lodge documents mentioned in a Product
Disclosure Statement with ASIC
(1) A document, or part of a document, mentioned in a Product
Disclosure Statement that was required to be lodged with ASIC
under section 1015B of the Act must be lodged with ASIC as if the
document, or part of the document, were a Statement within the
meaning of section 1015B of the Act.
(2) This regulation does not apply if the Product Disclosure Statement
is for:
(a) a margin loan; or
(b) a superannuation product to which Subdivision 4.2B of
Division 4 of Part 7.9 applies; or
(c) a simple managed investment scheme to which
Subdivision 4.2C of Division 4 of Part 7.9 applies.
7.9.15E More detailed information in product disclosure statement:
general insurance product
For paragraph 1013D(4)(c) of the Act, the more detailed statement
of the information, for paragraph 1013D(1)(f), that must be
included in a Product Disclosure Statement that relates to a general
insurance product is:
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Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4A General
Regulation 7.9.15F
214 Corporations Regulations 2001
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(a) the terms and conditions of the policy document (within the
meaning of the Insurance Contracts Act 1984) being terms
and conditions that are not provided in a Schedule to the
policy document; and
(b) information that, if the issuer were seeking to rely on
subsection 35(2) and section 37 of the Insurance Contracts
Act 1984, the issuer would have had to provide to the insured
before the contract of insurance was entered into.
7.9.15F Product disclosure statement: general insurance product
For paragraph 1020G(1)(b) of the Act, Part 7.9 of the Act applies
to general insurance products as if subparagraph 1013C(1)(a)(ii)
and section 1013E were omitted.
7.9.15FA Transitional arrangements for regulations 7.9.15D, 7.9.15E
and 7.9.15F
(1) If, at any time during the transition period, a Product Disclosure
Statement for a general insurance product complies with the
requirements of old sections 1013C and 1013D, the Product
Disclosure Statement is taken to comply with the requirements of:
(a) sections 1013C and 1013D of the Act; and
(b) the provisions of any regulations made for the purposes of, or
modifying, sections 1013C and 1013D of the Act;
as in force at that time.
(2) In this regulation:
commencing day means the day on which this regulation
commences.
old sections 1013C and 1013D means:
(a) sections 1013C and 1013D of the Act; and
(b) the provisions of any regulations made for the purposes of, or
modifying, those sections;
as in force immediately before the commencing day.
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Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
General Division 4A
Regulation 7.9.15G
Corporations Regulations 2001 215
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
transition period means the period starting on the commencing day
and ending at the end of 30 June 2008.
Note: Before the commencement of this regulation, transitional
arrangements in similar terms were provided for regulations 7.9.15D,
7.9.15E and 7.9.15F by item 2 of Schedule 5 to the Corporations
Amendment Regulations 2005 (No. 5) (SLI 2005 No. 324).
7.9.15G Business days
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if paragraph 1019B(3)(b) were modified by omitting “5th day”
and substituting “fifth business day”.
7.9.15H New section 1012G: product disclosure statement may
sometimes be provided later
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if section 1012G were omitted and the following section were
substituted:
“1012G Product disclosure statement may sometimes be provided
later: financial products subject to a cooling off period
Application of section
(1) The regulated person may deal with a financial product under this
section only if the financial product is one for which an application
form is not required under section 1016A and section 1019B
(cooling off period) will apply if the client enters into a legal
obligation to acquire the product pursuant to the recommendation
or offer that constitutes the relevant conduct.
No need to give Product Disclosure Statement in certain
circumstances
(2) In a recommendation situation or an issue situation, the regulated
person need not give the client a Product Disclosure Statement for
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Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4A General
Regulation 7.9.15H
216 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
the financial product at or before the time when it would otherwise
be required to be given if:
(a) the client expressly instructs the regulated person that they
require:
(i) in a recommendation situation—the advice constituting
the recommendation; or
(ii) in an issue situation—the financial product;
to be provided or issued immediately, or by a specified time;
and
(b) it is not reasonably practicable, while complying with the
client’s instructions, to give the client the Product Disclosure
Statement at or before the time when it would otherwise be
required to be given.
The regulated person must comply instead with subsection (3).
Requirements to be complied with to be able to give Product
Disclosure statement later
(3) The regulated person must:
(a) at or before the time referred to in paragraph (2)(b), orally
communicate the following information to the client:
(i) the name and contact details of the issuer of the
financial product;
(ii) information about the cooling off regime that applies in
respect of acquisitions of the product (whether this
regime is provided for by law or otherwise);
(iii) that the client should consider the information in the Product Disclosure Statement that will be provided to the client;
(iv) the further information (if any) requested by the client
in response to a question under paragraph (b); and
(b) at or before the time referred to in paragraph (2)(b), ask the
client whether the client would like further information about
the financial product; and
(c) give the client the Product Disclosure Statement as soon as
practicable after that time, and in any event not later than:
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
General Division 4A
Regulation 7.9.15I
Corporations Regulations 2001 217
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) the time when the confirmation requirement (if
applicable) is complied with; or
(ii) the end of the fifth business day after the day on which
the financial product was issued or sold to the client.
How information to be communicated
(4) The information referred to in paragraph (3)(a) must be
communicated in a clear, concise and effective manner.
How confirmation requirement to be complied with
(5) For the purposes of subparagraph (3)(c)(i), the confirmation
requirement is complied with when:
(a) the client receives confirmation, as mentioned in
paragraph 1017F(5)(a), of the transaction by which they
acquired the financial product; or
(b) confirmation of that transaction is available to the client by a
facility as mentioned in paragraph 1017F(5)(b).”
7.9.15I Modification of section 1012IA
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if subparagraph 1012IA(4)(b)(ii) were omitted and the following
subparagraph was inserted:
“(ii) subsection 1012G(3) applies in relation to the provider, the client and the regulated acquisition as if the reference to the regulated person were instead a reference to the provider, as if subparagraph 1012G(3)(c)(i) were omitted and as if the reference in subparagraph 1012G(3)(c)(ii) to the day on which the financial product was issued or sold to the client were instead a reference to the day on which the regulated acquisition occurs.”
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4A General
Regulation 7.9.16
218 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.16 More detailed information in Product Disclosure Statement:
consumer credit insurance product
(1) For paragraph 1013D(4)(c) of the Act, the more detailed
information that must be included in a Product Disclosure
Statement that relates to a consumer credit insurance product is:
(a) a brief explanation of the purposes of consumer credit
insurance; and
(b) an outline statement of general areas covered by the
consumer credit insurance product, or the kind of consumer
credit insurance product; and
(c) a statement that it is important that the insured read the
Product Disclosure Statement carefully to understand the
extent of cover provided by the consumer credit insurance
product, and its limitations; and
(d) if all of the following matters apply under the consumer
credit insurance product:
(i) a person who applies for, or obtains, consumer credit
insurance is not obliged to buy the consumer credit
insurance;
(ii) cover is provided under the consumer credit insurance
product in respect of losses caused by certain
contingencies;
(iii) the extent of loss to the consumer credit insurance
product applies is measured by reference to the liability
of the insured under the credit agreement to which the
consumer credit insurance applies;
a statement to that effect, accompanied by examples of the
contingencies; and
(e) a table of the benefit limits applicable under the consumer
credit insurance product; and
(f) a statement that the insured:
(i) is required to be truthful; and
(ii) is able to arrange consumer credit insurance through a
different insurer; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
General Division 4A
Regulation 7.9.16A
Corporations Regulations 2001 219
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(g) a statement of the commission paid or payable in relation to
the provision of the consumer credit insurance product.
(2) In this regulation:
consumer credit insurance product means a general insurance
product provided by a class of contracts of insurance that is:
(a) declared, in accordance with the Insurance Contracts Act
1984 to be a class of contracts to which Division 1 of Part V
of that Act applies; and
(b) identified as consumer credit insurance as part of that
declaration.
7.9.16A Small scale offerings of managed investment and other
prescribed financial products (20 issues or sales in 12
months)
For paragraph 1012E(1)(b) of the Act, interests in unregistered
managed investment schemes are prescribed.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4B Ongoing disclosure
Regulation 7.9.16G
220 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4B—Ongoing disclosure
7.9.16G Ongoing disclosure of material changes and significant
events
(1) For paragraph 1017B(1)(d) of the Act, the circumstances in
subregulation (2) are specified.
(2) The circumstances are that the product issuer issued a financial
product that was acquired by a holder as a retail client:
(a) in a sale situation in which the issuer is not required to give a
Product Disclosure Statement for the product under
section 1012C of the Act; or
(b) in a situation in which a Product Disclosure Statement is not
required because of the operation of section 1012D of the Act
other than subsection (1), (2), (2A) or (2B) of that section; or
(c) in an offer situation in which a Product Disclosure Statement
is not required under section 1012E of the Act.
(3) For paragraph 1017B(1A)(c) of the Act, the attribution, on the
recommendation of the trustee, of an amount in relation to a
member in a MySuper product to another class of beneficial
interest in the fund is specified.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Fee Disclosure for certain financial products Division 4C
Regulation 7.9.16J
Corporations Regulations 2001 221
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4C—Fee Disclosure for certain financial products
Subdivision 4C.1—Application
7.9.16J Application of Division 4C to financial products
This Division applies to:
(a) superannuation products other than:
(i) self-managed superannuation funds; and
(ii) superannuation products that have no investment
component (also known as risk-only superannuation
products); and
(iii) annuities (except market-linked annuities); and
(iv) non-investment or accumulation life insurance policies
offered through a superannuation fund; and
(b) managed investment products.
7.9.16JA Application of Division 4C to financial products—
temporary arrangements
For paragraph 1020G(1)(a) of the Act:
(a) an issuer of a superannuation product to which this Division
applies does not have to provide the information mentioned
in subparagraph 1013D(1)(d)(iii) of the Act in a Product
Disclosure Statement issued before 1 July 2005; and
(b) an issuer of a financial product, other than a superannuation
product to which this Division applies, does not have to
provide the information mentioned in
subparagraph 1013D(1)(d)(iii) of the Act in a Product
Disclosure Statement issued before 1 July 2006.
7.9.16K Application of Division 4C to periodic statements and
Product Disclosure Statements
This Division applies:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4C Fee Disclosure for certain financial products
Regulation 7.9.16L
222 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) in relation to superannuation products:
(i) to periodic statements (other than exit statements) in
relation to a reporting period commencing on or after
1 July 2005; and
(ii) to periodic statements that are exit statements issued on
or after 1 July 2006; and
(iii) to Product Disclosure Statements issued on or after
1 July 2005; and
(b) in relation to managed investment products:
(i) to periodic statements (other than exit statements) in
relation to a reporting period commencing on or after
1 July 2006; and
(ii) to periodic statements that are exit statements issued on
or after 1 July 2007; and
(iii) to Product Disclosure Statements issued on or after
1 July 2006.
Subdivision 4C.2—Product Disclosure Statements
7.9.16L More detailed information about fees and costs
(1) For paragraph 1013D(4)(c) of the Act, a Product Disclosure
Statement must include the details of fees and costs set out in
Part 2 of Schedule 10.
(2) This regulation does not apply if the Product Disclosure Statement
is for:
(a) a margin loan; or
(b) a superannuation product to which Subdivision 4.2B of
Division 4 of Part 7.9 applies; or
(c) a simple managed investment scheme to which
Subdivision 4.2C of Division 4 of Part 7.9 applies.
7.9.16M Modification of section 1015C of the Act
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
in relation to a product mentioned in regulation 7.9.16J as if
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Fee Disclosure for certain financial products Division 4C
Regulation 7.9.16N
Corporations Regulations 2001 223
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
paragraph 1015C(5)(b) of the Act were modified to omit the words
‘that is to be given in electronic form’.
7.9.16N Presentation, structure and format of fees and costs in
Product Disclosure Statements
(1) For paragraph 1015C(5)(b) of the Act, the information required by
paragraphs 1013D(1)(d) and (e) of the Act must be set out in a
single section of the Product Disclosure Statement (fees section)
with the heading ‘Fees and other costs’.
(2) The fees section of a Product Disclosure Statement must include:
(a) the Fees and Costs Template, comprising the template and
the additional explanation of fees and costs set out in Part 2
of Schedule 10; and
(b) an example of annual fees and costs and associated notes as
set out in Part 2 of Schedule 10; and
(c) the boxed Consumer Advisory Warning Statement set out in
Part 2 of Schedule 10.
Subdivision 4C.3—Periodic statements
7.9.16O Presentation, structure and format of fees and charges in
periodic statements
(1) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
in relation to a product mentioned in regulation 7.9.16J as if
section 1017D of the Act were modified to add, after
subsection (7):
‘(8) The regulations may specify requirements as to the
presentation, structure and format of a periodic statement.’.
(2) For subsection 1017D(8) of the Act, the information required by
paragraph 1017D(5)(c) of the Act must be set out in the periodic
statement:
(a) in the manner specified in Part 3 of Schedule 10; and
(b) using the terminology used in Part 3 of Schedule 10.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4D Other requirements relating to Product Disclosure Statements and
Supplementary Product Disclosure Statements
Regulation 7.9.16T
224 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4D—Other requirements relating to Product
Disclosure Statements and Supplementary
Product Disclosure Statements
Subdivision 4D.1—Requirement to lodge a notice with ASIC
7.9.16T Variation of paragraph 1015D(2)(b) of the Act
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if paragraph 1015D(2)(b) of the Act were omitted and the
following paragraph and note were inserted:
‘(b) a change is made to the fees and charges set out in the
enhanced fee disclosure table in the Statement;
Note: The templates for the enhanced fee disclosure table are set out in
items 201 and 202 of Schedule 10 to the Corporations
Regulations 2001.’.
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products Part 7.9
Ongoing requirements for product disclosure after person becomes a member Division
5
Regulation 7.9.17
Corporations Regulations 2001 225
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5—Ongoing requirements for product disclosure
after person becomes a member
Subdivision 5.1—Preliminary
7.9.17 Application of Division 5
This Division applies in relation to the following entities:
(a) a regulated superannuation fund;
(b) an approved deposit fund;
(c) a pooled superannuation trust;
(d) an RSA.
Subdivision 5.2—Periodic statements for retail clients for
financial products that have an investment
component: regulated superannuation funds, ADFs
and RSAs
7.9.18 Application of Subdivision 5.2
This Subdivision applies in relation to:
(a) a regulated superannuation fund; and
(b) an approved deposit fund; and
(c) an RSA.
7.9.19 Specific requirements for periodic statements: superannuation
funds (other than self managed superannuation funds)
and RSAs
For paragraph 1017D(5)(g) of the Act, a periodic statement for a
superannuation product, given to a member of a superannuation
fund (other than a self-managed superannuation fund) or an RSA
product given to an RSA holder must include the following details:
Federal Register of Legislative Instruments F2015C00303
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Regulation 7.9.19
226 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the contact details of the fund or the RSA provider;
(b) the amount of withdrawal benefit for the member or RSA
holder at the start of the reporting period;
(c) the amount of the withdrawal benefit for the member or RSA
holder at the end of the reporting period, and the method by
which that amount was worked out;
(d) the amount (if any) of the withdrawal benefit for the member
or RSA holder, at the end of the reporting period, that
consists of preserved benefits;
(e) the amount (if any) of the withdrawal benefit for the member
or RSA holder, at the end of the reporting period, that
consists of restricted non-preserved benefits;
(f) the amount (if any) of the withdrawal benefit for the member
or RSA holder, at the end of the reporting period, that
consists of unrestricted non-preserved benefits;
(g) if, in providing details of the amount of the withdrawal
benefit at the end of the reporting period, a deduction for
fees, charges or expenses has been made or might be made—
details of the deduction;
(h) if relevant, a statement informing the product holder that:
(i) the information about the withdrawal benefit for the
product holder at the end of the reporting period is
based on notional amounts that would have been
attributable to the product holder if the product holder
had disposed of his or her interest in the product on the
date shown in the statement; and
(ii) the amounts on which that information is based might
change; and
(iii) before disposing of that product, the product holder
should seek information from the product issuer on the
withdrawal benefit at that time;
(i) a statement informing the product holder that the product
issuer is obliged to provide a member with any information
that he or she reasonably requires to understand his or her
benefit entitlements;
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Regulation 7.9.19A
Corporations Regulations 2001 227
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(j) a statement of the way in which a product holder is able to
gain access to information in relation to his or her investment
in the financial product.
7.9.19A Withdrawal benefit—fees, charges or expenses
(1) For subsection 1017D(5A) of the Act, in providing details of a
deduction for fees, charges or expenses in accordance with
paragraph 7.9.19(g), the amount must be stated in dollars.
(2) If ASIC determines that, for a compelling reason, it is not possible
to state the amount of a deduction in dollars the amount of the
deduction may be set out as a description of the fees, charges or
expenses as a percentage of a specified matter (including worked
dollar examples, unless that is inappropriate).
(3) If ASIC determines that, for a compelling reason, it is not possible
to state the amount of a deduction in dollars, or to set out the
amount as a percentage, the product issuer may provide:
(a) a statement informing the holder of the product that amounts
for fees, charges or expenses are applicable; and
(b) if information about access to the information about the
amount of the deduction is not provided in the statement
mentioned in paragraph 7.9.19(h)—details of the means by
which a product holder can gain access to information
relating to the amount of the deduction.
(4) A determination under subregulation (2) or (3) must be:
(a) in writing; and
(b) published in the Gazette.
7.9.19B Withdrawal benefit—fees, charges and expenses
(1) For subsection 1017D(5A) of the Act, this regulation applies to
details of a deduction for fees, charges or expenses in accordance
with paragraph 7.9.19(g).
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.19B
228 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) If ASIC determines that, for a compelling reason based on the
nature of a financial product or service, or the nature of the
information, to state the information as an amount in dollars:
(a) would impose an unreasonable burden on a product issuer, or
a class of product issuers; or
(b) would impose an unreasonable burden on a product issuer, or
a class of product issuers, within a period specified in the
determination; or
(c) would not be in the interests of a product holder, or a class of
product holders;
the information may be set out as a description of the amount as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(3) If ASIC determines that, for a compelling reason, based on the
nature of a financial product or service, or the nature of the
information, to state the information as an amount in dollars, or to
describe the amount as a percentage:
(a) would impose an unreasonable burden on a product issuer, or
a class of product issuers; or
(b) would impose an unreasonable burden on a product issuer, or
a class of product issuers, within a period specified in the
determination; or
(c) would not be in the interests of a product holder, or a class of
product holders;
the product issuer must provide the information in
subregulation (4).
(4) If subregulation (3) applies, the product issuer must provide:
(a) a statement informing the product holder that amounts for
fees, charges or expenses are applicable; and
(b) if information about access to the information is not provided
in the statement mentioned in paragraph 7.9.19(i)—details of
the means by which a product holder can gain access to
information relating to the amount of the deduction.
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Regulation 7.9.20
Corporations Regulations 2001 229
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(5) A determination under subregulation (2) or (3) must be:
(a) in writing; and
(b) published in the Gazette.
7.9.20 Specific requirements for certain periodic statements:
superannuation funds (other than self managed
superannuation funds)
(1) For paragraph 1017D(5)(g) of the Act, a periodic statement for a
member of a fund (other than a self managed superannuation fund)
must include the following details:
(a) the amount of the member’s contributions during the
reporting period;
(b) the amount of benefits rolled-over or otherwise transferred
into the fund during the reporting period;
(c) the amount of withdrawals during the reporting period;
(d) the information about costs of transactions mentioned in
regulation 7.9.75;
(e) the amount of any allotment of employer contributions
during the reporting period;
(f) the amount of any allotment of net earnings during the
reporting period (including, for a unitised product, the
presentation of changes in price as amounts in dollars);
(g) the rate of any allotment of net earnings during the reporting
period;
(h) the amount of bonuses that have accrued at the end of the
reporting period;
(i) the amount of the sum assured;
(j) the amount payable in the event of the member’s death:
(i) at the end of the reporting period; or
(ii) on the first day of the next reporting period;
or the method by which that amount is worked out;
(k) for a reporting period (within the meaning of
subsection 1017D(2) of the Act) commencing before 1 July
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Regulation 7.9.20
230 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
2004—details, including the amount or method of working
out, of other significant benefits, including, in particular,
disability benefits;
(ka) for a reporting period (within the meaning of
subsection 1017D(2) of the Act) commencing on or after
1 July 2004:
(i) details of other significant benefits, including disability
benefits, and the amount of the benefits at the end of the
reporting period, or the method of working out the
amount of the benefits; and
(ii) if the periodic statement includes an amount mentioned
in subparagraph (i)—a statement informing the holder
of the product that:
(A) the details of the significant benefit reflects the
situation for the member on the date shown in
the statement and the amount might change;
and
(B) the issuer is obliged to provide product holders
with any information they reasonably require
for the purpose of understanding their benefit
entitlements; and
(iii) details of the means by which a product holder is able to
gain access to information relating to the amount of a
significant benefit;
(kb) if, in providing details of other significant benefits for a
reporting period, a deduction for fees, charges or expenses
has been made or might be made—details of the deduction;
(l) if the trustee is aware, or ought reasonably to be aware, of
contributions that are due and payable during the reporting
period but have not been paid to the fund at, or shortly
before, the date of issue of the report, details of the amount of
those contributions and of action that the trustee has taken, or
proposes to take, to have the contributions paid;
(m) the net amount of Government co-contribution received
during the reporting period;
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Regulation 7.9.20AA
Corporations Regulations 2001 231
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(n) for a regulated superannuation fund—a statement of
long-term returns, in accordance with regulation 7.9.20AA,
of:
(i) the MySuper product or investment option within a
choice product in which a member is invested; or
(ii) the sub-plan, or, if none, the fund in which the member
holds an interest;
(o) for a regulated superannuation fund, if the trustee is required
to make publicly available a product dashboard for the
investment option, under section 1017BA of the Act—the
latest product dashboard for the investment option.
(2) For paragraph (1)(g), if the earnings rate for members of the fund
is reflected in the price of units of the fund, rather than being
credited or debited against the accounts of members, an earnings
rate allotted to members in respect of a period is taken to be a
change in the value of the members’ units being determined by the
trustee in respect of that period.
(2A) For paragraph (1)(m), the periodic statement may state separately:
(a) the amount of Government co-contributions received; and
(b) the amount of low income superannuation contributions
received.
Note: See section 12B of the Superannuation (Government Co-contribution
for Low Income Earners) Act 2003 for the way in which a law that
applies in relation to a Government co-contribution applies in relation
to a low income superannuation contribution.
(3) A nil amount need not be disclosed.
7.9.20AA Specific requirements for certain periodic statements:
superannuation funds (other than self managed
superannuation funds)—long-term returns
(1) For paragraph 7.9.20(1)(n), this regulation sets out requirements
that apply to a trustee of a regulated superannuation fund (other
than a self managed fund).
Federal Register of Legislative Instruments F2015C00303
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Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
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Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.20AA
232 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Requirements from 1 July 2009 until 30 June 2010
(2) The trustee must provide to each member of the regulated
superannuation fund, in or with the periodic statement for a
reporting period that is provided during the period starting on
1 July 2009 and ending at the end of 30 June 2010:
(a) a statement of the long-term returns of the investment option
in which the member is invested at the end of the reporting
period, if the member is invested in an investment option; or
(b) a statement of the long-term returns of the sub-plan, or, if
none, the fund in which the member holds an interest at the
end of the reporting period.
(3) For paragraph (2)(a), the long-term returns must be stated as the
compound average effective rate of net earnings of the investment
option for the period of 5 years ending at the end of the last
financial year or reporting period before the provision of the
periodic statement.
(4) For paragraph (2)(b), the long-term returns must be stated as the
compound average effective rate of net earnings of the sub-plan or
fund for the period of 5 years ending at the end of the last financial
year or reporting period before the provision of the periodic
statement.
(5) If:
(a) the trustee provides the statement of long-term returns on an
insert to the periodic statement; and
(b) the insert includes the long-term returns of investment
options in which the member is not invested, as well as the
long term returns of the investment option in which the
member is invested;
the periodic statement must include a statement of which
investment option the member is invested in.
(6) If the trustee provides the long-term returns in the periodic
statement, the trustee must include in the periodic statement, near
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Regulation 7.9.20AA
Corporations Regulations 2001 233
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
to the statement of long-term returns, a statement to the effect that
the returns are not the returns of the member’s investment in the
investment option, sub-plan or fund.
(7) If the trustee provides the long-term returns on an insert to the
periodic statement, the trustee must include in the periodic
statement, and on the insert near to the statement of long-term
returns, a statement to the effect that the returns are not the returns
of the member’s investment in the investment option, sub-plan or
fund.
Requirements from 1 July 2010
(8) The trustee must provide the following, in the periodic statement
for a reporting period that is provided from 1 July 2010, to each
member of the regulated superannuation fund:
(a) if the member is invested in an investment option at the end
of the reporting period—a statement of the long-term returns
of the investment option;
(b) if the member is not invested in an investment option at the
end of the reporting period—a statement of the long term
returns of the sub-plan, or, if none, the fund in which the
member holds an interest at the end of the reporting period.
(9) For paragraph (8)(a), the long-term returns must be stated as:
(a) the compound average effective rate of net earnings of the
investment option for the period of 5 years ending at the end
of the last financial year or reporting period before the
provision of the periodic statement; and
(b) the compound average effective rate of net earnings of the
investment option for the period of 10 years ending at the end
of that financial year or reporting period.
(10) For paragraph (8)(b), the long-term returns must be stated as:
(a) the compound average effective rate of net earnings of the
sub-plan or fund for the period of 5 years ending at the end of
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Regulation 7.9.20A
234 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
the last financial year or reporting period before the provision
of the periodic statement; and
(b) the compound average effective rate of net earnings of the
sub-plan or fund for the period of 10 years ending at the end
of that financial year or reporting period.
(11) The trustee must include in the periodic statement, near to the
statement of long-term returns, a statement to the effect that the
returns are not the returns of the member’s investment in the
investment option, sub-plan or fund.
General requirements
(12) For subregulations (3), (4), (9) and (10), if the investment option,
sub-plan or fund has been in operation for less than the 5-year or
10-year period to be reported on, the trustee must provide:
(a) the long-term return for the period in which the investment
option, sub-plan or fund has been in operation; and
(b) the date on which the investment option, sub-plan or fund
came into operation.
(13) If the long-term returns are provided in the periodic statement, they
must be positioned near to the statement of the rate of any
allotment of earnings during the reporting period.
(14) The long-term returns must be presented in a clear, concise and
effective manner.
7.9.20A Details of other significant benefits—disclosure of fees,
charges or expenses
(1) For subsection 1017D(5A) of the Act, in providing details of a
deduction for fees, charges or expenses in accordance with
paragraph 7.9.20(1)(kb):
(a) the amount must be stated in dollars; or
(b) if ASIC determines that, for a compelling reason, it is not
possible to state the amount of a deduction in dollars the
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Regulation 7.9.20B
Corporations Regulations 2001 235
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
amount of the deduction may be set out as a description of
the fees, charges or expenses as a percentage of a specified
matter (including worked dollar examples, unless that is
inappropriate); or
(c) if ASIC determines that, for a compelling reason, it is not
possible to state the amount of a deduction in dollars, or to
set out the amount as a percentage, the product issuer may
provide:
(i) a statement informing the holder of the product that
amounts for fees, charges or expenses are applicable;
and
(ii) if information about the deduction is not provided in the
statement mentioned in
sub-subparagraph 7.9.20(1)(ka)(ii)(B)—details of the
means by which a product holder can gain access to
information relating to the amount.
(2) A determination under paragraph (1)(b) or (c) must be:
(a) in writing; and
(b) published in the Gazette.
7.9.20B Other significant benefits—disclosure of fees, charges or
expenses
(1) For subsection 1017D(5A) of the Act, this regulation applies to
details of a deduction for fees, charges or expenses mentioned in
paragraph 7.9.20(1)(kb).
(2) If ASIC determines that, for a compelling reason based on the
nature of a financial product or service, or the nature of the
information, to state the amount of the deduction in dollars:
(a) would impose an unreasonable burden on a product issuer, or
a class of product issuers; or
(b) would impose an unreasonable burden on a product issuer, or
a class of product issuers, within a period specified in the
determination; or
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.20B
236 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) would not be in the interests of a product holder, or a class of
product holders;
the information may be set out as a description of the amount as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(3) If ASIC determines that, for a compelling reason, based on the
nature of a financial product or service, or the nature of the
information, to state the amount of a deduction in dollars, or, to
describe the amount as a percentage:
(a) would impose an unreasonable burden on a product issuer, or
a class of product issuers; or
(b) would impose an unreasonable burden on a product issuer, or
a class of product issuers, within a period specified in the
determination; or
(c) would not be in the interests of a product holder, or a class of
product holders;
the product issuer must provide the information in
subregulation (4).
(4) If subregulation (3) applies, the product issuer must provide:
(a) a statement informing the product holder that amounts for
fees, charges or expenses are applicable; and
(b) if information about the deduction is not provided in the
statement mentioned in
sub-subparagraph 7.9.20(1)(ka)(ii)(B)—details of the means
by which a product holder can gain access to information
relating to the amount of the deduction.
(5) A determination under subregulation (2) or (3) must be:
(a) in writing; and
(b) published in the Gazette.
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Regulation 7.9.21
Corporations Regulations 2001 237
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.21 Specific requirements in particular cases: member (other than
capital guaranteed member) of fund other than a self
managed superannuation fund
(1) For paragraph 1017D(5)(g) of the Act, and in addition to
regulations 7.9.19 and 7.9.20, a periodic statement for a member
(other than a capital guaranteed member) of a fund (other than a
self managed superannuation fund) must include the following
details:
(a) if the fund is an unfunded defined benefits fund—details of
the surcharge debt account kept by the trustee, under
subsection 16(2) of the Superannuation Contributions Tax
(Assessment and Collection) Act 1997, for the member,
including:
(i) the balance of the account at the start of the reporting
period; and
(ii) the amount debited to the account for superannuation
contributions surcharge assessed, by the Commissioner
of Taxation, to be payable on the member’s
surchargeable contributions; and
(iii) the amount of interest debited, under subsection 16(4)
of that Act, to the account during the reporting period;
and
(iv) the balance of the account at the end of the reporting
period;
(b) if the trustee reduced the member’s benefits in connection
with payment of a superannuation contributions surcharge or
an advance instalment of surcharge:
(i) the amount deducted; and
(ii) if there is a difference between the amount deducted and
the amount assessed under subsection 15(1) of the
Superannuation Contributions Tax (Assessment and
Collection) Act 1997 or between the amount deducted
and the amount determined under subsection 15(2) of
that Act—a statement explaining the difference;
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Division 5 Ongoing requirements for product disclosure after person becomes a
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Regulation 7.9.22
238 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) a description of the nature, effect and significant features of
surcharge debt accounts.
(2) A nil amount need not be disclosed.
7.9.22 Specific requirements: capital guaranteed funds and RSAs
(1) For paragraph 1017D(5)(g) of the Act, and in addition to
regulations 7.9.19 and 7.9.20, a periodic statement for a member of
a capital guaranteed fund must include the following details:
(a) a statement that outlines the means by which the fund is to be
maintained as a capital guaranteed fund and sets out the name
of the institution providing the investments that back the
fund;
(b) a statement that outlines the effect of the
lower-risk/lower-return nature of the product on possible
benefits in the long term;
(c) a statement that the member may wish to consider:
(i) other superannuation arrangements that may provide a
greater return over the long term; and
(ii) seeking advice on alternative investment arrangements
that may be more suitable.
(2) For paragraph 1017D(5)(g) of the Act, and in addition to
regulation 7.9.19, a periodic statement for an RSA holder must
include the following details:
(a) a statement that outlines the effect of the
lower-risk/lower-return nature of the product on possible
benefits in the long term;
(b) a suggestion that the RSA holder may wish to consider:
(i) other superannuation arrangements that may provide a
greater return over the long term; and
(ii) seeking advice on alternative investment strategies that
may be more suitable.
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Financial services and markets Chapter 7
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5
Regulation 7.9.23
Corporations Regulations 2001 239
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.23 Information for capital guaranteed fund: benefits reach
$10 000
For paragraph 1017D(5)(g) of the Act, and in addition to
regulations 7.9.19 and 7.9.22, if the amount of the benefits of a
member in a capital guaranteed fund at the end of a reporting
period is at least $10 000, the periodic statement for that reporting
period must include the following details:
(a) a statement of that fact;
(b) a statement that the information contained in the periodic
statement is important and that the notice must be read
carefully;
(c) a statement that outlines the effect of the
lower-risk/lower-return nature of the product on possible
benefits in the long term;
(d) a statement that the member may wish to consider:
(i) other superannuation arrangements that may provide a
greater return over the long term; and
(ii) seeking advice on alternative investment arrangements
that may be more suitable.
7.9.24 Modification of Act: pensioners, members subject to
compulsory protection of small amounts and members
with small amounts that are expected to grow quickly
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to a superannuation entity or
an RSA to which this Subdivision applies as set out in Part 7 of
Schedule 10A.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.25
240 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Subdivision 5.3—Periodic statements for retail clients for
financial products that have an investment
component: information for RSAs
7.9.25 Application of Subdivision 5.3
This Subdivision applies in relation to an RSA provider.
7.9.26 Specific requirements where applicable: RSAs
(1) For paragraph 1017D(5)(g) of the Act, and in addition to
regulation 7.9.19, a periodic statement for an RSA holder must
include details of the following matters in respect of the RSA
holder so far as they are applicable:
(a) the amount of the RSA holder’s contributions during the
reporting period;
(b) the amount of employer contributions during the reporting
period;
(c) the amount of benefits rolled-over or transferred into the
RSA during the reporting period;
(d) the amount of withdrawals during the reporting period;
(e) information about the cost of transactions mentioned in
Division 8;
(f) the amount of interest credited to the RSA during the
reporting period;
(g) the annual effective rate of net interest applied to the RSA
during the reporting period;
(h) a statement of:
(i) the annual effective rate of net earnings in each of the
most recent reporting periods that, in total, constitute a
period of at least 5 years; and
(ii) the compound average effective rate of net earnings for
the period of 5 years ending at the end of the reporting
period;
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Financial services and markets Chapter 7
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products Part 7.9
Ongoing requirements for product disclosure after person becomes a member Division
5
Regulation 7.9.26
Corporations Regulations 2001 241
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) the effect of the RSA holder-protection standards under the
RSA Regulations;
(j) the amount of bonuses that have accrued at the end of the
reporting period;
(k) if a risk insurance product is held by the RSA provider—the
amount of the sum assured;
(l) the circumstances when benefits may be paid to an eligible
rollover fund, the effect of that payment and the contact
details of the eligible rollover fund;
(m) the amount payable in the event of the RSA holder’s death:
(i) at the end of the reporting period; or
(ii) on the first day of the next reporting period;
or the method by which that amount is worked out;
(n) the amount, or method of working out, of other benefits
including, in particular, disability benefits;
(o) if the RSA provider reduced the RSA holder’s benefits in
connection with payment of a superannuation contributions
surcharge or an advance instalment of surcharge:
(i) the amount deducted; and
(ii) if there is a difference between the amount deducted and
the amount assessed under subsection 15(1) of the
Superannuation Contributions Tax (Assessment and
Collection) Act 1997 or between the amount deducted
and the amount determined under subsection 15(2) of
that Act—a statement explaining the difference;
(p) the net amount of Government co-contribution received
during the reporting period.
(2) A nil amount need not be disclosed.
(3) If, at the end of a reporting period, an RSA has not been in
existence for 5 years, the references in paragraph (1)(h) to 5 years
are taken to be references to the whole period of existence of the
RSA.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.27
242 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.27 Modification of Act: periodic statements for RSA holders
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to an RSA to which this
Subdivision applies as set out in Part 8 of Schedule 10A.
7.9.28 Information for RSA: amount reaches $10 000
For paragraph 1017D(5)(g) of the Act, if the amount of an RSA at
the end of a reporting period is at least $10 000, the periodic
statement for that reporting period must include the following, in
addition to the details mentioned in regulations 7.9.19 and 7.9.22:
(a) a statement of that fact;
(b) a statement that the information contained in the periodic
statement is important and that the notice must be read
carefully;
(c) a statement that outlines the effect of the lower-risk/
lower-return nature of the RSA on possible benefits in the
long term;
(d) a suggestion that the RSA holder may wish to consider:
(i) other superannuation arrangements that may provide a
greater return over the long term; and
(ii) seeking advice on alternative investment strategies that
may be more suitable.
Subdivision 5.4—Periodic statements for retail clients for
financial products that have an investment
component: additional information for
superannuation entities and RSA providers
7.9.29 Application of Subdivision 5.4
This Subdivision applies in relation to a superannuation entity and
an RSA provider.
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Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
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Regulation 7.9.30
Corporations Regulations 2001 243
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.30 Additional information for change to choices
(1) For paragraph 1017D(5)(g) of the Act, a periodic statement for a
holder of a financial product must include, if relevant, either of the
following details (in addition to the details mentioned in
regulation 7.9.20 or 7.9.26, as appropriate):
(a) details of:
(i) other investment strategies available to the holder (if
applicable); and
(ii) other contribution levels available to the holder; and
(iii) other insurance coverage available to the holder in
relation to the financial product;
(b) a statement:
(i) that the details in paragraph (a) are available on request
from the responsible person; and
(ii) about how to ask for the details.
(2) The details or statement must relate to:
(a) an interest in the same sub-plan; or
(b) if there is no sub-plan—an interest in the same
superannuation entity or an RSA.
(3) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to a superannuation entity
and an RSA provider as set out in Part 9 of Schedule 10A.
Subdivision 5.4A—Periodic statements for retail clients for
financial products that have an investment
component: additional information for margin
lending facilities
7.9.30A Application of Subdivision 5.4A
(1) This Subdivision applies in relation to the provider of a margin
lending facility within the meaning of subsection 761EA(1) of the
Act.
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Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
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Division 5 Ongoing requirements for product disclosure after person becomes a
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Regulation 7.9.30B
244 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) For the purposes of this Subdivision, subsection 1017D(5) of the
Act is modified to omit paragraphs (a) to (f).
Note: Paragraph 1020G(1)(c) of the Act provides that the regulations may
provide that Part 7.9 of the Act applies as if specified provisions were
omitted, modified or varied as specified in the regulations.
7.9.30B Details to be included in periodic statements for margin
lending facilities
For paragraph 1017D(5)(g) of the Act, a periodic statement for a
holder of a financial product must include the following details
about the margin lending facility:
(a) the outstanding loan amount;
(b) the loan credit limit;
(c) the current interest rate, and any changes to the interest rate
since the last statement was provided;
(d) an itemised list of the property by which the credit is secured,
including:
(i) the value of each item used for calculating the current
LVR; and
(ii) the loan to value ratio (if any) of each property item
listed;
(e) a summary of the loan to security ratios, showing separately:
(i) the allowable loan to security ratio; and
(ii) the maximum loan to security ratio, including any
buffer allowed under the terms of the facility; and
(iii) the current LVR;
(f) a summary of all transactions affecting the margin lending
facility during the reporting period.
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Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Ongoing requirements for product disclosure after person becomes a member Division
5
Regulation 7.9.31
Corporations Regulations 2001 245
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Subdivision 5.5—Fund information for retail clients for
financial products that have an investment
component: superannuation
7.9.31 Application of Subdivision 5.5
This Subdivision applies in relation to:
(a) a regulated superannuation fund; and
(b) an approved deposit fund; and
(c) a pooled superannuation trust.
7.9.32 Reporting periods: general
(1) For subsection 1017DA(2) of the Act, fund information as
mentioned in Subdivisions 5.6 and 5.7 must be provided, in
accordance with this regulation, to the product holder in a periodic
statement for each fund reporting period during which the holder
holds the product.
(2) The following provisions apply in relation to fund reporting
periods:
(a) each reporting period lasts for:
(i) a period not exceeding 1 year, fixed by the issuer; or
(ii) a longer period fixed by ASIC on the application of the
issuer to which the period relates;
(b) the first reporting period starts when the holder acquired the
product;
(c) each subsequent reporting period starts at the end of the
preceding reporting period.
(3) The periodic fund statement must be given as soon as practicable
after, and in any event within 6 months after the end of the
reporting period to which it relates.
(4) In relation to a fund reporting period, information required to be
given under Subdivisions 5.5 to 5.7 need only be given to persons
Federal Register of Legislative Instruments F2015C00303
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Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
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Division 5 Ongoing requirements for product disclosure after person becomes a
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Regulation 7.9.33
246 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
who are product holders on the day on which the fund report
containing the information is completed.
(5) For subsection 1017DA(2) of the Act, fund information in relation
to a particular product holder that is provided in accordance with
an obligation under section 1017DA of the Act to provide fund
information in accordance with Subdivisions 5.5 to 5.7 need not be
given in respect of the same fund reporting period.
Example: A superannuation fund may choose to report:
(a) some fund information in respect of a 6-month period; and
(b) further fund information, and a periodic report, in respect of a 9-month period; and
(c) the remaining fund information in respect of a 12-month period.
7.9.33 Use of more than 1 document
For subsection 1017DA(2) of the Act, a reference in
Subdivisions 5.5 to 5.7 to a periodic fund report, or fund
information:
(a) includes 2 or more documents that include all of the
information required by those Subdivisions; and
(b) is to be read as if subsections 1013L(1), (2), (3), (5) and (7)
of the Act were included in those Subdivisions, and referred
to a periodic statement instead of a Product Disclosure
Statement.
Subdivision 5.6—Fund information for retail clients for
financial products that have an investment
component: fund information for regulated
superannuation funds and ADFs
7.9.34 Application of Subdivision 5.6
This Subdivision applies in relation to:
(a) a regulated superannuation fund; and
(b) an approved deposit fund.
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Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Ongoing requirements for product disclosure after person becomes a member Division
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Regulation 7.9.35
Corporations Regulations 2001 247
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.35 General requirement
For paragraph 1017DA(1)(a) of the Act, fund information must
include all information that the responsible person reasonably
believes a product holder would reasonably need for the purpose
of:
(a) understanding the management and financial condition of the
fund and of the relevant sub-plan (if any); and
(b) understanding the investment performance of the relevant
sub-plan or, if none, of the fund.
7.9.36 Specific requirements in all cases
For paragraph 1017DA(1)(a) of the Act, fund information must
include all of the following items of information:
(a) the contact details of the fund;
(b) in respect of the relevant sub-plan or, if none, of the fund—a
description of:
(i) the investment strategy of the fund trustee, having
regard to the requirements of paragraph 52(2)(f) of the
SIS Act; and
(ii) the investment objectives.
7.9.37 Specific requirements in particular cases
(1) For paragraph 1017DA(1)(a) of the Act, fund information must
include all of the following, so far as they are applicable:
(a) in respect of the relevant sub-plan or, if none, of the fund—
the names of investment managers appointed by the trustee;
(b) in the case of a standard employer-sponsored fund that is not
a public offer superannuation fund and does not have a
trustee approved under subsection 92(10) of the SIS Act:
(i) if the trustee of the fund is a body corporate, the name
of that body corporate and the names of all its directors
during the whole or any part of the reporting period and,
Federal Register of Legislative Instruments F2015C00303
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Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
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Division 5 Ongoing requirements for product disclosure after person becomes a
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Regulation 7.9.37
248 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
in respect of each of those directors, details of how and
by whom they were appointed;
(ii) if the trustees of the fund are individuals, the names of
the trustees of the fund during the whole or any part of
the relevant reporting period and, in respect of each of
those trustees, details of how and by whom they were
appointed;
(c) in the case of a fund other than a fund mentioned in
paragraph (b):
(i) the name of each corporate trustee of the fund during
the relevant reporting period; and
(ii) in respect of the relevant policy committee (if any),
details of the committee (including the names of the
committee members as at the end of that reporting
period and, in respect of each of the members, details of
how and by whom they were appointed);
(d) a statement as to whether or not any indemnity insurance has
been taken out by the trustee;
(e) either:
(i) the audited fund accounts, the auditor’s report and, if
there is a relevant sub-plan, abridged financial
information relating to that sub-plan; or
(ii) each of the following:
(A) abridged financial information relating to the
relevant sub-plan or, if none, to the fund;
(B) information as to when the audited fund
accounts and the auditor’s report will be sent to
members or will be available to members on
request, as the case may be;
(f) in respect of the relevant sub-plan or, if none, of the fund—a
statement of assets as at the end of:
(i) the relevant reporting period; and
(ii) the immediately preceding reporting period;
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Regulation 7.9.37
Corporations Regulations 2001 249
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
that includes all information that the responsible person
reasonably believes a member would reasonably need to
understand the asset allocation at those times;
(g) details of:
(i) each investment that has a value in excess of 5% of the
total assets of the relevant sub-plan or, if none, of the
fund; and
(ii) each combination of investments that the trustee knows
or ought reasonably to know are invested in, directly or
indirectly, a single enterprise or single group of
associated enterprises and that have a combined value in
excess of 5% of the total assets of the relevant sub-plan
or, if none, of the fund;
(h) a statement regarding the funds policy toward the use of
derivative securities;
(i) if the derivatives charge ratio of the fund (as defined in the
SIS Regulations) exceeded 5% at any time during the
reporting period:
(i) the derivatives charge ratio as at the end of the reporting
period; and
(ii) the highest derivatives charge ratio attained during the
reporting period; and
(iii) an explanation of why the derivatives charge ratio
exceeded 5%; and
(iv) an explanation of the meaning of derivatives charge
ratio in, or to the effect of the following:
‘The derivatives charge ratio is the percentage of the
total market value of the assets of the fund (other than
cash) that the trustee has charged as security for
derivatives investments made by the trustee.’;
(k) if the fund maintains reserves—in respect of the relevant
sub-plan or, if none, of the fund, details of movements of
reserves during the most recent reporting periods that, in
total, constitute at least 3 years;
Federal Register of Legislative Instruments F2015C00303
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Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
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Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.37
250 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(l) if the net earnings of the fund are allotted to members’
accounts—in respect of the relevant sub-plan or, if none, of
the fund, the manner in which the allotment is made;
(m) if the fund maintains reserves—in respect of the relevant
sub-plan or, if none, of the fund, a description of the
management strategy of the fund trustee in relation to the
reserves, having regard to the requirements of
paragraph 52(2)(g) of the SIS Act;
(n) details of any penalties imposed on the responsible person
under:
(i) section 38A of the SIS Act; or
(ii) section 182 of the RSA Act;
(o) if the fund is:
(i) a defined benefit fund; and
(ii) the contributions paid by the employer-sponsor in the
reporting period are less than the amount that an actuary
has approved as sufficient contributions in that period;
and
(iii) the difference is material;
in respect of the relevant sub-plan or, if none, of the fund—a
statement to the effect that the matters stated in
subparagraphs (ii) and (iii) apply, and statements of:
(iv) the consequences for the fund of the shortfall; and
(v) any action that the trustee has taken, or proposes to take,
in relation to the matter;
(p) the ultimate source (including, for example, the fund’s
reserves, the members’ accounts or the employer) from
which payments in connection with superannuation
contributions surcharges or advance instalments of surcharge
will be drawn;
(q) if there are circumstances in which the trustee would pay the
member’s benefit to an eligible rollover fund:
(i) details of those circumstances; and
(ii) the contact details of the eligible rollover fund; and
Federal Register of Legislative Instruments F2015C00303
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Regulation 7.9.38
Corporations Regulations 2001 251
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(iii) a statement of the effect of the payment of benefits to
the eligible rollover fund.
(2) A nil amount need not be disclosed.
(3) For subparagraph (1)(g)(ii), investments in a trust are taken not to
be invested in the trustee of the trust.
(5) In this regulation:
abridged financial information, in relation to a reporting period of
a fund or a sub-plan, means information derived from the fund’s
accounts or records that gives a reasonable summary of either:
(a) both:
(i) changes in the financial position of the fund or sub-plan
during the reporting period; and
(ii) the financial position of the fund or sub-plan at the end
of the reporting period; or
(b) both:
(i) changes in the net assets of the fund or sub-plan during
the reporting period; and
(ii) the net assets of the fund or the sub-plan at the end of
the reporting period.
7.9.38 Specific information in particular case: self managed
superannuation fund
For subsection 1017DA(1) of the Act, fund information for a self
managed superannuation fund must include only the information
mentioned in paragraph 7.9.37(1)(p).
7.9.39 Benefits determined by life insurance products
(1) Paragraphs 7.9.37(1)(e), (f) and (g) do not apply to funds from
which the benefits paid to each member are wholly determined by
reference to life insurance products.
Federal Register of Legislative Instruments F2015C00303
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Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.40
252 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) If:
(a) subregulation (1) does not apply only because shares in the
life insurance company issuing the life insurance products
were acquired because the company was demutualised; and
(b) the shares have been held for not more than 18 months after
the date of acquisition;
paragraphs 7.9.37(1)(e), (f) and (g) do not apply to funds from
which the benefits paid to each individual member would
otherwise be wholly determined by reference to life insurance
products.
(3) If subregulation (1) or (2) applies, the fund information must
include the reason why the information for paragraphs 7.9.37(1)(e),
(f) and (g) has not been given.
Subdivision 5.7—Fund information for retail clients for
financial products that have an investment
component: fund information for pooled
superannuation trusts
7.9.40 Application of Subdivision 5.7
This Subdivision applies in relation to a pooled superannuation
trust.
7.9.41 Specific requirements in all cases
For subsection 1017DA(1) of the Act, fund information must
include the following:
(a) in respect of the pooled superannuation trust—a description
of the investment strategy of the pooled superannuation trust
trustee, having regard to:
(i) the requirements of paragraph 52(2)(f) of the SIS Act;
and
(ii) the investment objectives of the pooled superannuation
trust;
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Financial services and markets Chapter 7
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Regulation 7.9.42
Corporations Regulations 2001 253
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) a statement to the effect that other information is available on
request.
7.9.42 Specific requirements in particular cases
(1) For subsection 1017DA(1) of the Act, and subject to
subregulations (2) and (3), fund information must include the
following, so far as they are applicable:
(a) in respect of the pooled superannuation trust—the names of
investment managers appointed by the trustee;
(b) the name of each approved trustee of the pooled
superannuation trust during the relevant reporting period;
(c) either:
(i) the audited accounts of the pooled superannuation trust
and the auditor’s report; or
(ii) each of the following:
(A) abridged financial information relating to the
pooled superannuation trust;
(B) information as to when the audited accounts of
the pooled superannuation trust and the
auditor’s report will be sent to unit-holders or
will be available to unit-holders on request, as
the case may be;
(d) in respect of the pooled superannuation trust—a statement of
assets as at the end of:
(i) the relevant reporting period; and
(ii) the immediately preceding reporting period;
that includes sufficient information to enable unit-holders to
understand the asset allocation at those times;
(e) details of:
(i) each investment that has a value in excess of 5% of the
total assets of the pooled superannuation trust; and
(ii) details of each combination of investments that the
trustee knows or ought reasonably to know are invested,
directly or indirectly, in a single enterprise or single
Federal Register of Legislative Instruments F2015C00303
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Division 5 Ongoing requirements for product disclosure after person becomes a
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Regulation 7.9.42
254 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
group of associated enterprises and that have a
combined value in excess of 5% of the total assets of the
pooled superannuation trust;
(f) in respect of the pooled superannuation trust—the effective
rate of net earnings of the pooled superannuation trust in the
most recent reporting periods that, in total, constitute a period
of at least 3 years;
(g) the information about costs of transactions mentioned in
regulation 7.9.75;
(h) details of any penalties imposed on the trustee under:
(i) section 38A of the SIS Act; or
(ii) section 182 of the RSA Act.
(2) A nil amount need not be disclosed.
(3) For subparagraph (1)(e)(ii), investments in a trust are taken not to
be invested in the trustee of the trust.
(4) In this regulation:
abridged financial information, in relation to a reporting period of
a pooled superannuation trust, means information derived from the
pooled superannuation trust’s accounts that gives a reasonable
summary of:
(a) changes in the pooled superannuation trust’s financial
position during the reporting period; and
(b) the pooled superannuation trust’s financial position at the end
of the reporting period.
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Regulation 7.9.43
Corporations Regulations 2001 255
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Subdivision 5.8—Ongoing disclosure of material changes and
significant events
7.9.43 Modification of Act: disclosure of material changes and
significant events in relation to superannuation products
and RSA products
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to:
(a) a regulated superannuation fund (other than a self managed
superannuation fund); and
(b) an approved deposit fund (other than an excluded approved
deposit fund); and
(c) a pooled superannuation trust; and
(d) an RSA;
as set out in Part 10 of Schedule 10A.
7.9.44 Benefits to be paid to eligible rollover fund
(1) For subsection 1017DA(1) of the Act, if the benefits of a
superannuation product holder or RSA product holder will be paid
(otherwise than under a payment split) to an eligible rollover fund
unless the holder chooses, within a specified period, another
superannuation entity, an EPSSS or an RSA to which those
benefits will be paid, the responsible person must give a notice to
the product holder within a reasonable period to allow a decision to
be made.
(2) The notice must include:
(a) information about the payment to the eligible rollover fund
that will assist the product holder to decide between having
the benefits paid to that other superannuation entity, the
EPSSS, the RSA or the eligible rollover fund; and
(b) so much of the following information as is relevant:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
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Regulation 7.9.44
256 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) an explanation why the product issuer (the transferor)
intends to pay the product holder’s benefits to the
eligible rollover fund if the product holder does not
make the choice within the period;
(ii) a statement of the effect of the payment of benefits to
the eligible rollover fund;
(iii) the contact details of the eligible rollover fund;
(iv) subject to subregulation (3), the amount, of the product
holder’s benefits that will be paid from the transferor;
(v) a statement to the effect that, if the product holder
chooses a superannuation entity, EPSSS or RSA that
refuses to accept the payment of the product holder’s
benefit, or the product holder makes no choice within
the specified period, the responsible person will pay the
product holder’s benefits to the eligible rollover fund.
(3) For subparagraph (2)(b)(iv), the product issuer may inform a
product holder of the approximate amount of the product holder’s
benefits if, at the time the information is to be given, the
responsible person cannot determine the exact amount of the
product holder’s benefits that will be paid from the superannuation
entity or RSA.
(4) This regulation does not require the responsible person of the
transferor to provide information about RSAs, EPSSSs or
superannuation entities other than the eligible rollover fund.
(5) The notice may be given in writing or electronic form.
(6) In this regulation:
responsible person means:
(a) a trustee of a superannuation entity; or
(b) an RSA provider.
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Financial services and markets Chapter 7
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products Part 7.9
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5
Regulation 7.9.45
Corporations Regulations 2001 257
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Subdivision 5.9—Information on request: members
7.9.45 Regulated superannuation funds, ADFs and pooled
superannuation trusts
(1) This regulation applies in relation to:
(a) a regulated superannuation fund (other than a self managed
superannuation fund); and
(b) an approved deposit fund (other than an excluded approved
deposit fund); and
(c) a pooled superannuation trust.
(2) For paragraph 1017C(5)(a) of the Act, the following are prescribed
documents:
(a) the governing rules of the fund or pooled superannuation
trust;
(b) audited accounts of the fund or pooled superannuation trust,
together with (whether or not specifically requested) the
auditor’s report in relation to the accounts;
(c) for a fund—the most recent actuarial report (as referred to in
regulation 9.30 of the SIS Regulations) on the fund, and any
subsequent written advice by an actuary to the trustee, to the
extent that those documents are relevant to:
(i) the overall financial condition of the fund; or
(ii) the entitlements of a person;
(d) a copy of the fund information given under section 1017DA
of the Act, or Subdivision 2.4.3 of the SIS Regulations, that
was most recently given to the members;
(f) if, for a pooled superannuation trust:
(i) fund information prepared for Subdivision 5.7 of
Division 5; or
(ii) information similar to fund information prepared for the
SIS Regulations;
is relevant to the pooled superannuation trust, the fund
information.
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Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.46
258 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) If the person requesting the information is not a concerned person
or an employer-sponsor, the documents mentioned in
paragraphs (1)(a) and (c) are not prescribed documents.
7.9.46 RSAs
(1) This regulation applies in relation to an RSA.
(2) For paragraph 1017C(5)(a) of the Act, the terms and conditions of
the RSA are a prescribed document.
Subdivision 5.10—Information on request: payments
7.9.47 Modification of Act: charges for information requested
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to a superannuation entity or
an RSA provider as set out in Part 11 of Schedule 10A.
Subdivision 5.11—Information about complaints
7.9.48 Source of power for this Subdivision
This Subdivision is made for section 1017DA of the Act.
7.9.48A Definitions
In this Subdivision:
decision-maker means:
(a) the trustee of a regulated superannuation fund or approved
deposit fund; or
(b) an RSA provider.
eligible person means any of the following:
(a) a beneficiary of a relevant entity;
(b) a former beneficiary of a relevant entity;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
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products Part 7.9
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Regulation 7.9.48B
Corporations Regulations 2001 259
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) the executor or administrator of the estate of a former
beneficiary of a relevant entity;
(d) for a complaint that relates to the payment of a death
benefit—a person who:
(i) has an interest in the death benefit; or
(ii) claims to be, or to be entitled to death benefits through,
a person mentioned in subparagraph (i).
relevant entity means any of the following:
(a) a regulated superannuation fund;
(b) an approved deposit fund;
(c) an RSA.
7.9.48B Complaints—general
(1) This regulation applies to a decision-maker if:
(a) an eligible person makes a complaint; and
(b) the decision-maker makes a decision in relation to the
complaint in accordance with the relevant entity’s internal
dispute resolution mechanism.
(2) The decision-maker must, within 30 days of making the decision,
inform the eligible person:
(a) of the date of the decision; and
(b) about the external dispute resolution system that covers
complaints by eligible persons; and
(c) about how that system may be accessed.
Example: Information about the Superannuation Complaints Tribunal.
7.9.48C Complaints about benefits other than death benefits—
decision made
(1) This regulation applies to a decision-maker if:
(a) an eligible person makes a complaint; and
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Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.48D
260 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the complaint is not a complaint that relates to the payment
of a death benefit; and
(c) the decision-maker makes a decision in relation to the
complaint in accordance with the relevant entity’s internal
dispute resolution mechanism.
(2) The decision-maker must, within 30 days of making the decision,
inform the eligible person:
(a) that the eligible person may, in writing, request written
reasons for the decision; and
(b) that the reasons mentioned in paragraph (a) must be given:
(i) within 28 days of the eligible person’s request under
paragraph (a); or
(ii) if the Regulator gives the decision-maker an
extension—within the extended period.
7.9.48D Complaints about benefits other than death benefits—no
decision made
(1) This regulation applies to a decision-maker if:
(a) an eligible person makes a complaint; and
(b) the complaint is not a complaint that relates to the payment
of a death benefit; and
(c) the decision-maker has not made a decision in relation to the
complaint.
(2) The decision-maker must, within 45 days of the complaint, inform
the eligible person:
(a) that if the decision is not made within 90 days of the
complaint, the eligible person may, in writing, request
written reasons for the failure to make the decision; and
(b) that the reasons mentioned in paragraph (a) must be given:
(i) within 28 days of the eligible person’s request under
paragraph (a); or
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
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products Part 7.9
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Regulation 7.9.48A
Corporations Regulations 2001 261
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) if the Regulator gives the decision-maker an
extension—within the extended period.
7.9.48A Definitions
In this Subdivision:
decision-maker means:
(a) the trustee of a regulated superannuation fund or approved
deposit fund; or
(b) an RSA provider.
eligible person means any of the following:
(a) a beneficiary of a relevant entity;
(b) a former beneficiary of a relevant entity;
(c) the executor or administrator of the estate of a former
beneficiary of a relevant entity;
(d) for a complaint that relates to the payment of a death
benefit—a person who:
(i) has an interest in the death benefit; or
(ii) claims to be, or to be entitled to death benefits through,
a person mentioned in subparagraph (i).
relevant entity means any of the following:
(a) a regulated superannuation fund;
(b) an approved deposit fund;
(c) an RSA.
7.9.48B Complaints—general
(1) This regulation applies to a decision-maker if:
(a) an eligible person makes a complaint; and
(b) the decision-maker makes a decision in relation to the
complaint in accordance with the relevant entity’s internal
dispute resolution mechanism.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.49
262 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) The decision-maker must, within 30 days of making the decision,
inform the eligible person:
(a) of the date of the decision; and
(b) about the external dispute resolution system that covers
complaints by eligible persons; and
(c) about how that system may be accessed.
Example: Information about the Superannuation Complaints Tribunal.
Subdivision 5.12—Periodic report when product holder ceases
to hold product: superannuation products and RSA
products
7.9.49 Application of Subdivision 5.12
For paragraph 1017D(5)(g) of the Act, this Subdivision applies in
relation to:
(a) superannuation products; and
(b) RSA products.
7.9.50 Exit reporting period
In this Subdivision, exit reporting period, in relation to a person
who ceases to hold a product to which this Subdivision applies,
means the reporting period mentioned in paragraph 1017D(2)(d) of
the Act.
7.9.51 Time for compliance
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to a fund as set out in Part 12
of Schedule 10A.
7.9.52 General requirement
For paragraph 1020G(2)(b) of the Act, subsections 1017D(2) and
(4) of the Act are modified, in its application in relation to a person
Federal Register of Legislative Instruments F2015C00303
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products Part 7.9
Ongoing requirements for product disclosure after person becomes a member Division
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Regulation 7.9.53
Corporations Regulations 2001 263
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
who ceases to hold a superannuation product or an RSA product
(other than a product issued by a capital guaranteed fund) by
requiring the issuer of the product to give all information to:
(a) if the person is alive—the person; or
(b) if the person is deceased—each person receiving a benefit as
a result of the person’s death;
that the trustee reasonably believes such a person would reasonably
need for the purpose of understanding his or her investment in the
financial product.
7.9.53 Information on death of product holder
For paragraph 1017D(5)(g) of the Act, if a person ceases by death
to hold a superannuation product (other than an interest in a pooled
superannuation trust) or an RSA product, the periodic report given
to each person receiving a benefit from the issuer of the product as
a result of the person’s death must include:
(a) a statement setting out details (in summary form) of
arrangements that the issuer has made to deal with inquiries
and information about the dispute resolution system that
covers complaints; or
(b) a statement that the details are available on request.
7.9.54 Specific requirements in all cases
For paragraph 1017D(5)(g) of the Act, if a reporting period is the
exit reporting period, the issuer of a superannuation product (other
than the trustee of a self managed superannuation fund or pooled
superannuation trust) must include in the periodic report given to a
person who ceases, otherwise than by death to hold the product:
(a) the information mentioned in regulation 7.9.19; and
(b) in relation to a death or disability benefit that ceases or
reduces, because the person has ceased to hold the product:
(i) either:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
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Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.55
264 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(A) the amount of the death or disability benefit
immediately before the person ceased to hold
the product or at the end of the last reporting
period; or
(B) the method of working out the death or
disability benefit; and
(ii) whether a continuation option is available to the person
and, if it is, details of the option, a contact person who is
available to discuss the option and a telephone number
for the contact person.
7.9.55 Specific requirements in particular cases
(1) For paragraph 1017D(5)(g) of the Act, if a reporting period is the
exit reporting period, the issuer of a superannuation product (other
than the trustee of a self managed superannuation fund or pooled
superannuation trust) must include in the periodic report given to a
person who ceases, otherwise than by death to hold the product, the
information mentioned in regulation 7.9.20.
(2) A nil amount need not be disclosed.
7.9.56 Exceptions to exit reporting period provisions:
superannuation products and RSA products
This Subdivision does not apply in relation to a superannuation
product holder who has been provided with the relevant
information in the circumstances described in Part 13 of
Schedule 10A.
7.9.57 Exception—members subject to compulsory protection of
small amounts
For paragraph 1017D(5)(g) of the Act, if a protected holder of a
superannuation product or RSA product ceases to hold the product,
a periodic statement must include the following information for the
exit reporting period:
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Financial services and markets Chapter 7
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products Part 7.9
Ongoing requirements for product disclosure after person becomes a member Division
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Regulation 7.9.58
Corporations Regulations 2001 265
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the contact details of the product provider;
(b) the amount of the product holder’s withdrawal benefit;
(c) the amount of any deduction, from the product holder’s
benefits, in connection with payment of a superannuation
contributions surcharge, or an advance instalment of
surcharge, during the exit reporting period;
(d) if there is a difference between the amount deducted and the
amount assessed under subsection 15(1) of the
Superannuation Contributions Tax (Assessment and
Collection) Act 1997, or between the amount deducted and
the amount determined under subsection 15(2) of that Act—a
statement explaining the difference;
(e) for a superannuation product provided by an unfunded
defined benefits fund—details of the surcharge debt account
kept by the issuer, under subsection 16(2) of the
Superannuation Contributions Tax (Assessment and
Collection) Act 1997, for the holder including:
(i) the balance of the account at the start of the exit
reporting period; and
(ii) the amount debited to the account during the exit
reporting period for superannuation contributions
surcharge that is assessed, by the Commissioner of
Taxation, to be payable on the member’s surchargeable
contributions; and
(iii) the amount of interest debited to the account, under
subsection 16(4) of that Act, during the exit reporting
period; and
(iv) the balance of the account at the end of the exit
reporting period.
7.9.58 Information to be given in cases other than death of RSA
holder
(1) For paragraph 1017D(5)(g) of the Act, if a reporting period for an
RSA is the exit reporting period to which paragraph 1017D(2)(d)
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.59
266 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
of the Act applies for an RSA holder who ceases to be an RSA
holder, otherwise than by death:
(a) the RSA provider must give the RSA holder the information
mentioned in regulation 7.9.19; and
(b) regulation 7.9.22 does not apply.
(2) A nil amount need not be disclosed.
7.9.59 Information to be given where applicable
(1) For paragraph 1017D(5)(g) of the Act, if a reporting period for an
RSA is the exit reporting period to which paragraph 1017D(2)(d)
of the Act applies for an RSA holder who ceases to be an RSA
holder, otherwise than by death, the RSA provider must give the
RSA holder:
(a) the information mentioned in regulation 7.9.26 (other than
paragraphs 7.9.26(1)(h), (i), (l) and (m); and
(b) in the case of a death benefit that ceases or reduces, or will
cease or reduce, because the person has closed the RSA:
(i) either:
(A) the amount of the death benefit immediately
before the person closed the RSA or at the end
of the last RSA holder reporting period; or
(B) the method of working out the death benefit;
and
(ii) whether a continuation option for insurance cover is
available to the person and, if it is, details of the option,
a contact person who is available to discuss the option
and a telephone number for the contact person.
(2) A nil amount need not be disclosed.
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Financial services and markets Chapter 7
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products Part 7.9
Ongoing requirements for product disclosure after person becomes a member Division
5
Regulation 7.9.60
Corporations Regulations 2001 267
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.60 Modification of Act: exceptions to exit reporting period
provisions
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to an RSA as set out in
Part 13 of Schedule 10A.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5AA General requirements for financial disclosure
Regulation 7.9.60A
268 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5AA—General requirements for financial
disclosure
7.9.60A Modification of Act: disclosure
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to the obligation to give
information about financial products as set out in Part 14 of
Schedule 10A.
7.9.60B Disclosure of transactions in periodic statements
(1) This regulation applies to the following periodic statements:
(a) for a financial product other than a superannuation product, a
managed investment product or an investment life insurance
product—a periodic statement in relation to a reporting
period commencing on or after 1 July 2005;
(b) for a superannuation product:
(i) if the periodic statement is not an exit statement—a
periodic statement in relation to a reporting period
commencing on or after 1 July 2005; and
(ii) if the periodic statement is an exit statement—a periodic
statement issued on or after 1 July 2006;
(c) for a managed investment product:
(i) if the periodic statement is not an exit statement—a
periodic statement in relation to a reporting period
commencing on or after 1 July 2006; and
(ii) if the periodic statement is an exit statement—a periodic
statement issued on or after 1 July 2007;
(d) for an investment life insurance product:
(i) if the periodic statement is not an exit statement—a
periodic statement in relation to a reporting period
commencing on or after 1 July 2005; and
(ii) if the periodic statement is an exit statement—a periodic
statement issued on or after 1 July 2006.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
General requirements for financial disclosure Division 5AA
Regulation 7.9.60B
Corporations Regulations 2001 269
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) For paragraph 1017D(5)(c) of the Act, the periodic statement must
include a brief description of each transaction in relation to the
product during the reporting period.
(3) The amount of a transaction must include, if applicable:
(a) GST; and
(b) stamp duty; and
(c) income tax, after deductions have been taken into account.
(4) The description of a contribution paid into a superannuation
account must be sufficient to identify the source of the
contribution, if that information has been recorded by the fund.
(5) A transaction (other than a contribution) of the same kind as
another transaction may be described with the other transaction in a
single item in the periodic statement if:
(a) it is practicable to do so; and
(b) the items are described together on a consistent basis in the
periodic statement.
Example: If a member incurs a weekly management cost, the transactions may
be grouped consistently on a monthly basis in the member’s periodic
statement.
(6) For a superannuation product or a managed investment product, the
only fees and costs that need to be itemised in a periodic statement
are the fees and costs shown in the fees and costs template for a
Product Disclosure Statement in Part 2 of Schedule 10.
(7) The fees and costs mentioned in subsection (6) must be described
using the terms used in the template.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5AB Short-Form Product Disclosure Statements
Regulation 7.9.61AA
270 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5AB—Short-Form Product Disclosure Statements
7.9.61AA Modification of the Act: Short-Form Product Disclosure
Statements
Definition of Short-Form Product Disclosure Statement
(1) For the provisions of the Act set out in column 2 of the following
table, the Parts of the Act specified in column 3 apply as if
section 761A of the Act were modified by inserting after the
definition of self-managed superannuation fund the following
definition:
“Short-Form Product Disclosure Statement, or Short-Form PDS,
means a short-form Product Disclosure Statement that complies
with the requirements of Division 3A of Part 7.9.”
Column 1 Column 2 Column 3
Item Provisions of Act
1 paragraph 951C(1)(c) Part 7.7
2 paragraph 992C(1)(c) Part 7.8
3 paragraph 1020G(1)(c) Part 7.9
Definition of Supplementary Short-Form Product Disclosure
Statement
(2) For the provisions of the Act set out in column 2 of the following
table, the Parts of the Act specified in column 3 apply as if
section 761A of the Act were modified by inserting after the
definition of Supplementary Product Disclosure Statement the
following definition:
“Supplementary Short-Form Product Disclosure Statement, or
Supplementary Short-Form PDS, has the meaning given by
section 1017L.”
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Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Short-Form Product Disclosure Statements Division 5AB
Regulation 7.9.61AA
Corporations Regulations 2001 271
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Column 1 Column 2 Column 3
Item Provisions of Act
1 paragraph 951C(1)(c) Part 7.7
2 paragraph 992C(1)(c) Part 7.8
3 paragraph 1020G(1)(c) Part 7.9
Further modifications in Schedule 10BA
(3) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act is
modified in its application in relation to Short-Form Product
Disclosure Statements as set out in Schedule 10BA.
(4) For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act is
modified in its application to Short-Form Product Disclosure
Statements as set out in Schedule 10BA.
(5) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application to Short-Form Product Disclosure
Statements as set out in Schedule 10BA.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5A Dealing with money received for financial product before the product is
issued
Regulation 7.9.61A
272 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5A—Dealing with money received for financial
product before the product is issued
7.9.61A Lost application money
(1) This regulation applies if:
(a) a product provider is not able to return money in compliance
with subsection 1017E(4) of the Act; and
(b) the product provider is not able to issue or transfer a financial
product to, or in accordance with the instructions of, the
person who paid that money in compliance with
subsection 1017E(4); and
(c) the money is to be transferred to ASIC to be dealt with under
Part 9.7 of the Act.
(2) This regulation also applies if:
(a) money is taken out of an account mentioned in
subsection 1017E(2) of the Act by a product provider for the
purpose of returning it to the person by whom it was paid in
compliance with paragraph 1017E(3)(a); and
(b) the product provider is not able to return the money in
compliance with subsection 1017E(4).
(3) For paragraph 1017E(3)(d) of the Act, the situations mentioned in
subregulations (1) and (2) are situations in which money may be
taken out of an account mentioned in section 1017E.
(4) For paragraph 1017E(4)(c) of the Act, the product provider must,
after taking the money out of the account:
(a) transfer the money to ASIC to be dealt with under Part 9.7 of
the Act; and
(b) give ASIC any information in the possession of the product
provider that could reasonably assist ASIC to assess a claim
by a person that the person is entitled to the money.
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Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Dealing with money received for financial product before the product is issued
Division 5A
Regulation 7.9.61B
Corporations Regulations 2001 273
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.61B Issue of substitute insurance product
(1) This regulation applies if:
(a) money is paid to acquire an insurance product (the new
product); and
(b) the product provider issues another product (the other
product) which is the same as the new product except for the
date on which it ceases to have effect; and
(c) the product provider has not issued the new product.
(2) For paragraph 1017E(3)(d) of the Act, the situation mentioned in
subregulation (1) is a situation in which money may be taken out of
an account mentioned in section 1017E.
(3) For paragraph 1017E(4)(c) of the Act, the product provider must,
after taking the money out of the account:
(a) issue the new product before the date on which the other
product ceases to have effect; or
(b) return the money to the person by whom it was paid before
the date on which the other product ceases to have effect.
7.9.61C Cheques
For paragraph 1020G(1)(c) of the Act, Part 7.9 applies as if
section 1017E of the Act were modified by adding, after
subsection 1017E(6):
‘(7) For this section, if a payment is made by cheque, the
payment is taken to have been paid to, and received by, the
product provider when the cheque is honoured.’.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5B Confirming transactions
Regulation 7.9.61D
274 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5B—Confirming transactions
7.9.61D Transactions involving superannuation products
(1) For paragraph 1020G(1)(c) of the Act, this regulation applies in
relation to the following financial products:
(a) an interest in a regulated superannuation fund that is not a
public offer superannuation fund;
(b) an RSA product that has been issued to the product holder
because of the operation of subsection 52(4) of the RSA Act;
(c) an interest in an eligible rollover fund of which the product
holder became a member under section 243 of the SIS Act;
(d) an interest in an eligible rollover fund of which the product
holder became a member in the circumstances mentioned in
section 89 of the RSA Act;
(e) an interest in a public offer superannuation fund that is not a
successor fund if:
(i) the product holder is a standard employer-sponsored
member of the fund; or
(ii) the product holder is a person who became a member of
the fund in the circumstances mentioned in
regulation 7.9.06B.
(2) Part 7.9 of the Act applies in relation to the financial products as if
the following subsection were inserted after subsection 1017F(5A)
of the Act:
‘(5B) For a financial product mentioned in regulation 7.9.61D of
the Corporations Regulations 2001:
(a) subsection (5A) does not apply if the responsible person
in relation to a transaction involving the financial
product provides the holder of the financial product with
a facility that is able to be accessed by the holder:
(i) by phone; or
(ii) by writing; or
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Confirming transactions Division 5B
Regulation 7.9.61D
Corporations Regulations 2001 275
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(iii) by another method that the responsible person
knows, or reasonably believes, that the product
holder is able to use; and
(b) confirmation may be provided by means of the facility
mentioned in paragraph (a).’.
(3) Part 7.9 of the Act applies in relation to the financial products as if
paragraph 1017F(6)(a) of the Act were replaced by the following
paragraph:
‘(a) must be:
(i) by telephone; or
(ii) by writing; or
(iii) by another method that the responsible person
knows, or reasonably believes, that the product
holder is able to use; and’.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5C CGS depository interests
Regulation 7.9.61E
276 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5C—CGS depository interests
7.9.61E CGS depository interest information website
(1) This regulation is made for section 1020AH of the Act.
(2) The CGS depository interest information website is the website at
www.australiangovernmentbonds.gov.au.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Confirmation of transactions Division 6
Regulation 7.9.62
Corporations Regulations 2001 277
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 6—Confirmation of transactions
7.9.62 Confirmation of transaction: superannuation products and
RSAs
(1) For paragraph 1017F(4)(e) of the Act, a transaction is not required
to be confirmed by the trustee of a superannuation fund, an ADF or
pooled superannuation trust if:
(a) the transaction relates to the termination of a superannuation
product; and
(b) the trustee has provided information in accordance with
section 1017D of the Act and Subdivision 5.12 of these
Regulations about having left the superannuation fund, ADF
or pooled superannuation trust.
(1A) For paragraph 1017F(4)(e) of the Act, a transaction is not required
to be confirmed by the trustee of a superannuation fund if the
transaction relates to a superannuation product provided by a self
managed superannuation fund.
(2) For paragraph 1017F(4)(e) of the Act, a transaction is not required
to be confirmed to the product holder by an RSA provider if:
(a) the transaction relates to an RSA; and
(b) the trustee has provided information in accordance with
section 1017D of the Act and Subdivision 5.12 of these
Regulations about closing the RSA.
(3) For paragraph 1017F(4)(e) of the Act, the following transactions in
relation to a financial product are not required to be confirmed:
(a) debiting for fees, taxes or charges in respect of the financial
product or other transactions involving the financial product;
(b) debiting for charges or duties on deposits into, or
withdrawals from, the financial product that are payable
under a law of the Commonwealth or of a State or Territory;
(c) debiting an amount from a basic deposit product or an FHSA
product if:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 6 Confirmation of transactions
Regulation 7.9.62
278 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) the holder of the product has been given a periodic
statement under section 1017D of the Act not later than
6 months after the transaction occurs; and
(ii) the periodic statement contains the information about
the transaction that is required by that section;
(d) crediting an amount to a basic deposit product or an FHSA
product if:
(i) the holder of the product has been given a periodic
statement under section 1017D of the Act not later than
6 months after the transaction occurs; and
(ii) the periodic statement contains the information about
the transaction that is required by that section.
(4) For paragraph 1017F(4)(e) of the Act, the following transactions in
relation to a financial product are not required to be confirmed:
(a) a transaction that is required or authorised by a law of the
Commonwealth or of a State or Territory;
(b) a transaction:
(i) consisting solely of an additional contribution towards
the financial product; and
(ii) in relation to which the holder has agreed to the timing
and amount, or method of calculating the amount, of the
additional contribution;
(c) a transaction:
(i) consisting solely of a withdrawal from the financial
product; and
(ii) in relation to which the holder has agreed to the timing
and amount, or method of calculating the amount, of the
withdrawal;
(d) a transaction:
(i) consisting solely of the acquisition of managed
investment products; and
(ii) in relation to which the holder has agreed to the timing
and amount, or method of calculating the amount, of the
acquisition; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Confirmation of transactions Division 6
Regulation 7.9.62
Corporations Regulations 2001 279
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(iii) in relation to which the holder of the managed
investment products, before agreeing to the acquisition,
already held or had agreed to acquire managed
investment products that were interests in the same
registered managed investment scheme as the managed
investment products that are to be acquired under the
agreement;
(e) a transaction that relates to:
(i) a superannuation product or an RSA product; and
(ii) a superannuation surcharge liability for a product holder
arising under section 10 of the Superannuation
Contribution Tax (Assessment and Collections) Act
1997;
(f) the acceptance or settlement of a claim relating to an
insurance product;
(g) a transaction consisting of:
(i) the generating by a financial product of a financial
return or other benefit for the holder of the product; or
(ii) the payment to that holder of that return or other benefit,
if the holder has agreed to the method by which the
payment will be made; or
(iii) crediting negative interest to a member’s notional
account in a superannuation fund, ADF or pooled
superannuation trust account;
(h) a transaction that relates to:
(i) a superannuation product or an RSA product; and
(ii) a Government co-contribution arising under section 6 of
the Superannuation (Government Co-contribution for
Low Income Earners) Act 2003.
(5) For paragraph 1017F(4)(e) of the Act, a transaction in relation to a
financial product is not required to be confirmed if:
(a) the transaction is debiting an amount from a basic deposit
product in the circumstances in paragraph (3)(c); and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 6 Confirmation of transactions
Regulation 7.9.63
280 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the transaction involves the use of a facility for making
non-cash payments that is linked to the basic deposit product;
and
(c) the amount is debited from the basic deposit product for the
purpose of making a payment.
(6) For paragraph 1017F(4)(e) of the Act, a transaction in relation to a
financial product is not required to be confirmed if:
(a) the transaction is crediting an amount to a credit facility; and
(b) the transaction involves the use of a facility for making
non-cash payments that is linked to the credit facility; and
(c) the amount is credited to the credit facility for the purpose of
making a payment.
7.9.63 Confirmation of transactions: precise costs of transaction not
known
(1) For subparagraph 1017F(8)(c)(iii) of the Act, the confirmation of a
transaction of a financial product is not required to include details
of the amount payable by the holder of the financial product if the
amount is not known at the time of the confirmation.
(2) For subparagraph 1017F(8)(c)(iv) of the Act, the confirmation of a
transaction of a financial product is not required to give details of
the taxes and stamp duties payable in relation to the transaction if
the amount of the taxes and stamp duties is not known at the time
of the confirmation.
(3) For paragraph 1017F(9)(c) of the Act, section 1017F of the Act is
modified in relation to its application to a transaction of a financial
product as set out in Part 15 of Schedule 10A.
7.9.63A Persons who must confirm transactions
(1) For paragraph 1017F(9)(a) of the Act, this regulation modifies
subsection 1017F(2) of the Act to change the person required to
provide confirmation of a transaction.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Confirmation of transactions Division 6
Regulation 7.9.63A
Corporations Regulations 2001 281
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) A transaction:
(a) that is not the issue of a financial product (other than a
derivative that is not a warrant); and
(b) in which a financial services licensee deals in the financial
product on behalf of the holder of the financial product; and
(c) by which the holder acquires or disposes of all or part of the
financial product;
must be confirmed by the financial services licensee.
(3) A transaction:
(a) to which subregulation (2) does not apply; and
(b) by which a financial product is issued to a holder;
must be confirmed by the issuer of the financial product.
(4) A transaction:
(a) that is a sale pursuant to an offer to which section 1012C of
the Act applies; and
(b) to which subregulation (2) does not apply; and
(c) by which a holder acquires a financial product;
must be confirmed by the seller of the financial product.
(5) A transaction:
(a) to which subregulation (2) does not apply; and
(b) by which the holder of the financial product disposes of all or
part of the financial product to the issuer of the financial
product;
must be confirmed by the issuer of the financial product.
(6) A transaction that:
(a) relates to a financial product held by a particular holder; and
(b) occurs while that holder holds the financial product; and
(c) is not the acquisition or a disposal of all or part of the
financial product;
must be confirmed by the issuer of the financial product.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 6 Confirmation of transactions
Regulation 7.9.63B
282 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.63B Content of confirmation of transactions—general
(1) For paragraph 1017F(8)(d) of the Act, this regulation applies in
relation to a transaction that is the acquisition or disposal of a
financial product.
(2) The confirmation of the transaction must identify:
(a) the financial product; and
(b) the number or amount of financial products that are the
subject of the transaction.
(3) If the transaction takes place in the ordinary course of business on
a licensed market, the confirmation of the transaction must also
identify each licensed market of which the responsible person is a
participant.
(4) If the responsible person is dealing on their own behalf with a
person who is not a financial services licensee, the confirmation of
the transaction must also state that the responsible person is dealing
in that way.
(5) Subregulation (4) does not apply if:
(a) the transaction is the issue of a product; and
(b) the responsible person is the product issuer.
(6) If:
(a) the financial product is able to be traded on a market in
which the responsible person is a participant; and
(b) the transaction did not take place in the ordinary course of
business on a licensed market in which the responsible
person is a participant;
the confirmation of the transaction must also include a statement to
that effect.
(7) If the transaction took place on-market, the confirmation of the
transaction must also include the name by which that market is
generally known.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Confirmation of transactions Division 6
Regulation 7.9.63C
Corporations Regulations 2001 283
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(8) If the transaction involves more than one financial product, the
confirmation of the transaction must also include the price per unit
of the financial products.
(9) For paragraph 1017F(9)(c) of the Act, paragraph 1017F(8)(a) of
the Act is modified in its application to a transaction involving a
basic deposit product (other than an acquisition or disposal of the
product) by omitting ‘and the holder’.
7.9.63C Confirmation of transaction—multiple transactions
(1) For paragraph 1017F(9)(b) of the Act, subregulation (2) applies in
relation to a transaction if:
(a) the responsible person is a participant of a licensed market;
and
(b) the participant has complied with all of the participant’s
obligations in relation to the transaction under the market
integrity rules and the operating rules of the licensed market;
and
(c) the transaction forms part of a series of transactions made to
complete an order placed with a financial services licensee;
and
(d) the holder of the product has given to the financial services
licensee, in relation to that order or all orders (or all orders
included in a class in which that order is included) placed
with the financial services licensee by the holder, prior
authorisation to give to the client a single confirmation in
respect of a series of transactions carried out under the order
instead of an individual confirmation in respect of each
transaction in the series.
(2) Subsection 1017F(5) of the Act is taken to be satisfied if, in respect
of the transaction:
(a) the financial services licensee gives to the holder a single
confirmation in respect of the series of transactions in which
the transaction is included that:
(i) is in accordance with the authorisation; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 6 Confirmation of transactions
Regulation 7.9.63C
284 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) subject to subregulation (4), complies with the Act; and
(b) the confirmation is given:
(i) as soon as practicable; or
(ii) otherwise as permitted by the market integrity rules or
the operating rules of that licensed market.
(3) For paragraph 1017F(9)(c) of the Act, subregulation (4) applies in
relation to a transaction if:
(a) the responsible person is a participant of a licensed market;
and
(b) the participant has complied with all of the participant’s
obligations in relation to the transaction under the market
integrity rules and the operating rules of the licensed market;
and
(c) the transaction forms part of a series of transactions made to
complete an order placed with a financial services licensee;
and
(d) the holder of the product has given to the financial services
licensee, in relation to that order or all orders (or all orders
included in a class in which that order is included) placed
with the financial services licensee by the holder, prior
authorisation to give to the client a single confirmation in
respect of the series of transactions that specifies the average
price per unit of financial products acquired or disposed of in
the series of transactions, instead of an individual
confirmation in respect of each transaction in the series, that
specifies the price per unit of the financial products acquired
or disposed of in the transaction to which each confirmation
relates.
(4) Subregulation 7.9.63B(7) is taken to be satisfied if, in respect of
the transaction:
(a) the financial services licensee gives the confirmation to the
holder in accordance with the authorisation; and
(b) unless otherwise provided by the market integrity rules or the
operating rules of the licensed market, the financial services
licensee, if requested to do so by the client, also gives to the
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Confirmation of transactions Division 6
Regulation 7.9.63D
Corporations Regulations 2001 285
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
holder a document that specifies the price per unit of the
financial products sold or bought in each transaction in the
series.
(5) For this regulation, an authorisation given by a person to a
financial services licensee:
(a) must be given orally, or in writing, by the person; and
(b) is effective until it is revoked, either orally or in writing, by
the person.
(6) If a person gives an oral authorisation to a financial services
licensee, or revokes an authorisation orally, the financial services
licensee must:
(a) make a written record of the authorisation or revocation; and
(b) send a copy of the written record to the person.
(7) In this regulation:
order means an instruction, or a series of instructions, to acquire or
dispose of financial products.
7.9.63D Confirmation of transaction—information about cooling-off
period
(1) For paragraph 1017F(8)(d) of the Act, this regulation applies in
relation to a transaction:
(a) that is the acquisition of a financial product to which:
(i) regulation 7.9.14, 7.9.66 or 7.9.68 applies; and
(ii) to which regulation 7.9.64 does not apply; or
(b) relating to an RSA product to which subsection 1012I(2) of
the Act applies, other than:
(i) an acquisition to which subsection 52(5) of the RSA Act
applies; or
(ii) a transaction in which the product holder disposes of the
holder’s interest in the product before the time that
confirmation of the acquisition is required under
section 1017F of the Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 6 Confirmation of transactions
Regulation 7.9.63E
286 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) The confirmation of the transaction must identify information
about any cooling-off regime that applies in respect of acquisitions
of the product (whether the regime is provided for by a law or
otherwise).
7.9.63E Confirmation of transaction—facility that provides written
confirmation
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
to all financial products and transactions as if subsection 1017F(5)
of the Act were modified by omitting:
‘An arrangement under which the holder may request or
require another person to provide a confirmation does not
count as a facility that satisfies paragraph (b).’
and inserting:
‘An arrangement under which the holder may request or
require another person (other than the responsible person or a
person acting on behalf of the responsible person) to provide
a confirmation does not count as a facility that satisfies
paragraph (b).’.
7.9.63F Confirmation of transaction—acquisition of financial
product
(1) For subparagraph 1017F(8)(c)(iii) of the Act, this regulation
applies in relation to the confirmation of a transaction that is the
acquisition of a financial product.
(2) The details of the transaction relating to the amount paid or
payable by the holder in relation to the transaction need include
only the amount the holder is required to pay to acquire the
product.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Confirmation of transactions Division 6
Regulation 7.9.63G
Corporations Regulations 2001 287
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.63G Confirmation of transaction—disposal of financial product
(1) For paragraph 1017F(8)(d) of the Act, this regulation applies in
relation to the confirmation of a transaction that is the disposal of a
financial product.
(2) The confirmation must include the amount paid or payable to the
holder as a result of the disposal.
7.9.63H Certain product issuers and regulated persons must meet
appropriate dispute resolution requirements—self
managed superannuation funds
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
in relation to a self managed superannuation fund as if
section 1017G of the Act were omitted.
7.9.63I Confirmation of transaction in electronic form
(1) For subparagraph 1017F(6)(a)(ii) of the Act, a confirmation of a
transaction that is to be given in electronic form must, as far as
practicable, be presented in a way that will allow the person to
whom it is given to keep a copy of it so that the person can have
ready access to it in the future.
(2) A confirmation of a transaction that is to be given in electronic
form must be presented in a way that clearly identifies the
information that is part of the confirmation.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 7 Cooling-off periods
Regulation 7.9.64
288 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 7—Cooling-off periods
7.9.64 Cooling-off periods not to apply
(1) For paragraph 1019A(2)(a) of the Act, the following subclasses of
financial products are excluded from paragraph 1019A(1)(a) of the
Act:
(a) a financial product offered or issued under a distribution
reinvestment plan or switching facility;
(b) a financial product the acquisition of which is an additional
contribution made under an existing agreement or contract;
(c) a financial product issued as consideration for an offer made
under a takeover bid under Chapter 6 of the Act;
(d) an interim contract of insurance within the meaning of
subsection 11(2) of the Insurance Contracts Act 1984;
(e) a managed investment product that is not liquid in
accordance with section 601KA of the Act at the time the
managed investment product is issued;
(f) a superannuation product that is issued in relation to a
superannuation entity that is not a public offer
superannuation entity, other than;
(i) a superannuation product taken to be issued because of
regulation 7.1.04E; or
(ii) an annuity or pension taken to be issued because of
subregulation 7.9.02(4);
(fa) a superannuation product that is issued in relation to:
(i) a public offer superannuation entity mentioned in
paragraph 7.6.01(1)(b), (c) or (d); or
(ii) a public offer superannuation entity that is a successor
fund in relation to the transfer of benefits to that fund;
or
(iii) a public offer superannuation entity that is an eligible
rollover fund and in relation to which the
superannuation product is issued pursuant to Part 24 of
the SIS Act or Part 9 of the RSA Act;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Cooling-off periods Division 7
Regulation 7.9.64A
Corporations Regulations 2001 289
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(fb) a superannuation product that is a pension issued by a
superannuation fund the rules of which do not allow a
member to receive accumulated benefits in a form other than
a pension from that fund;
(g) a risk insurance product that is:
(i) of less than 12 months duration; and
(ii) a renewal of an existing product on the terms and
conditions to which the product is currently subject;
(h) a managed investment product in relation to which
subsection 1016D(1) of the Act applies;
(i) a managed investment product:
(i) to which Chapter 6D of the old Corporations Act
applied; and
(ii) that was listed before the FSR commencement.
(2) For paragraph 1020G(1)(a) of the Act, a reference in
paragraph 1019A(3)(a) of the Act to a client does not include a
person who holds a superannuation product as a standard
employer-sponsor member.
7.9.64A Notification of exercise of right of return—risk insurance
products
For paragraph 1019B(2)(c) of the Act, a right of return may be
exercised in relation to a risk insurance product by notifying the
responsible person in a way permitted by the responsible person.
7.9.65 Return of financial product: general
(1) For subsection 1019B(5A) of the Act, the right to return the risk
insurance product for an event that will start and end within the 14
day period mentioned in subsection 1019B(3) of the Act (and to
have money paid to acquire the risk insurance product repaid)
cannot be exercised at any time after the end of the period starting
when the risk insurance product was provided and ending on the
earlier of:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 7 Cooling-off periods
Regulation 7.9.65A
290 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the 14-day period mentioned in subsection 1019B(3) of the
Act; and
(b) the start of the event.
Example: Short-term travel insurance.
(1A) For subsection 1019B(5A) of the Act, if:
(a) a person acquires an interest in a managed investment
scheme; and
(b) the interest is a managed investment product; and
(c) the person acquires one or more other interests in that
managed investment scheme in the course of the same
transaction;
the person cannot exercise a right to return the product otherwise
than by returning all of those interests.
(2) In this regulation:
event means the commencement of the process in relation to which
the risk insurance product was entered into.
Examples:
1 For insurance on household goods during removal, the
commencement of loading a transportation vehicle is the event.
2 For travel insurance, the commencement of the journey is the event.
7.9.65A Return of financial product: first home saver accounts
(1) For subsection 1019B(2) of the Act, this regulation applies in
relation to an FHSA.
(2) If the FHSA holder has never held another FHSA, it is a
requirement of the exercise of the right to return the FHSA in
circumstances in which the moneys paid to acquire the FHSA are
subject to payment restrictions that:
(a) the FHSA holder must:
(i) notify the FHSA provider, in writing, that the FHSA
holder wishes to exercise the right to return the FHSA;
and
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Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Cooling-off periods Division 7
Regulation 7.9.66
Corporations Regulations 2001 291
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) ask the FHSA provider to pay the entire balance of the
FHSA to the FHSA holder; and
(iii) give the FHSA provider a written declaration that the
FHSA holder has never previously held an FHSA; or
(b) the FHSA holder must:
(i) notify the FHSA provider, in writing, that the FHSA
holder wishes to exercise the right to return the FHSA;
and
(ii) no later than 1 month after notifying the FHSA
provider, ask the FHSA provider to pay the entire
balance of the FHSA to another FHSA nominated in the
request.
(3) If the FHSA holder has held another FHSA, it is a requirement of
the exercise of the right to return the FHSA in circumstances in
which the moneys paid to acquire the FHSA are subject to payment
restrictions that the FHSA holder must:
(a) notify the FHSA provider, in writing, that the FHSA holder
wishes to exercise the right to return the FHSA; and
(b) no later than 1 month after notifying the FHSA provider, ask
the FHSA provider to pay the entire balance of the FHSA to
another FHSA nominated in the request.
7.9.66 Return of financial product: superannuation and RSAs
(2) For subsection 1019B(2) of the Act, it is a requirement of the
exercise of the right to return a superannuation product or RSA
product that, if the money to be repaid includes:
(a) restricted non-preserved benefits within the meaning of the
SIS Regulations; or
(b) preserved benefits within the meaning of the SIS
Regulations;
the holder of the product must nominate a superannuation entity or
RSA into which the money representing restricted non-preserved
benefits or preserved benefits is to be repaid.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 7 Cooling-off periods
Regulation 7.9.67
292 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) The right of return is taken to have been exercised only on receipt
by the responsible person of the nomination.
(4) The holder must make the nomination not later than 1 month after
notifying the responsible person of the right to exercise the right of
return.
(5) The holder must notify the responsible person in writing or by
electronic means.
(6) For subsection 1019B(7) of the Act, if:
(a) a holder nominates a superannuation entity or RSA; and
(b) the superannuation entity or RSA does not accept the
nomination;
the responsible person may rollover or transfer the holder’s
benefits to an eligible rollover fund.
(7) For subsection 1019B(7) of the Act, if the right of return is
exercised, the responsible person must return the money as
directed.
7.9.67 Variation of amount to be repaid
(1) For subsection 1019B(8) of the Act, the amount to be repaid on an
exercise of the right to return a financial product is to be varied in
accordance with this regulation.
Investment-linked product
(2) If:
(a) the financial product is:
(i) an investment-linked product within the meaning of the
Insurance Contracts Act 1984; or
(ii) a managed investment product; or
(iii) a superannuation product (subject to the governing rules
of the issuer of the superannuation product relevant to
the redemption of superannuation interests); and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Cooling-off periods Division 7
Regulation 7.9.67
Corporations Regulations 2001 293
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) on the day on which the responsible person receives
notification from the product holder exercising the holder’s
right to return, the amount that would have been the price at
which the product was acquired (the allocation price) if the
product had been acquired on that day is less than the
allocation price on the day on which the product was
acquired;
the amount that would otherwise be repaid may be reduced by the
adjustment amount.
(3) If:
(a) the financial product is:
(i) an investment-linked product within the meaning given
by the Insurance Contracts Act 1984; or
(ii) a managed investment product; or
(iii) a superannuation product; and
(b) on the day on which the responsible person receives
notification from the product holder exercising the holder’s
right to return, the amount that would have been the price at
which the product was acquired (the allocation price) if the
product had been acquired on that day is greater than the
allocation price on the day on which the product was
acquired;
the amount that would otherwise be repaid is increased by the
adjustment amount.
(4) For subregulations (2) and (3), the adjustment amount is the
difference between:
(a) the price at which the product was acquired; and
(b) the price at which the product could be acquired on the day
on which the responsible person receives notification from
the product holder exercising the holder’s right to return.
(5) If the price referred to in paragraph (4)(b) is not determined under
the relevant contract or legal relationship on the day on which the
responsible person receives notification from the product holder
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 7 Cooling-off periods
Regulation 7.9.67
294 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
exercising the holder’s right to return, the amount to be repaid and
the adjustment amount is to be determined:
(a) on the basis of the most recent day on which a price was
calculated under the contract or legal relationship; or
(b) if there is no day of that kind, as soon as practicable after the
product issuer receives the notification.
Tax
(6) If:
(a) tax or duty of any kind has been paid, or is payable, by the
responsible person because of the issue of the financial
product; and
(b) either:
(i) if the tax or duty has been paid, the responsible person
is unable to obtain a refund of the tax or duty; or
(ii) if the tax or duty has not been paid, the tax or duty does
not cease to be payable as a result of the exercise of the
right to return the financial product;
the amount that would otherwise be repaid is reduced by the
amount of the tax or duty.
Certain financial products
(7) The amount that would otherwise be repaid in relation to the return
of a financial product (other than an RSA product) may be reduced
to account for reasonable administrative and transaction costs
(other than the payment of commissions or similar benefits)
incurred by the responsible person that:
(a) are reasonably related to the acquisition of the financial
product and the subsequent termination of the contract or
legal relationship; and
(b) do not exceed the true cost of an arms’ length transaction.
Financial product issued for specific period
(8) If:
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Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Cooling-off periods Division 7
Regulation 7.9.68
Corporations Regulations 2001 295
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the financial product is:
(i) a risk insurance product; or
(ii) that part of a financial product that is a risk insurance
product; and
(b) either:
(i) the financial product has been issued for a specific
period; or
(ii) the premium for the financial product has been paid in
relation to cover for a specific period; and
(c) a proportion of that period has already passed when the right
to return the risk insurance product is exercised;
the amount that would otherwise be repaid may be reduced by a
proportion equal to the proportion of the period that has passed.
General
(9) If the financial product is subject to a distribution to which
subregulation 7.9.70(2) applies, the amount that would otherwise
be repaid may be reduced by the amount of that distribution.
7.9.68 Modification of section 1019B of the Act: client includes
standard employer-sponsor
(1) For paragraph 1020G(1)(c) of the Act, subsection 1019A(1) and
paragraph 1019A(3)(a) of the Act are modified so that a reference
in those provisions to a client includes a standard
employer-sponsor in respect of the issue of a superannuation
product to an employee of the standard employer-sponsor as a
standard employer-sponsored member in accordance with
subparagraph 1016A(2)(b)(iii) of the Act.
(2) For paragraph 1020G(1)(c) of the Act, subsection 1019B(1) of the
Act is modified in its application to the issue of a superannuation
product mentioned in subregulation (1) as if a reference in
subsection 1019B(1) to money paid to acquire a financial product
were a reference to all monies paid in relation to the
superannuation product.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 7 Cooling-off periods
Regulation 7.9.68
296 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) For subsection 1019B(2) of the Act, it is a requirement of the
exercise of the right to return a superannuation product mentioned
in subregulation (1) that, if the monies to be repaid include
employer contributions (whether or not they are mandated
employer contributions), the standard employer-sponsor must
nominate a superannuation fund, approved deposit fund or RSA
into which the employer contributions are to be repaid.
(4) The right of return is taken to have been exercised only on receipt
by the responsible person of the nomination.
(5) The standard employer-sponsor must make the nomination not
later than 1 month after notifying the responsible person of the
right to exercise the right of return.
(6) The standard employer-sponsor must notify the responsible person
in writing or by electronic means.
(7) For subsection 1019B(7) of the Act, if the right of return is
exercised by a standard employer-sponsor under this regulation,
the responsible person must return the money as directed.
(8) For subsection 1019B(7) of the Act, if the right of return is
exercised by a standard employer-sponsor under this regulation,
and if the monies to be repaid include monies paid in relation to the
superannuation product by the standard employer-sponsored
member (including monies rolled over or transferred from another
superannuation entity or RSA) (the relevant monies) the relevant
monies are to be paid by the responsible person:
(a) in respect of benefits defined under the SIS Regulations as a
restricted non-preserved benefits or preserved benefits
(restricted monies)—to a superannuation entity or RSA as
directed by the standard employer-sponsored member; or
(b) in respect of any other relevant monies paid by the standard
employer-sponsored member—as directed by the standard
employer-sponsored member.
(9) For subsection 1019B(7) of the Act, if:
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Cooling-off periods Division 7
Regulation 7.9.69
Corporations Regulations 2001 297
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) a financial product mentioned in this regulation is subject to
the nomination of a further superannuation entity or RSA;
and
(b) the application in relation to the issue of a financial product
is not accepted by the nominated superannuation entity or
RSA;
the responsible person may rollover or transfer the holder’s
benefits to an eligible rollover fund.
7.9.69 Modification of provisions of Division 5 of Part 7.9 of the Act:
terms of contract
(1) For paragraph 1020G(2)(a) of the Act, this regulation applies in
relation to the following financial products:
(a) an investment-linked product within the meaning of the
Insurance Contracts Act 1984;
(b) a managed investment product;
(c) a superannuation product.
(2) Division 5 of Part 7.9 of the Act is modified to the extent necessary
to provide that a contract or legal relationship governing the issue
and redemption of the financial product is taken to include a
provision that:
(a) a product holder may have the right to return a financial
product under the Act; and
(b) the product issuer does not contravene any terms of the
contract or legal relationship by complying with a request to
return a financial product made in accordance with the Act;
and
(c) the amount to be repaid following the exercise of the right to
return a financial product is the amount calculated in
accordance with the Act.
(3) Division 5 of Part 7.9 of the Act, and the regulations made for, or
relating to, provisions of that Division, are also modified to the
extent necessary to give effect to the modification set out in
subregulation (2).
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 7 Cooling-off periods
Regulation 7.9.70
298 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.70 Modification of provisions of Division 5 of Part 7.9 of the Act:
distributions
(1) For paragraph 1020G(2)(a) of the Act, this regulation applies in
relation to the holder of:
(a) an investment-linked product within the meaning of the
Insurance Contracts Act 1984; or
(b) a managed investment product; or
(c) a superannuation product.
(2) A reference in paragraph 1019B(5)(a) of the Act to a right or
power does not include the making of a distribution to the holder.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Other requirements Division 8
Regulation 7.9.71
Corporations Regulations 2001 299
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 8—Other requirements
7.9.71 Modification of section 1017D of the Act: use of more than 1
document
For paragraph 1020G(1)(c) of the Act, section 1017D of the Act is
modified:
(a) so that a reference in those sections to a periodic statement
includes 2 or more documents that include all of the
information required by those sections; and
(b) as if subsections 1013L(1), (2), (3), (5) and (7) of the Act
were included in that section, and referred to a periodic
statement instead of a Product Disclosure Statement.
7.9.71A Periodic statements—exemption for passbook accounts
For paragraph 1020G(1)(b) of the Act, a basic deposit product (an
account) for which the holder of the product is provided with, and
keeps, a document commonly referred to as a ‘passbook’ is exempt
from section 1017D of the Act if, under the terms of the operation
of the account:
(a) the client has a right to a reasonable opportunity to present
the passbook to the issuer; and
(b) the issuer enters particulars of each transaction involving the
account including the amount of the transaction and the
current balance of the account; and
(c) there is no fee associated with the passbook or the entry of
particulars into the passbook.
7.9.72 Modification of section 1017D of the Act: information already
given
For paragraph 1020G(1)(c) of the Act section 1017D of the Act is
modified so that if:
(a) a financial product is a superannuation product or an RSA
product; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 8 Other requirements
Regulation 7.9.73
300 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the issuer has provided information in accordance with
Subdivisions 5.2 and 5.3; and
(c) that information has also been provided in accordance with
subsection 1017D(5A) of the Act;
paragraphs 1017D(5)(a), (b), (d) and (e) are omitted.
7.9.73 Reporting periods: general
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to financial products as set
out in Part 16 of Schedule 10A.
7.9.74 Form of application
(1) For paragraph (c) of the definition of eligible application in
subsection 1016A(1) of the Act, an application form for a financial
product, for use by a client, that is attached to, accompanying or
derived from a Product Disclosure Statement must require the
following information:
(a) the applicant’s name;
(b) the applicant’s date of birth;
(c) the applicant’s address.
(2) An application form for a financial product, for use by an employer
that is applying as a prospective standard employer-sponsor, that is
attached to, accompanying or derived from a Product Disclosure
Statement must require the employer’s name and address.
7.9.74A Periodic statements—requirement to state information as
amounts in dollars
(1) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if subsection 1017D(5A) were modified to read as follows:
‘(5A) Unless in accordance with the regulations and a
determination by ASIC:
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Other requirements Division 8
Regulation 7.9.74A
Corporations Regulations 2001 301
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) information to be disclosed in accordance with
paragraphs (5)(a), (b), (c), (d) and (e) must be stated as
amounts in dollars; and
(b) any other information in relation to amounts paid by the
holder of the financial product during the period must
be stated as amounts in dollars.’.
(2) For paragraph 1020G(1)(a) of the Act, the issuer of a financial
product does not have to provide the information mentioned in
subsection 1017D(5A) of the Act in the form required by that
subsection, in a periodic statement prepared before 1 January 2005.
(3) For subsection 1017D(5A) of the Act, as modified in accordance
with subregulation (1), if ASIC determines that, for a compelling
reason based on the nature of a financial product or service, or the
nature of the information, to state information to be disclosed in
accordance with paragraphs 1017D(5)(a), (b), (c), (d) and (e) of the
Act as an amount in dollars:
(a) would impose an unreasonable burden on a product issuer, or
a class of product issuers; or
(b) would impose an unreasonable burden on a product issuer, or
a class of product issuers, within a period specified in the
determination; or
(c) would not be in the interests of a client, or a class of clients;
the information may be set out as a description of the amount as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(4) For subsection 1017D(5A) of the Act, as modified in accordance
with subregulation (1), if ASIC determines that, for a compelling
reason, based on the nature of a financial product or service, or the
nature of the information, to state information to be disclosed in
accordance with paragraphs 1017D(5)(a), (b), (c), (d) and (e) of the
Act as an amount in dollars, or to describe the amount as a
percentage:
(a) would impose an unreasonable burden on a product issuer, or
a class of product issuers; or
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 8 Other requirements
Regulation 7.9.74B
302 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) would impose an unreasonable burden on a product issuer, or
a class of product issuers, within a period specified in the
determination; or
(c) would not be in the interests of a client, or a class of clients;
the information may be set out as a description of the method of
calculating the charge or benefit (including worked dollar
examples, unless that is inappropriate).
(5) A determination under subregulation (3) or (4) must be:
(a) in writing; and
(b) published in the Gazette.
7.9.74B Periodic statements—additional details for First Home
Saver Accounts
(1) For paragraph 1017D(5)(g) of the Act, a periodic statement for an
FHSA product must include the following words:
The First Home Saver Account is an Australian Government
initiative to help Australians save for their first home.
(2) For paragraph 1017D(5)(g) of the Act, if the holder of an FHSA
product has not acquired a qualifying interest in a dwelling at the
time when a periodic statement is to be provided in relation to the
FHSA product, the periodic statement must include:
(a) the number of financial years after the end of the reporting
period for the statement during which the holder of the
product must make personal FHSA contributions as required
by the First Home Saver Accounts Act 2008 before payment
may be made out of the FHSA product under section 32 of
that Act; or
(b) if the number of financial years is 0—a statement that the
holder may, subject to the First Home Saver Accounts Act
2008, apply for payment out of the FHSA product to acquire
a qualifying interest in a dwelling under that Act.
(3) For paragraph 1017D(5)(g) of the Act, if the holder of an FHSA
product has acquired a qualifying interest in a dwelling at the time
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Other requirements Division 8
Regulation 7.9.75
Corporations Regulations 2001 303
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
when a periodic statement is to be provided in relation to the FHSA
product, the periodic statement must include the number of
financial years after the end of the reporting period during which
the holder of the FHSA product will be taken to be making
personal FHSA contributions under the First Home Saver Accounts
Act 2008.
(4) In this regulation:
personal FHSA contribution has the meaning given in section 11
of the First Home Saver Accounts Act 2008.
qualifying interest, in a dwelling, has the meaning given by
section 12 of the First Home Saver Accounts Act 2008.
7.9.75 Content of periodic statements: costs of transactions
(1) For paragraph 1017D(5)(g) of the Act, the prescribed details in
relation to a financial product include:
(a) the amounts paid by the holder of the financial product in
respect of the financial product during the period; and
(b) if the amounts paid in respect of the financial product, and
the amounts paid in respect of other financial products, are
paid into a common fund, and amounts are deducted from the
common fund by way of expenses, fees and charges:
(i) a proportion of the amount deducted that is actually or
notionally attributable to the product holder’s interest;
and
(ii) if applicable—a statement informing the product holder
that the notional proportion of the amount may not give
an accurate estimate of the effect of the deduction on the
product holder’s interest; and
(c) a statement informing the product holder:
(i) that there is a dispute resolution mechanism that covers
complaints by holders of the product; and
(ii) of the means by which a product holder is able to gain
access to that mechanism; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 8 Other requirements
Regulation 7.9.75
304 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(d) a statement that further information in relation to the
financial product is available on request, and the means by
which the product holder can gain access to that information;
and
(e) in relation to a superannuation product (other than a
self-managed superannuation fund) or a managed investment
product—the details set out in Part 3 of Schedule 10.
(1A) However, for a periodic statement mentioned in an item of the
table that is issued for the financial product mentioned in the item,
and issued at a time described in the item, the prescribed details set
out in paragraph (1)(b) are not required to be included if the
statement includes, or is accompanied by, statements to the effect
that:
(a) amounts for fees, expenses or charges have been deducted
from a common fund to which the product relates in relation
to the reporting period; and
(b) those deductions are borne indirectly by the holders of the
product, and may affect the return to the holders; and
(c) further information about the deductions can be obtained by
contacting the issuer of the product.
Item Kind of statement Product Statement issued
1 Periodic statement
other than exit
statement
Superannuation product to which
Division 4C of this Part applies
in relation to a
reporting period
commencing before
1 July 2005
2 Exit statement Superannuation product to which
Division 4C of this Part applies
before 1 July 2006
3 Periodic statement
other than exit
statement
Financial product other than
superannuation product to which
Division 4C of this Part applies
in relation to a
reporting period
commencing before
1 July 2006
4 Exit statement Financial product other than
superannuation product to which
Division 4C of this Part applies
before 1 July 2007
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Other requirements Division 8
Regulation 7.9.75
Corporations Regulations 2001 305
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) For paragraph (1)(a), an amount has been paid in respect of a
financial product if:
(a) the product holder has paid an amount in respect of the
product; or
(b) an amount has been deducted from:
(i) a payment made by the product holder; or
(ii) a payment made to the product holder; or
(c) the product holder has paid an amount or an amount has been
deducted or debited as a fee, expense or charge in relation to
the financial product; or
(d) an amount is held on the product holder’s behalf under the
financial product (excluding any amounts referred to in
paragraph (1)(b) deducted from a common fund).
(3) For paragraph 1017D(5A)(a) of the Act, subregulations (4) and (5)
apply in relation to a financial product that has:
(a) an opening or closing balance mentioned in
paragraph 1017D(5)(a) of the Act; or
(b) the termination value mentioned in paragraph 1017D(5)(b) of
the Act; or
(c) an increase in contributions mentioned in
paragraph 1017D(5)(d) of the Act; or
(d) a return on investment mentioned in paragraph 1017D(5)(e)
of the Act.
(4) If ASIC determines that, for a compelling reason, it is not possible
to state the amount in dollars, the amount may be described as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(5) If ASIC determines that, for a compelling reason, it is not possible
to state the amount in dollars, or to describe the amount as a
percentage, the periodic statement must include:
(a) a statement informing the holder of the product that the
amount is applicable; and
(b) details of the means by which a product holder is able to gain
access to information relating to the amount.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 8 Other requirements
Regulation 7.9.75A
306 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(6) A determination under subregulation (4) or (5) must be:
(a) in writing; and
(b) published in the Gazette.
7.9.75A Ways of giving information
(1) For paragraph 1017B(3)(c) of the Act, the following are ways in
which a responsible person may notify a holder:
(a) notifying the holder in any way agreed to by the holder;
(b) notifying the holder’s agent in any way agreed to by the
agent.
(2) For paragraph 1017D(6)(c) of the Act, the following are ways of
giving a periodic statement to a holder:
(a) making the periodic statement available to the holder in any
way agreed to by the holder;
(b) making the periodic statement available to the holder’s agent
in any way agreed to by the agent.
(3) For paragraph 1017DA(2)(c) of the Act, the following are ways in
which information mentioned in subsection 1017DA(1) of the Act
may be provided to a person:
(a) in writing;
(b) electronically;
(c) providing the information to the person in any way agreed to
by the person;
(d) making the information available to the person’s agent in any
way agreed to by the agent.
(4) If a provision of the Act or these Regulations imposes additional
requirements in relation to a matter in subregulation (1), (2) or (3),
the ways of notifying a holder, giving a periodic statement and
providing information are subject to the requirements.
Note: Regulation 7.9.75B is an example of an additional requirement.
(5) For this regulation, a notification, a periodic statement or
information may be given or sent to a person’s agent only if the
Federal Register of Legislative Instruments F2015C00303
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Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Other requirements Division 8
Regulation 7.9.75B
Corporations Regulations 2001 307
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
agent is not acting as the person’s agent in one of the capacities
mentioned in subsection 1015C(3) of the Act.
7.9.75B Information in electronic form
(1) For:
(a) paragraph 1017B(3)(b) of the Act; and
(b) paragraph 1017D(6)(b) of the Act; and
(c) paragraph 1017DA(2)(c) of the Act;
a notification, statement or information that is to be given in
electronic form must, as far as practicable, be presented in a way
that will allow the person to whom it is given to keep a copy of it
so that the person can have ready access to it in the future.
(2) A notification or statement that is to be given in electronic form
must be presented in a way that clearly identifies the information
that is part of the notification or statement.
7.9.75BA Fund information made available on a website
(1) For paragraph 1017DA(1)(a) of the Act, the trustee of a regulated
superannuation fund (other than a self managed superannuation
fund) may provide fund information for the fund, mentioned in
Subdivision 5.6 of this Part, to a holder by making it available on a
website that is maintained by or on behalf of the trustee.
(2) The trustee must ensure that the fund information is readily
accessible from the website.
(3) For the first financial year or reporting period in which the trustee
makes the fund information available on the website under this
regulation, the trustee must:
(a) notify each holder that the fund information is available on
the website; and
(b) explain how to access the website; and
(c) notify the holder that the holder may elect to have a hard
copy, or electronic copy if it is available, of the fund
information sent to him or her free of charge.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 8 Other requirements
Regulation 7.9.75C
308 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) The information in subregulation (3) must be provided to the
holder in one document.
(5) If a holder elects to have a hard copy or electronic copy of the fund
information sent to him or her, the trustee must, for each
subsequent financial year or reporting period, send the fund
information for the financial year or reporting period to the holder,
in that form, until the holder notifies the trustee that a hard copy is
no longer required.
(6) If a holder does not elect to have a hard copy or electronic copy
sent to him or her, the trustee must comply with paragraphs (3)(a)
and (b) each year.
(7) The notification mentioned in subregulations (3) and (6) may be
included in other information or materials sent to the holder.
7.9.75C Periodic statements—disclosure of amounts
(1) For paragraph 1017D(5A)(b) of the Act, this regulation applies to a
periodic statement prepared on or after 1 January 2005 in relation
to an amount mentioned in paragraph 7.9.75(1)(a) or (b) of these
Regulations.
(2) If ASIC determines that, for a compelling reason, it is not possible
to state the amount in dollars the amount may be described as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(3) If ASIC determines that, for a compelling reason, it is not possible
to state the amount in dollars, or to describe the amount as a
percentage, the periodic statement must include:
(a) a statement informing the holder of the product that the
amount is applicable; and
(b) details of the means by which a product holder is able to gain
access to information relating to the amount.
(4) A determination under subregulation (2) or (3) must be:
(a) in writing; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Other requirements Division 8
Regulation 7.9.75D
Corporations Regulations 2001 309
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) published in the Gazette.
7.9.75D Periodic statements—disclosure of amounts
(1) For paragraph 1017D(5A)(b) of the Act, this regulation applies to a
periodic statement prepared on or after 1 January 2005 in relation
to an amount mentioned in paragraph 7.9.75(1)(a) or (b) of these
Regulations.
(2) If ASIC determines that, for a compelling reason based on the
nature of a financial product or service, or the nature of the
information, to state the amount of the deduction in dollars:
(a) would impose an unreasonable burden on a product issuer, or
a class of product issuers; or
(b) would impose an unreasonable burden on a product issuer, or
a class of product issuers, within a period specified in the
determination; or
(c) would not be in the interests of a product holder, or a class of
product holders;
the information may be set out as a description of the amount as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(3) If ASIC determines that, for a compelling reason, based on the
nature of a financial product or service, or the nature of the
information, to state the amount of a deduction in dollars, or to
describe the amount as a percentage:
(a) would impose an unreasonable burden on a product issuer, or
a class of product issuers; or
(b) would impose an unreasonable burden on a product issuer, or
a class of product issuers, within a period specified in the
determination; or
(c) would not be in the interests of a product holder, or a class of
product holders;
the periodic statement must include the information in
subregulation (4).
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 8 Other requirements
Regulation 7.9.76
310 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) If subregulation (3) applies, the periodic statement must include:
(a) a statement informing the product holder that the amount is
applicable; and
(b) details of the means by which a product holder is able to gain
access to information relating to the amount.
(5) A determination under subregulation (2) or (3) must be:
(a) in writing; and
(b) published in the Gazette.
7.9.76 Consents to certain statements
(1) For subsection 1013K(2) of the Act, the period for which a person
must keep a consent or a copy of a consent is 7 years from the date
of the consent.
(2) The copy of the consent may be kept:
(a) in its physical form; or
(b) in an electronic form that is capable of being reproduced in
physical form.
7.9.77 Alternative dispute resolution requirements—product issuer
that is not a financial services licensee
(1) For subparagraph 1017G(2)(a)(i) of the Act, ASIC must take the
following matters into account when considering whether to make
or approve standards or requirements relating to internal dispute
resolution:
(a) Australian Standard AS ISO 10002-2006 Customer
satisfaction—Guidelines for complaints handling in
organizations (ISO 10002:2004 MOD) published by SAI
Global Limited on 5 April 2006;
(b) any other matter ASIC considers relevant.
(2) ASIC may:
(a) vary or revoke a standard or requirement that it has made in
relation to an internal dispute resolution procedure; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Other requirements Division 8
Regulation 7.9.78
Corporations Regulations 2001 311
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) vary or revoke the operation of a standard or requirement that
it has approved in its application to an internal dispute
resolution procedure.
(3) For subparagraph 1017G(2)(b)(i) of the Act, ASIC must take the
following matters into account when considering whether to
approve an external dispute resolution scheme:
(a) the accessibility of the dispute resolution scheme;
(b) the independence of the dispute resolution scheme;
(c) the fairness of the dispute resolution scheme;
(d) the accountability of the dispute resolution scheme;
(e) the efficiency of the dispute resolution scheme;
(f) the effectiveness of the dispute resolution scheme;
(g) any other matter ASIC considers relevant.
(4) ASIC may:
(a) specify a period for which an approval of an external dispute
resolution scheme is in force; and
(b) make an approval of an external dispute resolution scheme
subject to conditions specified in the approval, including
conditions relating to the conduct of an independent review
of the operation of the scheme; and
(c) vary or revoke:
(i) an approval of an external dispute resolution scheme; or
(ii) the specification of a period for which an approval is in
force; or
(iii) a condition to which an approval of an external dispute
resolution scheme is subject.
7.9.78 Additional statement: trustee required to provide benefits
(1) For paragraph 1017D(5)(g) of the Act, the prescribed details in
relation to a superannuation product for which there is in force a
notice under subregulation 6.17A(4) of the SIS Regulations, are:
(a) the person, persons or class, or classes, of persons mentioned
in the notice; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 8 Other requirements
Regulation 7.9.80B
312 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the fact that, in accordance with the notice, the trustee will
pay a benefit in respect of the member, on or after the death
of the member, to the person, persons or class, or classes, of
persons mentioned in the notice if:
(i) the person, or each person, mentioned in the notice is
the legal personal representative or a dependant of the
member; and
(ii) the proportion of the benefit that will be paid to that
person, or to each of those persons, is certain or readily
ascertainable from the notice or a statement under
regulation 6.17B of the SIS Regulations; and
(iii) the notice is in effect; and
(c) the statement of the member about:
(i) the proportion of the benefit that will be paid to the
person, or to each person, mentioned in the notice; or
(ii) how that proportion is to be determined; and
(d) the fact that the member may confirm, amend or revoke the
notice in accordance with subregulation 6.17A(5) of the SIS
Regulations; and
(e) the date when the notice ceases to have effect under
paragraph 6.17A(7)(a) or (b) of the SIS Regulations.
(2) The periodic statement must also include information that the
member may use to confirm, amend or revoke the notice.
(3) In this regulation, a reference to a notice includes a reference to the
notice as confirmed, or amended, under subregulation 6.17A(5) of
the SIS Regulations.
7.9.80B Short selling of certain warrants
For paragraph 1020B(1)(d) of the Act, a financial product that is
transferable and is:
(a) a derivative under section 761D of the Act; or
(b) a financial product that would, apart from the effect of
paragraph 761D(3)(c) of the Act, be a derivative for
section 761D of the Act and is excluded from that paragraph
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Other requirements Division 8
Regulation 7.9.80B
Corporations Regulations 2001 313
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
only because it is a security under paragraph (c) of the
definition of security in section 761A of the Act; or
(c) a legal or equitable right or interest in an interest in a
managed investment scheme of the kind mentioned in
paragraph 764A(1)(ba) of the Act;
is prescribed.
Note: Paragraph 764A(1)(ba) of the Act refers to a managed investment
scheme that is not a registered scheme, other than a scheme (whether
or not operated in this jurisdiction) in relation to which none of
paragraphs 601ED(1)(a), (b) and (c) of the Act are satisfied.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 9 Additional requirements for transfer of lost members and lost RSA holders
Regulation 7.9.81
314 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 9—Additional requirements for transfer of lost
members and lost RSA holders
7.9.81 Lost members
(1) For paragraph 1020G(1)(c) of the Act, this regulation applies in
relation to a restricted issue of a relevant financial product if:
(a) the issue is mentioned in paragraph 1016A(2)(c) of the Act;
and
(b) the recipient is a lost member.
(2) Part 7.9 of the Act applies in relation to the restricted issue as if
paragraph 1016A(2)(c) of the Act included an obligation on the
trustee of the fund that is applying for the issue on behalf of the
recipient to give to the trustee that is to issue the financial product:
(a) a statement that the recipient is a lost member; and
(b) if the recipient has specifically asked the trustee making the
application not to disclose information of a specified kind—a
statement to that effect; and
(c) all information in the possession of the trustee making the
application that could reasonably help the other trustee to
locate or identify the recipient, other than information of a
kind that the recipient has specifically asked the trustee not to
disclose.
7.9.82 Lost RSA holders
(1) For paragraph 1020G(1)(c) of the Act, this regulation applies in
relation to a restricted issue of a relevant financial product if:
(a) the issue is mentioned in paragraph 1016A(2)(d) of the Act;
and
(b) the recipient is a lost RSA holder.
(2) Part 7.9 of the Act applies in relation to the restricted issue as if
paragraph 1016A(2)(d) of the Act included an obligation on the
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Additional requirements for transfer of lost members and lost RSA holders Division 9
Regulation 7.9.82
Corporations Regulations 2001 315
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
RSA provider that is applying for the issue on behalf of the
recipient to give to the trustee that is to issue the financial product:
(a) a statement that the recipient is a lost RSA holder; and
(b) if the recipient has specifically asked the RSA holder not to
disclose information of a specified kind—a statement to that
effect; and
(c) all information in the possession of the RSA holder that
could reasonably help the trustee to locate or identify the
recipient, other than information of a kind that the recipient
has specifically asked the RSA holder not to disclose.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 11 Superannuation to which arrangements apply under the Family Law Act
1975
Regulation 7.9.84
316 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 11—Superannuation to which arrangements apply
under the Family Law Act 1975
7.9.84 Definitions for Division 11
In this Division:
adjusted base amount, in relation to a non-member spouse on a
day, means the adjusted base amount applicable to the non-member
spouse on that day worked out under regulation 47 of the Family
Law (Superannuation) Regulations 2001.
base amount, in relation to a non-member spouse means the
amount mentioned in regulation 45 of the Family Law
(Superannuation) Regulations 2001.
base amount payment split, in relation to a superannuation
interest, means a payment split under which a base amount is
allocated to the non-member spouse in relation to the
superannuation interest under Part VIIIB of the Family Law Act
1975.
flag lifting agreement means a flag lifting agreement under
Part VIIIB of the Family Law Act 1975.
member spouse, in relation to a superannuation interest that is
subject to a payment split, means the person who is the member
spouse in relation to the interest under Part VIIIB of the Family
Law Act 1975.
non-member spouse, in relation to a superannuation interest that is
subject to a payment split, means the person who is the
non-member spouse in relation to the interest under Part VIIIB of
the Family Law Act 1975.
payment split means a payment split under Part VIIIB of the
Family Law Act 1975.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Superannuation to which arrangements apply under the Family Law Act 1975 Division
11
Regulation 7.9.85
Corporations Regulations 2001 317
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
payment split notice means a notice given by a product issuer
under:
(a) regulation 7A.03 of the SIS Regulations; or
(b) regulation 4A.03 of the RSA Regulations.
percentage-only interest has the meaning given by Part VIIIB of
the Family Law Act 1975.
percentage payment split, in relation to a superannuation interest,
means a payment split under a superannuation agreement, flag
lifting agreement or splitting order that specifies a percentage that
is to apply to all splittable payments in respect of the
superannuation interest.
splitting order means a splitting order under Part VIIIB of the
Family Law Act 1975.
superannuation agreement means a superannuation agreement
under Part VIIIB of the Family Law Act 1975.
superannuation interest means a superannuation interest to which
Part VIIIB of the Family Law Act 1975 applies.
7.9.85 Application of Division 11
This Division applies in relation to a superannuation interest.
7.9.86 Acquisition of financial product
For paragraph 761E(7)(a) of the Act, if:
(a) a person is a non-member spouse; and
(b) an entitlement to a benefit in relation to a superannuation
interest under a payment split is first issued, granted or
otherwise made available to that person;
the person is taken to have been issued with a superannuation
product or an RSA product as appropriate.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 11 Superannuation to which arrangements apply under the Family Law Act
1975
Regulation 7.9.87
318 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.87 Modification of Act: Product Disclosure Statement in relation
to superannuation interest under Family Law Act
(1) Subject to subregulation (4), for paragraph 1020G(1)(c) of the Act,
paragraph 1012F(b) of the Act is modified in its application in
relation to:
(a) a superannuation interest; and
(b) the non-member spouse who acquires the superannuation
interest;
in accordance with subregulation (2).
(2) Paragraph 1012F(b) is taken to require a regulated person to give
the non-member spouse a Product Disclosure Statement when the
regulated person gives a payment split notice to the non-member
spouse.
(3) If paragraph 1012F(b), as modified in accordance with
subregulation (2), applies in relation to a superannuation interest,
regulation 7.9.04 does not apply in relation to the interest and the
non-member spouse.
(4) For paragraph 1020G(1)(a) of the Act, if the governing rules of a
superannuation entity do not provide for a non-member spouse to
become a member of a superannuation fund in relation to the
superannuation entity, section 1012B is modified by adding, after
subsection 1012B(1):
‘(1A) This section does not apply in relation to:
(a) a superannuation interest; and
(b) the non-member spouse who acquires the
superannuation interest;
if the governing rules of a superannuation entity do not
provide for a non-member spouse to become a member of a
superannuation fund in relation to the superannuation
entity.’.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Superannuation to which arrangements apply under the Family Law Act 1975 Division
11
Regulation 7.9.88
Corporations Regulations 2001 319
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.88 Statement content in relation to superannuation interest
under Family Law Act: superannuation fund
(1) For subparagraphs 1017DA(1)(a)(ii) and (iii), and
paragraph 1017DA(1)(b), of the Act, a trustee of a superannuation
entity that is a product issuer must give to a non-member spouse in
relation to a superannuation product issued under a payment split a
statement providing the following information:
(a) the contact details for the product issuer;
(b) if the interest is not a percentage-only interest and the
payment split is a base amount payment split:
(i) the base amount allocated to the non-member spouse
under the relevant agreement, flag lifting agreement or
splitting order; and
(ii) the method by which the base amount will be adjusted
on an ongoing basis; and
(iii) whether the governing rules of the fund would allow the
non-member spouse to become a member of the
superannuation entity; and
(iv) information about the options available to the
non-member spouse in relation to the interest under
Part 7A of the SIS Regulations;
(c) if the interest is not a percentage-only interest and the
payment split is a percentage payment split:
(i) the percentage that is to apply to all splittable payments
in respect of the interest; and
(ii) whether the governing rules of the fund would allow the
non-member spouse to become a member of the
superannuation entity; and
(iii) information about the options available to the
non-member spouse in relation to the interest under
Part 7A of the SIS Regulations;
(d) if the interest is a percentage-only interest:
(i) the percentage specified in the relevant superannuation
agreement, flag lifting agreement or splitting order; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 11 Superannuation to which arrangements apply under the Family Law Act
1975
Regulation 7.9.89
320 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) if the payment is under a superannuation agreement or
flag lifting agreement, whether the percentage is to
apply for the purposes of subparagraph 90MJ(1)(b)(i) of
the Family Law Act 1975; and
(iii) if the payment split is under a splitting order, whether
the order is made under paragraph 90MT(1)(c) of the
Family law Act 1975;
(e) the circumstances in which the entitlement of the
non-member spouse will become payable;
(g) information about the dispute resolution system that covers
complaints by holders of the product and about how that
system may be accessed;
(h) details of any amounts payable by the non-member spouse in
respect of the payment split, and arrangements for the
payment of any such amounts.
(2) For paragraph 1017DA(2)(b) of the Act, the statement mentioned
in subregulation (1) is to be provided by a regulated person when
the regulated person gives a payment split notice to the
non-member spouse.
7.9.89 Statement content in relation to superannuation interest
under Family Law Act: RSA
(1) For subparagraphs 1017DA(1)(a)(ii) and (iii), and
paragraph 1017DA(1)(b), of the Act, an RSA provider that is a
product issuer must give to a non-member spouse in relation to an
RSA product issued under a payment split a statement providing
the following information:
(a) the contact details for the product issuer;
(b) if the payment split is a base amount payment split:
(i) the base amount allocated to the non-member spouse
under the relevant superannuation agreement, flag
lifting agreement or splitting order; and
(ii) the method by which the base amount will be adjusted
on an ongoing basis;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Superannuation to which arrangements apply under the Family Law Act 1975 Division
11
Regulation 7.9.90
Corporations Regulations 2001 321
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) if the payment split is a percentage payment split, the
percentage that is to apply to all splittable payments in
respect of the interest;
(d) the circumstances in which the entitlement of the
non-member spouse will become payable;
(e) the options available under Part 4A of the RSA Regulations
in relation to the non-member spouse’s entitlement in respect
of the interest;
(g) information about the dispute resolution system that covers
complaints by holders of the product and about how that
system may be accessed;
(h) details of any amounts payable by the non-member spouse in
respect of the payment split, and arrangements for the
payment of any such amounts.
(2) For paragraph 1017DA(2)(b) of the Act, the statement mentioned
in subregulation (1) is to be provided by a regulated person when
the regulated person gives a payment split notice to the
non-member spouse.
7.9.90 Information for existing holders of superannuation products
and RSA products in relation to superannuation interest
(1) For paragraph 1020G(1)(c) of the Act, this regulation applies in
relation to a non-member spouse.
(2) The definition of concerned person in subsection 1017C(9) of the
Act is modified by adding after paragraph (a) of the definition:
‘(aa) is a non-member spouse in relation to a superannuation
product or an RSA product that is issued in relation to a
payment split; or’.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 11 Superannuation to which arrangements apply under the Family Law Act
1975
Regulation 7.9.91
322 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.91 Periodic statements for retail clients for financial products
that have an investment component—general
(1) For paragraph 1020G(1)(a) of the Act, this regulation applies in
relation to a non-member spouse who holds a superannuation or
RSA product by way of a payment split.
(2) The product issuer in relation to the superannuation product or
RSA product is not required to comply with:
(a) paragraphs 1017D(5)(a) to (f) of the Act; and
(b) regulation 7.9.72 and subregulation 7.9.75(1).
7.9.92 Periodic statements for retail clients for financial products
that have an investment component—superannuation
interest other than percentage-only interest
(1) For paragraph 1017D(5)(g) of the Act, this regulation applies if:
(a) an interest in a superannuation product is subject to a base
amount payment split; and
(b) the interest is not a percentage-only interest; and
(c) the interest is in the growth phase; and
(d) none of the following has occurred under Part 7A of the SIS
Regulations:
(i) a new membership interest has been created for the
non-member spouse in relation to the payment split;
(ii) the transferable benefits of the non-member spouse have
been transferred or rolled out of the superannuation
fund;
(iii) the amount to which the non-member spouse is entitled
under the payment split has been paid, as a lump sum, to
the non-member spouse.
(2) This regulation also applies if:
(a) an interest in an RSA product is subject to a base amount
payment split; and
(b) the interest is in the growth phase; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Superannuation to which arrangements apply under the Family Law Act 1975 Division
11
Regulation 7.9.93
Corporations Regulations 2001 323
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) none of the following has occurred under Part 4A of the RSA
Regulations:
(i) a new RSA has been opened for the non-member
spouse;
(ii) the transferable benefits of the non-member spouse have
been transferred or rolled out of the RSA;
(iii) the amount to which the non-member spouse is entitled
under the payment split has been paid, as a lump sum, to
the non-member spouse.
(3) The periodic statement for the member spouse and the
non-member spouse must include the following information:
(a) the value of the adjusted base amount applicable to the
non-member spouse at the end of the reporting period;
(b) the amount of the adjustment in the reporting period;
(c) the method used to calculate the adjustment, including the
applicable interest rate required under regulation 48 of the
Family Law (Superannuation) Regulations 2001.
7.9.93 Trustees of superannuation entities—additional obligation to
provide information in relation to superannuation
interest
(1) For paragraph 1017DA(2)(a) of the Act, no information is to be
provided to a non-member spouse under section 1017DA of the
Act if the governing rules of a superannuation entity do not provide
for the non-member spouse to become a member of a
superannuation fund in relation to the superannuation entity.
(2) For paragraph 1017DA(2)(b) of the Act, if the governing rules of a
superannuation entity provide for a non-member spouse to become
a member of a superannuation fund in relation to the
superannuation entity:
(a) information is to be provided to the non-member spouse
under section 1017DA of the Act (and Subdivisions 5.5 to
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 11 Superannuation to which arrangements apply under the Family Law Act
1975
Regulation 7.9.94
324 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
5.7 of Part 7.9 of these Regulations) when the payment split
notice is given to the non-member spouse; and
(b) the information is to be provided with the payment split
notice.
7.9.94 Division 5 of Part 7.9 of the Act not to apply in relation to
non-member spouse
For paragraph 1019A(2)(c) of the Act, Division 5 of Part 7.9 of the
Act does not apply in relation to the issue of a superannuation
product or RSA product to a non-member spouse who acquires the
superannuation interest by means of a payment split.
Note: The non-member spouse may also wish to acquire an interest in the
superannuation fund, or become an RSA holder, by making an
application. In that case, regulation 7.9.94 would not apply and
Division 5 of Part 7.9 of the Act would apply to the extent that that
Division provides.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Medical indemnity insurance Division 12
Regulation 7.9.95
Corporations Regulations 2001 325
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 12—Medical indemnity insurance
7.9.95 Medical indemnity insurance—exemption from product
disclosure provisions
For paragraph 1020G(1)(b) of the Act, a medical indemnity
insurance product is exempt from the provisions of Part 7.9 of the
Act, until the earlier of:
(a) the date specified in a notice, lodged with ASIC by the issuer
of the product, that indicates that the issuer of the product
wants the provisions of Part 7.9 of the Act to apply in
relation to the product from that date; and
(b) 11 March 2004.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 13 Unsolicited offers to purchase financial products off market
Regulation 7.9.96
326 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 13—Unsolicited offers to purchase financial
products off market
7.9.96 Percentage increase or decrease in the market value of a
product
For paragraph 1019J(1)(c) of the Act, 50% is specified.
7.9.97 Off-market trading by professional investors etc
(1) For subparagraph 1019D(1)(d)(viii) of the Act, the following
circumstances are specified:
(a) the offer mentioned in subsection 1019D(1) of the Act is to:
(i) a professional investor; or
(ii) a person who has net assets of at least the amount
specified in regulations made for the purposes of
subparagraph 761G(7)(c)(i) of the Act; or
(iii) a person who has gross income for each of the last 2
financial years of at least the amount specified in
regulations made for the purposes of
subparagraph 761G(7)(c)(ii) of the Act; or
(iv) a business that is not a small business within the
meaning of subsection 761G(12) of the Act;
(b) the minimum amount payable for securities on acceptance of
the offer by the person to whom the offer is made is at least
$500 000;
(c) for a financial product other than securities, the offer for the
financial product is for an amount that equals or exceeds the
amount specified in regulations made for the purposes of
paragraph 761G(7)(a) of the Act.
(2) For paragraph (b), in calculating the amount payable for securities,
disregard any amount payable or paid to the extent to which it is to
be paid, or was paid, out of money lent by the person offering the
securities or an associate of the person offering the securities.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Unsolicited offers to purchase financial products off market Division 13
Regulation 7.9.97A
Corporations Regulations 2001 327
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.97A Information in offer document if payment is to be made in
instalments
(1) For paragraph 1019I(2)(f) of the Act, the following information is
specified for an offer document if payment for the financial
products mentioned in the document is to be made in instalments:
(a) the amount of each instalment;
(b) when each instalment will be paid;
(c) how many instalments will be paid;
(d) how each instalment will be paid;
(e) the following text, replacing X with the total present value of
the instalments and Y with the total current value of the
financial products:
‘Money loses value over time. In this case, the value of the total
instalment payments being offered to you is approximately the
same as being paid a single amount of $X today. $X represents the
‘present day value’ of the instalment payments. Commonwealth
legislation sets out a method for calculating the present value of the
offer, using the rate of interest of 1.1% per month. You can assess
this offer by comparing the present day value of the instalment
payments ($X) with the total market price of your shares or other
financial products ($Y).
‘In general, if the present day value of the instalment payments
being offered is less than the market price of your shares or other
financial products, then this offer may not be fair to you.’
(2) For this regulation, the total present value of a series of instalment
payments is the amount:
n
1
R
1.011 p p
t p
where:
n is the number of instalment payments to be made.
Rp is the amount of instalment payment number p, where each
instalment payment is assigned a number from l to n.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 13 Unsolicited offers to purchase financial products off market
Regulation 7.9.97A
328 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
tp is the number of whole months between the date of offer and the
date that the instalment number p is due.
(3) For this regulation, the total current value of a financial product is
the market value for the product on the date of offer as mentioned
in paragraph 1019I(2)(b) of the Act or the fair estimate of the value
of the product on the date of offer as mentioned in
paragraph 1019I(2)(c) of the Act, as applicable.
(4) For this regulation, all money amounts must be represented in
Australian currency.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Exemptions from Parts 7.7, 7.8 and 7.9 of the Act Division 14
Regulation 7.9.98
Corporations Regulations 2001 329
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 14—Exemptions from Parts 7.7, 7.8 and 7.9 of the
Act
7.9.98 Certain providers of financial services exempted from the
requirements of Parts 7.7, 7.8 and 7.9 of the Act
For the provisions of the Act set out in column 2 of the following
table, a person who is providing a financial service in the
circumstances set out subsections 911A(2A) to (2E) is exempt
from the operation of the Parts of the Act specified in column 3 in
relation to the provision of that service.
Column 1 Column 2 Column 3
Item Provisions of Act
1 paragraph 951C(1)(a) Part 7.7
2 paragraph 992C(1)(a) Part 7.8
3 paragraph 1020G(1)(a) Part 7.9
7.9.98A Exemption from application of Part 7.9 of the Act
For paragraph 1020G(1)(a) of the Act, Part 7.9 of the Act does not
apply to a person to the extent that the person is:
(a) issuing or selling:
(i) a litigation funding scheme mentioned in
regulation 5C.11.01; or
(ii) a litigation funding arrangement mentioned in
regulation 5C.11.01; or
(b) making a recommendation to acquire:
(i) a litigation funding scheme mentioned in
regulation 5C.11.01; or
(ii) a litigation funding arrangement mentioned in
regulation 5C.11.01; or
(c) making an offer relating to the issue or sale of:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 14 Exemptions from Parts 7.7, 7.8 and 7.9 of the Act
Regulation 7.9.98A
330 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) a litigation funding scheme mentioned in
regulation 5C.11.01; or
(ii) a litigation funding arrangement mentioned in
regulation 5C.11.01; or
(d) advertising:
(i) a litigation funding scheme mentioned in
regulation 5C.11.01; or
(ii) a litigation funding arrangement mentioned in
regulation 5C.11.01.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Disclosure in relation to short sales covered by securities lending arrangement of listed
section 1020B products Division 15
Regulation 7.9.99
Corporations Regulations 2001 331
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 15—Disclosure in relation to short sales covered
by securities lending arrangement of listed
section 1020B products
7.9.99 Interpretation
(1) In this Division:
reporting day, in relation to a short position, means a day on which
the Sydney office of ASIC is open for business.
Meaning of short position
(2) In this Division, a short position is a position in relation to a
section 1020B product in a listed entity where the quantity of the
product which a person has is less than the quantity of the product
which the person has an obligation to deliver.
(3) In subregulation (2), the person has the product if:
(a) the person is holding the product on the person’s own behalf;
or
(b) another person is holding the product on the person’s behalf;
or
(c) the person has entered into an agreement to buy the product
but has not received it; or
(d) the person has vested title in the product in a borrower, or in
an entity nominated by the borrower, under a securities
lending arrangement.
(4) In subregulation (2), the product which the person has an
obligation to deliver is the product which the person:
(a) has an obligation to deliver under a sale agreement where the
product has not been delivered; or
(b) has an obligation to vest title in a lender under a securities
lending arrangement; or
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 15 Disclosure in relation to short sales covered by securities lending
arrangement of listed section 1020B products
Regulation 7.9.100
332 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) has any other non-contingent legal obligation to deliver.
References to time
(5) A reference in this Division to a time is a reference to the legal
time in Sydney, New South Wales.
7.9.100 Seller disclosure
(1) For paragraph 1020AB(3)(a) of the Act, the particulars that a seller
must give in relation to a sale of a listed section 1020B product
where the seller has a presently exercisable and unconditional right
to vest the product in a buyer under a securities lending
arrangement are as follows:
(a) the number of section 1020B products that the seller will vest
in the buyer under the arrangement;
(b) a description of the product;
(c) the name of the entity that issued the product;
(d) the seller’s short position as at the close of business 3
reporting days before the day the particulars must be given
under subregulation (4).
(2) For subparagraph 1020AB(3)(b)(i) of the Act, in relation to
particulars mentioned in paragraphs (1)(a), (b), and (c):
(a) the seller mentioned in subparagraph 1020AB(1)(a)(i) of the
Act must give the particulars at the time of entering into an
agreement to sell; and
(b) the seller mentioned in subparagraph 1020AB(1)(a)(ii) of the
Act must give the particulars on or before 9 am:
(i) if the sale occurs after the start of the trading day but
before 7 pm—on the next trading day after entering into
an agreement to sell; and
(ii) if the sale occurs after 7 pm but before the start of the
next trading day—on the second trading day after
entering into an agreement to sell.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Disclosure in relation to short sales covered by securities lending arrangement of listed
section 1020B products Division 15
Regulation 7.9.100A
Corporations Regulations 2001 333
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) A reference to trading day in subregulation (2) is to a trading day
of the market where the sale is executed or reported.
(4) For subparagraph 1020AB(3)(b)(i) of the Act, in relation to
particulars mentioned in paragraph (1)(d), the seller must give the
particulars:
(a) on or before 9 am on the third reporting day after entering
into the agreement to sell that causes the short position to
occur; and
(b) on or before 9 am on each subsequent reporting day as long
as the seller has a short position.
(5) Paragraph (4)(b) applies whether or not the particulars about the
short position have changed from that given on the previous day.
(6) For subparagraph 1020AB(3)(b)(ii) of the Act, in relation to
particulars mentioned in paragraph (1)(d), the seller must give the
particulars in the form required by ASIC.
(7) For subparagraphs 1020AB(4)(a)(ii) and (b)(ii) of the Act, in
relation to the particulars mentioned in paragraph (1)(d), the entity
is ASIC.
(8) For subparagraph 1020AB(4)(b)(ii) of the Act, and in relation to
the particulars other than the particulars mentioned in
paragraph (1)(d), if the operator of the licensed market mentioned
in subparagraph 1020AB(1)(a)(ii) of the Act (operator 1) appoints
the operator of another licensed market (operator 2), in writing, as
operator 1’s agent for the purpose of receiving any of those
particulars, operator 2 is the entity for those particulars.
7.9.100A Seller disclosure of existing short position
(1) If a seller has a short position which arises from an agreement to
sell, entered into before commencement of this regulation, the
seller must give particulars about the short position as at the close
of business on the day this regulation commences:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 15 Disclosure in relation to short sales covered by securities lending
arrangement of listed section 1020B products
Regulation 7.9.101
334 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) on or before 9 am on the third reporting day after
commencement of this regulation; and
(b) on or before 9 am on each subsequent reporting day as long
as the seller has a short position.
(2) The particulars must be given to ASIC in the form required by
ASIC.
7.9.101 Licensee disclosure
(1) For paragraph 1020AC(2)(a) of the Act, the particulars that a
financial services licensee must give in relation to information
given to the licensee under section 1020AB of the Act in relation to
a sale of a listed section 1020B product is the information specified
in paragraphs 7.9.100(1)(a), (b) and (c).
(2) For paragraph 1020AC(2)(b) of the Act:
(a) the time for disclosure of the information is on or before 9
am:
(i) if the information is given to the licensee after the start
of the trading day but before 7 pm—on the next trading
day after the licensee is given the information under
section 1020AB of the Act; and
(ii) if the information is given to the licensee after 7 pm but
before the start of the next trading day—on the second
trading day after the licensee is given the information
under section 1020AB of the Act; and
(b) the manner for disclosure of the information is by electronic
transmission to the operator.
(3) A reference to trading day in subregulation (2) is to a trading day
of the market where the information is given.
(4) For paragraph 1020AC(3)(b) of the Act, and in relation to the
particulars mentioned in paragraph 1020AC(3)(a) of the Act, if the
operator of the licensed market mentioned in
paragraph 1020AC(1)(a) of the Act (operator 1) appoints the
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Disclosure in relation to short sales covered by securities lending arrangement of listed
section 1020B products Division 15
Regulation 7.9.102
Corporations Regulations 2001 335
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
operator of another licensed market (operator 2), in writing, as
operator 1’s agent for the purpose of receiving any of those,
operator 2 is the entity for those particulars.
7.9.102 Public disclosure of information
(1) For paragraph 1020AD(2)(a) of the Act, the particulars which the
operator of a licensed market must publicly disclose in relation to
information given to the operator under section 1020AB or
1020AC of the Act in relation to a sale of a listed section 1020B
product are the total number of each kind of section 1020B product
that has been sold on a particular day and disclosed to the operator
under section 1020AB or 1020AC of the Act.
(1A) For paragraph 1020AD(2)(a) of the Act, the particulars which
ASIC must publicly disclose in relation to information given to it
under section 1020AB of the Act in relation to a sale of a listed
section 1020B product are the total of all short positions in a
product issued by a listed entity that have been disclosed to ASIC
under section 1020AB of the Act on the previous reporting day.
(2) For subparagraph 1020AD(2)(b)(i) of the Act, the time for the
disclosure of the information mentioned in subregulation (1) is:
(a) if the information is given to the licensee after the start of the
trading day but before 7 pm—on the next trading day after
the day the agreements to sell were entered into; and
(b) if the information is given to the licensee after 7 pm but
before the start of the next trading day—on the second
trading day after the day the agreements to sell were entered
into.
(3) A reference to trading day in subregulation (2) is to a trading day
of the market in relation to which the operator is responsible for
disclosure of the information.
(3A) For subparagraph 1020AD(2)(b)(i) of the Act, the time for the
disclosure of the information mentioned in subregulation (1A) is
the first reporting day after the day the information is received.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 15 Disclosure in relation to short sales covered by securities lending
arrangement of listed section 1020B products
Regulation 7.9.102
336 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) For subparagraph 1020AD(2)(b)(ii) of the Act, the manner of
public disclosure of the information mentioned in subregulation (1)
is by publication:
(a) on the operator’s website; or
(b) in any other form that is easily accessible by the public.
(5) For subparagraph 1020AD(2)(b)(ii) of the Act, the manner of
public disclosure of the information mentioned in
subregulation (1A) is by publication:
(a) on ASIC’s website; or
(b) in any other form that is readily accessible by the public.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Market misconduct and other prohibited conduct relating to financial products and
financial services Part 7.10
Regulation 7.10.01
Corporations Regulations 2001 337
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 7.10—Market misconduct and other
prohibited conduct relating to financial
products and financial services
7.10.01 Division 3 financial products
For paragraph (d) of the definition of Division 3 financial products
in section 1042A of the Act, superannuation products provided by
a superannuation entity that is not a public offer entity are
prescribed.
7.10.02 Professional standards schemes
For subsection 1044B(2) of the Act, a scheme and any
modifications to the scheme set out in the following table are
prescribed.
Note: Column 2 of the table below is included for information only.
Prescribed professional standards schemes
Item Column 1
Scheme
Column 2
Date prescribed
1 The Institute of Chartered Accountants in Australia
Professional Standards Scheme (NSW), published in
the New South Wales Government Gazette No. 70,
22 August 2014
1 December 2014
2 The Law Society of New South Wales Scheme,
published in the New South Wales Government
Gazette No. 78, 27 July 2012
1 March 2013
3 The New South Wales Bar Association Scheme,
published in the New South Wales Government
Gazette No. 84, 25 June 2010
1 March 2013
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.10 Market misconduct and other prohibited conduct relating to financial
products and financial services
Regulation 7.10.02
338 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Prescribed professional standards schemes
Item Column 1
Scheme
Column 2
Date prescribed
4 The Institute of Chartered Accountants in Australia
Professional Standards Scheme (Victoria), published
in the Victoria Government Gazette No. S 264,
5 August 2014
1 December 2014
5 The Law Institute of Victoria Limited Scheme,
published in the Victoria Government Gazette No. G
10, 11 March 2010, and the following modifications:
(a) the amendments made by instrument published in
the Victoria Government Gazette No. S 164,
1 May 2013;
(b) the amendments made by instrument published in
the Victoria Government Gazette No. G 36,
5 September 2013
The scheme—
1 November 2012
The amendments
mentioned in:
(a) paragraph (a) of
column 1 of this
item—15 March
2014; and
(b) paragraph (b) of
column 1 of this
item—15 March
2014
6 The Victorian Bar Professional Standards Scheme,
published in the Victoria Government Gazette No. S
134, 24 April 2014
14 June 2014
7 The Bar Association of Queensland Scheme,
published in the Queensland Government Gazette
No. 40, 24 June 2013
15 March 2014
8 The Institute of Chartered Accountants in Australia
Professional Standards Scheme (Queensland),
notified by the Queensland Government on
29 August 2014
1 December 2014
9 The Queensland Law Society Scheme, published in
the Queensland Government Gazette No. 64, 25 June
2010
1 March 2013
10 The Institute of Chartered Accountants in Australia
Professional Standards Scheme (WA), published in
the Western Australian Government Gazette No. 122,
8 August 2014
1 December 2014
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Market misconduct and other prohibited conduct relating to financial products and
financial services Part 7.10
Regulation 7.10.03
Corporations Regulations 2001 339
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Prescribed professional standards schemes
Item Column 1
Scheme
Column 2
Date prescribed
11 The Law Society of Western Australia Scheme,
published in the Western Australian Government
Gazette No. 54, 11 April 2014
14 June 2014
12 The Western Australian Bar Association Scheme,
published in the Western Australian Government
Gazette No. 57, 17 April 2014
14 June 2014
13 The Institute of Chartered Accountants in Australia
Professional Standards Scheme (SA), published in
the South Australian Government Gazette No. 63,
21 August 2014
1 December 2014
14 The Law Society of South Australia Professional
Standards Scheme, published in the South Australian
Government Gazette No. 76, 3 November 2011
1 March 2013
15 The South Australian Bar Association Inc Scheme,
published in the South Australian Government
Gazette No. 76, 3 November 2011
1 March 2013
16 The Institute of Chartered Accountants in Australia
Professional Standards Scheme (ACT), approved on
14 July 2014
1 December 2014
17 The Institute of Chartered Accountants in Australia
Professional Standards Scheme (NT), published in
the Northern Territory Government Gazette No. S84,
17 September 2014
1 December 2014
7.10.03 Exemption for market participants of qualifying gas trading
exchange
For paragraph 1045A(1)(a) of the Act, a person is exempt from
Part 7.10 of the Act if the person:
(a) is a participant in relation to a qualifying gas trading
exchange; and
(b) is engaging in trading activities in relation to qualifying gas
exchange products on a qualifying gas trading exchange.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 1 Preliminary
Regulation 7.11.01
340 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 7.11—Title and transfer
Division 1—Preliminary
7.11.01 Definitions
In this Part:
associate, in relation to a broker or participant, means:
(a) if the broker or participant:
(i) is a member of a firm of brokers or participants; and
(ii) is not a broker’s agent or a participant’s agent;
any other member of the firm; or
(b) if:
(i) the broker or participant is the agent or employee of
another broker or participant; and
(ii) the other broker or participant is not a member of a firm
of brokers or participants;
the other broker or participant; or
(c) if:
(i) the broker or participant is the agent or employee of
another broker or participant; and
(ii) the other broker or participant is a member of a firm of
brokers or participants;
any member of that firm.
ASTC subregister means a subregister of Division 4 financial
products maintained in accordance with the ASTC operating rules.
beneficial owner, in relation to Division 3 securities, means a
person for whom a licensed trustee company, within the meaning
of Chapter 5D of the Act, a Public Trustee of a State or Territory,
or a company listed in Schedule 9 holds (whether alone or together
with any other person or persons) the Division 3 securities in trust
in the ordinary course of its business.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Preliminary Division 1
Regulation 7.11.01
Corporations Regulations 2001 341
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
broker means an Australian financial services licensee who is a
participant of a financial market.
broker’s agent means:
(a) the agent of a broker; or
(b) the employee of a broker.
company includes a body mentioned in regulation 7.11.07.
duly completed, in relation to a transfer document, includes the
requirements set out in regulation 7.11.05.
duly completed Part 1 means a transfer document that has been
duly completed in accordance with Part 1 of Form 1, 2, 3, 5, 6 or 7.
execution time, in relation to a transfer document, means:
(a) for a sufficient transfer under regulation 7.11.11—the time
when the transfer document was stamped with a stamp
purporting to be that of the transferee’s broker; and
(b) for a sufficient transfer under regulation 7.11.12 or 7.11.13—
the time when the transfer document was executed by the
transferor.
identification code, in relation to a participant, means a code that,
for the purposes of the ASTC operating rules, is:
(a) the participant’s identification code; or
(b) one of its identification codes.
in accordance with includes to the effect of.
issuer of a Division 4 financial product means:
(a) an issuer under section 761E of the Act; and
(b) any other person identified as an issuer, or treated as an
issuer, under the ASTC operating rules.
market licensee, in relation to securities specified in a transfer
document, means the market licensee that operates the market for
the securities.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 1 Preliminary
Regulation 7.11.03
342 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.11.03 Arrangements about Division 4 financial products
(1) A financial product is a Division 4 financial product if the
financial product is:
(a) a Division 3 security other than a security mentioned in
paragraph 1073A(1)(e) of the Act; or
(b) declared by ASIC, under section 1075A of the Act, to be a
financial product the transfer of which will be effected
through ASTC under these Regulations.
(2) Subregulations (3) to (8) apply in relation to a class of Division 4
financial products that is admitted to quotation.
(3) A Division 4 financial product in the class of Division 4 financial
products is not taken to have stopped being quoted merely because
of a temporary suspension of quotation of the class.
(4) If:
(a) there is a suspension of the quotation of a Division 4
financial product in the class; and
(b) during the suspension, the issuer in relation to the Division 4
financial product ceases to be included in the official list of
the market licensee on which the Division 4 financial product
is traded;
the Division 4 financial product is taken to stop being quoted when
the issuer ceases to be included in the official list.
(5) Subregulation (4) does not limit the circumstances in which a
Division 4 financial product in the class may be taken to have
stopped being quoted on a financial market of a market licensee.
(6) For the provisions mentioned in subregulation (8), if:
(a) a Division 4 financial product stops being quoted on a
financial market of a market licensee; and
(b) the ASTC operating rules provide that the Division 4
financial product is to be taken to continue to be quoted for a
specified period;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Preliminary Division 1
Regulation 7.11.04
Corporations Regulations 2001 343
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
the Division 4 financial product is taken to be quoted during the
period.
(7) For the provisions mentioned in subregulation (8), if:
(a) a Division 4 financial product has been issued; and
(b) the Division 4 financial product:
(i) is approved, by a market licensee, to be admitted to
quotation on a financial market of the market licensee;
and
(ii) has not yet been quoted; and
(c) the ASTC operating rules provide that the Division 4
financial product is taken to be quoted for a specified period;
the Division 4 financial product is taken to be quoted during the
period.
(8) The provisions are:
(a) the definitions of:
(i) ASTC certificate cancellation provisions; and
(ii) ASTC-regulated transfer; and
(iii) ASTC subregister; and
(iv) proper ASTC transfer; and
(b) section 653A of the Act; and
(c) Part 7.11 of the Act; and
(d) regulations made for the purposes of Part 7.11 of the Act.
7.11.04 Arrangements for forms
(1) A reference in this Part to a form by number is a reference to:
(a) the form numbered in that way in Schedule 2A; or
(b) a form that has the same effect.
(2) If a form in Schedule 2A refers to the full name of the transferor of
Division 3 securities, the reference includes a reference to the
name of the person shown in the records of the issuer in relation to
those securities as the holder of those securities.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 1 Preliminary
Regulation 7.11.05
344 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.11.05 Document duly completed in accordance with a particular
form
(1) Subject to subregulation (2), a document is not duly completed in
accordance with one of Forms 1, 2, 3, 4, 5, 6, 7 and 8, or a part of
one of those forms, unless the following requirements are met:
(a) the document must purport to state the transferee’s name and
address where the form or part requires that information;
(b) the document must bear a stamp that purports to be the
transferor’s broker’s stamp where the form or part requires
that information;
(c) the document must bear a stamp that purports to be the
transferee’s broker’s stamp where the form or part requires
that information;
(d) the document must bear a stamp that purports to be a market
licensee’s stamp where the form or part requires that
information.
(2) If a document (the first document) relates to particular Division 3
securities, the following paragraphs apply for the purposes of
determining whether the first document and another document (the
second document) are, together or with 1 or more other
documents, a sufficient transfer of the Division 3 securities:
(a) the first document is not duly completed in accordance with
Part 3 of Form 1, 2, 3, 5, 6 or 7 unless it:
(i) bears a stamp that purports to be the transferee’s
broker’s stamp where that part refers to the transferee’s
broker’s stamp; and
(ii) sets out a string of characters that purports to be the
transfer consolidation number of the first document
where that part refers to the transferee’s broker’s stamp;
(b) the second document is not duly completed in accordance
with Part 1 of Form 4 or 8 unless it sets out a string of
characters that purports to be the transfer consolidation
number of the first document where that part refers to a
transfer consolidation number or transfer consolidation
numbers (whether or not it sets out 1 or more strings of
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Preliminary Division 1
Regulation 7.11.06
Corporations Regulations 2001 345
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
characters that do not purport to be the transfer consolidation
number);
(c) the second document can be duly completed in accordance
with Part 1 of Form 4 or 8 even if it does not set out correctly
the number of Division 3 securities to which it relates.
Note: If the document mentioned in subregulation (1), or the documents
mentioned in subregulation (2), are a sufficient transfer of the
Division 3 securities, the document or documents become transfer
documents for this Part.
7.11.06 Stamping of documents
(1) In this Part (other than regulation 7.11.40):
(a) a reference to the stamping of a document is a reference to
stamping in ink; and
(b) a reference to a stamp on a document, or to a stamp borne by
a document, is a reference to a stamp stamped on the
document in ink.
(2) A reference in regulation 7.11.40 to the stamping of a document is
a reference to stamping the document in any manner.
Examples:
1 Stamping in ink.
2 Affixing a stamp.
3 Impressing a stamp.
7.11.07 Application of Division 3 of Part 7.11 of the Act to certain
bodies
(1) For subparagraph 1073C(a)(ii) of the Act, the Westpac Banking
Corporation is prescribed.
(2) For subparagraph 1073C(b)(iii) of the Act, the Australian Gas
Light Company is prescribed.
Note: The effect of section 1073C of the Act is that Division 3 of Part 7.11
of the Act applies to bodies prescribed for that section as if they were
companies.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 1 Preliminary
Regulation 7.11.08
346 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.11.08 Interests in registered schemes
For paragraph 1073A(1)(c) of the Act, an interest in a registered
scheme is an interest in a registered scheme if the interest:
(a) is an interest in a managed investment scheme that is
registered under section 601EB of the Act; and
(b) is quoted on the financial market of the Australian Stock
Exchange Limited.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Application of Part 7.11 Division 2
Regulation 7.11.09
Corporations Regulations 2001 347
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2—Application of Part 7.11
7.11.09 Application
This Part applies to conduct engaged in in this jurisdiction or
otherwise.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 3 Transfer of Division 3 securities effected otherwise than through a
prescribed CS facility
Regulation 7.11.10
348 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 3—Transfer of Division 3 securities effected
otherwise than through a prescribed CS facility
7.11.10 Application of Division 3
This Division is made under section 1073D of the Act, and applies
to transfers of Division 3 securities effected otherwise than through
a prescribed CS facility.
7.11.11 Sufficient transfer: general
(1) A document is a sufficient transfer of Division 3 assets if it:
(a) relates to those assets; and
(b) is duly completed in accordance with the documentation in
any of the following subparagraphs:
(i) Parts 1 and 2 of Form 1;
(ii) Part 1 of Form 1 and Parts 1 and 2 of Form 2 or Form 3;
(iii) Parts 1 and 3 of Form 1 and both parts of Form 4;
(iv) Part 1 of Form 1, Parts 1 and 3 of Form 2 or Form 3 and
both parts of Form 4.
(2) A document is a sufficient transfer of Division 3 rights if it:
(a) relates to those rights; and
(b) is duly completed in accordance with the documentation in
any of the following subparagraphs:
(i) Parts 1 and 2 of Form 5;
(ii) Part 1 of Form 5 and Parts 1 and 2 of Form 6 or Form 7;
(iii) Parts 1 and 3 of Form 5 and both parts of Form 8;
(iv) Part 1 of Form 5, Parts 1 and 3 of Form 6 or Form 7 and
both parts of Form 8.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 3 securities effected otherwise than through a prescribed CS
facility Division 3
Regulation 7.11.12
Corporations Regulations 2001 349
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.11.12 Sufficient transfer of Division 3 assets: licensed trustee
company or Public Trustee of a State or Territory
(1) This regulation applies to the transfer of Division 3 assets,
otherwise than by way of sale, gift or exchange, by:
(a) a licensed trustee company, within the meaning of
Chapter 5D of the Act; or
(b) a Public Trustee of a State or Territory; or
(c) a company mentioned in Schedule 9;
whether alone or together with any other person or persons, to the
beneficial owner of the Division 3 assets.
(2) A document is a sufficient transfer of the Division 3 assets if it:
(a) relates to those assets; and
(b) is completed in accordance with Form 9.
7.11.13 Sufficient transfer of Division 3 rights: licensed trustee
company or Public Trustee of a State or Territory
(1) This regulation applies to the transfer of Division 3 rights,
otherwise than by way of sale, gift or exchange, by:
(a) a licensed trustee company, within the meaning of
Chapter 5D of the Act; or
(b) a Public Trustee of a State or Territory; or
(c) a company mentioned in Schedule 9;
whether alone or together with any other person or persons, in
favour of the beneficial owner of those rights.
(2) A document is a sufficient transfer of the Division 3 rights if it:
(a) relates to those rights; and
(b) is completed in accordance with Form 10.
7.11.14 Sufficient transfer
(1) A document that is a sufficient transfer of Division 3 assets may be
used:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 3 Transfer of Division 3 securities effected otherwise than through a
prescribed CS facility
Regulation 7.11.15
350 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) as a proper instrument of transfer for section 1071B of the
Act; and
(b) as an instrument of transfer for the purposes of any other law
or instrument governing or relating to those assets.
(2) A document that is a sufficient transfer of Division 3 rights may be
used as an instrument of transfer of those rights for the purposes of
any law or instrument governing or relating to those rights.
7.11.15 Transferee’s execution of transfer of Division 3 assets
(1) If Division 3 assets are transferred by means of a sufficient
transfer:
(a) the transferee is taken to have agreed at the execution time to
accept the Division 3 assets subject to the terms and
conditions on which the transferor held them at that time; and
(b) the terms and conditions are the terms and conditions
applicable as between:
(i) the issuer in relation to the Division 3 assets; and
(ii) the holder for the time being of the Division 3 assets.
(2) If the Division 3 assets are shares, the transferee is also taken to
have agreed, at the execution time:
(a) to become a member of the issuer; and
(b) to be bound, on being registered as the holder of the shares,
by the issuer’s constitution.
7.11.16 Transferee’s execution of transfer of Division 3 rights
(1) If Division 3 rights relating to Division 3 assets are transferred by
means of a sufficient transfer, the transferee is taken:
(a) to have applied at the execution time to the issuer in relation
to the Division 3 assets for the issue to the transferee of the
Division 3 assets; and
(b) to have agreed at the execution time to accept the Division 3
assets subject to the terms and conditions on which the issuer
offers them for subscription.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 3 securities effected otherwise than through a prescribed CS
facility Division 3
Regulation 7.11.17
Corporations Regulations 2001 351
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) If the Division 3 assets are shares, the transferee is also taken to
have agreed, at the execution time:
(a) to become a member of the issuer; and
(b) to be bound, on being registered as the holder of the shares,
by the issuer’s constitution.
7.11.17 Transfer document that purports to bear stamp of
transferor's broker
(1) This regulation applies if a transfer document relating to Division 3
assets or Division 3 rights:
(a) is a duly completed Part 1; and
(b) bears a stamp that purports to be a stamp of the transferor’s
broker (the designated broker).
(2) Each associate (if any) of the designated broker is taken to have
warranted:
(a) that the statements in the transfer document that purport to be
certified by the designated broker are accurate; and
(b) that the transferor is:
(i) the registered holder of, or entitled to be registered as
the holder of, the Division 3 assets; or
(ii) is entitled to the Division 3 rights;
and is legally entitled or authorised to sell or dispose of the
Division 3 assets or Division 3 rights.
(3) If the designated broker is not a broker’s agent, the designated
broker is taken to have warranted:
(a) that the statements in the transfer document that purport to be
certified by the designated broker are accurate; and
(b) that the transferor is:
(i) the registered holder of, or entitled to be registered as
the holder of, the Division 3 assets; or
(ii) is entitled to the Division 3 rights;
and is legally entitled or authorised to sell or dispose of the
Division 3 assets or Division 3 rights.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 3 Transfer of Division 3 securities effected otherwise than through a
prescribed CS facility
Regulation 7.11.17
352 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) The following additional arrangements apply if the transfer
document has been duly completed in accordance with Part 1 of
Form 1 or Form 5:
(a) if, when the transfer document was stamped with the stamp
mentioned in paragraph (1)(b), the designated broker had
authority to sell the Division 3 assets or Division 3 rights, on
the transferor’s behalf, to:
(i) the transferee; or
(ii) particular persons who include, or particular classes of
persons at least one of which includes, the transferee; or
(iii) any person at all;
the designated broker is taken to have been authorised to
execute, and to have executed, the transfer document on the
transferor’s behalf;
(b) each associate (if any) of the designated broker is liable to
indemnify:
(i) the issuer in relation to the Division 3 assets or
Division 3 rights; and
(ii) the transferor; and
(iii) the transferee; and
(iv) the transferee’s broker;
against any loss or damage arising if:
(v) the stamp mentioned in paragraph (1)(b) is not the
designated broker’s stamp; or
(vi) apart from paragraph (a), the designated broker was not
authorised to execute the transfer document on the
transferor’s behalf;
(c) if the designated broker is not a broker’s agent, the
designated broker is liable to indemnify:
(i) the issuer in relation to the Division 3 assets or
Division 3 rights; and
(ii) the transferor; and
(iii) the transferee; and
(iv) the transferee’s broker;
against any loss or damage arising if:
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 3 securities effected otherwise than through a prescribed CS
facility Division 3
Regulation 7.11.18
Corporations Regulations 2001 353
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(v) the stamp mentioned in paragraph (1)(b) is not the
designated broker’s stamp; or
(vi) apart from paragraph (a), the designated broker was not
authorised to execute the transfer document on the
transferor’s behalf.
7.11.18 Warranties by market licensee if transfer document
purports to bear its stamp
(1) This regulation applies if a transfer document:
(a) has been duly completed in accordance with Part 1 of Form 3
or Form 7; and
(b) bears a stamp that purports to be a stamp of a market
licensee.
(2) The market licensee is taken to have warranted that:
(a) the statements in the transfer document that purport to be
certified by a market licensee are accurate; and
(b) the transferor is:
(i) the registered holder of, or entitled to be registered as
the holder of, the Division 3 assets; or
(ii) entitled to the Division 3 rights;
and is legally entitled or authorised to sell or dispose of the
Division 3 assets or Division 3 rights.
7.11.19 Indemnities by market licensee and broker if transfer
document purports to bear their stamps
(1) This regulation applies if:
(a) a transfer document (the first document) relating to
Division 3 assets or Division 3 rights:
(i) has been duly completed in accordance with Part 1 of
Form 1 or Form 5; and
(ii) bears a stamp that purports to be the stamp of the
transferor’s broker; and
(b) another transfer document:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 3 Transfer of Division 3 securities effected otherwise than through a
prescribed CS facility
Regulation 7.11.20
354 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) relates to any or all of the Division 3 assets or
Division 3 rights; and
(ii) has been duly completed in accordance with Part 1 of
Form 3 or Form 7; and
(iii) bears a stamp that purports to be the stamp of a market
licensee.
(2) The market licensee is liable to indemnify:
(a) the issuer in relation to the Division 3 assets or Division 3
rights; and
(b) the transferor in relation to the other document; and
(c) the transferee in relation to the other document; and
(d) the broker of the transferee in relation to the other document;
against any loss or damage arising if:
(e) the stamp mentioned in subparagraph (1)(a)(ii) is not the
stamp of the transferor’s broker; or
(f) apart from paragraph 7.11.17(4)(a), the designated broker
was not authorised to execute the first document on behalf of
the transferor in relation to the first document.
(3) Each associate (if any) of the transferor’s broker is liable to
indemnify the market licensee against any loss or damage arising
as mentioned in subregulation (2).
(4) If the transferor’s broker is not a broker’s agent, the transferor’s
broker is liable to indemnify the market licensee against any loss or
damage arising as mentioned in subregulation (2).
(5) Nothing in this regulation limits the operation of anything in
regulation 7.11.17 or 7.11.18 or of anything else in this regulation.
7.11.20 Joint and several warranties and liabilities
(1) If 2 or more persons are taken to have warranted in the terms
mentioned in paragraphs 7.11.17(2)(a) and (b) or 7.11.17(3)(a) and
(b), the persons are taken to have warranted jointly and severally.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 3 securities effected otherwise than through a prescribed CS
facility Division 3
Regulation 7.11.21
Corporations Regulations 2001 355
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) If 2 or more persons are liable as mentioned in
paragraph 7.11.17(4)(b) or (c), or subregulation 7.11.19(3) or (4),
the persons are liable jointly and severally.
7.11.21 Registration of certain instruments
(1) This regulation applies if a sufficient transfer under this Part is
lodged with a company for the purpose of:
(a) registering a transfer of Division 3 assets; or
(b) obtaining the issue of Division 3 assets.
(2) If the sufficient transfer is a transfer under regulation 7.11.11, the
company and its officers are, in the absence of knowledge to the
contrary, entitled to assume without inquiry that:
(a) a stamp on the transfer document that purports to be the
transferor’s broker’s stamp is the stamp of that broker; and
(b) a stamp on the transfer document that purports to be the
transferee’s broker’s stamp is the stamp of that broker; and
(c) a stamp on the transfer document that purports to be the
stamp of a market licensee is the stamp of that market
licensee.
(3) If the sufficient transfer is a transfer under regulation 7.11.12 or
7.11.13, the company and its officers are, in the absence of
knowledge to the contrary, entitled to assume without inquiry that:
(a) at the execution time, the licensed trustee company, within
the meaning of Chapter 5D of the Act, a Public Trustee of a
State or Territory, or a company listed in Schedule 9 named
in the instrument held (whether alone or together with any
other person or persons) in the ordinary course of its
business, in trust for or on behalf of the transferee, the
Division 3 assets or Division 3 rights to which the sufficient
transfer relates; and
(b) the transfer was not made by way of a sale, gift or exchange
of the Division 3 assets or Division 3 rights.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 3 Transfer of Division 3 securities effected otherwise than through a
prescribed CS facility
Regulation 7.11.22
356 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.11.22 Details to be included in instrument of transfer
(1) For subsection 1071B(3) of the Act, for a transfer of unquoted
securities, the State or Territory in this jurisdiction in which the
company is taken to be registered is a prescribed detail.
(2) In this regulation:
unquoted securities means securities (within the meaning of
subsection 1071A(1) of the Act) that are not admitted to quotation
on any of the financial markets operated by the Australian Stock
Exchange Limited, Bendigo Stock Exchange Limited or National
Stock Exchange of Australia Limited.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 4 financial products effected through prescribed CS facility
Division 4
Regulation 7.11.23
Corporations Regulations 2001 357
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4—Transfer of Division 4 financial products
effected through prescribed CS facility
7.11.23 Application of Division 4
This Division is made under sections 1074A and 1074E of the Act,
and applies to transfers of Division 4 financial products effected
through ASTC.
Note: ASTC—the ASX Settlement and Transfer Corporation Pty Limited—
is a prescribed CS facility for the Act.
7.11.24 Application of ASTC operating rules
If the ASTC operating rules include provisions determining:
(a) which participant effected a proper ASTC transfer; or
(b) when a proper ASTC transfer takes effect;
those provisions have effect for this Division.
7.11.25 Participant’s authority to enter into transaction continues
despite client’s death
(1) This regulation applies if:
(a) a person authorises a participant to enter into a transaction
involving the disposal of a Division 4 financial product (for
example, a sale); and
(b) the person dies before the participant enters into the
transaction; and
(c) the authority is still in force immediately before the person
dies.
(2) The authority continues, despite the person’s death, as if the person
were still alive.
(3) If the participant enters into the transaction while the authority so
continues, the transaction is binding on the person’s legal
representative.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 4 Transfer of Division 4 financial products effected through prescribed CS
facility
Regulation 7.11.26
358 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) The authority can be revoked by the person’s legal representative
in any way that the person could have revoked it while the person
was alive.
7.11.26 Authority to enter into transaction gives authority to
transfer
(1) This regulation applies if a person authorises a participant to enter
into a transaction involving the disposal of a Division 4 financial
product (for example, a sale).
(2) The person is taken to have authorised the participant to effect any
proper ASTC transfer of the Division 4 financial product that the
participant effects, whether or not the transfer has any connection
with the transaction.
Note: The transfer may have no connection with the transaction because of
the operation of the provisions of the ASTC operating rules mentioned
in subregulation 7.5.41(1).
(3) The authority that the person is taken by subregulation (2) to have
given:
(a) is revoked if, before the transaction is entered into, the
authority to enter into the transaction is revoked or otherwise
ceases to have effect; and
(b) cannot otherwise be revoked.
(4) If the person dies after the transaction is entered into, the authority:
(a) continues in force, despite the person’s death, as if the person
were still alive; and
(b) cannot be revoked.
(5) If:
(a) the authority mentioned in subregulations (1) and (2) is given
to a participant mentioned in paragraph (b) of the definition
of participant in section 761A of the Act (the transacting
participant); and
(b) under the market licensee’s operating rules, a participant
mentioned in paragraph (a) of the definition of participant in
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 4 financial products effected through prescribed CS facility
Division 4
Regulation 7.11.27
Corporations Regulations 2001 359
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
section 761A of the Act (the clearing participant) has the
function of completing the relevant transaction;
the clearing participant has the same authority as the transacting
participant has under subregulations (1) and (2).
7.11.27 Effect of proper ASTC transfer on transferee: Division 4
financial products other than rights
(1) If a proper ASTC transfer of a Division 4 financial product (other
than rights) takes effect at a particular time:
(a) the transferee is taken to have agreed at that time to accept
the Division 4 financial product subject to the terms and
conditions on which the transferor held them immediately
before that time; and
(b) the terms and conditions are the terms and conditions
applicable as between the issuer in relation to, and the holder
for the time being of, the Division 4 financial product.
(2) If the Division 4 financial product is shares, the transferee is also
taken to have agreed at that time:
(a) to become a member of the issuer; and
(b) to be bound by the issuer’s constitution.
(3) If the Division 4 financial product is an interest in a managed
investment scheme, the transferee is also taken to have agreed at
that time:
(a) to become a member of the managed investment scheme; and
(b) to be bound by the constitution of the managed investment
scheme to the extent that:
(i) the transferee will comply with any requirement
imposed on the transferee by the constitution; and
(ii) the transferee will not impede compliance by another
person with any requirement imposed on the other
person by the constitution.
(4) In this regulation:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 4 Transfer of Division 4 financial products effected through prescribed CS
facility
Regulation 7.11.28
360 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
right means a right, whether existing or future, and whether
contingent or not, of a person to have any of the following issued
to the person, whether or not on payment of any money or for any
other consideration:
(a) a share in a company (including a body to which
section 1073C of the Act applies);
(b) a debenture of a company (including a body to which
section 1073C of the Act applies);
(c) an interest in a registered scheme mentioned in regulations
made under paragraph 1073A(1)(c) of the Act.
7.11.28 Effect of proper ASTC transfer on transferee: rights
(1) If a proper ASTC transfer of a Division 4 financial product that is
rights (other than rights that relate to an interest in a managed
investment scheme) takes effect at a particular time, the transferee
is taken:
(a) to have applied at that time to the issuer in relation to the
rights for the issue to the transferee of the Division 4
financial product to which the rights relate; and
(b) to have agreed at that time to accept the Division 4 financial
product to which the rights relate subject to the terms and
conditions on which the issuer offers them for subscription.
(2) If the Division 4 financial product to which the rights (other than
rights that relate to an interest in a managed investment scheme)
relate is shares, the transferee is also taken to have agreed, at that
time:
(a) to become a member of the issuer; and
(b) to be bound, on being registered as the holder of the shares,
by the issuer’s constitution.
(3) If the Division 4 financial product is a right to an interest in a
managed investment scheme, the transferee is also taken to have
agreed at that time:
(a) to have applied at that time to the responsible entity in
relation to the rights for the issue to the transferee of the
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 4 financial products effected through prescribed CS facility
Division 4
Regulation 7.11.29
Corporations Regulations 2001 361
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
interest in a managed investment scheme to which the rights
relate; and
(b) to have agreed at that time to accept the interest in a managed
investment scheme to which the rights relate subject to the
terms and conditions on which they are offered by the
responsible entity; and
(c) to become a member of the managed investment scheme; and
(d) to be bound by the constitution of the managed investment
scheme to the extent that:
(i) the transferee will comply with any requirement
imposed on the transferee by the constitution; and
(ii) the transferee will not impede compliance by another
person with any requirement imposed on the other
person by the constitution.
(4) In this regulation:
right means a right, whether existing or future, and whether
contingent or not, of a person to have any of the following issued
to the person, whether or not on payment of any money or for any
other consideration:
(a) a share in a company (including a body to which
section 1073C of the Act applies);
(b) a debenture of a company (including a body to which
section 1073C of the Act applies);
(c) an interest in a registered scheme mentioned in regulations
made under paragraph 1073A(1)(c) of the Act.
7.11.29 Warranties by participant if identification code is included
in transfer document
(1) This regulation applies if the transfer document for a proper ASTC
transfer of a Division 4 financial product includes a participant’s
identification code as the identification code of the participant
effecting the transfer.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 4 Transfer of Division 4 financial products effected through prescribed CS
facility
Regulation 7.11.29
362 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) If the participant is the transferor, the participant is taken to have
warranted that:
(a) the transfer was effected by the participant; and
(b) the transferor was legally entitled or authorised to transfer the
Division 4 financial product.
(3) Subregulation (4) applies if:
(a) the participant is not the transferor; and
(b) the transfer is pursuant to a transaction in relation to which,
or to transactions in relation to each of which, one of the
following conditions is satisfied:
(i) the transaction was entered into in the ordinary course
of trading on a financial market;
(ii) the transaction is, under the operating rules of a market
licensee, described, or to be described, as ‘special’ when
it is reported to the market licensee.
(4) The participant is taken to have warranted that:
(a) the transferor was legally entitled or authorised to transfer the
Division 4 financial product; and
(b) the transfer was effected by the participant; and
(c) the participant was authorised by the transferor to effect the
transfer.
(5) Subregulation (6) applies if:
(a) the participant is not the transferor; and
(b) the transfer is not pursuant to a transaction in relation to
which, or to transactions in relation to each of which, one of
the following conditions is satisfied:
(i) the transaction was entered into in the ordinary course
of trading on a financial market;
(ii) the transaction is, under the operating rules of a market
licensee, described, or to be described, as ‘special’ when
it is reported to the market licensee.
(6) The participant is taken to have warranted that:
(a) the transfer was effected by the participant; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 4 financial products effected through prescribed CS facility
Division 4
Regulation 7.11.30
Corporations Regulations 2001 363
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the participant was authorised by the transferor to effect the
transfer.
7.11.30 Indemnities in respect of warranted matters: transfer not
effected by the participant
(1) This regulation applies if:
(a) a participant is taken by regulation 7.11.29 to have
warranted, in relation to a proper ASTC transfer of a
Division 4 financial product, that the transfer was effected by
the participant; and
(b) the transfer was not effected by the participant.
(2) The participant is liable to indemnify each of the following against
any loss or damage arising from the transfer not having been
effected by the participant:
(a) the issuer in relation to the Division 4 financial product;
(b) the transferor;
(c) the transferee;
(d) if a participant acted as the transferee’s agent in the
transfer—that participant;
(e) the prescribed CS facility operated by ASTC;
(f) if TNS Clearing Pty Limited is the counter-party in the
transaction—TNS Clearing Pty Limited;
(g) if Options Clearing House Pty Limited is the counter-party in
the transaction—Options Clearing House Pty Limited.
(3) For this regulation, the effect of regulation 7.11.26 is to be
disregarded in determining whether a person:
(a) was legally entitled or authorised to transfer Division 4
financial products; or
(b) was authorised by another person to effect a transfer of
Division 4 financial products.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 4 Transfer of Division 4 financial products effected through prescribed CS
facility
Regulation 7.11.31
364 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.11.31 Indemnities in respect of warranted matters: transferor not
legally entitled or authorised to transfer Division 4
financial products
(1) This regulation applies if:
(a) a participant is taken by regulation 7.11.29 to have
warranted, in relation to a proper ASTC transfer of a
Division 4 financial product, that the transferor was legally
entitled or authorised to transfer the Division 4 financial
product; and
(b) the transferor was not legally entitled or authorised to
transfer the Division 4 financial product.
(2) The participant is liable to indemnify each of the following against
any loss or damage arising from the transferor not having been
legally entitled or authorised to transfer the Division 4 financial
product:
(a) the issuer in relation to the Division 4 financial product;
(b) the transferee;
(c) if a participant acted as the transferee’s agent in the
transfer—that participant;
(d) the prescribed CS facility operated by ASTC;
(e) if TNS Clearing Pty Limited is the counter-party in the
transaction—TNS Clearing Pty Limited;
(f) if Options Clearing House Pty Limited is the counter-party in
the transaction—Options Clearing House Pty Limited.
(3) For this regulation, the effect of regulation 7.11.26 is to be
disregarded in determining whether a person:
(a) was legally entitled or authorised to transfer Division 4
financial products; or
(b) was authorised by another person to effect a transfer of
Division 4 financial products.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 4 financial products effected through prescribed CS facility
Division 4
Regulation 7.11.32
Corporations Regulations 2001 365
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.11.32 Indemnities in respect of warranted matters: participant not
authorised to effect transfer
(1) This regulation applies if:
(a) a participant is taken by regulation 7.11.29 to have
warranted, in relation to a proper ASTC transfer of a
Division 4 financial product, that the participant was
authorised by the transferor to effect the transfer; and
(b) the participant was not authorised by the transferor to effect
the transfer.
(2) The participant is liable to indemnify each of the following against
any loss or damage arising from the participant not having been
authorised by the transferor to effect the transfer:
(a) the issuer in relation to the Division 4 financial product;
(b) the transferor;
(c) the transferee;
(d) if a participant acted as the transferee’s agent in the
transfer—that participant;
(e) the prescribed CS facility operated by ASTC;
(f) if TNS Clearing Pty Limited is the counter-party in the
transaction—TNS Clearing Pty Limited;
(g) if Options Clearing House Pty Limited is the counter-party in
the transaction—Options Clearing House Pty Limited.
(3) For this regulation, the effect of regulation 7.11.26 is to be
disregarded in determining whether a person:
(a) was legally entitled or authorised to transfer Division 4
financial products; or
(b) was authorised by another person to effect a transfer of
Division 4 financial products.
7.11.33 Joint and several warranties and liabilities
(1) If 2 or more persons are taken to have warranted in the terms
mentioned in subregulation 7.11.29(2), (4) or (6), the persons are
taken to have warranted jointly and severally.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 4 Transfer of Division 4 financial products effected through prescribed CS
facility
Regulation 7.11.34
366 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) If 2 or more persons are liable as mentioned in regulation 7.11.30,
7.11.31 or 7.11.32, the persons are liable jointly and severally.
7.11.34 ASTC entitled to assume its operating rules complied with
(1) This regulation applies if the prescribed CS facility operated by
ASTC assumes without inquiry, in the absence of knowledge to the
contrary, that anything purporting to be done under the ASTC
operating rules in connection with a transfer of a Division 4
financial product has been done in accordance with those rules.
(2) If the prescribed CS facility operated by ASTC assumes, in
reliance on subregulation (1), that a thing was done in accordance
with the ASTC operating rules, the thing is taken to have been
done in accordance with those rules.
(3) If the prescribed CS facility operated by ASTC:
(a) acts on behalf of the issuer in relation to a Division 4
financial product; and
(b) as part of that function assumes, in reliance on
subregulation (1), that a thing was done in accordance with
the ASTC operating rules;
the issuer is also taken to assume, and to be entitled to assume, that
the thing was done in accordance with the ASTC operating rules.
7.11.35 ASTC-regulated transfer not to be registered unless proper
ASTC transfer
(1) The issuer in relation to a Division 4 financial product must not
register, or otherwise give effect to, an ASTC-regulated transfer of
the Division 4 financial product unless the transfer is a proper
ASTC transfer.
(2) Subregulation (1) has effect despite anything in:
(a) the issuer’s constitution; or
(b) a deed relating to debentures; or
(c) the constitution of a registered scheme; or
(d) a deed relating to interests.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 4 financial products effected through prescribed CS facility
Division 4
Regulation 7.11.36
Corporations Regulations 2001 367
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.11.36 Issuer not to refuse to register proper ASTC transfer
The issuer in relation to a Division 4 financial product must not:
(a) refuse or fail to register a proper ASTC transfer of the
Division 4 financial product; or
(b) refuse or fail to give effect to a proper ASTC transfer of the
Division 4 financial product.
7.11.37 Determination of who holds Division 4 financial products for
the purposes of meeting
(1) This regulation applies to a meeting of the holders of securities of a
body corporate if some or all of the securities are Division 4
financial products.
(2) The convener of the meeting may determine that all the securities
of the body corporate that are Division 4 financial products at a
specified time before the meeting are taken, for the purposes of the
meeting, to be held by the persons who held them at the specified
time.
(3) The specified time:
(a) must satisfy any applicable requirements of the ASTC
operating rules; but
(b) in any case, must not be more than 48 hours before the
meeting.
(4) The convenor must make a determination:
(a) in accordance with any applicable requirements of the ASTC
operating rules as to the way in which it must be made; but
(b) in any case, before notice of the meeting is given.
(5) The convenor must include particulars of the determination in the
notice of the meeting.
(6) However, a failure to include particulars of the determination in the
notice of the meeting does not invalidate the determination.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 4 Transfer of Division 4 financial products effected through prescribed CS
facility
Regulation 7.11.38
368 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(7) The convenor’s determination has effect accordingly despite
anything in:
(a) the Act; and
(b) these Regulations; and
(c) any other law (written or unwritten) that applies to the
meeting; and
(d) any document that applies to the meeting (for example, the
body corporate’s constitution or any relevant trust deed).
7.11.38 Determination of who holds Division 4 financial products in
class of Division 4 financial products for the purposes of
meeting
(1) This regulation applies to a meeting of the holders of a class of
securities of a body corporate if some or all of the securities in that
class are Division 4 financial products.
(2) The convener of the meeting may determine that all the securities
of the body corporate in the relevant class that are Division 4
financial products at a specified time before the meeting are taken,
for the purposes of the meeting, to be held by the persons who held
them at the specified time.
(3) The specified time:
(a) must satisfy any applicable requirements of the ASTC
operating rules; but
(b) in any case, must not be more than 48 hours before the
meeting.
(4) The convenor must make a determination:
(a) in accordance with any applicable requirements of the ASTC
operating rules as to the way in which it must be made; but
(b) in any case, before notice of the meeting is given.
(5) The convenor must include particulars of the determination in the
notice of the meeting.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 4 financial products effected through prescribed CS facility
Division 4
Regulation 7.11.39
Corporations Regulations 2001 369
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(6) However, a failure to include particulars of the determination in the
notice of the meeting does not invalidate the determination.
(7) The convenor’s determination has effect accordingly despite
anything in:
(a) the Act; and
(b) these Regulations; and
(c) any other law (written or unwritten) that applies to the
meeting; and
(d) any document that applies to the meeting (for example, the
body corporate’s constitution or a relevant trust deed).
7.11.39 Determination of who holds Division 4 financial products for
the purposes of conferring security benefits
(1) If the ASTC operating rules include provisions relating to the
determination, for the purposes of conferring security benefits, of
who holds or is taken to hold Division 4 financial products at a
particular time, those provisions have effect accordingly despite
anything in:
(a) the Act; and
(b) these Regulations; and
(c) any other law (written or unwritten) that applies to the
conferral; and
(d) any document that applies to the conferral (for example, the
body corporate’s constitution or a relevant trust deed).
(2) In subregulation (1), conferring a security benefit means:
(a) paying or transferring money or property to a person because
the person holds or held a Division 4 financial product; or
(b) issuing securities to a person because the person holds or
held a Division 4 financial product; or
(c) conferring a right on a person because the person holds or
held a Division 4 financial product.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 5 Offences
Regulation 7.11.40
370 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5—Offences
7.11.40 Stamping of broker’s stamp on sufficient transfer
(1) A broker must not stamp with a broker’s stamp a document (a
transfer document) that:
(a) relates to Division 3 securities; and
(b) may be used as a sufficient transfer under this Part;
unless the transfer document relates to a sale or purchase of the
Division 3 securities, in the ordinary course of the broker’s
business, for a consideration of not less than their unencumbered
market value at the time of the sale or purchase.
(2) A person must not stamp a transfer document with a stamp that
purports to be that of the transferor’s broker unless:
(a) the stamp is the stamp of the transferor’s broker; and
(b) apart from paragraph 7.11.17(4)(a), the transferor’s broker is
authorised to execute the document on the transferor’s
behalf; and
(c) the person is:
(i) the transferor’s broker; or
(ii) authorised to stamp the document on the transferor’s
broker’s behalf.
(3) A market licensee must not stamp with a stamp of the market
licensee a document that may be used as a sufficient transfer under
this Part of Division 3 securities unless:
(a) a duly completed Part 1, relating to the Division 3 securities,
has been lodged with the issuer in relation to the Division 3
securities; or
(b) the market licensee holds a duly completed Part 1 that:
(i) bears a certificate that purports to be that of the
transferor’s broker; and
(ii) states that a duly completed Part 1, relating to the
Division 3 securities, has been lodged or will be lodged
with the issuer in relation to the Division 3 securities.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Offences Division 5
Regulation 7.11.41
Corporations Regulations 2001 371
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) A person must not execute a document that:
(a) may be used as a sufficient transfer under regulation 7.11.12
or 7.11.13; and
(b) relates to a transfer of Division 3 securities:
(i) made by way of a sale, gift or exchange of the
Division 3 securities; or
(ii) to or in favour of a person who is not the beneficial
owner of the Division 3 securities.
(5) A person who is not a licensed trustee company, within the
meaning of Chapter 5D of the Act, a Public Trustee of a State or
Territory, or a company listed in Schedule 9 must not knowingly
cause, authorise or permit to be executed a document that:
(a) relates to Division 3 securities; and
(b) may be used as a sufficient transfer under regulation 7.11.12
or 7.11.13;
but is not a sufficient transfer under that regulation.
(6) A person must not knowingly lodge or cause to be lodged with a
company a document that has been:
(a) stamped in contravention of subregulation (1), (2) or (3); or
(b) executed in contravention of subregulation (4);
for the purpose of securing the registration of the transfer of, or the
issue of, Division 3 securities to the transferee named in the
document.
7.11.41 Inclusion of identification codes in proper ASTC transfers
A person must not include a participant’s identification code in a
document that may be used to effect a proper ASTC transfer
unless:
(a) the person:
(i) is the participant; or
(ii) is authorised so to include the identification code by the
participant; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 5 Offences
Regulation 7.11.42
372 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) if:
(i) the identification code is so included as the
identification code of the participant effecting the
transfer; and
(ii) the participant is not the transferor;
the participant is, apart from the effect of regulation 7.11.26,
authorised by the transferor to effect the transfer.
7.11.42 Contravention by participant of the ASTC certificate
cancellation provisions relating to use of cancellation
stamps
A participant must not, intentionally or recklessly, contravene the
ASTC certificate cancellation provisions by affixing, or failing to
affix, a cancellation stamp to a certificate or other document of title
to a Division 4 financial product.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Civil liability Division 6
Regulation 7.11.43
Corporations Regulations 2001 373
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 6—Civil liability
7.11.43 Contravention by participant of the ASTC certificate
cancellation provisions
(1) This regulation applies to a person who suffers loss or damage
because of conduct of a participant that was engaged in a
contravention of the ASTC certificate cancellation provisions.
(2) The person may, unless the person was involved in the
contravention, recover the amount of the loss or damage by action
against the participant, whether or not the participant has been
convicted of an offence in respect of the contravention.
(3) An action under subregulation (2) must be begun within 6 years
after the day on which the cause of action arose.
(4) This regulation does not affect a liability that a person has under
any other law.
(5) For section 1310B of the Act, an action under subregulation (2) is
taken to be a proceeding in respect of loss or damage arising out of
a contravention of the Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.12 Miscellaneous
Regulation 7.12.01
374 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 7.12—Miscellaneous
7.12.01 Destruction of records by ASIC
For paragraph 1101D(b) of the Act, the period of possession is 7
years.
Federal Register of Legislative Instruments F2015C00303
Mutual recognition of securities offers Chapter 8
Preliminary Part 8.1
Regulation 8.1.01
Corporations Regulations 2001 375
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 8—Mutual recognition of securities
offers
Part 8.1—Preliminary
8.1.01 Prescribed foreign recognition scheme (Act s 1200A(1))
For the definition of foreign recognition scheme in
subsection 1200A(1) of the Act, the provisions of each of the
following comprises a foreign recognition scheme:
(a) Part 5 of the Securities Act 1978 of New Zealand and the
Securities (Mutual Recognition of Securities Offerings—
Australia) Regulations 2008 of New Zealand;
(b) Subpart 6 of Part 9 of the Financial Markets Conduct Act
2013 of New Zealand and the Financial Markets Conduct
Regulations 2014 of New Zealand.
8.1.02 Prescribed offeror (Act s 1200A(1))
For the definition of offeror of securities in subsection 1200A(1) of
the Act:
(a) an offer of an interest in a managed investment scheme
governed by the laws of New Zealand is prescribed as a kind
of offer; and
(b) for that offer:
(i) if the scheme is a unit trust established under the Unit
Trusts Act 1960 of New Zealand—the offeror is the
manager of the scheme as defined in that Act; or
(ii) if the scheme is a scheme within the meaning of the
Securities Act 1978 of New Zealand—the offeror is the
manager of the scheme as defined in that Act; or
(iii) if the scheme is a managed investment scheme within
the meaning of the Financial Markets Conduct Act 2013
of New Zealand—the offeror is the manager of the
managed investment scheme as defined in that Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 8 Mutual recognition of securities offers
Part 8.1 Preliminary
Regulation 8.1.03
376 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
8.1.03 Prescribed recognised jurisdiction (Act s 1200A(1))
For the definition of recognised jurisdiction in
subsection 1200A(1) of the Act, New Zealand is prescribed.
Federal Register of Legislative Instruments F2015C00303
Mutual recognition of securities offers Chapter 8
Foreign offers that are recognised in this jurisdiction Part 8.2
Recognised offers Division 1
Regulation 8.2.01
Corporations Regulations 2001 377
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 8.2—Foreign offers that are recognised in this
jurisdiction
Division 1—Recognised offers
8.2.01 Prescribed offer (Act s 1200C(4))
For subsection 1200C(4) of the Act, each of the following is a
prescribed offer in relation to New Zealand:
(a) an offer of a security to which Part 2 of the Securities Act
1978 of New Zealand (in accordance with Schedule 4 to the
Financial Markets Conduct Act 2013 of New Zealand)
applies;
(b) an offer of a security for which a disclosure document (as
defined in the Financial Markets Conduct Act 2013 of New
Zealand) must be prepared in accordance with the Financial
Markets Conduct Act 2013 of New Zealand or the Financial
Markets Conduct Regulations 2014 of New Zealand.
Note: For the purpose of Chapter 8 of the Act and Chapter 8 of these
regulations, a security does not include all of the financial products
defined as securities in Part 2 of the Securities Act 1978 of New
Zealand or in the Financial Markets Conduct Act 2013 of New
Zealand—see the definition of securities in section 1200A(1) of the
Act. For example, a security does not include an interest in a
superannuation scheme or a life insurance policy.
8.2.02 Prescribed warning statements (Act s 1200E)
(1) For section 1200E of the Act, the statements set out in
subregulation (1A) are prescribed for a recognised offer made
under the Securities Act 1978 of New Zealand and the Securities
(Mutual Recognition of Securities Offerings—Australia)
Regulations 2008 of New Zealand.
(1A) For subregulation (1) the statements are:
(a) this offer to Australian investors is a recognised offer made
under Australian and New Zealand law. In Australia, this is
Federal Register of Legislative Instruments F2015C00303
Chapter 8 Mutual recognition of securities offers
Part 8.2 Foreign offers that are recognised in this jurisdiction
Division 1 Recognised offers
Regulation 8.2.02
378 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 8 of the Corporations Act 2001 and Regulations. In
New Zealand, this is Part 5 of the Securities Act 1978 of
New Zealand and the Securities (Mutual Recognition of
Securities Offerings—Australia) Regulations 2008 of New
Zealand; and
(b) this offer and the content of the offer document are
principally governed by New Zealand, rather than Australian,
law. In the main, the Securities Act 1978 of New Zealand
and the Securities Regulations 2009 of New Zealand set out
how the offer must be made.
(1B) For section 1200E of the Act, the statements set out in
subregulation (1C) are prescribed for a recognised offer made
under the Financial Markets Conduct Act 2013 of New Zealand
and the Financial Markets Conduct Regulations 2014 of New
Zealand.
(1C) For subregulation (1B) the statements are:
(a) this offer to Australian investors is a recognised offer made
under Australian and New Zealand law. In Australia, this is
Chapter 8 of the Corporations Act 2001 and Regulations. In
New Zealand, this is Subpart 6 of Part 9 of the Financial
Markets Conduct Act 2013 of New Zealand and the Financial
Markets Conduct Regulations 2014 of New Zealand; and
(b) this offer and the content of the offer document are
principally governed by New Zealand, rather than Australian,
law. In the main, the Financial Markets Conduct Act 2013 of
New Zealand and the Financial Markets Conduct
Regulations 2014 of New Zealand set out how the offer must
be made.
(1D) For section 1200E of the Act, the following statements are
prescribed for a recognised offer made under the New Zealand
legislation mentioned in subregulation (1) or (1B):
(a) there are differences in how securities and financial products
are regulated under New Zealand, as opposed to Australian,
law. For example, the disclosure of fees for managed
investment schemes is different under New Zealand law;
Federal Register of Legislative Instruments F2015C00303
Mutual recognition of securities offers Chapter 8
Foreign offers that are recognised in this jurisdiction Part 8.2
Recognised offers Division 1
Regulation 8.2.02
Corporations Regulations 2001 379
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the rights, remedies and compensation arrangements
available to Australian investors in New Zealand securities
and financial products may differ from the rights, remedies
and compensation arrangements for Australian securities and
financial products;
(c) both the Australian and New Zealand securities regulators
have enforcement responsibilities in relation to this offer. If
you need to make a complaint about this offer, please contact
the Australian Securities and Investments Commission
(ASIC). The Australian and New Zealand regulators will
work together to settle your complaint;
(d) the taxation treatment of New Zealand securities and
financial products is not the same as that for Australian
securities and products;
(e) if you are uncertain about whether this investment is
appropriate for you, you should seek the advice of an
appropriately qualified financial advisor.
(2) For paragraph 1200E(a) of the Act, the following additional
warning statements are prescribed for offers involving the payment
of proceeds, from securities or financial products, that are not
Australian dollars:
(a) The offer may involve a currency exchange risk. The
currency for the security or financial product is in dollars that
are not Australian dollars. The value of the security or
financial product will go up and down according to changes
in the exchange rate between those dollars and Australian
dollars. These changes may be significant;
(b) If you receive any payments in relation to the security or
financial product that are not in Australian dollars, you may
incur significant fees in having the funds credited to a bank
account in Australia in Australian dollars.
(3) For paragraph 1200E(a) of the Act, the following additional
warning statement is prescribed for offers involving securities and
financial products, able to be traded on a financial market:
If the security or financial product is able to be traded on a
financial market and you wish to trade the security or financial
Federal Register of Legislative Instruments F2015C00303
Chapter 8 Mutual recognition of securities offers
Part 8.2 Foreign offers that are recognised in this jurisdiction
Division 1 Recognised offers
Regulation 8.2.03
380 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
product through that market, you will have to make arrangements
for a participant in that market to sell the security or financial
product on your behalf. If the financial market is a foreign market
that is not licensed in Australia (such as a securities market
operated by the New Zealand Exchange Limited (NZX)) the way
in which the market operates, the regulation of participants in that
market and the information available to you about the security or
financial product and trading may differ from Australian licensed
markets.
8.2.03 Prescribed details to be given in warning statements (Act s
1200E(b))
For paragraph 1200E(b) of the Act, if a matter is referred to in an
item of the Table, the details in the item are prescribed for the
matter.
Item Matter Details to be provided
1 An offer to invest in a
managed investment scheme
is subject to an obligation to
provide for a dispute
resolution process
Details of the dispute resolution
process available in relation to
that offer
2 An offer is subject to
continuous disclosure
obligations
Details of the availability of the
continuous disclosure notices
that relate to that offer
3 An offer of a product that is
currently listed or is to be
listed on a financial market
Details of the financial market
on which the product is listed, or
on which it is proposed to be
listed
8.2.04 Prescribed home regulators (Act s 1200G(13) and (14))
For subsections 1200G(13) and (14) of the Act:
(a) an authority referred to in an item of the Table is prescribed
as a home regulator for New Zealand; and
Federal Register of Legislative Instruments F2015C00303
Mutual recognition of securities offers Chapter 8
Foreign offers that are recognised in this jurisdiction Part 8.2
Recognised offers Division 1
Regulation 8.2.04
Corporations Regulations 2001 381
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) each matter listed in the item in relation to the authority is
prescribed as a matter in relation to which the authority is to
be regarded as the home regulator.
Item Authority Matter(s) in relation to which
the authority is to be regarded
as the home regulator
1 Registrar of Financial
Service Providers of New
Zealand
Each matter mentioned in:
(a) items 1 to 4 of the Table at
subsection 1200G(9) of the
Act; or
(b) item 4 of the Table at
subsection 1200N(1) of the
Act
2 Financial Markets Authority
of New Zealand
Each matter mentioned in
items 5 to 7 of the Table at
subsection 1200G(9) of the Act
Federal Register of Legislative Instruments F2015C00303
Chapter 8 Mutual recognition of securities offers
Part 8.2 Foreign offers that are recognised in this jurisdiction
Division 4 Modification of the Act in relation to its application to recognised offers for
interests in New Zealand managed investment schemes (Act s 1020G, 1200M)
Regulation 8.4.01
382 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4—Modification of the Act in relation to its
application to recognised offers for interests in
New Zealand managed investment schemes (Act s
1020G, 1200M)
8.4.01 Modification of Part 7.9 of the Act—New Zealand offer
documents replace Product Disclosure Statements
For section 1020G of the Act, Part 7.9 of the Act is modified in its
application in relation to managed investment schemes as set out in
Part 18 of Schedule 10A.
8.4.02 Modification of Part 6D.2 of the Act and Part 7.9 of the Act—
certain disclosure obligations not to apply
For section 1200M of the Act, Part 6D.2 of the Act and Part 7.9 of
the Act are modified in relation to their application in respect of a
recognised offer or a proposed offer of securities that may become
a recognised offer as set out in Part 1 of Schedule 10AA.
Federal Register of Legislative Instruments F2015C00303