Commonwealth Consolidated Acts

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Application of ban on other remuneration--asset-based fees on borrowed amounts

             (1)  Subdivision B of Division 5 of Part 7.7A, as inserted by item 24 of Schedule 1 to the amending Act, applies to asset-based fees charged on or after the application day on borrowed amounts, but only to the extent that those amounts are used or to be used to acquire financial products on or after that day.

             (2)  Despite subsection (1), that Subdivision does not apply to an asset-based fee charged on or after the application day, to the extent that the operation of that Subdivision would result in an acquisition of property (within the meaning of paragraph 51(xxxi) of the Constitution) from a person otherwise than on just terms (within the meaning of that paragraph of the Constitution).

             (3)  In this section:

"application day" , in relation to a financial services licensee or a person acting as a representative of a financial services licensee, means:

                     (a)  if the financial services licensee has lodged notice with ASIC in accordance with subsection 967(1) that the obligations and prohibitions imposed under Part 7.7A are to apply to the licensee and persons acting as representatives of the licensee on and from the day specified in the notice--the day specified in the notice; or

                     (b)  if the person has not lodged such a notice--1 July 2013.

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