Commonwealth Consolidated Acts

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CORPORATIONS ACT 2001 - SECT 761GA

Meaning of retail client--sophisticated investors

                   For the purposes of this Chapter, a financial product, or a financial service (other than a traditional trustee company service or a crowd-funding service ) in relation to a financial product, is not provided by one person to another person as a retail client if:

                     (a)  the first person (the licensee ) is a financial services licensee; and

                     (b)  the financial product is not a general insurance product, a superannuation product or an RSA product; and

                     (c)  the financial product or service is not provided for use in connection with a business; and

                     (d)  the licensee is satisfied on reasonable grounds that the other person (the client ) has previous experience in using financial services and investing in financial products that allows the client to assess:

                              (i)  the merits of the product or service; and

                             (ii)  the value of the product or service; and

                            (iii)  the risks associated with holding the product; and

                            (iv)  the client's own information needs; and

                             (v)  the adequacy of the information given by the licensee and the product issuer; and

                     (e)  the licensee gives the client before, or at the time when, the product or advice is provided a written statement of the licensee's reasons for being satisfied as to those matters; and

                      (f)  the client signs a written acknowledgment before, or at the time when, the product or service is provided that:

                              (i)  the licensee has not given the client a Product Disclosure Statement; and

                             (ii)  the licensee has not given the client any other document that would be required to be given to the client under this Chapter if the product or service were provided to the client as a retail client; and

                            (iii)  the licensee does not have any other obligation to the client under this Chapter that the licensee would have if the product or service were provided to the client as a retail client.



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