Commonwealth Consolidated Regulations

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CORPORATIONS REGULATIONS 2001 - REG 10.2.137

Incomplete financial services

             (1)  For section 1444 of the Act, this regulation applies in relation to a person who:

                     (a)  was provided with an incomplete financial service in relation to pre-FSR securities before the FSR commencement; and

                     (b)  was not a retail investor in relation to the incomplete financial service.

             (2)  The old Corporations Act, and any associated provisions, continue to apply in relation to the incomplete financial service to the extent necessary to allow the financial service to be completed under the old Corporations Act.

             (3)  The amended Corporations Act does not apply in relation to the incomplete financial service to the extent necessary to allow the financial service to be completed under the old Corporations Act.

             (4)  In this regulation:

incomplete financial service means a service:

                     (a)  that is, or would be, a financial service under the Act, whether it was provided before or after the FSR commencement; and

                     (b)  either:

                              (i)  that commenced before the amended Corporations Act applied to the provider in relation to the service; or

                             (ii)  in relation to which instructions had been received by the provider of the service from the client, or a person acting on the client's behalf, before the amended Corporations Act applied to the provider in relation to the service; and

                     (c)  in relation to which:

                              (i)  the provider of the service did not need to obtain from the client any further instructions or information in order to be authorised or able to complete the provision of the service; or

                             (ii)  the majority of activities that needed to be carried out:

                                        (A)  by the provider; or

                                        (B)  by a person acting on the instructions of the provider; or

                                        (C)  on behalf of the provider;

                                   occurred before the amended Corporations Act applied to the provider in relation to the financial service; and

                     (d)  completed within 4 weeks after the amended Corporations Act applies to that provider in relation to the service.

retail investor means a retail investor under subregulation 7.3.02B(10) of these Regulations, as in force immediately before the FSR commencement.



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