Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) For subsection 761G(10) of the Act if, at any time, the holder of a financial product is a wholesale client in relation to the product because of paragraph 761G(7)(a) of the Act:
(a) the holder is taken, on and after that time, to be a wholesale client in relation to the product as between the holder and:
(i) the issuer of the product; or
(ii) if a related body corporate of the issuer of the product provides a custodial or depository service to the holder of the product in relation to the product--the related body corporate;
for the period during which the holder holds the product; and
(b) paragraph (a) applies whether or not the holder would, but for that paragraph, have otherwise been or become a retail client in relation to that product at some time.
(2) For subsection 761G(10) of the Act, if:
(a) a person is a wholesale client in relation to the product because of paragraph 761G(7)(a) or paragraph (1)(a); and
(b) another person becomes a holder of the financial product; and
(c) the issuer did not know, and could not reasonably be expected to have known:
(i) whether another person had become the holder of the financial product; or
(ii) whether any subsequent holder of the financial product was a retail client or a wholesale client;
the issuer is taken not to be guilty of any offence, or to be liable under
civil penalty or civil liability provisions under the Act, merely because the
issuer has not treated any subsequent holder of that financial product as a
retail client.