Commonwealth Consolidated Regulations

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CORPORATIONS REGULATIONS 2001 - REG 7.6.01BA

Modification of section 912A of the Act

             (1)  For paragraph 926B(1)(c) of the Act, Part 7.6 of the Act applies as if paragraph 912A(1)(e) were modified to read as follows:

                    "(e)  for a licensee other than a limited licensee--maintain the competence to provide the financial services covered by the licence; and".

             (2)  For paragraph 926B(1)(c) of the Act, Part 7.6 of the Act applies as if section 912A of the Act were modified by inserting after paragraph 912A(1)(e) the following paragraphs:

                  "(ea)  for a limited licensee who is an individual--maintain knowledge of the financial services covered by the licence; and

                   (eb)  for a limited licensee that is a corporation or partnership--ensure that each recognised accountant that supervises and has responsibility for the provision of financial services covered by the licence maintain knowledge of the financial services covered by the licence; and".

             (3)  For paragraph 926B(1)(c) of the Act, Part 7.6 of the Act applies as if section 912A of the Act were modified by inserting after subsection 912A(3) the following subsections:

           " (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.

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:

                              (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 an interest in a self-managed superannuation fund.

limited licensee means a financial services licensee that:

                     (a)  is:

                              (i)  a recognised accountant; or

                             (ii)  a corporation that has one or more recognised accountants that supervise and have responsibility for the provision of financial services covered by its licence; or

                            (iii)  a partnership that has one or more recognised accountants that supervise and have responsibility for the provision of financial services covered by its licence; and

                     (b)  applied for the financial services licence between 1 July 2013 and 30 June 2016; and

                     (c)  is only licensed to provide one or more limited financial services.

recognised accountant means:

                     (a)  a member of CPA Australia who:

                              (i)  holds a Public Practice Certificate issued by CPA Australia Ltd; and

                             (ii)  is entitled to use the letters "CPA" or "FCPA"; and

                            (iii)  is subject to, and complies with, CPA Australia's continuing professional education requirements; or

                     (b)  a member of The Institute of Chartered Accountants in Australia ( ICAA ) who:

                              (i)  holds a Certificate of Public Practice issued by ICAA; and

                             (ii)  is entitled to use the letters "ACA", "CA" or "FCA"; and

                            (iii)  is subject to, and complies with, ICAA's continuing professional education requirements; or

                     (c)  a member of the Institute of Public Accountants ( IPA ) who:

                              (i)  holds a Public Practice Certificate issued by IPA; and

                             (ii)  is entitled to use the letters "FIPA" or "MIPA"; and

                            (iii)  is subject to, and complies with, IPA's continuing professional education requirements.

simple managed investment scheme has the same meaning as in the regulations.".



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