Commonwealth Consolidated Regulations

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CORPORATIONS REGULATIONS 2001 - REG 7.7A.12

What subdivision is about

                   This subdivision:

                     (a)  is made for paragraph 963B(1)(e) of the Act; and

                     (b)  prescribes the circumstances in which a monetary benefit given to a financial services licensee, or representative of a financial services licensee, (the provider ) who provides financial product advice to persons as retail clients is not conflicted remuneration.

Note 1:       The definition of financial product advice is in subsection 766B(1) of the Act.

Note 2:       A reference in this Division to giving a benefit includes a reference to causing or authorising it to be given (see section 52 of the Act).

Note 3:       Under the governing rules of some regulated superannuation funds, a member may seek advice on the basis that the trustee of the fund will pay the licensee or representative for the advice and then recover the amount paid from the assets of the fund attributed to that member. In that case, the member has caused or authorised the amount to be paid to the licensee or representative. If the operation of section 52 of the Act and these regulations means that the payment is not conflicted remuneration, the trustee's obligations under section 62 of the Superannuation Industry (Supervision) Act 1993 (which deals with the purposes for which a trustee may act in maintaining a regulated superannuation fund) will not be affected.



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