Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) A monetary benefit is not conflicted remuneration if:
(a) the benefit consists of a percentage, of no more than 100%, of a brokerage fee that is given to a provider who is a trading participant of a prescribed financial market or the market known as the ASX24; and
(b) the provider, directly or indirectly, gives the benefit to a representative of the provider.
Note 1: For prescribed financial market , see regulation 1.0.02A.
Note 2: The ASX24 is the financial market operated by Australian Securities Exchange Limited that was formerly known as the Sydney Futures Exchange.
(1A) A monetary benefit is not conflicted remuneration if:
(a) the benefit is a fee paid between a financial services licensee that is a trading participant of a prescribed financial market and a financial services licensee that is not a trading participant in respect of dealings undertaken by a retail client through a specified service; and
(b) each of those trades is executed by the trading participant on behalf of the retail client; and
(c) the fee is a percentage, not exceeding 100%, of a brokerage fee paid directly or indirectly by the retail client; and
(d) no portion of the benefit is paid to a person other than the trading participant or the licensee that is not a trading participant.
(2) In this regulation:
"brokerage fee" means a fee that a retail client pays to a provider in relation to a transaction in which the provider, on behalf of the retail client, deals in a financial product that is traded on:
(a) a prescribed financial market; or
(aa) the market known as the ASX24; or
(b) a prescribed foreign financial market.
Note 1: Regulations 7.7A.17 and 7.7A.18 relate to exemptions in relation to the charging of asset - based fees on borrowed amounts.
Note 2: The ASX24 is the financial market operated by Australian Securities Exchange Limited that was formerly known as the Sydney Futures Exchange.
"prescribed foreign financial market" means a financial market that:
(a) has its principal place of business in a foreign country; and
(b) has been authorised by an authority in that country that is a signatory to the International Organization of Securities Commissions' Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information of May 2002.
"specified service" means a service which:
(a) is provided for retail clients under the name or brand name of:
(i) the financial services licensee that is not a trading participant; or
(ii) the trading participant and the financial services licensee that is not a trading participant; and
(b) relates to the dealing, on behalf of the retail client, in a financial product traded on:
(i) a prescribed financial market; or
(ii) a prescribed foreign financial market; and
(c) is provided in either or both of the following ways:
(i) by direct electronic access;
(ii) by telephone, but only if:
(A) direct electronic access is not available for a temporary period, or the retail client expresses a preference that the service be provided by telephone; and
(B) neither the trading participant nor the financial services licensee that is not a trading participant is to provide financial product advice to the retail client by telephone in relation to the dealing undertaken on the retail client's behalf; and
(d) is provided in circumstances in which neither the trading participant nor the financial services licensee that is not a trading participant provides personal advice to the retail client in relation to the dealing undertaken on the retail client's behalf.
"trading participant" of a prescribed financial market or the market known as the ASX24 means a person who:
(a) is a participant of the market admitted under the market's operating rules; and
(b) is allowed, under the market's operating rules, to deal in one or more of the financial products that are able to be traded on the market.
Note: The ASX24 is the financial market operated by Australian Securities Exchange Limited that was formerly known as the Sydney Futures Exchange.