Commonwealth Consolidated Regulations

[Index] [Table] [Search] [Search this Regulation] [Notes] [Noteup] [Previous] [Next] [Download] [Help]


Application of ban on conflicted remuneration--person other than platform operator (Division 4 of Part 7.7A of Chapter 7 of the Act applies)

             (1)  This regulation:

                     (a)  is made for subsection 1528(2) of the Act; and

                     (b)  prescribes a circumstance in which Division 4 of Part 7.7A of Chapter 7 of Chapter 7 of the Act applies to a benefit; and

                     (c)  does not apply in relation to a benefit to which regulation 7.7A.16C applies.

Note:          Subsection 1528(1) of the Act sets out a rule about when Division 4 of Part 7.7A of Chapter 7 of the Act does not apply to a benefit given to a financial services licensee, or a representative of a financial services licensee. Subsection 1528(2) of the Act permits regulations to prescribe circumstances in which that Division applies, or does not apply, to a benefit.

             (2)  The circumstance is that:

                     (a)  the benefit is given by a person who is not acting in the capacity of a platform operator; and

                     (b)  the benefit is given under an arrangement that was entered into before the application day, within the meaning of subsection 1528(4) of the Act; and

                     (c)  the benefit:

                              (i)  is given in relation to the acquisition, on or after 1 July 2014, of a financial product, for the benefit of a retail client; or

                             (ii)  does not relate to a financial service provided, before 1 July 2014, for the benefit of a retail client; and

                     (d)  the client did not have an interest in the product before 1 July 2014.

Note:          For the definition of platform operator , see subsection 1526(1) of the Act.

             (3)  F or subregulation (2), treat a benefit as having been given by a person acting in the capacity as a platform operator if it:

                     (a)  is given by a platform operator; and

                     (b)  relates to activities undertaken in connection with the platform as a result of instructions to the platform operator from a client who has set up, or is setting up, an account on the platform.

Continuity of arrangement

             (4)  For subregulation (2):

                     (a)  i f a party to an arrangement changes, treat the arrangement as having continued in effect, after the change, as the same arrangement; and

                     (b)  if a retail client has an interest in a financial product before 1 July 2014, treat a benefit as relating to an acquisition of the financial product whether it is paid in relation to the initial acquisition of the financial product or the subsequent holding of the financial product.

Managed investment schemes

             (5)  For subregulation (2), if a retail client:

                     (a)  had an interest in a managed investment scheme before 1 July 2014; and

                     (b)  acquires a further interest in the managed investment scheme on or after 1 July 2014 ;

do not treat the acquisition of the further interest as having occurred on or after 1 July 2014.

Multi product offerings

             (6)  For subregulation (2), if:

                     (a)  more than one financial product is marketed and offered together under one product disclosure statement (a multi-product offering ) in a way in which:

                              (i)  a retail client receives a consolidated report on a periodic basis listing the client's holdings in all of those financial products; and

                             (ii)  there is a facility which allows a retail client to choose between, acquire, switch or transfer an interest in one or more of those financial products; and

                     (b)  the benefit is to be paid by the issuer of the product disclosure statement; and

                     (c)  a retail client opened an account on the multi-product offering before 1 July 2014; and

                     (d)  the retail client acquires an interest or a further interest in any one or more of the financial products available in the multi-product offering on or after 1 July 2014 ;

do not treat the acquisition of the interest, or further interest, mentioned in paragraph (d) as having occurred on or after 1 July 2014.

Relationship with regulation 7.7A.16

             (7)  If this regulation and regulation 7.7A.16 are able to apply in relation to the benefit, disregard regulation 7.7A.16.

AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback