Prepared by the Office of Parliamentary Counsel, Canberra
Corporations Regulations 2001
Statutory Rules No. 193, 2001
made under the
Corporations Act 2001
Compilation No. 113
Compilation date: 31 March 2015
Includes amendments up to: SLI No. 39, 2015
Registered: 9 April 2015
This compilation is in 7 volumes
Volume 1: regulations 1.0.01–6D.5.02
Volume 2: regulations 7.1.02–7.6.08E
Volume 3: regulations 7.7.01–8.4.02
Volume 4: regulations 9.1.01–12.9.03
Volume 5: Schedules 1, 2 and 2A
Volume 6: Schedules 3–12
Volume 7: Endnotes
Each volume has its own contents
Federal Register of Legislative Instruments F2015C00303
About this compilation
This compilation
This is a compilation of the Corporations Regulations 2001 that shows the text
of the law as amended and in force on 31 March 2015 (the compilation date).
This compilation was prepared on 31 March 2015.
The notes at the end of this compilation (the endnotes) include information
about amending laws and the amendment history of provisions of the compiled
law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the
compiled law. Any uncommenced amendments affecting the law are accessible
on ComLaw (www.comlaw.gov.au). The details of amendments made up to, but
not commenced at, the compilation date are underlined in the endnotes. For
more information on any uncommenced amendments, see the series page on
ComLaw for the compiled law.
Application, saving and transitional provisions for provisions and
amendments
If the operation of a provision or amendment of the compiled law is affected by
an application, saving or transitional provision that is not included in this
compilation, details are included in the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as
modified but the modification does not amend the text of the law. Accordingly,
this compilation does not show the text of the compiled law as modified. For
more information on any modifications, see the series page on ComLaw for the
compiled law.
Self-repealing provisions
If a provision of the compiled law has been repealed in accordance with a
provision of the law, details are included in the endnotes.
Federal Register of Legislative Instruments F2015C00303
Corporations Regulations 2001 i
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Contents
Chapter 7—Financial services and markets 1
Part 7.1—Preliminary 1
Division 1—General 1
7.1.02 Participant .........................................................................1
7.1.03 Prescribed CS facility ........................................................1
7.1.03A Basic deposit products.......................................................1
7.1.03B Self managed superannuation funds ..................................1
7.1.04 Derivatives ........................................................................2
7.1.04A Meaning of kind of financial products
(section 1012IA of the Act) ...............................................4
7.1.04B Meaning of class of financial products (managed
investment schemes)..........................................................5
7.1.04C Meaning of class of financial products
(superannuation products) .................................................5
7.1.04CA Kinds of financial products ...............................................5
7.1.04D Meaning of issuer for certain derivatives ..........................6
7.1.04E Issue of a new interest in a superannuation fund ...............6
7.1.04F Meaning of class of financial services
(subsections 917A(3), 917C(2) and 917C(3) of the
Act)....................................................................................7
7.1.04G Meaning of issuer for a foreign exchange contract............7
7.1.04N Specific things that are financial products—
litigation funding schemes and arrangements....................7
7.1.05 Specific things that are not financial products:
superannuation interests ....................................................8
7.1.06 Specific things that are not financial products:
credit facility .....................................................................8
7.1.06A Arrangements for certain financial products that
are not credit facilities .....................................................11
7.1.06B Specific things that are not financial products:
superannuation interests ..................................................11
7.1.07 Specific things that are not financial products:
surety bonds ....................................................................11
7.1.07A Specific things that are not financial products:
rental agreements.............................................................12
7.1.07B Specific things that are not financial products:
bank drafts .......................................................................12
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7.1.07C Specific things that are not financial products:
insurance under an overseas student health
insurance contract............................................................13
7.1.07D Specific things that are not financial products:
funeral expenses policy ...................................................13
7.1.07E Specific things that are not financial products:
rights of the holder of a debenture...................................13
7.1.07F Specific things that are not financial products:
money orders ...................................................................14
7.1.07G Specific things that are not financial products:
electronic funds transfers.................................................14
7.1.07H Specific things that are not financial products:
ACT insurance.................................................................15
7.1.07I Specific things that are not financial products—
Australian carbon credit units and eligible
international emissions units ...........................................15
7.1.07J Specific things that are not financial products—
carbon abatement.............................................................15
7.1.08 Meaning of financial product advice: exempt
document or statement.....................................................15
7.1.08A Modification of section 766D of the Act—free
carbon units .....................................................................17
7.1.09 Obligations related to clearing and settlement
facility .............................................................................17
7.1.10 Conduct that does not constitute operating a
clearing and settlement facility........................................18
Division 2—Retail clients and wholesale clients 20
7.1.11 Meaning of retail client and wholesale client:
motor vehicle insurance product......................................20
7.1.12 Meaning of retail client and wholesale client:
home building insurance product ....................................21
7.1.13 Meaning of retail client and wholesale client:
home contents insurance product ....................................22
7.1.14 Meaning of retail client and wholesale client:
sickness and accident insurance product .........................23
7.1.15 Meaning of retail client and wholesale client:
consumer credit insurance product ..................................24
7.1.16 Meaning of retail client and wholesale client:
travel insurance product ..................................................25
7.1.17 Meaning of retail client and wholesale client:
personal and domestic property insurance product..........26
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7.1.17A General insurance products: medical indemnity
insurance products...........................................................28
7.1.17B Retail clients and wholesale clients: aggregation of
amounts for price or value of financial product...............28
7.1.17C Retail clients: traditional trustee company services .........29
7.1.18 Retail clients and wholesale clients: price of
investment-based financial products................................29
7.1.19 Retail clients and wholesale clients: value of
investment-based financial products................................31
7.1.19A Retail clients and wholesale clients: price of
margin lending facilities ..................................................35
7.1.20 Retail clients and wholesale clients: price of
income stream financial products ....................................36
7.1.21 Retail clients and wholesale clients: value of
income stream financial products ....................................38
7.1.22 Retail clients and wholesale clients: value of
derivatives .......................................................................41
7.1.22A Retail clients and wholesale clients: value of
foreign exchange contracts ..............................................42
7.1.23 Retail clients and wholesale clients: price of
non-cash payment financial products ..............................43
7.1.24 Retail clients and wholesale clients: value of
non-cash payment products .............................................44
7.1.25 Retail clients and wholesale clients: life risk
insurance and other risk-based financial products ...........46
7.1.26 Superannuation-sourced money ......................................46
7.1.27 Retail clients and wholesale clients: effect of
wholesale status...............................................................47
7.1.28 Retail clients and wholesale clients: assets and
income.............................................................................48
Division 3—When does a person provide a financial service? 50
7.1.28A Circumstances in which a person is taken to be
provided a traditional trustee company service ...............50
7.1.29 Circumstances in which a person is taken not to
provide a financial service...............................................50
7.1.29A Self-managed superannuation funds................................54
7.1.30 Information and advice about voting...............................55
7.1.31 Passing on prepared documents.......................................56
7.1.32 Remuneration packages...................................................56
7.1.33 Handling insurance claims ..............................................57
7.1.33A Allocation of funds available for investment...................58
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7.1.33B General advice.................................................................58
7.1.33D Investment-linked life insurance products.......................59
7.1.33E Advice about the existence of a custodial or
depository service............................................................59
7.1.33F School banking................................................................60
7.1.33G Certain general advice that does not attract
remuneration etc. .............................................................60
7.1.33H Certain general advice given by a financial product
issuer ...............................................................................61
Division 4—Dealings in financial products 63
7.1.34 Conduct that does not constitute dealing in a
financial product..............................................................63
7.1.35 Conduct that does not constitute dealing in a
financial product..............................................................63
7.1.35A Conduct that does not constitute dealing in a
financial product—lawyers acting on instructions ..........64
7.1.35B Conduct that does not constitute dealing in a
financial product—issuing carbon units, Australian
carbon credit units or eligible international
emissions units ................................................................65
7.1.35C Conduct that does not constitute dealing in a
financial product—carbon units, Australian carbon
credit units or eligible international emissions
units.................................................................................65
Division 5—Custodial or depository services 67
7.1.40 Conduct that does not constitute the provision of a
custodial or depository service ........................................67
Division 6—Operating a financial market 70
7.1.50 Operating a financial market ...........................................70
Part 7.2—Licensing of financial markets 71
Division 1—Market licensees’ obligations 71
7.2.01 Obligation to inform ASIC of certain matters:
contraventions of licence or Act ......................................71
7.2.02 Obligation to inform ASIC of certain matters:
becoming director, secretary or executive officer
of market licensee............................................................71
7.2.03 Obligation to inform ASIC of certain matters:
ceasing to be director, secretary or executive
officer of market licensee ................................................72
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7.2.04 Obligation to inform ASIC of certain matters:
voting power in market licensee ......................................72
7.2.05 Giving ASIC information about a listed disclosing
entity................................................................................73
7.2.06 Annual report of market licensee.....................................74
Division 2—The market’s operating rules and procedures 75
7.2.07 Content of licensed market’s operating rules ..................75
7.2.08 Content of licensed market’s written procedures.............76
Division 3—Powers of the Minister and ASIC 78
7.2.09 Agencies for compliance assessment...............................78
Division 4—The Australian market licence: applications
(general) 79
7.2.10 Application of Division 4 ................................................79
7.2.11 Information......................................................................79
7.2.12 Documents.......................................................................80
Division 5—The Australian market licence: applications
(financial market in foreign country) 83
7.2.13 Application of Division 5 ................................................83
7.2.14 Information......................................................................83
7.2.15 Documents.......................................................................84
Division 6—The Australian market licence: other matters 85
7.2.16 Potential conflict situations .............................................85
Part 7.2A—Supervision of financial markets 90
Division 7.2A.1—Enforceable undertakings 90
7.2A.01 Enforceable undertakings ................................................90
Division 7.2A.2—Infringement notices 92
7.2A.02 Purpose of Division .........................................................92
7.2A.03 Definitions for Division 7.2A.2.......................................93
7.2A.04 When infringement notice can be given ..........................93
7.2A.05 Statement of reasons must be given ................................94
7.2A.06 Contents of infringement notice ......................................94
7.2A.07 Amount of penalty payable to the Commonwealth .........96
7.2A.08 Compliance with infringement notice .............................96
7.2A.09 Extension of compliance period ......................................97
7.2A.10 Effect of compliance with infringement notice ...............98
7.2A.11 Application to withdraw infringement notice ..................99
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7.2A.12 Withdrawal of infringement notice by ASIC.................100
7.2A.13 Notice of withdrawal of infringement notice.................100
7.2A.14 Withdrawal of notice after compliance..........................101
7.2A.15 Publication of details of infringement notice.................101
Part 7.3—Licensing of clearing and settlement facilities 104
Division 1—Regulation of CS facility licensees: licensees’
obligations 104
7.3.01 Obligation to inform ASIC of certain matters:
becoming director, secretary or executive officer
of CS facility licensee....................................................104
7.3.02 Obligation to inform ASIC of certain matters:
ceasing to be director, secretary or executive
officer of CS facility licensee ........................................105
7.3.03 Obligation to inform ASIC of certain matters:
voting power in CS facility licensee ..............................105
7.3.04 Annual report of CS facility licensee.............................106
Division 2—Regulation of CS facility licensees: the facility’s
operating rules and procedures 107
7.3.05 Content of licensed CS facility’s operating rules ..........107
7.3.06 Content of licensed CS facility’s written
procedures .....................................................................108
Division 3—Regulation of CS facility licensees: powers of the
Minister and ASIC 109
7.3.07 Agencies for compliance assessment.............................109
7.3.08 Agencies for compliance assessment.............................110
Division 4—The Australian CS facility licence: applications
(general) 111
7.3.09 Application of Division 4 ..............................................111
7.3.10 Information....................................................................111
7.3.11 Documents.....................................................................113
Division 5—The Australian CS facility licence: applications
(overseas clearing and settlement facility) 116
7.3.12 Application of Division 5 ..............................................116
7.3.13 Information....................................................................116
7.3.14 Documents.....................................................................117
Part 7.4—Limits on involvement with licensees 118 7.4.01 Widely held market body ..............................................118
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7.4.02 Record-keeping: market licensee...................................118
7.4.03 Record-keeping: CS facility licensee.............................119
7.4.04 Information for widely held market body......................119
Part 7.5—Compensation regimes for financial markets 120
Division 1—Preliminary 120
7.5.01 Definitions for Part 7.5..................................................120
7.5.01A Modification of Act: compensation regimes .................123
7.5.02 Meaning of becoming insolvent.....................................124
7.5.03 Meaning of dealer .........................................................125
7.5.04 Meaning of excluded person .........................................125
7.5.06 Meaning of sale and purchase of securities ..................127
7.5.07 Meaning of securities business: general ........................128
7.5.08 Meaning of securities business: Subdivision 4.9...........129
7.5.09 Meaning of security.......................................................129
7.5.10 Meaning of transfer of securities...................................129
7.5.13 Effect of contravention of Part 7.5 ................................130
Division 2—When there must be a compensation regime 131
7.5.14 Application for Australian market licence:
information about compensation arrangements .............131
Division 3—Approved compensation arrangements 132
7.5.15 Application for approval of compensation
arrangements after grant of Australian market
licence: information about compensation
arrangements .................................................................132
7.5.16 Notification of payment of levies ..................................133
7.5.17 Amount of compensation ..............................................133
Division 4—NGF Compensation regime 134
Subdivision 4.1—Preliminary 134
7.5.18 Application of Division 4 ..............................................134
Subdivision 4.2—Third party clearing arrangements 134
7.5.19 Clearing arrangements...................................................134
Subdivision 4.3—Contract guarantees 136
7.5.24 Claim by selling client in respect of default by
selling dealer: ASTC-regulated transfer ........................136
7.5.25 Claim by selling client in respect of default by
selling dealer: transaction other than
ASTC-regulated transfer ...............................................138
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7.5.26 Claim by buying client in respect of default by
buying dealer: ASTC-regulated transfer........................139
7.5.27 Claim by buying client in respect of default by
buying dealer: transaction other than
ASTC-regulated transfer ...............................................141
7.5.28 Cash settlement of claim: ASTC-regulated transfer ......142
7.5.29 Cash settlement of claim: transfer other than
ASTC-regulated transfer ...............................................143
7.5.30 Making of claims...........................................................144
Subdivision 4.7—Unauthorised transfer 145
7.5.53 Application of Subdivision 4.7......................................145
7.5.54 Claim by transferor........................................................146
7.5.55 Claim by transferee or sub-transferee............................146
7.5.56 How and when claim may be made...............................147
7.5.57 How claim is to be satisfied...........................................148
7.5.58 Discretionary further compensation to transferor ..........149
7.5.59 Nexus with Australia .....................................................149
Subdivision 4.8—Contraventions of ASTC certificate cancellation
provisions 150
7.5.60 Claim in respect of contravention of ASTC
certificate cancellation provisions .................................150
7.5.61 How and when claim may be made...............................150
7.5.62 How claim is to be satisfied...........................................152
7.5.63 Discretionary further compensation ..............................152
Subdivision 4.9—Claims in respect of insolvent participants 153
7.5.64 Claim in respect of property entrusted to, or
received by, dealer before dealer became insolvent ......153
7.5.65 Cash settlement of claims if property unobtainable.......154
7.5.66 Ordering of alternative claims and prevention of
double recovery .............................................................156
7.5.67 No claim in respect of money lent to dealer ..................157
7.5.68 Nexus with Australia .....................................................158
7.5.69 No claim in certain other cases......................................158
7.5.70 Making of claims...........................................................158
7.5.71 Limits of compensation .................................................159
Subdivision 4.10—General 161
7.5.72 Power of SEGC to allow and settle claim .....................161
7.5.73 Application of Fund in respect of certain claims ...........161
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7.5.74 Discretion to pay amounts not received etc
because of failure to transfer securities .........................161
7.5.75 Reduction in compensation ...........................................162
7.5.76 Claimant may be required to exercise right of
set-off ............................................................................163
7.5.77 Effect of set-off on claim...............................................163
7.5.78 Claimant entitled to costs and disbursements ................165
7.5.79 Interest...........................................................................166
7.5.80 SEGC to notify claimant if claim disallowed ................167
7.5.81 Arbitration of amount of cash settlement of certain
claims ............................................................................167
7.5.82 Instalment payments......................................................169
7.5.83 Notification of payment of levies ..................................170
7.5.84 Notification of payment of levies ..................................170
Subdivision 4.11—Other provisions relating to compensation 171
7.5.85 Prescribed body corporate with arrangements
covering clearing and settlement facility support ..........171
Division 5—Provisions common to both kinds of compensation
arrangements 172
7.5.86 Excess money in National Guarantee Fund...................172
7.5.87 Excess money in fidelity fund .......................................172
7.5.88 Minister’s arrangements for use of excess money
from compensation funds ..............................................173
7.5.89 Payment of excess money from NGF............................174
7.5.90 Use of excess money from NGF....................................174
7.5.91 Payment of excess money from fidelity fund ................175
7.5.92 Use of excess money from fidelity fund........................175
7.5.93 Qualified privilege.........................................................176
Part 7.5A—Regulation of derivative transactions and
derivative trade repositories 177
Division 2—Regulation of derivative transactions: derivative
transaction rules 177
Subdivision 2.1—Power to make derivative transaction rules 177
7.5A.30 Meaning of reporting requirements...............................177
7.5A.50 Persons on whom requirements cannot be imposed ......178
Subdivision 2.2—Enforceable undertakings 179
7.5A.101 Enforceable undertakings ..............................................179
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Subdivision 2.3—Infringement notices 180
7.5A.102 Infringement notices......................................................180
7.5A.103 Definitions for Subdivision ...........................................181
7.5A.104 When infringement notice can be given ........................181
7.5A.105 Statement of reasons must be given ..............................182
7.5A.106 Contents of infringement notice ....................................182
7.5A.107 Amount of penalty payable to the Commonwealth .......184
7.5A.108 Compliance with infringement notice ...........................184
7.5A.109 Extension of compliance period ....................................185
7.5A.110 Effect of compliance with infringement notice .............186
7.5A.111 Application to withdraw infringement notice ................187
7.5A.112 Withdrawal of infringement notice by ASIC.................188
7.5A.113 Notice of withdrawal of infringement notice.................188
7.5A.114 Withdrawal of notice after compliance..........................188
7.5A.115 Publication of details of infringement notice.................189
Division 5—Regulation of licensed derivative trade repositories:
other obligations and powers 191
7.5A.150 Obligations and powers—confidential information.......191
7.5A.150A European Union requests for derivative trade data ........191
7.5A.150B Other requests for derivative trade data.........................192
7.5A.151 Obligations relating to derivative trade data..................194
7.5A.200 ASIC may assess licensee’s compliance .......................194
Division 7—Regulation of prescribed derivative trade
repositories 195
7.5A.250 Obligations and powers—confidential information.......195
Division 8—Other matters 196
7.5A.270 Record-keeping .............................................................196
Part 7.6—Licensing of providers of financial services 197 7.6.01 Need for Australian financial services licence:
general ...........................................................................197
7.6.01AAA Particular financial products not exempted ...................210
7.6.01AA Persons taken to hold financial services licences
covering First Home Saver Accounts ............................210
7.6.01AB Obligation on persons providing exempt financial
service ...........................................................................211
7.6.01A Providing financial services on behalf of a person
who carries on a financial services business..................213
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7.6.01B Need for Australian financial services licence:
financial product advice provided by the media ............213
7.6.01BA Modification of section 912A of the Act .......................215
7.6.01C Obligation to cite licence number in documents............218
7.6.02 Alternative dispute resolution systems ..........................219
7.6.02AAA Compensation arrangements if financial services
provided to persons as retail clients (Act s 912B) .........220
7.6.02AA Modification of section 912B of the Act:
professional indemnity insurance and security
instead of compensation arrangements ..........................223
7.6.02AB Modification of section 761G of the Act: meaning
of retail client and wholesale client...............................226
7.6.02AC Modification of section 761G of the Act: meaning
of retail client and wholesale client...............................226
7.6.02AD Modification of section 761G of the Act: meaning
of retail client and wholesale client...............................227
7.6.02AE Modification of section 9 of the Act: Definition of
professional investor .....................................................228
7.6.02AF Modification of section 761G of the Act: renewal
period for accountants’ certificates................................228
7.6.02AG Modification of section 911A of the Act .......................229
7.6.02AGA Further modification of section 911A of the Act...........231
7.6.02AH Modification of paragraph 911B(1)(e) of the Act..........237
7.6.02AI Obligations to provide information about relevant
providers and controllers of body corporate
licensees ........................................................................237
7.6.02A Obligation to notify ASIC of certain matters.................237
7.6.03 Applying for Australian financial services licence ........238
7.6.03A Australian financial services licence—
requirements for a foreign entity to appoint local
agent ..............................................................................239
7.6.03B Foreign entity must continue to have local agent ..........239
7.6.04 Conditions on Australian financial services licence ......240
7.6.04A Exemptions to notification of authorised
representatives...............................................................246
7.6.05 Register of financial services licensees and register
of authorised representatives of financial services
licensees ........................................................................247
7.6.06 ASIC register relating to persons against whom
banning order or disqualification order is made ............248
7.6.06A Relevant provider number .............................................249
7.6.06B Register of relevant providers .......................................249
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7.6.06C Correcting registers .......................................................252
7.6.07 Restriction on use of certain words or expressions........252
Part 7.6A—Authorised representatives 253 7.6.08 Authorised representatives ............................................253
Part 7.6B—Provision of information to APRA about contracts
of insurance 255 7.6.08A Definitions.....................................................................255
7.6.08B Application....................................................................255
7.6.08C Modification of section 912CA of the Act ....................255
7.6.08D Information about general insurance products...............256
7.6.08E Information about general insurance products—
unauthorised foreign insurers ........................................257
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Preliminary Part 7.1
General Division 1
Regulation 7.1.02
Corporations Regulations 2001 1
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 7—Financial services and markets
Part 7.1—Preliminary
Division 1—General
7.1.02 Participant
For subparagraph (b)(vi) of the definition of participant in
section 761A of the Act, section 792A of the Act is prescribed.
7.1.03 Prescribed CS facility
For the definition of prescribed CS facility in section 761A of the
Act, ASX Settlement and Transfer Corporation Pty Limited (also
known as ‘ASTC’) is a prescribed CS facility.
7.1.03A Basic deposit products
(1) For subparagraph (d)(ii) of the definition of basic deposit product
in section 761A of the Act, this regulation applies in relation to
ADIs entitled under the Banking Act 1959 to use any of the
following expressions in relation to their financial business:
(a) credit union;
(b) credit society;
(c) credit co-operative;
(d) building society.
(2) The prior notice requirement is a period not more than 7 days
before a withdrawal or transfer of funds from a facility made
available by the ADI.
7.1.03B Self managed superannuation funds
In this Chapter:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.1 Preliminary
Division 1 General
Regulation 7.1.04
2 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
self managed superannuation fund has the same meaning as in
the SIS Act.
7.1.04 Derivatives
(1) For paragraph 761D(1)(b) of the Act, the prescribed period is:
(a) for a foreign exchange contract—3 business days; and
(b) in any other case—1 business day.
(2) For subsection 761D(2) of the Act, and subject to this regulation,
an arrangement is declared to be a derivative if the following
conditions are satisfied in relation to the arrangement:
(a) the arrangement is not a foreign exchange contract;
(b) under the arrangement, a party to the arrangement must, or
may be required to, provide at some future time (which may
be less than 1 day after the arrangement is entered into)
consideration of a particular kind or kinds to someone;
(c) the amount of the consideration, or the value of the
arrangement, is ultimately determined, derived from or varies
by reference to (wholly or in part) the value or amount of
something else (of any nature whatsoever and whether or not
deliverable), including, for example, one or more of the
following:
(i) an asset;
(ii) a rate (including an interest rate or exchange rate);
(iii) an index;
(iv) a commodity.
(4) An arrangement under which:
(a) a party has, or may have, an obligation to buy tangible
property (other than Australian or foreign currency) at a price
and on a date in the future; and
(b) another party has, or may have, an obligation to sell that
property; and
(c) the arrangement does not permit the seller’s obligations to be
wholly settled by cash, or by set-off between the parties,
rather than by delivery of the property; and
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(d) neither usual market practice, nor the rules of a licensed
market or a licensed CS facility, permits the seller’s
obligations to be closed out by the matching up of the
arrangement with another arrangement of the same kind
under which the seller has offsetting obligations to buy;
is not an arrangement to which subregulation (2) applies to the
extent only that the arrangement deals with that purchase and sale.
(5) An arrangement under which:
(a) a party has an obligation to buy property; and
(b) another party has an obligation to sell the property;
is not an arrangement to which subregulation (2) applies merely
because the arrangement provides for the consideration to be
varied by reference to a general inflation index (for example, the
Consumer Price Index).
(6) A contract for the future provision of services is not an
arrangement to which subregulation (2) applies.
(7) A thing that is described in subsection 764A(1) of the Act, other
than paragraph 764A(1)(c), is not an arrangement to which
subregulation (2) applies.
(8) For paragraph 761D(3)(d) of the Act, each of the following is
declared not to be a derivative for Chapter 7 of the Act:
(a) tradeable water rights;
(b) an arrangement:
(i) under which a person (the seller) has, or may have, an
obligation to sell tradeable water rights at a future date;
and
(ii) under which another person (the buyer) has, or may
have, an obligation to buy the tradeable water rights, or
replacement water rights, at a future date; and
(iii) that does not permit the seller’s obligations to be wholly
settled by cash, or by set-off between the seller and the
buyer, rather than by transfer of ownership of the
tradeable water rights or replacement water rights; and
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(iv) in relation to which neither usual market practice, nor
the rules, allow the seller’s obligations to be closed out
by matching up the arrangement with another
arrangement of the same kind under which the seller has
offsetting obligations to buy the tradeable water rights
or replacement water rights;
(c) a carbon abatement contract.
Note: For carbon abatement contract, see subregulation 1.0.02(1).
(9) Subregulations (4) to (8) apply whether or not a matter mentioned
in those subregulations is described in subsection 761D(1) of the
Act.
(10) In subregulation (8):
replacement water rights means tradeable water rights that are
granted, issued or authorised as a replacement for the seller’s
tradeable water rights, including as a result of transformation
arrangements mentioned in subsection 97(1) of the Water Act
2007.
rules means the rules of:
(a) a licensed market; or
(b) a licensed CS facility.
tradeable water rights has the same meaning as in the Water Act
2007.
7.1.04A Meaning of kind of financial products (section 1012IA of the
Act)
(1) For section 761CA of the Act, this regulation applies in relation to
paragraph (a) of the definition of custodial arrangement in
subsection 1012IA(1) of the Act.
(2) Each of the following is a kind of financial product:
(a) for interests in a managed investment scheme, all the
interests in that managed investment scheme;
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(b) in any other case, all the financial products issued by a
person or the person’s related bodies corporate.
7.1.04B Meaning of class of financial products (managed investment
schemes)
(1) For section 761CA of the Act, this regulation applies in relation to
paragraph 1017F(4)(d) of the Act.
(2) An interest in a managed investment scheme is in the same class as
another interest in a managed investment scheme if they are both
interests in the same managed investment scheme.
7.1.04C Meaning of class of financial products (superannuation
products)
(1) For section 761CA of the Act, this regulation applies in relation to
paragraph 1017F(4)(d) of the Act.
(2) A superannuation product is in the same class as another
superannuation product if they are both issued by the same
superannuation entity.
7.1.04CA Kinds of financial products
(1) For section 761CA of the Act, this regulation applies in relation to
paragraph 917C(3)(ba) of the Act.
(2) The following are kinds of financial product:
(a) motor vehicle insurance;
(b) home building insurance;
(c) home contents insurance;
(d) sickness and accident insurance;
(e) consumer credit insurance;
(f) travel insurance.
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7.1.04D Meaning of issuer for certain derivatives
(1) This regulation applies in relation to a financial product that:
(a) is a derivative; and
(b) is entered into, or acquired through a facility conducted in
accordance with:
(i) the Corporations (Exempt Futures Market—National
Wholesale Electricity) Declaration 1999; or
(ii) the Corporations (Exempt Futures Market)
Declaration 2001.
(2) For paragraph 761E(7)(a) of the Act, each person who is a party to
the financial product is taken to be an issuer of the financial
product.
(3) For paragraph 761E(7)(a) of the Act, subsections 761E(5) and (6)
of the Act do not apply to the financial product.
7.1.04E Issue of a new interest in a superannuation fund
(1) This regulation applies if a member of a superannuation fund, who
has a superannuation interest in the growth phase, elects to receive
a pension in relation to that interest or part of that interest.
(2) For paragraph 761E(7)(a) of the Act, the superannuation fund is
taken to issue a new financial product when:
(a) it acknowledges receipt of the member’s election; or
(b) it makes the first payment of the pension;
whichever occurs first.
(3) For this regulation:
growth phase has the meaning given by regulation 1.03AB of the
SIS Regulations.
pension has the meaning given by subregulation 1.06(1) of the SIS
Regulations.
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7.1.04F Meaning of class of financial services (subsections 917A(3),
917C(2) and 917C(3) of the Act)
(1) For section 761CA of the Act, this regulation applies for
subsections 917A(3), 917C(2) and 917C(3) of the Act.
(2) Each of the following is a class of financial services:
(a) the provision of financial product advice relating to a general
insurance product;
(b) the provision of financial product advice relating to an
investment life insurance product;
(c) the provision of financial product advice relating to a life risk
insurance product;
(d) dealing in a financial product that is a general insurance
product;
(e) dealing in a financial product that is an investment life
insurance product;
(f) dealing in a financial product that is a life risk insurance
product.
7.1.04G Meaning of issuer for a foreign exchange contract
(1) This regulation applies to a financial product that is a foreign
exchange contract that is not entered into, or traded, on a financial
market.
(2) For paragraph 761E(7)(a) of the Act, each party to the foreign
exchange contract is an issuer of the product.
7.1.04N Specific things that are financial products—litigation
funding schemes and arrangements
For paragraph 764A(1)(m) of the Act:
(a) an interest in a litigation funding scheme mentioned in
regulation 5C.11.01 is a financial product; and
(b) an interest in a litigation funding arrangement mentioned in
regulation 5C.11.01 is a financial product.
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7.1.05 Specific things that are not financial products:
superannuation interests
For paragraph 765A(1)(q) of the Act, an exempt public sector
superannuation scheme within the meaning of the SIS Act is
prescribed.
7.1.06 Specific things that are not financial products: credit facility
(1) For subparagraph 765A(1)(h)(i) of the Act, each of the following is
a credit facility:
(a) the provision of credit:
(i) for any period; and
(ii) with or without prior agreement between the credit
provider and the debtor; and
(iii) whether or not both credit and debit facilities are
available; and
(iv) that is not a financial product mentioned in
paragraph 763A(1)(a) of the Act; and
(v) that is not a financial product mentioned in
paragraph 764A(1)(a), (b), (ba), (f), (g), (h) or (j) of the
Act; and
(vi) that is not a financial product mentioned in
paragraph 764A(1)(i) of the Act, other than a product
the whole or predominant purpose of which is, or is
intended to be, the provision of credit;
(b) a facility:
(i) known as a bill facility; and
(ii) under which a credit provider provides credit by
accepting, drawing, discounting or indorsing a bill of
exchange or promissory note;
(c) the provision of credit by a pawnbroker in the ordinary
course of a pawnbroker’s business (being a business which is
being lawfully conducted by the pawnbroker);
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(d) the provision of credit by the trustee of the estate of a
deceased person by way of an advance to a beneficiary or
prospective beneficiary of the estate;
(e) the provision of credit by an employer, or a related body
corporate of an employer, to an employee or former
employee (whether or not it is provided to the employee or
former employee with another person);
(f) a mortgage:
(i) that secures obligations under a credit contract (other
than a lien or charge arising by operation of any law or
by custom); and
(ii) that is not a financial product mentioned in
paragraph 763A(1)(a) of the Act; and
(iii) that is not a financial product mentioned in
paragraph 764A(1)(a), (b), (ba), (f), (g), (h) or (j) of the
Act; and
(iv) that is not a financial product mentioned in
paragraph 764A(1)(i) of the Act, other than a product
the whole or predominant purpose of which is, or is
intended to be, the provision of credit;
(g) a guarantee related to a mortgage mentioned in paragraph (f);
(h) a guarantee of obligations under a credit contract.
(2) The provision of consumer credit insurance that includes a contract
of general insurance for the Insurance Contracts Act 1984 is not a
credit facility.
(2A) A litigation funding scheme mentioned in regulation 5C.11.01 is
not a credit facility.
(2B) A litigation funding arrangement mentioned in regulation 5C.11.01
is not a credit facility.
(3) In this regulation:
credit means a contract, arrangement or understanding:
(a) under which:
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(i) payment of a debt owed by one person (a debtor) to
another person (a credit provider) is deferred; or
(ii) one person (a debtor) incurs a deferred debt to another
person (a credit provider); and
(b) including any of the following:
(i) any form of financial accommodation;
(ii) a hire purchase agreement;
(iii) credit provided for the purchase of goods or services;
(iv) a contract, arrangement or understanding for the hire,
lease or rental of goods or services, other than a
contract, arrangement or understanding under which:
(A) full payment is made before or when the goods
or services are provided; and
(B) for the hire, lease or rental of goods—an
amount at least equal to the value of the goods
is paid as a deposit in relation to the return of
the goods;
(v) an article known as a credit card or charge card;
(vi) an article, other than a credit card or a charge card,
intended to be used to obtain cash, goods or services;
(vii) an article, other than a credit card or a charge card,
commonly issued to customers or prospective customers
by persons who carry on business for the purpose of
obtaining goods or services from those persons by way
of a loan;
(viii) a liability in respect of redeemable preference shares;
(ix) a financial benefit arising from or as a result of a loan;
(x) assistance in obtaining a financial benefit arising from
or as a result of a loan;
(xi) issuing, indorsing or otherwise dealing in a promissory
note;
(xii) drawing, accepting, indorsing or otherwise dealing in a
negotiable instrument (including a bill of exchange);
(xiii) granting or taking a lease over real or personal property;
(xiv) a letter of credit.
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7.1.06A Arrangements for certain financial products that are not
credit facilities
(1) This regulation applies in relation to a financial product that would
be a credit facility in accordance with regulation 7.1.06 if
subparagraphs 7.1.06(1)(a)(iv), (v) and (vi), and 7.1.06(1)(f)(ii),
(iii) and (iv) did not apply.
(2) For paragraph 761E(7)(a) of the Act, and in relation to the financial
product:
(a) the credit provider is not taken to be the issuer of the
financial product; and
(b) the debtor is taken to be the issuer of the financial product.
(3) For paragraph 766A(2)(b) of the Act, and in relation to the
financial product:
(a) the provision of financial product advice to the debtor, or the
debtor’s representative, is taken not to be the provision of a
financial service; and
(b) a dealing in the credit facility by the credit provider, or the
credit provider’s representative, is taken not to be the
provision of a financial service.
(4) In this regulation:
credit, credit provider and debtor have the same meanings as in
subregulation 7.1.06(3).
7.1.06B Specific things that are not financial products:
superannuation interests
For paragraph 765A(1)(q) of the Act, an exempt public sector
superannuation scheme within the meaning of the SIS Act is
prescribed.
7.1.07 Specific things that are not financial products: surety bonds
(1) This regulation applies to an arrangement between 2 persons
(person 1 and person 2) made in the following circumstances:
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(a) person 1 enters into the arrangement in order to meet a
requirement of another arrangement between person 1 and a
person other than person 2 (person 3);
(b) under the arrangement, person 2 undertakes to make a
payment to, or perform an obligation for the benefit of,
person 3 in circumstances specified as part of the
arrangement;
(c) under the arrangement, person 1 is liable to person 2 for any
payments made, or liabilities, costs or expenses incurred, by
person 2 in making the payment to, or performing the
obligation for the benefit of, person 3;
(d) the arrangement does not constitute a financial product under
section 764A of the Act, other than a derivative.
(2) For paragraph 765A(1)(y) of the Act, the arrangement is not a
financial product.
7.1.07A Specific things that are not financial products: rental
agreements
(1) This regulation applies to an arrangement between 2 persons
(person 1 and person 2) made in the following circumstances:
(a) person 1 leases or rents something from person 2;
(b) under the arrangement, person 1 makes a payment to person
2 to reduce the amount that person 1 would otherwise have to
pay to person 2 under the leasing or rental agreement;
(c) the payment relates to the event of an accident or other
eventuality affecting the thing that is being leased or rented.
Example: Collision damage waiver insurance for a rental car.
(2) For paragraph 765A(1)(y) of the Act, the arrangement is not a
financial product.
7.1.07B Specific things that are not financial products: bank drafts
For paragraph 765A(1)(y) of the Act, a bank draft, including (but
not limited to):
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(a) a cheque drawn by a financial institution on itself; or
(b) a cheque drawn by a financial institution on a financial
institution other than itself;
is not a financial product.
7.1.07C Specific things that are not financial products: insurance
under an overseas student health insurance contract
(1) For paragraph 765A(1)(y) of the Act, insurance under an overseas
student health insurance contract is not a financial product.
(2) In this regulation:
overseas student health insurance contract has the same meaning
as in regulation 48 of the National Health Regulations 1954.
7.1.07D Specific things that are not financial products: funeral
expenses policy
(1) For paragraph 765A(1)(y) of the Act, a funeral expenses policy is
not a financial product.
(2) In this regulation:
funeral expenses policy means a scheme or arrangement for the
provision of a benefit consisting of the payment of money, payable
only on the death of a person, for the sole purpose of meeting the
whole or part of the expenses of, and incidental to the person’s:
(a) funeral; and
(b) burial or cremation.
7.1.07E Specific things that are not financial products: rights of the
holder of a debenture
(1) This regulation applies to a facility that consists of the rights of the
holder of a debenture against a trustee under a trust deed entered
into under:
(a) section 283AA of the Act; or
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(b) Chapter 2L or Division 4 of Part 7.12 of the old Corporations
Law.
(2) For paragraph 765A(1)(y) of the Act, the facility is not a financial
product.
7.1.07F Specific things that are not financial products: money orders
For paragraph 765A(1)(y) of the Act, a money order issued as a
money order by, or for, Australia Post is not a financial product.
7.1.07G Specific things that are not financial products: electronic
funds transfers
For paragraph 765A(1)(y) of the Act, a non-cash payment facility
is not a financial product if:
(a) the issuer is:
(i) a body corporate that is an ADI (within the meaning of
the Banking Act 1959); or
(ii) an operator of a payment system; and
(b) under the facility, as instructed by the client, the issuer makes
money available (or causes it to be made available) to a
person nominated by the client:
(i) within 2 business days of receiving the client’s
instruction; or
(ii) within the time reasonably required to complete the
transaction subject to any constraints imposed by law;
and
(c) under the facility the funds are transferred by electronic
means for collection by, or for the credit of, the payer or
another person; and
(d) the issuer and the payer do not have a standing arrangement
to transfer funds in this manner.
Example: Telegraphic transfers and international money transfers offered by
banks and remittance dealers.
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7.1.07H Specific things that are not financial products: ACT
insurance
For paragraph 765A(1)(y) of the Act, Australian Capital Territory
insurance, including insurance entered into by the Australian
Capital Territory and another insurer as joint insurers, is not a
financial product.
7.1.07I Specific things that are not financial products—Australian
carbon credit units and eligible international emissions
units
(1) For paragraph 765A(1)(y) of the Act:
(a) an Australian carbon credit unit is not a financial product;
and
(b) an eligible international emissions unit is not a financial
product.
(2) On 1 July 2012:
(a) subregulation (1) ceases to apply; and
(b) Australian carbon credit units and eligible international
emissions units become financial products.
7.1.07J Specific things that are not financial products—carbon
abatement
For paragraph 765A(1)(y) of the Act, a carbon abatement contract
is declared not to be a financial product.
Note: For carbon abatement contract, see subregulation 1.0.02(1).
7.1.08 Meaning of financial product advice: exempt document or
statement
(1) For subparagraph (a)(ii) of the definition of exempt document or
statement in subsection 766B(9) of the Act, the following
documents and statements are prescribed (and so excluded from
the definition):
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(a) a Product Disclosure Statement that:
(i) contains personal advice; or
(ii) contains general advice about a financial product other
than a financial product to which the Statement relates;
(b) a Financial Services Guide that contains personal advice;
(c) a document or statement that would, but for this regulation,
be an exempt document or statement only because it is
prepared or given in accordance with section 1018A of the
Act;
(d) a record of advice mentioned in subsection 946B(3A) of the
Act.
(2) For subregulation (1), if a person:
(a) acquires a financial product (product 1); and
(b) will be able, by acquiring product 1, to give the product
issuer an instruction to acquire a particular financial product
or a financial product of a particular kind (within the
meaning of section 1012IA of the Act) under a custodial
arrangement (within the meaning of section 1012IA of the
Act);
the Product Disclosure Statement for product 1 is taken to relate to
the other financial product.
(3) For paragraph (b) of the definition of exempt document or
statement in subsection 766B(9) of the Act, documents,
information and statements that:
(a) do not contain personal advice; and
(b) are required by, and prepared as a result of, a requirement
under an Australian law; and
(c) are included in a class of documents, information or
statements specified by ASIC in a list published in the
Gazette for this subregulation;
are prescribed (and so included in the definition).
(4) For paragraph (b) of the definition of exempt document or
statement in subsection 766B(9) of the Act:
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(a) an assessment under subsection 985E(1) of the Act that a
margin lending facility will not be unsuitable for the person
to whom the margin lending facility is to be issued is
prescribed (and so excluded from the definition); and
(b) an assessment under subsection 985E(1) of the Act that a
margin lending facility whose limit is proposed to be
increased will not be unsuitable for the person for whom the
limit of the margin lending facility is to be increased is
prescribed (and so excluded from the definition).
Note: The effect of paragraph (b) of the definition of exempt document or
statement in subsection 766B(9), is that a prescribed document or
statement is an exempt document or statement.
7.1.08A Modification of section 766D of the Act—free carbon units
For paragraph 926B(1)(c) of the Act, Part 7.6 of the Act applies in
relation to free carbon units (within the meaning of the Clean
Energy Act 2011) as if section 766D of the Act were modified by
inserting after subsection 766D(2) the following subsection:
(3) A person who holds a free carbon unit (within the meaning of the
Clean Energy Act 2011) that has been issued to the person by the
Clean Energy Regulator is taken not to be making a market for a
financial product if the person states the price of the free carbon
unit.
7.1.09 Obligations related to clearing and settlement facility
(1) For paragraph 768A(1)(b) of the Act, the following obligations are
prescribed:
(a) each obligation arising from a contract to transfer a financial
product mentioned in paragraph 764A(1)(a) of the Act;
(b) each obligation arising from a contract to transfer a financial
product mentioned in paragraph 764A(1)(b) of the Act;
(c) each obligation arising from acquiring or providing a
financial product mentioned in paragraph 764A(1)(c) of the
Act;
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(d) each obligation arising from a contract to transfer a financial
product mentioned in paragraph 764A(1)(j) of the Act;
(e) each obligation arising from a contract to transfer a financial
product mentioned in paragraph 764A(1)(ba) of the Act;
(f) each obligation arising from a contract to transfer a financial
product mentioned in paragraph 764A(1)(k) of the Act;
(fa) each obligation arising from a contract to transfer a carbon
unit, an Australian carbon credit unit or an eligible
international emissions unit;
Note: See paragraphs 764A(1)(ka) and (kb) of the Act.
(g) each obligation arising from a contract to transfer a right that
includes an undertaking by a body to repay, as a debt, money
deposited with or lent to the body;
(h) each obligation arising from the entry into a repurchase
agreement.
(2) In this regulation, repurchase agreement means a repurchase
transaction, in relation to a financial product, entered into pursuant
to:
(a) The Bond Market Association and the International
Securities Market Association Global Master Repurchase
Agreement (known as the TBMA/ISMA Global Master
Repurchase Agreement); or
(b) another commonly used master agreement for repurchase
transactions.
7.1.10 Conduct that does not constitute operating a clearing and
settlement facility
(2) For paragraph 768A(2)(i) of the Act, the conduct of:
(a) National Stock Exchange of Australia Limited, or an agent of
that body; or
(b) a participant of the National Stock Exchange of Australia
Limited, or an agent of the participant; or
(c) Bendigo Stock Exchange Limited, or an agent of that body;
or
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(d) a participant of the Bendigo Stock Exchange Limited, or an
agent of the participant;
in operating a facility in accordance with the operating rules of a
licensed market does not constitute operating a clearing and
settlement facility if the requirements of subregulation (3) are met.
(3) For subregulation (2), the requirements are:
(a) the market licensee must have, and must be responsible for
enforcing, operating rules that apply to a participant of the
licensed market in relation to the participant’s obligations
arising from transactions carried out on the licensed market;
and
(b) a participant mentioned in paragraph (a), or an agent of the
participant appointed in accordance with the operating rules
of the licensed market, must be responsible for fulfilling the
obligations owed to another participant or agent arising from
transactions carried out on the licensed market; and
(c) the market licensee is not the operator of any other clearing
and settlement facility; and
(d) each participant of the licensed market is not the operator of
any other clearing and settlement facility; and
(e) each agent of a participant of the licensed market is not the
operator of any other clearing and settlement facility.
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Chapter 7 Financial services and markets
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Regulation 7.1.11
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Division 2—Retail clients and wholesale clients
7.1.11 Meaning of retail client and wholesale client: motor vehicle
insurance product
(1) For subparagraph 761G(5)(b)(i) of the Act, a motor vehicle
insurance product is a contract or part of a contract that provides
insurance cover (whether or not the cover is limited or restricted in
any way) in respect of one or more of the following:
(a) loss of, or damage to, a motor vehicle;
(b) liability for loss of, or damage to, property caused by or
resulting from impact of a motor vehicle with some other
thing.
(2) A motor vehicle insurance product does not include:
(a) insurance to or in relation to which the Marine Insurance Act
1909 applies; or
(b) insurance entered into, or proposed to be entered into, for the
purposes of a law (including a law of a State or Territory)
that relates to:
(i) workers’ compensation; or
(ii) compulsory third party compensation.
(3) In this regulation:
motor vehicle means a vehicle that is designed:
(a) to travel by road; and
(b) to use volatile spirit, steam, gas, oil, electricity or any other
power (not being human power or animal power) as its
principal means of propulsion; and
(c) to carry passengers;
and includes a motor cycle.
(4) However, a motor vehicle does not include:
(a) an omnibus; or
(b) a tram; or
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(c) a motor vehicle the carrying capacity of which exceeds 2
tonnes.
7.1.12 Meaning of retail client and wholesale client: home building
insurance product
(1) For subparagraph 761G(5)(b)(ii) of the Act, a home building
insurance product is a contract or part of a contract that provides
insurance cover (whether or not the cover is limited or restricted in
any way) in respect of destruction of or damage to a home
building.
(2) A home building insurance product does not include insurance
entered into, or proposed to be entered into, for the purposes of a
law (including a law of a State or Territory) that relates to building
or construction work in relation to a home building.
(3) In this regulation:
home building means:
(a) a building used, or intended to be used, principally and
primarily as a place of residence; and
(b) out-buildings, fixtures and structural improvements used for
domestic purposes, being purposes related to the use of the
principal residence;
on the site and, without limiting the generality of the expression,
includes:
(c) fixed wall coverings, fixed ceiling coverings and fixed floor
coverings (other than carpets); and
(d) services (whether underground or not) that are the property of
the insured or that the insured is liable to repair or replace or
pay the cost of repairing and replacing; and
(e) fences and gates wholly or partly on the site.
site, in relation to a building, means the site specified in the
relevant contract of insurance as the site on which the building is
situated.
(4) A home building does not include:
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(a) a hotel; or
(b) a motel; or
(c) a boarding house; or
(d) a building that:
(i) is in the course of construction; and
(ii) is being constructed by the insured, or an intending
insured, in the course of a construction business; or
(e) a temporary building or structure or a demountable or
moveable structure; or
(f) a caravan (whether fixed to the site or not).
7.1.13 Meaning of retail client and wholesale client: home contents
insurance product
(1) For subparagraph 761G(5)(b)(iii) of the Act, a home contents
insurance product is a contract or part of a contract that provides
insurance cover (whether or not the cover is limited or restricted in
any way) in respect of loss of or damage to the contents of a
residential building.
(2) A home contents insurance product does not include:
(a) insurance to or in relation to which the Marine Insurance Act
1909 applies; or
(b) insurance entered into, or proposed to be entered into, for the
purposes of a law (including a law of a State or Territory)
that relates to:
(i) workers’ compensation; or
(ii) compulsory third party compensation.
(3) In this regulation:
contents, in relation to a residential building, means any of the
following items:
(a) furniture, furnishings and carpets (whether fixed or unfixed);
(b) household goods;
(c) clothing and other personal effects;
(d) a picture;
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(e) a work of art;
(f) a fur;
(g) a piece of jewellery;
(h) a gold or silver article;
(i) a document of any kind;
(j) a collection of any kind;
(k) swimming pools that:
(i) are not fixtures; and
(ii) are owned by the insured or by a member of the
insured’s family ordinarily residing with the insured;
but does not include an article or thing to which the
definition of residential building applies.
residential building means:
(a) a building used principally and primarily as a place of
residence on the site; and
(b) out-buildings used for domestic purposes, being purposes
related to the use of the principal residence on the site.
(4) A residential building does not include:
(a) a hotel; or
(b) a motel; or
(c) a boarding house; or
(d) a building that is in the course of construction; or
(e) a temporary building or structure or a demountable or
moveable structure.
7.1.14 Meaning of retail client and wholesale client: sickness and
accident insurance product
(1) For subparagraph 761G(5)(b)(iv) of the Act, a sickness and
accident insurance product is a contract or part of a contract that
has either of the following characteristics:
(a) the contract provides insurance cover (whether the cover is
limited or restricted in any way) in respect of the insured
person contracting a sickness or disease or a specified
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sickness or disease or sustaining an injury or a specified
injury;
(b) if the insured person dies as a result of the sickness, disease
or injury, the contract provides insurance cover (whether the
cover is limited or restricted in any way) in respect of the
death.
(2) A sickness and accident insurance product does not include:
(a) sickness and accident policies which are guaranteed
‘renewable’ at the option of the insured or where the insurer
guarantees not to cancel the policy in response to a change in
the risk where such a policy has been effected for a
predetermined period of years in excess of 1 year; or
(b) insurance to or in relation to which the Marine Insurance Act
1909 applies; or
(c) insurance entered into, or proposed to be entered into, for the
purposes of a law (including a law of a State or Territory)
that relates to:
(i) workers’ compensation; or
(ii) compulsory third party compensation; or
(d) insurance that:
(i) provides cover for the death of, or injury to, a driver of a
motor vehicle which is caused by the fault of that person
when driving; and
(ii) is provided only in conjunction with, and at no extra
cost to, insurance mentioned in subparagraph (c)(ii).
Note: See also regulation 7.9.14B.
7.1.15 Meaning of retail client and wholesale client: consumer credit
insurance product
(1) For subparagraph 761G(5)(b)(v) of the Act, a consumer credit
insurance product is a contract or part of a contract that has the
following characteristics:
(a) the contract provides insurance cover (whether the cover is
limited or restricted in any way) in respect of:
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(i) the death of the insured person; or
(ii) the insured person contracting a sickness or disease; or
(iii) the insured person sustaining an injury; or
(iv) the insured person becoming unemployed;
(b) the amount of the liability of the insurer under the contract is
to be ascertained by reference to a liability of the insured
person under a specified agreement to which the insured
person is a party.
(2) A consumer credit insurance product does not include:
(a) insurance to or in relation to which the Marine Insurance Act
1909 applies; or
(b) insurance entered into, or proposed to be entered into, for the
purposes of a law (including a law of a State or Territory)
that relates to:
(i) workers’ compensation; or
(ii) compulsory third party compensation.
7.1.16 Meaning of retail client and wholesale client: travel insurance
product
(1) For subparagraph 761G(5)(b)(vi) of the Act, a travel insurance
product is a contract or part of a contract that provides insurance
cover (whether or not the cover is limited or restricted in any way)
in respect of one or more of the following:
(a) financial loss in respect of:
(i) fares for any form of transport to be used; or
(ii) accommodation to be used;
in the course of the specified journey in the event that the
insured person does not commence or complete the specified
journey;
(b) loss of or damage to personal belongings that occurs while
the insured person is on the specified journey;
(c) a sickness or disease contracted or an injury sustained by the
insured person while on the specified journey;
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(d) loss, damage or compensation for an event occurring to the
insured person during a specified journey that ordinarily
forms a part of insurance commonly regarded as travel
insurance, including
(i) loss of cash or credit cards; and
(ii) legal liability; and
(iii) hijack; and
(iv) kidnap; and
(v) ransom.
(2) A travel insurance product does not include:
(a) insurance to or in relation to which the Marine Insurance Act
1909 applies; or
(b) insurance entered into, or proposed to be entered into, for the
purposes of a law (including a law of a State or Territory)
that relates to:
(i) workers’ compensation; or
(ii) compulsory third party compensation.
(3) In this regulation:
specified journey means a journey in relation to which insurance
cover is provided by the contract.
7.1.17 Meaning of retail client and wholesale client: personal and
domestic property insurance product
(1) For subparagraph 761G(5)(b)(vii) of the Act, a personal and
domestic property insurance product is a contract or part of a
contract that provides insurance cover (whether or not the cover is
limited or restricted in any way) in respect of loss or damage to
property that is:
(a) wholly or predominantly used for personal, domestic or
household purposes by:
(i) the insured; or
(ii) a relative of the insured; or
(iii) any person with whom the insured resides; and
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(b) ordinarily used for that purpose.
(2) A personal and domestic property insurance product does not
include:
(a) insurance to or in relation to which the Marine Insurance Act
1909 applies; or
(b) insurance entered into, or proposed to be entered into, for the
purposes of a law (including a law of a State or Territory)
that relates to:
(i) workers’ compensation; or
(ii) compulsory third party compensation.
(3) In this regulation:
property includes any of the following:
(a) moveables;
(b) valuables;
(c) a caravan or mobile home;
(d) an on-site mobile home;
(e) a trailer;
(f) a marine pleasure craft;
(g) a horse;
(h) a domestic pet;
(i) a mobile phone.
relative means any of the following relatives of an insured person:
(a) mother;
(b) step-mother;
(c) father;
(d) step-father;
(e) brother;
(f) half-brother;
(g) sister;
(h) half-sister;
(i) spouse (including defacto spouse);
(j) son;
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Regulation 7.1.17A
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(k) step-son;
(l) adopted son;
(m) daughter;
(n) step-daughter;
(o) adopted daughter;
(p) grandparent;
(q) grandchild;
(r) nephew;
(s) niece;
(t) uncle;
(u) aunt;
(v) mother-in-law;
(w) father-in-law.
(4) For paragraph (1)(a), property is taken to be wholly or
predominantly used for personal, domestic or household purposes
if the insured gives the insurer a statement, before the insurance
product is issued, that the property is intended to be used wholly or
predominantly for 1 or more of those purposes.
7.1.17A General insurance products: medical indemnity insurance
products
For subparagraph 761G(5)(b)(viii) of the Act, a medical indemnity
insurance product is prescribed.
7.1.17B Retail clients and wholesale clients: aggregation of amounts
for price or value of financial product
(1) For paragraph 761G(10)(a) of the Act, this regulation applies in
relation to a class of financial products that:
(a) are provided by the same product issuer to:
(i) a particular person; or
(ii) an associate of the person; or
(iii) a body corporate controlled and wholly owned by the
person; and
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(b) are provided at or about the same time.
(2) The price for the provision of the financial products may be
calculated by:
(a) calculating the total price for the provision of all of the
financial products in the class; and
(b) treating the total price as the price for the provision to the
particular person of a single financial product.
(3) The value of the financial products may be calculated by:
(a) calculating the total value of all of the financial products in
the class; and
(b) treating the total value as the value of a single financial
product provided to the particular person.
7.1.17C Retail clients: traditional trustee company services
For subsection 761G(6A) of the Act, a traditional trustee company
service is not provided to a person as a retail client if:
(a) the service is provided to the person for use in relation to a
business that is not a small business; or
(b) the person to whom the service is provided is a professional
investor.
Note: Small business is defined in subsection 761G(12) of the Act and
professional investor is defined in section 9 of the Act.
7.1.18 Retail clients and wholesale clients: price of investment-based
financial products
(1) This regulation makes arrangements about the price for the
provision of an investment-based financial product.
Note: Under paragraph 761G(7)(a) of the Act, if a financial product is not,
or a financial service provided to a person does not relate to, a general
insurance product, a superannuation product or an RSA product, the
financial product or financial service is provided to the person as a
retail client unless the price for the provision of the financial product,
or the value of the financial product to which the financial service
relates, equals or exceeds the amount specified in regulations made for
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Regulation 7.1.18
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the purposes of that paragraph as being applicable in the
circumstances.
Under paragraph 761G(10)(a) of the Act, the regulations may also
deal with how a price or value referred to in that paragraph is to be
calculated, either generally or in relation to a specified class of
financial products.
In general, the ‘price’ of a product will be the amount that is paid to
acquire or be issued with the financial product. The test for the price
of the product in paragraph 761G(7)(a) of the Act will be determined
at or before the time the client acquires, or is issued with, the financial
product. If a client pays over $500 000 to acquire or be issued with the
financial product, the client will be a wholesale client in respect of the
product.
Price
(2) For paragraph 761G(7)(a) of the Act, the amount applicable in
relation to an investment-based financial product is $500 000.
Working out price: general rule
(3) For paragraph 761G(10)(a) of the Act, the price of an
investment-based financial product:
(a) is the amount that is paid or payable to acquire or purchase
the investment-based financial product; and
(b) does not include any amount paid for or in respect of the
investment-based financial product following its issue or
acquisition unless the issue or acquisition would not have
taken place without an arrangement to pay the amount.
Note: An amount deposited in a deposit account will not generally be
regarded as part of the ‘price’ paid to acquire or purchase the financial
product.
(4) For subregulation (3), in calculating any amount payable or paid to
acquire or purchase the investment-based financial product:
(a) disregard any amount payable to the extent to which it is to
be paid out of money lent by:
(i) the person offering the investment-based financial
product; or
(ii) an associate of that person; and
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(b) disregard any amount paid to the extent to which it was paid
out of money lent by:
(i) the person offering the investment-based financial
product; or
(ii) an associate of that person; and
(c) include any amount paid or payable to cover:
(i) fees or charges that are paid to the issuer or any other
person that relates to the issue of the investment-based
financial product; and
(ii) fees or charges that are paid to the issuer or any other
person that relates to the issue of the investment-based
financial product; and
(d) despite paragraph (c), disregard any amount of remuneration
or other benefits paid or payable to a person for the provision
of financial product advice or other related services provided
directly to:
(i) the client; or
(ii) another person acting on behalf of the client.
Group products
(5) If the investment-based financial product is a group product
covered by section 1012H of the Act:
(a) the amount in subregulation (2) is to be used to determine the
status of each person who elects, or may elect, to be covered
by the investment-based financial product; and
(b) subregulation (3) is to be used to determine the amount to be
paid for the person to be covered by the investment-based
financial product.
7.1.19 Retail clients and wholesale clients: value of investment-based
financial products
(1) This regulation makes arrangements about the value of an
investment-based financial product to which a financial service
relates.
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Regulation 7.1.19
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Note: Under paragraph 761G(7)(a) of the Act, if a financial product is not,
or a financial service provided to a person does not relate to, a general
insurance product, a superannuation product or an RSA product, the
financial product or financial service is provided to the person as a
retail client unless the price for the provision of the financial product,
or the value of the financial product to which the financial service
relates, equals or exceeds the amount specified in regulations made for
the purposes of that paragraph as being applicable in the
circumstances.
Under paragraph 761G(10)(a) of the Act, the regulations may also
deal with how a price or value referred to in that paragraph is to be
calculated, either generally or in relation to a specified class of
financial products.
In general, the ‘value’ of a product will be the amount that the product
is worth once it is issued or acquired by the client. It is anticipated that
the test for the value of the product in paragraph 761G(7)(a) of the Act
will usually be used to assess a client’s status as a retail or wholesale
client at or before the time that a financial service (eg financial
product advice, disposal of the product) is provided to the client in
respect of an existing product.
Value
(2) For paragraph 761G(7)(a) of the Act, the amount applicable in
relation to an investment-based financial product is $500 000.
Working out value: general rule
(3) For paragraph 761G(10)(a) of the Act, the value of an
investment-based financial product on a day is:
(a) if the financial product is a security, or a financial product
under paragraph 764A(1)(j) of the Act—the market value of
the investment-based financial product; or
(b) if paragraph (a) does not apply—the amount of money that
stands to the client’s credit in relation to that
investment-based financial product.
(4) For subregulation (3), in calculating the value of an
investment-based financial product:
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(a) disregard any amount standing to the client’s credit in
relation to the investment-based financial product to the
extent that it is to be paid, or was paid, out of money lent by:
(i) the person offering the investment-based financial
product; or
(ii) an associate of that person; and
(b) disregard any amount of fees or charges:
(i) that the product issuer has an actual or accrued right to
deduct, or otherwise to have access to, from the value of
the investment-based financial product (whether or not
the amount has been deducted); or
(ii) that has accrued as at the time that the client’s status as
a retail or wholesale client is assessed.
Cumulative value of products
(5) If, at a single point in time:
(a) a financial service that is being provided to a client is:
(i) financial product advice; or
(ii) arranging for a person to engage in conduct in
accordance with subsection 766C(2) of the Act; and
(b) the financial service is provided in respect of:
(i) more than 1 investment-based financial product; or
(ii) more than 1 income financial stream financial product;
or
(iii) a combination of investment-based financial products
and income financial stream financial products; and
(c) either:
(i) the total price for the provision of those financial
products is at least $500 000; or
(ii) the price or value of all of those financial products is at
least $500 000;
the value of the financial products is taken, for subregulation (3), to
be greater than the amount mentioned in subregulation (2).
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Regulation 7.1.19
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(6) Subregulation (5) does not affect the operation of Part 7.9 of the
Act, and Part 7.9 of these Regulations, to the extent that they
require the provision of a Product Disclosure Statement in relation
to the financial product advice.
Note: Although the effect of subregulation (5) is that the value of the
investment-based financial products is taken to be at least $500 000 in
the circumstances mentioned in that subregulation, a client must still
be provided with appropriate product disclosure and other
requirements in accordance with Part 7.9 of the Act as a retail client in
relation to a particular investment-based financial product where the
price of the product is less than $500 000.
In any situation in which a Product Disclosure Statement would be
required for a retail client (the situations described in Subdivision B of
Division 2 of Part 7.9 of the Act), the limit of $500 000 must be
reached for any single investment-based financial product, or income
stream financial product, before the client will be treated as a
wholesale client.
Group products
(7) If the investment-based financial product is a group product
covered by subsection 1012H(1) of the Act:
(a) the amount in subregulation (2) is to be used to determine the
status of each person who elects, or may elect, to be covered
by the investment-based financial product; and
(b) subregulation (3) is to be used to determine the value of the
investment-based financial product to the extent that it
stands, or will stand, to the credit of, each person who elects,
or may elect, to be covered by the investment-based financial
product.
Time of assessment
(8) If a financial services provider needs to assess the status of a client
as either retail or wholesale at a particular time in order to ensure
that the client complies with the Act, or for any related purpose, the
value of a financial product may be assessed at any time, whether
or not a financial service is being provided at that time in relation
to that product.
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Note: Subregulation (8) will ensure that a provider of financial services may
assess a client’s status at any time (for example, the provider may
need to ascertain whether a periodic statement must be sent to the
client under section 1017D of the Act because the client is a retail
client).
7.1.19A Retail clients and wholesale clients: price of margin lending
facilities
(1) This regulation makes arrangements about the price for the
provision of a margin lending facility, or a margin lending facility
whose limit is proposed to be increased, within the meaning of
subsection 761EA(1) of the Act.
Note: Under paragraph 761G(7)(a) of the Act, if a financial product is not,
or a financial service provided to a person does not relate to, a general
insurance product, a superannuation product or an RSA product, the
financial product or financial service is provided to the person as a
retail client unless the price for the provision of the financial product,
or the value of the financial product to which the financial service
relates, equals or exceeds the amount specified in regulations made for
the purposes of that paragraph as being applicable in the
circumstances.
Under paragraph 761G(10)(a) of the Act, the regulations may also
deal with how a price or value referred to in that paragraph is to be
calculated, either generally or in relation to a specified class of
financial products.
In general, the ‘price’ of a product will be the amount that is paid to
acquire or be issued with the financial product. The test for the price
of the product in paragraph 761G(7)(a) of the Act will be determined
at or before the time the client acquires, or is issued with, the financial
product. If a client pays $500 000 or more to acquire or be issued with
the financial product, the client will be a wholesale client in respect of
the product.
Price
(2) For paragraph 761G(7)(a) of the Act, the amount applicable in
relation to the margin lending facility is $500 000.
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Regulation 7.1.20
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Working out price
(3) For paragraph 761G(10)(a) of the Act, the price of a margin
lending facility is to be worked out so that it is the same as the
value of the secured property or transferred securities contributed
by the client for establishing the facility.
(4) For paragraph 761G(10)(a) of the Act, the price of a margin
lending facility whose limit is proposed to be increased is to be
worked out so that it is the sum of:
(a) the current value of any secured property or transferred
securities previously contributed by a client for establishing
the facility or increasing the limit; and
(b) the value of any additional secured property or transferred
securities contributed by the client in relation to the latest
increase of the limit of the facility.
(5) For subregulations (3) and (4), any secured property or transferred
securities contributed by the client that is funded by borrowings
from a third party is not to be taken into consideration when
working out the price of a margin lending facility.
7.1.20 Retail clients and wholesale clients: price of income stream
financial products
(1) This regulation makes arrangements about the price for the
provision of an income stream financial product.
Note: Under paragraph 761G(7)(a) of the Act, if a financial product is not,
or a financial service provided to a person does not relate to, a general
insurance product, a superannuation product or an RSA product, the
financial product or financial service is provided to the person as a
retail client unless the price for the provision of the financial product,
or the value of the financial product to which the financial service
relates, equals or exceeds the amount specified in regulations made for
the purposes of that paragraph as being applicable in the
circumstances.
Under paragraph 761G(10)(a) of the Act, the regulations may also
deal with how a price or value referred to in that paragraph is to be
calculated, either generally or in relation to a specified class of
financial products.
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Financial services and markets Chapter 7
Preliminary Part 7.1
Retail clients and wholesale clients Division 2
Regulation 7.1.20
Corporations Regulations 2001 37
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
In general, the ‘price’ of a product will be the amount that is paid to
acquire or be issued with the financial product. The test for the price
of the product in paragraph 761G(7)(a) of the Act will be determined
at or before the time the client acquires, or is issued with, the financial
product. If a client pays over $500 000 to acquire or be issued with the
financial product, the client will be a wholesale client in respect of the
product.
Price
(2) For paragraph 761G(7)(a) of the Act, the amount applicable in
relation to an income stream financial product is $500 000.
Working out price: general rule
(3) The price of an income stream financial product:
(a) is the amount that is paid or payable to acquire or purchase
the income stream financial product; and
(b) does not include any amount paid for or in respect of the
income stream financial product following its issue or
acquisition unless the issue or acquisition would not have
taken place without an arrangement to pay the amount.
Note: Additional amounts contributed to an allocated annuity will not
generally be regarded as part of the ‘price’ paid to acquire or purchase
the financial product.
(4) For subregulation (3), in calculating any amount payable or paid to
acquire or purchase the income stream financial product:
(a) disregard any amount payable to the extent to which it is to
be paid out of money lent by:
(i) the person offering the income stream financial product;
or
(ii) an associate of that person; and
(b) disregard any amount paid to the extent to which it was paid
out of money lent by:
(i) the person offering the income stream financial product;
or
(ii) an associate of that person; and
(c) include any amount paid or payable to cover:
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Chapter 7 Financial services and markets
Part 7.1 Preliminary
Division 2 Retail clients and wholesale clients
Regulation 7.1.21
38 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) fees or charges that are paid to the issuer or any other
person that relates to the issue of the income stream
financial product; and
(ii) fees or charges that are paid to the issuer or any other
person that relates to the issue of the income stream
financial product; and
(d) despite paragraph (c), disregard any amount of remuneration
or other benefits paid or payable to a person for the provision
of financial product advice or other related services provided
directly to:
(i) the client; or
(ii) another person acting on behalf of the client.
7.1.21 Retail clients and wholesale clients: value of income stream
financial products
(1) This regulation makes arrangements about the value of an income
stream financial product.
Note: Under paragraph 761G(7)(a) of the Act, if a financial product is not,
or a financial service provided to a person does not relate to, a general
insurance product, a superannuation product or an RSA product, the
financial product or financial service is provided to the person as a
retail client unless the price for the provision of the financial product,
or the value of the financial product to which the financial service
relates, equals or exceeds the amount specified in regulations made for
the purposes of that paragraph as being applicable in the
circumstances.
Under paragraph 761G(10)(a) of the Act, the regulations may also
deal with how a price or value referred to in that paragraph is to be
calculated, either generally or in relation to a specified class of
financial products.
In general, the ‘value’ of a product will be the amount that the product
is worth once it is issued or acquired by the client. It is anticipated that
the test for the value of the product in paragraph 761G(7)(a) of the Act
will usually be used to assess a client’s status as a retail or wholesale
client at or before the time that a financial service (eg financial
product advice, disposal of the product) is provided to the client in
respect of an existing product.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Preliminary Part 7.1
Retail clients and wholesale clients Division 2
Regulation 7.1.21
Corporations Regulations 2001 39
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Value
(2) For paragraph 761G(7)(a) of the Act, the amount applicable in
relation to an income stream financial product is $500 000.
Working out value: general rule
(3) For paragraph 761G(10)(a) of the Act, the value of an income
stream product is the amount worked out in accordance with any of
the following paragraphs:
(a) if the terms of the income stream financial product provide
for the calculation of a commutation value—the
commutation value;
(b) if the terms of the income stream financial product do not
permit commutation—the minimum commutation amount
calculated in accordance with ordinarily accepted actuarial
standards;
(c) if the income stream financial product is of a kind in relation
to which money stands to the client’s credit for the income
stream financial product—the amount of money standing to
the client’s credit.
(4) For subregulation (3), in calculating the value of an income stream
financial product:
(a) disregard any amount standing to the client’s credit in
relation to the income stream financial product to the extent
that it is to be paid, or was to be paid, out of money lent by:
(i) the person offering the income stream financial product;
or
(ii) an associate of that person; and
(b) disregard any amount of fees or charges:
(i) that the product issuer has an actual or accrued right to
deduct from the value of the income stream financial
product (whether or not the amount has been deducted);
or
(ii) that has accrued as at the time that the client’s status as
a retail or wholesale client is assessed.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.1 Preliminary
Division 2 Retail clients and wholesale clients
Regulation 7.1.21
40 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(5) If it is not reasonably practicable to ascertain an amount in
accordance with subregulation (3), the value of the income stream
product is an amount calculated as follows:
(a) identify the price for the provision of the income stream;
(b) subtract the total of any amounts paid out of the income
stream (including any regular payments and any capital
amounts);
(c) subtract an amount representing the reasonable
administrative fees or other expenses of the issuer (including
any costs or fees relating to the product that were disclosed to
the client at or before the time the product was issued);
(d) add interest on:
(i) the amount paid for the income stream financial
product; or
(ii) an amount, or a reasonable notional amount,
representing the value of the income stream financial
product;
based on movements in the rate of the All Groups Consumer
Price Index number (being the weighted average of the 8
Australian capital cities) published by the Australian
Statistician.
Group products
(6) If the income stream financial product is a group product covered
by subsection 1012H(1) of the Act:
(a) the amount in subregulation (2) is to be used to determine the
status of each person who elects, or may elect, to be covered
by the income stream financial product; and
(b) subregulation (3) is to be used to determine the value of the
income stream financial product to the extent that it stands,
or will stand, to the credit of, each person who elects, or may
elect, to be covered by the income stream financial product.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Preliminary Part 7.1
Retail clients and wholesale clients Division 2
Regulation 7.1.22
Corporations Regulations 2001 41
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Time of assessment
(7) If a financial services provider needs to assess the status of a client
as either retail or wholesale at a particular time in order to ensure
that the client complies with the Act, or for any related purpose, the
value of a financial product may be assessed at any time, whether
or not a financial service is being provided at that time in relation
to that product.
Note: Subregulation (7) will ensure that a provider of financial services may
assess a client’s status at any time (for example, the provider may
need to ascertain whether a periodic statement must be sent to the
client under section 1017D of the Act because the client is a retail
client).
7.1.22 Retail clients and wholesale clients: value of derivatives
(1) This regulation makes arrangements about the value of a
derivative:
(a) that is a financial product under section 761A of the Act; and
(b) to which section 765A of the Act does not apply.
Note: Under paragraph 761G(7)(a) of the Act, if a financial product is not,
or a financial service provided to a person does not relate to, a general
insurance product, a superannuation product or an RSA product, the
financial product or financial service is provided to the person as a
retail client unless the price for the provision of the financial product,
or the value of the financial product to which the financial service
relates, equals or exceeds the amount specified in regulations made for
the purposes of that paragraph as being applicable in the
circumstances.
Under paragraph 761G(10)(a) of the Act, the regulations may also
deal with how a price or value referred to in that paragraph is to be
calculated, either generally or in relation to a specified class of
financial products.
Value
(2) For paragraph 761G(7)(a) of the Act:
(a) the amount applicable in relation to a single derivative is
$500 000; and
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Chapter 7 Financial services and markets
Part 7.1 Preliminary
Division 2 Retail clients and wholesale clients
Regulation 7.1.22A
42 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) if the derivative is included in 2 or more related financial
products, the amount applicable in relation to the related
financial products is $500 000.
Working out value: general rule
(3) For paragraph 761G(10)(a) of the Act, the value of a derivative is
the face value, or the notional amount in respect of, the financial
product (in dollar terms) as at the date on which the relevant
arrangement is entered into by the parties.
Time of assessment
(4) If a financial services provider needs to assess the status of a client
as either retail or wholesale at a particular time in order to ensure
that the client complies with the Act, or for any related purpose, the
value of a financial product may be assessed at any time, whether
or not a financial service is being provided at that time in relation
to that product.
Note: Subregulation (4) will ensure that a provider of financial services may
assess a client’s status at any time (for example, the provider may
need to ascertain whether ongoing disclosure of a significant event
must be sent to the client under section 1017B of the Act because the
client is a retail client).
7.1.22A Retail clients and wholesale clients: value of foreign
exchange contracts
(1) This regulation makes arrangements about the value of a foreign
exchange contract that is not a derivative.
Value
(2) For paragraph 761G(7)(a) of the Act, the amount applicable to a
foreign exchange contract is $500 000.
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Financial services and markets Chapter 7
Preliminary Part 7.1
Retail clients and wholesale clients Division 2
Regulation 7.1.23
Corporations Regulations 2001 43
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Working out value: general rule
(3) For paragraph 761G(10)(a) of the Act, the value of a foreign
exchange contract is the amount paid or payable under the foreign
exchange contract.
7.1.23 Retail clients and wholesale clients: price of non-cash payment
financial products
(1) This regulation makes arrangements about the price for the
provision of a non-cash payment financial product.
Note: Under paragraph 761G(7)(a) of the Act, if a financial product is not,
or a financial service provided to a person does not relate to, a general
insurance product, a superannuation product or an RSA product, the
financial product or financial service is provided to the person as a
retail client unless the price for the provision of the financial product,
or the value of the financial product to which the financial service
relates, equals or exceeds the amount specified in regulations made for
the purposes of that paragraph as being applicable in the
circumstances.
In general, the ‘price’ of a product will be the amount that is paid to
acquire or be issued with the financial product. The test for the price
of the product in paragraph 761G(7)(a) of the Act will be determined
at or before the time the client acquires, or is issued with, the financial
product. If a client pays over $500 000 to acquire or be issued with the
financial product, the client will be a wholesale client in respect of the
product.
Price
(2) For paragraph 761G(7)(a) of the Act, the amount applicable in
relation to a non-cash payment financial product is $500 000.
Working out price: general rule
(3) The price of a non-cash payment financial product:
(a) is the amount that is paid or payable to acquire or purchase
the non-cash payment financial product; and
(b) does not include any amount paid for or in respect of the
non-cash payment financial product following its issue or
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Chapter 7 Financial services and markets
Part 7.1 Preliminary
Division 2 Retail clients and wholesale clients
Regulation 7.1.24
44 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
acquisition unless the issue or acquisition would not have
taken place without an arrangement to pay the amount.
Note: Additional amounts paid into a smart card or cheque account after its
issue will not generally be regarded as part of the ‘price’ paid to
acquire or purchase the financial product.
(4) For subregulation (3), in calculating any amount payable or paid to
acquire or purchase the non-cash payment financial product:
(a) include any amount paid or payable to cover:
(i) fees or charges that are paid to the issuer or any other
person that relates to the issue of the non-cash payment
financial product; and
(ii) fees or charges that are paid to the issuer or any other
person that relates to the issue of the non-cash payment
financial product; and
(b) despite paragraph (a), disregard any amount of remuneration
or other benefits paid or payable to a person for the provision
of financial product advice or other related services provided
directly to:
(i) the client; or
(ii) another person acting on behalf of the client.
7.1.24 Retail clients and wholesale clients: value of non-cash
payment products
(1) This regulation makes arrangements about the value of a non-cash
payment financial product to which a financial service relates.
Note: Under paragraph 761G(7)(a) of the Act, if a financial product is not,
or a financial service provided to a person does not relate to, a general
insurance product, a superannuation product or an RSA product, the
financial product or financial service is provided to the person as a
retail client unless the price for the provision of the financial product,
or the value of the financial product to which the financial service
relates, equals or exceeds the amount specified in regulations made for
the purposes of that paragraph as being applicable in the
circumstances.
In general, the ‘value’ of a product will be the amount that the product
is worth once it is issued or acquired by the client. It is anticipated that
the test for the value of the product in paragraph 761G(7)(a) of the Act
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Preliminary Part 7.1
Retail clients and wholesale clients Division 2
Regulation 7.1.24
Corporations Regulations 2001 45
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
will usually be used to assess a client’s status as a retail or wholesale
client at or before the time that a financial service (eg financial
product advice, disposal of the product) is provided to the client in
respect of an existing product.
Value
(2) For paragraph 761G(7)(a) of the Act, the amount applicable in
relation to a non-cash payment financial product is $500 000.
Working out value: general rule
(3) For paragraph 761G(10)(a) of the Act, the value of a non-cash
payment financial product on a day is the amount of money that
stands to the client’s credit in respect of that product.
(4) For subregulation (3), in calculating an amount of money,
disregard any amount of fees or charges:
(a) that the product issuer has an actual or accrued right to
deduct, or otherwise to have access to, from the value of the
non-cash payment financial product (whether or not the
amount has been deducted); or
(b) that has accrued as at the time that the client’s status as a
retail or wholesale client is assessed.
Time of assessment
(5) If a financial services provider needs to assess the status of a client
as either retail or wholesale at a particular time in order to ensure
that the client complies with the Act, or for any related purpose, the
value of a financial product may be assessed at any time, whether
or not a financial service is being provided at that time in relation
to that product.
Note: Subregulation (5) will ensure that a provider of financial services may
assess a client’s status at any time (for example, the provider may
need to ascertain whether ongoing disclosure of a significant event
must be sent to the client under section 1017B of the Act because the
client is a retail client).
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.1 Preliminary
Division 2 Retail clients and wholesale clients
Regulation 7.1.25
46 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.1.25 Retail clients and wholesale clients: life risk insurance and
other risk-based financial products
(1) This regulation makes arrangements about the value of a risk-based
financial product.
(2) Paragraph 761G(7)(a) of the Act does not apply to a risk-based
financial product.
Note: Under paragraph 761G(7)(a) of the Act, if a financial product is not,
or a financial service provided to a person does not relate to, a general
insurance product, a superannuation product or an RSA product, the
financial product or financial service is provided to the person as a
retail client unless the price for the provision of the financial product,
or the value of the financial product to which the financial service
relates, equals or exceeds the amount specified in regulations made for
the purposes of that paragraph as being applicable in the
circumstances.
Under paragraph 761G(10)(a) of the Act, the regulations may also
deal with how a price or value referred to in that paragraph is to be
calculated, either generally or in relation to a specified class of
financial products.
Under paragraph 761G(10)(b) of the Act, the regulations may also
modify the way in which paragraph 761G(7)(a) applies in particular
circumstances.
7.1.26 Superannuation-sourced money
For the purpose of assessing the price of a financial product, or the
value of a financial product to which a financial service relates,
under paragraph 761G(7)(a) of the Act, superannuation-sourced
money is not to be counted if:
(a) the financial service provided to a person is:
(i) financial product advice; or
(ii) if the person was a retail client—the provision of a
financial product in circumstances in which a Product
Disclosure Statement would need to be given to the
client under Part 7.9 of the Act (including
section 1012A, 1012B, 1012C or 1012IA); and
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Retail clients and wholesale clients Division 2
Regulation 7.1.27
Corporations Regulations 2001 47
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the financial product to which the financial service relates is
a product other than a non-cash payment financial product;
and
(c) the person who was the holder of the relevant superannuation
interest in the regulated superannuation fund was or would
have been a retail client under subsection 761G(6) of the Act
if they had held or acquired the product after FSR
commencement.
Example: If:
(a) the price for an income stream financial product or an investment-based financial product is $700 000; and
(b) the client uses $400 000 of superannuation-sourced money and $300 000 of other funds;
then, unless the client is a wholesale client for another reason, the
client will be a retail client due to the operation of
paragraph 761G(7)(a) of the Act.
Note: Under subsections 761G(5), (6) and (7) of the Act, general insurance
products, superannuation products and RSA products are not financial
products to which the restriction on counting superannuation-sourced
money towards the price applies. This applies in addition to the
exclusion for non-cash payment products under paragraph (b) of this
regulation.
7.1.27 Retail clients and wholesale clients: effect of wholesale status
(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
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.1 Preliminary
Division 2 Retail clients and wholesale clients
Regulation 7.1.28
48 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(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.
7.1.28 Retail clients and wholesale clients: assets and income
(1) For subparagraph 761G(7)(c)(i) of the Act, $2.5 million is
specified.
(2) For subparagraph 761G(7)(c)(ii) of the Act, $250 000 is specified.
Note: Under paragraph 761G(7)(c) of the Act, if a financial product is not,
or a financial service provided to a person does not relate to, a general
insurance product, a superannuation product or an RSA product, the
product or service is provided to the person as a retail client unless:
(a) the client is a wholesale client under paragraph 761G(7)(a), (b) or (d) of the Act; or
(b) the person who acquires the product or service gives the provider of the product or service, before the provision of the product or service, a copy of a certificate given within the preceding 6 months by a qualified accountant that states that the person:
(i) has net assets of at least the amount specified in regulations made for the purposes of subparagraph 761G(7)(c)(i) of the Act; or
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Retail clients and wholesale clients Division 2
Regulation 7.1.28
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(ii) has a gross income for each of the last 2 financial years of at least the amount specified in regulations made for the purposes of subparagraph 761G(7)(c)(ii) of the Act a year.
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Chapter 7 Financial services and markets
Part 7.1 Preliminary
Division 3 When does a person provide a financial service?
Regulation 7.1.28A
50 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 3—When does a person provide a financial
service?
7.1.28A Circumstances in which a person is taken to be provided a
traditional trustee company service
For subsection 766A(1B) of the Act, a person who is one of the
following:
(a) a person who may request an annual information return under
subregulation 5D.2.01(3);
(b) a person who requests the preparation of a will, a trust
instrument, a power of attorney or an agency arrangement;
is, in relation to an estate management function, prescribed as the
person to whom the service is taken to be provided.
7.1.29 Circumstances in which a person is taken not to provide a
financial service
(1) For paragraph 766A(2)(b) of the Act, a person who provides an
eligible service is taken not to provide a financial service if:
(a) the person provides the eligible service in the course of
conducting an exempt service; and
(b) it is reasonably necessary to provide the eligible service in
order to conduct the exempt service; and
(c) the eligible service is provided as an integral part of the
exempt service.
(2) For this regulation, a person provides an eligible service if the
person engages in conduct mentioned in paragraphs 766A(1)(a) to
(f) of the Act.
(3) For this regulation, a person who does any of the following
provides an exempt service:
(a) provides advice in relation to the preparation or auditing of
financial reports or audit reports;
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When does a person provide a financial service? Division 3
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(b) provides advice on a risk that another person might be
subject to and identifies generic financial products or generic
classes of financial product that will mitigate that risk, other
than advice for inclusion in an exempt document or
statement;
(c) provides advice on the acquisition or disposal,
administration, due diligence, establishment, structuring or
valuation of an incorporated or unincorporated entity, if the
advice:
(i) is given to a person who is, or is likely to become, an
interested party in the entity; and
(ii) to the extent that it is financial product advice—is
confined to advice on a decision about:
(A) securities of a body corporate, or related body
corporate, that carries on or may carry on the
business of the entity; or
(B) interests in a trust (other than a superannuation
fund or a managed investment scheme that is
registered or required to be registered), the
trustee of which carries on or may carry on the
business of the entity in the capacity of trustee;
and
(iii) does not relate to other financial products that the body
corporate or the trustee of the trust may acquire or
dispose of; and
(iv) is not advice for inclusion in an exempt document or
statement;
(d) provides advice on financial products that are:
(i) securities in a company (other than securities that are to
be offered under a disclosure document under
Chapter 6D of the Act); or
(ii) interests in a trust (other than a superannuation fund or a
managed investment scheme that is registered or
required to be registered);
if the company or trust is not carrying on a business and has
not, at any time, carried on a business;
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Chapter 7 Financial services and markets
Part 7.1 Preliminary
Division 3 When does a person provide a financial service?
Regulation 7.1.29
52 Corporations Regulations 2001
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(e) provides advice in relation to the transfer of financial
products between associates;
(f) arranges for another person to engage in conduct referred to
in subsection 766C(1) in relation to interests in a self
managed superannuation fund in the circumstances in
paragraphs (5)(b) and (c);
(g) arranges for another person to engage in conduct referred to
in subsection 766C(1), by preparing a document of
registration or transfer in order to complete administrative
tasks on instructions from the person;
(h) provides advice about the provision of financial products as
security, other than where the security is provided for the
acquisition of other financial products.
(3A) For this regulation, a person also provides an exempt service if the
person:
(a) is registered as an auditor under Part 9.2 of the Act; and
(b) performs any of the functions of a cover pool monitor
mentioned in subsection 30(4) of the Banking Act 1959.
(4) For this regulation, a person also provides an exempt service if:
(a) the person provides advice to another person on taxation
issues including advice in relation to the taxation
implications of financial products; and
(b) the person will not receive a benefit (other than from the
person advised or an associate of the person advised) as a
result of the person advised acquiring a financial product
mentioned in the advice, or a financial product that falls
within a class of financial products mentioned in the advice;
and
(c) either:
(i) the advice does not constitute financial product advice
to a retail client; or
(ii) the advice constitutes financial product advice to a retail
client and it includes, or is accompanied by, a written
statement that:
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Financial services and markets Chapter 7
Preliminary Part 7.1
When does a person provide a financial service? Division 3
Regulation 7.1.29
Corporations Regulations 2001 53
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(A) the person providing the advice is not licensed
to provide financial product advice under the
Act; and
(B) taxation is only one of the matters that must be
considered when making a decision on a
financial product; and
(C) the client should consider taking advice from
the holder of an Australian Financial Services
Licence before making a decision on a financial
product.
(5) For this regulation, a person also provides an exempt service if:
(a) the person provides advice in relation to the establishment,
operation, structuring or valuation of a superannuation fund,
other than advice for inclusion in an exempt document or
statement; and
(b) the person advised is, or is likely to become:
(i) a trustee; or
(ii) a director of a trustee; or
(iii) an employer sponsor; or
(iv) a person who controls the management;
of the superannuation fund; and
(c) except for advice that is given for the sole purpose, and only
to the extent reasonably necessary for the purpose, of
ensuring compliance by the person advised with the SIS Act
(other than paragraph 52(2)(f)), the SIS Regulations (other
than regulation 4.09) or the Superannuation Guarantee
(Administration) Act 1992—the advice:
(i) does not relate to the acquisition or disposal by the
superannuation fund of specific financial products or
classes of financial products; and
(ii) does not include a recommendation that a person
acquire or dispose of a superannuation product; and
(iii) does not include a recommendation in relation to a
person’s existing holding in a superannuation product to
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.1 Preliminary
Division 3 When does a person provide a financial service?
Regulation 7.1.29A
54 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
modify an investment strategy or a contribution level;
and
(d) if the advice constitutes financial product advice provided to
a retail client—the advice includes, or is accompanied by, a
written statement that:
(i) the person providing the advice is not licensed to
provide financial product advice under the Act; and
(ii) the client should consider taking advice from the holder
of an Australian Financial Services Licence before
making a decision on a financial product.
(6) In this regulation:
employer sponsor has the meaning given by subsection 16(1) of
the SIS Act.
exempt document or statement has the meaning given by
subsection 766B(9) of the Act.
generic means without reference to a particular brand or product
issuer.
interested party means:
(a) an associate within the meaning of Division 2 of Part 1.2 of
the Act; or
(b) a manager; or
(c) an officer; or
(d) a trustee or director of a trustee.
self managed superannuation fund has the meaning given by
section 17A of the SIS Act.
7.1.29A Self-managed superannuation funds
(1) Subparagraph 7.1.29(5)(c)(ii) does not apply to a recommendation
by a recognised accountant in relation to a self-managed
superannuation fund.
(2) In this regulation:
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Financial services and markets Chapter 7
Preliminary Part 7.1
When does a person provide a financial service? Division 3
Regulation 7.1.30
Corporations Regulations 2001 55
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
recognised accountant means:
(a) a member of CPA Australia who:
(i) is entitled to use the letters ‘CPA’ or ‘FCPA’; and
(ii) 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) is entitled to use the letters ‘ACA’, ‘CA’ or ‘FCA’; and
(ii) 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) is entitled to use the letters “MIPA” or “FIPA”; and
(ii) is subject to, and complies with, the IPA’s continuing
professional education requirements.
7.1.30 Information and advice about voting
For paragraph 766A(2)(b) of the Act, a circumstance in which a
person is taken not to provide a financial service within the
meaning of paragraph 766A(1)(a) of the Act is that:
(a) the service provided by the person consists only of advising
another person in relation to the manner in which:
(i) voting rights attaching to securities; or
(ii) voting rights attaching to interests in managed
investment schemes;
may or should be exercised; and
(b) the advice is not intended to influence any decision in
relation to financial products other than a decision about
voting; and
(c) the advice could not be reasonably be regarded as intended to
influence a decision in relation to financial products, other
than a decision about voting; and
(d) the advice does not relate to a vote that relates to a dealing in
financial products.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.1 Preliminary
Division 3 When does a person provide a financial service?
Regulation 7.1.31
56 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Note: A service that includes advice which is intended to influence the
decision to acquire securities in another company would be not
provided in circumstances covered by this regulation.
7.1.31 Passing on prepared documents
For paragraph 766A(2)(b) of the Act, a circumstance in which a
person (person 1) is taken not to provide a financial service within
the meaning of paragraph 766A(1)(a) of the Act is that:
(a) person 1 provides a service to a person; and
(b) the service consists only of passing on, publishing,
distributing or otherwise disseminating a document that
contains financial product advice; and
(c) the document was provided by another person (person 2);
and
(d) person 2 is not acting on behalf of person 1; and
(e) person 1 is not the holder of a financial services licence that
authorises person 1 to provide financial product advice; and
(f) person 1 does not select the content of the document, modify
the content of the document or otherwise exercise control
over the content of the document; and
(g) a reasonable person would not consider that person 1
provided, endorsed or otherwise assumed responsibility for
the financial product advice contained in the document.
7.1.32 Remuneration packages
For paragraph 766A(2)(b) of the Act, a circumstance in which a
person (person 1) is taken not to provide a financial service within
the meaning of paragraph 766A(1)(a) of the Act is that:
(a) person 1 provides advice to another person; and
(b) the advice relates only to the structuring of remuneration
packages for the other person’s employees.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Preliminary Part 7.1
When does a person provide a financial service? Division 3
Regulation 7.1.33
Corporations Regulations 2001 57
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.1.33 Handling insurance claims
(1) For paragraph 766A(2)(b) of the Act, a circumstance in which a
person is taken not to provide a financial service within the
meaning of paragraph 766A(1)(a) of the Act is the giving of advice
that consists only of a recommendation or statement of opinion
provided in the course of, and as a necessary or incidental part of,
either or both of:
(a) the handling of claims or potential claims in relation to an
insurance product; and
(b) the settlement of claims or potential claims in relation to an
insurance product.
(2) For paragraph 766A(2)(b) of the Act, a circumstance in which a
person is taken not to provide a financial service within the
meaning of paragraph 766A(1)(b) of the Act is a dealing in an
insurance product that is a necessary or incidental part of either or
both of:
(a) the handling of claims or potential claims in relation to that
product; and
(b) the settlement of claims or potential claims in relation to that
product.
Examples of services:
1 Negotiations on settlement amounts.
2 Interpretation of relevant policy provisions.
3 Estimates of loss or damage.
4 Estimate of value or appropriate repair.
5 Recommendations on mitigation of loss.
6 Recommendations, in the course of handling a claim as described in
subregulations (1) and (2), on increases in limits or different cover
options to protect against the same loss in the future.
7 Claims strategy such as the making of claims under alternate policies.
(3) In this regulation:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.1 Preliminary
Division 3 When does a person provide a financial service?
Regulation 7.1.33A
58 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
insurance product includes a self-insurance arrangement through
which a person manages financial risk.
7.1.33A Allocation of funds available for investment
For paragraph 766A(2)(b) of the Act, a circumstance in which a
person is taken not to provide a financial service within the
meaning of paragraph 766A(1)(a) of the Act is the provision of a
service that consists only of a recommendation or statement of
opinion provided to a person about the allocation of the person’s
funds that are available for investment among 1 or more of the
following:
(a) shares;
(b) debentures;
(c) debentures, stocks or bonds issued, or proposed to be issued,
by a government;
(d) deposit products;
(e) managed investment products;
(f) investment life insurance products;
(g) superannuation products;
(h) other types of asset.
Note: This regulation does not apply to a recommendation or statement of
opinion that relates to specific financial products or classes of
financial products.
7.1.33B General advice
(1) For paragraph 766A(2)(b) of the Act, this regulation applies in
relation to the provision of a service by a person to another person
in the following circumstances:
(a) the service consists only of general advice in relation to a
financial product or class of financial products;
(b) the advice is prepared by a product issuer of the financial
product or class of financial products who is not a financial
services licensee;
(c) the advice is provided by a financial services licensee whose
financial services licence covers the provision of the advice.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Preliminary Part 7.1
When does a person provide a financial service? Division 3
Regulation 7.1.33D
Corporations Regulations 2001 59
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) The product issuer is taken not to provide a financial service within
the meaning of paragraph 766A(1)(a) of the Act.
(3) The financial services licensee is taken to provide a financial
service within the meaning of paragraph 766A(1)(a) of the Act.
7.1.33D Investment-linked life insurance products
For paragraph 766A(2)(b) of the Act, a person is taken not to
provide a financial service if:
(a) the person makes a market for a financial product (within the
meaning of section 766D of the Act); and
(b) the person is the issuer of the product; and
(c) the product is an investment-linked life insurance policy
under an investment-linked contract (within the meaning of
subsection 14(4) of the Life Insurance Act 1995).
7.1.33E Advice about the existence of a custodial or depository
service
For paragraph 766A(2)(b) of the Act, a person is taken not to
provide a financial service if:
(a) the person provides advice about a custodial or depository
service; and
(b) the advice is not about a financial product; and
(c) the advice is not intended to influence, and could not
reasonably be regarded as being intended to influence, a
decision about a financial product other than a product that is
a financial product only because it is an equitable right or
interest in:
(i) a share in a body; or
(ii) a debenture of a body; or
(iii) an interest in a registered scheme.
Note: Paragraph (c) describes financial products under paragraph (c) of the
definition of security in section 761A of the Act and financial
products under subparagraph 764A(1)(b)(ii) of the Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.1 Preliminary
Division 3 When does a person provide a financial service?
Regulation 7.1.33F
60 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.1.33F School banking
(1) For paragraph 766A(2)(b) of the Act, a person is taken not to
provide a financial service if:
(a) the service is:
(i) arranging for the issue, or the acquisition, of a school
banking product; or
(ii) the provision of general advice intended to influence a
decision in relation to a school banking product; and
(b) the person:
(i) is employed by a school; or
(ii) provides the service on behalf of a school; and
(c) the person does not receive any financial benefit for the
provision of the service; and
(d) the Product Disclosure Statement for the product discloses
any commissions or other benefits that the school might
receive in connection with the issue of the product.
(2) In this regulation:
school banking product means a basic deposit product, issued by
an ADI in the following circumstances:
(a) it is offered for issue to pupils at a school;
(b) there is no regular account keeping fee charged for the
product.
7.1.33G Certain general advice that does not attract remuneration
etc.
For subsection 766A(2) of the Act, a person (the advisor) is taken
not to provide a financial service if:
(a) the advisor gives advice to another person; and
(b) the advice:
(i) is not about a particular financial product or an interest
in a particular financial product; and
(ii) is not personal advice; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Preliminary Part 7.1
When does a person provide a financial service? Division 3
Regulation 7.1.33H
Corporations Regulations 2001 61
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) the advice:
(i) is not intended to influence the other person in making a
decision in relation to a particular financial product or
an interest in a particular financial product; or
(ii) could not reasonably be regarded as being intended to
have such an influence; and
(d) by giving the advice neither the advisor, nor an associate of
the advisor, receives any remuneration (including
commission) or other benefit that is related to the advice
given apart from remuneration (including commission) or
other benefit that the advisor or the associate would have
received if the advice was not given.
7.1.33H Certain general advice given by a financial product issuer
For subsection 766A(2) of the Act, a financial product issuer is not
taken to provide a financial service if:
(a) the issuer gives advice to another person about:
(i) a particular financial product or class of financial
products issued by the issuer; or
(ii) an interest in a particular financial product or a class of
financial products issued by the issuer; and
(b) the advice is not personal advice; and
(c) the advice is given to the person at the same time as the
issuer:
(i) advises the person that the issuer is not licensed to
provide financial product advice in relation to the
product, class or interest, as the case may be; and
(ii) recommends to the person that the person obtain a
Product Disclosure Statement, if appropriate, and read it
before making a decision to acquire the product or a
product from the class of products, as the case may be;
and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.1 Preliminary
Division 3 When does a person provide a financial service?
Regulation 7.1.33H
62 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(iii) if it is advice about the offer, issue or sale of a financial
product—notifies the person about the availability or
otherwise of a cooling-off regime that applies in respect
of the acquisition of the product, a product from the
class of products or an interest in a product as the case
may be (whether the regime is provided for by law or
otherwise).
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Preliminary Part 7.1
Dealings in financial products Division 4
Regulation 7.1.34
Corporations Regulations 2001 63
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4—Dealings in financial products
7.1.34 Conduct that does not constitute dealing in a financial
product
(1) This regulation does not apply in relation to a margin lending
facility.
(2) For subsection 766C(7) of the Act, the following conduct does not
constitute dealing in a financial product:
(a) the enforcement of rights under a credit facility, including the
enforcement of rights by a person acting under a power of
attorney;
(b) the disposal of a financial product that is subject to a
mortgage or the transfer of such a product to the mortgagor,
whether the disposal or transfer is carried out at the direction
of the mortgagor or occurs as a result of the mortgagor
fulfilling its obligations under the mortgage.
Example for paragraph (a): A mortgagee exercising a power of sale under a
mortgage.
7.1.35 Conduct that does not constitute dealing in a financial
product
(1) For subsection 766C(7) of the Act, conduct is not taken to be
dealing in a financial product if:
(a) the conduct is of a kind:
(i) mentioned in paragraph 766C(1)(a), (d) or (e) of the
Act; or
(ii) mentioned in paragraph 766C(1)(b) of the Act, where it
is the issue of a beneficial interest in a financial product,
that arises from conduct that would constitute providing
a custodial or depository service but for the operation of
regulation 7.1.40; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.1 Preliminary
Division 4 Dealings in financial products
Regulation 7.1.35A
64 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the conduct is carried out by a person (person 1) in relation
to a product that person 1 holds on trust for, or on behalf of,
another person (person 2) and the holding of that financial
product would not constitute the provision of a custodial or
depository service because of paragraphs 7.1.40(a), (b), (c),
(d), (g) and (i).
(2) Subregulation (1) does not apply to conduct carried out by person 1
in relation to a financial product that is held under a custodial
arrangement as defined in section 1012IA of the Act unless:
(a) person 2 is an associate of person 1; or
(b) the financial product is held in the manner mentioned in
paragraph 7.1.40(d).
7.1.35A Conduct that does not constitute dealing in a financial
product—lawyers acting on instructions
For subsection 766C(7) of the Act, a financial service provided by
a lawyer is taken not to be dealing in a financial product if:
(a) the financial service consists of:
(i) arranging for a person to engage in conduct referred to
in subsection 766C(1) of the Act; or
(ii) dealing as an agent or otherwise on behalf of a client, an
associate of a client or a relative of a client; and
(b) the lawyer is acting:
(i) on the instructions of the client, an associate of the
client or a relative of the client; and
(ii) in his or her professional capacity; and
(iii) in the ordinary course of his or her activities as a
lawyer; and
(c) the financial service can reasonably be regarded as a
necessary part of those activities; and
(d) the lawyer has not received, and will not receive, a benefit in
connection with those activities other than:
(i) the payment of professional charges in relation to those
activities; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Preliminary Part 7.1
Dealings in financial products Division 4
Regulation 7.1.35B
Corporations Regulations 2001 65
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) reimbursement for expenses incurred or payment on
account of expenses to be incurred on behalf of the
client, an associate of the client or a relative of the
client;
from the client or from another person on behalf of the client.
7.1.35B Conduct that does not constitute dealing in a financial
product—issuing carbon units, Australian carbon credit
units or eligible international emissions units
For subsection 766C(7) of the Act, a financial service provided by
a person is taken not to be dealing in a financial product if:
(a) the financial product is a carbon unit, an Australian carbon
credit unit or an eligible international emissions unit; and
(b) the person is:
(i) the Clean Energy Regulator; or
(ii) the Clean Development Mechanism Executive Board; or
(iii) the government of a country other than Australia; or
(iv) an authority acting on behalf of the government of a
country other than Australia; and
(c) the financial service consists of issuing the carbon unit,
Australian carbon credit unit or eligible international
emissions unit.
7.1.35C Conduct that does not constitute dealing in a financial
product—carbon units, Australian carbon credit units or
eligible international emissions units
For subsection 766C(7) of the Act, a financial service provided by
a person is taken not to be dealing in a financial product if:
(a) the financial product is a carbon unit, an Australian carbon
credit unit or an eligible international emissions unit; and
(b) the financial service consists of dealing in the carbon unit,
Australian carbon credit unit or eligible international
emissions unit on behalf of:
(i) a related body corporate of the person; or
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.1 Preliminary
Division 4 Dealings in financial products
Regulation 7.1.35C
66 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) an associated entity of the person; and
(c) the related body corporate or associated entity is an entity
that is a liable entity entered in the information database
under section 183 of the Clean Energy Act 2011.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Preliminary Part 7.1
Custodial or depository services Division 5
Regulation 7.1.40
Corporations Regulations 2001 67
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5—Custodial or depository services
7.1.40 Conduct that does not constitute the provision of a custodial
or depository service
(1) For paragraph 766E(3)(e) of the Act, conduct that is mentioned in
subsection 766E(1) of the Act does not constitute providing a
custodial or depository service if:
(a) the financial product held by the provider is a basic deposit
product (within the definition in section 761A of the Act) or
is an account mentioned in subsection 981B(1) of the Act; or
(b) the client is an associate of the provider (within the meaning
of Division 2 of Part 1.2 of the Act); or
(c) the provider and its associates have no more than 20 clients
in aggregate for all custodial or depository services that they
provide; or
(d) the financial product is held as part of the arrangements for
securing obligations under:
(i) a credit facility; or
(ii) a debenture that is held as trustee under a trust deed:
(A) entered into under section 283AA of the Act or
former section 260FA of the Corporations Law
of a State or Territory; or
(B) mentioned in former section 1052 of the
Corporations Law of a State or Territory; or
(e) the provider is a participant in a licensed market and the
financial product held is a derivative acquired on the licensed
market by the provider on behalf of a client; or
(f) the provider is a participant in a licensed clearing and
settlement facility and the financial product held is a
derivative registered on the licensed clearing and settlement
facility by the provider on behalf of the client; or
(g) the financial product is held under:
(i) an order of a court; or
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.1 Preliminary
Division 5 Custodial or depository services
Regulation 7.1.40
68 Corporations Regulations 2001
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(ii) an order of a board or tribunal established under a law
of a State or Territory; or
(iii) a direction by the holder of a statutory office established
under a law of a State or Territory; or
(h) the service is provided by a lawyer in the following
circumstances:
(i) the financial service consists of acquiring, holding or
disposing of a cash management trust interest, being an
interest to which a law of a State or Territory relating to
the audit of trust or controlled monies applies;
(ii) the lawyer is acting:
(A) on instructions from the client, an associate of
the client or a relative of the client; and
(B) in his or her professional capacity; and
(C) in the ordinary course of his or her activities as
a lawyer;
(iii) the financial service can reasonably be regarded as a
necessary part of those activities;
(iv) the lawyer has not received, and will not receive, a
benefit in connection with the activities other than:
(A) the payment of professional charges related to
those activities; and
(B) reimbursement for expenses incurred or
payment on account of expenses to be incurred
on behalf of the client, an associate of the client
or a relative of the client;
from the client or from another person on behalf of the
client; or
(i) the financial product is held by a trustee appointed under:
(i) a law of a State or Territory to administer monies
awarded to a person as compensation; or
(ii) a trust formed for a charitable purpose.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Preliminary Part 7.1
Custodial or depository services Division 5
Regulation 7.1.40
Corporations Regulations 2001 69
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) For paragraph 766E(3)(e) of the Act, conduct that is mentioned in
subsection 766E(1) of the Act does not constitute providing a
custodial or depository service if the financial product is an
Australian carbon credit unit that has been issued to:
(a) a special native title account in accordance with section 49 of
the Carbon Credits (Carbon Farming Initiative) Act 2011; or
(b) a nominee account in accordance with section 141 of that
Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.1 Preliminary
Division 6 Operating a financial market
Regulation 7.1.50
70 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 6—Operating a financial market
7.1.50 Operating a financial market
For paragraph 767A(2)(a) of the Act, the following circumstances
are specified as circumstances in which the conduct of a person
making or accepting offers or invitations to acquire or dispose of
financial products, on the person’s own behalf or on behalf of one
party to the transaction only, constitutes the operating of a financial
market for the purposes of Chapter 7 of the Act:
(a) the Clean Energy Regulator making or accepting offers or
invitations to acquire or dispose of carbon units on its own
behalf, or on behalf of the Commonwealth only, in the course
of conducting an auction of carbon units under the Clean
Energy Act 2011;
(b) a person making or accepting offers or invitations to acquire
or dispose of carbon units on behalf of the Clean Energy
Regulator only, in the course of assisting the Clean Energy
Regulator to conduct an auction of carbon units under the
Clean Energy Act 2011.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Licensing of financial markets Part 7.2
Market licensees’ obligations Division 1
Regulation 7.2.01
Corporations Regulations 2001 71
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 7.2—Licensing of financial markets
Division 1—Market licensees’ obligations
7.2.01 Obligation to inform ASIC of certain matters: contraventions
of licence or Act
For paragraph 792B(3)(b) of the Act, a matter to which that
paragraph relates is any matter that, in the opinion of a market
licensee, constitutes or may constitute a contravention of:
(a) a condition of a licence held by a financial services licensee;
or
(b) Subdivision A or B of Division 2 of Part 7.8 of the Act; or
(c) Division 3 of Part 7.8 of the Act; or
(d) Subdivision B of Division 6 of Part 7.8 of the Act.
7.2.02 Obligation to inform ASIC of certain matters: becoming
director, secretary or executive officer of market licensee
(1) This regulation applies if a person becomes a director, secretary or
executive officer of a market licensee or of a holding company of a
market licensee (including when the person changes from one of
those positions to another).
(2) For subsection 792B(5) of the Act, the information to be given to
ASIC by the market licensee is:
(a) the person’s name and contact details; and
(b) the date of appointment to the position; and
(c) the person’s educational qualifications and financial market
experience; and
(d) if the market licensee is aware of any details of a conviction
of the kind mentioned in subsection 206B(1) of the Act—the
details; and
(e) whether the market licensee knows whether the person:
(i) is an undischarged bankrupt; or
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Chapter 7 Financial services and markets
Part 7.2 Licensing of financial markets
Division 1 Market licensees’ obligations
Regulation 7.2.03
72 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) has entered into a deed of arrangement or composition
of a kind mentioned in subsections 206B(3) and (4) of
the Act;
and, if the market licensee knows the information, details of
what the market licensee knows.
7.2.03 Obligation to inform ASIC of certain matters: ceasing to be
director, secretary or executive officer of market licensee
(1) For subsection 792B(5) of the Act, this regulation applies if a
person ceases to be a director, secretary or executive officer of a
market licensee or of a holding company of a market licensee
(including when the person changes from one of those positions to
another).
(2) The information to be given to ASIC by the market licensee is:
(a) the person’s name and contact details; and
(b) the position that the person held; and
(c) the date on which the person ceased to hold the position; and
(d) if the person ceases to be a director, secretary or executive
officer because the person is changing from the position to
another in the company, the new position; and
(e) if the reason for ceasing to hold the position is:
(i) because of a contravention of the Corporations Act or
another law of a State or Territory; or
(ii) because the person has become an undischarged
bankrupt;
details of the reason.
7.2.04 Obligation to inform ASIC of certain matters: voting power in
market licensee
(1) This regulation applies if a market licensee becomes aware that a
person has come to have, or has ceased to have, more than 15% of
the voting power in the market licensee or in a holding company of
the market licensee.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Licensing of financial markets Part 7.2
Market licensees’ obligations Division 1
Regulation 7.2.05
Corporations Regulations 2001 73
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) For subsection 792B(5) of the Act, the information to be given to
ASIC by the market licensee is:
(a) the person’s name and contact details; and
(b) if known by the market licensee, the date on which the
person came to have, or ceased to have, more than 15% of
the voting power; and
(c) if the market licensee knows the voting power that the person
had immediately before the person came to have, or ceased to
have, more than 15% of the voting power, that voting power;
and
(d) whether the market licensee knows the manner in which the
person came to have, or ceased to have, more than 15% of
the voting power, and, if the market licensee knows the
manner, details of what the market licensee knows.
7.2.05 Giving ASIC information about a listed disclosing entity
(1) For subsection 792C(2) of the Act, the following information is
prescribed:
(a) a stock exchange automated trading system notification
message;
(b) an Australian Stock Exchange voiceline announcement.
(2) In this regulation:
Australian Stock Exchange voiceline announcement means a
message from the Australian Stock Exchange that is:
(a) spoken over an announcement system; and
(b) a summary of information lodged with the Australian Stock
Exchange by a company or other entity that is included in the
official list of a financial market.
Stock exchange automated trading system notification message
means a brief message that is:
(a) transmitted to computer terminals of persons linked to the
Stock Exchange Automated Trading System; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.2 Licensing of financial markets
Division 1 Market licensees’ obligations
Regulation 7.2.06
74 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) a summary of information lodged with the Australian Stock
Exchange by a company or other entity that is included in the
official list of a financial market.
7.2.06 Annual report of market licensee
For subsection 792F(2) of the Act, if an annual report by a market
licensee does not contain any of the following information, the
information must accompany the annual report:
(a) a description of the activities the market licensee has
undertaken in the financial year;
(b) the resources (including financial, technological and human
resources) that the market licensee had available, and used, in
order to ensure that it has complied with its obligations in
Chapter 7 of the Act, and, in particular, the obligation
contained in subparagraph 792A(c)(i) of the Act;
(c) an analysis of the extent to which the market licensee
considers that the activities undertaken, and resources used,
have resulted in full compliance with all its obligations under
Chapter 7 of the Act.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Licensing of financial markets Part 7.2
The market’s operating rules and procedures Division 2
Regulation 7.2.07
Corporations Regulations 2001 75
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2—The market’s operating rules and procedures
7.2.07 Content of licensed market’s operating rules
For subsection 793A(1) of the Act, the following matters are
matters with which the operating rules of a licensed market must
deal to the extent that a matter is not dealt with in the market
integrity rules:
(a) access to the licensed market, including the criteria for
determining persons who are eligible to be participants;
(b) ongoing requirements for participants, including:
(i) the conduct of participants in relation to the licensed
market with the objective of promoting honesty and fair
practice; and
(ii) provision for the monitoring of participants’ compliance
with the operating rules; and
(iv) provision for the expulsion or suspension of, or
enforcement action against, a participant for breaches of
the operating rules; and
(v) provision for the expulsion or suspension of a
participant for breaches of Chapter 7 of the Act, or
regulations made under that Chapter; and
(vii) provision for the expulsion or suspension of, or
enforcement action against, a participant for a failure or
expected failure to meet the participant’s obligations
under commitments entered into on the licensed market;
(c) execution of orders;
(d) the way in which disorderly trading conditions are to be dealt
with, including disruptions to trading;
(e) the class or classes of financial products that are to be dealt
with on the licensed market by participants, including:
(i) a description of the nature of each class of financial
product; and
(ii) for a class of derivatives, if most of the terms of the
arrangement constituting the derivative are determined
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.2 Licensing of financial markets
Division 2 The market’s operating rules and procedures
Regulation 7.2.08
76 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
in advance by the market operator (including price, if
determined in advance):
(A) the standard terms of the arrangement that
constitutes the derivative; and
(B) a description of the asset, rate, index,
commodity or other thing that is used for the
matters mentioned in paragraph 761D(1)(c) of
the Act;
(f) the terms of the contract formed between participants that
enter into a transaction through the licensed market (to the
extent to which paragraph (e) does not require that
information);
(g) if appropriate, the listing of entities, including:
(i) admitting an entity to the official list of the licensed
market for the purpose of enabling financial products of
the entity to be traded on the licensed market, and
removing an entity from the official list; and
(ii) the activities or conduct of an entity that is included on
the official list of the licensed market, including a
description of the arrangements for the disciplining of
the entity for a breach of the operating rules;
(h) mechanisms through which market-related disputes between
participants may be settled (for example, arbitration
arrangements);
(i) the power to facilitate the assessment and, if appropriate, the
investigation of market-related disputes between participants;
(j) any obligations on participants and listed entities that are
necessary to ensure that the market licensee is able to comply
with subparagraph 792A(c)(i) of the Act and regulations
made under section 798E of the Act.
7.2.08 Content of licensed market’s written procedures
For subsection 793A(2) of the Act, the following matters are
matters in respect of which a licensed market must have written
procedures to the extent that the market integrity rules do not deal
with a matter:
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Licensing of financial markets Part 7.2
The market’s operating rules and procedures Division 2
Regulation 7.2.08
Corporations Regulations 2001 77
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) exchange of appropriate information with:
(i) clearing and settlement facilities; and
(ii) other financial markets; and
(iii) ASIC;
(b) arrangements to ensure the integrity and security of systems
(including computer systems);
(c) arrangements for the monitoring of compliance by
participants and listed entities with the operating rules of the
licensed market:
(d) the assessment, investigation (if justified) and settlement of
market-related disputes between participants;
(f) the recording and effective disclosure of transactions;
(g) the provision of information about market processes.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.2 Licensing of financial markets
Division 3 Powers of the Minister and ASIC
Regulation 7.2.09
78 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 3—Powers of the Minister and ASIC
7.2.09 Agencies for compliance assessment
For paragraph 794C(5)(d) of the Act, the following agencies are
prescribed:
(a) the Clean Energy Regulator;
(aa) the Australian Competition and Consumer Commission;
(b) the Australian Prudential Regulation Authority;
(c) the Australian Taxation Office;
(d) the Australian Transaction Reports and Analysis Centre;
(e) an authority of a State or Territory having functions and
powers similar to those of the Director of Public
Prosecutions;
(f) the police force or service of each State and the Northern
Territory;
(g) the Department of Consumer and Employment Protection of
Western Australia;
(ga) the Commissioner of State Revenue of Western Australia;
(h) the Department of Fair Trading of New South Wales;
(i) the Office of Fair Trading and Business Affairs of Victoria;
(ia) the State Revenue Office of Victoria;
(j) the Office of Consumer Affairs of Queensland;
(ja) the Office of State Revenue of Queensland;
(k) the Office of Consumer and Business Affairs of South
Australia;
(l) the Office of Consumer Affairs and Fair Trading of
Tasmania;
(la) the Department of Treasury and Finance of Tasmania;
(m) the Consumer Affairs Bureau of the Australian Capital
Territory;
(n) the Fair Trading Group of the Northern Territory.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Licensing of financial markets Part 7.2
The Australian market licence: applications (general) Division 4
Regulation 7.2.10
Corporations Regulations 2001 79
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4—The Australian market licence: applications
(general)
7.2.10 Application of Division 4
This Division applies in relation to a body corporate that applies
for an Australian market licence that may be granted under
subsection 795B(1) of the Act.
7.2.11 Information
For paragraph 795A(1)(a) of the Act, the following information is
required as part of an application by the body corporate for an
Australian market licence:
(a) the body corporate’s name, address and contact details;
(b) the name, address and contact details of any person who will
act on behalf of the body corporate in relation to the
application;
(c) details of the body corporate’s major shareholders and
organisation, including:
(i) the name, address and contact details of each director;
and
(ii) the name, address and contact details of each secretary;
and
(iii) the name, address and contact details of each executive
officer of the body corporate; and
(iv) whether any director, secretary or executive officer is,
or has been, disqualified from managing a corporation
under a law of this jurisdiction or another jurisdiction;
(d) a description of the body corporate’s business or functions,
other than the operation of the proposed market;
(e) details of the financial products to be traded on the proposed
market;
(f) whether the proposed market will involve the provision of a
financial product to a person as a retail client;
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.2 Licensing of financial markets
Division 4 The Australian market licence: applications (general)
Regulation 7.2.12
80 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(g) details of the clearing and settlement arrangements that have
been made, or are proposed, for the proposed market;
(h) details of the technological resources that will be used in the
operation of the market, including details of:
(i) the purpose of the resources; and
(ii) how the resources are to be supplied, managed,
maintained and upgraded; and
(iii) how the security of information technology systems is
to be protected;
(i) details of the arrangements for dealing with conflicts between
the body corporate’s commercial interests and its obligations
to supervise and monitor the market;
(j) details of the arrangements for the supervision of employees
of the body corporate who have duties and responsibilities of
a kind that supervision of the employees is necessary to
protect the integrity of the operation of the proposed market;
(k) if the ACCC has made a decision in relation to the market
that the body corporate will operate—details of the decision.
7.2.12 Documents
For paragraph 795A(1)(b) of the Act, the following documents are
required as part of an application by the body corporate for an
Australian market licence:
(a) the body corporate’s current or proposed operating rules and
written procedures;
(b) if applicable—the body corporate’s constitution;
(c) a copy of any agreement material to:
(i) the way in which the proposed market is to be operated;
and
(ii) the way in which the financing of the proposed market,
and the other resources used to operate it, will be
organised; and
(iii) the body corporate’s constitution or governance; and
(iv) the appointment or employment of directors, secretaries
and executive officers of the body corporate;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Licensing of financial markets Part 7.2
The Australian market licence: applications (general) Division 4
Regulation 7.2.12
Corporations Regulations 2001 81
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(d) a copy of any agreement, or proposed agreement, relating to
the outsourcing or delegation of a function, facility or service
in relation to the proposed market by the body corporate to
another person;
(e) if the body corporate is a disclosing entity—a copy of each
half-year financial report of the body corporate for:
(i) the period of 3 years immediately before the application
was made; or
(ii) the shorter period in which the body corporate has
carried on a business;
(f) if the body corporate is not a disclosing entity—a copy of
each annual financial report of the body corporate for:
(i) the period of 3 years immediately before the application
was made; or
(ii) the shorter period in which the body corporate has
carried on a business;
(g) if the body corporate is a related body corporate—a copy of
the relevant consolidated annual and half-year financial
reports for:
(i) the period of 3 years immediately before the application
was made; or
(ii) the shorter period in which the body corporate has
carried on a business;
(h) a report, by a qualified person who is independent of the
body corporate, about the anticipated financial resource
requirements of the proposed market, including details of:
(i) the total anticipated fixed expenditure and variable
expenditure for the first 12 months of operation of the
market; and
(ii) the total anticipated revenue for the first 12 months of
operation of the market and other sources of financial
resources; and
(iii) the body corporate’s contingency arrangements in the
event of circumstances occurring that affect the body
corporate’s ability to operate the market;
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.2 Licensing of financial markets
Division 4 The Australian market licence: applications (general)
Regulation 7.2.12
82 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) details of the body corporate’s business plan, or other
strategic planning, for the first 12 months of operation of the
market, that are not included in the other documents
mentioned in this regulation.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Licensing of financial markets Part 7.2
The Australian market licence: applications (financial market in foreign country)
Division 5
Regulation 7.2.13
Corporations Regulations 2001 83
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5—The Australian market licence: applications
(financial market in foreign country)
7.2.13 Application of Division 5
This Division applies in relation to a body corporate that applies
for an Australian market licence that may be granted under
subsection 795B(2) of the Act.
7.2.14 Information
For paragraph 795A(1)(a) of the Act, the following information is
required as part of an application by the body corporate for an
Australian market licence:
(a) the body corporate’s name, address and contact details in this
jurisdiction;
(b) the address and contact details of the body corporate’s
principal place of business in the foreign country in which its
financial market is located (the home country);
(c) whether the body corporate is registered under Division 2 of
Part 5B.2 of the Act;
(d) details of the financial products that are traded on the
financial market in the home country;
(e) details of the clearing and settlement arrangements for the
financial market in the home country;
(f) details of the body corporate’s major shareholders and
organisation, including any details that have not already been
given to ASIC in accordance with Division 2 of Part 5B.2 of
the Act of:
(i) each person whose duties are comparable to those of a
director; and
(ii) each person whose duties are comparable to those of a
secretary; and
(iii) each person whose duties are comparable to those of an
executive officer of the body corporate.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.2 Licensing of financial markets
Division 5 The Australian market licence: applications (financial market in foreign
country)
Regulation 7.2.15
84 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.2.15 Documents
For paragraph 795A(1)(b) of the Act, the documents required as
part of an application by the body corporate for an Australian
market licence are:
(a) the body corporate’s authorisation to operate the financial
market in its home country, including a copy of any
conditions imposed on the body corporate’s operation of its
financial market in the home country; and
(b) sufficient documentation to allow the Minister to be satisfied
that the regulation of the financial market in its home country
is equivalent to regulation under the Act.
Example for paragraph (b): Copies of the relevant legislation, rules and
procedures in the home country.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Licensing of financial markets Part 7.2
The Australian market licence: other matters Division 6
Regulation 7.2.16
Corporations Regulations 2001 85
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 6—The Australian market licence: other matters
7.2.16 Potential conflict situations
(1) For subsection 798E(1) of the Act, this regulation applies in
relation to specific and significant conflicts, or potential conflicts
that would be specific and significant, between:
(a) the commercial interests of Australian Stock Exchange
Limited (ASX) in dealing with a body (the competitor) that
operates a business with which:
(i) ASX is in competition; or
(ii) a subsidiary of ASX is in competition; or
(iii) a joint venture (however described) to which ASX is a
party is in competition; or
(iv) a joint venture (however described) to which a
subsidiary of ASX is a party is in competition; and
(b) the need for ASX to ensure that the market operated by it
operates in the way mentioned in paragraph 792A(a) of the
Act.
(2) The competitor may lodge with ASIC in the prescribed form, an
application for ASIC to decide that ASIC, instead of ASX, will
make decisions and take action (or require ASX to take action on
ASIC’s behalf) in relation to:
(a) if the competitor is seeking to be listed—the compliance by
the competitor with the applicable listing rules of the market
operated by ASX; or
(b) if the competitor is listed on the market operated by ASX—
the compliance by the competitor with the applicable listing
rules of the market operated by ASX.
(3) As soon as practicable after receiving an application under
subregulation (2), ASIC must:
(a) consider whether a conflict, or potential conflict, exists as
described in subregulation (1); and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.2 Licensing of financial markets
Division 6 The Australian market licence: other matters
Regulation 7.2.16
86 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) if it considers that a conflict, or potential conflict, exists—
consider whether, having regard to ASX’s obligations under
subparagraph 792A(c)(i) of the Act, the conflict, or potential
conflict, would be dealt with more appropriately and
efficiently by a means other than taking the action mentioned
in subregulation (2); and
(c) decide whether (and to what extent):
(i) to make decisions and take action; or
(ii) to require ASX to take action on ASIC’s behalf;
in relation to the matters mentioned in paragraphs (2)(a) and
(b).
(4) If ASIC decides to make decisions and take action (or to require
ASX to take action on ASIC’s behalf) as mentioned in
subregulation (2), ASIC:
(a) may consult with ASX and the competitor to identify the
listing rules of the market operated by ASX for which ASIC
needs to make the decisions and take the action; and
(b) must, as soon as practicable, decide the extent of ASIC’s
role, having regard to:
(i) the rationale for the listing rules of the market operated
by ASX; and
(ii) the desirability of treating the competitor consistently
with other entities listed, or seeking to be listed, on that
market; and
(iii) the extent to which action taken by ASIC is severable
from the wider supervision of the competitor’s
compliance with the listing rules; and
(iv) its consultations (if any) with the competitor and ASX.
(5) ASIC must, as soon as practicable, advise ASX and the competitor,
in writing, of decisions under paragraphs (3)(c) and (4)(b).
(6) If ASIC decides to make decisions and take action (or to require
ASX to take action on ASIC’s behalf) as mentioned in
subregulation (2):
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Licensing of financial markets Part 7.2
The Australian market licence: other matters Division 6
Regulation 7.2.16
Corporations Regulations 2001 87
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the decisions made and actions taken have effect despite
anything in the listing rules of the market operated by ASX;
and
(b) decisions made and actions taken by ASIC (or action taken
by ASX on ASIC’s behalf) have effect as if they were
decisions made and actions taken under the listing rules.
Note 1: It is expected that the listing rules of the market will support ASIC’s
power to take a supervisory role in relation to compliance with some
or all of the listing rules.
Note 2: Under section 246 of the Australian Securities and Investments
Commission Act 2001, ASIC is not liable to an action or other
proceeding for damages for or in relation to an act done or omitted in
good faith in performance or purported performance of any function,
or in exercise or purported exercise of any power, conferred or
expressed to be conferred by or under the corporations legislation.
Note 3: The powers available to ASIC include the power:
(a) to grant, or not to grant, waivers of the listing rules; and
(b) to impose conditions on which the grant of a waiver is made.
(7) If ASIC believes, on reasonable grounds, that:
(a) the period during which decisions will be made and action
will be taken in a particular case is likely to be more than 3
months; and
(b) the decisions and actions likely to be required are not
adequately reflected in the listing rules of the market
operated by ASX;
ASIC must notify ASX, in writing, of its belief.
(8) ASX must, as soon as practicable after being notified under
subregulation (7), amend the listing rules of the market operated by
ASX to the extent necessary to meet ASIC’s concerns.
Note: Amendments of the listing rules are subject to procedural
requirements, including possible disallowance, mentioned in
sections 793D and 793E of the Act.
(9) If ASIC decides that it is no longer necessary for decisions to be
made and action to be taken in relation to the particular conflict or
potential conflict, ASIC must notify ASX and the competitor of its
decision as soon as practicable.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.2 Licensing of financial markets
Division 6 The Australian market licence: other matters
Regulation 7.2.16
88 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(10) ASX may repeal any listing rule or amendment made for
subregulation (8) only if:
(a) the repeal or amendment is necessary or convenient to meet
ASIC’s concerns more effectively; or
(b) ASIC has notified ASX under subregulation (9).
(11) Paragraph (10)(b) does not prevent ASIC from:
(a) reviewing a particular conflict or potential conflict; and
(b) deciding, at any time (with or without complying with
paragraph (4)(a)), that it has again become necessary for
ASIC to make decisions and take action (or for ASIC to
require ASX to take action on ASIC’s behalf) in relation to
the conflict or potential conflict.
(12) If ASIC makes the decision mentioned in paragraph (11)(b), ASIC
must notify ASX and the competitor of its decision as soon as
practicable.
(13) For this regulation, ASX must:
(a) give ASIC the information and documentation that ASIC
reasonably needs to make decisions and take action under
this regulation; and
(b) establish administrative and procedural arrangements for that
purpose.
(14) A competitor may notify ASIC that the competitor no longer
wishes ASIC to make decisions and take action (or for ASIC to
require ASX to take action on ASIC’s behalf) in relation to the
conflict or potential conflict.
(15) If ASIC is notified under subregulation (14), ASIC must, as soon
as practicable:
(a) decide whether it will cease to make the decisions and take
the action (or cease to require ASX to take action on ASIC’s
behalf); and
(b) notify ASX and the competitor of its decision.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Licensing of financial markets Part 7.2
The Australian market licence: other matters Division 6
Regulation 7.2.16
Corporations Regulations 2001 89
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(16) If ASIC decides to cease to make decisions and take action (or to
cease to require ASX to take action on ASIC’s behalf), ASIC must
cease to make decisions and take action (or must cease to require
ASX to take action on ASIC’s behalf) in relation to the conflict or
potential conflict.
(17) If ASIC decides not to cease to make decisions and take action (or
not to cease to require ASX to take action on ASIC’s behalf),
ASIC must continue to make decisions and take action (or must
require ASX to take action on ASIC’s behalf) in relation to the
conflict or potential conflict.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.2A Supervision of financial markets
Division 7.2A.1 Enforceable undertakings
Regulation 7.2A.01
90 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 7.2A—Supervision of financial markets
Division 7.2A.1—Enforceable undertakings
7.2A.01 Enforceable undertakings
(1) For paragraph 798K(1)(d) of the Act, ASIC may accept a written
undertaking, entered into by a person who is alleged to have
contravened subsection 798H(1) of the Act, as an alternative to
civil proceedings.
(2) Without limiting subregulation (1), ASIC may accept an
undertaking that includes any of the following:
(a) an undertaking to take specified action within a specified
period;
(b) an undertaking to refrain from taking specified action;
(c) an undertaking to pay a specified amount within a specified
period to the Commonwealth or to some other specified
person.
Note: An undertaking may relate to an infringement notice given under
Division 7.2A.2 in relation to the alleged contravention. For example,
an infringement notice may require a person to enter into an
undertaking; a person may enter into an undertaking to comply with
an infringement notice; a person may enter into an undertaking if the
person does not comply with an infringement notice or the
infringement notice is withdrawn.
(3) If ASIC agrees, in writing, to the withdrawal or variation of the
undertaking, the person who entered into the undertaking may
withdraw or vary the undertaking.
(4) If ASIC is satisfied that the person who entered into the
undertaking has breached a term of the undertaking, ASIC may
apply to a Court for an order under subregulation (5).
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Financial services and markets Chapter 7
Supervision of financial markets Part 7.2A
Enforceable undertakings Division 7.2A.1
Regulation 7.2A.01
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(5) If the Court is satisfied that the person has breached a term of the
undertaking, the Court may make one or more of the following
orders:
(a) an order directing the person to comply with the term of the
undertaking;
(b) an order directing the person to pay to the Commonwealth an
amount not exceeding the amount of any financial benefit
that the person has obtained directly or indirectly and that is
reasonably attributable to the breach;
(c) an order directing the person to compensate another person
who has suffered loss or damage as a result of the breach;
(d) any other order that the Court considers appropriate.
(6) This regulation does not affect the liability of a person to civil
proceedings if ASIC does not accept an undertaking in relation to
the alleged contravention of subsection 798H(1) of the Act.
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Chapter 7 Financial services and markets
Part 7.2A Supervision of financial markets
Division 7.2A.2 Infringement notices
Regulation 7.2A.02
92 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 7.2A.2—Infringement notices
7.2A.02 Purpose of Division
(1) For subsection 798K(1) of the Act, the purpose of this Division is
to set out a scheme under which a person who is alleged to have
contravened subsection 798H(1) of the Act may do one or more of
the following as an alternative to civil proceedings:
(a) pay a penalty to the Commonwealth;
(b) undertake or institute remedial measures (including education
programs);
(c) accept sanctions other than the payment of a penalty to the
Commonwealth (including public censure, suspension for no
more than six months from performing certain financial
services in relation to a licensed market, or disgorgement of
profits);
(d) enter into an undertaking under regulation 7.2A.01, including
an undertaking to do an action mentioned in paragraph (a),
(b) or (c).
(2) This Division does not require ASIC to give an infringement notice
to a person in relation to the alleged contravention of
subsection 798H(1) of the Act.
(3) This Division does not affect the liability of a person to civil
proceedings if ASIC does not give an infringement notice to the
person in relation to the alleged contravention of
subsection 798H(1) of the Act.
(4) This Division does not affect the liability of a person to civil
proceedings if:
(a) ASIC gives an infringement notice to the person in relation to
the alleged contravention of subsection 798H(1) of the Act;
and
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Infringement notices Division 7.2A.2
Regulation 7.2A.03
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(b) either:
(i) the notice is withdrawn; or
(ii) the person does not comply with the notice in
accordance with regulation 7.2A.08.
(5) This Division does not limit or otherwise affect the penalty that a
Court could impose on the person for a contravention of
subsection 798H(1) of the Act.
7.2A.03 Definitions for Division 7.2A.2
In this Division:
compliance period has the meaning given by
subregulation 7.2A.08(2).
infringement notice means an infringement notice given under
regulation 7.2A.04.
recipient, in relation to an infringement notice, means the person to
whom ASIC gives the infringement notice or intends to give the
infringement notice under regulation 7.2A.04.
7.2A.04 When infringement notice can be given
(1) If ASIC has reasonable grounds to believe that a person has
contravened subsection 798H(1) of the Act, ASIC may give to the
person an infringement notice in relation to the alleged
contravention.
(2) ASIC may give a person an infringement notice that is in relation
to more than one alleged contravention of subsection 798H(1) of
the Act.
(3) If ASIC withdraws an infringement notice given to a person in
relation to the alleged contravention of subsection 798H(1) of the
Act, ASIC may give the person a new infringement notice in
relation to the alleged contravention.
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Chapter 7 Financial services and markets
Part 7.2A Supervision of financial markets
Division 7.2A.2 Infringement notices
Regulation 7.2A.05
94 Corporations Regulations 2001
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Example for subregulation (3): An infringement notice given to a person in
relation to an alleged contravention of subsection 798H(1) of the Act
may be withdrawn, and a new infringement notice given to the person
in relation to that alleged contravention, if the original infringement
notice contained an error.
7.2A.05 Statement of reasons must be given
(1) Before giving a recipient an infringement notice, ASIC must:
(a) give the recipient a written statement that sets out ASIC’s
reasons for believing that the recipient has contravened
subsection 798H(1) of the Act; and
(b) give the recipient, or a representative of the recipient, an
opportunity to:
(i) appear at a private hearing before ASIC; and
(ii) give evidence to ASIC; and
(iii) make submissions to ASIC;
in relation to the alleged contravention of subsection 798H(1)
of the Act.
(2) If a recipient, or a representative of a recipient, gives ASIC
evidence or information under paragraph (1)(b) in relation to the
alleged contravention of subsection 798H(1) of the Act, the
evidence or information is not admissible in evidence in any
proceedings against the recipient, other than proceedings relating
to the evidence or information being false or misleading.
7.2A.06 Contents of infringement notice
An infringement notice:
(a) must state the date on which it is given; and
(b) must be identified by a unique code; and
(c) must state the name and address of the recipient; and
(d) must state that it is being given by ASIC under
regulation 7.2A.04; and
(e) must specify details of each alleged contravention of
subsection 798H(1) of the Act to which the infringement
notice relates, including:
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Infringement notices Division 7.2A.2
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(i) the conduct that made up each alleged contravention
(including, to the extent known, the date on which it
occurred and the place at which it occurred); and
(ii) each market integrity rule that ASIC alleges the
recipient has contravened; and
(f) must, in relation to each market integrity rule that ASIC
alleges the recipient has contravened, state the maximum
pecuniary penalty that a Court could order the recipient to
pay for contravening the market integrity rule; and
(g) must, in relation to each alleged contravention of
subsection 798H(1) of the Act to which the infringement
notice relates:
(i) specify the penalty (if any) payable for each alleged
contravention of subsection 798H(1) of the Act; and
(ii) if subparagraph (i) applies:
(A) specify the total penalty that the recipient must
pay to the Commonwealth; and
(B) state that the penalty is payable to ASIC on
behalf of the Commonwealth; and
(C) explain how payment of the penalty can be
made; and
(iii) specify the remedial measures (if any) that the recipient
must undertake or institute; and
(iv) specify the sanctions (if any) that the recipient must
accept; and
(v) specify the terms of an undertaking (if any) that the
recipient must enter into under regulation 7.2A.01; and
(h) must state that the recipient may choose not to comply with
the infringement notice, but that if the recipient does not
comply, civil proceedings may be brought against the
recipient in relation to the alleged contravention; and
(i) must explain what the recipient must do to comply with the
infringement notice and the effect of compliance with the
infringement notice; and
(j) must state that the recipient may apply to ASIC:
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Chapter 7 Financial services and markets
Part 7.2A Supervision of financial markets
Division 7.2A.2 Infringement notices
Regulation 7.2A.07
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(i) for withdrawal of the notice under regulation 7.2A.11;
and
(ii) for an extension of time under regulation 7.2A.09; and
(k) must state that ASIC may publish details of the infringement
notice under regulation 7.2A.15; and
(l) may include any other information that ASIC considers
necessary.
Note: For sub-subparagraph (g)(ii)(A), the total penalty is the sum of the
penalties payable under subparagraph (g)(i).
7.2A.07 Amount of penalty payable to the Commonwealth
(1) The penalty payable (if any) for an alleged contravention of
subsection 798H(1) of the Act is the amount determined by ASIC.
Note: Subsection 798K(2) of the Act states that the penalty payable under
paragraph 798K(1)(a) of the Act in relation to a market integrity rule
must not exceed three-fifths of the penalty amount set out in the
market integrity rules in relation to the rule.
(2) If an infringement notice is in relation to more than one alleged
contravention of subsection 798H(1) of the Act, the total penalty
payable under the infringement notice is the sum of the penalties
payable (if any) for the alleged contraventions.
7.2A.08 Compliance with infringement notice
(1) A recipient complies with an infringement notice if, during the
compliance period, the recipient does all of the following:
(a) pays the penalty specified in the infringement notice under
sub-subparagraph 7.2A.06(g)(ii)(A) (if any);
(b) undertakes or institutes the remedial measures specified in
the infringement notice under subparagraph 7.2A.06(g)(iii)
(if any);
(c) accepts the sanctions specified in the infringement notice
under subparagraph 7.2A.06(g)(iv) (if any);
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Supervision of financial markets Part 7.2A
Infringement notices Division 7.2A.2
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(d) enters into an undertaking (including an undertaking to
comply with the infringement notice) with the terms
specified in the infringement notice under
subparagraph 7.2A.06(g)(v) (if any).
(2) The compliance period for an infringement notice:
(a) starts on the day on which the infringement notice is given to
the recipient; and
(b) ends:
(i) 27 days after the day on which the infringement notice
is given to the recipient; or
(ii) on another day permitted by this regulation.
(3) If the recipient applies for a further period of time in which to
comply with the infringement notice, and the application is
granted, the compliance period ends at the end of the further period
allowed.
(4) If the recipient applies for a further period of time in which to
comply with the infringement notice, and the application is
refused, the compliance period ends on the later of:
(a) 28 days after the day on which the infringement notice was
given to the recipient; and
(b) 7 days after the notice of refusal is given to the recipient.
(5) If the recipient applies for the infringement notice to be withdrawn,
and the application is refused, the compliance period ends 28 days
after the notice of refusal is given to the recipient.
7.2A.09 Extension of compliance period
(1) During the compliance period, a recipient may apply, in writing, to
ASIC for a further period of no more than 28 days in which to
comply with the infringement notice.
(2) The application must:
(a) specify the infringement notice’s unique identification code;
and
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Part 7.2A Supervision of financial markets
Division 7.2A.2 Infringement notices
Regulation 7.2A.10
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(b) set out the reasons for the application.
(3) Within 14 days after receiving the application, ASIC must:
(a) grant or refuse a further period no longer than the period
sought (and no more than 28 days); and
(b) notify the recipient in writing of the decision and, if the
decision is a refusal, the reasons for the decision.
(4) If ASIC refuses a further period under paragraph (3)(a), the
recipient may not make a further application under
subregulation (1) in relation to that infringement notice.
(5) If ASIC has not granted or refused a further period under
paragraph (3)(a) within 14 days after receiving the application,
ASIC is taken to have refused a further period.
7.2A.10 Effect of compliance with infringement notice
(1) Subject to subregulation (3), if:
(a) an infringement notice is given to a recipient in relation to an
alleged contravention of subsection 798H(1) of the Act; and
(b) the infringement notice is not withdrawn; and
(c) the recipient complies with the infringement notice;
the effects in subregulation (2) apply.
(2) The effects are:
(a) any liability of the recipient to the Commonwealth for the
alleged contravention of subsection 798H(1) of the Act is
discharged; and
(b) no civil or criminal proceedings may be brought or continued
by the Commonwealth against the recipient for the conduct
specified in the infringement notice as being the conduct that
made up the alleged contravention of subsection 798H(1) of
the Act; and
(c) no administrative action may be taken by ASIC under
section 914A, 915B, 915C or 920A of the Act against the
recipient for the conduct specified in the infringement notice
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Supervision of financial markets Part 7.2A
Infringement notices Division 7.2A.2
Regulation 7.2A.11
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as being the conduct that made up the alleged contravention
of subsection 798H(1) of the Act; and
(d) the recipient is not taken to have admitted guilt or liability in
relation to the alleged contravention; and
(e) the recipient is not taken to have contravened
subsection 798H(1) of the Act.
Note: Third parties are not prevented from commencing civil proceedings
against the recipient, including under sections 793C and 1101B of the
Act, and under section 1317J of the Act in relation to sections 1317G
and 1317HB of the Act. ASIC is not prevented from applying for an
order on behalf of a plaintiff in accordance with the Act.
(3) Subregulation (2) does not apply if the recipient has knowingly:
(a) provided false or misleading information to ASIC; or
(b) withheld evidence or information from ASIC;
in relation to the alleged contravention of subsection 798H(1) of
the Act.
7.2A.11 Application to withdraw infringement notice
(1) During the compliance period, a recipient of an infringement notice
may apply, in writing, to ASIC for the infringement notice to be
withdrawn.
(2) The application must:
(a) specify the infringement notice’s unique identification code;
and
(b) set out the reasons for the application.
(3) Within 14 days after receiving the application, ASIC must:
(a) withdraw or refuse to withdraw the infringement notice; and
(b) notify the recipient in writing of the decision and, if the
decision is a refusal, the reasons for the decision.
(4) Without limiting subregulation (3), ASIC may withdraw the
infringement notice after taking into account the following matters:
(a) whether the recipient has previously been found to have
contravened subsection 798H(1) of the Act;
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Chapter 7 Financial services and markets
Part 7.2A Supervision of financial markets
Division 7.2A.2 Infringement notices
Regulation 7.2A.12
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(b) the circumstances in which the contravention set out in the
infringement notice is alleged to have occurred;
(c) whether an infringement notice has previously been given to
the recipient in relation to an alleged contravention of
subsection 798H(1) of the Act, and whether the recipient
complied with the infringement notice;
(d) any other relevant matter.
(5) If, under paragraph (3)(a), ASIC refuses to withdraw the
infringement notice, the recipient may not make a further
application under subregulation (1) in relation to that infringement
notice.
(6) If ASIC has not withdrawn, or refused to withdraw, the
infringement notice within 14 days after receiving the application,
ASIC is taken to have refused to withdraw the infringement notice.
7.2A.12 Withdrawal of infringement notice by ASIC
(1) ASIC may withdraw an infringement notice given by ASIC
without an application under regulation 7.2A.11 having been made.
(2) Without limiting subregulation (1), ASIC may withdraw the
infringement notice after taking into account a matter mentioned in
paragraph 7.2A.11(4)(a), (b), (c) or (d).
7.2A.13 Notice of withdrawal of infringement notice
(1) A notice withdrawing an infringement notice must include the
following information:
(a) the name and address of the recipient;
(b) the date the infringement notice was given;
(c) the infringement notice’s unique identification code.
(2) The notice must also state that the infringement notice is
withdrawn.
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Supervision of financial markets Part 7.2A
Infringement notices Division 7.2A.2
Regulation 7.2A.14
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7.2A.14 Withdrawal of notice after compliance
(1) ASIC may withdraw an infringement notice after the recipient has
complied with the infringement notice only if the recipient agrees,
in writing, to the withdrawal.
(2) If an infringement notice is withdrawn after the penalty specified in
it (if any) has been paid, the Commonwealth must refund the
amount of the penalty to the person who paid it.
(3) If an infringement notice is withdrawn after the recipient has
complied with a requirement specified in the infringement notice:
(a) to undertake or institute remedial measures; or
(b) to accept sanctions other than a payment of a penalty to the
Commonwealth; or
(c) to enter into an undertaking;
the remedial measures, sanctions or undertaking are taken to no
longer be enforceable by ASIC.
7.2A.15 Publication of details of infringement notice
(1) If ASIC gives an infringement notice to a recipient, ASIC may, at
the end of the compliance period, publish details of the
infringement notice.
(2) If ASIC decides to publish details of the infringement notice, ASIC
must publish the details in accordance with either or both of
subregulations (3) and (4).
(3) ASIC may publish details of an infringement notice by publishing
in the Gazette:
(a) a copy of the infringement notice; and
(b) the following statements:
(i) a statement as to whether the recipient has complied
with the infringement notice;
(ii) if the recipient has complied with the infringement
notice, a statement that:
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Chapter 7 Financial services and markets
Part 7.2A Supervision of financial markets
Division 7.2A.2 Infringement notices
Regulation 7.2A.15
102 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(A) compliance is not an admission of guilt or
liability; and
(B) the recipient is not taken to have contravened
subsection 798H(1) of the Act;
(iii) if the recipient has not complied with the infringement
notice, a statement that:
(A) the giving of an infringement notice to a
recipient is only an allegation that the recipient
has contravened subsection 798H(1) of the Act;
and
(B) the recipient is not taken to have contravened
subsection 798H(1) of the Act.
(4) ASIC may publish details of an infringement notice by issuing a
written or oral statement that:
(a) includes an accurate summary of the details of the
infringement notice, including:
(i) the name of the recipient; and
(ii) the amount of the penalty specified in the infringement
notice (if any); and
(iii) the remedial measures specified in the infringement
notice (if any); and
(iv) the sanctions specified in the infringement notice (if
any); and
(v) the terms of an undertaking specified in the
infringement notice (if any); and
(vi) the conduct specified in the infringement notice as being
the conduct that made up the alleged contravention of
subsection 798H(1) of the Act; and
(b) includes the following statements:
(i) a statement as to whether the recipient has complied
with the infringement notice;
(ii) if the recipient has complied with the infringement
notice, a statement that:
(A) compliance is not an admission of guilt or
liability; and
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Financial services and markets Chapter 7
Supervision of financial markets Part 7.2A
Infringement notices Division 7.2A.2
Regulation 7.2A.15
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(B) the recipient is not taken to have contravened
subsection 798H(1) of the Act;
(iii) if the recipient has not complied with the infringement
notice, a statement that:
(A) the giving of an infringement notice to a
recipient is only an allegation that the recipient
has contravened subsection 798H(1) of the Act;
and
(B) the recipient is not taken to have contravened
subsection 798H(1) of the Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.3 Licensing of clearing and settlement facilities
Division 1 Regulation of CS facility licensees: licensees’ obligations
Regulation 7.3.01
104 Corporations Regulations 2001
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Part 7.3—Licensing of clearing and settlement
facilities
Division 1—Regulation of CS facility licensees: licensees’
obligations
7.3.01 Obligation to inform ASIC of certain matters: becoming
director, secretary or executive officer of CS facility
licensee
(1) This regulation applies if a person becomes a director, secretary or
executive officer of a market licensee or of a holding company of a
CS facility licensee (including when the person changes from one
of those positions to another).
(2) For subsection 821B(4) of the Act, the information to be given to
ASIC by the CS facility licensee is:
(a) the person’s name and contact details; and
(b) the date of appointment to the position; and
(c) the person’s educational qualifications and financial market
experience; and
(d) if the CS facility licensee is aware of any details of a
conviction of the kind mentioned in subsection 206B(1) of
the Act—the details; and
(e) whether the CS facility licensee knows whether the person:
(i) is an undischarged bankrupt; or
(ii) has entered into a deed of arrangement or composition
of a kind mentioned in subsections 206B(3) and (4) of
the Act;
and, if the CS facility licensee knows the information, details
of what the CS facility licensee knows.
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Licensing of clearing and settlement facilities Part 7.3
Regulation of CS facility licensees: licensees’ obligations Division 1
Regulation 7.3.02
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7.3.02 Obligation to inform ASIC of certain matters: ceasing to be
director, secretary or executive officer of CS facility
licensee
(1) This regulation applies if a person ceases to be a director, secretary
or executive officer of a CS facility licensee or of a holding
company of a CS facility licensee (including when the person
changes from one of those positions to another).
(2) For subsection 821B(4) of the Act, the information to be given to
ASIC by the CS facility licensee is:
(a) the name and contact details of the person; and
(b) the position that the person held; and
(c) the date on which the person ceased to hold the position; and
(d) if the person ceases to be a director, secretary or executive
officer because the person is changing from the position to
another in the company, the new position; and
(e) if the reason for ceasing to hold the position is:
(i) because of a contravention of the Corporations Act or
another law of a State or Territory; or
(ii) because the person has become an undischarged
bankrupt;
details of the reason.
7.3.03 Obligation to inform ASIC of certain matters: voting power in
CS facility licensee
(1) This regulation applies if a CS facility licensee becomes aware that
a person has come to have, or has ceased to have, more than 15%
of the voting power in the CS facility licensee or in a holding
company of the CS facility licensee.
(2) For subsection 821B(4) of the Act, the information to be given to
ASIC by the CS facility licensee is:
(a) the person’s name and contact details; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.3 Licensing of clearing and settlement facilities
Division 1 Regulation of CS facility licensees: licensees’ obligations
Regulation 7.3.04
106 Corporations Regulations 2001
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(b) if known by the CS facility licensee, the date on which the
person came to have, or ceased to have, more than 15% of
the voting power; and
(c) if the CS facility licensee knows the voting power that the
person had immediately before the person came to have, or
ceased to have, more than 15% of the voting power, that
voting power; and
(d) whether the CS facility licensee knows the manner in which
the person came to have, or ceased to have, more than 15%
of the voting power, and, if the CS facility licensee knows
the manner, details of what the CS facility licensee knows.
7.3.04 Annual report of CS facility licensee
For subsection 821E(2) of the Act, if an annual report by a CS
facility licensee does not contain any of the following information,
the information must accompany the annual report:
(a) a description of the activities the CS facility licensee has
undertaken in the financial year;
(b) the resources (including financial, technological and human
resources) that the CS facility licensee had available, and
used, in order to ensure that it has complied with its
obligations in Chapter 7 of the Act, and, in particular, the
obligation contained in subparagraph 821A(c)(i) of the Act;
(c) an analysis of the extent to which the CS facility licensee
considers that the activities undertaken, and resources used,
have resulted in full compliance with all its obligations under
Chapter 7 of the Act.
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Financial services and markets Chapter 7
Licensing of clearing and settlement facilities Part 7.3
Regulation of CS facility licensees: the facility’s operating rules and procedures
Division 2
Regulation 7.3.05
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Division 2—Regulation of CS facility licensees: the
facility’s operating rules and procedures
7.3.05 Content of licensed CS facility’s operating rules
For subsection 822A(1) of the Act, the following matters are
matters with which the operating rules of a licensed CS facility
must deal:
(a) the regulated services provided by the licensed CS facility,
including the means by which obligations of parties to
transactions relating to financial products will be met through
the licensed CS facility;
(b) matters relating to risk in the licensed CS facility;
(c) access to the licensed CS facility, including the criteria for
determining persons who are eligible to be participants and
the ongoing requirements for participants;
(d) suspension and expulsion of participants from the licensed
CS facility;
(e) disciplinary action against participants;
(f) procedures, to be followed by participants, to address risks
that are relevant to the licensed CS facility;
(g) requirements to facilitate the monitoring of compliance by
participants with the operating rules of the licensed CS
facility;
(h) the handling of defaults;
(i) any obligations on participants and issuers that are necessary
to ensure that the CS facility licensee is able to comply with
subparagraph 821A(c)(i) of the Act;
(j) if the licensed CS facility is a prescribed CS facility—
arrangements for the transfer of financial products that are
likely to be transferred using the licensed CS facility.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.3 Licensing of clearing and settlement facilities
Division 2 Regulation of CS facility licensees: the facility’s operating rules and
procedures
Regulation 7.3.06
108 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.3.06 Content of licensed CS facility’s written procedures
For subsection 822A(2) of the Act, the following matters are
matters in respect of which a licensed CS facility must have written
procedures:
(a) arrangements to ensure the integrity and security of systems
(including computer systems);
(b) identifying and monitoring risks that are relevant to the
licensed CS facility;
(c) the development of rules and procedures to address those
risks;
(d) exchange of appropriate information with:
(i) other clearing and settlement facilities; and
(ii) financial markets; and
(iii) ASIC and the Reserve Bank of Australia;
relating to participants and their activities that are relevant to
the licensed CS facility;
(e) the provision of information about the procedures of the
licensed CS facility, including rights, obligations and risks
relating to the facility;
(f) arrangements for supervising the licensed CS facility,
including the monitoring of compliance by participants and
issuers with the operating rules of the licensed CS facility.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Licensing of clearing and settlement facilities Part 7.3
Regulation of CS facility licensees: powers of the Minister and ASIC Division 3
Regulation 7.3.07
Corporations Regulations 2001 109
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 3—Regulation of CS facility licensees: powers of
the Minister and ASIC
7.3.07 Agencies for compliance assessment
For paragraph 823C(5)(d) of the Act, the following agencies are
prescribed:
(a) the Clean Energy Regulator;
(aa) the Australian Competition and Consumer Commission;
(b) the Australian Prudential Regulation Authority;
(c) the Australian Taxation Office;
(d) the Australian Transaction Reports and Analysis Centre;
(e) an authority of a State or Territory having functions and
powers similar to those of the Director of Public
Prosecutions;
(f) the police force or service of each State and the Northern
Territory;
(g) the Department of Consumer and Employment Protection of
Western Australia;
(ga) the Commissioner of State Revenue of Western Australia;
(h) the Department of Fair Trading of New South Wales;
(i) the Office of Fair Trading and Business Affairs of Victoria;
(ia) the State Revenue Office of Victoria;
(j) the Office of Consumer Affairs of Queensland;
(ja) the Office of State Revenue of Queensland;
(k) the Office of Consumer and Business Affairs of South
Australia;
(l) the Office of Consumer Affairs and Fair Trading of
Tasmania;
(la) the Department of Treasury and Finance of Tasmania;
(m) the Consumer Affairs Bureau of the Australian Capital
Territory;
(n) the Fair Trading Group of the Northern Territory.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.3 Licensing of clearing and settlement facilities
Division 3 Regulation of CS facility licensees: powers of the Minister and ASIC
Regulation 7.3.08
110 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.3.08 Agencies for compliance assessment
For paragraph 823CA(4)(d) of the Act, the following agencies are
prescribed:
(a) the Clean Energy Regulator;
(aa) the Australian Competition and Consumer Commission;
(b) the Australian Prudential Regulation Authority;
(c) the Australian Taxation Office;
(d) the Australian Transaction Reports and Analysis Centre;
(e) an authority of a State or Territory having functions and
powers similar to those of the Director of Public
Prosecutions;
(f) the police force or service of each State and the Northern
Territory;
(g) the Department of Consumer and Employment Protection of
Western Australia;
(ga) the Commissioner of State Revenue of Western Australia;
(h) the Department of Fair Trading of New South Wales;
(i) the Office of Fair Trading and Business Affairs of Victoria;
(ia) the State Revenue Office of Victoria;
(j) the Office of Consumer Affairs of Queensland;
(ja) the Office of State Revenue of Queensland;
(k) the Office of Consumer and Business Affairs of South
Australia;
(l) the Office of Consumer Affairs and Fair Trading of
Tasmania;
(la) the Department of Treasury and Finance of Tasmania;
(m) the Consumer Affairs Bureau of the Australian Capital
Territory;
(n) the Fair Trading Group of the Northern Territory.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Licensing of clearing and settlement facilities Part 7.3
The Australian CS facility licence: applications (general) Division 4
Regulation 7.3.09
Corporations Regulations 2001 111
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4—The Australian CS facility licence: applications
(general)
7.3.09 Application of Division 4
This Division applies in relation to a body corporate that applies
for an Australian CS facility licence that may be granted under
subsection 824B(1) of the Act.
7.3.10 Information
For paragraph 824A(1)(a) of the Act, the following information is
required as part of an application by the body corporate for an
Australian CS facility licence:
(a) the body corporate’s name, address and contact details;
(b) the name, address and contact details of any person who will
act on behalf of the body corporate in relation to the
application;
(c) details of the body corporate’s major shareholders and
organisation, including:
(i) the name, address and contact details of each director;
and
(ii) the name, address and contact details of each secretary;
and
(iii) the name, address and contact details of each executive
officer of the body corporate; and
(iv) whether any director, secretary or executive officer is,
or has been, disqualified from managing a corporation
under a law of this jurisdiction or another jurisdiction;
(d) a description of the body corporate’s business or functions,
other than the operation of the clearing and settlement
facility;
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.3 Licensing of clearing and settlement facilities
Division 4 The Australian CS facility licence: applications (general)
Regulation 7.3.10
112 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(e) the services in respect of which the Australian CS facility
licence is sought, including details of:
(i) the financial products for which clearing and settlement
facilities are to be provided; and
(ii) the nature of each interest in a financial product that is
to be transferred using the clearing and settlement
facility; and
(iii) the mechanisms to be used by the body corporate to
operate the clearing and settlement facility, including (if
applicable) arrangements to limit the risk of default by a
party to a transaction;
(f) whether the body corporate has applied, or intends to apply,
to become a prescribed CS facility under section 761A of the
Act;
(g) details of the technological resources that will be used in the
operation of the clearing and settlement facility, including
details of:
(i) the purpose of the resources; and
(ii) how the resources are to be supplied, managed,
maintained and upgraded; and
(iii) how the security of information technology systems is
to be protected;
(h) details of the arrangements for dealing with conflicts between
the body corporate’s commercial interests and its obligations
to supervise and monitor the clearing and settlement facility;
(i) details of the arrangements for the supervision of employees
of the body corporate who have duties and responsibilities of
a kind that supervision of the employees is necessary to
protect the integrity of the operation of the clearing and
settlement facility;
(j) details of the arrangements for managing counterparty risk,
including the risks arising from a counterparty being unable
to meet its obligations arising out of clearing, settlement or
clearing and settlement transactions using the facility;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Licensing of clearing and settlement facilities Part 7.3
The Australian CS facility licence: applications (general) Division 4
Regulation 7.3.11
Corporations Regulations 2001 113
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(k) if the ACCC has made a decision in relation to the clearing
and settlement facility that the body corporate will operate—
details of the decision.
Example of interests in a financial product: Legal title or an equitable interest.
Example of mechanisms to operate the clearing and settlement facility:
1 The way in which transfers are to be effected.
2 The way in which payment obligations are to be settled.
7.3.11 Documents
For paragraph 824A(1)(b) of the Act, the following documents are
required as part of an application by the body corporate for an
Australian CS facility licence:
(a) the body corporate’s current or proposed operating rules and
written procedures;
(b) if applicable—the body corporate’s constitution;
(c) a copy of any agreement material to:
(i) the way in which the clearing and settlement facility is
to be operated; and
(ii) the way in which the financing of the clearing and
settlement facility, and the other resources used to
operate it, will be organised; and
(iii) the body corporate’s constitution or governance; and
(iv) the appointment or employment of directors, secretaries
and executive officers of the body corporate;
(d) a copy of any agreement, or proposed agreement, between
the body corporate and a market licensee relating to services
to be offered to the market licensee;
(e) a copy of any agreement, or proposed agreement, relating to
the outsourcing or delegation of a function, facility or service
in relation to the facility by the body corporate to another
person;
(f) if the body corporate:
(i) uses, or is likely to use, a counterparty; or
(ii) will be operating as a central counterparty;
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.3 Licensing of clearing and settlement facilities
Division 4 The Australian CS facility licence: applications (general)
Regulation 7.3.11
114 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
an assessment by an independent auditor of the adequacy of
the body corporate’s arrangements for managing
counterparty risk;
(g) if the body corporate is a disclosing entity—a copy of each
half-year financial report of the body corporate for:
(i) the period of 3 years immediately before the application
was made; or
(ii) the shorter period in which the body corporate has
carried on a business;
(h) if the body corporate is not a disclosing entity—a copy of
each annual financial report of the body corporate for:
(i) the period of 3 years immediately before the application
was made; or
(ii) the shorter period in which the body corporate has
carried on a business;
(i) if the body corporate is a related body corporate—a copy of
the relevant consolidated annual and half-year financial
reports for:
(i) the period of 3 years immediately before the application
was made; or
(ii) the shorter period in which the body corporate has
carried on a business;
(j) a report, by a qualified person who is independent of the
body corporate, about the anticipated financial resource
requirements of the clearing and settlement facility, including
details of:
(i) the total anticipated fixed expenditure and variable
expenditure for the first 12 months of operation of the
clearing and settlement facility; and
(ii) the total anticipated revenue for the first 12 months of
operation of the clearing and settlement facility and
other sources of financial resources; and
(iii) the body corporate’s contingency arrangements in the
event of circumstances occurring that affect the body
corporate’s ability to operate the clearing and settlement
facility;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Licensing of clearing and settlement facilities Part 7.3
The Australian CS facility licence: applications (general) Division 4
Regulation 7.3.11
Corporations Regulations 2001 115
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(k) details of the body corporate’s business plan, or other
strategic planning, for the first 12 months of operation of the
clearing and settlement facility, that are not included in the
other documents mentioned in this regulation.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.3 Licensing of clearing and settlement facilities
Division 5 The Australian CS facility licence: applications (overseas clearing and
settlement facility)
Regulation 7.3.12
116 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5—The Australian CS facility licence: applications
(overseas clearing and settlement facility)
7.3.12 Application of Division 5
This Division applies in relation to a body corporate that applies
for an Australian CS facility licence that may be granted under
subsection 824B(2) of the Act.
7.3.13 Information
For paragraph 824A(1)(a) of the Act, the following information is
required as part of an application by the body corporate for an
Australian CS facility licence:
(a) the body corporate’s name, address and contact details in this
jurisdiction;
(b) the address and contact details of the body corporate’s
principal place of business in the foreign country in which its
clearing and settlement facility is located;
(c) whether the body corporate is registered under Division 2 of
Part 5B.2 of the Act;
(d) the services in respect of which the Australian CS facility
licence is sought, including details of the financial products
for which clearing and settlement facilities are to be
provided;
(e) details of the body corporate’s major shareholders and
organisation, including any details that have not already been
given to ASIC in accordance with Division 2 of Part 5B.2 of
the Act of:
(i) each person whose duties are comparable to those of a
director; and
(ii) each person whose duties are comparable to those of a
secretary; and
(iii) each person whose duties are comparable to those of an
executive officer of the body corporate.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Licensing of clearing and settlement facilities Part 7.3
The Australian CS facility licence: applications (overseas clearing and settlement
facility) Division 5
Regulation 7.3.14
Corporations Regulations 2001 117
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.3.14 Documents
For paragraph 824A(1)(b) of the Act, the documents required as
part of an application by the body corporate for an Australian CS
facility licence are:
(a) the body corporate’s authorisation to operate the clearing and
settlement facility in the foreign country in which its clearing
and settlement facility is located (the home country),
including any conditions imposed on the body corporate’s
operation of its clearing and settlement facility in the home
country; and
(b) a copy of any agreement, or draft agreement, between the
body corporate and a market licensee relating to the clearing
and settlement facility services to be provided; and
(c) sufficient documentation to allow the Minister to be satisfied
that the regulation of the clearing and settlement facility in its
home country is equivalent to regulation under the Act.
Example for paragraph (c): Copies of the relevant legislation, rules and
procedures in the home country.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.4 Limits on involvement with licensees
Regulation 7.4.01
118 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 7.4—Limits on involvement with licensees
7.4.01 Widely held market body
For section 850A of the Act, the following bodies corporate are
prescribed:
(a) Australian Stock Exchange Limited (in its capacity as a body
corporate that has an Australian market licence or an
Australian CS facility licence);
(b) ASX Settlement and Transfer Corporation Pty Limited (also
known as ‘ASTC’) (in its capacity as a body corporate that
has an Australian CS facility licence);
(c) SFE Corporation Limited, in its capacity as the holding
company of the following bodies corporate that have an
Australian market licence or an Australian CS facility
licence:
(i) Austraclear Limited;
(ii) SFE Clearing Corporation Pty Limited;
(iii) Sydney Futures Exchange Limited;
(d) SFE Clearing Corporation Pty Limited (in its capacity as a
body corporate that has an Australian CS facility licence);
(e) Sydney Futures Exchange Limited (in its capacity as a body
corporate that has an Australian market licence);
(f) ACH (in its capacity as a body corporate that has an
Australian CS facility licence);
(g) Austraclear Limited (in its capacity as a body corporate that
has an Australian CS facility licence).
7.4.02 Record-keeping: market licensee
(1) For paragraph 854A(1)(b) of the Act, a market licensee must keep
the following records:
(a) a list of names and contact details of the directors, secretaries
and executive officers of the market licensee;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Limits on involvement with licensees Part 7.4
Regulation 7.4.03
Corporations Regulations 2001 119
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) a list of names and contact details of individuals who hold
more than 15% of the voting power in the market licensee,
prepared in accordance with the information given under
regulation 7.4.04.
(2) The market licensee must keep the records for at least 5 years.
7.4.03 Record-keeping: CS facility licensee
(1) For paragraph 854A(1)(b) of the Act, a CS facility licensee must
keep the following records:
(a) a list of names and contact details of the directors, secretaries
and executive officers of the CS facility licensee;
(b) a list of names and contact details of individuals who hold
more than 15% of the voting power in the CS facility
licensee, prepared in accordance with the information given
under regulation 7.4.04.
(2) The CS facility licensee must keep the records for at least 5 years.
7.4.04 Information for widely held market body
(1) This regulation applies to a person who has:
(a) a substantial holding in a widely held market body; and
(b) voting power in the widely held market body.
(2) For paragraph 854A(1)(d) of the Act, the person must give that
information to the widely held market body.
(3) However, subregulation (2) does not require the person to give
information that the person has already given to the widely held
market body in accordance with Chapter 6C of the Act.
(4) The person must give the information by the time described in
subsection 671B(6) of the Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.5 Compensation regimes for financial markets
Division 1 Preliminary
Regulation 7.5.01
120 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 7.5—Compensation regimes for financial
markets
Division 1—Preliminary
7.5.01 Definitions for Part 7.5
In this Part:
becoming insolvent has the meaning given by regulation 7.5.02.
claim means a claim against the SEGC.
dealer has the meaning given by regulation 7.5.03.
discharge, in relation to an obligation, means:
(a) in the case of a purchase obligation—discharge the whole of
the obligation; or
(b) in any other case—discharge the whole or a part of the
obligation.
excluded person has the meaning given by regulation 7.5.04.
obligations:
(a) in relation to a participant of a participating market licensee,
in relation to a person, includes obligations arising under:
(i) a law; or
(ii) the participating market licensee’s operating rules; or
(iv) an agreement between;
(A) in any case—the participant and the person; or
(B) if the participant is a partner in a participant of
the participating market licensee—the
last-mentioned participant and the person; and
(b) in relation to a participant of the licensed CS facility operated
by ACH, in relation to a person, includes obligations arising
under:
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Compensation regimes for financial markets Part 7.5
Preliminary Division 1
Regulation 7.5.01
Corporations Regulations 2001 121
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) a law; or
(ii) the operating rules of ACH; or
(iv) an agreement between;
(A) in any case—the participant and the person; or
(B) if the participant is a partner in a participant of
the licensed CS facility operated by ACH—the
last-mentioned participant and the person; and
(c) in relation to a participant of the licensed CS facility operated
by ASTC, in relation to a person, includes obligations arising
under:
(i) a law; or
(ii) the ASTC operating rules; or
(iii) an agreement between:
(A) in any case—the participant and the person; or
(B) if the participant is a partner in a participant of
the licensed CS facility operated by ASTC—the
last-mentioned participant and the person.
orderly market means an orderly market on a financial market of:
(a) a participating market licensee; or
(b) an Exchange body.
participating market licensee means a market licensee that is a
member of the SEGC.
prescribed period, in relation to a sale or purchase of securities by
a dealer, means:
(a) if the operating rules of ACH or a participating market
licensee, in which the dealer is a participant, being those
operating rules as in force when the agreement for the sale or
purchase is made, prescribe a period, for this paragraph, in
relation to a class of sales or purchases that includes the sale
or purchase—that period; or
(b) in any other case—a period that is reasonable, having regard
to all the circumstances relating to the sale or purchase.
property includes money, securities and scrip.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.5 Compensation regimes for financial markets
Division 1 Preliminary
Regulation 7.5.01
122 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
purchase obligation means an obligation to transfer securities
under an agreement for the purchase of securities, if the purchase
is, for Subdivision 4.3, a reportable transaction.
purchase price, in relation to a purchase of securities by a dealer
on behalf of a person, means the total of:
(a) the amount of the consideration for the purchase; and
(b) any brokerage fees and other charges, and any stamp duty
and other duties and taxes, payable by the person to the
dealer in connection with the purchase.
relative, in relation to a person, means a parent or remoter lineal
ancestor, son, daughter or remoter issue, or brother or sister, of the
person.
reportable transaction means a transaction that is entered into
before or after the commencement of this Part in relation to
securities, and:
(a) is or has at any time been a sale or purchase, by a participant
(the first dealer) of a participating market licensee, of
securities, if the securities are quoted on a financial market of
a participating market licensee when the agreement for the
sale or purchase is made, and:
(i) in any case—the participating market licensee’s
operating rules, as in force when the agreement for the
sale or purchase is made, require or permit the first
dealer to report the sale or purchase to the participating
market licensee; or
(ii) if the sale or purchase is to or from, as the case may be,
a participant (the second dealer) of a participating
market licensee—the last-mentioned participating
market licensee’s operating rules, as in force when the
agreement for the sale or purchase is made, require or
permit the second dealer to report to the last-mentioned
participating market licensee the purchase or sale of the
securities by the second dealer from or to, as the case
may be, the first dealer; or
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Compensation regimes for financial markets Part 7.5
Preliminary Division 1
Regulation 7.5.01A
Corporations Regulations 2001 123
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) is an agreement to buy or sell securities, because of the
exercise of an option contract over securities, if:
(i) the option contract was entered into on the financial
market of a participating market licensee; and
(ii) the agreement is required or permitted, by the operating
rules of ACH or the participating market licensee, to be
reported to the participating market licensee.
sale and purchase of securities has the meaning given by
regulation 7.5.06.
securities business has the meaning given by regulations 7.5.07
and 7.5.08.
security has the meaning given by regulation 7.5.09.
transfer of securities has the meaning given by regulation 7.5.10.
transferor has the meaning given by paragraph 7.5.53(4)(b).
transferred securities has the meaning given by
paragraph 7.5.53(4)(c).
unauthorised execution has the meaning given by
paragraph 7.5.53(4)(a).
Note: Definitions of other expressions that are used in this Part, including:
participant
prescribed CS facility
SEGC
are found in sections 9, 761A and 880B of the Act.
7.5.01A Modification of Act: compensation regimes
For subsection 893A(1) of the Act, Part 7.5 of the Act is modified
in relation to a licensed market as set out in Schedule 8C.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.5 Compensation regimes for financial markets
Division 1 Preliminary
Regulation 7.5.02
124 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.5.02 Meaning of becoming insolvent
(1) A body corporate becomes insolvent at a particular time if, and
only if, at that time:
(a) an administrator of the body corporate is appointed under
section 436A, 436B or 436C; or
(b) the body corporate commences to be wound up or ceases to
carry on business; or
(c) a receiver, or a receiver and manager, of property of the body
corporate is appointed, whether by a court or otherwise; or
(d) the body corporate enters into a compromise or arrangement
with its creditors or a class of them.
(2) A natural person becomes insolvent at a particular time if, and only
if, at that time:
(a) a creditor’s petition or a debtor’s petition is presented under
Division 2 or 3 of Part IV of the Bankruptcy Act 1966
against:
(i) the person; or
(ii) a partnership in which the person is a partner; or
(iii) 2 or more joint debtors who include the person; or
(b) the person’s property becomes subject to control under
Division 2 of Part X of the Bankruptcy Act 1966; or
(c) the person executes a deed of assignment or deed of
arrangement under Part X of the Bankruptcy Act 1966; or
(d) the person’s creditors accept a composition under Part X of
the Bankruptcy Act 1966.
(3) A reference in subregulation (2) to a Division or Part of the
Bankruptcy Act 1966 includes a reference to provisions of a law of
an external Territory, or a country other than Australia or an
external Territory, that correspond to that Division or Part.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Compensation regimes for financial markets Part 7.5
Preliminary Division 1
Regulation 7.5.03
Corporations Regulations 2001 125
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.5.03 Meaning of dealer
(1) For this Part (other than Subdivisions 4.7, 4.9 and 4.10), a person is
a dealer if the person is, or has been at any time, a participant of a
participating market licensee.
(3) For Subdivisions 4.7, 4.9 and 4.10, a person is a dealer if the
person is:
(a) a participant of a participating market licensee; or
(b) a participant of the licensed CS facility operated by ACH.
7.5.04 Meaning of excluded person
(1) For this Part, an excluded person, in relation to a participant of a
participating market licensee, or a participant of the licensed CS
facility operated by ACH, means:
(a) in any case—the participant; or
(b) if the participant is not a body corporate:
(i) a person who is the spouse, or who is a relative, of the
participant; or
(ii) a trustee of a trust in relation to which the participant or
a person of a kind mentioned in subparagraph (i) is
capable of benefiting; or
(iii) a body corporate of which the participant is an officer;
or
(iv) a body corporate in which the participant or a person of
a kind mentioned in subparagraph (i) has a controlling
interest; or
(v) a body corporate in which the participant, and a person
of a kind mentioned in subparagraph (i) have a
controlling interest; or
(vi) a body corporate in which the participant and 2 or more
persons of a kind mentioned in subparagraph (i) have a
controlling interest; or
(vii) a body corporate in which 2 or more persons of a kind
mentioned in subparagraph (i) together have a
controlling interest; or
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.5 Compensation regimes for financial markets
Division 1 Preliminary
Regulation 7.5.04
126 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) if the participant is:
(i) a person who is an officer of the body corporate; or
(ii) a body corporate that is related to the first-mentioned
body corporate; or
(iii) a person who is the spouse, or who is a relative, of a
person of a kind mentioned in subparagraph (i); or
(iv) a trustee of a trust in relation to which a person of a kind
mentioned in subparagraph (i) or (iii) is capable of
benefiting; or
(v) a body corporate in which a person of a kind mentioned
in subparagraph (i) or (iii) has, or 2 or more such
persons together have, a controlling interest; or
(d) if the participant is a partner in a participant of the
participating market licensee or licensed CS facility and is
not a body corporate:
(i) a person who is a partner in the participant; or
(ii) a person who is the spouse, or who is a relative, of a
partner (not being a body corporate) in the participant;
or
(iii) a trustee of a trust in relation to which a person of a kind
mentioned in subparagraph (i) or (ii) is capable of
benefiting; or
(iv) a person who is an officer of a body corporate that is a
partner in the participant; or
(v) a body corporate of which a person of a kind mentioned
in subparagraph (i), (ii) or (iii) is an officer, or in which
such a person has, or 2 or more such persons together
have, a controlling interest; or
(vi) a person who is a participant of the licensed CS facility
operated by ACH; or
(e) if the participant is a partner in a participant of the
participating market licensee or licensed CS facility and is a
body corporate:
(i) a person who is an officer of a body corporate that is a
partner in the participant; or
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(ii) a body corporate that is related to the first-mentioned
body corporate; or
(iii) a person who is a partner in the participant; or
(iv) a person who is the spouse, or who is a relative, of a
person (other than a body corporate) of a kind
mentioned in subparagraph (i) or (iii); or
(v) a trustee of a trust in relation to which a person of a kind
mentioned in subparagraph (i), (iii) or (iv) is capable of
benefiting; or
(vi) a body corporate in which a person of a kind mentioned
in subparagraph (i), (iii) or (iv) has, or 2 or more such
persons together have, a controlling interest; or
(vii) a person who is a participant of the licensed CS facility
operated by ACH.
(2) A reference in subregulation (1) or (1A) to a relative of a person
includes a reference to a relative of the spouse (if any) of the
person.
(3) A reference in subregulation (1) or (1A) to an officer of a body
corporate is a reference to:
(a) a director, secretary or executive officer of the body
corporate; or
(b) a person who is an officer of the body corporate by virtue of
paragraph (b), (c), (d) or (e) of the definition of officer in
section 9 of the Act.
7.5.06 Meaning of sale and purchase of securities
(1) A sale and purchase of securities are taken to consist of 2 distinct
transactions:
(a) the sale of the securities by the seller to the buyer; and
(b) the purchase of the securities by the buyer from the seller.
(2) Except so far as the contrary intention appears, a reference in this
Part to a sale, or to a purchase, includes a reference to a sale or
purchase the agreement for which is made outside this jurisdiction.
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Chapter 7 Financial services and markets
Part 7.5 Compensation regimes for financial markets
Division 1 Preliminary
Regulation 7.5.07
128 Corporations Regulations 2001
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(3) For this Part, an agreement to buy or sell securities, because of the
exercise of an option contract over securities, if:
(a) the option contract was entered into on the financial market
of a participating market licensee; and
(b) the agreement is required, by the operating rules of ACH or
the participating market licensee, to be reported to the
participating market licensee;
is taken to be a sale and purchase of securities.
7.5.07 Meaning of securities business: general
(1) For this Part (other than Subdivision 4.9), a securities business is a
financial services business of dealing in securities.
(2) Subregulations (4), (5) and (6) apply for the purposes of
determining:
(a) whether or not a person carries on, or holds himself, herself
or itself out as carrying on, a securities business; and
(b) what constitutes such a business carried on by a person.
(3) Subregulation (6) also applies for the purposes of determining
whether or not a person deals in securities.
(4) An act done on behalf of the person by:
(a) the holder of a dealers licence; or
(b) an exempt dealer; or
(c) the holder of an Australian financial services licence; or
(d) a person who is exempted from holding an Australian
financial services licence by virtue of subsection 911A(2),
(2A), (2B), (2C), (2D) or (2E) of the Act;
must be disregarded.
(5) An act that the person does:
(a) while employed by, or acting for or by arrangement with, a
dealer; and
(b) as an employee or agent of, or otherwise on behalf of, on
account of, or for the benefit of, the dealer; and
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Preliminary Division 1
Regulation 7.5.08
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(c) in connection with a securities business carried on by the
dealer;
is to be disregarded.
(6) An act or acts done by the person that constitutes or together
constitute a dealing by the person in a futures contract (within the
meaning of the old Corporations Act) is or are to be disregarded.
7.5.08 Meaning of securities business: Subdivision 4.9
For Subdivision 4.9, each of the following is a securities business:
(a) a financial services business of dealing in securities;
(b) a financial services business of dealing in financial products
that were option contracts within the meaning of
paragraph 92(1)(e) of the old Corporations Act.
7.5.09 Meaning of security
(1) For this Part (other than Subdivision 4.7), each of the following is a
security:
(a) a security mentioned in section 761A of the Act;
(b) Division 3 securities;
(c) non-Division 3 securities.
(2) For Subdivision 4.7, each of the following is a security:
(a) Division 3 securities;
(b) non-Division 3 securities.
7.5.10 Meaning of transfer of securities
(1) A transfer of securities takes place between a person (the
transferor) and another person (the transferee) only if:
(a) in the case of an ASTC-regulated transfer—the transferor
does, or causes to be done, all things that the ASTC operating
rules require to be done by or on behalf of the transferor to
effect the transfer; or
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Chapter 7 Financial services and markets
Part 7.5 Compensation regimes for financial markets
Division 1 Preliminary
Regulation 7.5.13
130 Corporations Regulations 2001
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(b) in any other case—the transferor delivers, or causes to be
delivered, to the transferee documents (transfer documents)
that are sufficient to enable the transferee:
(i) except in the case of Division 3 rights—to become
registered as the holder of the securities; or
(ii) in the case of Division 3 rights—to obtain the issue to
the transferee of the securities to which the Division 3
rights relate;
without the transferor doing anything more, or causing
anything more to be done, by way of executing or supplying
documents.
(2) If a person:
(a) causes property (other than securities or money) to be
transferred to another person; or
(b) causes documents that are sufficient to enable another person
to become the legal owner of property (other than securities
or money) to be delivered to another person;
the first-mentioned person is taken to have transferred the property
to the other person.
(3) If a person causes money to be paid to another person, the
first-mentioned person is taken to have paid the money to the other
person.
7.5.13 Effect of contravention of Part 7.5
A contravention of a provision of this Part does not constitute an
offence.
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Financial services and markets Chapter 7
Compensation regimes for financial markets Part 7.5
When there must be a compensation regime Division 2
Regulation 7.5.14
Corporations Regulations 2001 131
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Division 2—When there must be a compensation regime
7.5.14 Application for Australian market licence: information about
compensation arrangements
For paragraph 881B(2)(c) of the Act, the following information,
relating to proposed compensation arrangements, is prescribed:
(a) the services and products provided by the financial market,
and participants connected with the financial market;
(b) the sources of all funds to be used for compensation;
(c) the proposed minimum amount of cover, and how that
amount has been calculated;
(d) the number of markets to which the compensation
arrangements are intended to apply;
(e) details of any arrangement between the market operator and
any other person associated with the operation of the
compensation arrangement;
(f) details of the payments that will be able to be made, in
accordance with the compensation arrangements, that will
not be payments required by the Act or another law;
(g) the names of the persons responsible for the administration
and monitoring functions mentioned in paragraphs
885I(1)(a), (b) and (c) of the Act, and details of the financial,
technological and other resources to be used for those
purposes;
(h) the name of the proposed auditor of the accounts relating to
the compensation arrangements;
(i) the way in which the compensation arrangements will be
monitored to ensure that they comply with the Act and these
Regulations;
(j) the way in which the compensation arrangements will be
monitored to ensure that they are adequate.
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Chapter 7 Financial services and markets
Part 7.5 Compensation regimes for financial markets
Division 3 Approved compensation arrangements
Regulation 7.5.15
132 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 3—Approved compensation arrangements
7.5.15 Application for approval of compensation arrangements after
grant of Australian market licence: information about
compensation arrangements
For paragraph 882B(2)(a) of the Act, the following information,
relating to proposed compensation arrangements, is prescribed:
(a) the services and products provided by the financial market,
and participants connected with the financial market;
(b) the sources of all funds to be used for compensation;
(c) the proposed minimum amount of cover, and how that
amount has been calculated;
(d) the number of markets to which the compensation
arrangements are intended to apply;
(e) details of any arrangement between the market operator and
any other person associated with the operation of the
compensation arrangement;
(f) details of the payments that will be able to be made, in
accordance with the compensation arrangements, that will
not be payments required by the Act or another law;
(g) the names of the persons responsible for the administration
and monitoring functions mentioned in paragraphs
885I(1)(a), (b) and (c) of the Act, and details of the financial,
technological and other resources to be used for those
purposes;
(h) the name of the proposed auditor of the accounts relating to
the compensation arrangements;
(i) the way in which the compensation arrangements will be
monitored to ensure that they comply with the Act and these
Regulations;
(j) the way in which the compensation arrangements will be
monitored to ensure that they are adequate.
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Financial services and markets Chapter 7
Compensation regimes for financial markets Part 7.5
Approved compensation arrangements Division 3
Regulation 7.5.16
Corporations Regulations 2001 133
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.5.16 Notification of payment of levies
For subsection 883D(6) of the Act, a notification to the
Commonwealth of payments of levy received by the operator of a
market as agent for the Commonwealth must:
(a) be given for each period of 6 months ending on 31 December
and 30 June; and
(b) be given in writing to:
(i) the Secretary of the Department of the Treasury; or
(ii) another officer of that Department notified in writing by
the Secretary to the receiver of the levy; and
(c) set out the total of the levies (if any) that became payable in
the period; and
(d) set out the total of the levies (if any) received in the period;
and
(e) be given not later than 2 weeks after the end of the period.
7.5.17 Amount of compensation
For subsection 885E(5) of the Act, the rate of interest is 5%.
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Chapter 7 Financial services and markets
Part 7.5 Compensation regimes for financial markets
Division 4 NGF Compensation regime
Regulation 7.5.18
134 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4—NGF Compensation regime
Subdivision 4.1—Preliminary
7.5.18 Application of Division 4
For sections 888A, 888B, 888C, 888D and 888E of the Act, this
Division sets out arrangements relating to compensation in respect
of a loss that is connected with a financial market to which
Division 4 of Part 7.5 of the Act applies.
Note: The financial markets to which Division 4 of Part 7.5 of the Act
applies are set out in section 887A of the Act.
Subdivision 4.2—Third party clearing arrangements
7.5.19 Clearing arrangements
(1) For Subdivision 4.3, if:
(a) a participant of Australian Stock Exchange Limited (the
transacting participant) enters into a reportable transaction;
and
(b) under Australian Stock Exchange Limited’s operating rules
or under ACH’s operating rules, another participant (the
clearing participant) has the obligation to complete the
transaction and all obligations ancillary to that completion;
regulations 7.5.24 to 7.5.27 (inclusive) apply in relation to the
function of completing the transaction, as if the clearing
participant, and not the transacting participant, had entered into the
transaction.
(2) For Subdivision 4.9, if:
(a) a participant of Australian Stock Exchange Limited (the
transacting member) enters into a reportable transaction; and
(b) under Australian Stock Exchange Limited’s operating rules
or under ACH’s operating rules, another participant (the
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Regulation 7.5.19
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clearing participant) has the obligation to complete the
transaction and all obligations ancillary to that completion;
regulation 7.5.66 applies in relation to the function of completing
the transaction as if the clearing participant, and not the transacting
participant, had entered into the transaction.
(3) For Subdivision 4.3, if:
(a) a participant of the licensed CS facility operated by ACH (the
transacting participant) enters into a reportable transaction;
and
(b) under the operating rules of ACH, another participant (the
clearing participant) has the obligation to complete the
transaction and all obligations ancillary to that completion;
regulations 7.5.24 to 7.5.27 (inclusive) apply in relation to the
function of completing the transaction, as if the clearing
participant, and not the transacting participant, had entered into the
transaction.
(3A) For Subdivision 4.3, if:
(a) a participant of Australian Stock Exchange Limited (the
transacting participant) enters into a reportable transaction;
and
(b) under the operating rules of Australian Stock Exchange
Limited or ACH, a participant of the licensed CS facility
operated by ACH (the clearing participant) has the
obligation to complete the transaction and all obligations
ancillary to that completion;
regulations 7.5.24 to 7.5.27 (inclusive) apply in relation to the
function of completing the transaction, as if the clearing
participant, and not the transacting participant, had entered into the
transaction.
(4) For Subdivision 4.9, if:
(a) a participant of the licensed CS facility operated by ACH (the
transacting member) enters into a reportable transaction; and
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Division 4 NGF Compensation regime
Regulation 7.5.24
136 Corporations Regulations 2001
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(b) under the operating rules of ACH, another participant (the
clearing participant) has the obligation to complete the
transaction and all obligations ancillary to that completion;
regulation 7.5.66 applies in relation to the function of completing
the transaction as if the clearing participant, and not the transacting
participant, had entered into the transaction.
(5) For Subdivision 4.9, if:
(a) a participant of Australian Stock Exchange Limited (the
transacting participant) enters into a reportable transaction;
and
(b) under the operating rules of Australian Stock Exchange
Limited or ACH, a participant of the licensed CS facility
operated by ACH (the clearing participant) has the
obligation to complete the transaction and all obligations
ancillary to that completion;
regulation 7.5.66 applies in relation to the function of completing
the transaction, as if the clearing participant, and not the
transacting participant, had entered into the transaction.
Subdivision 4.3—Contract guarantees
7.5.24 Claim by selling client in respect of default by selling dealer:
ASTC-regulated transfer
(1) This regulation applies to a person (the selling client) if:
(a) a dealer enters into a reportable transaction on behalf of the
selling client; and
(b) the reportable transaction is a sale of securities; and
(c) a transfer of the securities concerned pursuant to the sale
would be an ASTC-regulated transfer; and
(d) at the end of the prescribed period for the transaction:
(i) if subparagraph (ii) does not apply—the selling client
has done all things necessary to enable the dealer to do
all things that the dealer is required to do under the
operating rules of a participating market licensee or
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NGF Compensation regime Division 4
Regulation 7.5.24
Corporations Regulations 2001 137
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ACH to effect a transfer of the securities pursuant to the
sale; and
(ii) the dealer has been suspended by the participating
market licensee concerned or ACH, that suspension has
not been removed and the selling client has done, or is
ready, willing and able to do, all things necessary to
enable the dealer to do all things that the dealer is
required to do under the operating rules of the
participating market licensee or ACH to effect a transfer
of the securities pursuant to the sale; and
(iii) the dealer’s obligations to the selling client in respect of
the sale, in so far as they relate to the consideration for
the sale, have not been discharged.
(2) The selling client may make a claim in respect of the sale.
(3) The selling client may make a single claim under this regulation in
respect of 2 or more sales.
(4) A claim made under subregulation (3) is to be treated for
subregulation (5) as if it consisted of a separate claim in respect of
each of the sales to which it relates.
(5) The SEGC must allow the claim if the SEGC is satisfied that:
(a) subregulation (1) entitles the selling client to make the claim;
and
(b) the selling client:
(i) has done all things necessary to enable the dealer to do
all things that the dealer is required to do under the
operating rules of ACH to effect a transfer of the
securities pursuant to the sale; or
(ii) has, for the purposes of the claim, in accordance with
the operating rules of ACH, transferred to the SEGC or
to an Exchange body securities of the same kind and
number as the first-mentioned securities; and
(c) the dealer’s obligations to the selling client in respect of the
sale, in so far as they relate to the consideration for the sale,
have not been discharged.
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Chapter 7 Financial services and markets
Part 7.5 Compensation regimes for financial markets
Division 4 NGF Compensation regime
Regulation 7.5.25
138 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(6) If the SEGC allows a claim, the SEGC must pay to the selling
client the amount of the consideration less so much (if any) of the
total of any brokerage fees and other charges, and any stamp duty
and other duties and taxes, payable by the selling client in
connection with the sale as has not already been paid by the selling
client.
(7) If a selling client transfers securities to an Exchange body as
mentioned in subparagraph (5)(b)(ii), the Exchange body must
account to the SEGC for those securities in accordance with the
operating rules of ACH.
7.5.25 Claim by selling client in respect of default by selling dealer:
transaction other than ASTC-regulated transfer
(1) This regulation applies to a person (the selling client) if:
(a) a dealer enters into a reportable transaction on behalf of the
selling client; and
(b) the reportable transaction is a sale of securities; and
(c) a transfer of the securities concerned pursuant to the sale
would not be an ASTC-regulated transfer; and
(d) at the end of the prescribed period for the transaction:
(i) if subparagraph (ii) does not apply—the selling client
has supplied to the dealer settlement documents for the
purposes of the sale; and
(ii) if the dealer has been suspended by the participating
market licensee concerned or ACH, and that suspension
has not been removed—the selling client has supplied,
or is ready, willing and able to supply, to the dealer
settlement documents for the purposes of the sale; and
(iii) the dealer’s obligations to the selling client in respect of
the sale, in so far as they relate to the consideration for
the sale, have not been discharged.
(2) The selling client may make a claim in respect of the sale.
(3) The selling client may make a single claim under this regulation in
respect of 2 or more sales.
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Compensation regimes for financial markets Part 7.5
NGF Compensation regime Division 4
Regulation 7.5.26
Corporations Regulations 2001 139
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) A claim made under subregulation (3) is to be treated for
subregulation (5) as if it consisted of a separate claim in respect of
each of the sales to which it relates.
(5) The SEGC must allow the claim if the SEGC is satisfied that:
(a) subregulation (1) entitles the selling client to make the claim;
and
(b) the selling client has:
(i) supplied to the dealer settlement documents in relation
to the sale under the agreement for the sale; or
(ii) supplied to the SEGC settlement documents in relation
to the sale for the purposes of the claim; and
(c) the dealer’s obligations to the selling client in respect of the
sale, in so far as they relate to the consideration for the sale,
have not been discharged.
(6) If the SEGC allows a claim, the SEGC must pay to the selling
client the amount of the consideration less so much (if any) of the
total of any brokerage fees and other charges, and any stamp duty
and other duties and taxes, payable by the selling client in
connection with the sale as has not already been paid by the selling
client.
7.5.26 Claim by buying client in respect of default by buying dealer:
ASTC-regulated transfer
(1) This regulation applies to a person (the buying client) if:
(a) a dealer enters into a reportable transaction on behalf of the
buying client; and
(b) the reportable transaction is a purchase of securities; and
(c) a transfer of the securities concerned pursuant to the purchase
would be an ASTC-regulated transfer; and
(d) at the end of the prescribed period for the transaction:
(i) if subparagraph (ii) does not apply, the buying client has
paid to the dealer the purchase price in relation to the
purchase; and
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Chapter 7 Financial services and markets
Part 7.5 Compensation regimes for financial markets
Division 4 NGF Compensation regime
Regulation 7.5.26
140 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) the dealer has been suspended by the participating
market licensee concerned or ACH, that suspension has
not been removed and the buying client has paid, or is
ready, willing and able to pay, to the dealer the purchase
price in relation to the purchase; and
(iii) the dealer’s obligations to the buying client in respect of
the purchase, in so far as they relate to the transfer of
securities to the person, have not been discharged.
(2) The buying client may make a claim in respect of the purchase.
(3) The buying client may make a single claim under this regulation in
respect of 2 or more purchases.
(4) A claim made under subregulation (3) is to be treated for
subregulation (5) as if it consisted of a separate claim in respect of
each of the purchases to which it relates.
(5) The SEGC must allow the claim if the SEGC is satisfied that:
(a) subregulation (1) entitles the buying client to make the claim;
and
(b) either:
(i) the buying client has paid to the dealer the amount of
the consideration for the purchase under the agreement
for the purchase; or
(ii) the buying client has paid to the SEGC the amount of
the consideration for the purchase for the purposes of
the claim; and
(c) the dealer’s obligations to the buying client in respect of the
purchase, in so far as they relate to the transfer of securities
to the buying client, have not been discharged.
(6) If the SEGC allows a claim in respect of a purchase of securities,
the SEGC must, subject to regulation 7.5.28, transfer to the buying
client securities of the same kind and number as the
first-mentioned securities.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Compensation regimes for financial markets Part 7.5
NGF Compensation regime Division 4
Regulation 7.5.27
Corporations Regulations 2001 141
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.5.27 Claim by buying client in respect of default by buying dealer:
transaction other than ASTC-regulated transfer
(1) This regulation applies to a person (the buying client) if:
(a) a dealer enters into a reportable transaction on behalf of the
buying client; and
(b) the reportable transaction is a purchase of securities; and
(c) a transfer of the securities concerned pursuant to the purchase
would not be an ASTC-regulated transfer; and
(d) at the end of the prescribed period for the transaction:
(i) if subparagraph (ii) does not apply, the buying client has
paid to the dealer the purchase price in relation to the
purchase; and
(ii) the dealer has been suspended by the participating
market licensee concerned or ACH, that suspension has
not been removed and the buying client has paid, or is
ready, willing and able to pay, to the dealer the purchase
price in relation to the purchase; and
(iii) the dealer’s obligations to the buying client in respect of
the purchase, in so far as they relate to settlement
documents in relation to the purchase, have not been
discharged.
(2) The buying client may make a claim in respect of the purchase.
(3) The buying client may make a single claim under this regulation in
respect of 2 or more purchases.
(4) A claim made under subregulation (3) is to be treated for
subregulation (5) as if it consisted of a separate claim in respect of
each of the purchases to which it relates.
(5) The SEGC must allow the claim if the SEGC is satisfied that:
(a) subregulation (1) entitles the buying client to make the claim;
and
(b) either:
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Chapter 7 Financial services and markets
Part 7.5 Compensation regimes for financial markets
Division 4 NGF Compensation regime
Regulation 7.5.28
142 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) the buying client has paid to the dealer the amount of
the consideration for the purchase under the agreement
for the purchase; or
(ii) the buying client has paid to the SEGC the amount of
the consideration for the purchase for the purposes of
the claim; and
(c) the dealer’s obligations to the buying client in respect of the
purchase, in so far as they relate to settlement documents in
relation to the purchase, have not been discharged.
(6) If the SEGC allows a claim in respect of a purchase of securities,
the SEGC must, subject to regulation 7.5.29, supply to the buying
client settlement documents in relation to the purchase.
7.5.28 Cash settlement of claim: ASTC-regulated transfer
(1) This regulation applies if:
(a) the SEGC allows a claim under subregulation 7.5.26(5) in
respect of a purchase of securities by a dealer on behalf of a
buying client; and
(b) it is not reasonably practicable for the SEGC to obtain
securities of the same kind and number as the first-mentioned
securities from the dealer before the end of:
(i) if the ASTC operating rules, as in force when the SEGC
allows the claim, prescribe a period, for this regulation,
in relation to a class of claims that includes the claim—
that period; or
(ii) in any other case—such period as the SEGC, having
regard to all the circumstances of the claim, considers
reasonable; and
(c) it is not reasonably practicable for the SEGC to obtain,
otherwise than from the dealer, securities of that kind and
number before the end of that period because:
(i) that dealing in those securities is suspended or for any
other reason, there exists at no time during that period
an orderly market in those securities; or
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(ii) the total number of those securities offered for sale on
financial markets of participating market licensees or
Exchange bodies at times during that period when there
exists an orderly market in those securities is
insufficient.
(2) The SEGC must satisfy the claim by paying to the claimant the
amount that, when the claimant became entitled to make the claim,
was the amount of the actual pecuniary loss suffered by the
claimant in respect of the purchase.
7.5.29 Cash settlement of claim: transfer other than ASTC-regulated
transfer
(1) This regulation applies if:
(a) the SEGC allows a claim under subregulation 7.5.27(5) in
respect of a purchase of securities by a dealer on behalf of a
buying client; and
(b) it is not reasonably practicable for the SEGC to obtain from
the dealer settlement documents in relation to the purchase
before the end of:
(i) if the operating rules of a participating market licensee
of which the dealer is a participant, being those
operating rules as in force when the SEGC allows the
claim, prescribe a period, for this regulation, in relation
to a class of claims that includes the claim—that period;
or
(ii) in any other case—such period as the SEGC, having
regard to all the circumstances of the claim, considers
reasonable; and
(c) it is not reasonably practicable for the SEGC to obtain
otherwise than from the dealer settlement documents in
relation to the purchase before the end of that period because:
(i) there exists at no time during that period an orderly
market in those securities, whether because that dealing
in those securities is suspended or for any other reason;
or
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(ii) the total number of those securities offered for sale on
financial markets of participating market licensees or
Exchange bodies at times during that period when there
exists an orderly market in those securities is
insufficient.
(2) The SEGC must satisfy the claim by paying to the claimant the
amount that, when the claimant became entitled to make the claim,
was the amount of the actual pecuniary loss suffered by the
claimant in respect of the purchase.
7.5.30 Making of claims
(2) Subregulations 7.5.24(1), 7.5.25(1), 7.5.26(1) and 7.5.27(1) do not
entitle a person (person 1) to make a claim in respect of:
(a) a sale of securities by another person on behalf of person 1;
or
(b) a purchase of securities by another person on behalf of
person 1;
as the case may be, unless, on the day on which the agreement for
the sale or purchase was entered into, the other person was a
participant and carried on a securities business in Australia.
(3) A claim must be in writing and must be served on the SEGC within
6 months after the day on which the claimant became entitled to
make the claim.
(4) A claim that is not made within the period prescribed by
subregulation (3) is barred unless the SEGC otherwise determines.
(5) The SEGC may publish, in each State and Territory in a daily
newspaper circulating in that State or Territory, a notice that:
(b) names a particular dealer; and
(c) requires that all claims under this Subdivision, by the named
dealer, during a period (the applicable period) specified in
the notice in accordance with subregulation (6) must be
served on the SEGC before the day (the last application day)
specified in the notice in accordance with subregulation (7).
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Regulation 7.5.53
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(6) The applicable period must be a period that starts and ends before:
(a) if each publication of the notice occurs on the same day—the
day on which the notice is published; or
(b) in any other case—the first day on which the notice is
published.
(7) The last application day must be at least 3 months after:
(a) if each publication of the notice occurs on the same day—the
day on which the notice is published; or
(b) in any other case—the last day on which the notice is
published.
(8) The SEGC, a member of the Board and any employee of, or person
acting on behalf of, the SEGC each has qualified privilege in
respect of the publication of a notice under subregulation (5).
Subdivision 4.7—Unauthorised transfer
7.5.53 Application of Subdivision 4.7
(1) This Subdivision applies if:
(a) a dealer executes a document of transfer of securities on
behalf of a person as transferor of the securities; and
(b) the transfer is not an ASTC-regulated transfer; and
(c) apart from the effect of subregulation 7.11.17(3), the person
did not authorise the dealer to execute the document.
(2) For subregulation (1), a dealer is taken to have executed a
document of transfer in relation to securities on behalf of a person
as transferor of the securities if the document states that the person
is the transferor of the securities and purports to have been stamped
with the dealer’s stamp as the transferor’s broker.
(3) This Subdivision also applies if:
(a) a dealer effects, or purports to effect, a proper ASTC transfer
of securities on behalf of a person; and
(b) apart from the effect of regulation 7.11.26, the person did not
authorise the dealer to effect the transfer.
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Regulation 7.5.54
146 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) In this Subdivision:
(a) the dealer’s action mentioned in whichever of
paragraphs (1)(a) and (3)(a) is applicable is an unauthorised
execution; and
(b) the person mentioned in whichever of those paragraphs is
applicable is the transferor; and
(c) the securities mentioned in whichever of those paragraphs is
applicable are the transferred securities.
7.5.54 Claim by transferor
If, as a result of the unauthorised execution, the transferor suffers
loss in respect of any of the transferred securities, the transferor
may make a claim in respect of the loss.
7.5.55 Claim by transferee or sub-transferee
(1) If, as a result of the unauthorised execution, a person (the
claimant), being:
(a) in any case:
(i) if subregulation 7.5.53(1) applies—the person stated in
the document as the transferee of the transferred
securities; or
(ii) if subregulation 7.5.53(3) applies—the person in whose
favour the proper ASTC transfer was effected, or
purported to be effected; or
(b) if that person has disposed of any of the transferred
securities—a successor in title of that person to any of the
transferred securities;
suffers loss in respect of any of the transferred securities, the
claimant may make a claim in respect of that loss.
(2) A person is not entitled to make a claim under this regulation if the
person:
(a) had actual knowledge that the transferor did not in fact
authorise the unauthorised execution; or
(b) is an excluded person in relation to the dealer.
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Regulation 7.5.56
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7.5.56 How and when claim may be made
(1) A claim must:
(a) be in writing; and
(b) be served on the SEGC:
(i) if a notice under subregulation (4) applies to the
claim—before the end of the last application day
specified in the notice; or
(ii) in any other case—within 6 months after the day on
which the claimant first became aware that the claimant
had suffered loss as a result of the unauthorised
execution.
(2) For subregulation (1), a notice under subregulation (4) applies to a
claim if the claim is in respect of an unauthorised execution, by the
dealer named in the notice, during the applicable period specified
in the notice.
(3) A claim that is not served on the SEGC by the time required by
paragraph (1)(b) is barred unless the SEGC otherwise determines.
(4) The SEGC may publish, in each State and Territory in a daily
newspaper circulating in that State or Territory, a notice, using
Form 719A, that:
(a) names a particular dealer; and
(b) requires that all claims in respect of unauthorised executions,
by the named dealer, during a period (the applicable period)
specified in the notice in accordance with subregulation (5)
must be served on the SEGC before the day (the last
application day) specified in the notice in accordance with
subregulation (6).
(5) The applicable period must be a period that starts and ends before:
(a) if each publication of the notice occurs on the same day—the
day on which the notice is published; or
(b) in any other case—the first day on which the notice is
published.
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Regulation 7.5.57
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(6) The last application day must be at least 3 months after:
(a) if each publication of the notice occurs on the same day—the
day on which the notice is published; or
(b) in any other case—the last day on which the notice is
published.
(7) The SEGC, a member of the Board and any employee of, or person
acting on behalf of, the SEGC each has qualified privilege in
respect of the publication of a notice under subregulation (4).
7.5.57 How claim is to be satisfied
(1) The SEGC must allow a claim if the SEGC is satisfied that
regulation 7.5.54 or 7.5.55 entitles the claimant to make the claim.
(2) If the SEGC allows the claim, and the claimant has, as a result of
the unauthorised execution, ceased to hold some or all of the
transferred securities, the SEGC must:
(a) subject to paragraph (b), supply to the claimant securities of
the same kind and number as those of the transferred
securities that the claimant has so ceased to hold; or
(b) if the SEGC is satisfied that it is not practicable for the SEGC
to obtain such securities, or to obtain such securities within a
reasonable time—pay to the claimant the amount that, as at
the time when the SEGC decides that it is so satisfied, is the
actual pecuniary loss suffered by the claimant, in respect of
the transferred securities, as a result of the unauthorised
execution (other than loss suffered as mentioned in
subregulation (3)).
(3) If the SEGC allows the claim, it must pay to the claimant the
amount that, as at the time when the claim is allowed, or when the
SEGC decides as mentioned in paragraph (2)(b), as the case
requires, is the actual pecuniary loss suffered by the claimant, as a
result of the unauthorised execution, in respect of payments or
other benefits:
(a) in any case—to which the claimant would have become
entitled, as the holder of such of the transferred securities as
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the claimant has, as a result of the unauthorised execution,
ceased to hold, if the claimant had continued to hold the
securities concerned until that time; or
(b) if the claim was made under regulation 7.5.55—that the
claimant has received as holder of any of the transferred
securities.
(4) For this regulation, if securities are purportedly transferred from a
person to another person, the first-mentioned person is taken to
cease to hold, and the other person is taken to hold, the securities
even if the other person did not by virtue of the transfer get a good
title to the securities.
7.5.58 Discretionary further compensation to transferor
(1) If:
(a) the SEGC allows a claim made under regulation 7.5.54; and
(b) the SEGC is satisfied that the supply of securities, or the
payment of money, or both, as the case requires, to the
claimant under regulation 7.5.57 will not adequately
compensate the claimant for a pecuniary or other gain that
the claimant might, if the claimant had continued to hold the
transferred securities, have made but did not in fact make;
the SEGC may determine in writing that there be paid to the
claimant in respect of that gain a specified amount that the SEGC
considers to be fair and reasonable in all the circumstances.
(2) If a determination is made under subregulation (1), the SEGC must
pay to the claimant the amount specified in the determination.
7.5.59 Nexus with Australia
Regulations 7.5.54 and 7.5.55 do not entitle a person to make a
claim unless the dealer was on the day of the unauthorised
execution a participant of a participating market licensee and:
(a) the dealer was carrying on a securities business in Australia
on that day; or
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(b) if the dealer was not so carrying on such a business and was
not carrying on a securities business outside Australia on that
day—the last securities business that the dealer carried on
before that day was carried on in Australia.
Subdivision 4.8—Contraventions of ASTC certificate
cancellation provisions
7.5.60 Claim in respect of contravention of ASTC certificate
cancellation provisions
(1) A person who suffers pecuniary loss in respect of a contravention,
by a dealer, of the ASTC certificate cancellation provisions may
make a claim in respect of the loss.
(2) The loss must not be a loss in respect of an unauthorised execution
(within the meaning of paragraph 7.5.53(4)(a)) in respect of which
the person has made, or is entitled to make, a claim under
Subdivision 4.7.
(3) The person must not have been involved in the contravention.
(4) The following paragraphs must be satisfied in relation to the
dealer:
(a) the dealer was a participant of a participating market licensee
on the day of the contravention;
(b) either:
(i) the dealer was carrying on a securities business in
Australia on that day; or
(ii) if the dealer was not so carrying on such a business on
that day—the last securities business that the dealer
carried on before that day was carried on in Australia.
7.5.61 How and when claim may be made
(1) A claim must:
(a) be in writing; and
(b) be served on the SEGC:
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(i) if a notice under subregulation (4) applies to the
claim—before the end of the last application day
specified in the notice; or
(ii) in any other case—within 6 months after the day on
which the claimant first became aware that the claimant
had suffered loss as a result of the dealer’s
contravention of the ASTC certificate cancellation
provisions.
(2) For subregulation (1), a notice under subregulation (4) applies to a
claim if the claim is in respect of a contravention of the ASTC
certificate cancellation provisions, by the dealer named in the
notice, during the applicable period specified in the notice.
(3) A claim that is not served on the SEGC by the time required by
paragraph (1)(b) is barred unless the SEGC otherwise determines.
(4) The SEGC may publish, in each State and Territory in a daily
newspaper circulating in that State or Territory, a notice, using
Form 719B, that:
(a) names a particular dealer; and
(b) requires that all claims in respect of contraventions of the
ASTC certificate cancellation provisions, by the named
dealer, during a period (the applicable period) specified in
the notice in accordance with subregulation (5) must be
served on the SEGC before the day (the last application day)
specified in the notice in accordance with subregulation (6).
(5) The applicable period must be a period that starts and ends before:
(a) if each publication of the notice occurs on the same day—the
day on which the notice is published; or
(b) in any other case—the first day on which the notice is
published.
(6) The last application day must be at least 3 months after:
(a) if each publication of the notice occurs on the same day—the
day on which the notice is published; or
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(b) in any other case—the last day on which the notice is
published.
(7) The SEGC, a member of the Board and any employee of, or person
acting on behalf of, the SEGC each has qualified privilege in
respect of the publication of a notice under subregulation (4).
7.5.62 How claim is to be satisfied
(1) The SEGC must allow a claim if the SEGC is satisfied that
regulation 7.5.60 entitles the claimant to make the claim.
(2) If the SEGC allows the claim, it must pay to the claimant the
amount that, when the claim is allowed, is the actual pecuniary loss
suffered by the claimant because of the contravention in respect of
which the claim was made.
(3) For subregulation (2), the actual pecuniary loss suffered by the
claimant does not include any loss in respect of an unauthorised
execution (within the meaning of paragraph 7.5.53(4)(a)) in respect
of which the claimant has made, or is entitled to make, a claim
under Subdivision 4.7.
7.5.63 Discretionary further compensation
(1) If:
(a) the SEGC allows a claim made under regulation 7.5.60; and
(b) the SEGC is satisfied that the payment of money to the
claimant under regulation 7.5.62 will not adequately
compensate the claimant for a pecuniary or other gain that
the claimant did not make, but might have made, were it not
for the contravention in respect of which the claim was made;
the SEGC may determine in writing that the claimant should be
paid in respect of that gain a specified amount that the SEGC
considers to be fair and reasonable in all the circumstances.
(2) If a determination is made under subregulation (1), the SEGC must
pay the claimant the amount specified in the determination.
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Regulation 7.5.64
Corporations Regulations 2001 153
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Subdivision 4.9—Claims in respect of insolvent participants
7.5.64 Claim in respect of property entrusted to, or received by,
dealer before dealer became insolvent
(1) A person may make a claim in respect of property if:
(a) a dealer has become insolvent at a particular time (whether
before or after the commencement of this regulation); and
(b) at an earlier time (whether before or after that
commencement), the property was, in the course of, or in
connection with, the dealer’s securities business entrusted to,
or received by:
(i) if the dealer was, at the earlier time, a partner in a
participant—the participant, or a partner in, or an
employee of, the participant; or
(ii) in any other case—the dealer or an employee of the
dealer;
and was so entrusted or received on behalf of, or because the
dealer was a trustee of the property for, the person (other than
an excluded person in relation to the dealer); and
(c) at the time the dealer became insolvent, the obligations of the
dealer, or of a participant of which the dealer is a partner, as
the case requires, to the person in respect of the property
have not been discharged.
(2) The SEGC must allow the claim if the SEGC is satisfied that:
(a) subregulation (1) entitles the claimant to make the claim; and
(b) at the time the SEGC considers the claim, the obligations of
the dealer, or of a participant of which the dealer is a partner,
as the case requires, to the claimant in respect of the property
have not been discharged.
(3) If the property is, or includes, money, the SEGC must pay to the
claimant an amount equal to the amount of that money.
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Regulation 7.5.65
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(4) If the property is, or includes, property other than money, the
SEGC must, subject to subregulation (5) and regulation 7.5.65,
supply the property other than money to the claimant.
(5) If:
(a) the SEGC allows a claim in respect of property that is, or
includes:
(i) a number of securities of a particular kind; or
(ii) documents of title to a number of securities of a
particular kind; and
(b) it is not reasonably practicable for the SEGC to obtain those
securities, or those documents of title to securities, as the
case may be, from the dealer or, if the dealer has disposed of
them, from the dealer’s successor in title, before the end of:
(i) if the operating rules of a participating market licensee
or licensed CS facility of which the dealer is a
participant, being those operating rules as in force when
the SEGC allows the claim, prescribe a period, for this
regulation, in relation to a class of claims that includes
that claim—that period; or
(ii) in any other case—such period as the SEGC, having
regard to all the circumstances relating to the claim,
considers reasonable;
the SEGC must, subject to regulation 7.5.65, supply to the person,
instead of those securities, or those documents of title to securities,
the number of securities of that kind, or documents of title to the
number of securities of that kind, as the case may be.
7.5.65 Cash settlement of claims if property unobtainable
(1) If:
(a) the SEGC allows a claim in respect of property that is, or
includes, a number of securities of a particular kind or
documents of title to a number of securities of a particular
kind; and
(b) it is not reasonably practicable for the SEGC to obtain those
securities, or those documents of title to securities, as the
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case may be, from the dealer or, if the dealer has disposed of
them, from the dealer’s successor in title, before the end of:
(i) if the operating rules of a participating market licensee
or licensed CS facility of which the dealer is a
participant, being those operating rules as in force when
the SEGC allows the claim, prescribe a period, for this
regulation, in relation to a class of claims that includes
the claim—that period; or
(ii) in any other case—such period as the SEGC, having
regard to all the circumstances relating to the claim,
considers reasonable; and
(c) it is not reasonably practicable for the SEGC to obtain that
number of securities of that kind, or documents of title to that
number of securities of that kind, as the case may be, before
the end of that period because:
(i) whether by reason that dealing in securities of that kind
is suspended or for any other reason, there exists at no
time during that period an orderly market in such
securities; or
(ii) the total number of securities of that kind offered for
sale on financial markets of market licensees or
Exchange bodies at times during that period when there
exists an orderly market in such securities is
insufficient;
the SEGC may decide to pay to the claimant the amount that, when
the decision is made, is the actual pecuniary loss suffered by the
claimant in respect of the first-mentioned securities, or the
first-mentioned documents of title, as the case may be, and if the
SEGC does so, the SEGC must pay that amount to the claimant.
(2) If:
(a) the SEGC allows a claim that, because of a dealer having
become insolvent, this Division entitles a person to make in
respect of property that is, or includes, property (the relevant
property) other than money, securities or documents of title
to securities; and
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(b) it is not reasonably practicable for the SEGC to obtain the
relevant property from the dealer or, if the dealer has
disposed of it, from the dealer’s successor in title, before the
end of such period as the SEGC considers reasonable;
the SEGC may decide to pay to the claimant the amount that, when
the decision is made, is the actual pecuniary loss suffered by the
claimant in respect of the relevant property, and if the SEGC does
so, the SEGC must pay that amount to the claimant.
7.5.66 Ordering of alternative claims and prevention of double
recovery
(1) Subregulation (2) applies if:
(a) a participant has received under the agreement for a sale or
purchase of securities by the participant on behalf of a
person, the consideration for the sale or settlement
documents in relation to the purchase, as the case may be;
and
(b) subregulation 7.5.24(1), 7.5.25(1), 7.5.26(1) or 7.5.27(1)
entitles the person to make a claim against the SEGC under
Subdivision 4.3 in respect of the sale or purchase.
(2) This Subdivision does not, because of:
(a) a dealer, being the participant or a partner in the participant,
having become insolvent at a particular time; and
(b) the participant having received, under the agreement, the
consideration or the settlement documents;
entitle the person to make a claim in respect of the consideration or
the settlement documents, as the case may be, unless the
participant’s obligations to the person in respect of the sale or
purchase, as the case may be, in so far as those obligations related
to the consideration or the settlement documents, were discharged
before that time.
(3) If:
(a) because of a dealer having become insolvent on a particular
day, this Subdivision entitles a person to make a claim (the
first claim) in respect of property; and
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(b) because of a dealer having become insolvent on a later day,
this Subdivision entitles a person to make another claim in
respect of the property;
the SEGC must not allow the other claim unless:
(c) the person has made the first claim and the SEGC has
allowed or disallowed it; or
(d) the SEGC is satisfied that if the first claim had been made the
SEGC would have disallowed it; or
(e) the SEGC is satisfied that, when the person first became
aware of the dealer mentioned in paragraph (b) having
become insolvent on the later day:
(i) the first claim was barred; or
(ii) it was no longer reasonably practicable for the person to
make the first claim before it became barred.
(4) If:
(a) at a particular time, the SEGC allows a claim in respect of
property; and
(b) because of:
(i) a dealer having become insolvent (whether before, at or
after that time); and
(ii) the property having, before that time, been entrusted or
received as mentioned in paragraph 7.5.64(1)(b);
this Subdivision entitles the claimant to make another claim
in respect of the property;
the SEGC must not allow the other claim.
7.5.67 No claim in respect of money lent to dealer
If, at the time when a dealer becomes insolvent:
(a) a person has lent money to the dealer; and
(b) the liability of the dealer to repay the money remains
undischarged;
this Subdivision does not, because of the dealer having become
insolvent at that time, entitle the person to make a claim in respect
of the money.
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Regulation 7.5.68
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7.5.68 Nexus with Australia
This Subdivision does not, because of a person (the dealer) having
become insolvent at a particular time, entitle a person to make a
claim in respect of property unless:
(a) the dealer was at that time a participant of at least 1 of the
following:
(i) a participating market licensee;
(ii) the licensed CS facility operated by ACH; and
(b) either:
(i) the dealer was carrying on a securities business in
Australia at that time; or
(ii) the last business that the dealer carried on in Australia
before that time was a securities business, and the
person’s claim relates to that business as it was carried
on in Australia.
7.5.69 No claim in certain other cases
This Subdivision does not, because of a dealer having become
insolvent on a particular day, entitle a person to make a claim in
respect of property if:
(a) before that day the property had, in due course of the
administration of a trust, ceased to be under the sole control
of the dealer; or
(b) the SEGC, or the Court, is satisfied that circumstances that
materially contributed to the dealer becoming insolvent on
that day were due to, or caused directly or indirectly by, an
act or omission of the person.
7.5.70 Making of claims
(1) The SEGC may publish, in each State and Territory, in a daily
newspaper circulating generally in that State or Territory, a notice,
using Form 720, specifying a day, not being earlier than 3 months
after the publication of the notice, on or before which claims
against the SEGC may be made, being claims that, because of a
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dealer specified in the notice having become insolvent, this
Subdivision entitles persons to make.
(2) If this Subdivision entitles a person to make a claim, the claim
must be in writing and must be served on the SEGC:
(a) if there has been published in accordance with
subregulation (1) a notice specifying a day on or before
which claims may be made, being claims that, because of the
dealer having become insolvent on that day, this Subdivision
entitles persons to make—on or before that day; or
(b) in any other case—within 6 months after the person becomes
aware of the dealer having become insolvent on that day.
(3) A claim that is not made in accordance with subregulation (2) is
barred unless the SEGC otherwise determines.
(4) The SEGC, a member of the Board and any employee of, or person
acting on behalf of, the SEGC each has qualified privilege in
respect of the publication of a notice under subregulation (1).
7.5.71 Limits of compensation
(1) The total amounts paid out of the Fund in connection with claims
that:
(a) because of a dealer having become insolvent on a particular
day, this Subdivision entitles persons to make; and
(b) are allowed by the SEGC;
must not exceed an amount equal to 15% of the minimum amount
of the Fund as at the end of that day.
(2) In determining the total of the amounts paid out of the Fund in
connection with claims in respect of property (the main property):
(a) an amount paid out of the Fund in connection with any of the
claims must be disregarded, to the extent to which it is repaid
to the Fund; and
(b) if, because of the exercise of a right or remedy in relation to
property that is, or is included in, the main property, being a
right or remedy of the claimant, or of any of the claimants, to
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which the SEGC is subrogated, money or other property has
been recovered by, or on behalf, of the SEGC—so much of
the amount, or of the total of the amounts, paid out of the
Fund in connection with any of the claims as does not
exceed:
(i) the amount of that money; or
(ii) the value of so much (if any) of that other property as
has not been, and is not required to be, supplied under
subregulation 7.5.64(2) in respect of any of the claims;
must be disregarded.
(3) To ensure compliance with subregulation (1) in relation to
particular claims:
(a) the SEGC may, in relation to each of those claims, determine
in writing an amount to be the maximum amount in relation
to the claim; and
(b) if paragraph (a) empowers the SEGC to make determinations
in relation to the respective claims of 2 or more claimants—
the SEGC must, in making those determinations:
(i) take into account, in relation to each of those claimants,
any money or other property that the claimant has
received, or is likely to receive, from sources other than
the Fund as compensation for property to which the
claimant’s claim relates; and
(ii) ensure, as far as practicable, that the proportion of the
property to which a claim relates that is represented by
the money and other property received from all sources
(including the Fund) as compensation for property to
which the claim relates is, as nearly as practicable, the
same for each of those claimants.
(4) If a determination of an amount as the maximum amount in
relation to a claim is in force under subregulation (3), the amount,
or the total of the amounts, paid out of the Fund in connection with
the claim must not exceed the amount that has been determined.
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Regulation 7.5.72
Corporations Regulations 2001 161
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Subdivision 4.10—General
7.5.72 Power of SEGC to allow and settle claim
(1) The SEGC may, at any time after a person becomes entitled to
make a claim, allow and settle the claim.
(2) Subregulation (1) authorises the SEGC to partially allow a claim
(including, for example, in a case where the SEGC considers that
the claimant’s conduct contributed to the loss).
7.5.73 Application of Fund in respect of certain claims
(1) This regulation applies if the SEGC acquires financial products in
accordance with section 888K of the Act for the purpose of
providing compensation.
(2) The financial products form part of the Fund until they are supplied
in accordance with this Part to a claimant or sold in accordance
with subregulation (3).
(3) If the SEGC:
(a) acquires the financial products; and
(b) satisfies the claim by paying an amount to the claimant;
the SEGC must, as soon as practicable after satisfying the claim,
sell the financial products and pay the proceeds of the sale into the
Fund.
7.5.74 Discretion to pay amounts not received etc because of failure
to transfer securities
(1) This regulation applies if the SEGC is satisfied that:
(a) a person (the defaulter) has failed to discharge an obligation
to transfer securities to another person (the entitled entity);
and
(b) the entitled entity:
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(i) has made a claim in respect of the failure and has had
securities transferred to it, or an amount paid to it, in
satisfaction of the claim; or
(ii) would have been entitled to make a claim in respect of
the failure if securities had not been transferred to it for
the purpose of remedying the failure; and
(c) if the defaulter had duly transferred securities in accordance
with the obligation, an amount would have been paid, or
property would have been transferred, to the entitled entity as
the holder of the securities; and
(d) the entitled entity has not received, and is not entitled to
receive (otherwise than from the defaulter):
(i) the amount or property; or
(ii) an equivalent amount or equivalent property in respect
of securities transferred or obtained as mentioned in
paragraph (b); and
(e) if subparagraph (b)(i) applies, and an amount has been paid
in satisfaction of the claim, the amount paid does not
adequately compensate the entitled entity for the loss of the
amount or property mentioned in paragraph (c).
(2) The SEGC may determine in writing that the entitled entity is to be
paid, in respect of the loss of the amount or property mentioned in
paragraph (1)(c), a specified amount that the SEGC considers to be
fair and reasonable in the circumstances.
(3) If a determination is made under subregulation (1), the SEGC must
pay to the entitled entity the amount specified in the determination.
7.5.75 Reduction in compensation
(1) The SEGC may reduce an amount of compensation by reference to
1 or more of the following:
(a) a right of set-off available to the claimant;
(b) the extent to which the claimant was responsible for causing
the loss.
(2) If:
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(a) the claimant has assigned any of its rights or remedies in
relation to the loss; and
(aa) the claimant has received a benefit from any person for
assigning the right or remedy; and
(b) the claimant assigned rights or remedies as mentioned in
paragraph (a) without the written consent of the SEGC; and
(c) the claimant continues to suffer a loss at the date of the
determination of the claim;
the SEGC may reduce the amount of compensation by the amount
that fairly represents the extent to which the claimant has, without
the written consent of the SEGC, adversely affected the SEGC’s
ability under section 892F of the Act to recover the amount of the
compensation that would otherwise be payable to the claimant in
respect of the claimant’s claim.
7.5.76 Claimant may be required to exercise right of set-off
(1) If:
(a) a person (the claimant) has made a claim in respect of a
liability of another person (the defaulter); and
(b) the claimant has a right, whether under an agreement or
otherwise, to set off a liability of the claimant to the defaulter
against the liability mentioned in paragraph (a);
the SEGC may refuse to allow the claim until the claimant has
exercised the right.
(2) The SEGC may, by notice in writing served on a person, require
the person to give the SEGC specified information relating to the
existence or exercise of rights of set-off.
7.5.77 Effect of set-off on claim
(1) If:
(a) the SEGC allows a claim by a person (the claimant) in
respect of a liability of another person (the defaulter); and
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(b) the liability of the defaulter to the claimant has been reduced,
by an amount of money or a number of securities (the set-off
reduction), because of:
(i) the exercise by the claimant or the defaulter of a right of
set-off, whether under an agreement or otherwise; or
(ii) the operation of an agreement so far as it provides for
the automatic set-off of liabilities; and
(c) but for this regulation, the reduction of the defaulter’s
liability would not be taken into account when working out
the obligations of the SEGC in respect of the claim;
this regulation applies for the purposes of working out those
obligations.
(2) If:
(a) the SEGC is required to satisfy the claim by paying an
amount; and
(b) the set-off reduction consists of an amount;
the amount the SEGC must pay in respect of the claim is reduced
by the amount of the set-off reduction.
(3) If:
(a) the SEGC is required to satisfy the claim by paying an
amount; and
(b) the set-off reduction consists of a number of securities;
then:
(c) the SEGC must work out the value of the securities; and
(d) the amount the SEGC must pay in respect of the claim is
reduced by the value worked out under paragraph (c).
(4) If:
(a) the SEGC is required to satisfy the claim by transferring
securities of a particular kind; and
(b) the set-off reduction consists of a number of securities of that
kind;
the number of securities that the SEGC must transfer in respect of
the claim is reduced by the number mentioned in paragraph (b).
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(5) If:
(a) the SEGC is required to satisfy the claim by transferring
securities of a particular kind; and
(b) the set-off reduction consists of a number of securities that
are not of that kind;
then:
(c) the SEGC must work out:
(i) the value of the securities that constitute the set-off
reduction; and
(ii) the number of securities of the kind mentioned in
paragraph (a) that are equal in value to the value worked
out under subparagraph (i); and
(d) the number of securities that the SEGC is required to transfer
in respect of the claim is reduced by the number worked out
under subparagraph (c)(ii).
(6) If:
(a) the SEGC is required to satisfy the claim by transferring
securities of a particular kind; and
(b) the set-off reduction consists of an amount of money;
then:
(c) the SEGC must work out the number of securities of that
kind that are equal in value to that amount; and
(d) the number of securities that the SEGC must transfer in
respect of the claim is reduced by the number worked out
under paragraph (c).
7.5.78 Claimant entitled to costs and disbursements
(1) This regulation applies if the SEGC:
(a) allows a claim in whole or in part; or
(b) disallows a claim in whole in the following circumstances:
(i) the dealer compensated the claimant before the claim
was determined;
(ii) the claim would have been allowed if the dealer had not
compensated the claimant.
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Regulation 7.5.79
166 Corporations Regulations 2001
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(2) The claimant is entitled to be paid out of the Fund an amount equal
to the total of the reasonable costs of, and the reasonable
disbursements incidental to, the making and proof of the claim.
(3) The claimant is also entitled to be paid out of the Fund an amount
in respect of the claimant’s reasonable costs of, and disbursements
incidental to, attempting to recover the loss.
(4) Subregulations (2) and (3) apply in addition to the claimant’s other
rights under this Division.
7.5.79 Interest
(1) In addition to an amount that is payable to a person out of the Fund
in respect of a claim, interest at the rate of 5% per annum or, if
another rate is determined in writing by the SEGC, at that other
rate, is payable to the person out of the Fund, on so much of that
amount as is not attributable to costs and disbursements, in respect
of the period beginning on the day on which the person became
entitled to make the claim and ending on:
(a) if the SEGC has made a determination under
subregulation 7.5.82(1) to pay that amount in instalments—
the day on which that amount would, if no such
determination had been made and the money in the Fund
were unlimited, have been paid to the person; or
(b) if, because of insufficiency of the Fund, no part of that
amount is paid to the person on the day on which that amount
would, if the money in the Fund were unlimited, have been
so paid—that day; or
(c) in any other case—the day on which that amount is paid to
the person.
(2) A rate of interest determined by the SEGC for subregulation (1):
(a) must not exceed the rate that, when the determination is
made, is fixed by Rules of Court for the purposes of
paragraph 52(2)(a) of the Federal Court of Australia Act
1976; and
(b) must not be less than 5% per year.
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Regulation 7.5.80
Corporations Regulations 2001 167
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(3) As soon as practicable after determining a rate of interest, the
SEGC must publish a copy of the determination in the Gazette.
(4) If:
(a) under subregulation (1), interest is payable to a person on an
amount in respect of a period; and
(b) that amount, or a part of that amount, remains unpaid
throughout a period beginning immediately after the period
mentioned in paragraph (a);
interest, in addition to that amount and that interest, is payable to
the person, at the rate of 5% per annum, out of the Fund on that
amount, or on that part of that amount, as the case may be, in
respect of that period first mentioned in paragraph (b).
7.5.80 SEGC to notify claimant if claim disallowed
The SEGC must, after wholly or partly disallowing a claim, serve
on the claimant, or on the claimant’s solicitor, notice of the
disallowance using Form 721.
7.5.81 Arbitration of amount of cash settlement of certain claims
(1) If:
(a) a cash settlement provision requires the SEGC to pay an
amount in respect of a claim; and
(b) the amount cannot be determined by agreement between the
SEGC and the claimant;
the amount must be determined by arbitration in accordance with
this regulation.
(2) If:
(a) in relation to a claim, paragraph 7.5.77(3)(c), (5)(c) or (6)(c)
requires the SEGC to work out the value of securities, or the
number of securities that are equal in value to another value
or amount; and
(b) the value or number cannot be determined by agreement
between the SEGC and the claimant;
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Regulation 7.5.81
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the value or number is to be determined by arbitration in
accordance with this regulation.
(3) The reference to arbitration is a reference to persons appointed, in
accordance with subregulation (4), for the purposes of the
reference.
(4) For the purposes of the reference to arbitration:
(a) if the claim relates to a participating market licensee—the
participating market licensee must make the appointment, or
the participating market licensees must jointly make the
appointment; and
(aa) if the claim relates to the licensed CS facility operated by
ACH—ACH must make the appointment; and
(ab) if the claim relates to a participating market licensee and to
the licensed CS facility operated by ACH—the participating
market licensee and ACH must jointly make the
appointment; and
(b) 3 persons must be appointed; and
(c) the Minister must have approved the appointment of each
person in writing; and
(d) at least 2 of the persons must not be any of the following:
(i) if the claim relates to a participating market licensee:
(A) a representative of the participating market
licensee;
(B) a participant of the participating market
licensee;
(C) a representative of a participant of the
participating market licensee;
(ii) if the claim relates to the licensed CS facility operated
by ACH:
(A) a representative of ACH;
(B) a participant of the licensed CS facility;
(C) a representative of a participant of the licensed
CS facility;
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(iii) if the claim relates to a participating market licensee and
to the licensed CS facility operated by ACH:
(A) a representative of the participating market
licensee;
(B) a participant of the participating market
licensee;
(C) a representative of a participant of the
participating market licensee;
(D) a representative of ACH;
(E) a participant of the licensed CS facility;
(F) a representative of a participant of the licensed
CS facility;
(iv) in any case—a representative of the SEGC.
(5) If, before the commencement of this regulation, an arbitration:
(a) was to take place but had not begun; or
(b) had begun but had not been concluded;
the arbitration must take place, or continue, as if it were an
arbitration under this regulation.
(6) In this regulation:
cash settlement provision means any of the following provisions:
(a) regulation 7.5.28;
(b) regulation 7.5.29;
(j) regulation 7.5.57;
(k) regulation 7.5.62;
(l) subregulation 7.5.65(1);
(m) subregulation 7.5.65(2).
7.5.82 Instalment payments
(1) This regulation applies if, at a particular time, the SEGC is of the
opinion that, if all the amounts that, as at that time, are payable out
of the Fund in connection with claims were so paid, the Fund
would be exhausted or substantially depleted.
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Regulation 7.5.83
170 Corporations Regulations 2001
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(2) The SEGC may determine in writing that amounts so payable as at
that time must be so paid in instalments of specified amounts
payable on specified days.
7.5.83 Notification of payment of levies
For subsection 889J(7) of the Act, a notification to the
Commonwealth of payments of levy received by the operator of a
financial market as agent for the Commonwealth must:
(a) be given for each period of 6 months ending on 31 December
and 30 June; and
(b) be given in writing to:
(i) the Secretary of the Department of the Treasury; or
(ii) another officer of that Department notified in writing by
the Secretary to the receiver of the levy; and
(c) set out the total of the levies (if any) that became payable in
the period; and
(d) set out the total of the levies (if any) received in the period;
and
(e) be given not later than 2 weeks after the end of the period.
7.5.84 Notification of payment of levies
For subsection 889K(6) of the Act, a notification to the
Commonwealth of payments of levy received by an operator of a
financial market as agent for the Commonwealth must:
(a) be given for each period of 6 months ending on 31 December
and 30 June; and
(b) be given in writing to:
(i) the Secretary of the Department of the Treasury; or
(ii) another officer of that Department notified in writing by
the Secretary to the receiver of the levy; and
(c) set out the total of the levies (if any) that became payable in
the period; and
(d) set out the total of the levies (if any) received in the period;
and
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(e) be given not later than 2 weeks after the end of the period.
Subdivision 4.11—Other provisions relating to compensation
7.5.85 Prescribed body corporate with arrangements covering
clearing and settlement facility support
For subsection 891A(1) of the Act, each of the following bodies is
a prescribed body corporate:
(a) ASX Settlement and Transfer Corporation Pty Limited (also
known as ‘ASTC’);
(b) ACH.
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Division 5 Provisions common to both kinds of compensation arrangements
Regulation 7.5.86
172 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5—Provisions common to both kinds of
compensation arrangements
7.5.86 Excess money in National Guarantee Fund
(1) The Minister may notify the SEGC that the Minister is satisfied
that:
(a) a market licensee specified in the notification is operating a
financial market to which Division 4 of Part 7.5 of the Act
applies; or
(b) each market licensee specified in the notification is operating
a financial market to which Division 4 of Part 7.5 of the Act
applies.
(2) For section 892G of the Act, if, on a day, the amount in the NGF is
greater than the minimum amount identified in accordance with
section 889I of the Act, the amount by which it is greater is excess
money.
7.5.87 Excess money in fidelity fund
(1) For section 892G of the Act, if, on a day:
(a) a fidelity fund (other than the NGF) is the sole source of
funds available to cover claims for the purposes of Division 3
arrangements; and
(b) the amount in the fidelity fund is greater than the minimum
amount of cover identified in accordance with
paragraph 882A(4)(a) of the Act;
the amount by which it is greater is excess money.
(2) For section 892G of the Act, if, on a day:
(a) a fidelity fund (other than the NGF) is not the sole source of
funds available to cover claims for the purposes of Division 3
arrangements; and
(b) the amount in the fidelity fund is greater than the minimum
amount of cover specified in accordance with
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Regulation 7.5.88
Corporations Regulations 2001 173
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paragraph 882A(4)(a) of the Act, reduced by the sum of the
amounts of cover from each other source of funds available
for the purposes of the same Division 3 arrangements;
the amount by which it is greater is excess money.
7.5.88 Minister’s arrangements for use of excess money from
compensation funds
(1) The Minister may approve, in writing, a matter as an approved
purpose for which excess money may be used by a market licensee.
(2) The matter must relate to:
(a) the creation of, or participation in, a program for the
development of the financial industry that:
(i) is conducted primarily for a public benefit; and
(ii) is not conducted primarily to promote the profitability
of the commercial operations of any market; or
(b) the payment of premiums for fidelity insurance or other
compensation arrangements for the financial market as part
of an approved compensation arrangement for Division 3 of
Part 7.5 of the Act; or
(c) costs paid by the market licensee in relation to ASIC’s
responsibilities for market supervision created by the
Corporations Amendment (Financial Market Supervision)
Act 2010; or
(d) the making of payments to ASIC by the market licensee in
relation to ASIC’s responsibilities for market supervision
created by the Corporations Amendment (Financial Market
Supervision) Act 2010.
Examples for paragraph (2)(a):
1 Public education activities.
2 Research into future product or service needs.
3 Research and consulting services intended to improve the international
performance of Australian financial markets.
4 Improvement of Australia’s role as a financial centre.
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Regulation 7.5.89
174 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) The Minister may, in relation to an approved purpose, determine
conditions to which the use of excess money for the approved
purpose must be subject.
7.5.89 Payment of excess money from NGF
(1) If the Minister notifies the SEGC in accordance with
subregulation 7.5.86(1), the SEGC may determine, in writing, that
an amount of excess money specified in the determination be paid
to 1 or more of the market licensees specified in the Minister’s
notification.
(2) The amount must be paid in accordance with the SEGC’s
determination.
(3) A market licensee that receives a payment of excess money from
the NGF must pay the excess money into an account that:
(a) is kept separately from other accounts used by the market
licensee; and
(b) is designated as a ‘financial industry development account’.
7.5.90 Use of excess money from NGF
(1) A market licensee that receives a payment of excess money from
the NGF must use the money only:
(a) for a purpose approved under subregulation 7.5.88(1), and in
accordance with any conditions to which the use of the
money is subject under subregulation 7.5.88(3); or
(b) in accordance with subregulation (3); or
(c) to make a repayment to the NGF.
(2) If the market licensee contravenes subregulation (1), the market
licensee must:
(a) notify the SEGC of the contravention as soon as practicable;
and
(b) repay the amount involved into its financial industry
development account.
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Regulation 7.5.91
Corporations Regulations 2001 175
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(3) If there is no immediate requirement for the market licensee to use
an amount of excess money in its financial industry development
account:
(a) the market licensee may invest the amount in a way
authorised by section 892C of the Act; and
(b) if the market licensee invests excess money during a
financial year, the market licensee must pay any interest or
profit from the investment into its financial industry
development account.
(4) The market licensee must, in respect of each financial year during
which, at any time, there is money in its financial industry
development account, lodge a completed Form 719 with ASIC not
later than 3 months after the end of the financial year.
7.5.91 Payment of excess money from fidelity fund
If there is excess money in a fidelity fund (other than the NGF), the
market licensee to which the excess money relates may pay an
amount of the excess money into an account that:
(a) is kept separately from other accounts used by the market
licensee; and
(b) is designated as a ‘financial industry development account’.
7.5.92 Use of excess money from fidelity fund
(1) A market licensee that receives a payment of excess money from a
fidelity fund must use the money only:
(a) for a purpose approved under subregulation 7.5.88(1), and in
accordance with any conditions to which the use of the
money is subject under subregulation 7.5.88(3); or
(b) in accordance with subregulation (3); or
(c) to make a repayment to the fidelity fund.
(2) If the market licensee contravenes subregulation (1), the market
licensee must repay the amount involved into its financial industry
development account.
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Regulation 7.5.93
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(3) If there is no immediate requirement for the market licensee to use
an amount of excess money in its financial industry development
account:
(a) the market licensee may invest the amount in a way
authorised by section 892C of the Act; and
(b) if the market licensee invests excess money during a
financial year, the market licensee must pay any interest or
profit from the investment into its financial industry
development account.
(4) The market licensee must, in respect of each financial year during
which, at any time, there is money in its financial industry
development account, lodge a completed Form 719 with ASIC not
later than 3 months after the end of the financial year.
7.5.93 Qualified privilege
(1) For section 892J of the Act, the following persons each have
qualified privilege in respect of the publication of a statement, in
accordance with Division 3 of Part 7.5 of the Act, that a contract of
insurance does, or does not cover a particular participant:
(a) a market licensee;
(b) the board of the market licensee;
(c) an agent of the board of the market licensee;
(d) an employee of a market licensee.
(2) For section 892J of the Act, the following persons each have
qualified privilege in respect of a notice, in accordance with
Division 3 of Part 7.5 of the Act, seeking claims in relation to a
particular participant of a financial market:
(a) a market licensee;
(b) the board of the market licensee;
(c) an agent of the board of the market licensee;
(d) an employee of a market licensee.
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Part 7.5A—Regulation of derivative transactions
and derivative trade repositories
Division 2—Regulation of derivative transactions:
derivative transaction rules
Subdivision 2.1—Power to make derivative transaction rules
7.5A.30 Meaning of reporting requirements
(1) This regulation is made for paragraph 901A(6)(b) of the Act.
(2) Each facility in the following list is prescribed in relation to a class
of derivatives if the facility is licensed, authorised or registered to
operate as a derivative trade repository for that class of derivatives
under a law of a foreign jurisdiction:
(a) DTCC Data Repository (U.S.) LLC;
(b) DTCC Derivatives Repository Ltd.;
(c) DTCC Data Repository (Japan) KK;
(d) DTCC Data Repository (Singapore) Pte Ltd;
(e) Chicago Mercantile Exchange Inc.;
(f) INFX SDR, Inc.;
(g) ICE Trade Vault, LLC;
(h) the Monetary Authority appointed under section 5A of the
Exchange Fund Ordinance of Hong Kong;
(i) UnaVista Limited;
(j) a facility determined by ASIC for the purposes of this
paragraph.
(2A) ASIC must not determine a facility under paragraph (2)(j), unless
ASIC is satisfied that:
(a) either:
(i) the facility has adopted rules, procedures or processes
that substantially implement the CPSS-IOSCO
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Principles applicable to the regulation of derivative
trade repositories; or
(ii) the foreign jurisdiction concerned has adopted
legislation, policies, standards or practices that
substantially implement the CPSS-IOSCO Principles
applicable to the regulation of derivative trade
repositories; and
(b) adequate arrangements exist for cooperation between ASIC
and an appropriate authority responsible for licensing,
authorising or registering the facility as a derivative trade
repository in the foreign jurisdiction.
(2B) A determination made under paragraph (2)(j):
(a) must be published by ASIC in the Gazette; and
(b) is not a legislative instrument.
(3) Paragraphs (2)(a) to (i) cease to have effect at the end of 30 June
2015.
(4) In this regulation:
CPSS-IOSCO Principles means the principles for financial market
infrastructures:
(a) issued in April 2012 by the Committee on Payment and
Settlement Systems (the CPSS) and the International
Organization of Securities Commissions (the IOSCO); and
(b) as supplemented, superseded or modified from time to time
by principles, recommendations or standards issued by the
CPSS or IOSCO (or a successor of the CPSS or IOSCO).
7.5A.50 Persons on whom requirements cannot be imposed
(1) This regulation is made for paragraph 901D(a) of the Act.
(2) The class of persons on whom the derivative transaction rules
cannot impose requirements consists of end users.
(3) An end user is a person who is not:
(a) an Australian ADI; or
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(b) a CS facility licensee; or
(c) a financial services licensee; or
(d) a person:
(i) who provides a financial service, relating to derivatives,
only to wholesale clients; and
(ii) whose activities, relating to derivatives, are regulated by
an overseas regulatory authority.
Subdivision 2.2—Enforceable undertakings
7.5A.101 Enforceable undertakings
(1) This regulation is made for paragraphs 901F(1)(d) and 903E(1)(d)
of the Act.
(2) ASIC may accept a written undertaking, entered into by a person
who is alleged to have contravened section 901E or 903D of the
Act, as an alternative to civil proceedings.
(3) Without limiting subregulation (2), ASIC may accept an
undertaking that includes any of the following:
(a) an undertaking to take specified action within a specified
period;
(b) an undertaking to refrain from taking specified action;
(c) an undertaking to pay a specified amount within a specified
period to the Commonwealth or to some other specified
person.
Note: An undertaking may relate to an infringement notice given in relation
to the alleged contravention. For example, an infringement notice may
require a person to enter into an undertaking; a person may enter into
an undertaking to comply with an infringement notice; a person may
enter into an undertaking if the person does not comply with an
infringement notice or the infringement notice is withdrawn.
(4) If ASIC agrees, in writing, to the withdrawal or variation of the
undertaking, the person who entered into the undertaking may
withdraw or vary the undertaking.
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Regulation 7.5A.102
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(5) If ASIC is satisfied that the person who entered into the
undertaking has breached a term of the undertaking, ASIC may
apply to a Court for an order under subregulation (6).
(6) If the Court is satisfied that the person has breached a term of the
undertaking, the Court may make one or more of the following
orders:
(a) an order directing the person to comply with the term of the
undertaking;
(b) an order directing the person to pay to the Commonwealth an
amount not exceeding the amount of any financial benefit
that the person has obtained directly or indirectly and that is
reasonably attributable to the breach;
(c) an order directing the person to compensate another person
who has suffered loss or damage as a result of the breach;
(d) any other order that the Court considers appropriate.
(7) This regulation does not affect the liability of a person to civil
proceedings if ASIC does not accept an undertaking in relation to
the alleged contravention of section 901E or 903D of the Act.
Subdivision 2.3—Infringement notices
7.5A.102 Infringement notices
(1) This Subdivision is made for sections 901F and 903E of the Act.
(2) This Subdivision does not require ASIC to give an infringement
notice to a person in relation to the alleged contravention of those
sections.
(3) This Subdivision does not affect the liability of a person to civil
proceedings if ASIC does not give an infringement notice to the
person in relation to the alleged contravention of those sections.
(4) This Subdivision does not affect the liability of a person to civil
proceedings if:
(a) ASIC gives an infringement notice to the person in relation to
the alleged contravention of those sections; and
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(b) either:
(i) the notice is withdrawn; or
(ii) the person does not comply with the notice in
accordance with regulation 7.5A.108.
(5) This Subdivision does not limit or otherwise affect the penalty that
a Court could impose on the person for a contravention of those
sections.
7.5A.103 Definitions for Subdivision
In this Subdivision:
compliance period has the meaning given by
subregulation 7.5A.108(2).
infringement notice means an infringement notice given under
regulation 7.5A.104.
recipient, in relation to an infringement notice, means the person to
whom ASIC gives the infringement notice or intends to give the
infringement notice under regulation 7.5A.104.
rule means a provision of:
(a) the derivative transaction rules mentioned in section 901E of
the Act; or
(b) derivative trade repository rules mentioned in section 903D
of the Act.
7.5A.104 When infringement notice can be given
(1) If ASIC has reasonable grounds to believe that a person has
contravened a rule, ASIC may give the person an infringement
notice in relation to the alleged contravention.
(2) ASIC may give a person an infringement notice that is in relation
to more than one alleged contravention of a rule.
(3) If ASIC withdraws an infringement notice given to a person in
relation to the alleged contravention of a rule, ASIC may give the
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person a new infringement notice in relation to the alleged
contravention.
Example: An infringement notice given to a person in relation to an alleged
contravention of a rule may be withdrawn, and a new infringement
notice given to the person in relation to that alleged contravention, if
the original infringement notice contained an error.
7.5A.105 Statement of reasons must be given
(1) Before giving a recipient an infringement notice, ASIC must:
(a) give the recipient a written statement that sets out ASIC’s
reasons for believing that the recipient has contravened a
rule; and
(b) give the recipient, or a representative of the recipient, an
opportunity to:
(i) appear at a private hearing before ASIC; and
(ii) give evidence to ASIC; and
(iii) make submissions to ASIC;
in relation to the alleged contravention of the rule.
(2) If a recipient, or a representative of a recipient, gives ASIC
evidence or information under paragraph (1)(b), the evidence or
information is not admissible in evidence in any proceedings
against the recipient, other than proceedings relating to the
evidence or information being false or misleading.
7.5A.106 Contents of infringement notice
An infringement notice:
(a) must state the date on which it is given; and
(b) must be identified by a unique code; and
(c) must state the name and address of the recipient; and
(d) must state that it is being given by ASIC under
regulation 7.5A.104; and
(e) must specify details of each alleged contravention of the rule
to which the infringement notice relates, including:
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(i) the conduct that made up each alleged contravention
(including, to the extent known, the date on which it
occurred and the place at which it occurred); and
(ii) each rule that ASIC alleges the recipient has
contravened; and
(f) must, in relation to each rule that ASIC alleges the recipient
has contravened, state the maximum pecuniary penalty that a
Court could order the recipient to pay for contravening the
rule; and
(g) must, in relation to each alleged contravention of the rule to
which the infringement notice relates:
(i) specify the penalty (if any) payable for each alleged
contravention of the rule; and
(ii) if subparagraph (i) applies:
(A) specify the total penalty that the recipient must
pay to the Commonwealth; and
(B) state that the penalty is payable to ASIC on
behalf of the Commonwealth; and
(C) explain how payment of the penalty can be
made; and
(iii) specify the remedial measures (if any) that the recipient
must undertake or institute; and
(iv) specify the sanctions (if any) that the recipient must
accept; and
(v) specify the terms of an undertaking (if any) that the
recipient must enter into under regulation 7.5A.101; and
(h) must state that the recipient may choose not to comply with
the infringement notice, but that if the recipient does not
comply, civil proceedings may be brought against the
recipient in relation to the alleged contravention; and
(i) must explain what the recipient must do to comply with the
infringement notice and the effect of compliance with the
infringement notice; and
(j) must state that the recipient may apply to ASIC:
(i) for withdrawal of the notice under regulation 7.5A.111;
or
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(ii) for an extension of time under regulation 7.5A.109; and
(k) must state that ASIC may publish details of the infringement
notice under regulation 7.5A.115; and
(l) may include any other information that ASIC considers
necessary.
Note: For sub-subparagraph (g)(ii)(A), the total penalty is the sum of the
penalties payable under subparagraph (g)(i).
7.5A.107 Amount of penalty payable to the Commonwealth
(1) The penalty payable (if any) for an alleged contravention of a rule
is the amount determined by ASIC.
Note: See subsections 901F(2) and 903E(2) of the Act for the maximum
penalty payable.
(2) If an infringement notice is in relation to more than one alleged
contravention of a rule, the total penalty payable under the
infringement notice is the sum of the penalties payable (if any) for
the alleged contraventions.
7.5A.108 Compliance with infringement notice
(1) A recipient complies with an infringement notice if, during the
compliance period, the recipient does all of the following:
(a) pays the penalty specified in the infringement notice under
sub-subparagraph 7.5A.106(g)(ii)(A) (if any);
(b) undertakes or institutes the remedial measures specified in
the infringement notice under subparagraph 7.5A.106(g)(iii)
(if any);
(c) accepts the sanctions specified in the infringement notice
under subparagraph 7.5A.106(g)(iv) (if any);
(d) enters into an undertaking (including an undertaking to
comply with the infringement notice) with the terms
specified in the infringement notice under
subparagraph 7.5A.106(g)(v) (if any).
(2) The compliance period for an infringement notice:
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(a) starts on the day on which the infringement notice is given to
the recipient; and
(b) ends:
(i) 27 days after the day on which the infringement notice
is given to the recipient; or
(ii) on another day permitted by this regulation.
(3) If the recipient applies for a further period of time in which to
comply with the infringement notice, and the application is
granted, the compliance period ends at the end of the further period
allowed.
(4) If the recipient applies for a further period of time in which to
comply with the infringement notice, and the application is
refused, the compliance period ends on the later of:
(a) 28 days after the day on which the infringement notice was
given to the recipient; and
(b) 7 days after the notice of refusal is given to the recipient.
(5) If the recipient applies for the infringement notice to be withdrawn,
and the application is refused, the compliance period ends 28 days
after the notice of refusal is given to the recipient.
7.5A.109 Extension of compliance period
(1) During the compliance period, a recipient may apply, in writing, to
ASIC for a further period of no more than 28 days in which to
comply with the infringement notice.
(2) The application must:
(a) specify the infringement notice’s unique code; and
(b) set out the reasons for the application.
(3) Within 14 days after receiving the application, ASIC must:
(a) grant or refuse a further period no longer than the period
sought (and no more than 28 days); and
(b) notify the recipient in writing of the decision and, if the
decision is a refusal, the reasons for the decision.
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(4) If ASIC refuses a further period under paragraph (3)(a), the
recipient may not make a further application under
subregulation (1) in relation to that infringement notice.
(5) If ASIC has not granted or refused a further period under
paragraph (3)(a) within 14 days after receiving the application,
ASIC is taken to have refused the further period.
7.5A.110 Effect of compliance with infringement notice
(1) Subject to subregulation (3), if:
(a) an infringement notice is given to a recipient in relation to an
alleged contravention of a rule; and
(b) the infringement notice is not withdrawn; and
(c) the recipient complies with the infringement notice;
the effects in subregulation (2) apply.
(2) The effects are:
(a) any liability of the recipient to the Commonwealth for the
alleged contravention of the rule is discharged; and
(b) no civil or criminal proceedings may be brought or continued
by the Commonwealth against the recipient for the conduct
specified in the infringement notice as being the conduct that
made up the alleged contravention of the rule; and
(c) no administrative action may be taken by ASIC under
section 914A, 915B, 915C or 920A of the Act against the
recipient for the conduct specified in the infringement notice
as being the conduct that made up the alleged contravention
of the rule; and
(d) the recipient is not taken to have admitted guilt or liability in
relation to the alleged contravention; and
(e) the recipient is not taken to have contravened the rule.
Note: Third parties are not prevented from commencing civil proceedings
against the recipient, including under section 1101B of the Act. ASIC
is not prevented from applying for an order on behalf of a plaintiff in
accordance with the Act.
(3) Subregulation (2) does not apply if the recipient has knowingly:
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(a) provided false or misleading information to ASIC; or
(b) withheld evidence or information from ASIC;
in relation to the alleged contravention of the rule.
7.5A.111 Application to withdraw infringement notice
(1) During the compliance period, a recipient of an infringement notice
may apply, in writing, to ASIC for the infringement notice to be
withdrawn.
(2) The application must:
(a) specify the infringement notice’s unique code; and
(b) set out the reasons for the application.
(3) Within 14 days after receiving the application, ASIC must:
(a) withdraw or refuse to withdraw the infringement notice; and
(b) notify the recipient in writing of the decision and, if the
decision is a refusal, the reasons for the decision.
(4) Without limiting subregulation (3), ASIC may withdraw the
infringement notice after taking into account the following matters:
(a) whether the recipient has previously been found to have
contravened the rule to which the notice relates;
(b) the circumstances in which the contravention set out in the
infringement notice is alleged to have occurred;
(c) whether an infringement notice has previously been given to
the recipient in relation to an alleged contravention of the
rule to which the notice relates, and whether the recipient
complied with the infringement notice;
(d) any other relevant matter.
(5) If, under paragraph (3)(a), ASIC refuses to withdraw the
infringement notice, the recipient may not make a further
application under subregulation (1) in relation to that infringement
notice.
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(6) If ASIC has not withdrawn, or refused to withdraw, the
infringement notice within 14 days after receiving the application,
ASIC is taken to have refused to withdraw the infringement notice.
7.5A.112 Withdrawal of infringement notice by ASIC
(1) ASIC may withdraw an infringement notice given by ASIC
without an application under regulation 7.5A.111 having been
made.
(2) Without limiting subregulation (1), ASIC may withdraw the
infringement notice after taking into account a matter mentioned in
paragraph 7.5A.111(4)(a), (b), (c) or (d).
7.5A.113 Notice of withdrawal of infringement notice
(1) A notice withdrawing an infringement notice must include the
following information:
(a) the name and address of the recipient;
(b) the date the infringement notice was given;
(c) the infringement notice’s unique code.
(2) The notice must also state that the infringement notice is
withdrawn.
7.5A.114 Withdrawal of notice after compliance
(1) ASIC may withdraw an infringement notice after the recipient has
complied with the infringement notice only if the recipient agrees,
in writing, to the withdrawal.
(2) If an infringement notice is withdrawn after the penalty specified in
it (if any) has been paid, the Commonwealth must refund the
amount of the penalty to the person who paid it.
(3) If an infringement notice is withdrawn after the recipient has
complied with a requirement specified in the infringement notice:
(a) to undertake or institute remedial measures; or
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(b) to accept sanctions other than a payment of a penalty to the
Commonwealth; or
(c) to enter into an undertaking;
the remedial measures, sanctions or undertaking are taken to no
longer be enforceable by ASIC.
7.5A.115 Publication of details of infringement notice
(1) If ASIC gives an infringement notice to a recipient, ASIC may, at
the end of the compliance period, publish details of the
infringement notice.
(2) If ASIC decides to publish details of the infringement notice, ASIC
must publish the details in accordance with either or both of
subregulations (3) and (4).
(3) ASIC may publish details of an infringement notice by publishing
in the Gazette:
(a) a copy of the infringement notice; and
(b) the following statements:
(i) a statement as to whether the recipient has complied
with the infringement notice;
(ii) if the recipient has complied with the infringement
notice, a statement that:
(A) compliance is not an admission of guilt or
liability; and
(B) the recipient is not taken to have contravened
the rule;
(iii) if the recipient has not complied with the infringement
notice, a statement that:
(A) the giving of an infringement notice to a
recipient is only an allegation that the recipient
has contravened the rule; and
(B) the recipient is not taken to have contravened
the rule.
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(4) ASIC may publish details of an infringement notice by issuing a
written or oral statement that:
(a) includes an accurate summary of the details of the
infringement notice, including:
(i) the name of the recipient; and
(ii) the amount of the penalty specified in the infringement
notice (if any); and
(iii) the remedial measures specified in the infringement
notice (if any); and
(iv) the sanctions specified in the infringement notice (if
any); and
(v) the terms of an undertaking specified in the
infringement notice (if any); and
(vi) the conduct specified in the infringement notice as being
the conduct that made up the alleged contravention of
the rule; and
(b) includes the following statements:
(i) a statement as to whether the recipient has complied
with the infringement notice;
(ii) if the recipient has complied with the infringement
notice, a statement that:
(A) compliance is not an admission of guilt or
liability; and
(B) the recipient is not taken to have contravened
the rule;
(iii) if the recipient has not complied with the infringement
notice, a statement that:
(A) the giving of an infringement notice to a
recipient is only an allegation that the recipient
has contravened the rule; and
(B) the recipient is not taken to have contravened
the rule.
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Division 5—Regulation of licensed derivative trade
repositories: other obligations and powers
7.5A.150 Obligations and powers—confidential information
(1) This regulation is made for subsection 903A(5) of the Act and
applies to information given to ASIC, by the operator (or an officer
of the operator) of a licensed derivative trade repository, under a
provision of:
(a) Part 7.5A of the Act; or
(b) the regulations made for that Part; or
(c) the derivative transaction rules or derivative trade repository
rules.
(2) The information is taken, for the purpose of section 127
(confidentiality) of the ASIC Act, to be given to ASIC in
confidence in connection with the performance of ASIC’s
functions under the Act, unless:
(a) the information has been made publicly available in
accordance with the provisions mentioned in
paragraph (1)(a), (b) or (c); or
(b) a law requires or permits the information to be released.
7.5A.150A European Union requests for derivative trade data
(1) For paragraph 904B(2)(d) of the Act, the persons or bodies
mentioned in Article 81(3)(a) to (e), (g), (h) and (j) of Regulation
(EU) No 648/2012 of the European Parliament and the Council of
the European Union, dated 4 July 2012, may request a derivative
trade repository licensee to provide the person or body with
derivative trade data that is retained in the derivative trade
repository.
(2) For subsection 904B(4) of the Act, information must not be
included in derivative trade data provided in response to a request
under subregulation (1) unless:
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Chapter 7 Financial services and markets
Part 7.5A Regulation of derivative transactions and derivative trade repositories
Division 5 Regulation of licensed derivative trade repositories: other obligations and
powers
Regulation 7.5A.150B
192 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the information relates to a transaction or position that is
required to be reported under either of the following:
(i) rules made under paragraph 901A(2)(b) of the
Corporations Act 2001;
(ii) the conditions of an exemption given under
section 907D of the Corporations Act 2001; and
(b) subregulation (3) or (4) applies.
(3) This subregulation applies if the information relates to a
transaction or position that would, but for mutual regulatory
recognition arrangements, be required to be reported under one or
more of the following:
(a) Regulation (EU) No 648/2012 of the European Parliament
and the Council of the European Union dated 4 July 2012;
(b) Commission Implementing Regulation (EU) No 1247/2012
of the European Parliament and the Council of the European
Union, dated 19 December 2012;
(c) Commission Delegated Regulation (EU) No 148/2013 of the
European Commission, dated 19 December 2012.
(4) This subregulation applies if the information:
(a) relates to a European Union or European Economic Area
underlying asset, index, rate or currency; and
(b) is not covered by subregulation (3).
7.5A.150B Other requests for derivative trade data
(1) For paragraph 904B(2)(d) of the Act, the Monetary Authority of
Singapore may request a derivative trade repository licensee to
provide the Monetary Authority of Singapore with derivative trade
data that is retained in the derivative trade repository.
(2) The request must be made in accordance with the standards set out
in the report “Authorities’ access to trade repository data”:
(a) issued jointly by the Committee on Payment and Settlement
Systems (the CPSS) and the International Organization of
Securities Commissions (the IOSCO); and
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Regulation of derivative transactions and derivative trade repositories Part 7.5A
Regulation of licensed derivative trade repositories: other obligations and powers
Division 5
Regulation 7.5A.150B
Corporations Regulations 2001 193
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(b) as supplemented, superseded or modified from time to time
by principles, recommendations or standards issued by the
CPSS or IOSCO (or a successor of the CPSS or IOSCO).
(3) If part of a request under subregulation (1) is made in accordance
with the standards mentioned in subregulation (2), the part is taken
to be a request for the purpose of this regulation.
(4) For subsection 904B(4) of the Act, information must not be
included in derivative trade data provided to a person or body in
response to a request under subregulation (1) unless:
(a) the information relates to a transaction or position that is
required to be reported under either of the following:
(i) rules made under paragraph 901A(2)(b) of the
Corporations Act 2001;
(ii) the conditions of an exemption given under
section 907D of the Corporations Act 2001; and
(b) subregulation (5) or (6) applies.
(5) This subregulation applies if the information:
(a) relates to a transaction or position that is, or would be, but for
mutual regulatory recognition arrangements, required to be
reported under the laws of the jurisdiction in which the
person or body is located; and
(b) is required by the person or body as part of the performance
of its functions or exercise of its powers.
(6) This subregulation applies if the information:
(a) either:
(i) relates to an underlying asset, index, rate or currency of
the jurisdiction in which the person or body is located;
or
(ii) relates to a counterparty located in the jurisdiction in
which the person or body is located; and
(b) is required by the person or body as part of the performance
of its functions or exercise of its powers; and
(c) is not covered by subregulation (5).
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Chapter 7 Financial services and markets
Part 7.5A Regulation of derivative transactions and derivative trade repositories
Division 5 Regulation of licensed derivative trade repositories: other obligations and
powers
Regulation 7.5A.151
194 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.5A.151 Obligations relating to derivative trade data
For subparagraph 904B(5)(b)(i) of the Act, every derivative trade
repository licensee is excused from complying with a request for
derivative trade data under paragraph 904B(2)(e) of the Act.
7.5A.200 ASIC may assess licensee’s compliance
(1) This regulation is made for paragraph 904J(4)(d) of the Act.
(2) The following persons or bodies are prescribed for that paragraph:
(a) the Clean Energy Regulator;
(b) the Australian Competition and Consumer Commission;
(c) the Australian Prudential Regulation Authority;
(d) the Australian Taxation Office;
(e) the Australian Transaction Reports and Analysis Centre;
(f) an authority of a State or Territory having functions and
powers similar to those of the Director of Public
Prosecutions;
(g) the police force or service of each State and the Northern
Territory;
(h) Consumer Protection, Western Australia;
(i) the Commissioner of State Revenue of Western Australia;
(j) NSW Fair Trading;
(k) Consumer Affairs Victoria;
(l) the State Revenue Office of Victoria;
(m) the Office of Fair Trading of Queensland;
(n) the Office of State Revenue of Queensland;
(o) Consumer and Business Services, South Australia;
(p) Consumer Affairs and Fair Trading, Tasmania;
(q) the Department of Treasury and Finance of Tasmania;
(r) the Office of Regulatory Services of the Australian Capital
Territory;
(s) Consumer Affairs, the Northern Territory.
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Regulation of derivative transactions and derivative trade repositories Part 7.5A
Regulation of prescribed derivative trade repositories Division 7
Regulation 7.5A.250
Corporations Regulations 2001 195
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 7—Regulation of prescribed derivative trade
repositories
7.5A.250 Obligations and powers—confidential information
(1) This regulation is made for subsection 906A(3) of the Act and
applies to information given to ASIC, by the operator (or an officer
of the operator) of a prescribed derivative trade repository, under a
provision of:
(a) Part 7.5A of the Act; or
(b) the regulations made for that Part; or
(c) the derivative transaction rules or derivative trade repository
rules.
(2) The information is taken, for the purpose of section 127
(confidentiality) of the ASIC Act, to be given to ASIC in
confidence in connection with the performance of ASIC’s
functions under the Act, unless:
(a) the information has been made publicly available in
accordance with the provisions mentioned in
paragraph (1)(a), (b) or (c); or
(b) a law requires or permits the information to be released.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.5A Regulation of derivative transactions and derivative trade repositories
Division 8 Other matters
Regulation 7.5A.270
196 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 8—Other matters
7.5A.270 Record-keeping
(1) This regulation is made for paragraph 854A(1)(b) of the Act.
(2) A derivative trade repository licensee must keep the following
records:
(a) a list of names and contact details of each director, secretary
and senior manager of the licensee;
(b) a list of names and contact details of individuals who hold
more than 15% of the voting power in the licensee.
(3) The licensee must keep the records for at least 5 years.
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Financial services and markets Chapter 7
Licensing of providers of financial services Part 7.6
Regulation 7.6.01
Corporations Regulations 2001 197
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Part 7.6—Licensing of providers of financial
services
7.6.01 Need for Australian financial services licence: general
(1) For paragraph 911A(2)(k) of the Act, the provision of the
following services is covered by an exemption from the
requirement to hold an Australian financial services licence:
(a) dealing in a financial product by a person in the capacity of
the trustee of a superannuation entity (other than the trustee
of a public offer entity);
(b) dealing in a financial product by a person in the capacity of
the trustee of a pooled superannuation trust in the following
circumstances:
(i) the pooled superannuation trust is used for investment
of the assets of a regulated superannuation fund;
(ii) the regulated superannuation fund has net assets of at
least $10 million on the date that it first invests in the
pooled superannuation trust;
(c) dealing in a financial product by a person in the capacity of
the trustee of a pooled superannuation trust in the following
circumstances:
(i) the pooled superannuation trust is used for investment
of the assets of a regulated superannuation fund;
(ii) the regulated superannuation fund has net assets of at
least $5 million, but less than $10 million, on the date
that it first invests in the pooled superannuation trust
(whether that date is before or after the FSR
commencement);
(iii) the trustee has a reasonable expectation that the net
assets of the regulated superannuation fund will equal or
exceed $10 million not later than 3 months of the date
on which it first invests in the pooled superannuation
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Regulation 7.6.01
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trust (whether that date is before or after the FSR
commencement);
(d) dealing in a financial product by a person in the capacity of
the trustee of a pooled superannuation trust in circumstances
in which the pooled superannuation trust is not used for the
investment of the assets of a regulated superannuation fund;
(e) a financial service provided by a person (person 1) in the
following circumstances:
(i) the service consists only of:
(A) informing a person (person 2) that a financial
services licensee, or a representative of the
financial services licensee, is able to provide a
particular financial service, or a class of
financial services; and
(B) giving person 2 information about how person 2
may contact the financial services licensee or
representative;
(ii) person 1 is not a representative of the financial service
licensee, or of a related body corporate of the financial
services licensee;
(iii) person 1 discloses to person 2, when the service is
provided:
(A) any benefits (including commission) that person
1, or an associate of person 1, may receive in
respect of the service; and
(B) any benefits (including commission) that person
1, or an associate of person 1, may receive that
are attributable to the service;
(iv) the disclosure mentioned in subparagraph (iii) is
provided in the same form as the information mentioned
in subparagraph (i);
(ea) a financial service provided by a person (person 1) in the
following circumstances:
(i) the service consists only of:
(A) informing a person (person 2) that a financial
services licensee, or a representative of the
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Licensing of providers of financial services Part 7.6
Regulation 7.6.01
Corporations Regulations 2001 199
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financial services licensee, is able to provide a
particular financial service, or a class of
financial services; and
(B) giving person 2 information about how person 2
may contact the financial services licensee or
representative;
(ii) person 1 is a representative of the financial service
licensee, or of a related body corporate of the financial
services licensee;
(f) a financial service provided in the following circumstances:
(i) a person (person 1) is a person that is not in the
jurisdiction;
(ii) person 1 arranges, on behalf of another person (person
2), for a holder of an Australian financial services
licence to deal in a financial product;
(iii) person 1 believes on reasonable grounds that person 2 is
not in the jurisdiction;
(fa) a financial service is provided in the following
circumstances:
(i) a person (person 1) is a person that is not in the
jurisdiction;
(ii) person 1 enters into an arrangement with the holder of
an Australian financial services licence under which a
financial product, or a beneficial interest in a financial
product, is to be held on trust for, or on behalf of,
another person (person 2);
(iii) person 1 believes on reasonable grounds that person 2 is
not in the jurisdiction;
(g) a financial service provided in the following circumstances:
(i) a person (person 1) is a person that is not in the
jurisdiction;
(ii) person 1 believes on reasonable grounds that another
person (person 2) is not in the jurisdiction;
(iii) person 1 deals on behalf of person 2 in a financial
product that cannot be traded on a licensed market;
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Regulation 7.6.01
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(iv) person 1 believes on reasonable grounds that each
person who is a party to the dealing or any transaction
to which the dealing relates is a person that is not in the
jurisdiction;
(h) a dealing in a financial product that consists only of an
employer sponsor paying contributions on behalf of an
employee into a superannuation product or RSA product;
(ha) a dealing in a financial product that consists only of a trustee
of a superannuation fund paying the benefits of a member
into a superannuation product or RSA product;
(hb) a dealing in a financial product that consists only of an RSA
provider paying the benefits of an RSA product holder into a
superannuation product or RSA product;
(hc) a dealing in a financial product that consists only of an
employer-sponsor arranging for the issue of a superannuation
product to an employee;
(k) a financial service provided in the following circumstances:
(i) the financial service is provided in respect of a financial
product by a person (who may be described as a
‘sub-custodian’) under an arrangement with a financial
services licensee (the master-custodian);
(ii) the master-custodian is authorised by its Australian
financial services licence to provide a custodial or
depository service;
(iii) a beneficial interest in the financial product is held by
the master-custodian on trust for or on behalf of a client
as part of providing a custodial or depository service
authorised by its Australian financial services licence;
(l) a financial service provided by a person (person 1) in the
following circumstances:
(i) the financial service is provided to another person
(person 2) in the ordinary course of person 1’s business;
(ii) person 1 does not provide financial services as a
significant part of person 1’s business;
(iii) the financial service consists only of either or both of:
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Regulation 7.6.01
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(A) advising person 2 in relation to a non-cash
payments facility that person 2 may use or has
used to pay person 1 for goods or services; and
(B) arranging to deal in a non-cash payments
facility that person 2 will use to pay person 1
for goods or services;
(iv) the goods and services do not include any financial
products or financial services;
Example:
A retailer might offer its customers a variety of payment methods for
payment for goods and services, such as a credit card, Bpay, or direct
debit.
A recommendation of a particular payment method, or the expression
of an opinion about the payment methods available to the customer,
should not require an Australian financial services licence.
(la) a financial service provided by a person (person 1) to another
person (person 2), if:
(i) the financial service is provided in the ordinary course
of person 1’s business; and
(ii) person 1:
(A) holds an Australian financial services licence
authorising the provision of financial services
other than the financial service mentioned in
subparagraph (i); or
(B) does not hold an Australian financial services
licence; and
(iii) the financial service consists of either or both of the
following:
(A) advising person 2 in relation to a non-cash
payments facility that person 2 may use, or has
used, to pay person 1 for a financial product or
a financial service;
(B) arranging to deal in a non-cash payments
facility that person 2 will use to pay person 1
for a financial product or a financial service;
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Regulation 7.6.01
202 Corporations Regulations 2001
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(lb) a financial service that is the issue of a non-cash payment
facility if:
(i) it is a facility for making non-cash payments; and
(ii) under the facility, payments may be made only to the
issuer of the facility or a related body corporate of the
issuer;
(lc) an Australia Post presentment and payment processing
facility known as POSTbillpay or billmanager;
(m) a financial service provided by a person in the following
circumstances:
(i) the service consists only of either or both of:
(A) dealing in derivatives; and
(B) dealing in foreign exchange contracts;
(ii) the service does not involve the making of a market for
derivatives or foreign exchange contracts;
(iii) the dealing is entered into for the purpose of managing a
financial risk that arises in the ordinary course of a
business;
(iv) the person does not deal in derivatives or foreign
exchange contracts as a significant part of the person’s
business;
(v) the dealing is entered into on the person’s own behalf;
Example of financial service to which paragraph (m) applies:
A series of forward foreign exchange contracts entered into by a gold mining company to hedge against the risk of a fall in the price of gold.
Example of financial service to which paragraph (m) does not apply:
The issue and disposal of derivatives relating to the wholesale price of electricity are not transactions to which this paragraph applies.
(ma) a financial service provided by a person in the following
circumstances:
(i) the service consists only of 1 or more of the following:
(A) dealing in derivatives over carbon units,
Australian carbon credit units or eligible
international emissions units;
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Regulation 7.6.01
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(B) dealing in a carbon unit, an Australian carbon
credit unit or an eligible international emissions
unit;
(C) dealing in foreign exchange contracts for
carbon units, Australian carbon credit units or
eligible international emissions units;
(ii) the service does not involve the making of a market for
those derivatives, units or foreign exchange contracts;
(iii) the dealing is entered into for the purpose of managing
financial risk in relation to the surrender, cancellation or
relinquishment of carbon units, Australian carbon credit
units or eligible international emissions units by:
(A) the person; or
(B) a related body corporate of the person; or
(C) an associated entity of the person;
Note: Section 175 of the Carbon Credits (Carbon Farming Initiative) Act
2011 deals with the relinquishment of Australian carbon credit units.
Section 210 of the Clean Energy Act 2011 deal with the
relinquishment of carbon units.
(iv) the person does not deal in those derivatives, units or
foreign exchange contracts as the principal activity of
the person’s business;
(v) the dealing is entered into:
(A) on the person’s own behalf; or
(B) on behalf of a related body corporate of the
person; or
(C) on behalf of an associated entity of the person;
(mb) a financial service that a person is engaged by the Clean
Energy Regulator to provide to the Clean Energy Regulator,
or on behalf of the Clean Energy Regulator, that relates to the
conduct of an auction of carbon units under the Clean Energy
Act 2011, other than a financial service that arises in the
course of the following activities:
(i) the management of any deposit lodged to participate in
an auction under the Clean Energy Act 2011;
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Regulation 7.6.01
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(ii) direct participation in an auction under the Clean
Energy Act 2011, whether on the person’s own behalf or
on behalf of a person other than the Clean Energy
Regulator;
(n) a financial service provided by a person (person 1) to another
person (person 2) in the following circumstances:
(i) person 1 is not in this jurisdiction;
(ii) person 2 is in this jurisdiction;
(iii) the service consists only of dealing in a financial
product or class of financial products;
(iv) a financial services licensee whose financial services
licence covers the provision of the service arranges for
person 1 to provide the service to person 2;
(na) a financial service provided by a person (person 1) to another
person (person 2) in the following circumstances:
(i) person 1 is not in this jurisdiction;
(ii) person 2 is in this jurisdiction;
(iii) the service consists only of 1 or more of:
(A) the provision of financial product advice to
person 2; and
(B) person 1 making a market; and
(C) the provision of a custodial or depositary
service to person 2;
(iv) person 1 is:
(A) a related body corporate of a financial services
licensee whose financial services licence covers
the provision of the service; or
(B) a party to a business joint venture with a
financial services licensee whose financial
services licence covers the provision of the
service;
(v) the financial services licensee arranges for person 1 to
provide the service;
(vi) the financial service licensee’s licence is subject to a
condition requiring it to assume responsibility for the
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Regulation 7.6.01
Corporations Regulations 2001 205
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conduct of person 1 in the provision of the financial
service mentioned in this paragraph;
(o) a financial service that is the provision of financial product
advice in the following circumstances:
(i) the advice is only general advice in relation to a
financial product or class of financial products;
(ii) the advice is provided by the product issuer of the
financial product or class of financial products;
(iii) the advice is provided in the media;
(iv) the product issuer provides the following information:
(A) the advice has been prepared without taking
account of the client’s objectives, financial
situation or needs;
(B) for that reason, the client should, before acting
on the advice, consider the appropriateness of
the advice, having regard to the client’s
objectives, financial situation and needs;
(C) if the advice relates to the acquisition, or
possible acquisition, of a particular financial
product, the client should obtain a Product
Disclosure Statement relating to the product
and consider the Statement before making any
decision about whether to acquire the product;
(oa) the provision of financial product advice if the advice:
(i) is provided by an actuary in the ordinary course of
providing actuarial services; and
(ii) could not reasonably be expected to be included in a
document that is to be given to a retail client; and
(iii) is provided to:
(A) a wholesale client; or
(B) the Commonwealth, a State or a Territory; or
(C) an exempt public authority;
(p) a financial service provided by a person in the following
circumstances:
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Regulation 7.6.01
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(i) the financial service relates to insurance entered into, or
proposed to be entered into, for the purposes of a law
(including a law of a State or Territory) that relates to
workers compensation;
(ii) the person is licensed to provide the service under the
law of the State or Territory in which the service is
provided;
Example: The activities of a licensed insurer under the Workers Compensation
Act 1987 of New South Wales.
Note: A licensed insurer would require an Australian financial services
licence to the extent that the licensed insurer provides a financial
service in respect of a non-workers compensation product or a
non-workers compensation component of a product.
(pa) a financial service provided to a wholesale client by a body
that:
(i) is not a company; and
(ii) is established or constituted under a law of the
Commonwealth or a State or Territory; and
(iii) is required under a law of the Commonwealth or a State
or Territory to carry on the business of insurance or to
undertake liability under a contract of insurance; and
(iv) is regulated for the provision of insurance under a law
of the Commonwealth or a State or Territory;
(q) a financial service provided by a person in the following
circumstances:
(i) the financial service consists only of the variation or
disposal of a financial product by the person;
(ii) the person also issued the original product;
(iii) the person provides the financial service under the terms
of the financial product;
(r) a financial service that is a dealing (or arranging for a
dealing) in:
(i) a debenture; or
(ii) a legal or equitable right or interest in a debenture; or
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(iii) an option to acquire, by way of issue or transfer, a
debenture or a legal or equitable right or interest in a
debenture;
by the issuer of the debenture, the legal or equitable right or
interest or the option;
(s) the provision of financial product advice if the advice:
(i) is provided to a financial services licensee; and
(ii) is only general advice in relation to a financial product
or a class of financial products; and
(iii) is advice that the financial services licensee is
authorised to provide; and
(iv) is provided by:
(A) the product issuer; or
(B) a related body corporate of the product issuer;
(t) advising in relation to, or dealing in, a medical indemnity
insurance product;
(u) a financial service provided by a person in the following
circumstances:
(i) the financial service is advice included in a document
issued in connection with a takeover bid or an offer of a
financial product;
(ii) the advice is an opinion on matters other than financial
products and does not include advice on a financial
product;
(iii) the document includes a statement that the person is not
operating under an Australian financial services licence
when giving the advice;
(iv) the person discloses, in the document, the information
mentioned in paragraphs 947B(2)(d) and (e) of the Act;
Example: A geologist’s report on a mining lease included in a PDS.
(v) a financial service provided by a person (the nominee) in the
following circumstances:
(i) the nominee holds a financial product or a beneficial
interest in a financial product on trust for or on behalf of
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Regulation 7.6.01
208 Corporations Regulations 2001
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a client of a financial services licensee who is a
participant in a licensed market (the participant);
(ii) the financial product:
(A) was acquired on the licensed market by the
participant on behalf of the client; or
(B) is to be disposed of on the licensed market by
the participant on behalf of the client;
(iii) the participant is authorised by an Australian financial
services licence to provide a custodial or depository
service;
(iv) the participant’s licence is subject to a condition
requiring it to assume responsibility for the conduct of
the nominee in relation to the provision of a financial
service mentioned in this paragraph;
(v) the nominee is a wholly-owned subsidiary of the
participant;
(w) a financial service that is provided:
(i) by the Export Finance and Insurance Corporation
established by the Export Finance and Insurance
Corporation Act 1991; and
(ii) only to a wholesale client;
(x) a service in relation to a litigation funding scheme mentioned
in regulation 5C.11.01;
(y) a service in relation to a litigation funding arrangement
mentioned in regulation 5C.11.01;
(z) a financial service provided by a person in the following
circumstances:
(i) the person is:
(A) the operator of a qualifying gas trading
exchange; or
(B) a participant in relation to a qualifying gas
trading exchange;
(ii) the service is provided in relation to a qualifying gas
exchange product traded on the qualifying gas trading
exchange.
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Regulation 7.6.01
Corporations Regulations 2001 209
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(2) If paragraph (1)(c) applies, and the net assets of the regulated
superannuation fund do not equal or exceed $10 million at the end
of the 3 month period mentioned in subparagraph (1)(c)(ii):
(a) the trustee of the pooled superannuation trust must offer to
redeem the investment of the regulated superannuation fund
as soon as practicable after the end of the period; and
(b) the regulated superannuation fund has not accepted the
redemption offer within 3 months after the offer was made;
and
(c) the net assets of the regulated superannuation fund do not
equal or exceed $10 million by the end of the 3 month period
mentioned in paragraph (b);
the trustee of the pooled superannuation trust must apply for an
Australian financial services licence.
(3) Subregulation (1) is not intended to affect the determination of
whether the provision of a service that is not described by that
paragraph is, or is not, the provision of a financial service.
(4) In relation to a regulated principal under Division 1 of Part 10.2 of
the Act:
(a) a reference in paragraph (1)(e) or (ea) to a financial services
licensee includes the regulated principal; and
(b) paragraph (a) ceases to apply at the end of the transition
period in relation to the regulated principal.
(5) For paragraphs (1)(b) and (c), if a pooled superannuation trust is
used for investment of the assets of more than 1 regulated
superannuation fund:
(a) each of the regulated superannuation funds must comply with
paragraph (1)(b) or (c); and
(b) it is not necessary for each of the regulated superannuation
funds to comply with the same paragraph in relation to a
particular pooled superannuation trust.
(6) Paragraph (1)(r) ceases to have effect at the end of 2 years after the
FSR commencement.
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Regulation 7.6.01AAA
210 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(6A) Paragraph (1)(t) ceases to have effect in respect of a person
advising in relation to, or dealing in, a medical indemnity insurance
product, on the earlier of:
(a) the date on which the person obtains an Australian financial
services licence in respect of the product; and
(b) 11 March 2004.
(7) In this regulation:
business joint venture means a contractual agreement between 2 or
more parties for the purpose of carrying on a business undertaking.
media means any of the following:
(a) a newspaper, magazine, journal or other periodical;
(b) a radio or television broadcasting service;
(c) an electronic service (including a service provided by the
Internet) that is:
(i) operated on a commercial basis; and
(ii) similar to a newspaper, a magazine, a radio broadcast or
a television broadcast.
7.6.01AAA Particular financial products not exempted
For subsection 911A(5A) of the Act, the exemption under
paragraph 911A(2)(b) of the Act does not apply in relation to a
margin lending facility.
7.6.01AA Persons taken to hold financial services licences covering
First Home Saver Accounts
(1) For paragraph 926B(1)(c) of the Act, Part 7.6 of the Act applies as
if the following subsection were inserted after subsection 911A(6):
“(7) The regulations may provide that a financial services licence is
taken to cover the provision of financial services specified in the
regulations.”
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Financial services and markets Chapter 7
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Regulation 7.6.01AB
Corporations Regulations 2001 211
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) For subsection 911A(7) of the Act, a person’s financial services
licence is taken to cover the provision of a financial service in
relation to a beneficial interest in an FHSA trust (within the
meaning given in section 18 of the First Home Saver Accounts Act
2008) if the licence would cover the service if it were provided in
relation to a superannuation product.
7.6.01AB Obligation on persons providing exempt financial service
(1) For paragraph 926B(1)(c) of the Act, Part 7.6 of the Act applies as
if section 911A of the Act were modified to insert the following
subsection after subsection (5A):
‘(5B) If the regulations prescribe an exemption under paragraph (2)(k)
that covers the provision of a service by a person in relation to:
(a) a litigation funding scheme mentioned in regulation 5C.11.01
of the Corporations Regulations 2001; or
(b) a litigation funding arrangement mentioned in that
regulation;
the regulations may require the person to have adequate practices,
and follow certain procedures, for managing conflicts of interest in
relation to the scheme or arrangement.’
(2) For subsection 911A(5B) of the Act, if a person is providing, or
has provided, a financial service covered by the exemption
mentioned in paragraph 7.6.01(1)(x) or (y), the person must:
(a) maintain, for the duration of the litigation funding scheme or
arrangement, adequate practices for managing any conflict of
interest that may arise in relation to activities undertaken by
the person, or an agent of the person, in relation to the
scheme or arrangement; and
(b) follow the written procedures mentioned in subregulation (4)
for the duration of the scheme or arrangement.
Note: The exemption mentioned in paragraph 7.6.01(1)(x) relates to a
litigation funding scheme mentioned in regulation 5C.11.01. The
exemption mentioned in paragraph 7.6.01(1)(y) relates to a litigation
funding arrangement mentioned in that regulation.
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Chapter 7 Financial services and markets
Part 7.6 Licensing of providers of financial services
Regulation 7.6.01AB
212 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) A person commits an offence if the person contravenes
subregulation (2).
Penalty: 50 penalty units.
(4) For subregulation (2), a person has adequate practices for
managing a conflict of interest that may arise if the person can
show through documentation that:
(a) the person has conducted a review of the person’s business
operations that relate to the scheme or arrangement to
identify and assess potential conflicting interests; and
(b) the person:
(i) has written procedures for identifying and managing
conflicts of interest; and
(ii) has implemented the procedures; and
(c) the written procedures are reviewed at intervals no greater
than 12 months; and
(d) the written procedures include procedures about the
following:
(i) monitoring the person’s operations to identify potential
conflicting interests;
(ii) how to disclose conflicts of interest to general members
and prospective general members;
(iii) managing situations in which interests may conflict;
(iv) protecting the interests of general members and
prospective general members;
(v) how to deal with situations in which a lawyer acts for
both the funder and general members;
(vi) how to deal with a situation in which there is a
pre-existing relationship between any of a funder, a
lawyer and a general member;
(vii) reviewing the terms of a funding agreement to ensure
the terms are consistent with Division 2 of Part 2 of the
Australian Securities and Investments Commission Act
2001;
(viii) recruiting prospective general members; and
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Regulation 7.6.01A
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(e) the terms of the funding agreement are reviewed to ensure
the terms are consistent with Division 2 of Part 2 of the
Australian Securities and Investments Commission Act 2001;
and
(f) the matters mentioned in paragraphs (a) to (e) are
implemented, monitored and managed by:
(i) if the person is an entity other than an individual—the
senior management or partners of the person; or
(ii) if the person is an individual that represents an entity—
the senior management or partners of the entity.
7.6.01A Providing financial services on behalf of a person who
carries on a financial services business
For subparagraph 911B(1)(c)(iv) of the Act, travellers’ cheques are
prescribed.
7.6.01B Need for Australian financial services licence: financial
product advice provided by the media
(1) For paragraph 911A(5)(a) of the Act, the exemptions from the
requirement to hold an Australian financial services licence
provided for in paragraphs 911A(2)(ea), (eb) and (ec) apply subject
to the condition that a person mentioned in any of those
paragraphs, or a representative of a person mentioned in any of
those paragraphs, who provides financial product advice states the
following matters, to the extent to which they would reasonably be
expected to influence, or be capable of influencing, the provision
of the financial product advice:
(a) any remuneration the person or the person’s representative is
to receive for providing the advice;
(b) any pecuniary or other interest that the provider of the advice,
or an associate of the provider, has in relation to the advice, if
the provider of the advice, or an associate of the provider,
would be likely to obtain a material financial benefit, or
avoid a material financial loss, if the advice were acted upon.
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Regulation 7.6.01B
214 Corporations Regulations 2001
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(2) The statement mentioned in subregulation (1) must be presented in
a way that:
(a) will adequately bring it to the attention of a reasonable
person who may read or hear the financial product advice to
which the statement relates; and
(b) is easy for a reasonable person to understand.
(3) Subregulation (1) does not apply if:
(a) a person mentioned in paragraph 911A(2)(ea), (eb) or (ec) of
the Act, and the person’s representatives:
(i) comply with an industry code of practice; or
(ii) comply with the Statement of Principles laid down by
the Australian Press Council; or
(iii) are subject to an internal policy that is approved by the
board or governing body of the person; and
(b) the code, Statement of Principles or policy contains
requirements relating to:
(i) the manner in which financial conflicts of interest are
dealt with; or
(ii) the prevention of financial conflicts of interest.
(4) Subregulation (1) does not apply in relation to:
(a) a newspaper or periodical, a transmission made by means of
an information service, or a sound recording, video recording
or data recording, the principal purpose of which is to report
and provide comment on news, and not to provide financial
product advice; and
(b) paid advertising in relation to which a reasonable person is
able to distinguish the advertising from other material in the
newspaper, periodical, transmission, sound recording, video
recording or data recording.
(5) A reference in subparagraph 911A(2)(eb)(ii) of the Act to
transmissions that are generally available to the public includes
transmissions provided as part of a subscription broadcasting
service within the meaning of the Broadcasting Services Act 1992.
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Regulation 7.6.01BA
Corporations Regulations 2001 215
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(6) For paragraph 911A(6)(d) of the Act, each of the following
services is an information service:
(a) a broadcasting service within the meaning of the
Broadcasting Services Act 1992;
(b) a datacasting service within the meaning of the Broadcasting
Services Act 1992;
(c) a service provided by the Internet.
(7) In this regulation:
associate means:
(a) in relation to a body corporate—a related body corporate; and
(b) in relation to an individual—a spouse (including a defacto
partner), child, step-child, parent, step-parent, brother,
half-brother, sister or half-sister of the individual.
internal policy includes a code of ethics or editorial guidelines.
material financial benefit means a financial benefit exceeding
$10 000 in value.
material financial loss means a financial loss exceeding $10 000
in value.
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
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Regulation 7.6.01BA
216 Corporations Regulations 2001
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(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;
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Regulation 7.6.01BA
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(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
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Regulation 7.6.01C
218 Corporations Regulations 2001
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(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.”.
7.6.01C Obligation to cite licence number in documents
(1) For subsection 912F(1) of the Act, the following documents are
specified:
(a) a Financial Services Guide described in Division 2 of
Part 7.7 of the Act;
(b) a supplementary Financial Services Guide described in
Division 2 of Part 7.7 of the Act;
(c) a Product Disclosure Statement;
(d) a supplementary Product Disclosure Statement;
(e) a Statement of Advice described in Division 3 of Part 7.7 of
the Act;
(f) an application form for an application under section 1016A
of the Act;
(g) a document containing information required by regulations
made under section 1017DA of the Act;
(h) a document prepared for section 1017B of the Act, notifying
a person of changes and events;
(i) a Replacement Product Disclosure Statement.
(2) On and after 1 July 2004, for subsection 912F(1) of the Act, a
periodic statement under section 1017D of the Act is specified.
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Regulation 7.6.02
Corporations Regulations 2001 219
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.6.02 Alternative dispute resolution systems
(1) For subparagraph 912A(2)(a)(i) of the Act, ASIC must take the
following matters into account when considering whether to make
or approve standards or requirements relating to internal dispute
resolution:
(a) Australian Standard AS ISO 10002-2006 Customer
satisfaction—Guidelines for complaints handling in
organizations (ISO 10002:2004 MOD) published by SAI
Global Limited on 5 April 2006;
(b) any other matter ASIC considers relevant.
(2) ASIC may:
(a) vary or revoke a standard or requirement that it has made in
relation to an internal dispute resolution procedure; and
(b) vary or revoke the operation of a standard or requirement that
it has approved in its application to an internal dispute
resolution procedure.
(3) For subparagraph 912A(2)(b)(i) of the Act, ASIC must take the
following matters into account when considering whether to
approve an external dispute resolution scheme:
(a) the accessibility of the dispute resolution scheme;
(b) the independence of the dispute resolution scheme;
(c) the fairness of the dispute resolution scheme;
(d) the accountability of the dispute resolution scheme;
(e) the efficiency of the dispute resolution scheme;
(f) the effectiveness of the dispute resolution scheme;
(g) any other matter ASIC considers relevant.
(4) ASIC may:
(a) specify a period for which an approval of an external dispute
resolution scheme is in force; and
(b) make an approval of an external dispute resolution scheme
subject to conditions specified in the approval, including
conditions relating to the conduct of an independent review
of the operation of the scheme; and
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(c) vary or revoke:
(i) an approval of an external dispute resolution scheme; or
(ii) the specification of a period for which an approval is in
force; or
(iii) a condition to which an approval of an external dispute
resolution scheme is subject.
(5) For paragraph 926B(1)(a) of the Act, a financial services licensee
who provides a financial service in the capacity of any of the
following:
(a) a trustee appointed under the will or on the intestacy of a
person;
(b) a trustee appointed under an express trust if:
(i) the settlor is a natural person; and
(ii) the interest in the trust is not a financial product;
(c) an attorney appointed under an enduring power of attorney;
does not have to comply with paragraph 912A(2)(b) of the Act in
relation to the provision of the service if complaints about the
service provided by the licensee may be made to the Ombudsman
of a State or Territory.
(6) For paragraph 926B(1)(a) of the Act, a financial services licensee
who provides a financial service in the capacity as administrator of
the estate of an individual does not have to comply with
paragraph 912A(1)(g) of the Act in relation to the provision of the
service if complaints about the service provided by the licensee
may be made under a State or Territory law listed in
Schedule 8AC.
7.6.02AAA Compensation arrangements if financial services
provided to persons as retail clients (Act s 912B)
(1) For paragraph 912B(2)(a) of the Act, arrangements mentioned in
subsection 912B(1) of the Act are, unless the financial services
licensee is an exempt licensee, subject to the requirement that the
licensee hold professional indemnity insurance cover that is
adequate, having regard to:
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(a) the licensee’s membership of a scheme (or schemes)
mentioned in paragraph 912A(2)(b) of the Act, taking
account of the maximum liability that has, realistically, some
potential to arise in connection with:
(i) any particular claim against the licensee; and
(ii) all claims in respect of which the licensee could be
found to have liability; and
(b) relevant considerations in relation to the financial services
business carried on by the licensee, including:
(i) the volume of business; and
(ii) the number and kind of clients; and
(iii) the kind, or kinds, of business; and
(iv) the number of representatives of the licensee.
(2) For paragraph 912B(3)(c) of the Act, a matter that ASIC must have
regard to, before approving particular arrangements under
paragraph 912B(2)(b) of the Act, is whether those arrangements
provide coverage that is adequate, having regard to matters of the
kind mentioned in subregulation (1).
(3) In this regulation, exempt licensee means:
(a) a company or institution of any of the following kinds:
(i) a general insurance company regulated by APRA under
the Insurance Act 1973;
(ii) a life insurance company regulated by APRA under the
Life Insurance Act 1995;
(iii) an authorised deposit-taking institution regulated by
APRA under the Banking Act 1959; or
(b) a licensee (related licensee):
(i) that is related, within the meaning of section 50 of the
Act, to a company or institution mentioned in
paragraph (a); and
(ii) in respect of which the company or institution has
provided a guarantee that:
(A) ensures payment of the obligations of the
related licensee to its retail clients to an extent
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that is adequate within the meaning of
subregulation (1); and
(B) is approved in writing by ASIC.
Note: A decision to refuse to approve a guarantee is a reviewable decision
under section 1317B of the Act.
Security bonds held by ASIC
(4) A security bond lodged with ASIC by a licensee in consequence of
the operation of regulation 7.6.02AA (as affected by any
instrument made by ASIC under paragraph 926A(2)(c) of the Act)
may be discharged or returned by ASIC (in whole or in part),
without application from the licensee or surety who provided the
security, in any of the following circumstances:
(a) the licensee certifies, in the form approved by ASIC, that it
holds professional indemnity insurance, or has an alternative
compensation arrangement in place that provides
compensation protection for clients of the licensee, that is
adequate to cover claims to which the security bond could
apply;
(b) the licensee certifies, in the form approved by ASIC, that it
holds professional indemnity insurance, or has an alternative
compensation arrangement in place that, together with other
financial resources available to it, provides compensation
protection for clients of the licensee, that is adequate to cover
claims to which the security bond could apply;
(c) the licensee is a company or institution of any of the
following kinds:
(i) a general insurance company regulated by APRA under
the Insurance Act 1973;
(ii) a life insurance company regulated by APRA under the
Life Insurance Act 1995;
(iii) an authorised deposit-taking institution regulated by
APRA under the Banking Act 1959;
(d) the licensee certifies, in the form approved by ASIC, that it
holds a guarantee given by a company or institution
mentioned in paragraph (c) that, together with other financial
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resources available to it, provides compensation protection
for clients of the licensee that is adequate to cover claims to
which the security bond could apply.
Note: A decision to refuse to approve a guarantee is a reviewable decision
under section 1317B of the Act.
Transitional
(5) Subregulations (1), (2) and (3) take effect as follows:
(a) for a financial services licensee whose licence commences
before 1 January 2008—on 1 July 2008;
(b) for a financial services licensee whose licence commences on
or after 1 January 2008—on the date of commencement of
the licence.
7.6.02AA Modification of section 912B of the Act: professional
indemnity insurance and security instead of compensation
arrangements
(1) For paragraph 926B(1)(c) of the Act, Part 7.6 of the Act applies as
if section 912B of the Act were modified by substituting that
section with the following:
‘912B Financial services provided to persons as retail clients—
requirements in certain circumstances
(1) Subsection (2) applies in relation to a financial services
licensee if the licensee’s financial services licence authorises
the licensee to carry on an activity:
(a) to which paragraph 19(1)(b) or
subparagraph 31B(1)(a)(ii) or (b)(ii) of the Insurance
(Agents and Brokers) Act 1984 (the repealed Act) would
have applied if that Act were not repealed; and
(b) for which the licensee would have been required under
those provisions to have in force an acceptable contract
of professional indemnity insurance.
(2) The repealed Act, and any associated provisions, continue to
apply in relation to the licensee to the extent necessary to
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require the licensee to have in force an acceptable contract of
professional indemnity insurance in relation to the activity.
(3) Subsections (4) and (5) apply in relation to a financial
services licensee if the licensee’s financial services licence
authorises the licensee to carry on an activity:
(a) to which Part 7.3 of the old Corporations Act would
have applied if that Part were not repealed; and
(b) for which the licensee would have been required under
that Part to have a dealers licence or investment advisers
licence that could have been subject to the condition
specified in paragraph 786(2)(d) of the old Corporations
Act.
(4) Section 914A of the Act is taken to authorise ASIC to impose
the condition specified in paragraph 786(2)(d) of the old
Corporations Act as a condition of the licensee’s financial
services licence.
(5) If ASIC acts under subsection (4), Part 7.3 of the old
Corporations Act, and any associated provisions, continue to
apply to the extent necessary to specify the content of the
condition specified in paragraph 786(2)(d) of the old
Corporations Act.’
(6) In this section:
associated provisions, in relation to provisions (the core
provisions) of a particular Act as in force at a particular time,
include (but are not limited to):
(a) any regulations or other instruments that are or were in
force for the purposes of any of the core provisions at
that time; and
(b) any interpretation provisions that apply or applied in
relation to any of the core provisions at that time
(whether or not they also apply or applied for other
purposes); and
(c) any provisions relating to liability (civil or criminal) that
apply or applied in relation to any of the core provisions
at that time (whether or not they also apply or applied
for other purposes); and
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Licensing of providers of financial services Part 7.6
Regulation 7.6.02AA
Corporations Regulations 2001 225
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(d) any provisions that limit or limited, or that otherwise
affect or affected, the operation of any of the core
provisions at that time (whether or not they also limit or
limited, or affect or affected, the operation of other
provisions).
old Corporations Act means this Act as in force immediately
before the FSR commencement.’.
(2) Subregulation (1) operates only in relation to a financial services
licensee (other than an exempt licensee under
regulation 7.6.02AAA):
(a) who has not complied with subsection 912B(1) of the Act, in
its unmodified form; and
(b) until the licensee does so comply.
(3) Subregulations (1) and (2) are not taken to displace, or diminish,
the requirement for a financial services licensee to comply with
subsection 912B(1) of the Act in its unmodified form.
(4) A security bond lodged with ASIC by a financial services licensee
in compliance with section 912B of the Act as modified by
subregulation (1), or with any provision of the old Corporations
Act, may be released by ASIC, at its discretion, if:
(a) ASIC considers that, in relation to the licensee, a security
bond is no longer required because the licensee:
(i) has complied with subsection 912B(1) of the Act, in its
unmodified form; or
(ii) is an exempt licensee within the meaning of
regulation 7.6.02AAA; and
(b) ASIC has published on its internet website, and in a daily
newspaper having national circulation:
(i) a proposal that it release the security bond; and
(ii) a direction to the web address at which further
information may be obtained; and
(c) ASIC has advertised, at that web address, the existence of the
security bond, and an invitation to submit valid claims
against the bond; and
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Part 7.6 Licensing of providers of financial services
Regulation 7.6.02AB
226 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(d) 3 months after publication of the advertisement, no valid
claim has been submitted.
7.6.02AB Modification of section 761G of the Act: meaning of retail
client and wholesale client
For the provisions of the Act set out in column 2 of the following
table, the Parts of the Act specified in column 3 apply as if
section 761G of the Act were modified by inserting after
paragraph 761G(7)(c), the following paragraph:
“(ca) the financial product, or the financial service, is acquired by a
company or trust controlled by a person who meets the
requirements of subparagraph (c)(i) or (ii);”
Column 1 Column 2 Column 3
Item Provisions of Act
1 paragraph 926B(1)(c) Part 7.6
2 paragraph 951C(1)(c) Part 7.7
3 paragraph 992C(1)(c) Part 7.8
4 paragraph 1020G(1)(c) Part 7.9
7.6.02AC Modification of section 761G of the Act: meaning of retail
client and wholesale client
For the provisions of the Act set out in column 2 of the following
table, the Parts of the Act specified in column 3 apply as if
section 761G of the Act were modified by inserting after
subsection 761G(7), the following subsections:
“(7A) In determining the net assets of a person under
subparagraph (7)(c)(i), the net assets of a company or trust
controlled by the person may be included.
Note: Control is defined in section 50AA.
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Financial services and markets Chapter 7
Licensing of providers of financial services Part 7.6
Regulation 7.6.02AD
Corporations Regulations 2001 227
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(7B) In determining the gross income of a person under
subparagraph (7)(c)(ii), the gross income of a company or trust
controlled by the person may be included.
Note: Control is defined in section 50AA.”
Column 1 Column 2 Column 3
Item Provisions of Act
1 paragraph 926B(1)(c) Part 7.6
2 paragraph 951C(1)(c) Part 7.7
3 paragraph 992C(1)(c) Part 7.8
4 paragraph 1020G(1)(c) Part 7.9
7.6.02AD Modification of section 761G of the Act: meaning of retail
client and wholesale client
For the provisions of the Act set out in column 2 of the following
table, the Parts of the Act specified in column 3 apply as if
section 761G of the Act were modified by inserting after
subsection 761G(4), the following subsection:
“(4A) For the purposes of this Chapter, if a financial product, or a
financial service, is or would be provided to, or acquired by, a
body corporate as a wholesale client, related bodies corporate of
the client are taken to be wholesale clients in respect of the
provision or acquisition of that financial product or financial
service.”
Column 1 Column 2 Column 3
Item Provisions of Act
1 paragraph 926B(1)(c) Part 7.6
2 paragraph 951C(1)(c) Part 7.7
3 paragraph 992C(1)(c) Part 7.8
4 paragraph 1020G(1)(c) Part 7.9
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Chapter 7 Financial services and markets
Part 7.6 Licensing of providers of financial services
Regulation 7.6.02AE
228 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.6.02AE Modification of section 9 of the Act: Definition of
professional investor
For the provisions of the Act set out in column 2 of the following
table, the Parts of the Act specified in column 3 apply as if
section 9 of the Act were modified by omitting paragraph (e) of the
definition of professional investor and substituting the following
paragraph:
“(e) the person has or controls gross assets of at least $10 million
(including any assets held by an associate or under a trust
that the person manages);”
Column 1 Column 2 Column 3
Item Provisions of Act
1 paragraph 926B(1)(c) Part 7.6
2 paragraph 951C(1)(c) Part 7.7
3 paragraph 992C(1)(c) Part 7.8
4 paragraph 1020G(1)(c) Part 7.9
7.6.02AF Modification of section 761G of the Act: renewal period
for accountants’ certificates
For the provisions of the Act set out in column 2 of the following
table, the Parts of the Act specified in column 3 apply as if
section 761G of the Act were modified by omitting from
paragraph 761G(7)(c) “6 months” and substituting “2 years”.
Column 1 Column 2 Column 3
Item Provisions of Act
1 paragraph 926B(1)(c) Part 7.6
2 paragraph 951C(1)(c) Part 7.7
2A section 1368 Part 7.7A
3 paragraph 992C(1)(c) Part 7.8
4 paragraph 1020G(1)(c) Part 7.9
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Financial services and markets Chapter 7
Licensing of providers of financial services Part 7.6
Regulation 7.6.02AG
Corporations Regulations 2001 229
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.6.02AG Modification of section 911A of the Act
For paragraph 926B(1)(c) of the Act, Part 7.6 of the Act applies as
if section 911A of the Act were modified by inserting after
subsection 911A(2) the following subsections:
“(2A) Also, a person (person 1) is exempt from the requirement to hold
an Australian financial services licence for a financial service they
provide to a person (person 2) in the following circumstances:
(a) person 1 is not in this jurisdiction;
(b) person 2 is an Australian citizen or is resident in Australia;
(c) the service is provided from outside this jurisdiction;
(d) person 1 does not engage in conduct that is:
(i) intended to induce people in this jurisdiction to use the
service; or
(ii) likely to have that effect.
(2B) Also, a person (person 1) is exempt from the requirement to hold
an Australian financial services licence for a financial service they
provide to a person (person 2) in the following circumstances:
(a) person 1 is not in this jurisdiction;
(b) person 1 believes on reasonable grounds that person 2 is not
in this jurisdiction;
(c) person 1 is a participant in a financial market in this
jurisdiction that is licensed under subsection 795B(2) of the
Act;
(d) the service relates to a financial product traded on the
licensed market.
(2C) Also, a person (person 1) is exempt from the requirement to hold
an Australian financial services licence for a financial service they
provide to a person (person 2) in the following circumstances:
(a) person 1 is not in this jurisdiction;
(b) person 2 is:
(i) the holder of an Australian financial services licence; or
(ii) exempt from the requirement to hold an Australian
financial services licence under paragraph 911A(2)(h);
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Regulation 7.6.02AG
230 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) person 2 is not, in relation to the service:
(i) acting as a trustee; or
(ii) acting as a responsible entity of a registered managed
investment scheme; or
(iii) otherwise acting on someone else’s behalf.
(2D) Also, a person (person 1) is exempt from the requirement to hold
an Australian financial services licence for a financial service they
provide to a person (person 2) in the following circumstances:
(a) person 1 is not in this jurisdiction;
(b) person 2 is in this jurisdiction;
(c) the service relates to a financial product:
(i) issued by person 1 following an application by, or
inquiry from, person 2; or
(ii) issued by person 1 and acquired by person 2 when
person 2 was not in this jurisdiction; or
(iii) that supplements a financial product mentioned in
subparagraphs (i) or (ii); or
(iv) that is of the same kind as, and is issued in substitution
for, a financial product mentioned in subparagraphs (i)
or (ii);
(d) person 1 does not actively solicit persons in this jurisdiction
in relation to the financial products mentioned in
subparagraphs (c)(i) to (iv);
(e) paragraph (d) does not preclude person 1 from contacting
person 2 in relation to the financial products mentioned in
subparagraphs (c)(i) to (iv) after they have been acquired by
person 2.
Note 1: For subparagraph (c)(iii), an example of this kind of financial product
includes a non-cash payment facility (such as a cheque facility) that is
added to an existing transaction or investment account.
Note 2: For subparagraph (c)(iv), examples of this kind of financial product
include:
(a) a transaction or investment account that is replaced by another transaction or investment account; or
(b) the renewal of an insurance policy.
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Regulation 7.6.02AGA
Corporations Regulations 2001 231
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2E) Also, a person (person 1) is exempt from the requirement to hold
an Australian financial services licence for a financial service they
provide to a person (person 2) in the following circumstances:
(a) person 1 is not in this jurisdiction;
(b) person 2 is a professional investor;
(c) the service consists of any or all of the following:
(i) dealing in derivatives, foreign exchange contracts,
carbon units, Australian carbon credit units or eligible
international emissions units;
(ii) providing advice on derivatives, foreign exchange
contracts, carbon units, Australian carbon credit units or
eligible international emissions units;
(iii) making a market in derivatives, foreign exchange
contracts, carbon units, Australian carbon credit units or
eligible international emissions units.
(2F) Also, a person is exempt from the requirement to hold an
Australian financial services licence for a financial service that the
person provides by bidding at an auction conducted in accordance
with a legislative instrument made for subsection 113(1) of the
Clean Energy Act 2011, if the bidding is:
(a) on the person’s own behalf; or
(b) for a related body corporate of the person; or
(c) for an associated entity of the person.”
7.6.02AGA Further modification of section 911A of the Act
For paragraph 926B(1)(c) of the Act, Part 7.6 of the Act applies in
relation to a carbon unit, an Australian carbon credit unit or an
eligible international emissions unit as if section 911A of the Act
were modified by inserting after subsection 911A(5A) the
following subsections:
‘‘Australian financial services licence in relation to carbon units,
Australian carbon credit units or eligible international emissions
units before and after 1 July 2012
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Chapter 7 Financial services and markets
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Regulation 7.6.02AGA
232 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(5B) Subsections (5C) to (5U) apply during the period that:
(a) starts on 1 May 2012; and
(b) ends on 31 December 2012, or a later day prescribed by the
regulations.
(5C) A person must not provide a financial service in relation to a
carbon unit, an Australian carbon credit unit or an eligible
international emissions unit that is a financial product unless:
(a) the person holds a licence authorising the person to provide
the financial service; or
(b) the person:
(i) is registered to provide the financial service; and
(ii) applies, no later than 31 October 2012, for a licence
authorising the person to provide the service.
Civil penalty: 2,000 penalty units.
Note: Carbon units, Australian carbon credit units and eligible international
emissions units become financial products on 1 July 2012. The period
mentioned in subsection (5B) relates to the registration process
explained in subsection (5F) onwards.
(5D) A person commits an offence if:
(a) the person is subject to a requirement under subsection (5C);
and
(b) the person engages in conduct; and
(c) the conduct contravenes the requirement.
Criminal penalty: 200 penalty units, or 2 years imprisonment, or
both.
(5E) For the purposes of subsections (5C) and (5D), it is a defence if the
person:
(a) provides a financial service in relation to a carbon unit, an
Australian carbon credit unit or an eligible international
emissions unit; and
(b) is exempted under this Act or the regulations from the
operation of those subsections.
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Financial services and markets Chapter 7
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Regulation 7.6.02AGA
Corporations Regulations 2001 233
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Note: For the purposes of subsection (5E), a defendant bears an evidential
burden in relation to the matter in subitem (3): see subsection 13.3(3)
of the Criminal Code.
(5F) A person may apply to be registered by lodging an application with
ASIC.
(5G) The application must be lodged during the period that:
(a) starts on 1 May 2012; and
(b) ends on 30 June 2012, or a later day prescribed by the
regulations.
(5H) The application must be in the approved form.
(5I) ASIC must register a person (the registrant) if (and must not
register the registrant unless):
(a) the application makes the statement set out in subsection (5J)
in relation to each of the following persons:
(i) the registrant;
(ii) if the registrant is a body corporate—each director or
secretary of the body corporate who would perform
duties in relation to the financial services to be
authorised by the registration or, if there is no director
of that kind, each director or secretary of the body
corporate;
(iii) if the registrant is a partnership or the trustees of a
trust—each partner or trustee who would perform duties
in relation to the financial services to be authorised by
the registration; and
(b) ASIC is satisfied that:
(i) the application is not false in a material particular and is
not materially misleading; and
(ii) no material matter has been omitted from the
application.
(5J) For the purposes of paragraph (5I)(a), the statement is that:
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234 Corporations Regulations 2001
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(a) a banning order or disqualification order under Division 8 of
Part 7.6 of the Corporations Act 2001 is not in force against
the person; and
(b) if the person is or has been registered—the person’s
registration is neither suspended nor cancelled; and
(c) an Australian financial services licence of the person is
neither suspended, nor has been cancelled within the last 7
years, under:
(i) paragraph 915B(1)(d) or subparagraph 915B(4)(b)(iii)
(which deals with suspension or cancellation because of
mental or physical incapacity); or
(ii) section 915C (which deals with suspension or
cancellation after offering a hearing); and
(d) if the person is not the trustee of a trust—the person is not
insolvent; and
(e) if the person is a natural person:
(i) the person is not disqualified from managing
corporations under Part 2D.6; and
(ii) the person has not been convicted, within 10 years
before the application is made, of serious fraud; and
(f) the person is of good fame and character within the meaning
of section 913B.
(5K) A person who is registered under this section is registered on the
basis that:
(a) conditions on the registration may be imposed, varied or
revoked under subsection (5N( � and
(b) the registration will be cancelled under subsection (5U); and
(c) the registration may be cancelled, revoked, terminated or
varied by or under later legislation; and
(d) no compensation is payable if:
(i) conditions on the registration are imposed, varied or
revoked as referred to in paragraph (a); or
(ii) the registration is cancelled, revoked, terminated or
varied as referred to in paragraphs (b) and (c).
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Financial services and markets Chapter 7
Licensing of providers of financial services Part 7.6
Regulation 7.6.02AGA
Corporations Regulations 2001 235
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(5L) ASIC may, at any time:
(a) impose conditions, or additional conditions, on a person’s
registration; and
(b) vary or revoke conditions imposed on a person’s registration.
(5M) ASIC may do so:
(a) on its own initiative; or
(b) if the registered person lodges an application with ASIC for
the imposition, variation or revocation.
(5N) ASIC must give the registered person written notice of the
imposition, variation or revocation of the conditions. The
imposition, variation or revocation of the conditions comes into
force on the day specified in the notice, which must not be before
the day on which the decision to impose, vary or revoke the
conditions was made.
(5O) Despite subsection (5L), ASIC may only impose conditions or
additional conditions, or vary or revoke the conditions, on the
registration after giving the registered person an opportunity:
(a) to appear, or be represented, at a hearing before ASIC that
takes place in private; and
(b) to make submissions to ASIC in relation to the conditions.
This subsection does not apply to ASIC imposing conditions when
a person becomes registered.
(5P) ASIC must ensure that the registration is subject to a condition that
specifies the financial services or classes of financial services that
the registered person is authorised to provide in relation to a carbon
unit, an Australian carbon credit unit or an eligible international
emissions unit.
(5Q) The registration is subject to such other conditions as are
prescribed by the regulations. However, ASIC cannot vary or
revoke those conditions.
(5R) If, after 1 July 2012, a registered person provides a financial
service to a retail client in relation to a carbon unit, an Australian
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Regulation 7.6.02AGA
236 Corporations Regulations 2001
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carbon credit unit or an eligible international emissions unit, the
person must:
(a) be a member of an approved external dispute resolution
scheme; and
(b) ensure that the person has in place compensation
arrangements within the meaning of section 912B.
(5S) A registered person must:
(a) do all things necessary to ensure that the financial services
provided in relation to a carbon unit, an Australian carbon
credit unit or an eligible international emissions unit by the
registration are engaged in efficiently, honestly and fairly;
and
(b) comply with the conditions on the registration; and
(c) comply with the financial services laws; and
(d) take reasonable steps to ensure that its representatives
comply with this Act and the regulations; and
(e) take reasonable steps to ensure that clients of the registered
person are not disadvantaged by any conflict of interest that
arises wholly or partly in relation to financial services
provided in relation to a carbon unit, an Australian carbon
credit unit or an eligible international emissions unit by the
registered person or its representatives; and
(f) comply with any other obligations that are prescribed by the
regulations.
(5T) For the purposes of this section:
(a) ASIC may suspend or cancel the registration of a registered
person:
(i) on its own initiative; or
(ii) if the registered person lodges an application with ASIC
for the suspension or cancellation; and
(b) a suspended registration has no effect while it remains
suspended; and
(c) ASIC may at any time revoke the suspension of a registered
person’s registration; and
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Regulation 7.6.02AH
Corporations Regulations 2001 237
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(d) ASIC must exercise its powers under this subsection in a
manner that is consistent, as far as practicable, with the
manner in which it must exercise its powers to suspend or
cancel registrations under Division 4 of Part 3 of Schedule 2
to the National Consumer Credit Protection (Transitional
and Consequential Provisions) Act 2009.
(5U) The registration of every registered person is cancelled at the end
of 31 December 2012, or a later day prescribed by the regulations.
Note: After 31 December 2012, a person who has been registered but does
not hold a licence authorising the person to provide financial services
in relation to a carbon unit, an Australian carbon credit unit or an
eligible international emissions unit will be required to cease
providing the financial services.’’.
7.6.02AH Modification of paragraph 911B(1)(e) of the Act
For paragraph 926B(1)(c) of the Act, Part 7.6 of the Act applies as
if paragraph 911B(1)(e) of the Act were modified by omitting
“911A(2)” and substituting “911A(2), (2A), (2B), (2C), (2D), (2E)
or (2F)”.
7.6.02AI Obligations to provide information about relevant
providers and controllers of body corporate licensees
For paragraph 926B(1)(c) of the Act, Part 7.6 of the Act applies as
if Division 9 of that Part were modified as set out in Schedule 8D.
7.6.02A Obligation to notify ASIC of certain matters
For subparagraph 912D(1)(a)(iii) of the Act, the following
Commonwealth legislation is specified:
(a) Australian National Registry of Emissions Units Act 2011;
(aa) Banking Act 1959;
(ab) Carbon Credits (Carbon Farming Initiative) Act 2011;
(ac) Clean Energy Act 2011;
(b) Financial Sector (Collection of Data) Act 2001;
(c) Financial Sector (Shareholdings) Act 1998;
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238 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(d) Financial Sector (Transfers of Business) Act 1999;
(e) Insurance Acquisitions and Takeovers Act 1991;
(f) Insurance Act 1973;
(g) Insurance Contracts Act 1984;
(h) Life Insurance Act 1995;
(i) Retirement Savings Accounts Act 1997;
(j) Superannuation Industry (Supervision) Act 1993;
(k) Superannuation (Resolution of Complaints) Act 1993.
7.6.03 Applying for Australian financial services licence
For paragraph 913A(a) of the Act, the following information is
required as part of an application by person for an Australian
financial services licence:
(a) if the person is a body corporate:
(i) the person’s name (including the person’s principal
business name, if any); and
(ii) the name and address of each director; and
(iii) the name and address of each secretary;
(b) if the person is applying on behalf of a partnership—the
partnership’s name and address, and the name of each
partner;
(c) if paragraphs (a) and (b) do not apply—the person’s name
(including the person’s principal business name, if any);
(d) the person’s principal business address;
(e) if the person has an ABN—the ABN;
(f) a description of the financial services that the person
proposes to provide;
(g) the arrangements (including a description of systems) by
which the person will comply with its general obligations set
out in section 912A of the Act;
(h) any other information that ASIC requires for the purpose of
considering the application.
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Regulation 7.6.03A
Corporations Regulations 2001 239
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.6.03A Australian financial services licence—requirements for a
foreign entity to appoint local agent
(1) For paragraph 913B(1)(d) of the Act, a foreign entity that:
(a) is not a foreign company; and
(b) applies for an Australian financial services licence;
must meet the requirements in subregulations (2) and (3).
(2) The foreign entity must:
(a) have appointed, as an agent, a person who is:
(i) a natural person or a company; and
(ii) resident in this jurisdiction; and
(iii) authorised to accept, on the foreign entity’s behalf,
service of process and notices; and
(b) lodge, with the application, a memorandum of appointment
or a power of attorney that is duly executed by or on behalf
of the foreign entity and states the name and address of the
agent.
(3) If the memorandum of appointment, or power of attorney, lodged
under paragraph (2)(b) was executed on behalf of the foreign
entity, the foreign entity must also lodge a copy declared in writing
to be a true copy of the document authorising the execution.
7.6.03B Foreign entity must continue to have local agent
(1) For paragraph 912A(1)(j) of the Act, a foreign entity that:
(a) is not a foreign company; and
(b) is a financial services licensee;
must meet the requirements in subregulation (2).
(2) The foreign entity must:
(a) at all times, have an agent who is:
(i) a natural person or a company; and
(ii) resident in this jurisdiction; and
(iii) authorised to accept, on the foreign entity’s behalf,
service of process and notices; and
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Regulation 7.6.04
240 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) notify ASIC of any change to:
(i) the agent; or
(ii) the name or address of the agent;
not later than 1 month after the change; and
(c) make arrangements that ensure that ASIC may treat a
document as being served on the foreign entity by leaving it
at, or by sending it by post to:
(i) an address of the agent that has been notified to ASIC;
or
(ii) if a notice or notices of a change or alteration to that
address has or have been given to ASIC—the address
shown in the most recent notice.
7.6.04 Conditions on Australian financial services licence
(1) For subsection 914A(8) of the Act, an Australian financial services
licence is subject to the following conditions:
(a) if the financial services licensee is not a body regulated by
APRA—a condition that, if any event occurs that may make
a material adverse change to the financial position of the
financial services licensee by comparison with its financial
position:
(i) at the time of the application for the Australian financial
services licence; or
(ii) as described in documents lodged with ASIC after the
application for the Australian financial services licence;
the financial services licensee must lodge with ASIC in the
prescribed form a notice setting out particulars of the event as
soon as practicable, and in any case not later than 3 business
days, after the financial services licensee becomes aware of
the event;
(b) a condition that, if:
(i) there is a change in a matter particulars of which are
entered in a register of financial services licensees; and
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Regulation 7.6.04
Corporations Regulations 2001 241
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) the change is not a direct consequence of an act by
ASIC;
the financial services licensee must lodge with ASIC in the
prescribed form particulars of the change within 10 business
days after the change;
(c) a condition that, if:
(i) there is a change in a matter particulars of which are
entered in a register of authorised representatives of
financial services licensees; and
(ii) the change is not required to be reported in accordance
with section 916F of the Act; and
(iii) the change is not a direct consequence of an act by
ASIC;
the financial services licensee must ensure that particulars of
the change are lodged with ASIC in the prescribed form
within 10 business days after the change;
(ca) a condition that the financial services licensee must ensure
that each representative of the financial services licensee that
may give an authorisation to another representative is aware
of the requirements in subsections 916F(1) and (3) of the
Act;
(d) a condition that the financial services licensee must maintain
a record of the training (relevant to the provision of financial
services) that each of its representatives has undertaken,
including:
(i) training undertaken after the representative became a
representative of the licensee; and
(ii) any training undertaken before the representative
became a representative of the licensee to the extent that
the financial services licensee is able to obtain the
information by reasonable inquiry;
(e) a condition that the financial services licensee must ensure
that, before:
(i) the financial services licensee authorises a person to
provide a financial service on its behalf as mentioned in
section 916A of the Act; or
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Regulation 7.6.04
242 Corporations Regulations 2001
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(ii) a body corporate that is an authorised representative of
the financial services licensee authorises an individual
to provide a financial service on behalf of the financial
services licensee as mentioned in section 916B of the
Act;
reasonable inquiries are made to establish:
(iii) the person’s identity; and
(iv) whether the person has already been allocated a number
by ASIC as an authorised representative;
(f) a condition that the financial services licensee must ensure
that, if:
(i) ASIC has allocated a number to an authorised
representative; and
(ii) the financial services licensee, or a body corporate that
has authorised an individual to provide a financial
service on behalf of the financial services licensee as
mentioned in section 916B of the Act, lodges a
document with ASIC that refers to the authorised
representative;
the document refers to the number.
(g) a condition that the financial services licensees must provide
a copy of an authorisation of any of its authorised
representatives:
(i) on request by any person; and
(ii) free of charge; and
(iii) as soon as practicable after receiving the request and, in
any event, within 10 business days after the day on
which it received the request;
(h) a condition that the financial services licensees must take
reasonable steps to ensure that each of its authorised
representatives supplies a copy of its authorisation by the
financial services licensee:
(i) on request by any person; and
(ii) free of charge; and
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Regulation 7.6.04
Corporations Regulations 2001 243
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(iii) as soon as practicable after receiving the request and, in
any event, within 10 business days after the day on
which it received the request;
(i) a condition that, if a financial services licensee becomes
aware of any change in control of the financial services
licensee, the financial services licensee must lodge with
ASIC, in the prescribed form, particulars of the change not
later than 10 business days after the change;
(j) a condition that, on the request of any person, the financial
services licensee must make available a copy of its financial
services licence within a reasonable time for inspection by
that person;
(k) if the financial services licensee is a limited licensee—a
condition that the licensee must, within 3 years from the date
on which the licence is granted and if requested in writing by
ASIC, demonstrate to the satisfaction of ASIC that:
(i) if the licensee is an individual—the licensee has:
(A) knowledge of the licensee’s obligations under
the Act and these Regulations; and
(B) the competence to provide the financial services
covered by the licence; or
(ii) if the licensee is a partnership or corporation—each
recognised accountant that supervises and has
responsibility for the provision of financial services
covered by the licence has:
(A) knowledge of the licensee’s obligations under
the Act and these Regulations; and
(B) the competence to provide the financial services
covered by the licence.
(2) For paragraph (1)(i):
(a) a change in control, in relation to a financial services
licensee, includes a transaction, or a series of transactions in
a 12 month period, that results in a person having control of
the financial services licensee (either alone or together with
associates of the person); and
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Regulation 7.6.04
244 Corporations Regulations 2001
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(b) control, in relation to a financial services licensee, means:
(i) if the financial services licensee is a body corporate:
(A) having the capacity to cast, or control the
casting of, more than one-half of the maximum
number of votes that might be cast at a general
meeting of the financial services licensee; or
(B) directly or indirectly holding more than one half
of the issued share capital of the financial
services licensee (not including any part of the
issued share capital that carries no right to
participate beyond a specified amount in a
distribution of either profits or capitan( � or
(ii) the capacity to control the composition of the financial
services licensee’s board or governing body; or
(iii) the capacity to determine the outcome of decisions
about the licensee’s financial and operating policies;
and
(c) for subparagraph (b)(iii), the following matters must be taken
into account in determining whether a person has the
capacity to determine the outcome of decisions about a
financial services licensee’s financial and operating policies:
(i) the practical influence the person can exert (rather than
the rights it can enforce);
(ii) any practice or pattern of behaviour affecting the
financial services licensee’s financial or operating
policies is to be taken into account (whether or not it
involves a breach of an agreement or a breach of trust).
(3) In this regulation:
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.
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Regulation 7.6.04
Corporations Regulations 2001 245
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
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 of the Act 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: See subregulation 1.0.02(1) for the meaning of simple managed
investment scheme.
Note 3: Financial product advice on self-managed superannuation funds
includes advice about acquiring or disposing of 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
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Regulation 7.6.04A
246 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(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.
7.6.04A Exemptions to notification of authorised representatives
For paragraph 916F(1AA)(d) of the Act, each of the following
financial products is prescribed:
(a) a general insurance product;
(b) a basic deposit product;
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Regulation 7.6.05
Corporations Regulations 2001 247
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(c) a facility for making non-cash payments that is related to a
basic deposit product;
(d) a consumer credit insurance product;
(e) a cash management trust interest;
(f) an FHSA product.
7.6.05 Register of financial services licensees and register of
authorised representatives of financial services licensees
(1) For subsection 922A(2) of the Act, ASIC must include the
following details for each financial services licensee in the register
of financial service licensees:
(a) the financial services licensee’s name (including the financial
services licensee’s principal business name, if any);
(b) the principal business address of the financial services
licensee;
(c) the date on which the financial services licensee’s licence
was granted;
(d) the number of the financial services licence of the financial
services licensee;
(e) if the financial services licensee has an ABN—the ABN;
(f) details of any conditions on the financial services licensee’s
licence, including details of the financial service, or class of
financial services, that the financial services licensee is
authorised to provide;
(g) any other information that ASIC believes should be included
in the register.
(2) For subsection 922A(2) of the Act, ASIC must include the
following details for each authorised representative of a financial
services licensee in the register of authorised representatives of
financial services licensees:
(a) the authorised representative’s name (including the
authorised representative’s principal business name, if any);
(b) the authorised representative’s principal business address;
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Regulation 7.6.06
248 Corporations Regulations 2001
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(c) if the authorised representative is a body corporate—the
name of each director and secretary;
(d) the number allocated to the authorised representative by
ASIC;
(e) the name of each financial services licensee for which the
authorised representative is an authorised representative;
(f) the number of the financial services licence of each financial
services licensee for which the authorised representative is an
authorised representative;
(g) if the authorised representative has an ABN—the ABN;
(h) the date of the authorised person’s authorisation, and any
other information about the authorisation that ASIC believes
should be included in the register;
(i) any other information that ASIC believes should be included
in the register.
7.6.06 ASIC register relating to persons against whom banning order
or disqualification order is made
(1) For subsection 922A(2) of the Act, ASIC must include the
following details for each person against whom a banning order is
made in the register of persons against whom a banning order
under Division 8 of Part 7.6 of the Act is made:
(a) the person’s name;
(b) the day on which the banning order took effect;
(c) whether the banning order is permanent or for a fixed period;
(d) if the banning order is for a fixed period—the period;
(e) the terms of the banning order;
(f) whether the banning order has been varied or cancelled;
(g) if the banning order has been varied:
(i) the date of the variation; and
(ii) the terms of the variation;
(h) if the banning order has been cancelled—the date of the
cancellation;
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Regulation 7.6.06A
Corporations Regulations 2001 249
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(i) any other information that ASIC believes should be included
in the register.
(2) For subsection 922A(2) of the Act, ASIC must include the
following details for each person against whom a disqualification
order is made in the register of persons against whom a
disqualification order under Division 8 of Part 7.6 of the Act is
made:
(a) the person’s name;
(b) the day on which the disqualification order took effect;
(c) whether the disqualification order is permanent or for a fixed
period;
(d) if the disqualification order is for a fixed period—the period;
(e) the terms of the disqualification order;
(f) whether the disqualification order has been varied or
revoked;
(g) if the disqualification order has been varied:
(i) the date of the variation; and
(ii) the terms of the variation;
(h) if the disqualification order has been revoked—the date of
the revocation;
(i) any other information that ASIC believes should be included
in the register.
7.6.06A Relevant provider number
For the purposes of paragraph 7.6.06B(2)(f), ASIC may give a
unique number (or any unique combination of numbers, characters,
symbols and letters) to a person who is a relevant provider.
7.6.06B Register of relevant providers
Register to include details of relevant providers
(1) For paragraph 922A(2)(e) of the Act, ASIC must enter details on a
register of relevant providers in respect of each person who is or
was a relevant provider.
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Regulation 7.6.06B
250 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Contents of register
(2) The details that must be entered on the register include the
following:
(a) the relevant provider’s name;
(b) the name of each financial services licensee on whose behalf
the relevant provider is or was authorised to provide personal
advice in relation to relevant financial products to retail
clients;
(c) if applicable, each person who controls the licensee;
(d) the relevant provider’s date and place of birth;
(e) the licence number given under subsection 913C(1) of the
Act to the relevant provider and each licensee referred to in
paragraph (b) of this subregulation;
(f) if applicable, the number given under regulation 7.6.06A;
(g) if the relevant provider is a relevant provider as a result of
section 916B of the Act:
(i) the name of the authorised representative who
authorised the relevant provider under that section; and
(ii) the number allocated to the authorised representative by
ASIC;
(h) the recent advising history of the relevant provider;
(i) the year in which the relevant provider first provided
personal advice in relation to relevant financial products to
retail clients in accordance with the law (including the law of
a State or Territory);
(j) whether the person is currently, or has ceased to be, a
relevant provider;
(k) if the relevant provider has been disqualified from managing
corporations—information contained on the register
established under section 1274AA of the Act;
(l) if the relevant provider has been banned or disqualified under
section 80 or 86 of the National Consumer Credit Protection
Act 2009—information about that banning or
disqualification;
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Regulation 7.6.06B
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(m) if the relevant provider has been banned, disqualified or
suspended under Division 8 of Part 7.6 of the Act, or under
section 130F of the Superannuation Industry (Supervision)
Act 1993—information about that banning, disqualification
or suspension;
(n) if the relevant provider has given an undertaking under either
or both section 93AA of the ASIC Act and section 322 of the
National Consumer Credit Protection Act 2009—information
about that undertaking;
(o) information about both of the following:
(i) the relevant financial products in relation to which the
relevant provider is authorised to provide personal
advice to retail clients;
(ii) whether the relevant provider is authorised to provide
class of product advice in relation to some or all of
those products;
(p) if applicable, the ABN of any of the following:
(i) the relevant provider;
(ii) each licensee referred to in paragraph (b);
(iii) if applicable, the authorised representative referred to in
paragraph (g);
(q) information about both of the following:
(i) the educational qualifications of, and any training
courses completed by, the relevant provider;
(ii) the relevant provider’s membership (if any) of
professional bodies;
to the extent that the qualifications, training courses or
memberships are relevant to the provision of financial
services;
(r) any other information that ASIC believes should be included
in the register.
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Regulation 7.6.06C
252 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Definitions
(3) In this regulation:
control has the meaning given by section 922C of the Act (as
notionally inserted by Schedule 8D to these Regulations).
recent advising history has the meaning given by section 922G of
the Act (as notionally inserted by Schedule 8D to these
Regulations).
relevant financial products has the meaning given by
section 922C of the Act (as notionally inserted by Schedule 8D to
these Regulations).
relevant provider has the meaning given by section 922C of the
Act (as notionally inserted by Schedule 8D to these Regulations).
7.6.06C Correcting registers
ASIC may correct any error in or omission from a register
maintained under regulation 7.6.05, 7.6.06 or 7.6.06B.
Note: Australian Privacy Principle 13 applies to ASIC and requires it to take
reasonable steps to correct personal information that is wrong or
misleading so that the information is accurate, up to date, complete,
relevant and not misleading (see Schedule 1 to the Privacy Act 1988).
7.6.07 Restriction on use of certain words or expressions
For subparagraph 923A(2)(b)(iii) of the Act, any other person in
respect of whom section 942B or 942C of the Act makes provision
for information to be provided in a financial services guide in
relation to the receipt of remuneration or other benefits is
prescribed.
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Authorised representatives Part 7.6A
Regulation 7.6.08
Corporations Regulations 2001 253
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 7.6A—Authorised representatives
7.6.08 Authorised representatives
(1) For paragraph 926B(1)(c) of the Act, Part 7.6 of the Act applies as
if the provisions of section 916B set out in column 2 of the
following table were modified as set out in columns 3 and 4:
Column 1 Column 2 Column 3 Column 4
Item provision of Act is modified by… and…
1 subsection 916B(3) omitting “A body
corporate that is an
authorised
representative”
substituting “An
authorised
representative
(authoriser)”
2 subsection 916B(3) omitting “the body
corporate”
substituting “the
authoriser”
3 subsection 916B(5A) omitting “a body
corporate”
substituting “an
authoriser”
4 paragraph 916B(7)(b) omitting “the body
corporate”
substituting “the
authoriser”
5 subsection 916B(9) omitting “the body
corporate”
substituting “the
authoriser”
(2) For paragraph 926B(1)(c) of the Act, Part 7.6 of the Act applies as
if the following subsection were inserted after subsection 916B(3):
“(3A) An individual who is authorised as mentioned in subsection (3)
cannot, in that capacity, authorise another person under
subsection (3).”
(3) For paragraph 926B(1)(c) of the Act, Part 7.6 of the Act applies as
if subsection 916F(1AA) were omitted and the following
subsection were substituted:
“(1AA) Subsection (1) does not apply to an authorisation of a
representative by an authorised representative (the authoriser) if:
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Part 7.6A Authorised representatives
Regulation 7.6.08
254 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the authorisation is given as mentioned in section 916B; and
(b) the relevant consent under subsection 916B(5) was given in
respect of a specified class of individuals of which the
representative is a member; and
(c) the representative is an employee of the authoriser; and
(d) the only financial services that the representative is
authorised to provide are one or more of the following:
(i) general advice that relates to financial products covered
by regulations made for the purposes of this paragraph;
(ii) dealing in financial products covered by regulations
made for the purposes of this paragraph;
(iii) personal advice about a basic deposit product or a
facility for making non-cash payments that relates to a
basic deposit product; and
(e) the authoriser provides information about the representative
and the representative’s authorisation when requested.”
Note 1: Regulations made for the purposes of paragraph (d) may be expressed
to cover all financial products, or only 1 or more specified kinds of
financial products.
Note 2: A defendant bears an evidential burden in relation to the matters in
subsection (1AA). See subsection 13.3(3) of the Criminal Code.”
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Provision of information to APRA about contracts of insurance Part 7.6B
Regulation 7.6.08A
Corporations Regulations 2001 255
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 7.6B—Provision of information to APRA
about contracts of insurance
7.6.08A Definitions
In this Part:
general insurer has the same meaning as in subsection 3(1) of the
Insurance Act 1973.
Lloyd’s underwriter has the same meaning as in subsection 3(1) of
the Insurance Act 1973.
unauthorised foreign insurer has the same meaning as in
regulation 4 of the Insurance Regulations 2002.
7.6.08B Application
This Part applies to a person who is a financial services licensee
authorised to deal in general insurance products.
Note: General insurance product is defined in section 761A and
paragraph 764A(1)(d) of the Act. Dealing is defined in section 766C
of the Act.
7.6.08C Modification of section 912CA of the Act
For paragraph 926B(1)(c) of the Act, Part 7.6 of the Act applies as
if section 912CA of the Act were modified to read as follows:
‘912CA Regulations may require information to be provided
(1) The regulations may require a financial services licensee, or each
financial services licensee in a class of financial services licensees,
to provide APRA (acting as ASIC’s agent) with specified
information about:
(a) the financial services provided by the licensee or its
representatives; or
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Part 7.6B Provision of information to APRA about contracts of insurance
Regulation 7.6.08D
256 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the financial services business carried on by the licensee.
(2) The specified information:
(a) must be lodged in the prescribed form; and
(b) must include:
(i) the information, statements, explanations or other
matters required by the form; and
(ii) any further information requested by APRA in relation
to any of the matters in subparagraph (i); and
(c) must be accompanied by any other material required by the
form.’
7.6.08D Information about general insurance products
(1) This regulation applies in relation to a general insurance product
that:
(a) is entered into as a result of a dealing in the product, either
wholly or partially, by the person, with a general insurer,
Lloyd’s underwriter or an unauthorised foreign insurer; and
(b) is not a reinsurance contract or a retrocession contract.
(2) However, if the person is a general insurer, this regulation does not
apply in relation to a general insurance product issued by the
person.
(3) For section 912CA of the Act, the person must provide information
to APRA about the general insurance product entered into in a
reporting period specified in subregulation (5):
(a) in accordance with Table 1 in Form 701; and
(b) either:
(i) within the time specified by ASIC or APRA if that is a
reasonable time; or
(ii) if ASIC or APRA do not specify a time—within 20
business days after the last day of the applicable
reporting period.
Penalty: 10 penalty units.
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Provision of information to APRA about contracts of insurance Part 7.6B
Regulation 7.6.08E
Corporations Regulations 2001 257
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) For section 912CA of the Act, the person must provide further
information to APRA relating to the information provided in
accordance with Table 1 in Form 701:
(a) if APRA makes a request in writing for the further
information; and
(b) either:
(i) within 5 business days of receiving the request; or
(ii) if ASIC or APRA specifies a later date—by that date.
Penalty: 10 penalty units.
(5) The reporting periods are:
(a) 1 May to 30 June 2010; and
(b) 1 July to 31 December 2010; and
(c) 1 January to 30 June in any year after 2010; and
(d) 1 July to 31 December in any year after 2010.
(6) Strict liability applies to subregulations (3) and (4).
7.6.08E Information about general insurance products—
unauthorised foreign insurers
(1) This regulation applies in relation to a general insurance product:
(a) that is entered into as a result of a dealing in the product,
either wholly or partially, by the person; and
(b) that is not a reinsurance contract or a retrocession contract;
and
(c) in relation to which an unauthorised foreign insurer is a party
to the contract that is the general insurance product.
Note: An unauthorised foreign insurer may be a party to a contract of
insurance to which Part 2 of the Insurance Regulations 2002 applies.
These are insurance contracts for:
(a) high-value insured; and
(b) atypical risks; and
(c) risks that cannot reasonably be placed in Australia; and
(d) contracts required by foreign law.
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Chapter 7 Financial services and markets
Part 7.6B Provision of information to APRA about contracts of insurance
Regulation 7.6.08E
258 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) However, if the general insurance product has been dealt with by
more than 1 person, this regulation only applies, in relation to the
general insurance product, to the person who has:
(a) dealt directly with the unauthorised foreign insurer; or
(b) dealt indirectly with the unauthorised foreign insurer through
a foreign intermediary.
(3) For section 912CA of the Act, the person must provide information
to APRA about the general insurance product entered into within a
reporting period specified in subregulation (5):
(a) in accordance with Table 2 in Form 701; and
(b) either:
(i) within the time specified by ASIC or APRA if that is a
reasonable time; or
(ii) if ASIC or APRA do not specify a time—within 20
business days after the last day of the applicable
reporting period.
Penalty: 10 penalty units.
(4) For section 912CA of the Act, the person must provide further
information to APRA relating to the information provided in
accordance with Table 2 in Form 701:
(a) if APRA makes a request in writing for the further
information; and
(b) either:
(i) within 5 business days of receiving the request; or
(ii) if ASIC or APRA specify a later date—by that date.
Penalty: 10 penalty units.
(5) The reporting periods are:
(a) 1 May to 30 June 2010; and
(b) 1 July to 31 December 2010; and
(c) 1 January to 30 June in any year after 2010; and
(d) 1 July to 31 December in any year after 2010.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Provision of information to APRA about contracts of insurance Part 7.6B
Regulation 7.6.08E
Corporations Regulations 2001 259
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(6) Strict liability applies to subregulations (3) and (4).
Federal Register of Legislative Instruments F2015C00303
Prepared by the Office of Parliamentary Counsel, Canberra
Corporations Regulations 2001
Statutory Rules No. 193, 2001
made under the
Corporations Act 2001
Compilation No. 113
Compilation date: 31 March 2015
Includes amendments up to: SLI No. 39, 2015
Registered: 9 April 2015
This compilation is in 7 volumes
Volume 1: regulations 1.0.01–6D.5.02
Volume 2: regulations 7.1.02–7.6.08E
Volume 3: regulations 7.7.01–8.4.02
Volume 4: regulations 9.1.01–12.9.03
Volume 5: Schedules 1, 2 and 2A
Volume 6: Schedules 3–12
Volume 7: Endnotes
Each volume has its own contents
Federal Register of Legislative Instruments F2015C00303
About this compilation
This compilation
This is a compilation of the Corporations Regulations 2001 that shows the text
of the law as amended and in force on 31 March 2015 (the compilation date).
This compilation was prepared on 31 March 2015.
The notes at the end of this compilation (the endnotes) include information
about amending laws and the amendment history of provisions of the compiled
law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the
compiled law. Any uncommenced amendments affecting the law are accessible
on ComLaw (www.comlaw.gov.au). The details of amendments made up to, but
not commenced at, the compilation date are underlined in the endnotes. For
more information on any uncommenced amendments, see the series page on
ComLaw for the compiled law.
Application, saving and transitional provisions for provisions and
amendments
If the operation of a provision or amendment of the compiled law is affected by
an application, saving or transitional provision that is not included in this
compilation, details are included in the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as
modified but the modification does not amend the text of the law. Accordingly,
this compilation does not show the text of the compiled law as modified. For
more information on any modifications, see the series page on ComLaw for the
compiled law.
Self-repealing provisions
If a provision of the compiled law has been repealed in accordance with a
provision of the law, details are included in the endnotes.
Federal Register of Legislative Instruments F2015C00303
Corporations Regulations 2001 i
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Contents
Chapter 7—Financial services and markets 1
Part 7.7—Financial service disclosure 1
Division 1—Preliminary 1
7.7.01 How documents, information and statements are to
be given .............................................................................1
Division 2—Financial Services Guide 3
7.7.02 Situations in which Financial Services Guide is not
required .............................................................................3
7.7.02A Situations when Financial Services Guide is not
required .............................................................................7
7.7.03 Financial Services Guide given by financial
services licensee: description of documents ......................9
7.7.03A Financial Services Guide given by financial
services licensee: compensation arrangements ................10
7.7.04 Financial Services Guide given by financial
services licensee: remuneration, commission and
benefits ............................................................................10
7.7.04A Financial services guide given by financial
services licensee: more detailed information about
remuneration etc..............................................................13
7.7.04AA Financial Services Guide given by financial
services licensee: non-monetary benefit that is not
conflicted remuneration...................................................14
7.7.04AB Financial Services Guide given by authorised
representative: non-monetary benefit that is not
conflicted remuneration...................................................14
7.7.05 Record of advice given by financial services
licensee............................................................................14
7.7.05A Financial Services Guide given by authorised
representative of financial services licensee:
authorised representative number ....................................15
7.7.05B Personalised Financial Services Guide............................15
7.7.05C Exemption from providing certain information in a
Financial Services Guide.................................................17
7.7.06 Financial Services Guide given by authorised
representative of financial services licensee:
description of documents.................................................18
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ii Corporations Regulations 2001
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7.7.06A Financial Services Guide given by authorised
representative of financial services licensee—
licence number ................................................................19
7.7.06B Financial Services Guide given by authorised
representative of financial services licensee:
compensation arrangements ............................................19
7.7.07 Financial Services Guide given by authorised
representative of financial services licensee:
remuneration, commission and benefits ..........................20
7.7.07A Financial services guide given by authorised
representative: more detailed information about
remuneration etc..............................................................22
7.7.08 Record of advice given by authorised
representative of financial services licensee ....................23
Division 2A—Combined Financial Services Guide and Product
Disclosure Statement 24
7.7.08A Combined Financial Services Guide and Product
Disclosure Statement .......................................................24
Division 2AA—Combined Financial Services Guide and credit
guide 27
7.7.08B Modification of section 942DA of the Act ......................27
Division 2B—Record of small investment advice 29
7.7.08C Record of small investment advice—content
requirements ....................................................................29
Division 3—Statement of Advice 30
7.7.09 Situations in which statement of advice is not
required: further advice ...................................................30
7.7.09A Situations in which Statement of Advice is not
required: small investments threshold .............................30
7.7.09AA Statement of Advice from financial services
licensee............................................................................34
7.7.09AB Modification of subsection 947B(4) of the Act ...............35
7.7.09B Statement of Advice from providing entity—
information not included in the Statement.......................35
7.7.09BA Statement of Advice from authorised
representative ..................................................................36
7.7.09BB Modification of subsection 947C(4) of the Act ...............37
7.7.09BC Statement of Advice given by financial services
licensee: non-monetary benefit that is not
conflicted remuneration...................................................38
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Corporations Regulations 2001 iii
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7.7.09BD Statement of Advice given by authorised
representative: non-monetary benefit that is not
conflicted remuneration...................................................38
7.7.09C Requirement to keep Statement of Advice and
other documents ..............................................................38
7.7.10 Products for which a Statement of Advice is not
required ...........................................................................39
7.7.10AA Obligation on authorised representative to give a
financial services guide ...................................................39
7.7.10AAA Record of advice without a recommendation to
purchase or sell—content requirements...........................40
7.7.10AB Financial services guide—contents of guide ...................40
7.7.10AC Financial services guide ..................................................41
7.7.10AD Financial services guide ..................................................43
7.7.10AE Situations in which Statement of Advice not
required ...........................................................................44
7.7.10AF Various consequential amendments to Division 7
of Part 7.7 concerning situations where Financial
Services Guides do not have to be given .........................46
7.7.10AG Various consequential amendments to Division 7
of Part 7.7 ........................................................................49
7.7.10AH Business days ..................................................................51
7.7.10AI Obligation to warn client that advice does not take
account of client’s objectives, financial situation or
needs—carbon units, Australian carbon credit
units and eligible international emissions units ...............51
7.7.10A Statements of Advice—requirement to state
information as amounts in dollars ...................................52
7.7.10B Insertion of definition—further advice ............................53
7.7.10C Omission of definition—further market-related
advice ..............................................................................54
7.7.10D Additional information in Statement of Advice...............54
7.7.10E Additional information in Statement of Advice...............54
7.7.11 Statement of Advice given by financial services
licensee............................................................................54
7.7.11A Statement of Advice given by authorised
representative of financial services licensee—
licence number ................................................................55
7.7.11B Statement of Advice—disclosure of dollar
amounts ...........................................................................55
7.7.12 Statement of Advice given by authorised
representative of financial services licensee ....................56
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7.7.13 Statement of Advice provided by authorised
representative—disclosure of dollar amounts..................57
7.7.13A Additional information about charges or
benefits—disclosure of dollar amounts ...........................58
7.7.13B Additional information about charges or
benefits—disclosure of dollar amounts ...........................59
Division 4—General advice provided to a retail client 60
7.7.14 Product Disclosure Statement not required .....................60
Division 5—Other disclosure requirements 61
7.7.20 General advice to retail client—no obligation to
warn client .......................................................................61
7.7.20A Extension of disclosure requirements to wholesale
clients dealing with certain unauthorised insurers ...........61
Division 6—Exemptions from application of Part 7.7 of the Act 63
7.7.21 Exemption from application of Part 7.7 of the Act..........63
Part 7.7A—Best interests obligations and remuneration 64
Division 2—Best interests obligations 64
Subdivision 1—Duty to act in client’s best interests 64
7.7A.1 Duty if advising on combination of products ..................64
Division 3—Charging ongoing fees to clients 66
7.7A.10 Arrangements that are not ongoing fee
arrangements ...................................................................66
7.7A.11 Fee disclosure statements: product fee ............................66
Division 4—Conflicted remuneration 67
Subdivision 1—Monetary benefits 67
7.7A.12 What subdivision is about ...............................................67
7.7A.12A Life risk insurance products ............................................67
7.7A.12B Stamping fees ..................................................................67
7.7A.12C Time-sharing schemes .....................................................68
7.7A.12D Brokerage fees.................................................................69
7.7A.12E Fees paid by clients for dealing services .........................71
7.7A.12EA Application of ban on conflicted remuneration—
purchase or sale of financial advice business ..................71
Subdivision 2—Monetary or non-monetary benefits 72
7.7A.12F What subdivision is about ...............................................72
7.7A.12G General insurance............................................................72
7.7A.12H Basic banking and general insurance products ................72
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7.7A.12I Mixed benefits.................................................................73
7.7A.13 Non-monetary benefit given in certain
circumstances not conflicted remuneration:
prescribed amount ...........................................................74
7.7A.14 Non-monetary benefit given in certain
circumstances not conflicted remuneration:
education or training course ............................................74
7.7A.15 Non-monetary benefit given in certain
circumstances not conflicted remuneration: other
education and training benefit .........................................75
7.7A.15A Non-monetary benefit given in certain
circumstances not conflicted remuneration—
education and training in conducting a financial
services business .............................................................75
7.7A.15B Application of ban on conflicted remuneration—
non-platform operator (Division 4 of Part 7.7A of
Chapter 7 of the Act does not apply) ...............................76
7.7A.16 Application of ban on conflicted remuneration—
platform operator (Division 4 of Part 7.7A of
Chapter 7 of the Act does not apply) ...............................76
7.7A.16A Application of ban on conflicted remuneration—
platform operator (Division 4 of Part 7.7A of
Chapter 7 of the Act applies)...........................................77
7.7A.16B Application of ban on conflicted remuneration—
person other than platform operator (Division 4 of
Part 7.7A of Chapter 7 of the Act applies) ......................79
7.7A.16BA Sale of business ...............................................................81
7.7A.16C Application of ban on conflicted remuneration—
employer and employee (Division 4 of Part 7.7A
of Chapter 7 of the Act does not apply)...........................81
7.7A.16D Application of ban on conflicted remuneration—
new arrangement entered into on or after
application day (Division 4 of Part 7.7A of
Chapter 7 of the Act does not apply) ...............................83
7.7A.16E Application of ban on conflicted remuneration—
change of party to an arrangement (Division 4 of
Part 7.7A of Chapter 7 of the Act does not apply)...........84
7.7A.16F Application of ban on conflicted remuneration—
benefit is a pass through of a grandfathered benefit
(benefit is not conflicted remuneration) ..........................85
Subdivision 3—Asset-based fees on borrowed amounts 85
7.7A.17 Financial services licensees .............................................85
7.7A.18 Authorised representatives ..............................................86
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vi Corporations Regulations 2001
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Division 6—Exemptions from application of Part 7.7A of the Act 87
7.7A.40 Exemption from application of Part 7.7A of the
Act...................................................................................87
Part 7.8—Other provisions relating to conduct etc connected
with financial products and financial services, other
than financial product disclosure 88 7.8.01 Obligation to pay money into an account ........................88
7.8.02 Accounts maintained for section 981B of the Act ...........91
7.8.03 How money to be dealt with if licensee ceases to
be licensed etc .................................................................95
7.8.04 Money to which Subdivision A of Division 2 of
Part 7.8 of the Act applies taken to be held in trust:
breach of financial services law.......................................98
7.8.05 Money to which Subdivision A of Division 2 of
Part 7.8 of the Act applies taken to be held in trust:
risk accepted by insurer ...................................................98
7.8.06 Statement setting out terms of loan etc............................99
7.8.06A Property exempt from Division 3 of Part 7.8 of the
Act...................................................................................99
7.8.07 How property to which Division 3 of Part 7.8 of
the Act to be dealt with....................................................99
7.8.08 Debts of financial services licensee in relation to
premiums etc .................................................................101
7.8.08A Limit of margin lending facility taken to be
increased........................................................................107
7.8.08B Exemption from requirement to make unsuitability
assessment .....................................................................109
7.8.09 Reasonable inquiries etc about retail client:
inquiries.........................................................................111
7.8.09A Modification of section 985G of the Act .......................111
7.8.10 Circumstances in which margin lending facility is
unsuitable ......................................................................112
7.8.10A Margin lending facility taken not to be unsuitable ........112
7.8.11 Particular categories of information to be shown in
records...........................................................................112
7.8.11A Particular categories of information to be shown in
records: records of non-monetary benefit that is
not conflicted remuneration...........................................113
7.8.12 Requirements in relation to financial records of
financial services licensees............................................115
7.8.12A Modification of section 989B of the Act .......................116
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7.8.13 Auditor’s report with annual profit and loss
statement and balance sheet...........................................118
7.8.13A Compliance certificate with profit and loss
statement and balance sheet...........................................118
7.8.14 Contents of annual profit and loss statement and
balance sheet and applicable accounting
procedures .....................................................................119
7.8.14A Lodgement of annual profit and loss statement and
balance sheet .................................................................119
7.8.14B Modification of section 990B of the Act .......................120
7.8.15 Appointment of auditor by financial services
licensee..........................................................................121
7.8.16 When person is ineligible to act as auditor of
financial services licensee .............................................124
7.8.17 Priority to clients’ orders ...............................................127
7.8.18 Instructions to deal through licensed markets................127
7.8.19 Records of instructions to deal on licensed markets
and foreign markets .......................................................129
7.8.20 Dealings with non-licensees ..........................................131
7.8.20A Dealings involving employees of financial service
licensees—risk insurance products................................134
7.8.21 Dealings involving employees of financial services
licensees ........................................................................134
7.8.21A Anti-hawking provisions if no Product Disclosure
Statement is required .....................................................136
7.8.21B Anti-hawking provisions if no Product Disclosure
Statement is required—carbon units, Australian
carbon credit units and eligible international
emissions units ..............................................................137
7.8.22 Hours for hawking certain financial products................138
7.8.22A Modification of Part 7.8 ................................................138
7.8.22B Return of financial product: first home saver
accounts.........................................................................139
7.8.23 Return of financial product: transfer between
superannuation entities or RSAs....................................140
7.8.24 Right of return not to apply ...........................................140
7.8.25 Variation of amount to be repaid ...................................141
7.8.26 Exemption from application of section 992A of the
Act.................................................................................141
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viii Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 7.9—Financial product disclosure and other provisions
relating to issue and sale of financial products 142
Division 1—Preliminary 142
7.9.01 Interpretation .................................................................142
7.9.02 Sub-plans.......................................................................146
7.9.02A Alternative ways of giving Statement............................147
7.9.02B Product Disclosure Statement in electronic form ..........147
Division 2—Arrangements for Product Disclosure Statements in
relation to superannuation products and RSA
products 149
Subdivision 2.1—Preliminary 149
7.9.03 Application of Division 2 ..............................................149
Subdivision 2.2—Late provision of Product Disclosure Statement
for certain members of regulated superannuation
fund, public offer superannuation fund or
successor fund 149
7.9.04 Product Disclosure Statement to be provided later........149
Subdivision 2.3—Product Disclosure Statement for retirement
savings account 150
7.9.05 Situation in which Product Disclosure Statement is
not required ...................................................................150
Subdivision 2.4—Additional obligations for eligible rollover funds 150
7.9.06A Relevant superannuation entities ...................................150
7.9.06B Application forms..........................................................150
Subdivision 2.5—Product Disclosure Statement for insurance
options 151
7.9.07 Modification of Act: Product Disclosure Statement
in relation to insurance options......................................151
Division 2A—Product Disclosure Statement for warrants 152
7.9.07A Warrants ........................................................................152
Division 2B—Product Disclosure Statement for market-traded
derivatives 154
7.9.07B Product Disclosure Statements for certain
market-traded derivatives ..............................................154
7.9.07C Remedies for Product Disclosure Statements for
certain market-traded derivatives ..................................155
Federal Register of Legislative Instruments F2015C00303
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Division 2BA—Product Disclosure Statement for discretionary
mutual funds 156
7.9.07CA Extension of Product Disclosure Statement
requirements to wholesale clients..................................156
Division 2C—Situations where a Product Disclosure Statement
is not required 157
7.9.07D Product Disclosure Statement not required for
offers of bundled contracts of insurance........................157
7.9.07E Product Disclosure Statement not required if offer
of financial product is declined .....................................157
7.9.07F Product Disclosure Statement not required if the
client is not contactable .................................................158
7.9.07FA Product Disclosure Statement not required for
certain specified products ..............................................159
7.9.07FB Product Disclosure Statement not required if client
not in this jurisdiction....................................................160
7.9.07FC Product Disclosure Statement not required general
insurance situation.........................................................160
Division 2D—Preparation and content of Product Disclosure
Statements 162
7.9.07J Only 1 responsible person for a Product Disclosure
Statement.......................................................................162
7.9.07K Definition of defective: Product Disclosure
Statement, Short-Form PDS or Replacement
Product Disclosure Statement........................................162
Division 2E—Obligation to make information publicly available:
registrable superannuation entities 163
Subdivision 2E.1—Obligation to make product dashboard
publicly available 163
7.9.07L Modification of Act .......................................................163
7.9.07M Source of power for this Subdivision ............................163
7.9.07N Definitions.....................................................................163
7.9.07P Meaning of MySuper product dashboard reporting
standards .......................................................................165
7.9.07Q Product dashboard—how information must be set
out .................................................................................165
7.9.07R Product dashboard—return target..................................165
7.9.07S Product dashboard—return............................................166
7.9.07T Product dashboard—comparison between return
target and return ............................................................167
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7.9.07U Comparison to be set out as a graph ..............................168
7.9.07V Product dashboard—level of investment risk ................168
7.9.07W Product dashboard—statement of fees and other
costs...............................................................................169
Division 3—Dealing with money received for financial product
before the product is issued 170
7.9.08 Accounts........................................................................170
7.9.08A Dealing with interest .....................................................171
7.9.08B Crediting of payments before money is received ..........171
7.9.08C Money held in trust for a superannuation product
or RSA product..............................................................172
7.9.08D Statutory funds under the Life Insurance Act 1995 .......173
Division 3A—Rights and obligations related to Product
Disclosure Statement—first home saver accounts 174
7.9.08E Application forms..........................................................174
Division 4—Content of Product Disclosure Statements 175
Subdivision 4.1—Preliminary 175
7.9.09 Application of Division 4 ..............................................175
Subdivision 4.1A—No Product Disclosure Statement for carbon
units, Australian carbon credit units and eligible
international emissions units 176
7.9.09A Application of Subdivision............................................176
7.9.09B Provisions of Part 7.9 of Act that do not apply in
relation to carbon units, Australian carbon credit
units and eligible international emissions units .............176
7.9.09C Modification of Act .......................................................177
Subdivision 4.2—Content of Product Disclosure Statements for
First Home Saver Accounts 177
7.9.10 Application of Subdivision............................................177
7.9.10A Definitions.....................................................................177
7.9.10B Modification of Act .......................................................178
7.9.10C Product Disclosure Statement consisting of 2 or
more documents ............................................................178
7.9.10D Manner of giving Product Disclosure Statement
for first home saver accounts.........................................179
7.9.10E Form and content of Product Disclosure Statement ......180
Subdivision 4.2A—Form and content of Product Disclosure
Statement for margin loan 180
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7.9.11 Application of Subdivision 4.2A...................................180
7.9.11A Provisions of Part 7.7 of Act that do not apply in
relation to margin loan ..................................................181
7.9.11B Definitions for Subdivision 4.2A...................................181
7.9.11C Modification of Act—margin loan ................................181
7.9.11D Form and content of Product Disclosure Statement
for margin loan ..............................................................181
7.9.11E Requirements for references to incorporated
information for margin loan ..........................................182
7.9.11F Retention of copies of Product Disclosure
Statement for margin loan .............................................184
7.9.11G Requirement to provide copy of Product
Disclosure Statement for margin loan free of
charge ............................................................................185
7.9.11H Notification about change to Approved Securities
List or current interest rate for margin loan...................185
Subdivision 4.2B—Content of Product Disclosure Statement for
superannuation product 185
7.9.11K Application of Subdivision 4.2B ...................................185
7.9.11L Provisions of Part 7.7 of Act that do not apply in
relation to superannuation product ................................186
7.9.11LA Attribution of accrued default amount to MySuper
product—exemption from significant event notice
requirements ..................................................................186
7.9.11LB Attribution of accrued default amount to MySuper
product—modification of significant event notice
requirements ..................................................................186
7.9.11M Provisions of Part 7.9 of Act that do not apply in
relation to superannuation product ................................187
7.9.11N Modification of Act—superannuation product ..............188
7.9.11O Form and content of Product Disclosure Statement
for superannuation product............................................188
7.9.11P Requirements for references to incorporated
information for superannuation product ........................189
7.9.11Q Retention of copies of Product Disclosure
Statement for superannuation product ...........................191
7.9.11R Requirement to provide copy of Product
Disclosure Statement for superannuation product
free of charge.................................................................192
Subdivision 4.2C—Content of Product Disclosure Statement for
simple managed investment scheme 192
7.9.11S Application of Subdivision 4.2C ...................................192
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7.9.11T Provisions of Part 7.7 of Act that do not apply in
relation to simple managed investment scheme.............193
7.9.11U Provisions of Part 7.9 of Act that do not apply in
relation to simple managed investment scheme.............193
7.9.11V Modification of Act—simple managed investment
scheme...........................................................................194
7.9.11W Form and content of Product Disclosure Statement
for simple managed investment scheme ........................194
7.9.11X Requirements for references to incorporated
information for simple managed investment
scheme...........................................................................195
7.9.11Y Retention of copies of Product Disclosure
Statement for simple managed investment scheme .......197
7.9.11Z Requirement to provide copy of Product
Disclosure Statement for simple managed
investment scheme free of charge .................................198
Subdivision 4.3—Other arrangements for Product Disclosure
Statements and application forms 198
7.9.12 Modification of Act: Product Disclosure
Statements and application forms for standard
employer-sponsors and successor funds........................198
7.9.13 Offer of superannuation interest without
application or eligible application .................................199
7.9.13A Remedies for person acquiring financial product
under defective Product Disclosure Statement: first
home saver accounts......................................................200
7.9.14 Remedies for person acquiring financial product
under defective Product Disclosure Statement:
superannuation and RSAs..............................................201
7.9.14A Treatment of arrangements under which a person
can instruct another person to acquire a financial
product ..........................................................................202
Subdivision 4.4—Product information for certain insurance
products 202
7.9.14B Product information.......................................................202
Division 4A—General 204
7.9.14C Labour standards and environmental, social and
ethical considerations ....................................................204
7.9.14D Further statements required in Product Disclosure
Statement—financial claims scheme.............................205
7.9.15 More detailed information in Product Disclosure
Statement: unauthorised foreign insurer ........................206
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7.9.15A Product Disclosure Statements—requirement to
state information as amounts in dollars .........................207
7.9.15B Product Disclosure Statements—disclosure of
dollar amounts ...............................................................208
7.9.15C Product Disclosure Statements—disclosure of
dollar amounts ...............................................................208
7.9.15CA Less information in Product Disclosure
Statement—financial claims scheme.............................210
7.9.15D Less information in product disclosure statement:
general insurance product..............................................210
7.9.15DA Statement or information not included in a Product
Disclosure Statement .....................................................211
7.9.15DB Requirement to keep record of Product Disclosure
Statement and other documents .....................................212
7.9.15DC Requirement to lodge documents mentioned in a
Product Disclosure Statement with ASIC......................213
7.9.15E More detailed information in product disclosure
statement: general insurance product.............................213
7.9.15F Product disclosure statement: general insurance
product ..........................................................................214
7.9.15FA Transitional arrangements for regulations 7.9.15D,
7.9.15E and 7.9.15F.......................................................214
7.9.15G Business days ................................................................215
7.9.15H New section 1012G: product disclosure statement
may sometimes be provided later ..................................215
7.9.15I Modification of section 1012IA ....................................217
7.9.16 More detailed information in Product Disclosure
Statement: consumer credit insurance product ..............218
7.9.16A Small scale offerings of managed investment and
other prescribed financial products (20 issues or
sales in 12 months) ........................................................219
Division 4B—Ongoing disclosure 220
7.9.16G Ongoing disclosure of material changes and
significant events...........................................................220
Division 4C—Fee Disclosure for certain financial products 221
Subdivision 4C.1—Application 221
7.9.16J Application of Division 4C to financial products ..........221
7.9.16JA Application of Division 4C to financial products—
temporary arrangements ................................................221
7.9.16K Application of Division 4C to periodic statements
and Product Disclosure Statements ...............................221
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Subdivision 4C.2—Product Disclosure Statements 222
7.9.16L More detailed information about fees and costs ............222
7.9.16M Modification of section 1015C of the Act .....................222
7.9.16N Presentation, structure and format of fees and costs
in Product Disclosure Statements ..................................223
Subdivision 4C.3—Periodic statements 223
7.9.16O Presentation, structure and format of fees and
charges in periodic statements .......................................223
Division 4D—Other requirements relating to Product Disclosure
Statements and Supplementary Product Disclosure
Statements 224
Subdivision 4D.1—Requirement to lodge a notice with ASIC 224
7.9.16T Variation of paragraph 1015D(2)(b) of the Act .............224
Division 5—Ongoing requirements for product disclosure after
person becomes a member 225
Subdivision 5.1—Preliminary 225
7.9.17 Application of Division 5 ..............................................225
Subdivision 5.2—Periodic statements for retail clients for
financial products that have an investment
component: regulated superannuation funds,
ADFs and RSAs 225
7.9.18 Application of Subdivision 5.2......................................225
7.9.19 Specific requirements for periodic statements:
superannuation funds (other than self managed
superannuation funds) and RSAs ..................................225
7.9.19A Withdrawal benefit—fees, charges or expenses ............227
7.9.19B Withdrawal benefit—fees, charges and expenses..........227
7.9.20 Specific requirements for certain periodic
statements: superannuation funds (other than self
managed superannuation funds) ....................................229
7.9.20AA Specific requirements for certain periodic
statements: superannuation funds (other than self
managed superannuation funds)—long-term
returns............................................................................231
7.9.20A Details of other significant benefits—disclosure of
fees, charges or expenses...............................................234
7.9.20B Other significant benefits—disclosure of fees,
charges or expenses .......................................................235
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7.9.21 Specific requirements in particular cases: member
(other than capital guaranteed member) of fund
other than a self managed superannuation fund.............237
7.9.22 Specific requirements: capital guaranteed funds
and RSAs.......................................................................238
7.9.23 Information for capital guaranteed fund: benefits
reach $10 000 ................................................................239
7.9.24 Modification of Act: pensioners, members subject
to compulsory protection of small amounts and
members with small amounts that are expected to
grow quickly..................................................................239
Subdivision 5.3—Periodic statements for retail clients for
financial products that have an investment
component: information for RSAs 240
7.9.25 Application of Subdivision 5.3......................................240
7.9.26 Specific requirements where applicable: RSAs.............240
7.9.27 Modification of Act: periodic statements for RSA
holders...........................................................................242
7.9.28 Information for RSA: amount reaches $10 000.............242
Subdivision 5.4—Periodic statements for retail clients for
financial products that have an investment
component: additional information for
superannuation entities and RSA providers 242
7.9.29 Application of Subdivision 5.4......................................242
7.9.30 Additional information for change to choices ...............243
Subdivision 5.4A—Periodic statements for retail clients for
financial products that have an investment
component: additional information for margin
lending facilities 243
7.9.30A Application of Subdivision 5.4A...................................243
7.9.30B Details to be included in periodic statements for
margin lending facilities ................................................244
Subdivision 5.5—Fund information for retail clients for financial
products that have an investment component:
superannuation 245
7.9.31 Application of Subdivision 5.5......................................245
7.9.32 Reporting periods: general ............................................245
7.9.33 Use of more than 1 document........................................246
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Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Subdivision 5.6—Fund information for retail clients for financial
products that have an investment component:
fund information for regulated superannuation
funds and ADFs 246
7.9.34 Application of Subdivision 5.6......................................246
7.9.35 General requirement ......................................................247
7.9.36 Specific requirements in all cases..................................247
7.9.37 Specific requirements in particular cases.......................247
7.9.38 Specific information in particular case: self
managed superannuation fund .......................................251
7.9.39 Benefits determined by life insurance products.............251
Subdivision 5.7—Fund information for retail clients for financial
products that have an investment component:
fund information for pooled superannuation trusts 252
7.9.40 Application of Subdivision 5.7......................................252
7.9.41 Specific requirements in all cases..................................252
7.9.42 Specific requirements in particular cases.......................253
Subdivision 5.8—Ongoing disclosure of material changes and
significant events 255
7.9.43 Modification of Act: disclosure of material
changes and significant events in relation to
superannuation products and RSA products ..................255
7.9.44 Benefits to be paid to eligible rollover fund ..................255
Subdivision 5.9—Information on request: members 257
7.9.45 Regulated superannuation funds, ADFs and pooled
superannuation trusts.....................................................257
7.9.46 RSAs .............................................................................258
Subdivision 5.10—Information on request: payments 258
7.9.47 Modification of Act: charges for information
requested .......................................................................258
Subdivision 5.11—Information about complaints 258
7.9.48 Source of power for this Subdivision ............................258
7.9.48A Definitions.....................................................................258
7.9.48B Complaints—general.....................................................259
7.9.48C Complaints about benefits other than death
benefits—decision made ...............................................259
7.9.48D Complaints about benefits other than death
benefits—no decision made ..........................................260
7.9.48A Definitions.....................................................................261
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Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.48B Complaints—general.....................................................261
Subdivision 5.12—Periodic report when product holder ceases to
hold product: superannuation products and RSA
products 262
7.9.49 Application of Subdivision 5.12....................................262
7.9.50 Exit reporting period .....................................................262
7.9.51 Time for compliance .....................................................262
7.9.52 General requirement ......................................................262
7.9.53 Information on death of product holder.........................263
7.9.54 Specific requirements in all cases..................................263
7.9.55 Specific requirements in particular cases.......................264
7.9.56 Exceptions to exit reporting period provisions:
superannuation products and RSA products ..................264
7.9.57 Exception—members subject to compulsory
protection of small amounts ..........................................264
7.9.58 Information to be given in cases other than death
of RSA holder ...............................................................265
7.9.59 Information to be given where applicable .....................266
7.9.60 Modification of Act: exceptions to exit reporting
period provisions ...........................................................267
Division 5AA—General requirements for financial disclosure 268
7.9.60A Modification of Act: disclosure.....................................268
7.9.60B Disclosure of transactions in periodic statements ..........268
Division 5AB—Short-Form Product Disclosure Statements 270
7.9.61AA Modification of the Act: Short-Form Product
Disclosure Statements ...................................................270
Division 5A—Dealing with money received for financial product
before the product is issued 272
7.9.61A Lost application money .................................................272
7.9.61B Issue of substitute insurance product .............................273
7.9.61C Cheques.........................................................................273
Division 5B—Confirming transactions 274
7.9.61D Transactions involving superannuation products...........274
Division 5C—CGS depository interests 276
7.9.61E CGS depository interest information website ................276
Division 6—Confirmation of transactions 277
7.9.62 Confirmation of transaction: superannuation
products and RSAs ........................................................277
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7.9.63 Confirmation of transactions: precise costs of
transaction not known ...................................................280
7.9.63A Persons who must confirm transactions ........................280
7.9.63B Content of confirmation of transactions—general.........282
7.9.63C Confirmation of transaction—multiple transactions......283
7.9.63D Confirmation of transaction—information about
cooling-off period..........................................................285
7.9.63E Confirmation of transaction—facility that provides
written confirmation ......................................................286
7.9.63F Confirmation of transaction—acquisition of
financial product............................................................286
7.9.63G Confirmation of transaction—disposal of financial
product ..........................................................................287
7.9.63H Certain product issuers and regulated persons must
meet appropriate dispute resolution
requirements—self managed superannuation funds ......287
7.9.63I Confirmation of transaction in electronic form .............287
Division 7—Cooling-off periods 288
7.9.64 Cooling-off periods not to apply ...................................288
7.9.64A Notification of exercise of right of return—risk
insurance products.........................................................289
7.9.65 Return of financial product: general ..............................289
7.9.65A Return of financial product: first home saver
accounts.........................................................................290
7.9.66 Return of financial product: superannuation and
RSAs .............................................................................291
7.9.67 Variation of amount to be repaid ...................................292
7.9.68 Modification of section 1019B of the Act: client
includes standard employer-sponsor..............................295
7.9.69 Modification of provisions of Division 5 of
Part 7.9 of the Act: terms of contract.............................297
7.9.70 Modification of provisions of Division 5 of
Part 7.9 of the Act: distributions....................................298
Division 8—Other requirements 299
7.9.71 Modification of section 1017D of the Act: use of
more than 1 document ...................................................299
7.9.71A Periodic statements—exemption for passbook
accounts.........................................................................299
7.9.72 Modification of section 1017D of the Act:
information already given..............................................299
7.9.73 Reporting periods: general ............................................300
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Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.74 Form of application .......................................................300
7.9.74A Periodic statements—requirement to state
information as amounts in dollars .................................300
7.9.74B Periodic statements—additional details for First
Home Saver Accounts ...................................................302
7.9.75 Content of periodic statements: costs of
transactions....................................................................303
7.9.75A Ways of giving information...........................................306
7.9.75B Information in electronic form ......................................307
7.9.75BA Fund information made available on a website .............307
7.9.75C Periodic statements—disclosure of amounts .................308
7.9.75D Periodic statements—disclosure of amounts .................309
7.9.76 Consents to certain statements.......................................310
7.9.77 Alternative dispute resolution requirements—
product issuer that is not a financial services
licensee..........................................................................310
7.9.78 Additional statement: trustee required to provide
benefits ..........................................................................311
7.9.80B Short selling of certain warrants ....................................312
Division 9—Additional requirements for transfer of lost
members and lost RSA holders 314
7.9.81 Lost members ................................................................314
7.9.82 Lost RSA holders ..........................................................314
Division 11—Superannuation to which arrangements apply
under the Family Law Act 1975 316
7.9.84 Definitions for Division 11............................................316
7.9.85 Application of Division 11 ............................................317
7.9.86 Acquisition of financial product ....................................317
7.9.87 Modification of Act: Product Disclosure Statement
in relation to superannuation interest under Family
Law Act.........................................................................318
7.9.88 Statement content in relation to superannuation
interest under Family Law Act: superannuation
fund ...............................................................................319
7.9.89 Statement content in relation to superannuation
interest under Family Law Act: RSA ............................320
7.9.90 Information for existing holders of superannuation
products and RSA products in relation to
superannuation interest..................................................321
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Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.91 Periodic statements for retail clients for financial
products that have an investment component—
general ...........................................................................322
7.9.92 Periodic statements for retail clients for financial
products that have an investment component—
superannuation interest other than percentage-only
interest ...........................................................................322
7.9.93 Trustees of superannuation entities—additional
obligation to provide information in relation to
superannuation interest..................................................323
7.9.94 Division 5 of Part 7.9 of the Act not to apply in
relation to non-member spouse......................................324
Division 12—Medical indemnity insurance 325
7.9.95 Medical indemnity insurance—exemption from
product disclosure provisions ........................................325
Division 13—Unsolicited offers to purchase financial products
off market 326
7.9.96 Percentage increase or decrease in the market
value of a product ..........................................................326
7.9.97 Off-market trading by professional investors etc...........326
7.9.97A Information in offer document if payment is to be
made in instalments .......................................................327
Division 14—Exemptions from Parts 7.7, 7.8 and 7.9 of the Act 329
7.9.98 Certain providers of financial services exempted
from the requirements of Parts 7.7, 7.8 and 7.9 of
the Act ...........................................................................329
7.9.98A Exemption from application of Part 7.9 of the Act........329
Division 15—Disclosure in relation to short sales covered by
securities lending arrangement of listed
section 1020B products 331
7.9.99 Interpretation .................................................................331
7.9.100 Seller disclosure ............................................................332
7.9.100A Seller disclosure of existing short position ....................333
7.9.101 Licensee disclosure........................................................334
7.9.102 Public disclosure of information....................................335
Part 7.10—Market misconduct and other prohibited conduct
relating to financial products and financial services 337 7.10.01 Division 3 financial products.........................................337
7.10.02 Professional standards schemes.....................................337
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7.10.03 Exemption for market participants of qualifying
gas trading exchange .....................................................339
Part 7.11—Title and transfer 340
Division 1—Preliminary 340
7.11.01 Definitions.....................................................................340
7.11.03 Arrangements about Division 4 financial products .......342
7.11.04 Arrangements for forms ................................................343
7.11.05 Document duly completed in accordance with a
particular form...............................................................344
7.11.06 Stamping of documents .................................................345
7.11.07 Application of Division 3 of Part 7.11 of the Act to
certain bodies ................................................................345
7.11.08 Interests in registered schemes ......................................346
Division 2—Application of Part 7.11 347
7.11.09 Application....................................................................347
Division 3—Transfer of Division 3 securities effected otherwise
than through a prescribed CS facility 348
7.11.10 Application of Division 3 ..............................................348
7.11.11 Sufficient transfer: general ............................................348
7.11.12 Sufficient transfer of Division 3 assets: licensed
trustee company or Public Trustee of a State or
Territory ........................................................................349
7.11.13 Sufficient transfer of Division 3 rights: licensed
trustee company or Public Trustee of a State or
Territory ........................................................................349
7.11.14 Sufficient transfer ..........................................................349
7.11.15 Transferee’s execution of transfer of Division 3
assets .............................................................................350
7.11.16 Transferee’s execution of transfer of Division 3
rights..............................................................................350
7.11.17 Transfer document that purports to bear stamp of
transferor's broker..........................................................351
7.11.18 Warranties by market licensee if transfer
document purports to bear its stamp..............................353
7.11.19 Indemnities by market licensee and broker if
transfer document purports to bear their stamps............353
7.11.20 Joint and several warranties and liabilities ....................354
7.11.21 Registration of certain instruments................................355
7.11.22 Details to be included in instrument of transfer.............356
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Division 4—Transfer of Division 4 financial products effected
through prescribed CS facility 357
7.11.23 Application of Division 4 ..............................................357
7.11.24 Application of ASTC operating rules ............................357
7.11.25 Participant’s authority to enter into transaction
continues despite client’s death .....................................357
7.11.26 Authority to enter into transaction gives authority
to transfer ......................................................................358
7.11.27 Effect of proper ASTC transfer on transferee:
Division 4 financial products other than rights..............359
7.11.28 Effect of proper ASTC transfer on transferee:
rights..............................................................................360
7.11.29 Warranties by participant if identification code is
included in transfer document .......................................361
7.11.30 Indemnities in respect of warranted matters:
transfer not effected by the participant ..........................363
7.11.31 Indemnities in respect of warranted matters:
transferor not legally entitled or authorised to
transfer Division 4 financial products............................364
7.11.32 Indemnities in respect of warranted matters:
participant not authorised to effect transfer ...................365
7.11.33 Joint and several warranties and liabilities ....................365
7.11.34 ASTC entitled to assume its operating rules
complied with................................................................366
7.11.35 ASTC-regulated transfer not to be registered
unless proper ASTC transfer .........................................366
7.11.36 Issuer not to refuse to register proper ASTC
transfer ..........................................................................367
7.11.37 Determination of who holds Division 4 financial
products for the purposes of meeting.............................367
7.11.38 Determination of who holds Division 4 financial
products in class of Division 4 financial products
for the purposes of meeting ...........................................368
7.11.39 Determination of who holds Division 4 financial
products for the purposes of conferring security
benefits ..........................................................................369
Division 5—Offences 370
7.11.40 Stamping of broker’s stamp on sufficient transfer .........370
7.11.41 Inclusion of identification codes in proper ASTC
transfers .........................................................................371
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7.11.42 Contravention by participant of the ASTC
certificate cancellation provisions relating to use
of cancellation stamps ...................................................372
Division 6—Civil liability 373
7.11.43 Contravention by participant of the ASTC
certificate cancellation provisions .................................373
Part 7.12—Miscellaneous 374 7.12.01 Destruction of records by ASIC ....................................374
Chapter 8—Mutual recognition of securities offers 375
Part 8.1—Preliminary 375 8.1.01 Prescribed foreign recognition scheme (Act s
1200A(1))......................................................................375
8.1.02 Prescribed offeror (Act s 1200A(1))..............................375
8.1.03 Prescribed recognised jurisdiction (Act s
1200A(1))......................................................................376
Part 8.2—Foreign offers that are recognised in this jurisdiction 377
Division 1—Recognised offers 377
8.2.01 Prescribed offer (Act s 1200C(4)) .................................377
8.2.02 Prescribed warning statements (Act s 1200E) ...............377
8.2.03 Prescribed details to be given in warning
statements (Act s 1200E(b)) ..........................................380
8.2.04 Prescribed home regulators (Act s 1200G(13) and
(14))...............................................................................380
Division 4—Modification of the Act in relation to its application
to recognised offers for interests in New Zealand
managed investment schemes (Act s 1020G, 1200M) 382
8.4.01 Modification of Part 7.9 of the Act—New Zealand
offer documents replace Product Disclosure
Statements .....................................................................382
8.4.02 Modification of Part 6D.2 of the Act and Part 7.9
of the Act—certain disclosure obligations not to
apply..............................................................................382
Federal Register of Legislative Instruments F2015C00303
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Preliminary Division 1
Regulation 7.7.01
Corporations Regulations 2001 1
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 7—Financial services and markets
Part 7.7—Financial service disclosure
Division 1—Preliminary
7.7.01 How documents, information and statements are to be given
(1) For subsection 940C(3) of the Act:
(a) if general advice is given orally in a public forum,
information that subsection 941C(5) of the Act requires to be
given must be given orally; and
(b) if general advice is given in electronic form in a public
forum, information that subsection 941C(5) of the Act
requires to be given must be given in electronic form; and
(c) if general advice is given in writing (otherwise than in
electronic form) in a public forum, information that
subsection 941C(5) of the Act requires to be given must be
given in writing; and
(d) if general advice is given in any other manner in a public
forum, information that subsection 941C(5) of the Act
requires to be given must be given in the same manner.
(2) For paragraph 940C(7)(a) of the Act, a Financial Services Guide
and a Statement of Advice may be given to a person in either of the
following ways:
(a) making the Guide or Statement available to the person in any
way that:
(i) is agreed to by the person; and
(ii) allows the regulated person to be satisfied, on
reasonable grounds, that the person has received the
Guide or Statement;
(b) making the Guide or Statement available to the person’s
agent in any way that:
(i) is agreed to by the agent; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 1 Preliminary
Regulation 7.7.01
2 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) allows the regulated person to be satisfied, on
reasonable grounds, that the agent has received the
Guide or Statement.
(3) For paragraph 940C(7)(b) of the Act, a document, information or
statement that is to be given in electronic form must, as far as
practicable, be presented in a way that will allow the person to
whom it is given to keep a copy of it so that the person can have
ready access to it in the future.
(4) A document or statement that is to be given in electronic form must
be presented in a way that clearly identifies the information that is
part of the document or statement.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Financial Services Guide Division 2
Regulation 7.7.02
Corporations Regulations 2001 3
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2—Financial Services Guide
7.7.02 Situations in which Financial Services Guide is not required
(1) For paragraph 941C(6)(c) of the Act, the following are prescribed:
(a) a deposit product that is a facility in relation to which:
(i) there is no minimum period before which funds cannot
be withdrawn or transferred from the facility without a
reduction in the return generated for the depositor; or
(ii) if there is such a period, it expires on or before the end
of the period of 2 years starting on the day on which
funds were first deposited in the facility;
(b) travellers’ cheques;
(c) a cash management trust interest;
(d) a capital guaranteed FHSA product.
(2) For subsection 941C(4) of the Act:
(a) providing general advice to the public, or a section of the
public, at an event organised by or for financial services
licensees to which retail clients are invited is prescribed; and
(b) a broadcast of general advice to the public, or a section of the
public, that may be viewed or heard by any person is
prescribed; and
(c) distributing or displaying promotional material that:
(i) provides general advice to the public, or a section of the
public; and
(ii) is available in a place that is accessible to the public is
prescribed.
Examples:
1 Television or radio broadcasts.
2 Distributing promotional material contained in newspapers and
magazines.
3 Sending a broadcast via an Internet website or webcast.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 2 Financial Services Guide
Regulation 7.7.02
4 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
4 Giving a public lecture or seminar for retail clients, including
employees of a workplace.
Note: If general advice is given to the public, or a section of the public, the
requirements of subsection 941C(5) of the Act must be complied with.
Additionally, if general advice is provided to 1 or more retail clients,
the providing entity must comply with section 949A of the Act.
(3) For subsection 941C(8) of the Act, a Financial Services Guide does
not have to be given to a client in the following circumstances:
(a) a person (person 1) makes an inquiry by telephone in relation
to the rental of a vehicle from another person (person 2);
(b) as a result of that inquiry, it becomes apparent to person 2
that a financial service will be, or is likely to be, provided to
person 1;
(c) the financial service is the issue of an insurance product that
relates to either or both of:
(i) the accidental death of, or bodily injury to, a person
caused by an accident in connection with the use of the
rented vehicle during the rental period; and
(ii) the loss or destruction of, or damage to, either or both of
baggage and personal effects belonging to a person in
the rented vehicle caused by an insured event during the
rental period;
(d) person 2 makes arrangements for a document that is the
equivalent of a Financial Services Guide to be given to
person 1 no later than the start of the use to which the
insurance product relates.
Example: The commencement of a journey of the rental vehicle is a use to
which the insurance product relates.
(3A) For subsection 941C(8) of the Act, a Financial Services Guide does
not have to be given to a client for a financial service provided in
the circumstances specified in paragraph 7.6.01(1)(la).
(4) For subsection 941C(8) of the Act, a Financial Services Guide does
not have to be given to a client in respect of advice that:
(a) is provided by a providing entity that is:
(i) a product issuer; or
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Financial Services Guide Division 2
Regulation 7.7.02
Corporations Regulations 2001 5
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) a related body corporate of a product issuer; or
(iii) a product distributor; or
(iv) an authorised representative of an entity mentioned in
subparagraph (i), (ii) or (iii); and
(b) is only general advice in relation to a financial product that
is, or a class of financial products that includes, a financial
product that is:
(i) issued by the providing entity or a related body
corporate of the providing entity; or
(ii) offered by the providing entity; and
(c) is not provided during a meeting; and
(d) is not provided during a telephone call, unless:
(i) the advice:
(A) concerns a class of financial products that
includes a financial product already held by the
client; and
(B) is provided by the providing entity for that
financial product; or
(ii) there is no issue or sale of any financial product during
the telephone call.
Note: The providing entity must meet obligations under the Act in relation
to the telephone call such as the prohibition of hawking in
sections 992A and 992AA of the Act and the requirements for Product
Disclosure Statements in Part 7.9 of the Act.
(4A) If general advice is provided during a telephone call in accordance
with paragraph (4)(d), the providing entity must tell the client that:
(a) a Financial Services Guide exists; and
(b) the provider will send out a Financial Services Guide on
request.
(5) If subregulation (4) applies and the providing entity does not give a
Financial Services Guide to the client when the advice is provided,
the providing entity must give to the client:
(a) the information that would be required to be in the Financial
Services Guide by paragraphs 942B(2)(a), (e) and (f) of the
Act; or
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(b) the information that would be required to be in the Financial
Services Guide by paragraphs 942C(2)(a), (c), (f) and (g) of
the Act;
as the case requires.
Note: If general advice is provided to 1 or more retail clients, the providing
entity must comply with section 949A of the Act.
(5A) For subsection 941C(8) of the Act, a Financial Services Guide does
not have to be given to a client in the following circumstances:
(a) the advice is provided in circumstances in which
section 1018A of the Act applies or will apply at the end of
the transition period;
(b) the advice is only general advice in relation to a financial
product that is, or a class of financial products that includes,
a financial product issued by the product issuer;
(c) the advice is in the form of advertising the financial product:
(i) on a billboard or a poster; or
(ii) in the media within the meaning of
subregulation 7.6.01(7);
(d) the advertisement indicates that a person should consider
whether or not the product is appropriate for the person.
(5B) For subsection 941C(8) of the Act, a Financial Services Guide does
not have to be given to a client in the following circumstances:
(a) the providing entity is an issuer of derivatives that are able to
be traded on a financial market;
(b) the financial service is a dealing (within the meaning of
section 766C of the Act) in a derivative by the providing
entity;
(c) at the time of the dealing, the providing entity is not a
participant in the financial market on which the particular
derivative may be traded;
(d) the only financial service that the providing entity provides to
the client is the issuing of the derivative.
(6) In this regulation:
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product distributor means a licensee that offers a financial product
for sale.
(7) If:
(a) a financial service is provided by a person (the secondary
service provider) to a client by causing or authorising another
person (the intermediary) to provide or pass on the service;
and
(b) but for the operation of section 52 of the Act, the secondary
service provider would not be taken to be providing the
financial service to the client; and
(c) the intermediary does not act on behalf of the secondary
service provider in providing or passing on the service for the
secondary service provider (see section 911B of the Act); and
(d) the intermediary is a financial services licensee or an
authorised representative of a financial services licensee; and
(e) the secondary service provider has a written agreement with
the intermediary under which the intermediary agrees to
either:
(i) give the secondary service provider’s Financial Services
Guide relating to the financial service provided by the
secondary service provider to the client; or
(ii) inform the client how to obtain the secondary service
provider’s Financial Services Guide relating to the
financial service provided by the secondary service
provider;
then, for subsection 941C(8) of the Act, the secondary service
provider does not have to give the client a Financial Services
Guide for the financial service.
7.7.02A Situations when Financial Services Guide is not required
(1) For paragraph 951C(1)(c) of the Act, section 941C of the Act is
modified by inserting after subsection 941C(1) the following
subsection:
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Part 7.7 Financial service disclosure
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Regulation 7.7.02A
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“(1A) The providing entity does not have to give the client a Financial
Services Guide if the client has already received the documents
referred to in paragraphs (7A)(b) and (c), in the circumstances set
out in that subsection, that together contain all of the information
that the new Financial Services Guide is required to contain.”
(2) For paragraph 951C(1)(c) of the Act, section 941C of the Act is
modified by inserting after subsection 941C(7) the following
subsections:
“(7A) The providing entity does not have to give the client a Financial
Services Guide in the following circumstances:
(a) if the providing entity will, or is likely to, provide a financial
service to the client in a recommendation situation (see
section 1012A), an issue situation (see section 1012B) or a
sale situation (see section 1012C);
(b) the providing entity gives to the client a Product Disclosure
Statement;
(c) the providing entity gives to the client a statement that:
(i) contains so much of the information required by
section 942B or 942C (as the case may be), and any
regulations made for the purposes of the appropriate
section, as is not already set out in the Product
Disclosure Statement; and
(ii) complies with the requirements set out in
subsection (7B);
(d) the statements mentioned in paragraphs (b) and (c) are given
at the same time.
(7B) The statement referred to in paragraph (7A)(c) must:
(a) be up to date as at the time it is given to the client; and
(b) may contain information apart from that referred to in
subparagraph (7A)(c)(i); and
(c) meet the requirements of subsections 942B(3) and (6A) or
subsections 942C(3) and (6A) (as the case may be).”
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Financial Services Guide Division 2
Regulation 7.7.03
Corporations Regulations 2001 9
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7.7.03 Financial Services Guide given by financial services licensee:
description of documents
(1) For paragraph 942B(2)(k) of the Act, the Financial Services Guide
given by a financial services licensee must include a statement that:
(a) describes the purpose and content of the Financial Services
Guide; and
(b) if appropriate:
(i) informs the client that the client may also receive either
or both of a Statement of Advice and a Product
Disclosure Statement; and
(ii) describes the purpose and content of those documents.
(2) In describing the purpose and content of the Financial Services
Guide as mentioned in subregulation (1), the client’s attention must
be drawn to the following matters:
(a) the Guide is designed to assist the client in deciding whether
to use any of the services offered in the Guide;
(b) the Guide contains information about remuneration that may
be paid to the financial services licensee and other relevant
persons in relation to the services offered;
(c) the Guide contains information on how complaints against
the financial services licensee are dealt with.
(3) In describing the purpose and content of a Statement of Advice or
Product Disclosure Statement, the client’s attention must be drawn
to a description of the circumstances in which the Statement of
Advice or Product Disclosure Statement will be given.
(4) Subregulations (2) and (3) do not prevent the statement required
under subregulation (1) from drawing attention to other matters
relating to the purpose and content of the Financial Services Guide,
the Statement of Advice or the Product Disclosure Statement.
(5) The statement required under subregulation (1) must be:
(a) presented in a manner that is easy for the client to
understand; and
(b) displayed prominently in the Financial Services Guide.
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Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 2 Financial Services Guide
Regulation 7.7.03A
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(6) A statement is displayed prominently if it:
(a) appears at, or close to, the front of the Financial Services
Guide; and
(b) stands out from the other information contained in the Guide.
Note: Ideally, the statement should be placed:
(a) on the inside cover or inside facing page of a paper-based Financial Services Guide form; or
(b) in an equivalent position of a Financial Services Guide that is not provided in a paper-based form.
7.7.03A Financial Services Guide given by financial services
licensee: compensation arrangements
(1) For paragraph 942B(2)(k) of the Act, the Financial Services Guide
given by a financial services licensee must include a statement
about:
(a) the kind of compensation arrangements that the licensee has
in place; and
(b) whether those arrangements satisfy the requirements for
compensation arrangements under section 912B of the Act.
(2) This regulation commences, for a particular financial services
licensee, on the date that subregulations 7.6.02AAA(1), (2) and (3)
take effect for that licensee.
7.7.04 Financial Services Guide given by financial services licensee:
remuneration, commission and benefits
(1) For paragraph 942B(2)(k) of the Act, the Financial Services Guide
given by a financial services licensee must include information, to
the extent that the information is able to be ascertained at the time
the Financial Services Guide is given to the client, about all
remuneration (including commission) and other benefits that a
person (person 1) has received, or is to receive, for referring
another person to the financial services licensee.
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Regulation 7.7.04
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Overview of regulation
(2) For paragraph 942B(4)(c) of the Act, the information required in
particular situations by paragraph 942B(2)(e) in relation to persons
mentioned in paragraph 942B(2)(e) or person 1 (see
subregulation (1)) is as set out in subregulations (3), (4) and (5).
If remuneration is ascertainable at the time FSG is given
(3) The following information is required if the remuneration,
commission or other benefits are able to be worked out at the time
the Financial Services Guide is given to the client:
(a) in a case where the remuneration, commission or other
benefits are to be received by a person who is a licensed
trustee company, either:
(i) the remuneration, commission or other benefits; or
(ii) the remuneration, commission or other benefits stated as
a percentage of the income from the estate or as a
percentage of the capital value of the estate;
(b) in any other case—the remuneration, commission or other
benefits.
If remuneration is not ascertainable at the time FSG is given and
personal advice will be given
(4) If:
(a) the remuneration (including commission) or other benefits
are not able to be ascertained at the time the Financial
Services Guide is given to the client; and
(b) the providing entity reasonably believes that personal advice
will be given to the client;
the following information is required:
(c) either:
(i) particulars of the remuneration (including commission)
or other benefits, including, to the extent relevant, a
statement of the range of amounts or rates of
remuneration (including commission) or other benefits;
or
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Chapter 7 Financial services and markets
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Regulation 7.7.04
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(ii) general information about the remuneration (including
commission) or other benefits and the manner in which
the remuneration (including commission) or other
benefits are to be calculated;
(d) a statement that:
(i) if the remuneration (including commission) or other
benefits are calculable at the time the personal advice is
given, the remuneration (including commission) or
other benefits the person receives on specific financial
products to which the personal advice relates will be
disclosed at the time the personal advice is given or as
soon as practicable after that time; or
(ii) if the remuneration (including commission) or other
benefits are not calculable at the time the personal
advice is given, the manner in which the remuneration
(including commission) or other benefits are to be
calculated will be disclosed at the time the personal
advice is given or as soon as practicable after that time.
If remuneration is not ascertainable at the time FSG is given and
personal advice will not be given
(5) If:
(a) the remuneration (including commission) or other benefits
are not able to be ascertained at the time the Financial
Services Guide is given to the client; and
(b) the providing entity reasonably believes that personal advice
will not be given to the client;
the following information is required:
(c) particulars of the remuneration (including commission) or
other benefits, including, to the extent relevant, a statement
of the range of amounts or rates of remuneration (including
commission) or other benefits; or
(d) both of the following:
(i) general information about the remuneration (including
commission) or other benefits and the manner in which
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Financial Services Guide Division 2
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the remuneration (including commission) or other
benefits are to be calculated;
(ii) a statement that the client may request particulars of the
remuneration (including commission) or other benefits
but that the request must be made within a reasonable
time after the client is given the Financial Services
Guide and before any financial service identified in the
Guide is provided to the client.
7.7.04A Financial services guide given by financial services licensee:
more detailed information about remuneration etc
(1) For subsection 942B(7) of the Act, if:
(a) the remuneration (including commission) or other benefits
that a person mentioned in paragraph 942B(2)(e) or person 1
in subregulation 7.7.04(1) has received, or is to receive, are
not able to be ascertained at the time the Financial Services
Guide is given to the client; and
(b) the providing entity reasonably believes that personal advice
will not be given to the client; and
(c) the Financial Services Guide does not contain particulars of
the remuneration (including commission) or other benefits;
the client may request, from the financial services licensee,
particulars of the remuneration (including commission) or other
benefits.
(2) A request under subregulation (1) must be made within a
reasonable time after the client is given the Financial Services
Guide and before any financial service identified in the Guide is
provided to the client.
(3) For subregulation (1), the particulars must, to the extent relevant,
include a statement of the range of amounts or rates of
remuneration (including commission) or other benefits.
Examples:
1 Remuneration is paid within the range of $X to $Y.
2 Commission is paid at rates between X% and Y%.
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Part 7.7 Financial service disclosure
Division 2 Financial Services Guide
Regulation 7.7.04AA
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(4) The particulars mentioned in subregulation (3) must be presented
in a manner that is easy for the client to understand.
7.7.04AA Financial Services Guide given by financial services
licensee: non-monetary benefit that is not conflicted
remuneration
(1) This regulation is made for paragraph 942B(4)(b) of the Act.
(2) Information about a non-monetary benefit that, in accordance with
paragraph 963C(b) of the Act, is not conflicted remuneration is not
required by paragraph 942B(2)(e) of the Act.
Note: Under paragraph 963C(b) of the Act, if a non-monetary benefit is
given to a financial services licensee, or a representative of a financial
services licensee, who provides financial advice, is less than the
prescribed amount and identical or similar benefits are not given on a
frequent or regular basis, the benefit is not conflicted remuneration.
7.7.04AB Financial Services Guide given by authorised
representative: non-monetary benefit that is not
conflicted remuneration
(1) This regulation is made for paragraph 942C(4)(b) of the Act.
(2) Information about a non-monetary benefit that, in accordance with
paragraph 963C(b) of the Act, is not conflicted remuneration is not
required by paragraph 942C(2)(f) of the Act.
Note: Under paragraph 963C(b) of the Act, if a non-monetary benefit is
given to a financial services licensee, or a representative of a financial
services licensee, who provides financial advice, is less than the
prescribed amount and identical or similar benefits are not given on a
frequent or regular basis, the benefit is not conflicted remuneration.
7.7.05 Record of advice given by financial services licensee
For subparagraph 942B(2)(g)(iii) of the Act, the period within
which a client may request a record of the advice to which that
subparagraph relates is 7 years after the day on which the advice is
provided.
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Financial Services Guide Division 2
Regulation 7.7.05A
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7.7.05A Financial Services Guide given by authorised representative
of financial services licensee: authorised representative
number
(1) For paragraph 942C(2)(m) of the Act, the Financial Services Guide
given by an authorised representative must include the authorised
representative number allocated by ASIC to the authorised
representative.
(2) Subregulation (1) does not apply to a Financial Services Guide to
which regulation 7.7.05B applies.
7.7.05B Personalised Financial Services Guide
(1) This regulation applies if:
(a) a financial services licensee; or
(b) an authorised representative (the authoriser) of a financial
services licensee;
authorises an individual to provide financial services on behalf of
the licensee.
(2) For paragraph 942C(4)(b) of the Act, the Financial Services Guide
in relation to a financial service does not have to include the
information in paragraph 942C(2)(a) of the Act, in respect of the
individual, if:
(a) the financial service is dealing in a financial product or the
provision of general advice or both; and
(b) the individual provides the financial service in accordance
with the authorisation; and
(c) the licensee has reasonable grounds to believe that the
identity or remuneration of the individual would not be
material to a decision by a retail client whether or not to
obtain the financial service; and
(d) the Financial Services Guide includes:
(i) the contact details and licence number of the licensee;
and
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(ii) a statement setting out, in general terms, the individual’s
role and capacity in providing the financial service.
(2A) For paragraph 942C(4)(b) of the Act, the Financial Services Guide
in relation to a financial service does not have to include a
statement setting out the name and contact details of a person if:
(a) the person is:
(i) a franchisee of the holder of an Australian financial
services licence (the franchisor) and a corporate
authorised representative of the franchisor; or
(ii) an employee of a franchisee of the holder of an
Australian financial services licence; and
(b) the franchisor is an authorised deposit-taking institution
(within the meaning of the Banking Act 1959) and regulated
by APRA; and
(c) the franchise agreement:
(i) subjects the person to the policies of the franchisor; and
(ii) requires compliance by the person with the policies of
the franchisor that were made to give effect to the
franchisor’s obligations under the Australian financial
services licence; and
(d) the Financial Services Guide produced by the franchisor
explains that the franchisor takes responsibility for the
services provided by the person.
(3) For paragraph 942C(4)(b) of the Act, the Financial Service Guide
in relation to a financial service does not have to include the
information in paragraph 942C(2)(a) of the Act, in respect of an
authoriser, if:
(a) the financial service is dealing in a financial product or the
provision of general advice or both; and
(b) the authoriser provides the financial service in accordance
with the authorisation; and
(c) the licensee has reasonable grounds to believe that the
identity or remuneration of the authoriser would not be
material to a decision by a retail client whether or not to
obtain the financial service; and
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(d) the Financial Services Guide includes:
(i) the contact details and licence number of the licensee;
and
(ii) a statement setting out, in general terms, the authoriser’s
role and capacity in providing the financial service.
Note: The Financial Services Guide will contain all information otherwise
required by section 942C of the Act.
7.7.05C Exemption from providing certain information in a
Financial Services Guide
(1) For paragraph 942B(4)(b) of the Act, for a Financial Services
Guide:
(a) information is not required by paragraph 942B(2)(c) of the
Act about a financial service to which subsection 941C(6) of
the Act applies; and
(b) information is not required by paragraph 942B(2)(e) of the
Act in relation to remuneration (including commission) or
other benefits that are received only in respect of, or that are
only attributable to, a financial service to which
subsection 941C(6) of the Act applies.
(2) For paragraph 942C(4)(b) of the Act, for a Financial Services
Guide:
(a) information is not required by paragraph 942C(2)(d) of the
Act, about a financial service to which subsection 941C(6) of
the Act applies; and
(b) information is not required by paragraph 942C(2)(f) of the
Act, in relation to remuneration (including commission) or
other benefits that are received only in respect of, or that are
only attributable to, a financial service to which
subsection 941C(6) of the Act applies.
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Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 2 Financial Services Guide
Regulation 7.7.06
18 Corporations Regulations 2001
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7.7.06 Financial Services Guide given by authorised representative of
financial services licensee: description of documents
(1) For paragraph 942C(2)(m) of the Act, the Financial Services Guide
given by an authorised representative must include a statement
that:
(a) describes the purpose and content of the Financial Services
Guide; and
(b) if appropriate:
(i) informs the client that the client may also receive either
or both of a Statement of Advice and a Product
Disclosure Statement; and
(ii) describes the purpose and content of those documents.
(2) In describing the purpose and content of the Financial Services
Guide as mentioned in subregulation (1), the client’s attention must
be drawn to the following matters:
(a) the Guide is designed to assist the client in deciding whether
to use any of the services offered in the Guide;
(b) the Guide contains information about remuneration that may
be paid to the authorised representative and other relevant
persons in relation to the services offered;
(c) the Guide contains information on how complaints against
the authorised representative are dealt with.
(3) In describing the purpose and content of a Statement of Advice or
Product Disclosure Statement, the client’s attention must be drawn
to a description of the circumstances in which the Statement of
Advice or Product Disclosure Statement will be given.
(4) Subregulations (2) and (3) do not prevent the statement required
under subregulation (1) from drawing attention to other matters
relating to the purpose and content of the Financial Services Guide,
the Statement of Advice or the Product Disclosure Statement.
(5) The statement required under subregulation (1) must be:
(a) presented in a manner that is easy for the client to
understand; and
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(b) displayed prominently in the Financial Services Guide.
(6) A statement is displayed prominently if it:
(a) appears at, or close to, the front of the Financial Services
Guide; and
(b) stands out from the other information contained in the Guide.
Note: Ideally, the statement should be placed:
(a) on the inside cover or inside facing page of a paper-based Financial Services Guide form; or
(b) in an equivalent position of a Financial Services Guide that is not provided in a paper-based form.
7.7.06A Financial Services Guide given by authorised representative
of financial services licensee—licence number
For paragraph 942C(2)(m) of the Act, a providing entity that is an
authorised representative of a financial services licensee must
include the licensee’s licence number in a Financial Services Guide
given to a client.
7.7.06B Financial Services Guide given by authorised representative
of financial services licensee: compensation arrangements
(1) For paragraph 942C(2)(m) of the Act, the Financial Services Guide
given by the authorised representative of a financial services
licensee must include a statement about:
(a) the kind of compensation arrangements that the licensee has
in place; and
(b) whether those arrangements satisfy the requirements for
compensation arrangements under section 912B of the Act.
(2) This regulation commences, for a particular authorised
representative, on the date that subregulations 7.6.02AAA(1), (2)
and (3) take effect for the financial services licensee for whom he
or she is a representative.
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Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 2 Financial Services Guide
Regulation 7.7.07
20 Corporations Regulations 2001
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7.7.07 Financial Services Guide given by authorised representative of
financial services licensee: remuneration, commission and
benefits
(1) For paragraph 942C(2)(m) of the Act, the Financial Services Guide
given by an authorised representative of a financial services
licensee must include information, to the extent that the
information is able to be ascertained at the time the Financial
Services Guide is given to the client, about all remuneration
(including commission) and other benefits that a person (person 1)
has received, or is to receive, for referring another person to:
(a) the authorised representative; or
(b) the financial services licensee.
Overview of regulation
(2) For paragraph 942C(4)(c) of the Act, the information required in
particular situations by paragraph 942C(2)(f) in relation to persons
mentioned in paragraph 942C(2)(f) or person 1 (see
subregulation (1)) is as set out in subregulations (3), (4) and (5).
If remuneration is ascertainable at the time FSG is given
(3) The following information is required if the remuneration,
commission or other benefits are able to be worked out at the time
the Financial Services Guide is given to the client:
(a) in a case where the remuneration, commission or other
benefits are to be received by a person who is a licensed
trustee company, either:
(i) the remuneration, commission or other benefits; or
(ii) the remuneration, commission or other benefits stated as
a percentage of the income from the estate or as a
percentage of the capital value of the estate;
(b) in any other case—the remuneration, commission or other
benefits.
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Financial Services Guide Division 2
Regulation 7.7.07
Corporations Regulations 2001 21
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If remuneration is not ascertainable at the time FSG is given and
personal advice will be given
(4) If:
(a) the remuneration (including commission) or other benefits
are not able to be ascertained at the time the Financial
Services Guide is given to the client; and
(b) the providing entity reasonably believes that personal advice
will be given to the client;
the following information is required:
(c) either:
(i) particulars of the remuneration (including commission)
or other benefits, including, to the extent relevant, a
statement of the range of amounts or rates of
remuneration (including commission) or other benefits;
or
(ii) general information about the remuneration (including
commission) or other benefits and the manner in which
the remuneration (including commission) or other
benefits are to be calculated;
(d) a statement that:
(i) if the remuneration (including commission) or other
benefits are calculable at the time the personal advice is
given, the remuneration (including commission) or
other benefits the person receives on specified financial
products to which the personal advice relates will be
disclosed at the time the personal advice is given or as
soon as practicable after that time; or
(ii) if the remuneration (including commission) or other
benefits are not calculable at the time the personal
advice is given, the manner in which the remuneration
(including commission) or other benefits are to be
calculated will be disclosed at the time the personal
advice is given or as soon as practicable after that time.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 2 Financial Services Guide
Regulation 7.7.07A
22 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
If remuneration is not ascertainable at the time FSG is given and
personal advice will not be given
(5) If:
(a) the remuneration (including commission) or other benefits
are not able to be ascertained at the time the Financial
Services Guide is given to the client; and
(b) the providing entity reasonably believes that personal advice
will not be given to the client;
the following information is required:
(c) particulars of the remuneration (including commission) or
other benefits, including, to the extent relevant, a statement
of the range of amounts or rates of remuneration (including
commission) or other benefits; or
(d) both of the following:
(i) general information about the remuneration (including
commission) or other benefits and the manner in which
the remuneration (including commission) or other
benefits are to be calculated;
(ii) a statement that the client may request particulars of the
remuneration (including commission) or other benefits
but that the request must be made within a reasonable
time after the client is given the Financial Services
Guide and before any financial service identified in the
Guide is provided to the client.
7.7.07A Financial services guide given by authorised representative:
more detailed information about remuneration etc
(1) For subsection 942C(7) of the Act, if:
(a) the remuneration (including commission) or other benefits
that a person mentioned in paragraph 942C(2)(f) or person 1
in subregulation 7.7.07(1) has received, or is to receive, are
not able to be ascertained at the time the Financial Services
Guide is given to the client; and
(b) the providing entity reasonably believes that personal advice
will not be given to the client; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Financial Services Guide Division 2
Regulation 7.7.08
Corporations Regulations 2001 23
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) the Financial Services Guide does not contain particulars of
the remuneration (including commission) or other benefits;
the client may request, from the authorised representative,
particulars of the remuneration (including commission) or other
benefits.
(2) A request under subregulation (1) must be made within a
reasonable time after the client is given the Financial Services
Guide and before any financial service identified in the Guide is
provided to the client.
(3) For subregulation (1), the particulars must, to the extent relevant,
include a statement of the range of amounts or rates of
remuneration (including commission) or other benefits.
Examples:
1 Remuneration is paid within the range of $X to $Y.
2 Commission is paid at rates between X% and Y%.
(4) The particulars mentioned in subregulation (3) must be presented
in a manner that is easy for the client to understand.
7.7.08 Record of advice given by authorised representative of
financial services licensee
For subparagraph 942C(2)(h)(iii) of the Act, the period within
which a client may request a record of the advice to which that
subparagraph relates is 7 years after the day on which the advice is
provided.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 2A Combined Financial Services Guide and Product Disclosure Statement
Regulation 7.7.08A
24 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2A—Combined Financial Services Guide and
Product Disclosure Statement
7.7.08A Combined Financial Services Guide and Product Disclosure
Statement
(1) For subsection 942DA(1) of the Act, this regulation specifies the
circumstances in which a Financial Services Guide and a Product
Disclosure Statement may be combined in a single document.
(1A) This regulation does not apply if the Product Disclosure Statement
is for an FHSA product.
(1A) This regulation does not apply if the Product Disclosure Statement
is for an FHSA product.
(1B) This regulation does not apply if the Product Disclosure Statement
is for a margin loan.
(1C) This regulation does not apply if the Product Disclosure Statement
is for a superannuation product to which Subdivision 4.2B of
Division 4 of Part 7.9 applies.
(1D) This regulation does not apply if the Product Disclosure Statement
is for a simple managed investment scheme to which
Subdivision 4.2C of Division 4 of Part 7.9 applies.
(2) A combined Financial Services Guide and Product Disclosure
Statement may be issued as a single document if:
(a) the providing entity for the financial service and the product
issuer for a product issued in relation to that financial service
are the same person; and
(b) the document is divided into 2 separate parts:
(i) a part identifiable as a Financial Services Guide that
satisfies the requirements under the Act for a Financial
Services Guide; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Combined Financial Services Guide and Product Disclosure Statement Division 2A
Regulation 7.7.08A
Corporations Regulations 2001 25
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) a part identifiable as a Product Disclosure Statement
that satisfies the requirements for a Product Disclosure
Statement; and
(c) the title ‘Combined Financial Services Guide and Product
Disclosure Statement’ is marked on or near the front of the
document; and
(d) the document is provided to a client at the earlier of the time
at which a Financial Services Guide must be provided and
the time at which a Product Disclosure Statement must be
provided.
(3) A combined Financial Services Guide and Product Disclosure
Statement may be issued as a single document if:
(a) the providing entity for the financial service is a
representative or a related body corporate of the product
issuer; and
(b) the product is only a basic deposit product, a non-cash
payment facility that is related to a basic deposit product, a
general insurance product or a life risk insurance product;
and
(c) the document is divided into 2 separate parts:
(i) a part identifiable as a Financial Services Guide that
satisfies the requirements under the Act for a Financial
Services Guide; and
(ii) a part identifiable as a Product Disclosure Statement
that satisfies the requirements for a product Disclosure
Statement; and
(d) the title ‘Combined Financial Services Guide and Product
Disclosure Statement’ is marked on or near the front of the
document; and
(e) the document clearly and prominently discloses:
(i) the identity of the providing entity and the product
issuer; and
(ii) the nature of the relationship between the providing
entity and the product issuer; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 2A Combined Financial Services Guide and Product Disclosure Statement
Regulation 7.7.08A
26 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(iii) the liability of the providing entity and the product
issuer in relation to the document; and
(f) the document is provided to a client at the earlier of the time
at which a Financial Services Guide must be provided and
the time at which a Product Disclosure Statement must be
provided.
(4) For the single document:
(a) the Financial Services Guide and the Product Disclosure
Statement may provide for matters by the use of
cross-references to each other rather than by fully setting out
material; and
(b) if the document includes cross-references:
(i) the document as a whole must include all of the
information required by subsections 942B(6A) and
1013C(3) of the Act; and
(ii) the use of the cross-references must not have the effect
that the document is misleading or deceptive.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Combined Financial Services Guide and credit guide Division 2AA
Regulation 7.7.08B
Corporations Regulations 2001 27
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2AA—Combined Financial Services Guide and
credit guide
7.7.08B Modification of section 942DA of the Act
(1) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if section 942DA of the Act were modified by substituting the
heading of the section with the following section heading and
subsection heading:
‘942DA Combining a Financial Services Guide and another
instrument
Financial Services Guide and a Product Disclosure Statement’.
(2) Part 7.7 of the Act applies as if section 942DA of the Act were also
modified by inserting after subsection (3) the following subsection
heading and subsections:
‘Financial Services Guide and a credit guide
(4) If:
(a) a person:
(i) is:
(A) a financial services licensee; or
(B) an authorised representative of a financial
services licensee; and
(ii) is required to give a Financial Services Guide to a client
under this Act; and
(b) the person:
(i) either:
(A) holds an Australian credit licence under the
National Consumer Credit Protection Act 2009;
or
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 2AA Combined Financial Services Guide and credit guide
Regulation 7.7.08B
28 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(B) is a credit representative (within the same
meaning as in the National Consumer Credit
Protection Act 2009); and
(ii) is required to give a credit guide to a consumer under
that Act;
the person may combine the Financial Services Guide and credit
guide in a single document.
(5) If the person combines the Financial Services Guide and credit
guide in a single document, any statements or information to be
included in the credit guide that are identical to statements or
information to be included in the Financial Services Guide need
only be included once.’
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Record of small investment advice Division 2B
Regulation 7.7.08C
Corporations Regulations 2001 29
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2B—Record of small investment advice
7.7.08C Record of small investment advice—content requirements
(1) For subsection 946AA(4) of the Act, a record of advice to a client
must set out:
(a) the matters set out in subregulation (2); and
(b) the information that, if a Statement of Advice were to be
given, would be required in that statement by paragraphs
947B(2)(d) and (e) of the Act or paragraphs 947C(2)(e) and
(f) of the Act.
(2) For paragraph (1)(a), the matters that the record of advice must set
out are:
(a) brief particulars of the recommendations made to the client
and the basis on which the recommendations are made; and
(b) brief particulars of the information that would be required by
subsection 947D(2) of the Act if a Statement of Advice were
given to the client; and
(c) the statement that would be required by subsection 947D(3)
of the Act if a Statement of Advice were given to the client.
Note: A client is entitled to ask the providing entity for a record of advice
and the providing entity must give a copy of the record of advice to
the client—see paragraph 946AA(5)(a) of the Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.09
30 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 3—Statement of Advice
7.7.09 Situations in which statement of advice is not required:
further advice
(1) For subsection 946B(3A) of the Act, a record of advice must set
out:
(a) the following:
(i) the advice given to the client by the providing entity;
(ii) if information or a statement required by
subsections 947D(2) and (3) is given—the information
and statement; or
(b) the following:
(i) brief particulars of the recommendations made and the
basis on which the recommendations are made;
(ii) if information under subsection 947D(2) is given—brief
particulars of the information;
(iii) if a statement under subsection 947D(3) is given—an
acknowledgement that the statement has been given.
(2) The providing entity may keep the record in any form, for
example, a tape recording.
(3) The providing entity must keep the record for 7 years after the day
on which the further advice is provided.
7.7.09A Situations in which Statement of Advice is not required:
small investments threshold
(1) For subparagraph 946AA(1)(a)(i) of the Act, the threshold amount
is $15 000.
(2) Subregulations (3) and (4) apply to each of the following financial
products:
(a) shares;
(b) rights issues;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.09A
Corporations Regulations 2001 31
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) options over unissued shares;
(d) partly paid shares;
(e) debentures;
(f) stapled securities.
(3) For small investment advice to a client that is related to the
acquisition of one or more of the financial products listed in
paragraphs (2)(a) to (f), the threshold amount in subregulation (1)
must be calculated to include the total value of all financial
investments that would be committed to by the client if the advice
were accepted by the client.
Examples:
1 If the small investment advice related to the purchase of options over
unissued shares the total cost of the options would be both the cost to
buy the options and the cost of the exercise price on the face of the
options.
2 If the small investment advice relates to the purchase of partly paid
shares the total cost of the shares must be calculated as if all calls had
been made on the shares.
Note: The total value of all financial investments in relation to which small
investment advice is provided is calculated in accordance with
subsection 946AA(2) of the Act.
(4) For small investment advice to a client that is related to the
disposal of one or more of the financial products listed in
paragraphs (2)(a) to (f), the threshold amount in subregulation (1)
must be calculated to include the total value of all financial
investments that would be disposed of by the client if the advice
were accepted by the client.
Note: The total value of all financial investments in relation to which small
investment advice is provided is calculated in accordance with
subsection 946AA(2) of the Act.
(5) Subregulations (6) and (7) apply to each of the following financial
products:
(a) superannuation;
(b) managed investment schemes;
(c) non-derivative instalment warrants.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.09A
32 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(6) For small investment advice to a client that is related to the
acquisition of one or more of the financial products listed in
paragraphs (5)(a) to (c), the threshold amount in subregulation (1)
must be calculated to include:
(a) both:
(i) the cost to the client of the initial investment; and
(ii) other amounts that would be committed to by the client
if the advice is taken; and
(b) if the investment is not finite—the value of the investment is
calculated for the 12-month period beginning from the date
that the record of advice is required by subregulation (10),
(11) or (12) to be given to the client.
Examples:
1 Advice given in relation to switching superannuation funds
A person earning $50 000 per annum is given advice to switch an
existing superannuation fund balance of $12 000 to another
superannuation fund and direct all future superannuation guarantee
contributions to that same fund. In this event the total of the
superannuation guarantee contributions in the first 12-month period
(ie $50 000 × 0.09 = $4 500) when added to the initial $12 000
transfer, would exceed the $15 000 threshold. In this example the
exemption, in section 946AA of the Act, from the requirement to
provide a Statement of Advice would not apply.
2 Advice given to acquire non-derivative instalment warrants
The terms of the non-derivative instalment warrants are that $10 000
must be paid initially, a second payment of $12 000 in 18 months time
and a third and final payment of $12 000 in 3 years time. The
investment advice, assuming the client has committed to
implementing the advice, concerns a $34 000 investment and therefore
the exemption, in section 946AA of the Act, from the requirement to
provide a Statement of Advice would not apply.
Note: The total value of all financial investments in relation to which small
investment advice is provided is calculated in accordance with
subsection 946AA(2) of the Act.
(7) For small investment advice to a client that is related to the
disposal of one or more of the financial products listed in
paragraphs (5)(a) to (c), the threshold amount in subregulation (1)
must be calculated to include:
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Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.09A
Corporations Regulations 2001 33
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the value to the client of the total divestment; and
(b) other amounts reasonably related to the divestment that
would be expended if the advice is taken.
Note: The total value of all financial investments in relation to which small
investment advice is provided is calculated in accordance with
subsection 946AA(2) of the Act.
(8) If the total value of an investment, to which investment advice to a
client relates, is not able to be ascertained under
subsection 946AA(2) of the Act, the investment advice is taken to
exceed the threshold amount in subregulation (1).
(9) If an investment, to which investment advice relates, is jointly held
by more than 1 client, the sum of the values of each client’s
investment must be calculated to determine whether the threshold
amount in subregulation (1) is exceeded.
When record of advice is given
(10) For subsection 946AA(4) of the Act, a record of advice is required
to be given to a client when, or as soon as practicable after,
investment advice is provided to the client and, in any event,
subject to subregulation (12), before the providing entity provides
the client with any further financial service that arises out of or in
connection with the investment advice.
Statement of certain information if record of advice not given when
advice provided
(11) If the record of advice is not given to the client when the
investment advice is provided, the providing entity must, at the
time the investment advice is provided, give the client a statement
that contains the information that would be required to be in a
Statement of Advice by:
(a) paragraphs 947B(2)(d) and (e) of the Act; or
(b) paragraphs 947C(2)(e) and (f) of the Act;
as the case requires, and by section 947D of the Act, if applicable.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.09AA
34 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Time-critical cases
(12) If:
(a) a client expressly instructs that they require a further
financial service to be provided immediately, or by a
specified time; and
(b) the further financial service arises out of, or in connection
with, the investment advice given to the client; and
(c) it is not reasonably practicable to give a record of advice to
the client before the further service is provided as so
instructed;
the providing entity must give the client the record of advice:
(d) unless paragraph (e) applies—within 5 days after providing
the further service, or as soon as practicable; or
(e) if the further financial service is the provision to the client of
a financial product and section 1019B of the Act applies to
the acquisition of the product by the client—before the start
of the period applicable under subsection 1019B(3) of the
Act, or sooner if practicable.
7.7.09AA Statement of Advice from financial services licensee
(1) For paragraph 947B(2)(g) of the Act, a Statement of Advice given
by a financial services licensee in relation to a margin lending
facility, or a margin lending facility whose limit is proposed to be
increased, within the meaning of subsection 761EA(1) of the Act
must include the following information:
(a) whether the client has taken out a loan to fund the secured
property or transferred securities contributed by the client for
establishing the margin lending facility;
Note: This is sometimes referred to as ‘double gearing’.
(b) if a loan to fund the secured property or transferred securities
contributed by the client for establishing the margin lending
facility has been taken out—whether the security for the loan
includes the primary residential property of the client;
(c) whether there is a guarantor for the margin lending facility,
and, if so:
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.09AB
Corporations Regulations 2001 35
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) if the financial services licensee has the necessary
information—a statement as to whether the guarantor
has been appropriately informed of, and warned about,
the risks and possible consequences of providing the
guarantee; or
(ii) if the financial services licensee does not have the
necessary information—a statement that the financial
services licensee does not have the information;
(d) the amount of any other debt incurred by the client;
(e) any other matter that ASIC has specified in a legislative
instrument for subregulation (2).
(2) ASIC may specify in a legislative instrument any matter ASIC
considers to be relevant for the purpose of establishing whether the
margin lending facility, or the margin lending facility with the
increased limit, is unsuitable for the client.
7.7.09AB Modification of subsection 947B(4) of the Act
For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if subsection 947B(4) of the Act were modified by:
(a) substituting the full stop at the end of paragraph (c) with a
semi-colon; and
(b) inserting after paragraph (c) the following paragraph:
‘(d) that ASIC may specify in a legislative instrument matters
ASIC considers to be relevant for the purposes of
paragraph 947B(2)(g) of the Act.’
7.7.09B Statement of Advice from providing entity—information not
included in the Statement
(1) For paragraphs 947B(4)(b) and 947C(4)(b) of the Act, a providing
entity is not required to include a statement or information
mentioned in Part 7.7 of the Act in a Statement of Advice to the
client if the Statement of Advice:
(a) refers to the statement or information; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.09BA
36 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) provides sufficient details about the statement or information
to enable the client:
(i) to identify by a unique identifier the document, or part
of the document, that contains the statement or
information; and
(ii) to decide whether or not to read the statement or
information or obtain a copy of the statement or
information; and
(c) states that a copy of the statement or information may be
obtained from the providing entity on request, at no charge.
(2) Subject to subregulation (3), the providing entity must give the
client the document, or part of the document (whichever is
applicable), unless the providing entity has already given the
document or part of the document to the client.
(3) If the providing entity is an authorised representative of an
Australian financial services licensee, the document, or part of the
document (whichever is applicable), may be provided to the client:
(a) by another authorised representative appointed by and acting
on behalf of the licensee; or
(b) by the licensee.
(4) If the client requests a copy of a statement or information that the
providing entity is not required to include in accordance with
subregulation (1), the providing entity must provide the copy as
soon as practicable, at no charge.
(5) If a statement or information is not required to be included in a
Statement of Advice because of subregulation (1), the statement or
information is taken to be included in the Statement of Advice.
(6) The exemption in subregulation (1) does not apply to a statement
or information that is required by section 947D or 961H of the Act.
7.7.09BA Statement of Advice from authorised representative
(1) For paragraph 947C(2)(h) of the Act, a Statement of Advice given
by an authorised representative in relation to a margin lending
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.09BB
Corporations Regulations 2001 37
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
facility, or a margin lending facility whose limit is proposed to be
increased, within the meaning of subsection 761EA(1) of the Act
must include the following information:
(a) whether the client has taken out a loan to fund the secured
property or transferred securities contributed by the client for
establishing the margin lending facility;
Note: This is sometimes referred to as ‘double gearing’.
(b) if a loan to fund the secured property or transferred securities
contributed by the client for establishing the margin lending
facility has been taken out—whether the security for the loan
includes the primary residential property of the client;
(c) whether there is a guarantor for the margin lending facility,
and, if so:
(i) if the authorised representative has the necessary
information—a statement as to whether the guarantor
has been appropriately informed of, and warned about,
the risks and possible consequences of providing the
guarantee; or
(ii) if the authorised representative does not have the
necessary information—a statement that the authorised
representative does not have the information;
(d) the amount of any other debt incurred by the client;
(e) any other matter that ASIC has specified in a legislative
instrument for subregulation (2).
(2) ASIC may specify in a legislative instrument any matter ASIC
considers to be relevant for the purpose of establishing whether the
margin lending facility, or the margin lending facility with the
increased limit, is unsuitable for the client.
7.7.09BB Modification of subsection 947C(4) of the Act
For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if subsection 947C(4) of the Act were modified by:
(a) substituting the full stop at the end of paragraph (c) with a
semi-colon; and
(b) inserting after paragraph (c) the following paragraph:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.09BC
38 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
‘(d) that ASIC may specify in a legislative instrument matters
ASIC considers to be relevant for the purposes of
paragraph 947C(2)(h) of the Act.’
7.7.09BC Statement of Advice given by financial services licensee:
non-monetary benefit that is not conflicted remuneration
(1) This regulation is made for paragraph 947B(4)(b) of the Act.
(2) Information about a non-monetary benefit that, in accordance with
paragraph 963C(b) of the Act, is not conflicted remuneration is not
required by paragraph 947B(2)(d) of the Act.
Note: Under paragraph 963C(b) of the Act, if a non-monetary benefit is
given to a financial services licensee, or a representative of a financial
services licensee, who provides financial advice, is less than the
prescribed amount and identical or similar benefits are not given on a
frequent or regular basis, the benefit is not conflicted remuneration.
7.7.09BD Statement of Advice given by authorised representative:
non-monetary benefit that is not conflicted remuneration
(1) This regulation is made for paragraph 947C(4)(b) of the Act.
(2) Information about a non-monetary benefit that, in accordance with
paragraph 963C(b) of the Act, is not conflicted remuneration is not
required by paragraph 947C(2)(e) of the Act.
Note: Under paragraph 963C(b) of the Act, if a non-monetary benefit is
given to a financial services licensee, or a representative of a financial
services licensee, who provides financial advice, is less than the
prescribed amount and identical or similar benefits are not given on a
frequent or regular basis, the benefit is not conflicted remuneration.
7.7.09C Requirement to keep Statement of Advice and other
documents
A Statement of Advice and a document, or part of a document,
mentioned in the Statement, must be retained, by the providing
entity that gave the Statement, for 7 years after the day on which
the Statement is provided to the client.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.10
Corporations Regulations 2001 39
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7.10 Products for which a Statement of Advice is not required
For paragraph 946B(5)(c) of the Act, the following are prescribed:
(a) a deposit product that is a facility in relation to which:
(i) there is no minimum period before which funds cannot
be withdrawn or transferred from the facility without a
reduction in the return generated for the depositor; or
(ii) if there is such a period, it expires on or before the end
of the period of 2 years starting on the day on which
funds were first deposited in the facility;
(b) travellers’ cheques;
(c) a cash management trust interest;
(d) a motor vehicle insurance product (see regulation 7.1.11);
(e) a home building insurance product (see regulation 7.1.12);
(f) a home contents insurance product (see regulation 7.1.13);
(g) a travel insurance product (see regulation 7.1.16);
(h) a personal and domestic property insurance product (see
regulation 7.1.17);
(i) a general insurance product prescribed by regulations made
for the purposes of subparagraph 761G(5)(b)(viii) (see
regulation 7.1.17A);
(j) a capital guaranteed FHSA product.
7.7.10AA Obligation on authorised representative to give a financial
services guide
For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if subsection 941B(2) were omitted and the following subsection
were substituted:
“(2) A Financial Services Guide must not be given to the person by the
providing entity unless the authorising licensee, or each of the
authorising licensees, on whose behalf the providing entity
provides the financial services, has authorised its distribution by
the providing entity.”
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.10AAA
40 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7.10AAA Record of advice without a recommendation to purchase
or sell—content requirements
For subsection 946B(9) of the Act, a record of advice must set out
the following:
(a) the investment advice given to a client by the providing
entity;
(b) brief particulars of the recommendations made to the client
and the basis on which the recommendations are made;
(c) if the providing entity is a financial services licensee—the
information that, if a Statement of Advice were to be given,
would be required in that Statement by paragraphs
947B(2)(d) and (e) of the Act;
(d) if the providing entity is an authorised representative—the
information that, if a Statement of Advice were to be given,
would be required in that Statement by paragraphs
947C(2)(e) and (f) of the Act.
Note: A client is entitled to ask the providing entity for a record of advice
under subsections 942B(8) and 942C(8) of the Act.
7.7.10AB Financial services guide—contents of guide
Financial services guide given by financial services licensee
(1) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if paragraph 942B(2)(c) of the Act were omitted and the following
paragraph were substituted:
“(c) either:
(i) information about the financial services (the authorised
services) that the providing entity will be, or is likely to
be, providing to the client, and the kinds of financial
products to which those services relate; or
(ii) information about the kinds of financial services (the
authorised services) that the providing entity is
authorised by its licence to provide, and the kinds of
financial products to which those services relate; and”.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.10AC
Corporations Regulations 2001 41
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Financial services guide given by authorised representative
(2) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if paragraphs 942C(2)(c), (d) and (e) of the Act were omitted and
the following paragraphs were substituted:
“(c) either:
(i) information about the financial services (the authorised
services) that the providing entity will be, or is likely to
be, providing to the client, and the kinds of financial
products to which those services relate; or
(ii) information, in relation to the authorising licensee or
each of the authorising licensees, about the kinds of
financial services (the authorised services) that the
providing entity provides as representative of the
authorising licensee, and the kinds of financial products
to which those services relate; and
(d) information about who the authorising licensee, or each of
the authorising licensees, acts for when the authorised
services are provided on their behalf by the providing entity;
and
(e) a statement:
(i) setting out the name and contact details of the
authorising licensee, or of each of the authorising
licensees, mentioned in paragraph (d); and
(ii) stating that the providing entity is the authorised
representative of that licensee or those licensees; and”.
7.7.10AC Financial services guide
Financial services guide given by financial services licensee—
contents of guide
(1) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if paragraph 942B(2)(g) were omitted and the following paragraph
were substituted:
“(g) if the providing entity provides further advice—a statement
in relation to which the following requirements are satisfied:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.10AC
42 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) the statement must indicate that the client may request a
record of further advice that is provided to them, if they
have not already been provided with a record of that
advice;
(ii) the statement must set out particulars of how the client
may request such a record;
(iii) any limitation in those particulars relating to the time
within which the client may request such a record must
be consistent with any applicable requirements in
regulations made for the purposes of this subparagraph
or, if there are no such applicable requirements, must be
such as to allow the client a reasonable opportunity to
request a record of the advice; and”.
Financial services guide given by financial services licensee—
compliance with statement
(2) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if subsection 942B(8) were omitted and the following subsection
were substituted:
“(8) If:
(a) the Financial Services Guide includes a statement to the
effect that a client may request a record of further advice; and
(b) the client is provided with further advice to which that
statement applies; and
(c) the client has not already been provided with a record of that
advice;
the providing entity must comply with a request made in
accordance with that statement for a record of that advice.
Note: Failure to comply with this subsection is an offence (see
subsection 1311(1)).”
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.10AD
Corporations Regulations 2001 43
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7.10AD Financial services guide
Financial services guide given by authorised representative—
contents of guide
(1) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if paragraph 942C(2)(h) were omitted and the following paragraph
were substituted:
“(h) if the providing entity, when acting as representative of the
authorising licensee or any of the authorising licensees,
provides further advice—a statement in relation to which the
following requirements are satisfied:
(i) the statement must indicate that the client may request a
record of further advice that is provided to them, if they
have not already been provided with a record of that
advice;
(ii) the statement must set out particulars of how the client
may request such a record;
(iii) any limitation in those particulars relating to the time
within which the client may request such a record must
be consistent with any applicable requirements in
regulations made for the purposes of this subparagraph
or, if there are no such applicable requirements, must be
such as to allow the client a reasonable opportunity to
request a record of the advice; and”.
Financial services guide given by authorised representative—
compliance with statement
(2) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if subsection 942C(8) were omitted and the following subsection
were substituted:
“(8) If:
(a) the Financial Services Guide includes a statement to the
effect that a client may request a record of further advice; and
(b) the client is provided with further advice to which that
statement applies; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.10AE
44 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) the client has not already been provided with a record of that
advice;
the providing entity must comply with a request made in
accordance with that statement for a record of that advice.
Note: Failure to comply with this subsection is an offence (see
subsection 1311(1)).”
7.7.10AE Situations in which Statement of Advice not required
For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if section 946B of the Act were omitted and the following section
were substituted:
“946B Situations in which a Statement of Advice is not required
First situation: further advice
(1) The providing entity does not have to give the client a Statement of
Advice for particular advice (the further advice) if subsection (2)
or (2A) applies.
(2) This subsection applies if:
(a) the providing entity has previously given the client a
Statement of Advice that set out the client’s relevant personal
circumstances in relation to the advice (the previous advice)
set out in that Statement; and
(b) the client’s relevant personal circumstances in relation to the
further advice (determined having regard to the client’s
objectives, financial situation and needs as currently known
to the providing entity) are not significantly different from
the client’s relevant personal circumstances in relation to the
previous advice; and
(c) so far as the basis on which advice is given relates to other
matters—the basis on which the further advice is given is not
significantly different from the basis on which the previous
advice was given.
Note: Paragraphs 947B(2)(b) and 947C(2)(b) require a Statement of Advice
to include information about the basis on which the advice is or was
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.10AE
Corporations Regulations 2001 45
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
given, which may include the client's relevant personal circumstances,
in which case paragraph (a) of this subsection would be satisfied.
(2A) This subsection applies if:
(a) the client had a relationship with the providing entity before:
(i) if the providing entity is a licensee—the day on which
the providing entity obtained its Australian financial
services Licence; or
(ii) if the providing entity is an authorised representative—
the day on which the licensee on whose behalf the
advice is provided obtained its Australian financial
services Licence; and
(b) the providing entity gave the client advice (the earlier
advice) of a kind that if it were given after the day the
Australian financial services Licence was obtained would be
considered to be personal advice; and
(c) the client’s relevant personal circumstances in relation to the
further advice are not significantly different from the client’s
investment objectives, financial situation and particular needs
that were determined for the earlier advice; and
(d) so far as the basis on which advice is given relates to other
matters—the basis on which the further advice is given is not
significantly different from the basis on which the earlier
advice was given.
(3) At the same time or as soon as practicable after the further advice is given to the client, the client must be given a statement that contains the information that would, if a Statement of Advice were to be given, be required to be in the Statement by paragraphs 947B(2)(d) and (e), or 947C(2)(e) and (f), as the case requires, and by section 947D, if applicable.
(3A) The providing entity must keep a record of the further advice and,
in doing so, must comply with any applicable requirements of
regulations made for the purposes of this subsection.
Note 1: Failure to comply with this subsection is an offence (see
subsection 1311(1)).
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.10AF
46 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Note 2: For the client’s right to a record of the advice, see
subsections 942B(8) and 942C(8).
Note 3: Subsections 947D(2) and (3) require additional information to be
included in the record in certain circumstances.
Second situation: certain basic deposit and other products
(5) The providing entity does not have to give the client a Statement of
Advice if the advice relates to any or all of the following:
(a) a basic deposit product;
(b) a facility for making non-cash payments (see section 763D)
that is related to a basic deposit product;
(c) a financial product of a kind prescribed by regulations made
for the purposes of this paragraph.
(6) However, if subsection (4) applies and the client is not given a
Statement of Advice, the client must instead, when, or as soon as
practicable after, the advice is provided, be given the information
that would be required to be in the Statement of Advice by
paragraphs 947B(2)(d) and (e), or 947C(2)(e) and (f), as the case
requires.”
7.7.10AF Various consequential amendments to Division 7 of
Part 7.7 concerning situations where Financial Services
Guides do not have to be given
(1) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if the provision set out in column 2 of the following table were
modified as set out in columns 3 and 4:
Column 1 Column 2 Column 3 Column 4
Item provision of Act is modified
by…
and…
1 paragraph (a) of the
definition of defective in
subsection 952B(1)
omitting
“941D(2)”
substituting “941D(2) or
paragraph 941C(7A)(c)
or”
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.10AF
Corporations Regulations 2001 47
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Column 1 Column 2 Column 3 Column 4
Item provision of Act is modified
by…
and…
2 subparagraph (a)(iv) of
the definition of
defective in
subsection 952B(1)
omitting
“941D(2)”
substituting “941D(2) or
paragraph 941C(7A)(c)
or”
3 paragraph (d) of the
definition of disclosure
document or statement
in subsection 952B(1)
omitting
“946C(2)”
substituting “946C(2) or
paragraph 941C(7A)(c),”
4 paragraph 952E(3)(a) omitting
“946C(2)”
substituting “946C(2) or
paragraph 941C(7A)(c),”
5 paragraph 952F(1)(b) omitting
“946C(2)”
substituting “946C(2) or
paragraph 941C(7A)(c),”
6 subparagraph 952F(1)(c)
(i)
omitting
“946C(2)”
substituting “946C(2) or
paragraph 941C(7A)(c),”
7 paragraph 952G(1)(b) omitting
“946C(2)”
substituting “946C(2) or
paragraph 941C(7A)(c),”
8 subparagraph 952G(1)(c)
(i)
omitting
“946C(2)”
substituting “946C(2) or
paragraph 941C(7A)(c),”
9 paragraph (a) of the
definition of defective in
subsection 953A(1)
omitting
“941D(2)”
substituting “941D(2) or
paragraph 941C(7A)(c)
or”
10 subparagraph (a)(iv) of
the definition of
defective in
subsection 953A(1)
omitting
“941D(2)”
substituting “941D(2) or
paragraph 941C(7A)(c)
or”
11 paragraph (d) of the
definition of disclosure
document or statement
in subsection 953A(1)
omitting
“946C(2)”
substituting “946C(2) or
paragraph 941C(7A)(c),”
(2) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if subsection 940C(1) were modified by omitting “or a Statement
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.10AF
48 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
of Advice” and substituting “, a Statement of Advice or a statement
referred to in paragraph 941C(7A)(c)”.
(3) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if subsection 941D(4) were omitted and the following subsection
were substituted:
“(4) The client must then be given:
(a) the statement referred to in paragraph 941C(7A)(c) together
with a Product Disclosure Statement as required by
paragraph 941C(7A)(b)) in accordance with the requirements
of subsections 941C(7A) and (7B); or
(b) a Financial Services Guide;
within 5 business days after having given the statement referred to in subsection (3), or sooner if practicable.”
(4) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if the following subsection were inserted at the end of
section 941F:
“(2) If:
(a) a statement referred to in paragraph 941C(7A)(c) is given to
the client before the financial service is provided; and
(b) the following conditions are satisfied:
(i) there is a change in circumstances before the service is
provided and the statement does not contain the
information it would be required to contain if it were
given to a person immediately after that change;
(ii) the fact that the statement does not contain the up to
date information is materially adverse from the point of
view of a reasonable person deciding, as a retail client,
whether to proceed to be provided with the financial
service;
the providing entity must, before the service is provided, give the
client another statement of the kind referred to in
paragraph 941C(7A)(c) that contains the up to date information
before the service is provided.”
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.10AG
Corporations Regulations 2001 49
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7.10AG Various consequential amendments to Division 7 of
Part 7.7
(1) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if the provisions set out in column 2 of the following table were
modified as set out in columns 3 and 4:
Column 1 Column 2 Column 3 Column 4
Item provision of Act is modified
by…
and…
1 paragraph (b) of the
definition of defective in
subsection 952B(1)
omitting
“Statement of
Advice”
substituting “Statement
of Advice, a record of
advice required by
subsection 946B(3A),”
2 paragraph 952E(3)(a) omitting
“Statement of
Advice”
substituting “Statement
of Advice, a record of
advice required by
subsection 946B(3A),”
3 paragraph 952F(1)(b) omitting
“Statement of
Advice”
substituting “Statement
of Advice, a record of
advice required by
subsection 946B(3A),”
4 subparagraph 952F(1)(c)(i) omitting
“Statement of
Advice”
substituting “Statement
of Advice, a record of
advice required by
subsection 946B(3A),”
5 paragraph 952G(1)(b) omitting
“Statement of
Advice”
substituting “Statement
of Advice, a record of
advice required by
subsection 946B(3A),”
6 subparagraph 952G(1)(c)(i) omitting
“Statement of
Advice”
substituting “Statement
of Advice, a record of
advice required by
subsection 946B(3A),”
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.10AG
50 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Column 1 Column 2 Column 3 Column 4
Item provision of Act is modified
by…
and…
7 paragraph (b) of the
definition of defective in
subsection 953A(1)
omitting
“Statement of
Advice”
substituting “Statement
of Advice, a record of
advice required by
subsection 946B(3A),”
(2) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if the provisions set out in column 2 of the following table were
modified as set out in column 3:
Column 1 Column 2 Column 3
Item provision of Act is modified by…
1 the definition of
defective in
subsection 952B(1)
inserting after subparagraph 952B(1)(b)(ii):
(iiA) if it is a record of advice required
by subsection 946B(3A)—there is an
omission from the record of advice of
material required by
subsection 946B(3A) or
section 947D; or
2 the definition of
disclosure document
or statement in
subsection 952B(1)
inserting after paragraph (c) of the definition the
following paragraph:
(ca) a record of advice required by
subsection 946B(3A); or
3 the definition of
defective in
subsection 953A(1)
inserting after subparagraph 952B(1)(b)(ii) the
following paragraph:
(iiA) if it is a record of advice required
by subsection 946B(3A)—there is an
omission from the record of advice of
material required by
subsection 946B(3A) or
section 947D; or
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.10AH
Corporations Regulations 2001 51
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Column 1 Column 2 Column 3
Item provision of Act is modified by…
4 the definition of
disclosure document
or statement in
subsection 953A(1)
inserting after paragraph (c) of the definition the
following paragraph:
(ca) a record of advice required by
subsection 946B(3A); or
7.7.10AH Business days
For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if paragraph 946C(3)(c) was modified by omitting “5 days” and
substituting “5 business days”.
7.7.10AI Obligation to warn client that advice does not take account
of client’s objectives, financial situation or needs—carbon
units, Australian carbon credit units and eligible
international emissions units
For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies in
relation to a carbon unit, an Australian carbon credit unit or an
eligible international emissions unit as if paragraph 949A(2)(c)
read as follows:
“(c) if the advice relates to the acquisition, or possible acquisition,
of a carbon unit, the providing entity must:
(i) provide the client with the address of the website of the
Clean Energy Regulator mentioned in section 202 of the
Clean Energy Act 2011; and
(ii) inform the client that the client should consider each
statement mentioned in section 202 of the Clean Energy
Act 2011 before making any decision about whether to
acquire the financial product; and
(d) if the advice relates to the acquisition, or possible acquisition,
of an Australian carbon credit unit, the providing entity must:
(i) provide the client with the address of the website of the
Clean Energy Regulator mentioned in section 162 of the
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.10A
52 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Carbon Credits (Carbon Farming Initiative) Act 2011;
and
(ii) inform the client that the client should consider each
statement mentioned in section 162 of that Act before
making any decision about whether to acquire the
financial product; and
(e) if the advice relates to the acquisition, or possible acquisition,
of an eligible international emissions unit, the providing
entity must:
(i) provide the client with the address of the website of the
Clean Energy Regulator mentioned in section 61 of the
Australian National Registry of Emissions Units Act
2011; and
(ii) inform the client that the client should consider each
statement mentioned in section 61 of the Australian
National Registry of Emissions Units Act 2011 before
making any decision about whether to acquire the
financial product.”.
7.7.10A Statements of Advice—requirement to state information as
amounts in dollars
(1) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if paragraph 947B(2)(h) of the Act were modified to read as
follows:
‘(h) unless in accordance with the regulations and a
determination by ASIC, information to be disclosed in
accordance with paragraph (d) and subparagraph (e)(i)
must be stated as amounts in dollars.’.
(2) For paragraph 951C(1)(a) of the Act, a providing entity does not
have to provide the information mentioned in
paragraph 947B(2)(h) of the Act, in the form required by that
paragraph, in a Statement of Advice prepared before 1 January
2005.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.10B
Corporations Regulations 2001 53
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if paragraph 947C(2)(i) of the Act were modified to read as
follows:
‘(i) unless in accordance with the regulations and a
determination by ASIC, information to be disclosed in
accordance with paragraph (e) and subparagraph (f)(i)
must be stated as amounts in dollars.’.
(4) For paragraph 951C(1)(a) of the Act, a providing entity does not
have to provide the information mentioned in paragraph 947C(2)(i)
of the Act, in the form required by that paragraph, in a Statement
of Advice prepared before 1 January 2005.
(5) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if paragraph 947D(2)(d) of the Act were modified to read as
follows:
‘(d) unless in accordance with the regulations and a
determination by ASIC, information to be disclosed in
accordance with paragraph (a) must be stated as
amounts in dollars.’.
(6) For paragraph 951C(1)(a) of the Act, a providing entity does not
have to provide the information mentioned in
paragraph 947D(2)(d) of the Act, in the form required by that
paragraph, in a Statement of Advice prepared before 1 January
2005.
7.7.10B Insertion of definition—further advice
For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if the following definition were inserted in section 761A:
“further advice means advice to which subsection 946B(2) or (2A)
applies.”
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.10C
54 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7.10C Omission of definition—further market-related advice
For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if the definition of “further market-related advice” were omitted
from section 761A.
7.7.10D Additional information in Statement of Advice
For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if subsection 947D(2) of the Act were modified by omitting
“Statement of Advice” and substituting “Statement of Advice or
the record of advice under subsection 946B(3A), as the case
requires,”.
7.7.10E Additional information in Statement of Advice
For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as
if subsection 947D(3) of the Act were modified by omitting
“Statement of Advice” and substituting “Statement of Advice or
the record of advice under subsection 946B(3A), as the case
requires”.
7.7.11 Statement of Advice given by financial services licensee
(1) For paragraph 947B(2)(g) of the Act, a Statement of Advice given
by a financial services licensee must include information about all
remuneration (including commission) and other benefits that a
person (person 1) has received, or is to receive, for referring
another person to the financial services licensee.
(2) For paragraph 947B(2)(h) of the Act, if ASIC determines that, for a
compelling reason, it is not possible to state information to be
disclosed in accordance with paragraph 947B(2)(d) or
subparagraph 947B(2)(e)(i) as an amount in dollars, the
information may be set out as a description of the amount as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
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Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.11A
Corporations Regulations 2001 55
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) For paragraph 947B(2)(h) of the Act, if ASIC determines that, for a
compelling reason, it is not possible to state information to be
disclosed in accordance with paragraph 947B(2)(d) or
subparagraph 947B(2)(e)(i) as an amount in dollars, or to describe
the amount as a percentage, the information may be set out as a
description of the method of calculating the remuneration, benefits
or interests (including worked dollar examples, unless that is
inappropriate).
(4) A determination under subregulation (2) or (3) must be:
(a) in writing; and
(b) published in the Gazette.
(5) The statements and descriptions must be presented in a manner that
is easy for the client to understand.
7.7.11A Statement of Advice given by authorised representative of
financial services licensee—licence number
For paragraph 947C(2)(h) of the Act, a providing entity that is an
authorised representative of a financial services licensee must
include the licensee’s licence number in a Statement of Advice
given to a client.
7.7.11B Statement of Advice—disclosure of dollar amounts
(1) For paragraph 947B(2)(h) of the Act, if ASIC determines that, for a
compelling reason based on the nature of a financial product or
service, or the nature of the information, to state the information as
an amount in dollars:
(a) would impose an unreasonable burden on a providing entity,
or a class of providing entities; or
(b) would impose an unreasonable burden on a providing entity,
or a class of providing entities, within a period specified in
the determination; or
(c) would not be in the interests of a client, or a class of clients;
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.12
56 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
the information may be set out as a description of the amount as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(2) For paragraph 947B(2)(h) of the Act, if ASIC determines that, for a
compelling reason, based on the nature of a financial product or
service, or the nature of the information, to state the information as
an amount in dollars, or to describe the amount as a percentage:
(a) would impose an unreasonable burden on a providing entity,
or a class of providing entities; or
(b) would impose an unreasonable burden on a providing entity,
or a class of providing entities, within a period specified in
the determination; or
(c) would not be in the interests of a client, or a class of clients;
the information may be set out as a description of the method of
calculating the remuneration, benefits or interests (including
worked dollar examples, unless that is inappropriate).
(3) A determination under subregulation (1) or (2) must be:
(a) in writing; and
(b) published in the Gazette.
7.7.12 Statement of Advice given by authorised representative of
financial services licensee
(1) For paragraph 947C(2)(h) of the Act, a Statement of Advice given
by an authorised representative of a financial services licensee
must include information about all remuneration (including
commission) and other benefits that a person (person 1) has
received, or is to receive, for referring another person to the
authorised representative or the financial services licensee.
(2) For paragraph 947C(2)(i) of the Act, if ASIC determines that, for a
compelling reason, it is not possible to state information to be
disclosed in accordance with paragraph 947C(2)(e) or
subparagraph 947C(2)(f)(i) as an amount in dollars, the
information may be set out as a description of the amount as a
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Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.13
Corporations Regulations 2001 57
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percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(3) For paragraph 947C(2)(i) of the Act, if ASIC determines that, for a
compelling reason, it is not possible to state information to be
disclosed in accordance with paragraph 947C(2)(e) or
subparagraph 947C(2)(f)(i) as an amount in dollars, or to describe
the amount as a percentage, the information may be set out as a
description of the method of calculating the remuneration, benefits
or interests (including worked dollar examples, unless that is
inappropriate).
(4) A determination under subregulation (1) or (2) must be:
(a) in writing; and
(b) published in the Gazette.
(5) The statements and descriptions must be presented in a manner that
is easy for the client to understand.
7.7.13 Statement of Advice provided by authorised representative—
disclosure of dollar amounts
(1) For paragraph 947C(2)(i) of the Act, if ASIC determines that, for a
compelling reason based on the nature of a financial product or
service, or the nature of the information, to state the information as
an amount in dollars:
(a) would impose an unreasonable burden on a providing entity,
or a class of providing entities; or
(b) would impose an unreasonable burden on a providing entity,
or a class of providing entities, within a period specified in
the determination; or
(c) would not be in the interests of a client, or a class of clients;
the information may be set out as a description of the amount as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(2) For paragraph 947C(2)(i) of the Act, if ASIC determines that, for a
compelling reason, based on the nature of a financial product or
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Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.13A
58 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
service, or the nature of the information, to state the information as
an amount in dollars, or to describe the amount as a percentage:
(a) would impose an unreasonable burden on a providing entity,
or a class of providing entities; or
(b) would impose an unreasonable burden on a providing entity,
or a class of providing entities, within a period specified in
the determination; or
(c) would not be in the interests of a client, or a class of clients;
the information may be set out as a description of the method of
calculating the remuneration, benefits or interests (including
worked dollar examples, unless that is inappropriate).
(3) A determination under subregulation (1) or (2) must be:
(a) in writing; and
(b) published in the Gazette.
7.7.13A Additional information about charges or benefits—
disclosure of dollar amounts
(1) For paragraph 947D(2)(d) of the Act, if ASIC determines that, for
a compelling reason, it is not possible to state information to be
disclosed in accordance with paragraph 947D(2)(a) as an amount
in dollars, the information may be set out as a description of the
amount as a percentage of a specified matter (including worked
dollar examples, unless that is inappropriate).
(2) For paragraph 947D(2)(d) of the Act, if ASIC determines that, for
a compelling reason, it is not possible to state information to be
disclosed in accordance with paragraph 947D(2)(a) as an amount
in dollars, or to describe the amount as a percentage, the
information may be set out as a description of the method of
calculating the charge or benefit (including worked dollar
examples, unless that is inappropriate).
(3) A determination under subregulation (1) or (2) must be:
(a) in writing; and
(b) published in the Gazette.
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Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Statement of Advice Division 3
Regulation 7.7.13B
Corporations Regulations 2001 59
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7.13B Additional information about charges or benefits—
disclosure of dollar amounts
(1) For paragraph 947D(2)(d) of the Act, if ASIC determines that, for
a compelling reason based on the nature of a financial product or
service, or the nature of the information, to state the information as
an amount in dollars:
(a) would impose an unreasonable burden on a providing entity,
or a class of providing entities; or
(b) would impose an unreasonable burden on a providing entity,
or a class of providing entities, within a period specified in
the determination; or
(c) would not be in the interests of a client, or a class of clients;
the information may be set out as a description of the amount as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(2) For paragraph 947D(2)(d) of the Act, if ASIC determines that, for
a compelling reason, based on the nature of a financial product or
service, or the nature of the information, to state the information as
an amount in dollars, or to describe the amount as a percentage:
(a) would impose an unreasonable burden on a providing entity,
or a class of providing entities; or
(b) would impose an unreasonable burden on a providing entity,
or a class of providing entities, within a period specified in
the determination; or
(c) would not be in the interests of a client, or a class of clients;
the information may be set out as a description of the method of
calculating the charge or benefit (including worked dollar
examples, unless that is inappropriate).
(3) A determination under subregulation (1) or (2) must be:
(a) in writing; and
(b) published in the Gazette.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 4 General advice provided to a retail client
Regulation 7.7.14
60 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4—General advice provided to a retail client
7.7.14 Product Disclosure Statement not required
For paragraph 926B(1)(a) of the Act, a providing entity that is
giving general advice in relation to a financial product for which,
under Part 7.9 of the Act, a Product Disclosure Statement is not
required, does not have to give the warning in
paragraph 949A(2)(c) of the Act.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Other disclosure requirements Division 5
Regulation 7.7.20
Corporations Regulations 2001 61
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Division 5—Other disclosure requirements
7.7.20 General advice to retail client—no obligation to warn client
For paragraph 949A(1)(c) of the Act, the provision of general
advice in the circumstances set out in subregulation 7.7.02(5A) is
specified.
7.7.20A Extension of disclosure requirements to wholesale clients
dealing with certain unauthorised insurers
(1) For paragraph 949B(1)(e) of the Act, a person must give a
wholesale client the information set out in subregulation (3) for a
financial service provided by that person to the wholesale client if:
(a) the service relates to an insurance contract specified in
regulation 4C or 4D of the Insurance Regulations 2002 that
may be offered or issued by an unauthorised foreign insurer
(within the meaning of those Regulations) (the insurer); and
(b) either:
(i) the person would be required to give a Statement of
Advice if the service were provided to a retail client; or
(ii) the contract is offered or issued to the wholesale client.
Note: Failure to comply with this subregulation is an offence punishable by
a fine of up to 50 penalty units or imprisonment for 1 year, or both—
see section 1311 and item 272A of Schedule 3 to the Corporations Act
2001.
(2) For paragraph 949B(1)(e) of the Act, a person must give a
wholesale client the information set out in subregulation (3) for a
financial service provided by that person to the wholesale client if:
(a) the service relates to the wholesale client dealing with an
entity (the insurer) specified in regulation 12 of the
Insurance Regulations 2002; and
(b) either:
(i) the person would be required to give a Statement of
Advice if the service were provided to a retail client; or
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Chapter 7 Financial services and markets
Part 7.7 Financial service disclosure
Division 5 Other disclosure requirements
Regulation 7.7.20A
62 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) the insurer offers or issues a financial product to the
wholesale client.
Note: Failure to comply with this subregulation is an offence punishable by
a fine of up to 50 penalty units or imprisonment for 1 year, or both—
see section 1311 and item 272A of Schedule 3 to the Corporations Act
2001.
(3) The information is:
(a) a statement that the insurer is not authorised under the
Insurance Act 1973 to conduct insurance business in
Australia; and
(b) a statement that the insurer is not subject to the provisions of
the Insurance Act 1973, which establishes a system of
financial supervision of general insurers in Australia; and
(c) a statement that the wholesale client should consider whether
to obtain further information, including:
(i) the country in which the insurer is incorporated, and
whether the country has a system of financial
supervision of insurers; and
(ii) the paid up capital of the insurer; and
(iii) which country’s laws will determine disputes in relation
to the financial product; and
(d) a statement that the insurer cannot be a declared general
insurer for the purpose of Part VC of the Insurance Act 1973,
and, if the insurer becomes insolvent, the wholesale client
will not be covered by the financial claims scheme provided
under Part VC of that Act.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial service disclosure Part 7.7
Exemptions from application of Part 7.7 of the Act Division 6
Regulation 7.7.21
Corporations Regulations 2001 63
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 6—Exemptions from application of Part 7.7 of the
Act
7.7.21 Exemption from application of Part 7.7 of the Act
For paragraph 951C(1)(a) of the Act, Part 7.7 of the Act does not
apply to a financial services licensee or an authorised
representative in respect of financial services provided to retail
clients who are not in this jurisdiction.
Note: Regulation 7.9.98 also contains exemptions from the operation of
Part 7.7 of the Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 2 Best interests obligations
Regulation 7.7A.1
64 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 7.7A—Best interests obligations and
remuneration Note: Regulations 7.7A.01 to 7.7A.09 are reserved for future use.
Division 2—Best interests obligations
Subdivision 1—Duty to act in client’s best interests
7.7A.1 Duty if advising on combination of products
(1) This regulation:
(a) is made for paragraph 961B(5)(b) of the Act; and
(b) prescribes the circumstances in which a provider is not
required to prove he or she has taken the steps mentioned in
paragraphs 961B(2)(d) to (g) of the Act to satisfy the duty to
act in the best interests of the client, in relation to advice
about the following products:
(i) a basic banking product;
(ii) a general insurance product.
(2) A provider is not required to prove it has taken those steps if:
(a) the provider is:
(i) an agent or an employee of an Australian ADI; or
(ii) otherwise acting by arrangement with an Australian
ADI under the name of the Australian ADI; and
(b) any personal advice that is provided relates only to:
(i) a basic banking product; or
(ii) a general insurance product; or
(iii) a combination of those products.
Note: The definition of personal advice is in subsection 766B(3) of the Act.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Best interests obligations Division 2
Regulation 7.7A.1
Corporations Regulations 2001 65
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) A provider is not required to prove the provider has taken those
steps in relation to advice about a general insurance product, even
if the provider, at the same time, provides other advice (whether or
not personal advice).
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 3 Charging ongoing fees to clients
Regulation 7.7A.10
66 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 3—Charging ongoing fees to clients
7.7A.10 Arrangements that are not ongoing fee arrangements
(1) This regulation is made for subsection 962A(5) of the Act.
(2) An arrangement of a kind mentioned in subsection 962A(1) or (2)
of the Act is not an ongoing fee arrangement to the extent that the
arrangement relates to a product fee mentioned in
subregulation (3).
(3) Each of the following is a product fee:
(a) a fee for the administration, management or operation of a
financial product that is charged to a retail client to which the
product is issued by the issuer of the product;
Example 1: A monthly account keeping fee charged by the provider of a basic
deposit product.
Example 2: A monthly administration or investment fee charged by a trustee of a
superannuation fund or a responsible entity of a managed investment
scheme.
(b) a fee that:
(i) is a cost of providing financial product advice; and
(ii) under section 99F of the Superannuation Industry
(Supervision) Act 1993, is not prohibited or prevented
from being passed on to a member of a regulated
superannuation fund.
7.7A.11 Fee disclosure statements: product fee
(1) This regulation is made for paragraph 962H(3)(a) of the Act.
(2) Information about a product fee mentioned in
subregulation 7.7A.10(3) is not required by subsection 962H(2) of
the Act.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Conflicted remuneration Division 4
Regulation 7.7A.12
Corporations Regulations 2001 67
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4—Conflicted remuneration
Subdivision 1—Monetary benefits
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: The definition of financial product advice is in subsection 766B(1) of
the Act.
7.7A.12A Life risk insurance products
A monetary benefit is not conflicted remuneration if the benefit is
given in relation to a life risk insurance product, other than:
(a) a group life policy for members of a superannuation entity; or
(b) a life policy for a member of a default superannuation fund.
Note 1: The definitions of group life policy for members of a superannuation
entity and life policy for a member of a default superannuation fund
are in section 963B of the Act.
Note 2: If a benefit is given in relation to a financial product that consists of
both general insurance and life risk insurance, the benefit is to be
treated as relating to a general insurance product and a life risk
insurance product.
7.7A.12B Stamping fees
(1) A monetary benefit is not conflicted remuneration if it is a
stamping fee given to facilitate an approved capital raising.
(2) In this regulation:
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Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.12C
68 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
approved capital raising means:
(a) an offer to issue an approved financial product; or
(b) an offer to sell an approved financial product;
where the purpose of the offer is to raise funds for the person
issuing or selling the approved financial product.
approved financial product means:
(a) debentures, stocks or bonds that are, or are proposed to be,
issued by a government; or
(b) shares in, or debentures of, a body that are, or are proposed to
be, quoted on a prescribed financial market; or
(c) interests in a managed investment scheme that are, or are
proposed to be, quoted on a prescribed financial market; or
(d) a right to acquire, by way of issue, shares, debentures or
interests mentioned in paragraph (b) or (c).
stamping fee means a fee, or a part of a fee:
(a) that a person, including an issuer of a financial product, or a
person acting on behalf of the issuer, pays either directly or
indirectly to a provider in connection with:
(i) an offer by the issuer to issue the financial product; or
(ii) an invitation by the issuer for an application to issue the
financial product; or
(b) that a person, including a holder of a financial product, or
person acting on behalf of the holder, pays either directly or
indirectly to a provider in connection with:
(i) an offer by the holder to sell the financial product; or
(ii) an invitation by the holder for an application to sell the
financial product.
7.7A.12C Time-sharing schemes
A monetary benefit is not conflicted remuneration if the benefit is
given for advice that relates to an interest in a time-sharing scheme.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Conflicted remuneration Division 4
Regulation 7.7A.12D
Corporations Regulations 2001 69
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7A.12D Brokerage fees
(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.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.12D
70 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
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
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Conflicted remuneration Division 4
Regulation 7.7A.12E
Corporations Regulations 2001 71
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
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.
7.7A.12E Fees paid by clients for dealing services
A monetary benefit is not conflicted remuneration if the benefit is
given to the provider by a retail client in relation to the provider
dealing in a financial product on behalf of the client.
7.7A.12EA Application of ban on conflicted remuneration—
purchase or sale of financial advice business
A monetary benefit is not conflicted remuneration to the extent
that:
(a) the benefit is given to a financial services licensee or a
representative of the licensee; and
(b) the benefit is paid as part of:
(i) the purchase or sale of all or part of the licensee’s
financial advice business; or
(ii) the purchase or sale of all or part of the representative’s
financial advice business; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.12F
72 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) the price is calculated using a formula:
(i) which is based, in whole or in part, on the number or
value of all or part of the financial products held by the
licensee’s clients or the representative’s clients; and
(ii) in which the weighting attributed to the financial
products issued by the licensee or a related body
corporate or other person is the same as the weighting
attributed to other similar financial products.
Subdivision 2—Monetary or non-monetary benefits
7.7A.12F What subdivision is about
This subdivision:
(a) is made for paragraphs 963B(1)(e) and 963C(f) of the Act;
and
(b) prescribes the circumstances in which a monetary or
non-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: The definition of financial product advice is in subsection 766B(1) of
the Act.
7.7A.12G General insurance
A benefit is not conflicted remuneration if the benefit is given in
relation to a general insurance product.
Note: If a benefit is given in relation to a financial product that consists of
both general insurance and life risk insurance, the benefit is to be
treated as relating to a general insurance product and a life risk
insurance product.
7.7A.12H Basic banking and general insurance products
A benefit is not conflicted remuneration if:
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(a) to the extent that the benefit is given in relation to financial
product advice, the benefit only relates to the following
financial products:
(i) a basic banking product;
(ii) a general insurance product;
(iii) a combination of those financial products; and
(b) the provider does not, at the same time, provide advice about
any other financial products; and
(c) the provider is:
(i) an agent or an employee of an Australian ADI; or
(ii) otherwise acting by arrangement with an Australian
ADI under the name of the Australian ADI.
7.7A.12I Mixed benefits
(1) A benefit that is given in one or more of the circumstances set out
in the prescribed provisions is not conflicted remuneration even if:
(a) the benefit also relates to other activities, but only to the
extent that the part of the benefit that relates to the other
activities is not conflicted remuneration; or
(b) the provider, at the same time, provides other services
(whether or not financial services).
(2) However, subregulation (1) does not apply to the extent that the
prescribed provisions under which the benefit is given provide that:
(a) the benefit may only relate to particular financial products or
services; or
(b) the provider must not receive the benefit if the provider is, at
the same time, providing other specified financial services.
(3) In this regulation:
prescribed provision means:
(a) paragraph 963B(1)(a), (b), (c) or (d) of the Act, or a
regulation made under paragraph 963B(1)(e) of the Act; or
(b) paragraph 963C(a), (b), (c), (d) or (e) of the Act, or a
regulation made under paragraph 963C(f) of the Act.
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Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.13
74 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7A.13 Non-monetary benefit given in certain circumstances not
conflicted remuneration: prescribed amount
For subparagraph 963C(b)(i) of the Act, the amount is $300 for
each financial services licensee, or each representative of a
financial services licensee, who is the final recipient of a
non-monetary benefit.
Note: Under paragraph 963C(b) of the Act, if a non-monetary benefit is
given to a financial services licensee, or a representative of a financial
services licensee, who provides financial advice, is less than the
prescribed amount and identical or similar benefits are not given on a
frequent or regular basis, the benefit is not conflicted remuneration.
7.7A.14 Non-monetary benefit given in certain circumstances not
conflicted remuneration: education or training course
(1) This regulation is made for subparagraph 963C(c)(iii) of the Act.
(2) This regulation sets out requirements if a non-monetary benefit to
which subparagraphs 963C(c)(i) and (ii) of the Act apply is the
provision of an education or training course to a financial services
licensee, or a representative of a financial services licensee.
Note: Under paragraph 963C(c) of the Act, if certain non-monetary benefits
have a genuine education or training purpose, are relevant to the
provision of financial product advice to retail clients and comply with
the regulations, the benefits are not conflicted remuneration.
(3) Education or training activities for the professional development of
the participants in the course must take up at least:
(a) 75% of the time spent on the course; or
(b) 6 hours a day;
whichever is the lesser.
(4) The participant, or the participant’s employer or licensee, must pay
for the costs of:
(a) travel and accommodation relating to the course; and
(b) events and functions held in conjunction with the course.
Example: The cost of day trips or dinners.
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Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Conflicted remuneration Division 4
Regulation 7.7A.15
Corporations Regulations 2001 75
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(5) In this regulation:
education or training course includes a conference or seminar.
7.7A.15 Non-monetary benefit given in certain circumstances not
conflicted remuneration: other education and training
benefit
(1) This regulation is made for subparagraph 963C(c)(iii) of the Act.
(2) This regulation sets out a requirement if a non-monetary benefit to
which subparagraphs 963C(c)(i) and (ii) of the Act apply is not the
provision of an education or training course to which
regulation 7.7A.13 applies.
Note: Under paragraph 963C(c) of the Act, if certain non-monetary benefits
have a genuine education or training purpose, are relevant to the
provision of financial product advice to retail clients and comply with
the regulations, the benefits are not conflicted remuneration.
(3) The dominant purpose of the non-monetary benefit must be
education and training.
7.7A.15A Non-monetary benefit given in certain circumstances not
conflicted remuneration—education and training in
conducting a financial services business
(1) This regulation:
(a) is made for paragraph 963C(f) of the Act; and
(b) prescribes the circumstances in which a non-monetary benefit
given to a financial services licensee, or representative of a
financial services licensee, who provides financial product
advice to persons as retail clients is not conflicted
remuneration.
Note: For financial product advice, see subsection 766B(1) of the Act.
(2) The benefit is not conflicted remuneration if the benefit:
(a) has a genuine education or training purpose; and
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Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.15B
76 Corporations Regulations 2001
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(b) is relevant to the carrying on of a financial services business;
and
(c) complies with regulations made for the purposes of
subparagraph 963C(c)(iii) of the Act.
7.7A.15B Application of ban on conflicted remuneration—
non-platform operator (Division 4 of Part 7.7A of
Chapter 7 of the Act does not apply)
(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 the Act does not apply to a benefit.
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 the benefit would have been given as
mentioned in subsection 1528(1) of the Act had it not been
redirected under one or more later arrangements.
(3) For subregulation (2), if a party to an arrangement changes, the
arrangement is taken to have continued in effect, after the change,
as the same arrangement.
7.7A.16 Application of ban on conflicted remuneration—platform
operator (Division 4 of Part 7.7A of Chapter 7 of the Act
does not apply)
(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 the Act does not apply to a benefit.
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
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Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Conflicted remuneration Division 4
Regulation 7.7A.16A
Corporations Regulations 2001 77
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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 platform operator; and
(b) either:
(i) 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; or
(ii) the benefit would have been given as mentioned in
subparagraph (i) had it not been redirected under one or
more later arrangements.
(3) For subregulation (2), if a party to an arrangement changes, the
arrangement is taken to have continued in effect, after the change,
as the same arrangement.
(4) If this regulation and regulation 7.7A.16A or 7.7A.16B are able to
apply in relation to the benefit, disregard this regulation.
7.7A.16A Application of ban on conflicted remuneration—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 circumstances in which Division 4 of Part 7.7A 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.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.16A
78 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) The circumstance is that:
(a) the benefit is given by a person acting in the capacity as 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) relates to an acquisition (including a regulated
acquisition, within the meaning of subsection 1012IA(1)
of the Act) of a financial product on the instructions of a
person who had not given an instruction to the person
acting in the capacity of a platform operator to open an
account on the platform before 1 July 2014; or
(ii) does not relate to a person who opened an account on
the platform before 1 July 2014.
(3) For 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.
(4) For subregulation (2), 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.
(5) For subregulation (2), if a party to an arrangement changes, the
arrangement is taken to have continued in effect, after the change,
as the same arrangement.
(6) If this regulation and regulation 7.7A.16 are able to apply in
relation to the benefit, disregard regulation 7.7A.16.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Conflicted remuneration Division 4
Regulation 7.7A.16B
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7.7A.16B 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) For 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
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Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.16B
80 Corporations Regulations 2001
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(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) if 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
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Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Conflicted remuneration Division 4
Regulation 7.7A.16BA
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(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.
7.7A.16BA Sale of business
The application of regulation 7.7A.16, 7.7A.16A or 7.7A.16B in
relation to a benefit is not affected only because the benefit, or the
right to the benefit, is transferred as part of the sale of a business,
or a part of a business.
Note: This means that the buyer of a business will have the same protection
for benefits that the seller of the business had.
7.7A.16C Application of ban on conflicted remuneration—employer
and employee (Division 4 of Part 7.7A of Chapter 7 of the
Act does not apply)
(1) This regulation:
(a) is made for subsection 1528(2) of the Act; and
(b) prescribes circumstances in which Division 4 of Part 7.7A of
Chapter 7 of the Act does not apply to a benefit.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.16C
82 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
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.
Remuneration arrangement relating to enterprise agreement or
collective agreement-based transitional instrument
(2) A circumstance is that:
(a) the benefit is paid under a remuneration arrangement
between an employer and an employee; and
(b) the benefit is paid in accordance with an enterprise agreement
(including its associated documents), or a collective
agreement-based transitional instrument (including its
associated documents), that was entered into before the
application day, within the meaning of subsection 1528(4) of
the Act.
When subregulation (2) ceases to apply
(3) If:
(a) an enterprise agreement referred to in paragraph (2)(b) was in
force immediately before the application day; and
(b) the nominal expiry date of the agreement had not passed
immediately before the application day;
the circumstance in subregulation (2) ceases to apply at the end of
18 months after the nominal expiry date of the agreement.
(4) If:
(a) an enterprise agreement referred to in paragraph (2)(b) was in
force immediately before the application day; and
(b) the nominal expiry date of the agreement passed before the
application day;
the circumstance in subregulation (2) ceases to apply on 1 July
2015.
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Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Conflicted remuneration Division 4
Regulation 7.7A.16D
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Remuneration arrangement not relating to enterprise agreement or
collective agreement-based transitional instrument
(5) A circumstance is that:
(a) the benefit is paid under a remuneration arrangement
between an employer and an employee; and
(b) the benefit is not paid in accordance with an enterprise
agreement (including its associated documents) or a
collective agreement-based transitional instrument (including
its associated documents); and
(c) the benefit is payable in relation to a period that ends before
1 July 2015.
Definitions
(6) In this regulation:
collective agreement-based transitional instrument has the
meaning given by subitem 2(5) of Schedule 3 to the Fair Work
(Transitional Provisions and Consequential Amendments) Act
2009.
enterprise agreement has the same meaning as in the Fair Work
Act 2009.
7.7A.16D Application of ban on conflicted remuneration—new
arrangement entered into on or after application day
(Division 4 of Part 7.7A of Chapter 7 of the Act does not
apply)
(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 the Act does not apply to a benefit.
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
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Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.16E
84 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
prescribe circumstances in which that Division applies, or does not
apply, to a benefit.
(2) The circumstance is that:
(a) the benefit is paid under an arrangement (the new
arrangement) that was entered into on or after the
application day, within the meaning of subsection 1528(4) of
the Act; and
(b) the new arrangement is on the same terms as an arrangement
(the previous arrangement) that was in place immediately
before the application day, except that the new arrangement
does not provide for the giving of remuneration that would
not be permissible under section 1528 of the Act or
regulations made for that section; and
(c) the previous arrangement was terminated as a result of the
application of Division 4 of Part 7.7A of Chapter 7 of the
Act.
7.7A.16E Application of ban on conflicted remuneration—change of
party to an arrangement (Division 4 of Part 7.7A of
Chapter 7 of the Act does not apply)
(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 the Act does not apply to a benefit.
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 under an arrangement that was entered
into before the application day, within the meaning of
subsection 1528(4) of the Act; and
(b) a party to the arrangement changes.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Conflicted remuneration Division 4
Regulation 7.7A.16F
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7.7A.16F Application of ban on conflicted remuneration—benefit is
a pass through of a grandfathered benefit (benefit is not
conflicted remuneration)
A benefit is not conflicted remuneration to the extent that:
(a) the benefit is a pass through of a benefit (a grandfathered
benefit) to which Division 4 of Part 7.7A of Chapter 7 of the
Act does not apply because of subsection 1528(1) or (3) of
the Act or a regulation made for subsection 1528(2) of the
Act; and
(b) the benefit, as passed through, was given under an
arrangement:
(i) that was entered into before the application day, within
the meaning of subsection 1528(4) of the Act; or
(ii) by which an authorised representative of a financial
services licensee became an authorised representative of
another financial services licensee; or
(iii) by which a representative of a financial services
licensee, or an employee of an authorised representative
of a financial services licensee, became an authorised
representative of the licensee or a related body corporate
of the licensee; and
(c) the benefit, as passed through, is consistent with purposes of
the arrangement under which the grandfathered benefit was
paid; and
(d) the total amount of the benefit, as passed through, does not
exceed 100 per cent of the grandfathered benefit.
Subdivision 3—Asset-based fees on borrowed amounts
7.7A.17 Financial services licensees
For subsection 964D(4) of the Act, a circumstance in which
subsections 964D(1) and (2) of the Act do not apply is that the
asset-based fee being charged is a brokerage fee within the
meaning of regulation 7.7A.12D.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.18
86 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.7A.18 Authorised representatives
For subsection 964E(3) of the Act, a circumstance in which
subsection 964E(1) of the Act does not apply is that the asset-based
fee being charged is a brokerage fee within the meaning of
regulation 7.7A.12D.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Best interests obligations and remuneration Part 7.7A
Exemptions from application of Part 7.7A of the Act Division 6
Regulation 7.7A.40
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Division 6—Exemptions from application of Part 7.7A of
the Act
7.7A.40 Exemption from application of Part 7.7A of the Act
For paragraph 1368(d) of the Act, Part 7.7A of the Act does not
have effect in relation to a financial services licensee or an
authorised representative in respect of financial services provided
to retail clients who are not in this jurisdiction.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.8 Other provisions relating to conduct etc connected with financial products and
financial services, other than financial product disclosure
Regulation 7.8.01
88 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 7.8—Other provisions relating to conduct etc
connected with financial products and
financial services, other than financial
product disclosure
7.8.01 Obligation to pay money into an account
(1) For subparagraph 981B(1)(a)(i) of the Act, the reference in that
subparagraph to an account with an Australian ADI does not
prevent a financial services licensee that is an ADI from paying
money into an account held by itself.
(2) For subparagraph 981B(1)(a)(ii) of the Act, the following accounts
are prescribed:
(a) an account with an approved foreign bank;
(b) a cash management trust.
(3) For subparagraph 981B(1)(b)(iv) of the Act, if, in accordance with
an agreement mentioned in paragraph 7.8.02(3)(a), a financial
services licensee is required to pay an amount mentioned in
subparagraph 7.8.02(3)(a)(iv), that amount is money which must
be paid into an account to which that subparagraph applies.
(4) For subparagraph 981B(1)(b)(iv) of the Act:
(a) money paid to a financial services licensee:
(i) from or on behalf or an insured or intending insured for
or on account of an insurer; and
(ii) in connection with a contract of insurance or proposed
contract of insurance;
is money which may be paid into an account to which that
subparagraph applies; and
(b) money paid to a financial services licensee from or on behalf
of an insurer for or on account of an insured or intending
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Other provisions relating to conduct etc connected with financial products and financial
services, other than financial product disclosure Part 7.8
Regulation 7.8.01
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insured is money which may be paid into an account to
which that subparagraph applies.
(4A) For subparagraph 981B(1)(b)(iv) of the Act, if a financial services
licensee is required, by the market integrity rules or the operating
rules of a licensed market, to pay an amount into an account to
which section 981B relates, the amount is money which may be
paid into that account.
(5) For paragraph 981B(1)(c) of the Act, a financial services licensee
must:
(a) operate an account to which that paragraph applies as a trust
account; and
(b) designate the account to be a trust account; and
(c) hold all moneys paid into the account (other than moneys
paid to the financial services licensee under the financial
services licensee’s obligation to call margins from clients
under the market integrity rules, the operating rules of a
licensed market or the operating rules of a licensed CS
facility) on trust for the benefit of the person who is entitled
to the moneys.
(6) For subparagraph 981B(1)(b)(iv) of the Act, money received under
section 1017E of the Act is money which may be paid into:
(a) an account to which section 981B relates; or
(b) an insurance broking account maintained under section 26 of
the Insurance (Agents and Brokers) Act 1984.
(7) For paragraph 981B(1)(c) of the Act, if money received under
section 1017E of the Act is paid into an account under
subregulation (6), Part 7.8 of the Act applies to the money.
Note: See also subregulation 7.9.08(3).
(8) For paragraph 981B(1)(c) of the Act, if a financial services
licensee is required to call margins from a client under the market
integrity rules, the operating rules of a licensed market or the
operating rules of a licensed CS facility:
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(a) the financial services licensee may operate an account to
which that paragraph applies as:
(i) a clients’ segregated account; or
(ii) a trust account;
in accordance with the operating rules or market integrity
rules; and
(b) if:
(i) the account is operated outside Australia; and
(ii) the law in force in the jurisdiction where it is maintained
requires the account to be designated in a particular
way;
the financial services licensee must designate the account in
that way.
Note: The operating rules or market integrity rules may require client
moneys, including moneys used for margining, to be held in either a
clients’ segregated account or a trust account.
(9) For subparagraph 981B(1)(b)(iv) of the Act, if an account is
operated in accordance with subregulation (8), all money received
by the financial services licensee under Subdivision A of
Division 2 of Part 7.8 of the Act is money that may be paid into
that account.
(10) Subregulation (8) does not affect the operation of section 981E of
the Act.
(11) For subparagraph 981B(1)(b)(iv) of the Act, each of the following
is money that may be paid into an account:
(a) mixed money;
(b) unidentified money.
(12) For paragraph 981B(1)(c) of the Act, if mixed money is paid into
an account under subregulation (11), the licensee must, as soon as
practicable, but within 1 month after the mixed money is paid into
the account, remove from the account the part of the money that is
not section 981B money.
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(13) For paragraph 981B(1)(c) of the Act, if unidentified money is paid
into an account under subregulation (11), the licensee must, as
soon as practicable after the unidentified money is paid into the
account:
(a) identify any part of the money that is section 981B money;
and
(b) remove from the account any part of the money that is not
section 981B money.
(14) For subregulations (11) to (13):
mixed money means money that:
(a) is received by the licensee as a single payment; and
(b) is not wholly section 981B money, but includes section 981B
money.
section 981B money means:
(a) money to which Subdivision A of Division 2 of Part 7.8 of
the Act applies; or
(b) money that is allowed to remain in the account because of the
operation of subparagraphs 981B(1)(b)(ii) and (iii) of the
Act; or
(c) money mentioned in subregulation (4).
unidentified money means money that:
(a) is received by the licensee as a single payment; and
(b) at the time of receipt, is unable to be identified as
section 981B money or mixed money; and
(c) might include section 981B money.
7.8.02 Accounts maintained for section 981B of the Act
Withdrawals from account
(1) For paragraph 981C(a) of the Act, payments may be made out of
an account maintained for section 981B of the Act in any of the
following circumstances:
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(a) making a payment to, or in accordance with the written
direction of, a person entitled to the money;
(b) defraying brokerage and other proper charges;
(c) paying to the financial services licensee money to which the
financial services licensee is entitled;
(d) making a payment of moneys due to an insurer in connection
with a contract of insurance;
(e) making a payment that is otherwise authorised by law;
(f) paying to the financial services licensee money to which the
financial services licensee is entitled pursuant to the market
integrity rules or the operating rules of a licensed market.
(1A) For paragraph 981C(a) and subparagraph 981B(1)(b)(iv) of the
Act, if, under paragraph (1)(a), a financial services licensee (the
paying licensee) withdraws money from an account maintained for
section 981B of the Act and pays it to another financial services
licensee (the receiving licensee):
(a) the paying licensee must ensure that the receiving licensee is
notified, at the same time as the payment is made or as soon
as practicable, that the money:
(i) has been withdrawn from an account of the paying
licensee maintained for section 981B of the Act; and
(ii) should be paid into an account of the receiving licensee
maintained for section 981B of the Act; and
(b) not later than the day after the receiving licensee receives the
payment, the receiving licensee must pay the money into an
account of the receiving licensee maintained for section 981B
of the Act.
Permissible investments
(2) For paragraph 981C(a) of the Act, and subject to subregulations
(3), (4) and (5), the following kinds of investment may be made in
relation to an account maintained for section 981B of the Act:
(a) investment in any manner in which trustees are for the time
being authorised by law to invest trust funds;
(b) investment on deposit with an eligible money market dealer;
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(c) investment on deposit at interest with an Australian ADI;
(d) the acquisition of cash management trust interests;
(e) investment in a security issued or guaranteed by the
Commonwealth or a State or Territory;
(f) investment on deposit with a licensed CS facility.
(3) A financial services licensee must not invest an amount in a way
permitted by subregulation (2) unless:
(a) the financial services licensee has obtained the client’s
written agreement to the following matters:
(i) the making of the investment;
(ii) how earnings on the investment are to be dealt with
(including whether or not the earnings are to be shared,
and whether or not the earnings are to be paid into the
account);
(iii) how the realisation of the investment is to be dealt with
(including whether or not the capital invested, and the
proceeds of the investment, are to be deposited into the
account);
(iv) how any losses made on the investment are to be dealt
with (including the circumstances in which the financial
services licensee is required to pay an amount equal to
the difference between the amount invested and the
amount received, into the account or otherwise);
(v) the fee (if any) that the financial services licensee
proposes to charge for the investment; and
(b) the money is money to which the client is entitled.
Note: The investment arrangement may be a managed investment scheme.
(4) For paragraph 981A(4)(a) of the Act, subregulation (3) does not
apply to money to which subregulation 7.8.01(4) applies.
(5) In subregulation (2):
investment does not include the making of an investment in
accordance with the specific direction of a client.
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Regulation 7.8.02
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Note: Paragraph (1)(a) deals with the withdrawal of money from an account
in accordance with the written direction of a person entitled to the
money.
(6) For paragraph 981C(b) of the Act, in relation to moneys received
in relation to insurance products, the financial services licensee
must ensure that:
(a) the balance of moneys in an account maintained by the
financial services licensee under section 981B of the Act; and
(b) the total amount previously withdrawn from the account and
currently invested under subregulation (2);
is at least the sum of:
(c) any amounts that an insurer is entitled to receive from the
account; and
(d) any amounts that an insured or intending insured is entitled to
receive from the account.
(6A) For paragraph (6)(c), if, at a particular time, money received by a
financial services licensee for or on account of an insurer as
mentioned in paragraph 7.8.01(4)(a) is paid into the account, the
insurer is taken to be entitled to receive payment of:
(a) the amount; or
(b) if any deductions from the amount are authorised by a written
agreement between the insurer and the broker—the amount
less the deductions;
throughout the period:
(c) beginning at that time; and
(d) ending when the payment is actually made to the insurer;
whether or not the amount has been invested under
subregulation (2).
(6B) For paragraph (6)(d), if, at a particular time, money received by a
financial services licensee for or on account of an insured or
intending insured as mentioned in paragraph 7.8.01(4)(b) is paid
into an account, the insured or intending insured is taken to be
entitled to receive payment of the amount throughout the period:
(a) beginning at that time; and
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(b) ending when the payment is actually made to the insured or
intending insured;
whether or not the amount has been invested under
subregulation (2).
(6C) On application by a financial services licensee in the prescribed
form, ASIC may consent in writing to the minimum balance of
monies received in relation to insurance products being less than
the level specified in subregulation (6).
(7) For paragraph 981C(c) of the Act, if money is held in an account
maintained for section 981B of the Act:
(a) the financial services licensee is entitled to the interest on the
account; and
(b) the interest on the account is not required to be paid into the
account;
only if the financial services licensee discloses to the client that the
financial services licensee is keeping the interest (if any) earned on
the account.
Interest and other earnings on investments
(8) For paragraph 981C(d) of the Act, interest or other earnings on:
(a) an investment of money withdrawn from an account
maintained for section 981B of the Act; or
(b) the proceeds of the realisation of such an investment;
must be dealt with in accordance with the written agreement
between the financial services licensee and the client under
subregulation (3).
7.8.03 How money to be dealt with if licensee ceases to be licensed etc
(1) For paragraph 981F(a) of the Act, this regulation applies if a
financial services licensee ceases to be licensed (including a
cessation because the financial services licensee’s licence has been
suspended or cancelled).
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Regulation 7.8.03
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(2) For paragraph 981F(b) of the Act, this regulation applies if a
financial services licensee:
(a) becomes insolvent under an administration; or
(b) is the subject of any of the following arrangements:
(i) the appointment of an administrator under section 436A,
436B or 436C of the Act;
(ii) the commencement of winding up;
(iii) the appointment of a receiver of property of the
financial services licensee, whether by a court or
otherwise;
(iv) the appointment of a receiver and manager of property
of the financial services licensee, whether by a court or
otherwise;
(v) entry into a compromise or arrangement with creditors
of the financial services licensee, or a class of creditors;
(vi) if the financial services licensee is deceased—
administration of the estate of the financial services
licensee under Part XI of the Bankruptcy Act 1966;
(vii) if the financial services licensee is deceased—
administration of the estate of the financial services
licensee under the law of an external Territory that
provides for the administration of the insolvent estate of
a deceased person;
(viii) an arrangement under the law of a foreign country that
provides for a matter mentioned in subparagraphs (i) to
(vii).
(3) For paragraph 981F(d) of the Act, this regulation applies if:
(a) a financial services licensee ceases to carry on a particular
activity authorised by the financial services licence; and
(b) money is paid in connection with that activity.
(4) For each person who is entitled to be paid money from an account
of the financial services licensee maintained for section 981B of
the Act, the account is taken to be subject to a trust in favour of the
person.
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(5) If money in an account of the financial services licensee
maintained for section 981B of the Act has been invested, for each
person who is entitled to be paid money from the account, the
investment is taken to be subject to a trust in favour of the person.
(6) Money in the account of the financial services licensee maintained
for section 981B of the Act is to be paid as follows:
(a) the first payment is of money that has been paid into the
account in error;
(b) if money has been received on behalf of insureds in
accordance with a contract of insurance, the second payment
is payment to each insured person who is entitled to be paid
money from the account, in the following order:
(i) the amounts that the insured persons are entitled to
receive from the moneys in the account in respect of
claims that have been made;
(ii) the amounts that the insured persons are entitled to
receive from the moneys in the account in respect of
other matters;
(c) if:
(i) paragraph (b) has been complied with; or
(ii) paragraph (b) does not apply;
the next payment is payment to each person who is entitled to
be paid money from the account;
(d) if the money in the account is not sufficient to be paid in
accordance with paragraph (a), (b) or (c), the money in the
account must be paid in proportion to the amount of each
person’s entitlement;
(e) if there is money remaining in the account after payments
made in accordance with paragraphs (a), (b) and (c), the
remaining money is taken to be money payable to the
financial services licensee.
(7) This regulation applies despite anything to the contrary in the
Bankruptcy Act 1966 or a law relating to companies.
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Chapter 7 Financial services and markets
Part 7.8 Other provisions relating to conduct etc connected with financial products and
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Regulation 7.8.04
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7.8.04 Money to which Subdivision A of Division 2 of Part 7.8 of the
Act applies taken to be held in trust: breach of financial
services law
For paragraph 981H(3)(b) of the Act, if client money is held by an
investment mentioned in subregulation 7.8.02(5) following a
breach of a financial services law:
(a) the money is subject to a trust in favour of the client to the
extent that the client is entitled to the money; and
(b) any investment of the money is subject to a trust in favour of
the client to the extent that the client is entitled to the
investment; and
(c) the proceeds of a realisation of an investment of the money
are subject to a trust in favour of the client to the extent that
the client is entitled to the proceeds.
7.8.05 Money to which Subdivision A of Division 2 of Part 7.8 of the
Act applies taken to be held in trust: risk accepted by
insurer
(1) For paragraph 981H(3)(b) of the Act, this regulation applies if, in
relation to an insurance product:
(a) a financial services licensee is holding money to which
Subdivision A of Division 2 of Part 7.8 of the Act applies;
and
(b) the risk in relation to the insurance product has been accepted
by an insurer.
(2) The financial services licensee holds the money on trust for the
insurer in accordance with Division 2 of Part 7.8 of the Act, subject
to the agreement of the insurer.
(3) This regulation does not affect the operation of regulations 7.8.03
and 7.8.08.
(4) For paragraph 981C(c) of the Act, if money to which this
regulation applies is held in an account maintained for
section 981B of the Act:
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(a) the financial services licensee is entitled to the interest on the
account; and
(b) the interest on the account is not required to be paid into the
account.
7.8.06 Statement setting out terms of loan etc
For subsection 982C(1) of the Act, the financial services licensee
must give a client a disclosure document that contains, as far as
practicable, the matters required for Division 2 of Part 7.9 of the
Act.
7.8.06A Property exempt from Division 3 of Part 7.8 of the Act
For paragraph 984A(2)(a) of the Act, property given as security for
a standard margin lending facility is exempt from Division 3 of
Part 7.8 of the Act.
Note: Paragraph 984A(2)(a) of the Act provides that the regulations may
exempt property given in specified circumstances from some or all of
the provisions of Division 3 of Part 7.8 of the Act.
7.8.07 How property to which Division 3 of Part 7.8 of the Act to be
dealt with
(1) For paragraph 984B(1)(a) of the Act, this regulation sets out
requirements in relation to property to which Division 3 of Part 7.8
of the Act applies.
(2) The financial services licensee must hold the property on trust for
the benefit of the person who is entitled to it.
(3) If the client requests the financial services licensee, in writing, to
deposit the property in safe custody with an ADI:
(a) the licensee must deposit the property; or
(b) if the licensee does not comply with the request for any
reason, the licensee must notify the client, as soon as
practicable, of the failure to comply with the request.
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Regulation 7.8.07
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(4) If the client requests the financial services licensee, in writing, to
deposit the property in safe custody with a financial services
licensee that provides a custodial or depositary service for
section 766E of the Act:
(a) the licensee must deposit the property; or
(b) if the licensee does not comply with the request for any
reason, the licensee must notify the client, as soon as
practicable, of the failure to comply with the request.
(5) If the client requests the financial services licensee, in writing, to
deposit the property in safe custody in the place where the property
was deposited with, or received by, the licensee:
(a) the licensee must deposit the property in accordance with the
request; and
(b) if the licensee does not comply with the request for any
reason, the licensee must notify the client, as soon as
practicable, of the failure to comply with the request.
(6) If the client requests that the body corporate that issued or made
available the securities or managed investment products underlying
the property register the property in the name of a nominee
controlled by the financial services licensee, the financial services
licensee must arrange for the body corporate to register the
securities or managed investment products in that way.
(7) If:
(a) none of subsections (3) to (6) applies; and
(b) the property is not registered in the client’s name by the body
corporate that issued or made available the securities or
managed investment products underlying the property;
the financial services licensee must arrange to have the property
registered in the client’s name.
(8) A financial services licensee must not deposit property as security
for a loan or advance to the financial services licensee unless:
(a) the client owes the financial services licensee an amount in
connection with a transaction entered into by the financial
services licensee on the client’s behalf; and
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(b) the financial services licensee gives the client a written notice
that identifies the property and states that the dealer proposes
to deposit it as security for a loan or advance to the financial
services licensee; and
(c) the amount, or total of the amounts, that the client owes on
the day of the deposit is at least the amount of the loan or
advance.
(9) If a financial services licensee deposits property as security for a
loan or advance to the financial services licensee, in accordance
with subregulation (8):
(a) the financial services licensee must, not later than 1 business
day after the amount, or total of the amounts, that the client
owes on the day of the deposit are repaid, withdraw the
property from that deposit; and
(b) if, at the end of 3 months after the day of that deposit, or at
the end of any subsequent interval of 3 months, the property
has not been withdrawn from that deposit—the financial
services licensee must give the client written notice of that
fact.
(10) In this regulation:
property includes scrip, but does not include money.
7.8.08 Debts of financial services licensee in relation to premiums etc
(1) Subregulations (2) to (4) apply if:
(a) money is received by a financial services licensee:
(i) from, or on behalf of, an insured or intending insured, or
from another financial services licensee on behalf of an
insured or intending insured; and
(ii) as a premium or an instalment of a premium in
connection with a contract of insurance or a proposed
contract of insurance; and
(b) the risk, or a part of the risk, to which the contract or
proposed contract relates is accepted by or on behalf of an
insurer; and
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(c) the financial services licensee who so received the money is
informed of, or otherwise ascertains, the amount of the
premium or instalment to be paid.
(2) The financial services licensee who received the money must pay
to the insurer an amount equal to the amount of the premium or
instalment to be paid:
(a) in the period of 90 days (the relevant period) after:
(i) the day on which the cover provided by the insurer
under the contract starts to have effect; or
(ii) the first day of the period to which the instalment
relates; or
(b) if it is not practicable for the financial services licensee to
pay the amount in the relevant period—as soon as practicable
after the end of that period.
(3) If the financial services licensee has not received the amount of the
premium, or of an instalment of the premium, payable in respect of
a contract of insurance at the end of the relevant period, the
financial services licensee must notify the insurer in writing, not
later than 7 days after the end of the relevant period, that the
financial services licensee has not received the amount.
(4) Subregulation (3) does not apply if the financial services licensee
receives the amount:
(a) in the period of 7 days mentioned in subregulation (3); and
(b) before notifying the insurer in accordance with
subregulation (3).
(5) Subregulations (6) and (7) apply if:
(a) a financial services licensee receives money from, or on
behalf of:
(i) an insured or intending insured; or
(ii) another financial services licensee on behalf of an
insured or intending insured;
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as a premium or an instalment of a premium in connection
with a contract of insurance or a proposed contract of
insurance; and
(b) the risk, or a part of the risk, to which the contract or
proposed contract relates is accepted by or on behalf of an
insurer; and
(c) the financial services licensee who received the money has
not been informed of, and has not otherwise ascertained, the
amount of the premium or instalment to be paid.
(6) The financial services licensee who received the money must pay
the amount mentioned in subregulation (7) to the insurer:
(a) in the period of 90 days (the relevant period) after:
(i) the day on which the cover provided by the insurer
under the contract starts to have effect; or
(ii) the first day of the period to which the instalment
relates; or
(b) if it is not practicable for the financial services licensee to
pay the amount in the relevant period—as soon as practicable
after the end of that period.
(7) For subregulation (6), the amount is:
(a) for a new contract of insurance, an amount not less than the
lesser of:
(i) the amount of the money received; or
(ii) 75% of the amount fairly estimated by the financial
services licensee to be the premium or instalment that is
to be paid; and
(b) for a renewal of a contract of insurance, an amount not less
than the lesser of:
(i) the amount of the money so received; or
(ii) 75% of the previous year’s premium for the risk, or of
the last instalment of that years premium.
(8) Subregulation (9) applies if:
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(a) the risk, or a part of the risk, to which a contract of insurance
or a proposed contract of insurance relates is accepted by or
on behalf of an insurer; and
(b) the contract of insurance or proposed contract of insurance
has been, or is being, arranged or effected by a financial
services licensee (licensee 1), either directly or through
another financial services licensee; and
(c) licensee 1 has not been informed of, and has not otherwise
ascertained, the amount of a premium or of an instalment of a
premium to be paid in connection with the contract or
proposed contract.
(9) Licensee 1 must, notify the insurer in writing, within 10 days after
the day on which the risk, or that part of the risk, was accepted,
that:
(a) the risk, or that part of the risk, has been accepted; and
(b) licensee 1 does not know the amount of the premium or
instalment to be paid;
unless licensee 1 is informed of, or otherwise ascertains, the
amount of the premium or instalment to be paid before notifying
the insurer.
(10) Nothing in this regulation prevents:
(a) an insurer from making a contract or arrangement with a
financial services licensee providing for the financial services
licensee to pay an amount to the insurer before the time by
which the financial services licensee is required by the
provision concerned to pay that amount to the insurer; or
(b) an insurer from authorising a financial services licensee in
writing to pay on behalf of the insurer, out of the money
received by the financial services licensee as a premium or
instalment of a premium in respect of a contract of insurance
arranged with the insurer, any charges required by law to be
paid by the insurer in respect of the contract; or
(c) a financial services licensee from exercising any legal right
available to the financial services licensee to deduct from any
moneys payable by the financial services licensee to the
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insurer any remuneration payable by the insurer to the
financial services licensee in relation to a contract of
insurance.
(11) For subregulation (1) or (5), if the risk, or a part of the risk, to
which a contract or proposed contract mentioned in that
subregulation is accepted on behalf of an insurer by an insurance
intermediary other than the insurance financial services licensee
who received the moneys from or on behalf of the insured or
intending insured, the payment of the premium, or part of the
premium, by the financial services licensee to the intermediary is
taken to be a payment of the premium or part of the premium by
the financial services licensee to the insurer.
(12) For subregulation (3) or (8), if:
(a) a financial services licensee is required to notify an insurer in
accordance with that subregulation; and
(b) an insurance intermediary other than the financial services
licensee has accepted the risk, or a part of the risk, to which
the contract or proposed contract relates on behalf of the
insurer;
a notification by the financial services licensee to the intermediary
is taken to be a notification by the financial services licensee to the
insurer.
(13) Subregulations (14) and (15) apply if:
(a) a financial services licensee receives money from, or on
behalf of, an insured or intending insured in connection with
a contract of insurance or proposed contract of insurance; and
(b) at the end of 30 days after the day on which the money was
received, the risk, or a part of the risk, to which the contract
or proposed contract relates has not been accepted.
(14) If the risk has not been accepted, the financial services licensee
must, within 7 days after the end of the 30 day period:
(a) give notice to the insured or intending insured, in a form (if
any) approved by ASIC for this paragraph, that the risk has
not been accepted; and
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(b) return the money to the insured or intending insured.
(15) If a part of the risk to which the contract or proposed contract
relates has not been accepted, the financial services licensee must,
within 7 days after the end of the 30 day period:
(a) give notice to the insured or intending insured, in a form (if
any) approved by ASIC for this paragraph, of the extent to
which the risk has not been accepted; and
(b) return that part of the money that relates to the part of the risk
that has not been accepted to the insured or intending
insured.
(16) If a financial services licensee receives money from, or on behalf
of, an insurer for payment to, or on behalf of, an insured, the
financial services licensee must pay an amount equal to the money
to, or on behalf of, the insured:
(a) within 7 days after the day on which the financial services
licensee received the money; or
(b) if it is not practicable for the financial services licensee to
pay the amount in that period—as soon as practicable after
the end of the period.
(17) Nothing in subregulation (16) prevents:
(a) an insured from making a contract or arrangement with a
insurance financial services licensee providing for the
financial services licensee to pay an amount mentioned in
that subregulation to or on behalf of the insured before the
time by which the financial services licensee is required by
that subregulation to pay that amount to or on behalf of the
insured; or
(b) a financial services licensee from exercising any legal right
available to the financial services licensee to deduct from an
amount payable by the financial services licensee to the
insured any money payable by the insured to the financial
services licensee in connection with a contract of insurance.
(18) A person is guilty of an offence if the person contravenes
subregulation (2), (3), (6), (9), (14) or (16), whether or not it was
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done with the consent of the insurer or of the insured or intending
insured.
Penalty: 10 penalty units.
(19) Subregulation (18) does not apply if the person has a reasonable
excuse.
Note: A defendant bears an evidential burden in relation to the matter in
subregulation (18) (see subsection 13.3(3) of the Criminal Code).
(20) Strict liability applies to subregulation (18).
Note: For strict liability, see section 6.1 of the Criminal Code.
(21) If:
(a) under subregulation (2), (3), (6) or (9), a financial services
licensee is required to pay an amount to, or to notify, an
insurer; and
(b) under the contract or proposed contract of insurance
concerned the insurer is an underwriting member of Lloyd’s;
it is sufficient compliance with the subregulation if the financial
services licensee pays the amount to, or notifies, as the case may
be, the Lloyd’s broker concerned.
7.8.08A Limit of margin lending facility taken to be increased
(1) For paragraph 985E(3)(a) of the Act, the limit of a margin lending
facility is taken to be increased, despite subsection 985E(2) of the
Act, if:
(a) the increase is a result of a contribution of further secured
property or transferred securities that occurs without the prior
knowledge or agreement of the provider; and
(b) the provider permits the increase to continue; and
(c) the increase is no more than 5% of the current limit of the
margin lending facility (within the meaning given by
subsection 761EA(11) of the Act).
(2) If the limit of a margin lending facility is taken to be increased in
the circumstances mentioned in subregulation (1),
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Part 7.8 Other provisions relating to conduct etc connected with financial products and
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Regulation 7.8.08A
108 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
subsection 985E(1) of the Act is modified by omitting ‘before the
critical day:’ and inserting ‘after the critical day:’.
Note: Paragraph 992C(1)(c) of the Act provides that the regulations may
provide that Part 7.8 of the Act applies as if specified provisions were
omitted, modified or varied as specified in the regulations.
(3) For subregulation (1), if:
(a) more than one contribution of further secured property or
transferred securities under the margin lending facility occurs
on a day; and
(b) each of the contributions is taken to increase the limit of the
facility; and
(c) either:
(i) the cumulative increase is no more than 5% of the
current limit of the margin lending facility; or
(ii) if the cumulative increase is more than 5% of the
current limit of the margin lending facility, the provider
ensures that the increases are reduced so that the
cumulative increase becomes no more than 5% of the
current limit of the margin lending facility;
the increases are taken to be one increase for this regulation.
Increase prior to assessment only to occur once
(4) Subregulation (5) applies if:
(a) the limit of a margin lending facility is taken to be increased
in the circumstances mentioned in subregulation (1); and
(b) an assessment has not yet been made in accordance with
section 985F of the Act.
(5) If the limit of the margin lending facility would be taken to
increase further in accordance with subregulation (1):
(a) the limit is taken not to be further increased until:
(i) an assessment has been made in accordance with
section 985F of the Act; and
(ii) it is assessed that the facility will not be unsuitable for
the client if the limit is increased; and
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Regulation 7.8.08B
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(b) the provider must ensure that the increase does not continue
unless paragraph (a) permits it.
If facility assessed as unsuitable
(6) If:
(a) the limit of a margin lending facility is taken to be increased
in the circumstances mentioned in subregulation (1); and
(b) the assessment made in accordance with section 985F of the
Act assesses that the facility is unsuitable for the client
because of the increased limit;
the limit is taken to be reduced to the limit of the margin lending
facility before the increase, and the provider must ensure that the
limit is reduced within 90 days of the day the assessment is made.
Facility not unsuitable for subsection 985K(4) of the Act
(7) For subsection 985K(4) of the Act, a margin lending facility is
taken not to be unsuitable if:
(a) the limit of the margin lending facility is taken to be
increased in the circumstances mentioned in
subregulation (1); and
(b) the assessment made in accordance with section 985F of the
Act assesses that the facility:
(i) is not unsuitable for the client; or
(ii) is unsuitable for the client because of the increased
limit; and
(c) in the case of subparagraph (b)(ii), the provider ensures that
the limit is reduced, within 90 days of the day the assessment
is made, to the limit of the margin lending facility before the
increase.
7.8.08B Exemption from requirement to make unsuitability
assessment
(1) For paragraph 992C(1)(a) of the Act, a person is exempt from the
requirement in paragraph 985E(1)(c) of the Act to make an
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Regulation 7.8.08B
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assessment if the margin lending facility mentioned in
paragraph 985E(1)(a) or (b) of the Act is a facility mentioned in
subregulation (2):
(a) in respect of the full amount of the loan, including any
interest, fees and charges; and
(b) in relation to which the client has not taken out a loan to fund
the secured property contributed by the client for establishing
the margin lending facility.
(2) For subregulation (1), the facility is a standard margin lending
facility (within the meaning given by subsection 761EA(2) of the
Act) under the terms of which:
(a) the credit provided must be applied wholly:
(i) to acquire one or more marketable securities, or a
beneficial interest in one or more marketable securities;
or
(ii) to repay another credit facility, under the terms of which
the credit provided was applied wholly to acquire one or
more marketable securities, or a beneficial interest in
one or more marketable securities; and
(b) the secured property mentioned in paragraphs (c) and (d) of
that subsection:
(i) consists wholly of one or more marketable securities, or
a beneficial interest in one or more marketable
securities; or
(ii) consists:
(A) partly of one or more marketable securities, or a
beneficial interest in one or more marketable
securities; and
(B) partly of cash given to the provider and held in
trust for the client for the sole purpose of
servicing obligations under the facility; and
(c) the liability of the client to the provider is limited to the
rights relating to the secured property.
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Regulation 7.8.09
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7.8.09 Reasonable inquiries etc about retail client: inquiries
(1) For paragraph 985G(1)(c) of the Act, the following inquiries about
a client are prescribed in relation to a margin lending facility, or a
margin lending facility whose limit is proposed to be increased,
within the meaning of subsection 761EA(1) of the Act:
(a) reasonable inquiries as to whether the client has taken out a
loan to fund the secured property or transferred securities
contributed by the client for establishing the margin lending
facility;
Note: This is sometimes referred to as ‘double gearing’.
(b) if a loan to fund the secured property or transferred securities
contributed by the client for establishing the margin lending
facility has been taken out—reasonable inquiries as to
whether the security for the loan includes the primary
residential property of the client;
(c) if there is a guarantor for the margin lending facility—
reasonable inquiries as to whether the guarantor has been
appropriately informed of, and warned about, the risks and
possible consequences of providing the guarantee;
(d) reasonable inquiries as to the amount of any other debt
incurred by the client;
(e) any other matter that ASIC has specified in a legislative
instrument for subregulation (2).
(2) ASIC may specify in a legislative instrument any matter ASIC
considers to be relevant for the purpose of establishing whether the
margin lending facility, or the margin lending facility with the
increased limit, is unsuitable for the client.
7.8.09A Modification of section 985G of the Act
For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act applies as
if section 985G of the Act were modified by inserting after
subsection (2) the following subsection:
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Chapter 7 Financial services and markets
Part 7.8 Other provisions relating to conduct etc connected with financial products and
financial services, other than financial product disclosure
Regulation 7.8.10
112 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
‘(2A) The regulations may provide that ASIC may specify in a
legislative instrument matters ASIC considers to be relevant
for the purposes of paragraph 985G(1)(c) of the Act.’
7.8.10 Circumstances in which margin lending facility is unsuitable
For paragraph 985H(2)(b) of the Act, a margin lending facility, or
a margin lending facility whose limit is proposed to be increased,
within the meaning of subsection 761EA(1) of the Act is unsuitable
for a retail client if the client:
(a) is, on an ongoing basis, unable to be contacted by any of the
usual means of communication; and
(b) has not appointed an agent to act on the client’s behalf.
7.8.10A Margin lending facility taken not to be unsuitable
For subsection 985K(4) of the Act, a margin lending facility is
taken not to be unsuitable:
(a) if:
(i) an assessment of unsuitability was undertaken in
accordance with the Act; and
(ii) the assessment reasonably concluded that the margin
lending facility is not unsuitable; or
(b) if a person is exempt under regulation 7.8.08B from the
requirement to make an assessment of unsuitability in
relation to the margin lending facility.
7.8.11 Particular categories of information to be shown in records
For paragraph 988E(g) of the Act, the following matters are
specified:
(a) all underwriting transactions entered into by the financial
services licensee;
(b) all financial products dealt with by the licensee under
instructions from another person;
(c) each person who gave instructions to deal with financial
products;
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(d) all property:
(i) that is not the property of the financial services licensee;
and
(ii) for which the financial services licensee, or a nominee
controlled by the financial services licensee, is
accountable;
(e) each person by whom, or for whom, property mentioned in
paragraph (d) is held;
(f) the extent to which property mentioned in paragraph (d) is:
(i) held in safe custody; or
(ii) deposited with a third party as security for a loan or
advance made to the financial services licensee;
(g) all transactions in relation to insurance products entered into
with, or on behalf of, foreign insurers.
7.8.11A Particular categories of information to be shown in records:
records of non-monetary benefit that is not conflicted
remuneration
(1) This regulation is made for paragraph 988E(g) and section 988F of
the Act.
(2) The following table sets out matters in relation to a non-monetary
benefit that:
(a) is given to a financial services licensee or a representative of
a financial services licensee; and
(b) either:
(i) is not conflicted remuneration in accordance with
paragraph 963C(b) of the Act, and is over $100; or
(ii) is not conflicted remuneration in accordance with
paragraph 963C(c) or (d) of the Act; or
Note: Particulars of the matters must be shown in the records kept by the
financial services licensee.
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Regulation 7.8.11A
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Item Matter
1 A description of the benefit
2 Either:
(a) the value of the benefit; or
(b) if the value is not known, the estimated value of the
benefit;
expressed as a dollar amount or as a range of dollars
3 The date on which the benefit was given
4 The name of the person who gave the benefit and, if
relevant, the number of the person’s financial services
licence
5 Whether the benefit was given to the licensee or to a
representative of the licensee
6 If the benefit was given to an authorised representative of
the licensee, the name and contact details of the authorised
representative
7 If the benefit was given to another representative of the
licensee, the name and contact details of the other
representative
(3) At the request of a person, a financial services licensee must give
the person the particulars in its records relating to the matters in
items 1 to 4 of the table for the last financial year.
(4) The licensee may require the person making the request to pay a
charge for obtaining the particulars.
(5) The amount of the charge must not exceed the reasonable costs that
the licensee incurs that are reasonably related to giving the
particulars (including any costs incurred in photocopying the
document containing the particulars).
Note: This would include the costs of collating the information.
(6) The licensee must give the particulars to the person as soon as
practicable, and no later than one month after the person makes the
request to the licensee.
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Regulation 7.8.12
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7.8.12 Requirements in relation to financial records of financial
services licensees
(1) For section 988F of the Act, the financial records of a financial
services licensee must be kept in sufficient detail as to show or
include, for basic deposit products:
(a) separate particulars of every transaction by the financial
services licensee; and
(b) the day on which, or the period during which, each
transaction by the financial services licensee took place.
(2) For section 988F of the Act, the financial records of a financial
services licensee must be kept in sufficient detail as to show or
include, for all financial products other than basic deposit products:
(a) the information mentioned in subregulation (1); and
(b) if the financial services licensee is not a partner in a firm—
separate particulars of each transaction by the financial
services licensee with, or for the account of:
(i) clients of the financial services licensee; or
(ii) the financial services licensee’s own account; or
(iii) other financial services licensees; or
(iv) representatives of the financial services licensee; or
(v) employees of the financial services licensee; and
(c) if the financial services licensee is a partner in a firm—
separate particulars of each transaction by the financial
services licensee with, or for the account of:
(i) clients of the financial services licensee other than the
partners in the firm; or
(ii) the partners in the firm; or
(iii) the financial services licensee’s own account; or
(iv) other financial services licensees; or
(v) representatives of the financial services licensee; or
(vi) employees of the financial services licensee; and
(d) copies of acknowledgments of the receipt of financial
products or documents of title to financial products.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.8 Other provisions relating to conduct etc connected with financial products and
financial services, other than financial product disclosure
Regulation 7.8.12A
116 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.8.12A Modification of section 989B of the Act
(1) For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act applies as
if subsection 989B(3) were modified to read as follows:
“(3) The licensee must, with the statement and balance sheet, lodge
with ASIC:
(a) for a licensee who is a limited licensee for the whole of a
financial year—a compliance certificate containing the
information and matters required by the regulations; or
(b) for a licensee who is a limited licensee for part of a financial
year:
(i) a compliance certificate containing the information and
matters required by the regulations for the part of the
financial year that the licensee was a limited licensee;
and
(ii) an auditor’s reporting containing the information and
matters required by the regulations for the part of the
financial year that the licensee was not a limited
licensee; or
(c) for all other licensees—an auditor’s report containing the
information and matters required by the regulations.
Note: Failure to comply with this subsection is an offence (see
subsection 1311(1)).”.
(2) For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act applies as
if section 989B of the Act were modified by inserting after
subsection 989B(3) the following subsection:
“(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.
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Regulation 7.8.12A
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limited financial service 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 of an interest in a
self-managed superannuation fund.
limited licensee means a financial services licensee that:
(a) does not deal with money to which Division 2 of Part 7.8 of
the Act applies; and
(b) is only licensed to provide one or more limited financial
services.
simple managed investment scheme has the same meaning as in
the regulations.”.
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Chapter 7 Financial services and markets
Part 7.8 Other provisions relating to conduct etc connected with financial products and
financial services, other than financial product disclosure
Regulation 7.8.13
118 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.8.13 Auditor’s report with annual profit and loss statement and
balance sheet
(1) For subparagraph 989B(3)(b)(ii) or paragraph 989B(3)(c) of the
Act, an auditor’s report lodged with a true and fair profit and loss
statement and balance sheet in respect of a financial year must be
lodged with ASIC in the prescribed form.
(2) For subparagraph 989B(3)(b)(ii) or paragraph 989B(3)(c) of the
Act, an auditor’s report lodged with a true and fair profit and loss
statement and balance sheet in respect of a financial year must
contain a statement of the auditor’s opinion on the following
matters:
(a) the effectiveness of internal controls used by a financial
services licensee to comply with:
(i) Divisions 2, 3, 4, 5 and 6 of Part 7.8 of the Act; and
(ii) Division 7 of Part 7.8 of the Act other than
section 991A;
(b) whether each account required by sections 981B and 982B of
the Act to be maintained by the financial services licensee
has been operated and controlled in accordance with those
sections;
(c) whether all necessary records, information and explanations
were received from the financial services licensee.
7.8.13A Compliance certificate with profit and loss statement and
balance sheet
For paragraph 989B(3)(a) and subparagraph 989B(3)(b)(i) of the
Act, a compliance certificate lodged by a licensee with a true and
fair profit and loss statement and balance sheet in respect of a
financial year must:
(a) be lodged with ASIC in the prescribed form; and
(b) be signed by:
(i) if the licensee is an individual—the licensee; or
(ii) if the licensee is a corporation—an officer of the
corporation; or
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Regulation 7.8.14
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(iii) if the licensee is a partnership or the trustees of a trust—
a partner or trustee who performs duties in relation to
financial services.
7.8.14 Contents of annual profit and loss statement and balance
sheet and applicable accounting procedures
For paragraph 989C(a) of the Act, a true and fair profit and loss
statement and balance sheet in respect of a financial year must
contain a declaration by the financial services licensee that:
(a) the profit and loss statement and balance sheet give a true
and fair view of the matters stated in it; and
(b) if the licensee is required to lodge an auditor’s report under
subparagraph 989B(3)(b)(ii) or paragraph 989B(3)(c) of the
Act—the auditor’s report lodged with the profit and loss
statement and balance sheet is a true copy of the report on the
profit and loss statement and balance sheet of the financial
services licensee; and
(c) if the licensee is required to lodge a compliance certificate
under paragraph 989B(3)(a) or subparagraph 989B(3)(b)(i) of
the Act—the information in the compliance certificate lodged
with the profit and loss statement and balance sheet is
complete and accurate.
7.8.14A Lodgement of annual profit and loss statement and balance
sheet
For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act applies as
if paragraph 989D(1)(b) were modified to read as follows:
‘(b) if the licensee is:
(i) a body corporate that is a disclosing entity or a
registered scheme—the day that is 3 months
after the end of that financial year; or
(ii) a body corporate that is not a disclosing entity
or a registered scheme—the day that is 4
months after the end of that financial year.’.
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Part 7.8 Other provisions relating to conduct etc connected with financial products and
financial services, other than financial product disclosure
Regulation 7.8.14B
120 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.8.14B Modification of section 990B of the Act
(1) For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act applies as
if subsection 990B(1) of the Act were modified by:
(a) omitting “must, within 1 month after beginning to hold the
licence,” and substituting “who is not a limited licensee
must”; and
(b) omitting “(4) and (5)” and substituting “(4), (5) and (5A)”.
(2) For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act applies as
if section 990B of the Act were modified by inserting after
subsection 990B(5) the following subsection:
“(5A) The licensee must appoint an auditor or auditors within:
(a) if the licensee was a limited licensee—one month after the
licensee ceased to be a limited licensee; or
(b) for all other licensees—one month after beginning to hold the
licence.”.
(3) For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act applies as
if subsection 990B(9) of the Act were modified to read as follows:
“(9) 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:
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(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 of an interest in a
self-managed superannuation fund.
limited licensee means a financial services licensee that:
(a) does not deal with money to which Division 2 of Part 7.8 of
the Act applies; and
(b) is only licensed to provide one or more limited financial
services.
person means:
(a) an individual auditor; or
(b) an authorised audit company.
simple managed investment scheme has the same meaning as in
the regulations.”.
7.8.15 Appointment of auditor by financial services licensee
(1) For subsections 990B(7) and (8) of the Act, this regulation:
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Regulation 7.8.15
122 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) sets out matters related to the appointment of a firm as
auditor of the financial statements of a financial service
licensee; and
(b) modifies the effect of section 990E of the Act.
(1A) If an applicant for a financial services licence:
(a) specifies, in the application for the licence, the name of a
person or firm that is to be, or has been, appointed to audit
the applicant’s financial statements; and
(b) the auditor or auditors specified are appointed before the end
of 1 month after the licence takes effect;
the applicant is taken to have lodged a notice under
subsection 990B(6) of the Act.
(2) The appointment is taken to be an appointment of each person who
is:
(a) a member of the firm; and
(b) a registered company auditor;
whether the person is resident in Australia or not at the date of the
appointment.
(3) Unless subregulation (4) applies, the appointment of the members
of a firm as auditors that is taken by subregulation (2) to have been
made because of the appointment of the firm as auditor of the
holder is not affected by the dissolution of the firm.
(4) If a firm that has been appointed as auditor is reconstituted because
of the death, retirement or withdrawal of a member or members, or
because of the admission of a new member or new members, or
both:
(a) a person who:
(i) was taken under subregulation (2) to be an auditor of the
financial services licensee; and
(ii) has retired or withdrawn from the firm as previously
constituted;
is taken to have resigned as auditor as from the day of the
retirement or withdrawal; and
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(b) a person who:
(i) is a registered company auditor; and
(ii) is admitted to the firm;
is taken to have been appointed as an auditor of the holder as
from the date of the admission; and
(c) the reconstitution of the firm does not affect the appointment
of the continuing members of the firm who are registered
company auditors as auditors; and
(d) nothing in paragraphs (a) to (c) affects the operation of
section 990C of the Act.
(5) Sections 990F to 990H of the Act do not apply to a resignation
mentioned in paragraph (4)(a) unless:
(a) the person who is taken to have resigned was the only
member of the firm who was a registered company auditor;
and
(b) there is no member of the firm who is a registered company
auditor after the retirement or withdrawal of that person.
(6) A report or notice that purports to be made or given by a firm
appointed as auditor is taken not to have been duly made or given
unless it is signed by a member of the firm who is a registered
company auditor:
(a) in the firm’s name; and
(b) in his or her own name.
(7) If a vacancy in the office of an auditor continues, the surviving or
continuing auditor or auditors (if any) may act as auditor while the
vacancy continues.
(8) If a vacancy occurs in the office of an auditor, and there is no
surviving or continuing auditor of the financial services licensee,
the financial services licensee must, within 14 days after the
vacancy occurs appoint as auditor:
(a) a person who is eligible to act as auditor; or
(b) 2 or more persons each of whom is eligible to act as auditor;
or
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Regulation 7.8.16
124 Corporations Regulations 2001
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(c) a firm that is eligible to act as auditor; or
(d) 2 or more firms each of which is eligible to act as auditor; or
(e) a combination of persons and firms each of which is eligible
to act as auditor.
(9) If an auditor ceases to hold office in accordance with
paragraph 990E(a) or (d) of the Act, the financial services licensee
for which the auditor acted must lodge with ASIC a notice in the
prescribed form stating that the auditor has ceased to hold the
office.
7.8.16 When person is ineligible to act as auditor of financial services
licensee
(1) For section 990C of the Act, a person is ineligible to act as auditor
of a financial services licensee in any of the following
circumstances:
(a) the person is not a registered company auditor;
(b) the person is indebted in an amount exceeding $5 000 to:
(i) the financial services licensee; or
(ii) if the financial services licensee is a body corporate—to
a body corporate related to the financial services
licensee;
(c) a body corporate in which the person has a substantial
holding is indebted in an amount exceeding $5 000 to:
(i) the financial services licensee; or
(ii) if the financial services licensee is a body corporate—to
a body corporate related to the financial services
licensee;
(d) the person is a partner or employee of the financial services
licensee;
(e) if the financial services licensee is a body corporate—the
person is:
(i) an officer of the body; or
(ii) a partner, employer or employee of an officer of the
body; or
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(iii) a partner or employee of an employee of an officer of
the body.
(2) For section 990C of the Act, a firm is ineligible to act as auditor of
a financial services licensee at a particular time unless:
(a) at least 1 member of the firm is a registered company auditor
who is ordinarily resident in Australia; and
(b) if the business name under which the firm is carrying on
business is not registered under a law of a State or
Territory—a return has been lodged in the prescribed form
showing, in relation to each member of the firm:
(i) the member’s full name; and
(ii) the member’s address at that time; and
(c) no member of the firm is indebted in an amount exceeding
$5 000 to:
(i) the financial services licensee; or
(ii) if the financial services licensee is a body corporate—to
a body corporate related to the financial services
licensee; and
(d) no body corporate in which any member of the firm has a
substantial holding is indebted in an amount exceeding
$5 000 to:
(i) the financial services licensee; or
(ii) if the financial services licensee is a body corporate—to
a body corporate related to the financial services
licensee; and
(e) no member of the firm is a partner or employee of the
financial services licensee; and
(f) if the financial services licensee is a body corporate—no
member of the firm is:
(i) an officer of the body; or
(ii) a partner, employer or employee of an officer of the
body; or
(iii) a partner or employee of an employee of an officer of
the body; and
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financial services, other than financial product disclosure
Regulation 7.8.16
126 Corporations Regulations 2001
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(g) if the financial services licensee is a body corporate—no
officer of the financial services licensee receives any
remuneration from the firm for acting as a consultant to it on
accounting or auditing matters.
(3) For paragraphs (1)(b), (1)(c), (2)(c) and (2)(d), a debt owed by a
natural person to a body corporate is to be disregarded if:
(a) the body corporate is:
(i) an Australian ADI; or
(ii) a body corporate registered under the Life Insurance Act
1995; and
(b) the debt arose because of a loan that the body corporate or
entity made to the person in the ordinary course of its
ordinary business; and
(c) the person used the amount of the loan to pay the whole or
part of the purchase price of premises that the person uses as
their principal place of residence.
(4) For subregulations (1) and (2), a person is taken to be an officer of
a body corporate if:
(a) the person is an officer of a related body corporate; or
(b) unless ASIC directs that this paragraph not apply in relation
to the person—the person has, at any time within the
immediately preceding period of 12 months, been an officer
or promoter of the body corporate or of a related body
corporate.
(5) For this regulation, a person is not taken to be an officer of a body
corporate by reason only of being or having been the liquidator of
the body corporate or of a related body corporate.
(6) For this regulation, a person is not taken to be an officer of a body
corporate:
(a) by reason only of having been appointed as an auditor of that
body corporate or of a related body corporate; or
(b) for any purpose relating to taxation, a public officer of a body
corporate; or
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Regulation 7.8.17
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(c) by reason only of being or having been authorised to accept
on behalf of the body corporate or a related body corporate:
(i) service of process; or
(ii) any notices required to be served on the body corporate
or related body corporate.
7.8.17 Priority to clients’ orders
(1) For paragraph 991B(3)(b) of the Act, if a participant in a licensed
market:
(a) enters into a transaction; and
(b) complies with all of the participant’s obligations in relation
to the transaction under the market integrity rules and the
operating rules of the licensed market;
subsection 991B(2) of the Act does not apply in relation to the
transaction.
(2) Subject to subregulation (3), for paragraph 991B(3)(b) of the Act,
subsection 991B(2) of the Act does not apply to a transaction if, at
the time that the instruction is issued, the financial services
licensee is not a participant in the licensed market on which the
particular financial product is being traded.
(3) Subregulation (2) does not apply if:
(a) the financial services licensee deals, or has dealt, in a
financial product traded on that market:
(i) on the licencee’s own behalf (whether directly or
through an agent or other representative); or
(ii) on behalf of a client; or
(b) an associate of the financial services licensee is a participant
in the market mentioned in that subregulation.
7.8.18 Instructions to deal through licensed markets
(1) For section 991C of the Act, this regulation applies in relation to
all instructions received by a financial services licensee to deal in
financial products through licensed markets, except to the extent
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financial services, other than financial product disclosure
Regulation 7.8.18
128 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
that the market integrity rules, or the operating rules of a licensed
market in relation to which the financial services licensee is a
participant, otherwise provide.
(2) Subject to subregulation (3), the financial services licensee must
transmit, in the sequence in which they are received, all
instructions to deal in a class of financial products at or near the
market price for financial products of that class prevailing
immediately before execution of the instructions.
(3) If:
(a) a financial services licensee proposes to deal in a class of
financial products on the financial services licensee’s own
account; and
(b) the person by whom or on whose instructions the instructions
for the dealing are to be transmitted is aware of instructions
of a client of the financial services licensee to deal in that
class of financial products at or near the market price for a
financial product of that class prevailing at that time (being
instructions that have not been transmitted);
that person must not transmit, and must not give instructions to any
other person to transmit, the instructions to give effect to the
proposal of the financial services licensee to deal in that class of
financial products before the instructions of the client are
transmitted.
(4) If:
(a) during a particular period, a financial services licensee
transmits instructions (whether or not those instructions
consist of, or include, instructions giving effect to a proposal
of the financial services licensee to deal in the class of
financial products concerned on the financial services
licensee’s own account) to deal in a class of financial
products at or near the market price for a financial product of
that class prevailing immediately before execution of the
instructions; and
(b) dealings in that class of financial products are effected
pursuant to those instructions;
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Regulation 7.8.19
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the financial services licensee must allocate the dealings to those
instructions:
(c) in the sequence in which the dealings were effected; and
(d) in the sequence in which the financial services licensee
transmitted the instructions.
(5) A financial services licensee (licensee 1), or a director, partner,
officer or employee of a financial services licensee, must not
disclose to any other financial services licensee, or to a person
engaged or employed in the business of licensee 1 or any other
financial services licensee, instructions of a client to deal in a class
of financial products, except:
(a) to the extent necessary to execute the instructions; or
(b) as required by this Act or any other law.
(6) In this regulation, a reference to the transmission by a financial
services licensee of instructions to deal in a class of financial
products is a reference:
(a) if the financial services licensee has direct access to the
licensed market on which the instructions are to be
executed—to the transmission of the instructions to that
licensed market; or
(b) if the financial services licensee has access to the licensed
market on which the instructions are to be executed only
through another financial services licensee—to the
transmission of the instructions to that other financial
services licensee.
7.8.19 Records of instructions to deal on licensed markets and
foreign markets
(1) For section 991D of the Act, this regulation applies in relation to:
(a) instructions received by a financial services licensee to deal
in financial products, on behalf of a client, through licensed
markets or through other financial markets (whether inside or
outside Australia); and
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Regulation 7.8.19
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(b) instructions received by a financial services licensee to deal
in financial products, on the financial service licensee’s own
account, through licensed markets or through other financial
markets (whether inside or outside Australia).
(2) The financial services licensee must keep records setting out brief
particulars of the following matters:
(a) the instructions;
(b) if the instructions were received on behalf of a client—the
client;
(c) the person who gave the instructions to the financial services
licensee;
(d) the date and time of receipt of the instructions, and the person
who received the instructions;
(e) the date and time of transmission of the instructions, and the
person who transmitted the instructions;
(f) the date and time of execution of the instructions.
(3) For subregulation (2), if:
(a) a financial services licensee transmits for execution on a
financial market outside Australia and the external Territories
instructions to deal in financial products; and
(b) it is not reasonably practicable for the financial services
licensee to set out the date and time of execution of those
instructions in its records;
the financial services licensee must set out the date and time as
precisely as is reasonably practicable.
(4) The financial services licensee must keep records relating to
instructions given by a client to deal in financial products in a
manner that makes the records identifiable separately from records
relating to instructions to deal in financial products on the financial
services licensee’s own account.
(5) The financial services licensee must keep the records mentioned in
subregulation (2) for at least 5 years after the particulars are
created.
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Regulation 7.8.20
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7.8.20 Dealings with non-licensees
(1) For subsection 991E(1) of the Act:
(a) section 991E does not apply in relation to the sale or
purchase of financial products mentioned in
paragraph 764A(1)(a) of the Act by the body corporate by
which the financial products were made available if the
financial products are made available in accordance with
Chapters 5C and 6D of the Act; and
(b) section 991E does not apply to the sale or purchase of
financial products mentioned in paragraph 764A(1)(b) of the
Act by the body corporate by which the financial products
were made available if the financial products are made
available in accordance with Chapters 5C and 7 of the Act.
(1A) Subject to subregulation (1B), for subsection 991E(1) of the Act,
the subsection does not apply to a transaction if, at the time of the
transaction, the financial services licensee is not a participant in the
licensed market on which the particular financial product is being
traded.
(1B) Subregulation (1A) does not apply if:
(a) the financial services licensee deals, or has dealt, in a
financial product traded on that market:
(i) on the licensee’s own behalf (whether directly or
through an agent or other representative); or
(ii) on behalf of a client; or
(b) an associate of the financial services licensee is a participant
in the market mentioned in that subregulation.
(2) For subsection 991E(2) of the Act:
(a) a disclosure referred to in paragraph 991E(1)(c) of the Act
must be given by the financial services licensee to the
non-licensee:
(i) in writing; and
(ii) if the transaction is an on-market transaction—in
relation to the particular transaction, a class of
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financial services, other than financial product disclosure
Regulation 7.8.20
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on-market transactions which includes the transaction,
or all on-market transactions; and
(b) a consent referred to in paragraph 991E(1)(d) of the Act:
(i) may be given orally, or in writing, by the non-licensee;
and
(ii) is effective until it is revoked, either orally or in writing,
by the non-licensee; and
(c) if the non-licensee gives an oral consent to the financial
services licensee, or revokes a consent orally, the financial
services licensee must:
(i) make a written record of the consent or revocation; and
(ii) provide a copy of the written record to the non-licensee
within 10 business days after the day on which the
consent is given or revoked.
(3) For subsection 991E(3) of the Act, a brokerage, commission or
other fee is permitted in respect of a transaction between a
financial services licensee and a non-licensee only if:
(a) the financial services licensee is a participant in a licensed
market; and
(b) the financial services licensee has complied with all of the
financial services licensee’s obligations in relation to the
transaction under the market integrity rules and the operating
rules of the relevant licensed market; and
(c) the market integrity rules or the operating rules permit a
brokerage, commission or fee to be charged to non-licensees
of the same kind as the non-licensee; and
(d) the non-licensee has authorised the financial services licensee
to charge the non-licensee in respect of the transaction; and
(e) the financial services licensee discloses to the non-licensee
the amount of the brokerage, commission or fee, or the basis
on which it will be calculated, before the non-licensee gives
the authorisation mentioned in paragraph (d); and
(f) the amount of the brokerage, commission or fee is reasonable
having regard to the amount that would have been charged by
the financial services licensee to the non-licensee if the
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Regulation 7.8.20
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financial services licensee had entered the transaction with
the non-licensee as agent and not on its own behalf.
(4) For subregulation (3):
(a) an authorisation given to the financial services licensee by
the non-licensee:
(i) may be given orally, or in writing, by the non-licensee;
and
(ii) is effective until it is revoked, either orally or in writing,
by the non-licensee; and
(b) if the non-licensee gives an oral authorisation to the financial
services licensee, or revokes an authorisation orally, the
financial services licensee must:
(i) make a written record of the authorisation or revocation;
and
(ii) provide a copy of the written record to the non-licensee
within 10 business days after the day on which the
authorisation is given or revoked; and
(c) a disclosure of the amount of the brokerage, commission or
fee, or the basis on which it will be calculated must be given
by the financial services licensee to the non-licensee:
(i) in writing: and
(ii) if the transaction is an on-market transaction—in
relation to the particular transaction, a class of
on-market transactions that includes the transaction, or
all on-market transactions.
(5) For subsection 991E(7) of the Act, a financial services licensee
must:
(a) keep records of the following matters relating to each
financial products transaction entered into by the financial
services licensee on the financial service licensee’s own
behalf:
(i) a description of the financial products transaction;
(ii) the date and time of receipt of the instructions for the
financial products transaction;
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Regulation 7.8.20A
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(iii) the date and time of transmission of the instructions to
the licensed market concerned;
(iv) the date and time of execution of the instructions;
(v) the source of the funds, or financial products, used to
effect the financial products transaction; and
(b) keep the records in a manner that makes the records
identifiable separately from records of the financial services
licensee.
Note: Other requirements for record-keeping are in Division 6 of Part 7.8 of
the Act.
7.8.20A Dealings involving employees of financial service licensees—
risk insurance products
For subsection 991F(1) of the Act, a financial services licensee and
one or more employees of the financial services licensee may, on
their own behalves, jointly acquire a financial product if it is a risk
insurance product as defined in section 761A of the Act.
7.8.21 Dealings involving employees of financial services licensees
(1) For subsection 991F(2) of the Act, that subsection does not have
effect in relation to:
(a) a bank; or
(b) a body corporate that gives credit in good faith to a person
(not being a director of the body corporate) employed by the
body corporate, or by another body corporate that is related
to the first body corporate, to enable the person to acquire
financial products that are:
(i) fully paid shares in the body corporate; and
(ii) to be held in beneficial ownership by the person.
(1A) For subsection 991F(2) of the Act, that subsection does not have
effect in relation to a financial services licensee that gives credit in
good faith to a person employed by:
(a) the financial services licensee; or
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Regulation 7.8.21
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(b) a person related to the financial services licensee;
to enable the person to acquire an insurance product in relation to a
credit facility provided by the financial services licensee to the
person.
Example: Mortgage insurance is an insurance product in relation to a credit
facility.
(2) For subsection 991F(3) of the Act, a body corporate that is related
to a financial services licensee may act as the agent of an employee
of the financial services licensee, in respect of the acquisition
mentioned in that subsection, only if:
(a) before the acquisition, the employee has informed the related
body corporate that the employee is acquiring, or agreeing to
acquire, the financial product on the employee’s own behalf;
and
(b) the financial services licensee has in place arrangements with
the related body corporate to allow the licensee to be
informed of, and to gain access to records relating to, the
acquisition.
(3) For subsection 991F(3) of the Act, a body corporate may act as the
agent of a person who is an employee of a financial services
licensee that is a participant in a licensed market and is so
employed in connection with a business of dealing in financial
products, in respect of an acquisition mentioned in that subsection,
if:
(a) the body corporate holds an Australian financial services
licence; and
(b) the body corporate is a participant in the same licensed
market as the licensee; and
(c) the employer has given consent in writing to the particular
acquisition before the acquisition takes place; and
(d) the employee gives the employer a copy of the confirmation
of the transaction.
(4) For subsection 991F(3) of the Act, a person who is:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.8 Other provisions relating to conduct etc connected with financial products and
financial services, other than financial product disclosure
Regulation 7.8.21A
136 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) an employee of a financial services licensee that is a
participant in a licensed market; and
(b) employed in connection with a business of dealing in
financial products;
may, on the person’s own behalf, acquire, or agree to acquire, a
financial product that is able to be traded on that licensed market,
without the licensee’s acting as an agent in respect of the
transaction, if the person’s employment is not directly connected
with the licensee’s business of dealing in financial products on that
licensed market.
(5) Subject to subregulation (6), for subsection 991F(3) of the Act, the
subsection does not apply unless:
(a) the particular financial product that is acquired or proposed
to be acquired is a financial product traded on a market in
which the financial services licensee is not a participant at the
time of the acquisition or the proposed acquisition; or
(b) the particular financial product is a derivative the value of
which is derived from a financial product mentioned in
paragraph (a).
(6) Subregulation (5) does not apply if:
(a) the financial services licensee deals, or has dealt, in a
financial product traded on that market:
(i) on the licensee’s own behalf (whether directly or
through an agent or other representative); or
(ii) on behalf of a client; or
(b) an associate of the financial services licensee is a participant
in the market mentioned in that subregulation.
7.8.21A Anti-hawking provisions if no Product Disclosure Statement
is required
For paragraph 992C(1)(c), Part 7.8 of the Act applies as if the
following subsection was inserted after subsection 992A(3):
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Other provisions relating to conduct etc connected with financial products and financial
services, other than financial product disclosure Part 7.8
Regulation 7.8.21B
Corporations Regulations 2001 137
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
“(3AA) Paragraphs 992A(3)(c), (d) and (e) do not apply to a person that
offers a financial product mentioned in paragraph 1012D(7A)(a) if
the regulated person complies with the requirements of paragraphs
1012D(7A)(b) to (e) in respect of the product.”
7.8.21B Anti-hawking provisions if no Product Disclosure Statement
is required—carbon units, Australian carbon credit units
and eligible international emissions units
For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act applies in
relation to a carbon unit, an Australian carbon credit unit or an
eligible international emissions unit as if paragraphs 992A(3)(c),
(d) and (e) (including the note) read as follows:
“(c) informed that:
“(i) for a carbon unit, the person should consider all
information about the financial product that is published
on the website of the Clean Energy Regulator as
mentioned in section 202 of the Clean Energy Act 2011
before becoming bound to acquire a financial product;
and
(ii) for an Australian carbon credit unit, the person should
consider all information about the financial product that
is published on the website of the Clean Energy
Regulator as mentioned in section 162 of the Carbon
Credits (Carbon Farming Initiative) Act 2011 before
becoming bound to acquire a financial product; and
(iii) for an eligible international emissions unit, the person
should consider all information about the financial
product that is published on the website of the Clean
Energy Regulator as mentioned in section 61 of the
Australian National Registry of Emissions Units Act
2011 before becoming bound to acquire a financial
product; and
(d) clearly informed of the importance of using that information
when making a decision to acquire a financial product; and
(e) given the option of having the information on that website
read out to that person.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.8 Other provisions relating to conduct etc connected with financial products and
financial services, other than financial product disclosure
Regulation 7.8.22
138 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Note: Failure to comply with this subsection is an offence (see
subsection 1311(1)).”.
7.8.22 Hours for hawking certain financial products
For paragraph 992A(3)(a) of the Act, the prescribed hours are from
8 am to 9 pm on a day in the State or Territory in which the person
to whom the offer is made is located, excluding:
(a) any Sunday; and
(b) New Year’s Day; and
(c) Australia Day; and
(d) Good Friday; and
(e) the Monday following Good Friday (Easter Monday); and
(f) Anzac Day; and
(g) Christmas Day; and
(h) 26 December (Boxing Day).
7.8.22A Modification of Part 7.8
(1) For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act applies as
if paragraph 992A(3)(e) of the Act were modified so as to read:
‘(e) given:
(i) the name and contact details of the product
issuer; and
(ii) an indication of the nature of the information
contained in the Product Disclosure Statement
relating to the product; and
(iii) the option of receiving, by way of oral
communication, any information that is
required to be included in a Product Disclosure
Statement for the product.’.
(2) For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act applies as
if the following subsection were added after subsection 992A(3A)
of the Act:
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Other provisions relating to conduct etc connected with financial products and financial
services, other than financial product disclosure Part 7.8
Regulation 7.8.22B
Corporations Regulations 2001 139
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
‘(3B) A regulated person must not influence a client’s decision to
elect not to receive the information mentioned in
paragraph (3)(e) (other than by asking the client if he or she
wishes to do so).’.
7.8.22B Return of financial product: first home saver accounts
(1) For paragraph 992A(4)(b) of the Act, this regulation applies in
relation to an FHSA.
(2) If the FHSA holder has never held another FHSA, it is a
requirement of the exercise of the right to return the FHSA in
circumstances in which the moneys paid to acquire the FHSA are
subject to payment restrictions that:
(a) the FHSA holder must:
(i) notify the FHSA provider, in writing or electronically,
that the FHSA holder wishes to exercise the right to
return the FHSA; and
(ii) ask the FHSA provider to pay the entire balance of the
FHSA to the FHSA holder; and
(iii) give the FHSA provider a written declaration that the
FHSA holder has never previously held an FHSA; or
(b) the FHSA holder must:
(i) notify the FHSA provider, in writing or electronically,
that the FHSA holder wishes to exercise the right to
return the FHSA; and
(ii) no later than 1 month after notifying the FHSA
provider, ask the FHSA provider to pay the entire
balance of the FHSA to another FHSA nominated in the
request.
(3) If the FHSA holder has held another FHSA, it is a requirement of
the exercise of the right to return the FHSA in circumstances in
which the moneys paid to acquire the FHSA are subject to payment
restrictions that the FHSA holder must:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.8 Other provisions relating to conduct etc connected with financial products and
financial services, other than financial product disclosure
Regulation 7.8.23
140 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) notify the FHSA provider, in writing or electronically, that
the FHSA holder wishes to exercise the right to return the
FHSA; and
(b) no later than 1 month after notifying the FHSA provider, ask
the FHSA provider to pay the entire balance of the FHSA to
another FHSA nominated in the request.
7.8.23 Return of financial product: transfer between superannuation
entities or RSAs
(1) For paragraph 992A(4)(b) of the Act, this regulation applies in
relation to a superannuation product or an RSA product that has
been issued to the holder of the product as a result of a transfer
between superannuation entities or RSAs.
(2) It is a requirement of the exercise of the right to return the
superannuation product or RSA product that, if the money to be
repaid includes:
(a) restricted non-preserved benefits; or
(b) preserved benefits;
the holder of the superannuation product, or the RSA holder, must
nominate a superannuation fund, approved deposit fund or RSA
into which the money representing restricted non-preserved
benefits or preserved benefits is to be repaid.
(3) For paragraph 992A(4)(b) of the Act, if the right of return is
exercised, the responsible person must return the money as
directed.
7.8.24 Right of return not to apply
For subparagraph 992A(4)(c)(i) of the Act, the following
subclasses of financial products are excluded from
subsection 992A(4) of the Act:
(a) a financial product offered or issued under a distribution
reinvestment plan or switching facility;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Other provisions relating to conduct etc connected with financial products and financial
services, other than financial product disclosure Part 7.8
Regulation 7.8.25
Corporations Regulations 2001 141
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) a financial product the acquisition of which is an additional
contribution required by an existing agreement or contract;
(c) a financial product issued as consideration for an offer made
under a takeover bid under Chapter 6 of the Act;
(d) an interim contract of insurance within the meaning of
subsection 11(2) of the Insurance Contracts Act 1984;
(e) a superannuation product that is issued in relation to:
(i) a non-public offer superannuation entity; or
(ii) a public offer superannuation entity mentioned in
paragraph 7.6.01(1)(b), (c) or (d);
(f) a risk insurance product that is:
(i) of less than 12 months duration; and
(ii) a renewal of an existing product on the terms and
conditions to which the product is currently subject.
7.8.25 Variation of amount to be repaid
For paragraph 992A(4)(b) of the Act, if a financial product is
subject to a distribution, the amount that would otherwise be repaid
on the exercise of the right to return the financial product may be
reduced by the amount of that distribution.
7.8.26 Exemption from application of section 992A of the Act
For paragraph 992C(1)(a) of the Act, section 992A of the Act does
not apply to a person to the extent that the person is offering a
financial product for issue or sale in relation to:
(a) a litigation funding scheme mentioned in
regulation 5C.11.01; or
(b) a litigation funding arrangement mentioned in
regulation 5C.11.01.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 1 Preliminary
Regulation 7.9.01
142 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 7.9—Financial product disclosure and other
provisions relating to issue and sale of
financial products
Division 1—Preliminary
7.9.01 Interpretation
(1) In this Part:
amount includes a nil amount.
annuity has the same meaning as in regulation 1.05 of the SIS
Regulations.
contact details, in relation to a superannuation entity, means:
(a) the name of the superannuation entity and, if relevant, of the
sub-plan; and
(b) a contact address for the superannuation entity; and
(c) a contact person and telephone number for the contact
person.
contact person, in relation to a superannuation entity, means a
named individual, or a person holding a designated office or
position, who is available to receive and deal with inquiries or
complaints by product holders (as the case may be).
contribution includes a benefit that is rolled over or transferred to
a fund.
exit charge means a charge that:
(a) is made against:
(i) a product holder’s benefits in a fund or financial
product; or
(ii) a product holder or another person on the product
holder’s behalf; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Preliminary Division 1
Regulation 7.9.01
Corporations Regulations 2001 143
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) is only made when a payment is:
(i) made in respect of a product holder; or
(ii) transferred.
fund information:
(a) in relation to a superannuation product, means information:
(i) relating to the management, financial condition and
investment performance of either or both of a
superannuation entity and any relevant sub-plan (within
the meaning of section 1017DA of the Act); and
(ii) required to be given under this Division; and
(b) in relation to an RSA product, means information:
(i) relating to the management, financial condition and
investment performance of an RSA; and
(ii) required to be given under this Division.
fund reporting period means a reporting period for fund
information.
Government co-contribution means a Government co-contribution
payable under the Superannuation (Government Co-contribution
for Low Income Earners) Act 2003.
legal personal representative has the meaning given by section 10
of the SIS Act.
lost member has the meaning given by the SIS regulations.
lost RSA holder has the meaning given by the RSA regulations.
net amount of Government co-contribution received means all
amounts of Government co-contributions credited to the member
of a superannuation fund (other than a self-managed
superannuation fund) or an RSA holder, less any amounts deducted
by the superannuation provider or providers to reimburse it or them
for repaying a co-contribution amount to the Commissioner of
Taxation, during the reporting period.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 1 Preliminary
Regulation 7.9.01
144 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
net earnings means the investment return on the assets of a fund
after payment of transaction costs, government charges, taxes and
duties and charges relating to the management of investment of
fund assets.
prescribed net earnings rate, in relation to a fixed-rate option
offered by a capital guaranteed fund for a period, means the net
earnings rate declared, in advance, by the fund.
remuneration, for an Australian financial services licensee or an
authorised representative, means a payment that:
(a) is made to the Australian financial services licensee or
authorised representative because a superannuation interest is
issued to a member; and
(b) is not made under an agreement by which the member, or
another person on the member’s behalf, has retained the
Australian financial services licensee or authorised
representative on a fee-for-service basis.
Note: Also see subregulation (5).
RSA has the meaning given by section 8 of the Retirement Savings
Accounts Act 1997.
sub-fund, in relation to a capital guaranteed fund, means a segment
of a public offer superannuation fund that has the following
characteristics:
(a) the sub-fund has separately identifiable assets and separately
identifiable beneficiaries;
(b) the interest of each beneficiary of the sub-fund is determined
by reference only to the conditions governing that sub-fund;
(c) there is no transfer of assets, benefits or money between the
sub-fund and another sub-fund without a transfer of a
corresponding beneficial interest;
(d) the insurance and administration costs of the sub-fund are
attributable only to that sub-fund.
superannuation provider means any of the following:
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Preliminary Division 1
Regulation 7.9.01
Corporations Regulations 2001 145
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the trustee of a complying superannuation fund, within the
meaning of subsection 995-1(1) of the Income Tax
Assessment Act 1997;
(b) the provider of an RSA, within the meaning of section 12 of
the Retirement Savings Accounts Act 1997;
(c) the trustee of a constitutionally protected fund, within the
meaning of subsection 995-1(1) of the Income Tax
Assessment Act 1997.
transaction cost means:
(a) brokerage paid because of an investment transaction; or
(b) a cost arising from maintenance of a property investment; or
(c) stamp duty on an investment transaction.
unfunded defined benefits fund means a defined benefits fund
under which all or some of the amounts that will be required for
the payment of a benefit are not paid into the fund until the
member concerned becomes entitled to receive the benefit.
withdrawal benefit has the same meaning as in the SIS
Regulations.
(2) In this Part, unless the contrary intention appears, a reference to a
member is taken to mean:
(a) in relation to a superannuation entity—a person who:
(i) is a member of the entity; or
(ii) receives a pension from the entity; or
(iii) has deferred his or her entitlement to receive a benefit
from the entity; and
(b) in relation to an approved deposit fund—a depositor in the
fund; and
(c) in relation to a pooled superannuation trust—a unit-holder.
(3) In a Division of this Part, a reference to a fund is a reference to a
fund of the kind to which the Division applies.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 1 Preliminary
Regulation 7.9.02
146 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(5) For the definition of remuneration, payment is taken to have been
given to an Australian financial services licensee or an authorised
representative for issuing an interest to a member if:
(a) issuing the interest is taken into account to increase the
payment given to the Australian financial services licensee or
authorised representative for other matters (for example,
bonus commission); or
(b) the payment is given after the interest is issued and only if
the member remains a member of the fund (for example,
trailing commission).
7.9.02 Sub-plans
(1) This regulation applies if the trustee of a regulated superannuation
fund proposes to make a determination as to whether a sub-plan
should be made.
(2) In making a determination, the trustee must have regard to all
relevant matters, including each of the following:
(a) whether there is a common factor in a segment of the fund
(for example, whether a group of members of the fund have
the same employer);
(b) whether the governing rules of the fund provide for a
particular segment to be a sub-plan.
(3) For subsection 1017C(9) of the Act, the sub-plan is a relevant
sub-plan.
(4) For paragraph 761E(7)(a) of the Act, if:
(a) a person is a member of a superannuation fund in relation to
a sub-plan; and
(b) either:
(i) the person’s membership changes to membership in
relation to another sub-plan; or
(ii) the person holds interests in 2 or more sub-plans at the
same time;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Preliminary Division 1
Regulation 7.9.02A
Corporations Regulations 2001 147
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
the change to membership in relation to the other sub-plan is taken
to be the issue of a new interest in the superannuation fund.
(5) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to the fund (including a
sub-plan) as set out in Part 1 of Schedule 10A.
7.9.02A Alternative ways of giving Statement
(1) For subsection 1015C(4) of the Act, the following are alternative
ways of giving a Statement to a person:
(a) making the Statement available to the person in any way that:
(i) is agreed to by the person; and
(ii) allows the regulated person to be satisfied, on
reasonable grounds, that the person has received the
Statement;
(b) making the Statement available to the person’s agent in any
way that:
(i) is agreed to by the agent; and
(ii) allows the regulated person to be satisfied, on
reasonable grounds, that the agent has received the
Statement.
(2) If a provision of the Act or these Regulations imposes additional
requirements in relation to a matter in subregulation (1), the
alternative way of giving a Statement is subject to the
requirements.
Note: Regulation 7.9.02B is an example of an additional requirement.
7.9.02B Product Disclosure Statement in electronic form
(1) For paragraph 1015C(5)(b) of the Act, a statement that is to be
given in electronic form must, as far as practicable, be presented in
a way that will allow the person to whom it is given to keep a copy
of it so that the person can have ready access to it in the future.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 1 Preliminary
Regulation 7.9.02B
148 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) A statement that is to be given in electronic form must be presented
in a way that clearly identifies the information that is part of the
statement.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Arrangements for Product Disclosure Statements in relation to superannuation products
and RSA products Division 2
Regulation 7.9.03
Corporations Regulations 2001 149
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2—Arrangements for Product Disclosure
Statements in relation to superannuation
products and RSA products
Subdivision 2.1—Preliminary
7.9.03 Application of Division 2
This Division applies in relation to superannuation products and
RSA products.
Note: See paragraphs 764A(1)(g) and (h) of the Act.
Subdivision 2.2—Late provision of Product Disclosure
Statement for certain members of regulated
superannuation fund, public offer superannuation
fund or successor fund
7.9.04 Product Disclosure Statement to be provided later
(1) For section 1012F of the Act, the following superannuation
products are specified:
(a) a superannuation interest issued by the trustee of a regulated
superannuation fund that is not a public offer superannuation
fund, other than:
(ii) a financial product taken to be issued because of
regulation 7.1.04E; or
(iii) an annuity or pension taken to be issued because of
subregulation 7.9.02(4); or
(iv) an interest in a self-managed superannuation fund that is
not acquired at the time that the fund is established;
(b) a pension issued by a superannuation fund the rules of which
do not allow a member to receive accumulated benefits in a
form other than a pension from that fund;
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 2 Arrangements for Product Disclosure Statements in relation to
superannuation products and RSA products
Regulation 7.9.05
150 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) a superannuation interest issued by the trustee of a successor
fund in relation to the transfer of benefits in the fund.
(2) For paragraph 1020G(1)(c) of the Act:
(a) section 1012B of the Act is modified in its application in
relation to the specified superannuation product as set out in
Part 17 of Schedule 10A; and
(b) section 1012I of the Act is modified in its application in
relation to the specified superannuation product as set out in
Part 17 of Schedule 10A.
Subdivision 2.3—Product Disclosure Statement for retirement
savings account
7.9.05 Situation in which Product Disclosure Statement is not
required
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to an RSA product as set out
in Part 2 of Schedule 10A.
Subdivision 2.4—Additional obligations for eligible rollover
funds
7.9.06A Relevant superannuation entities
For the definition of relevant superannuation entity in
subsection 1016A(1) of the Act, a public offer superannuation
entity is specified.
7.9.06B Application forms
(1) For paragraph 1016A(2)(f) of the Act, the following situation in
which a restricted issue occurs is prescribed:
(a) the financial product is a superannuation product;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Arrangements for Product Disclosure Statements in relation to superannuation products
and RSA products Division 2
Regulation 7.9.07
Corporations Regulations 2001 151
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the interest is issued by the trustee of a public offer
superannuation entity in relation to the payment of benefits to
the entity:
(i) from an EPSSS; and
(ii) in accordance with an application made under the
provisions of section 243 of the SIS Act, as applied by
subregulation (2) (the applied provisions);
(c) if the application is the first application under the applied
provisions made to the trustee of the public offer
superannuation entity by the trustee of the EPSSS on behalf
of any person—the application is an eligible application.
(2) For paragraph (1)(b), section 243 of the SIS Act applies in relation
to the payment of benefits from the EPSSS to a public offer
superannuation entity as if:
(a) a reference in that section to a transferor fund were a
reference to the EPSSS; and
(b) a reference in that section to an eligible rollover fund were a
reference to the public offer superannuation entity.
Subdivision 2.5—Product Disclosure Statement for insurance
options
7.9.07 Modification of Act: Product Disclosure Statement in relation
to insurance options
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to a superannuation entity or
an RSA as set out in Part 3 of Schedule 10A.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 2A Product Disclosure Statement for warrants
Regulation 7.9.07A
152 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2A—Product Disclosure Statement for warrants
7.9.07A Warrants
(1) This regulation applies in relation to warrants.
(2) For paragraph 1020G(2)(a) of the Act, section 1010A of the Act is
modified by adding after subsection 1010A(1):
‘(1A) Despite subsection (1), this Part applies in relation to a
financial product to which regulation 7.9.07A of the
Corporations Regulations 2001 applies.’.
(3) For paragraph 761E(7)(a) of the Act, if the financial product is
entered into, or acquired, on a financial market through an
arrangement made by a financial services licensee acting on behalf
of another person:
(a) the financial services licensee is not taken to be the issuer of
the financial product; and
(b) the warrant issuer is taken to be the issuer of the financial
product.
(4) For paragraph 761E(7)(a) of the Act, if the financial product is
entered into, or acquired, on a financial market through an
arrangement made by an authorised representative of a financial
services licensee acting on behalf of another person (not being the
licensee):
(a) the financial services licensee is not taken to be the issuer of
the financial product; and
(b) the warrant issuer is taken to be the issuer of the financial
product.
(5) For paragraph 1013F(2)(f) of the Act:
(a) information that is, or is required to be, disclosed to the
market in relation to the underlying thing from which a
warrant derives its value, including information published by
a market operator in relation to financial products (including
warrants and types of warrants) in the form of market data or
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Product Disclosure Statement for warrants Division 2A
Regulation 7.9.07A
Corporations Regulations 2001 153
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
educational material which is generally made available to the
public by the market operator is a matter that may be taken
into account for section 1013F of the Act; and
(b) other information that a market operator is required to
disclose to the market, in accordance with the Act, including:
(i) information that was required to be disclosed to the
market operator; and
(ii) information that the operator was required to disclose in
order to meet its obligations under the Act;
is a matter that may be taken into account for section 1013F
of the Act; and
(c) information that is generally made available to the public by
a market operator in relation to financial products, including
information published about a warrant that is entered into or
acquired on a financial market in the form of market data or
educational material, is a matter that may be taken into
account for section 1013F of the Act.
(6) For paragraph 1017B(3)(c) of the Act, a way in which the warrant
issuer may notify a holder of a matter to which that paragraph
applies is by giving the relevant information to the operator of the
financial market on which the warrant was entered into or
acquired.
(7) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
in relation to a warrant as if the words ‘but not more than 3 months
after, the change or event occurs’ in item 1 of the table in
subsection 1017B(5) of the Act were omitted.
(8) In this regulation:
warrant issuer, in relation to a warrant, means the person who:
(a) determines the terms of the warrant, including the rights and
conditions of the warrant; and
(b) is responsible for obligations owed under the terms of the
warrant.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 2B Product Disclosure Statement for market-traded derivatives
Regulation 7.9.07B
154 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2B—Product Disclosure Statement for
market-traded derivatives
7.9.07B Product Disclosure Statements for certain market-traded
derivatives
(1) For paragraph 1020G(1)(c) of the Act, subregulations (2) and (3)
apply if:
(a) the standard terms and conditions relating to a type of
derivative are:
(i) specified by the market operator; and
(ii) made generally available to the public; and
(b) the financial services licensee in relation to the derivative is
taken to be the issuer of the derivative under
subsection 761E(6) of the Act; and
(c) a retail client for the derivative has agreed to the terms and
conditions as applicable to the financial product or products
that are the subject of the transaction.
(2) Subsection 1013D(1) of the Act is modified in its application to the
derivative as if the information required by paragraphs
1013D(1)(b), (c), (d) and (f) were required to be included as
general information about the type of derivative, including, for
example:
(a) general information about exercise prices for the type of
derivative; and
(b) general information about expiry dates for the type of
derivative; and
(c) general information about exercise styles for the type of
derivative.
(3) For paragraph 1013F(2)(f) of the Act:
(a) information that is, or is required to be, disclosed to the
market in relation to the underlying thing from which a
derivative derives its value, including information published
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Product Disclosure Statement for market-traded derivatives Division 2B
Regulation 7.9.07C
Corporations Regulations 2001 155
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
by a market operator in relation to financial products
(including derivatives and types of derivatives) in the form of
market data or educational material which is generally made
available to the public by the market operator is a matter that
may be taken into account for section 1013F of the Act; and
(b) other information that a market operator is required to
disclose to the market, in accordance with the Act, including:
(i) information that was required to be disclosed to the
market operator; and
(ii) information that the operator was required to disclose in
order to meet its obligations under the Act;
is a matter that may be taken into account for section 1013F
of the Act; and
(c) information that is generally made available to the public by
a market operator in relation to financial products, including
information published about derivatives and types of
derivatives in the form of market data or educational
material, is a matter that may be taken into account for
section 1013F of the Act.
7.9.07C Remedies for Product Disclosure Statements for certain
market-traded derivatives
For paragraph 1016F(7)(a) of the Act, financial products that are
derivatives are excluded from section 1016F if the operating rules
of a licensed market or a licensed CS facility permit the closing out
of the derivatives by the matching up of the arrangement with
another arrangement of the same kind under which a person has
assumed an offsetting position.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 2BA Product Disclosure Statement for discretionary mutual funds
Regulation 7.9.07CA
156 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2BA—Product Disclosure Statement for
discretionary mutual funds
7.9.07CA Extension of Product Disclosure Statement requirements
to wholesale clients
(1) For paragraph 949B(1)(e) of the Act, a regulated person must give
a wholesale client a Product Disclosure Statement or a
Supplementary Product Disclosure Statement for a financial
product if:
(a) the financial product is offered or issued by a discretionary
mutual fund (within the meaning given by subsections 5(5)
and (6) of the Financial Sector (Collection of Data) Act
2001); and
(b) the regulated person would be required to give the Statement
if the product were offered or issued to a retail client.
(2) The Product Disclosure Statement or Supplementary Product
Disclosure Statement required to be given under this regulation
must be the same as that which would be given to a retail client.
Note: Failure to comply with this regulation is an offence punishable by a
fine of up to 50 penalty units or imprisonment for 1 year, or both—see
section 1311 and item 272A of Schedule 3 to the Corporations Act
2001.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Situations where a Product Disclosure Statement is not required Division 2C
Regulation 7.9.07D
Corporations Regulations 2001 157
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2C—Situations where a Product Disclosure
Statement is not required
7.9.07D Product Disclosure Statement not required for offers of
bundled contracts of insurance
For paragraph 1020G(1)(c) of the Act, section 1012D of the Act is
modified by adding before subsection 1012D(10):
‘(9G) In an issue situation or a sale situation, the regulated person
does not have to give the client a Product Disclosure
Statement for a financial product if:
(a) the financial product is a general insurance product; and
(b) the product would be provided to the person as a retail
client; and
(c) the financial product would be provided as part of a
contract of insurance that offers more than one kind of
insurance cover; and
(d) the regulated person reasonably believes that the client
does not intend to acquire the product.
7.9.07E Product Disclosure Statement not required if offer of
financial product is declined
For paragraph 1020G(1)(c) of the Act, section 1012D of the Act is
modified by adding before subsection 1012D(10):
‘(9J) In an issue situation or sale situation, the regulated person
does not have to give the client a Product Disclosure
Statement for a financial product if:
(a) the situation is an offer to issue or sell the financial
product; and
(b) the client informs the regulated person, in the course of
the contact during which the offer is made, that the
client does not intend to acquire the financial product;
and
(c) no issue or sale results from the offer.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 2C Situations where a Product Disclosure Statement is not required
Regulation 7.9.07F
158 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(9K) For paragraph (9J)(c), the client must inform the regulated
person explicitly but may inform the regulated person orally
or in any other way.’.
7.9.07F Product Disclosure Statement not required if the client is not
contactable
For paragraph 1020G(1)(c) of the Act, section 1012D of the Act is
modified by adding before subsection 1012D(10):
‘(9L) In an issue situation, the regulated person does not have to
give the client a Product Disclosure Statement, if:
(a) the regulated person has not given the client a Product
Disclosure Statement because the regulated person did
not need to give a Product Disclosure Statement at or
before the time when it would otherwise be required to
be given because of the operation of section 1012F or
1012G of the Act, regulation 7.9.04 or Part 17 of
Schedule 10A; and
(b) either:
(i) the regulated person:
(A) has an address for the client; and
(B) is satisfied, on reasonable grounds that
the address is incorrect; and
(C) has taken reasonable steps to locate the
client but is unable to do so; or
(ii) the regulated person:
(A) does not have an address for the client;
and
(B) is unable to obtain an address for the
client; and
(C) has taken reasonable steps to locate the
client but has been unable to do so.
(9M) If a regulated person does not give a client a Product
Disclosure Statement in reliance on subsection (9L), and the
regulated person becomes aware of the address or location of
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Situations where a Product Disclosure Statement is not required Division 2C
Regulation 7.9.07FA
Corporations Regulations 2001 159
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
the client, the regulated person must give the client a Product
Disclosure Statement as soon as practicable.’.
7.9.07FA Product Disclosure Statement not required for certain
specified products
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if section 1012D of the Act were modified by inserting the
following subsection after subsection 1012D(7):
‘Recommendation, issue or sale situation—when Product
Disclosure Statement not required
(7A) In a recommendation situation, an issue situation or a sale
situation, the regulated person does not have to give the client a
Product Disclosure Statement for the financial product if:
(a) the product is:
(i) a basic deposit product; or
(ii) a facility for making non-cash payments (see
section 763D) that is related to a basic deposit product;
or
(iii) a traveller’s cheque; and
(b) the regulated person has provided information about the cost
of the product (if any) to the client; and
(c) the regulated person has informed the client as to whether or
not any amounts will or may be payable by the holder of the
product, in respect of the product, after its acquisition; and
(ca) if the product is a protected account under the Banking Act
1959—the regulated person has informed the client that:
(i) the account-holder may be entitled to payment under the
financial claims scheme; and
(ii) payments under the scheme are subject to a limit for
each depositor; and
(iii) information about the financial claims scheme can be
obtained from the APRA website at
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 2C Situations where a Product Disclosure Statement is not required
Regulation 7.9.07FB
160 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
http://www.apra.gov.au and the APRA hotline on
1300 13 10 60; and
(d) the regulated person has asked the client whether or not the
client would like further information about the amounts
mentioned in paragraph (c); and
(e) if the client indicates that the client would like the further
information about the amounts mentioned in paragraph (c)—
the regulated person has provided that information.’.
7.9.07FB Product Disclosure Statement not required if client not in
this jurisdiction
For paragraph 1020G(1)(c) of the Act, section 1012D of the Act is
modified by inserting after subsection 1012D(8):
“(8A) In a recommendation situation, an issue situation or a sale
situation, the regulated person does not have to give the client a
Product Disclosure Statement for the financial product if the client
is not in this jurisdiction.”
7.9.07FC Product Disclosure Statement not required general
insurance situation
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified by adding after section 1014E of the Act the following
section:
“1014EA General insurance product situation in which only a
supplementary product disclosure statement need be
given
(1) This section applies if:
(a) a person (the client) acquires a general insurance product (the
original product) from another person (the regulated
person); and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Situations where a Product Disclosure Statement is not required Division 2C
Regulation 7.9.07FC
Corporations Regulations 2001 161
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the client received a Product Disclosure Statement (the
original PDS) relating to the product as required by the Act;
and
(c) the contract of insurance provides a renewable insurance
cover (within the meaning of subsection 58(1) of the
Insurance Contracts Act 1984); and
(d) the regulated person offers to renew the client’s contract of
insurance (the new product); and
(e) the regulated person is required to give the client a Product
Disclosure Statement (the new PDS) relating to the new
product; and
(f) the original PDS contains some but not all of the information
that the new PDS is required to contain.
(2) The regulated person may give the client a new PDS.
(3) If the regulated person does not give the client a new PDS, the
regulated person must give the client a supplementary Product
Disclosure Statement that contains the additional information.
(4) If the regulated person gives the client a supplementary Product
Disclosure Statement under subsection (3), for the purposes of this
Act:
(a) the original PDS is taken to be the new PDS; and
(b) the new PDS is taken to have been given to the client as
required by this Act.”
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 2D Preparation and content of Product Disclosure Statements
Regulation 7.9.07J
162 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2D—Preparation and content of Product
Disclosure Statements
7.9.07J Only 1 responsible person for a Product Disclosure
Statement
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if section 1013A of the Act were modified by adding after
subsection 1013A(3):
‘(3A) A Product Disclosure Statement for a product that is not a
jointly issued product may be prepared by, or on behalf of,
only 1 responsible person.’.
7.9.07K Definition of defective: Product Disclosure Statement,
Short-Form PDS or Replacement Product Disclosure
Statement
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if section 1022A of the Act were varied by omitting
paragraph (b) of the definition of defective in subsection (1) and
the following paragraph were inserted:
‘(b) if it is a Product Disclosure Statement, a Short-Form PDS or
a Replacement Product Disclosure Statement—either:
(i) it is not prepared in accordance with section 1013A; or
(ii) there is an omission from the Product Disclosure
Statement, Short-Form PDS or Replacement Product
Disclosure Statement of material required by
section 1013C, other than material required by
section 1013B or 1013G; or’.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Obligation to make information publicly available: registrable superannuation entities
Division 2E
Regulation 7.9.07L
Corporations Regulations 2001 163
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2E—Obligation to make information publicly
available: registrable superannuation entities
Subdivision 2E.1—Obligation to make product dashboard
publicly available
7.9.07L Modification of Act
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if section 1017BA of the Act were modified as set out in Part 6A
of Schedule 10A.
7.9.07M Source of power for this Subdivision
This Subdivision is made for paragraphs 1017BA(1)(c) and (e) and
subsection 1017BA(2) of the Act.
7.9.07N Definitions
In this Subdivision:
lifecycle exception has the meaning given by subsection 29TC(2)
of the SIS Act.
lifecycle MySuper product means a MySuper product to which a
lifecycle exception applies.
lifecycle stage, of a MySuper product offered by a regulated
superannuation fund, means a subclass of members of the fund
who hold the MySuper product, determined on the basis of:
(a) age; or
(b) age and the factors mentioned in regulation 9.47 of the SIS
Regulations.
offering period means:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 2E Obligation to make information publicly available: registrable
superannuation entities
Regulation 7.9.07N
164 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) for a MySuper product other than a lifecycle MySuper
product:
(i) if the MySuper product has been offered for less than 10
financial years and there is no predecessor product—the
number of whole financial years for which the product
has been offered; or
(ii) if the MySuper product and a predecessor product have
been offered for a total of less than 10 financial years—
the number of whole financial years for which the
products have been offered; or
(b) for a lifecycle stage of a lifecycle MySuper product:
(i) if the lifecycle stage of the MySuper product has been
offered for less than 10 financial years and there is no
equivalent lifecycle stage of a predecessor product—the
number of whole financial years for which the lifecycle
stage has been offered; or
(ii) if the lifecycle stage of the MySuper product and an
equivalent lifecycle stage of a predecessor product have
been offered for a total of less than 10 financial years—
the number of whole financial years for which the
lifecycle stage of the MySuper product and the
predecessor product have been offered.
predecessor product, in relation to a MySuper product, means a
default investment option in existence on 30 June 2013 in relation
to which, if a member’s accrued default amount were attributed to
the MySuper product, the RSE licensee would be exempted from
disclosure requirements under subregulation 9.46(2) of the SIS
Regulations.
reporting standard means a reporting standard determined by
APRA under subsection 13(1) of the Financial Sector (Collection
of Data) Act 2001, as in force from time to time.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Obligation to make information publicly available: registrable superannuation entities
Division 2E
Regulation 7.9.07P
Corporations Regulations 2001 165
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.07P Meaning of MySuper product dashboard reporting standards
For this Subdivision, a reporting standard is a MySuper product
dashboard reporting standard if the reporting standard contains a
clause stating that it relates to information that will be included in a
product dashboard for a MySuper product.
7.9.07Q Product dashboard—how information must be set out
(1) Information for a MySuper product must be set out in a product
dashboard as follows (including the headings):
PRODUCT DASHBOARD
Return target
Return
Comparison between return target
and return
Level of investment risk
Statement of fees and other costs
(2) For a lifecycle MySuper product, the information mentioned in
each item of the table must be set out in relation to each lifecycle
stage of the product.
7.9.07R Product dashboard—return target
(1) The return target for a MySuper product other than a lifecycle
MySuper product must be worked out in accordance with the
MySuper product dashboard reporting standards.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 2E Obligation to make information publicly available: registrable
superannuation entities
Regulation 7.9.07S
166 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) The return target for a lifecycle MySuper product must be worked
out in relation to each lifecycle stage of the product in accordance
with the MySuper product dashboard reporting standards.
(3) The period in relation to which the return target must be worked
out is the period of 10 years starting at the beginning of the current
financial year.
7.9.07S Product dashboard—return
MySuper product other than lifecycle MySuper product
(1) The return for a MySuper product other than a lifecycle MySuper
product must be worked out in accordance with the MySuper
product dashboard reporting standards.
(2) The period in relation to which the return must be worked out is:
(a) the last 10 whole financial years, if:
(i) the MySuper product has been offered for at least 10
financial years; or
(ii) the MySuper product and a predecessor product have
been offered for a total of at least 10 financial years; or
(b) the offering period.
Lifecycle MySuper product
(3) The return for a lifecycle MySuper product must be worked out in
relation to each lifecycle stage of the product in accordance with
the MySuper product dashboard reporting standards.
(4) The period in relation to which the return in relation to a lifecycle
stage of a lifecycle MySuper product must be worked out is:
(a) the last 10 whole financial years, if:
(i) the lifecycle stage of the MySuper product has been
offered for at least 10 financial years; or
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Obligation to make information publicly available: registrable superannuation entities
Division 2E
Regulation 7.9.07T
Corporations Regulations 2001 167
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) the lifecycle stage of the MySuper product and an
equivalent stage of a predecessor product have been
offered for a total of at least 10 financial years; or
(b) the offering period.
7.9.07T Product dashboard—comparison between return target and
return
MySuper product other than lifecycle MySuper product
(1) The comparison between the return target and the return for a
MySuper product other than a lifecycle MySuper product must be
worked out in accordance with the MySuper product dashboard
reporting standards.
(2) The period in relation to which the comparison must be worked out
is:
(a) the last 10 whole financial years, if:
(i) the MySuper product has been offered for at least 10
financial years; or
(ii) the MySuper product and a predecessor product, or a
lifecycle stage have been offered for a total of at least
10 financial years; or
(b) the offering period.
Lifecycle MySuper product
(3) The comparison between the return target and the return for a
lifecycle MySuper product must be worked out in relation to each
lifecycle stage of the product in accordance with the MySuper
product dashboard reporting standards.
(4) The period in relation to which the comparison in relation to a
lifecycle stage of a MySuper product must be worked out is:
(a) the last 10 whole financial years, if:
(i) the lifecycle stage of the MySuper product has been
offered for at least 10 financial years; or
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 2E Obligation to make information publicly available: registrable
superannuation entities
Regulation 7.9.07U
168 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) the lifecycle stage of the MySuper product and an
equivalent stage of a predecessor product have been
offered for a total of at least 10 financial years; or
(b) the offering period.
7.9.07U Comparison to be set out as a graph
(1) A product dashboard must set out a comparison mentioned in
regulation 7.9.07T as a graph.
(2) The graph must contain:
(a) a column representing the return for each year in the
comparison period; and
(b) a line representing the moving average return target for the
comparison period; and
(c) a line representing the moving average return for the
comparison period.
(3) The column and the lines mentioned in subregulation (2) must be
identified in accordance with the MySuper product dashboard
reporting standards.
(4) In this regulation:
comparison period means the period mentioned in
subregulation 7.9.07S(3) that is applicable in the circumstances.
moving average return has the meaning given by the MySuper
product dashboard reporting standards.
moving average return target has the meaning given by the
MySuper product dashboard reporting standards.
7.9.07V Product dashboard—level of investment risk
(1) The level of investment risk for a MySuper product other than a
lifecycle MySuper product must be worked out in accordance with
the MySuper product dashboard reporting standards.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Obligation to make information publicly available: registrable superannuation entities
Division 2E
Regulation 7.9.07W
Corporations Regulations 2001 169
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) The level of investment risk for a lifecycle MySuper product must
be worked out in relation to each lifecycle stage of the product in
accordance with the MySuper product dashboard reporting
standards.
(3) The level of investment risk must be expressed using the relevant
risk label set out in the MySuper product dashboard reporting
standards.
(4) The period in relation to which the level of investment risk must be
worked out is the current financial year.
7.9.07W Product dashboard—statement of fees and other costs
(1) The statement of fees and other costs for a MySuper product other
than a lifecycle MySuper product must be worked out in
accordance with the MySuper product dashboard reporting
standards.
(2) The statement of fees and other costs for a lifecycle MySuper
product must be worked out in relation to each lifecycle stage of
the product in accordance with the MySuper product dashboard
reporting standards.
(3) The period in relation to which the statement of fees and other
costs must be worked out is the current financial year.
(4) For paragraph 1017BA(1)(c) of the Act, the period is 14 days after
a change to the fees or other costs.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 3 Dealing with money received for financial product before the product is
issued
Regulation 7.9.08
170 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 3—Dealing with money received for financial
product before the product is issued
7.9.08 Accounts
(1) For subparagraph 1017E(2)(a)(ii) of the Act, the following
accounts are prescribed:
(a) an account with a foreign deposit taking institution that is
regulated by a foreign regulatory body that ASIC has
approved in writing for this paragraph;
(b) an account with a cash management trust;
(c) a statutory fund under section 29 of the Life Insurance Act
1995.
(2) For paragraph 1017E(2)(c) of the Act, a product provider to which
subsection 1017E(2) of the Act applies must:
(a) operate an account to which paragraph 1017E(2)(a) of the
Act applies as a trust account; and
(b) designate the account to be a trust account; and
(c) hold all moneys paid into the account on trust for the benefit
of the person who is entitled to the moneys.
(3) For paragraph 1020G(1)(c) of the Act, if money received under
section 1017E of the Act is paid into an account under
subregulation 7.8.01(6), Part 7.8 of the Act applies to the money.
Note: See also subregulation 7.8.01(7).
(4) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if section 1017E of the Act were modified by omitting
paragraph 1017E(2)(b) and inserting the following paragraph:
‘(b) any money may be paid into the account, provided that:
(i) money to which this section applies; and
(ii) interest on the amount from time to time standing to the
credit of the account;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Dealing with money received for financial product before the product is issued
Division 3
Regulation 7.9.08A
Corporations Regulations 2001 171
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
is identified and held in accordance with all other provisions
of this section; and’.
7.9.08A Dealing with interest
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if section 1017E of the Act were modified by adding after
subsection 1017E(2C):
‘(2D) In relation to money to which this section applies:
(a) the product provider is entitled to the interest on the
account; and
(b) the interest on the account is not required to be paid into
the account;
only if the product provider discloses to the person who paid
the money that the product provider is keeping the interest (if
any) earned on the account.’.
7.9.08B Crediting of payments before money is received
(1) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if section 1017E of the Act were modified by adding after
subsection 1017E(1):
‘(1A) This section also applies to money paid by a product provider
in the following circumstances:
(a) the product provider knows, or believes on reasonable
grounds, that money (the client’s money) will be paid to
the product provider to acquire, or acquire an increased
interest in, one or more of the financial products
mentioned in paragraph (1)(a) or (b) from the product
provider (whether or not the acquisition would be by a
person as a retail client);
(b) either:
(i) the financial product or increased interest was
offered in this jurisdiction; or
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 3 Dealing with money received for financial product before the product is
issued
Regulation 7.9.08C
172 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) the application for the financial product or
increased interest was made in this jurisdiction;
or
(iii) the money will be received in this jurisdiction;
(c) before receiving the client’s money, the product
provider pays an equivalent amount of money (the
product provider’s money) into an account described in
subsection (2).’.
(2) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if section 1017E of the Act were modified by adding after
subsection 1017E(5):
‘(5A) If subsection (1A) applies:
(a) the product provider is not required to comply with this
section in relation to the client’s money; and
(b) subsections (2A), (2B), (2C), (2D), (3), (4), (5) and (6)
apply to the product provider’s money as if the money
had been paid by the person who paid, or is expected to
pay, the client’s money.’.
(3) For paragraph 1017E(3)(d) of the Act, money may be taken out of
an account if:
(a) the circumstances described in the modified
subsection 1017E(1A) of the Act exist; and
(b) after paying the product provider’s money, the product
provider becomes aware, or has reasonable grounds to
believe, that the client’s money will not be paid.
7.9.08C Money held in trust for a superannuation product or RSA
product
For subsection 1017E(2C) of the Act, if money is paid to a product
provider for a financial product that is a superannuation product or
an RSA product, as defined in section 761A of the Act:
(a) subsection 1017E(2A) of the Act does not apply in relation to
the money; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Dealing with money received for financial product before the product is issued
Division 3
Regulation 7.9.08D
Corporations Regulations 2001 173
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the money is taken to be held in trust by the product provider
for the benefit of the person who is entitled to the money.
7.9.08D Statutory funds under the Life Insurance Act 1995
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
in relation to an account mentioned in paragraph 7.9.08(1)(c) of
these Regulations as if paragraph 1017E(2)(b) were omitted.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 3A Rights and obligations related to Product Disclosure Statement—first
home saver accounts
Regulation 7.9.08E
174 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 3A—Rights and obligations related to Product
Disclosure Statement—first home saver accounts
7.9.08E Application forms
For paragraph 1016A(2)(f) of the Act, the following situation in
which a restricted issue occurs is prescribed:
(a) an FHSA has become inactive as described in
subsection 22(1) of the First Home Saver Accounts Act 2008;
(b) the FHSA provider has sought to pay the entire balance of
the FHSA to the superannuation interest mentioned in
subsection 22(3) of that Act.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.09
Corporations Regulations 2001 175
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4—Content of Product Disclosure Statements
Subdivision 4.1—Preliminary
7.9.09 Application of Division 4
(1) This Division applies in relation to:
(a) superannuation products; and
(b) RSA products; and
(c) annuity products; and
(d) FHSA products; and
(e) a margin loan; and
(f) a superannuation product to which Subdivision 4.2B of
Division 4 of Part 7.9 applies; and
(g) a simple managed investment scheme to which
Subdivision 4.2C of Division 4 of Part 7.9 applies.
(2) Each of the Subdivisions of this Division has an application
provision:
(a) stating the types of entity in relation to which the Subdivision
applies; and
(b) referring to any provisions that limit or restrict the
application of the Subdivision or a particular provision.
Note: Information content requirements are set out in the main provisions of
section 1013D of the Act. These Regulations set out a more detailed
statement of the information required under subsection 1013D(1) that
the retail clients of superannuation products and RSA products would
reasonably require for the purpose of making a decision whether to
acquire the financial product.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.09A
176 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Subdivision 4.1A—No Product Disclosure Statement for carbon
units, Australian carbon credit units and eligible
international emissions units
7.9.09A Application of Subdivision
This Subdivision applies:
(a) to a person who, apart from this Subdivision, would be
required to give a Product Disclosure Statement for a carbon
unit, an Australian carbon credit unit or an eligible
international emissions unit; and
(b) in relation to a carbon unit, an Australian carbon credit unit
or an eligible international emissions unit.
7.9.09B Provisions of Part 7.9 of Act that do not apply in relation to
carbon units, Australian carbon credit units and eligible
international emissions units
For paragraph 1020G(1)(b) of the Act, the following provisions of
Part 7.9 of the Act do not apply in relation to a carbon unit, an
Australian carbon credit unit or an eligible international emissions
unit:
(a) subparagraph 1012A(3)(b)(i);
(b) subparagraph 1012A(3)(b)(ii);
(c) subparagraph 1012B(3)(a)(ii);
(d) paragraph 1012C(3)(b);
(e) paragraph 1012C(4)(c);
(f) subsection 1012C(6);
(g) section 1013A;
(h) section 1013B;
(i) section 1013C;
(j) section 1013D;
(k) section 1013E;
(l) section 1013F;
(m) section 1013G.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.09C
Corporations Regulations 2001 177
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.09C Modification of Act
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application to a carbon unit, an Australian carbon
credit unit or an eligible international emissions unit as set out in
Part 19 of Schedule 10A.
Subdivision 4.2—Content of Product Disclosure Statements for
First Home Saver Accounts
7.9.10 Application of Subdivision
(1) This Subdivision applies to:
(a) a person required to give a Product Disclosure Statement for
an FHSA product; and
(b) a Product Disclosure Statement for an FHSA product.
(2) However, if a Product Disclosure Statement consists of 2 or more
documents, this Subdivision (other than regulation 7.9.10C) applies
only to the document describing the default investment option for
the product.
7.9.10A Definitions
(1) In this Subdivision and in Schedule 10B:
default investment option, for a multiple investment option FHSA
product, is the investment option which is applied to the product if
the person who acquires the product does not choose an investment
option.
multiple investment option FHSA product means an FHSA
product that has 2 or more investment options.
(2) If a term used in this Subdivision or in Schedule 10B is used in the
First Home Saver Accounts Act 2008, the term has the same
meaning in this Subdivision or in Schedule 10B as it does in that
Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.10B
178 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Note: The following terms used in this Subdivision or in Schedule 10B are
defined in the First Home Saver Accounts Act 2008:
contribution
FHSA eligibility requirements
FHSA holder
FHSA mortgage payment
FHSA payment conditions
FHSA provider
FHSA trust
genuine mortgage
Government FHSA contribution
personal FHSA contribution
qualifying interest.
(3) In this Subdivision and in Schedule 10B, a provision of the Act
modified in accordance with regulation 7.9.10B is referred to as
modified.
Example: Subparagraph 1013C(1)(a)(i) of the Act as modified by item 5.4 of
Part 5 of Schedule 10A is referred to in this Subdivision as ‘modified
subparagraph 1013C(1)(a)(i)’.
7.9.10B Modification of Act
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application to FHSA products as set out in Part 5 of
Schedule 10A.
7.9.10C Product Disclosure Statement consisting of 2 or more
documents
(1) For modified subsection 1013L(7) of the Act, a Product Disclosure
Statement for an FHSA product must not consist of 2 or more
documents.
(2) However, the Product Disclosure Statement for a multiple
investment option FHSA product may consist of 2 or more
documents if:
(a) the document describing the default investment option
complies with this Subdivision; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.10D
Corporations Regulations 2001 179
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the other documents comply with the provisions of:
(i) the Act; and
(ii) regulations; and
(iii) any instruments made under the Act and the regulations;
that would apply to those documents but for the operation of
this Subdivision.
7.9.10D Manner of giving Product Disclosure Statement for first
home saver accounts
(1) For paragraph 1015C(5)(a) of the Act:
(a) if a Product Disclosure Statement:
(i) relates only to 1 or more FHSA products; and
(ii) is given to a person or the person’s agent personally;
the Statement for the FHSA product or products must be the
first document about FHSA products that is given to the
person or agent at that time, other than a covering letter of no
more than 1 page; but
(b) paragraph (a) does not require the Statement for the FHSA
product or products to be given to the person or agent at that
time before other documents that do not relate to the FHSA
product or products.
(2) For paragraph 1015C(5)(a) of the Act:
(a) if a Product Disclosure Statement:
(i) relates only to 1 or more FHSA products; and
(ii) is given by sending it to the address or fax number of a
person or the person’s agent;
the Statement for the FHSA product or products must be the
first document about FHSA products that is given to the
person or agent at that time, other than a covering letter or
fax coversheet of no more than 1 page; but
(b) paragraph (a) does not require the Statement for the FHSA
product or products to be given to the person or agent at that
time before other documents that do not relate to the FHSA
product or products.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.10E
180 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.10E Form and content of Product Disclosure Statement
(1) For modified subparagraphs 1013C(1)(a)(i) and (ii) of the Act, a
Product Disclosure Statement must:
(a) include the information and statements mentioned in
Schedule 10B; and
(b) be in the form mentioned in Schedule 10B.
(2) However, if strict compliance with subregulation (1) would result
in the Statement being misleading, the Statement must contain
explanations or qualifications so as to make the Statement no
longer misleading.
(3) Subregulation (2) does not require explanation or qualification of a
statement the text of which is specified in subitem 4(1), 5(1) or
6(1) of Schedule 10B.
(4) Also, ASIC may determine, in writing, that a provision of this
Subdivision or of Schedule 10B:
(a) does not apply to a Product Disclosure Statement for an
FHSA product; or
(b) applies to a Product Disclosure Statement for an FHSA
product as if specified provisions were omitted or modified
as set out in the determination.
Subdivision 4.2A—Form and content of Product Disclosure
Statement for margin loan
7.9.11 Application of Subdivision 4.2A
This Subdivision applies to:
(a) a person who is required to prepare a Product Disclosure
Statement for a margin loan; and
(b) a Product Disclosure Statement for a margin loan.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.11A
Corporations Regulations 2001 181
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.11A Provisions of Part 7.7 of Act that do not apply in relation to
margin loan
For paragraph 951C(1)(b) of the Act, section 942DA of the Act
does not apply in relation to a margin loan.
7.9.11B Definitions for Subdivision 4.2A
(1) In this Subdivision and in Schedule 10C:
Approved Securities List means the list of secured properties that
are acceptable for the provider or potential provider of a margin
loan as security for the margin loan and includes the amount of
credit the provider will give for each of the properties.
(2) In this Subdivision and in Schedule 10C, a provision of the Act
that is modified in accordance with regulation 7.9.11C is referred
to as modified.
Example: Paragraphs 1013C(1)(a) and (b) of the Act as modified by
subitem 5A.2(1) of Part 5A of Schedule 10A are referred to in this
Subdivision as ‘modified paragraphs 1013C(1)(a) and (b)’.
7.9.11C Modification of Act—margin loan
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application to a margin loan as set out in Part 5A of
Schedule 10A.
7.9.11D Form and content of Product Disclosure Statement for
margin loan
(1) For modified paragraph 1013C(1)(a) of the Act, a Product
Disclosure Statement for a margin loan must include the
information and statements mentioned in Schedule 10C.
(2) For modified paragraph 1013C(1)(b) of the Act, a Product
Disclosure Statement for a margin loan must be in the form
mentioned in Schedule 10C.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.11E
182 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.11E Requirements for references to incorporated information
for margin loan
(1) For subsection 1013C(1D) of the Act, as modified by Part 5A of
Schedule 10A, this regulation prescribes requirements for
applying, adopting or incorporating, in a Product Disclosure
Statement for a margin loan, a matter contained in writing.
(2) A Product Disclosure Statement may apply, adopt or incorporate a
matter only if a provision of these Regulations requires or permits
the matter to be applied, adopted or incorporated by the Statement.
(3) If a Product Disclosure Statement applies, adopts or incorporates a
matter:
(a) the matter must be:
(i) in writing; and
(ii) clearly distinguishable from any other matters that are
not applied, adopted or incorporated; and
(iii) publicly available in a document other than the
Statement; and
(b) the responsible person for the Statement must identify the
matter by:
(i) including in the Statement a concise description of the
matter; and
(ii) ensuring that the reference to the matter is clearly
distinguishable from the other contents of the
Statement; and
(c) the responsible person for the Statement must:
(i) identify each version of the matter (by including the
date on which the version was prepared) so that a person
who, at a particular time, is considering a margin loan
can identify the version that is relevant to the margin
loan at that time; and
(ii) state the date on which the version was prepared in a
prominent position at or near the front of the version;
and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.11E
Corporations Regulations 2001 183
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(d) the responsible person for the Statement must ensure that a
person who is relying on the Statement is able to have access
to:
(i) the matter; or
(ii) if there is more than 1 version of the matter—each
version;
reasonably easily and reasonably quickly.
(4) The responsible person for the Product Disclosure Statement must
also ensure that the Statement includes the statements in the
following table relating to the matter, and sets them out in each
place at which the matter has been applied, adopted or
incorporated.
Item Statement
1 You should read the important information about [the subject] before making a
decision. Go to [location of the matter that has been applied, adopted or
incorporated]
2 The material relating to [matter] may change between the time when you read
this Statement and the day when you sign the application form
(5) The responsible person for the Product Disclosure Statement must
also ensure that each document mentioned in subregulation (3)
includes the statement in the following table relating to the matter.
Item Statement
1 The information in this document forms part of the Product Disclosure
Statement [identification by name, date and version (if applicable) of each
Statement]
(6) For the avoidance of doubt:
(a) the giving of a Product Disclosure Statement to which this
Subdivision applies is taken to be the giving of every matter
that is applied, adopted or incorporated in accordance with
subregulations (1) to (5); and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.11F
184 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) if a document mentioned in subparagraph (3)(a)(iii) refers to
more than one PDS, the document:
(i) must include a statement to the effect that the
information in the document forms part of the Product
Disclosure Statement offered by the responsible entity;
but
(ii) is not required to name each Product Disclosure
Statement of which it forms part.
(7) If the Product Disclosure Statement applies, adopts or incorporates
a matter, the information dealing with the matter is taken to have
been given to a person on the day on which the person signs the
application form accompanying the Statement.
7.9.11F Retention of copies of Product Disclosure Statement for
margin loan
(1) The responsible person for a Product Disclosure Statement for a
margin loan must retain a copy of each version of the Statement
that the responsible person issues for a period of 7 years starting on
the day on which the version is prepared.
(2) The responsible person for the Product Disclosure Statement must
retain a copy of the document from which a matter is applied,
adopted or incorporated by the Statement as mentioned in
paragraph 7.9.11E(3)(c) for a period of 7 years commencing on the
day on which the Statement is prepared.
(3) If a document from which a matter is adopted, applied or
incorporated by the Product Disclosure Statement as mentioned in
paragraph 7.9.11E(3)(c) is changed in a way that changes the
description of, or reference to, the matter, the responsible person
for the Statement must retain a copy of the document for a period
of 7 years commencing on the day on which the document is
changed.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.11G
Corporations Regulations 2001 185
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.11G Requirement to provide copy of Product Disclosure
Statement for margin loan free of charge
(1) For paragraph 1015C(5)(a) of the Act, this regulation specifies
requirements as to the manner in which a Product Disclosure
Statement for a margin loan must be given to a person if the person
requests a copy of the Statement.
(2) The responsible person for the Product Disclosure Statement must
give the person, free of charge:
(a) a copy of the Statement within 8 business days; and
(b) a copy of a matter in writing that is applied, adopted or
incorporated by the Statement within 8 business days.
7.9.11H Notification about change to Approved Securities List or
current interest rate for margin loan
(1) For paragraph 1017B(1A)(b) of the Act, a change to the Approved
Securities List or current interest rate for a margin loan is specified.
(2) For paragraph 1017B(3)(c) of the Act, the issuer of the margin loan
must notify the holder of the change by:
(a) sending notice of the change to the holder:
(i) by pre-paid post to a postal address nominated by the
holder; or
(ii) to an email address nominated by the holder; or
(b) placing a notice on a webpage that is likely to come to the
holder’s attention if the holder is monitoring the holder’s
margin loan.
Subdivision 4.2B—Content of Product Disclosure Statement for
superannuation product
7.9.11K Application of Subdivision 4.2B
(1) This Subdivision applies to:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.11L
186 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) a superannuation trustee that is required to prepare a Product
Disclosure Statement for a superannuation product; and
(b) a Product Disclosure Statement for a superannuation product.
(2) However, this Subdivision does not apply to the following
financial products:
(a) an interest in a superannuation product that is solely a
defined benefit interest;
(b) a superannuation product that is solely a pension product;
(c) a superannuation product that has no investment component
(also known as a risk-only superannuation product).
7.9.11L Provisions of Part 7.7 of Act that do not apply in relation to
superannuation product
For paragraph 951C(1)(b) of the Act, section 942DA of the Act
does not apply in relation to a superannuation product.
7.9.11LA Attribution of accrued default amount to MySuper
product—exemption from significant event notice
requirements
For paragraph 1020G(1)(a) of the Act, a person is exempt from
section 1017B of the Act in relation to the attribution or transfer of
an accrued default amount if the person:
(a) is an RSE licensee within the meaning of the Superannuation
Industry (Supervision) Act 1993; and
(b) must comply with a requirement under regulation 9.46 of the
Superannuation Industry (Supervision) Regulations 1994 in
relation to the attribution or transfer.
7.9.11LB Attribution of accrued default amount to MySuper
product—modification of significant event notice
requirements
If a person:
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
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products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.11M
Corporations Regulations 2001 187
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) is an RSE licensee within the meaning of the Superannuation
Industry (Supervision) Act 1993; and
(b) is exempted under subregulation 9.46(2) of the
Superannuation Industry (Supervision) Regulations 1994
from notice requirements in relation to the attribution or
transfer of an accrued default amount;
then, for paragraph 1020G(1)(c) of the Act, section 1017B of the
Act applies to the person as if subsection 1017B(4) were omitted
and the following subsection were substituted:
(4) The notice must mention the following:
(a) the accrued default amount that was attributed or transferred;
(b) the name of the MySuper product to which the amount was
attributed or transferred;
(c) how the member may obtain a product disclosure statement
for the MySuper product;
(d) any other information that the member needs to understand
the attribution or transfer.
7.9.11M Provisions of Part 7.9 of Act that do not apply in relation to
superannuation product
(1) For paragraph 1020G(1)(b) of the Act, Subdivision D of Division 2
of Part 7.9 of the Act does not apply in relation to a superannuation
product.
(2) If a person:
(a) proposes to prepare a Product Disclosure Statement or a
supplementary Product Disclosure Statement for a
superannuation product during the period commencing on the
day on which this subregulation commences and ending on
22 June 2012; and
(b) is permitted to decide, in accordance with regulation 4 of the
Corporations Amendment Regulations 2010 (No. 5), to
prepare the Product Disclosure Statement or supplementary
Product Disclosure Statement in accordance with Subdivision
D of Division 2 of Part 7.9 of the Act; and
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Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.11N
188 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) prepares the Product Disclosure Statement or supplementary
Product Disclosure Statement in accordance with that
Subdivision;
the preparation of the Product Disclosure Statement or
supplementary Product Disclosure Statement is taken to be full
compliance with all requirements of Part 7.9 of the Act and these
Regulations relating to how the Product Disclosure Statement or
supplementary Product Disclosure Statement is to be prepared.
Note: The Corporations Amendment Regulations 2010 (No. 5) amended
these Regulations to make new arrangements for the preparation of
Product Disclosure Statements for superannuation products, including
identifying that Subdivision D of Division 2 of Part 7.9 of the Act
would no longer apply. However, the transitional arrangements in
subregulations 4(1) to (7) of the Amendment Regulations allowed
certain persons to decide to rely on Subdivision D of Division 2 of
Part 7.9 of the Act for the purpose of preparing the Product Disclosure
Statement.
7.9.11N Modification of Act—superannuation product
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application to a superannuation product to which
this Subdivision applies as set out in Part 5B of Schedule 10A.
7.9.11O Form and content of Product Disclosure Statement for
superannuation product
(1) For modified paragraph 1013C(1)(a) of the Act, a Product
Disclosure Statement for a superannuation product to which this
Subdivision applies must include the information and statements
mentioned in Schedule 10D.
(2) For modified paragraph 1013C(1)(b) of the Act, a Product
Disclosure Statement for a superannuation product to which this
Subdivision applies must be in the form mentioned in
Schedule 10D.
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Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.11P
Corporations Regulations 2001 189
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.11P Requirements for references to incorporated information
for superannuation product
(1) For subsection 1013C(1D) of the Act, as modified by Part 5B of
Schedule 10A, this regulation prescribes requirements for
applying, adopting or incorporating, in a Product Disclosure
Statement for a superannuation product to which this Subdivision
applies, a matter contained in writing.
(2) A Product Disclosure Statement may apply, adopt or incorporate a
matter only if a provision of these Regulations requires or permits
the matter to be applied, adopted or incorporated by the Statement.
(3) If a Product Disclosure Statement applies, adopts or incorporates a
matter:
(a) the matter must be:
(i) in writing; and
(ii) clearly distinguishable from any other matters that are
not to be applied, adopted or incorporated; and
(iii) if the superannuation product is not issued to a standard
employer-sponsored member within the meaning of the
Superannuation Industry (Supervision) Act 1993—
publicly available in a document other than the
Statement; and
(b) the responsible person for the Statement must identify the
matter by:
(i) including in the Statement a concise description of the
matter; and
(ii) ensuring that the reference to the matter is clearly
distinguishable from the other contents of the
Statement; and
(c) the responsible person for the Statement must:
(i) identify each version of the matter (by including the
date on which the version was prepared) so that a person
who, at a particular time, is considering a
superannuation product can identify the version that is
relevant to the superannuation product at that time; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.11P
190 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) state the date on which a version was prepared in a
prominent position at or near the front of the version;
and
(d) the responsible person for the Statement must ensure that a
person who is relying on the Statement is able to have access
to:
(i) the document containing the matter; or
(ii) if there is more than 1 version of the document
containing the matter—each version;
reasonably easily and reasonably quickly.
(4) The responsible person for the Product Disclosure Statement must
also ensure that the Statement includes the statements in the
following table relating to the matter, and sets them out in each
place at which the matter has been applied, adopted or
incorporated.
Item Statement
1 You should read the important information about [the subject] before making a
decision. Go to [location of the matter that has been applied, adopted or
incorporated]
2 The material relating to [matter] may change between the time when you read
this Statement and the day when you acquire the product
(5) The responsible person for the Product Disclosure Statement must
also ensure that each document mentioned in subregulation (3)
includes the statement in the following table relating to the matter.
Item Statement
1 The information in this document forms part of the Product Disclosure
Statement [identification by name, date and version (if applicable) of each
Statement]
(6) For the avoidance of doubt, the giving of a Product Disclosure
Statement to which this Subdivision applies is taken to be the
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.11Q
Corporations Regulations 2001 191
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
giving of every matter that is applied, adopted or incorporated in
accordance with subregulations (1) to (5).
(7) If the Product Disclosure Statement applies, adopts or incorporates
a matter, the information dealing with the matter is taken to have
been given to a person on the day on which the product is acquired.
7.9.11Q Retention of copies of Product Disclosure Statement for
superannuation product
(1) This regulation applies if:
(a) section 1015B of the Act does not apply to require a Product
Disclosure Statement to be lodged with ASIC; and
(b) the Statement is for a superannuation product to which this
Subdivision applies.
(2) The responsible person for the Product Disclosure Statement must
retain a copy of each version of the Statement that the responsible
person issues for a period of 7 years starting on the day on which
the version is prepared.
(3) The responsible person for the Product Disclosure Statement must
retain a copy of the document from which a matter is applied,
adopted or incorporated by the Statement as mentioned in
paragraph 7.9.11P(3)(c) for a period of 7 years commencing on the
day on which the Statement is prepared.
(4) If a document from which a matter is adopted, applied or
incorporated by the Product Disclosure Statement as mentioned in
paragraph 7.9.11P(3)(c) is changed in a way that changes the
description of, or reference to, the matter, the responsible person
for the Statement must retain a copy of the document for a period
of 7 years commencing on the day on which the document is
changed.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.11R
192 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.11R Requirement to provide copy of Product Disclosure
Statement for superannuation product free of charge
(1) For paragraph 1015C(5)(a) of the Act, this regulation specifies
requirements as to the manner in which a Product Disclosure
Statement for a superannuation product to which this Subdivision
applies must be given to a person if the person requests a copy of
the Statement.
(2) The responsible person for the Product Disclosure Statement must
give the person, free of charge:
(a) a copy of the Statement within 8 business days; and
(b) a copy of a matter in writing that is applied, adopted or
incorporated by the Statement within 8 business days.
Subdivision 4.2C—Content of Product Disclosure Statement for
simple managed investment scheme
7.9.11S Application of Subdivision 4.2C
(1) This Subdivision applies to:
(a) a person that is required to prepare a Product Disclosure
Statement for a simple managed investment scheme; and
(b) a Product Disclosure Statement for a simple managed
investment scheme.
(2) This Subdivision does not apply to the extent that the simple
managed investment scheme relates to a financial product (known
as a “quoted product”) which is, or is intended to be, traded on a
prescribed financial market.
(3) This Subdivision does not apply to the extent that the simple
managed investment scheme relates to a financial product (known
as a “stapled security”) to which the following requirements apply:
(a) the product consists of interests in 2 or more financial
products;
(b) the interests include at least 1 interest in a registered
managed investment scheme;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.11T
Corporations Regulations 2001 193
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) under the terms on which each of the interests is to be traded,
the interests must be transferred together;
(d) there are no financial products in the same class as the
interests which may be transferred separately.
(4) This Subdivision does not apply to the extent that the simple
managed investment scheme is a managed investment scheme that
has a constitution that provides that:
(a) a member may direct that an amount of money corresponding
to part or all of the amount invested by the member in the
scheme be invested in accessible investments; and
(b) the distributions of capital and income from the scheme to
the member in relation to the member’s interests in the
scheme will be determined by reference to amounts received
by the responsible entity or a custodian in relation to the
accessible investments acquired in accordance with the
direction.
7.9.11T Provisions of Part 7.7 of Act that do not apply in relation to
simple managed investment scheme
For paragraph 951C(1)(b) of the Act, section 942DA of the Act
does not apply in relation to a simple managed investment scheme
to which this Subdivision applies.
7.9.11U Provisions of Part 7.9 of Act that do not apply in relation to
simple managed investment scheme
(1) For paragraph 1020G(1)(b) of the Act, Subdivision D of Division 2
of Part 7.9 of the Act does not apply in relation to a simple
managed investment scheme to which this Subdivision applies.
(2) If a person:
(a) proposes to prepare a Product Disclosure Statement or a
supplementary Product Disclosure Statement for a simple
managed investment scheme to which this Subdivision
applies during the period commencing on the day on which
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.11V
194 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
this subregulation commences and ending on 22 June 2012;
and
(b) is permitted to decide, in accordance with regulation 4 of the
Corporations Amendment Regulations 2010 (No. 5), to
prepare the Product Disclosure Statement or supplementary
Product Disclosure Statement in accordance with Subdivision
D of Division 2 of Part 7.9 of the Act; and
(c) prepares the Product Disclosure Statement or supplementary
Product Disclosure Statement in accordance with that
Subdivision;
the preparation of the Product Disclosure Statement or
supplementary Product Disclosure Statement is taken to be full
compliance with all requirements of Part 7.9 of the Act and these
Regulations relating to how the Product Disclosure Statement or
supplementary Product Disclosure Statement is to be prepared.
Note: The Corporations Amendment Regulations 2010 (No. 5) amended
these Regulations to make new arrangements for the preparation of
Product Disclosure Statements for simple managed investment
schemes, including identifying that Subdivision D of Division 2 of
Part 7.9 of the Act would no longer apply. However, the transitional
arrangements in subregulations 4(1) to (7) of the Amendment
Regulations allowed certain persons to decide to rely on Subdivision
D of Division 2 of Part 7.9 of the Act for the purpose of preparing the
Product Disclosure Statement.
7.9.11V Modification of Act—simple managed investment scheme
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application to a simple managed investment scheme
to which this Subdivision applies as set out in Part 5C of
Schedule 10A.
7.9.11W Form and content of Product Disclosure Statement for
simple managed investment scheme
(1) For modified paragraph 1013C(1)(a) of the Act, a Product
Disclosure Statement for a simple managed investment scheme to
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Financial services and markets Chapter 7
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products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.11X
Corporations Regulations 2001 195
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
which this Subdivision applies must include the information and
statements mentioned in Schedule 10E.
(2) For modified paragraph 1013C(1)(b) of the Act, a Product
Disclosure Statement for a simple managed investment scheme to
which this Subdivision applies must be in the form mentioned in
Schedule 10E.
7.9.11X Requirements for references to incorporated information
for simple managed investment scheme
(1) For subsection 1013C(1D) of the Act, as modified by Part 5C of
Schedule 10A, this regulation prescribes requirements for
applying, adopting or incorporating, in a Product Disclosure
Statement for a simple managed investment scheme to which this
Subdivision applies, a matter contained in writing.
(2) A Statement may apply, adopt or incorporate a matter only if a
provision of these Regulations requires or permits the matter to be
applied, adopted or incorporated by the Statement.
(3) If a Product Disclosure Statement applies, adopts or incorporates a
matter:
(a) the matter must be:
(i) in writing; and
(ii) clearly distinguishable from any other matters that are
not applied, adopted or incorporated; and
(iii) publicly available in a document other than the
Statement; and
(b) the responsible person for the Statement must identify the
matter by:
(i) including in the Statement a concise description of the
matter; and
(ii) ensuring that the reference to the matter is clearly
distinguishable from the other contents of the
Statement; and
(c) the responsible person for the Statement must:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.11X
196 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) identify each version of the matter (by including the
date on which the version was prepared) so that a person
who, at a particular time, is considering a simple
managed investment scheme to which this Subdivision
applies can identify the version that is relevant to the
simple managed investment scheme at that time; and
(ii) state the date on which the version was prepared in a
prominent position at or near the front of the version;
and
(d) the responsible person for the Statement must ensure that a
person who is relying on the Statement is able to have access
to:
(i) the matter; or
(ii) if there is more than 1 version of the matter—each
version;
reasonably easily and reasonably quickly.
(4) The responsible person for the Product Disclosure Statement must
also ensure that the Statement includes the statements in the
following table relating to the matter, and sets them out in each
place at which the matter has been applied, adopted or
incorporated.
Item Statement
1 You should read the important information about [the subject] before making a
decision. Go to [location of the matter that has been applied, adopted or
incorporated]
2 The material relating to [matter] may change between the time when you read
this Statement and the day when you acquire the product
(5) The responsible person for the Product Disclosure Statement must
also ensure that each document mentioned in subregulation (3)
includes the statement in the following table relating to the matter.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.11Y
Corporations Regulations 2001 197
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item Statement
1 The information in this document forms part of the Product Disclosure
Statement [identification by name, date and version (if applicable) of each
Statement]
(6) For the avoidance of doubt:
(a) the giving of a Product Disclosure Statement to which this
Subdivision applies is taken to be the giving of every matter
that is applied, adopted or incorporated in accordance with
subregulations (1) to (5); and
(b) if a document mentioned in subparagraph (3)(a)(iii) refers to
more than one PDS, the document:
(i) must include a statement to the effect that the
information in the document forms part of the Product
Disclosure Statement offered by the responsible entity;
but
(ii) is not required to name each Product Disclosure
Statement of which it forms part.
(7) If the Product Disclosure Statement applies, adopts or incorporates
a matter, the information dealing with the matter is taken to have
been given to a person on the day on which the product is acquired.
7.9.11Y Retention of copies of Product Disclosure Statement for
simple managed investment scheme
(1) The responsible person for a Product Disclosure Statement for a
simple managed investment scheme to which this Subdivision
applies must retain a copy of each version of the Statement that the
responsible person issues for a period of 7 years starting on the day
on which the version is prepared.
(2) The responsible person for the Product Disclosure Statement must
retain a copy of the document from which a matter is applied,
adopted or incorporated by the Statement as mentioned in
paragraph 7.9.11X(3)(c) for a period of 7 years commencing on the
day on which the Statement is prepared.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.11Z
198 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) If a document from which a matter is adopted, applied or
incorporated by the Product Disclosure Statement as mentioned in
paragraph 7.9.11X(3)(c) is changed in a way that changes the
description of, or reference to, the matter, the responsible person
for the Statement must retain a copy of the document for a period
of 7 years commencing on the day on which the document is
changed.
7.9.11Z Requirement to provide copy of Product Disclosure
Statement for simple managed investment scheme free of
charge
(1) For paragraph 1015C(5)(a) of the Act, this regulation specifies
requirements as to the manner in which a Product Disclosure
Statement for a simple managed investment scheme to which this
Subdivision applies must be given to a person if the person
requests a copy of the Statement.
(2) The responsible person for the Product Disclosure Statement must
give the person, free of charge:
(a) a copy of the Statement within 8 business days; and
(b) a copy of a matter in writing that is applied, adopted or
incorporated by the Statement within 8 business days.
Subdivision 4.3—Other arrangements for Product Disclosure
Statements and application forms
7.9.12 Modification of Act: Product Disclosure Statements and
application forms for standard employer-sponsors and
successor funds
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to superannuation products
and RSA products as set out in Part 6 of Schedule 10A.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.13
Corporations Regulations 2001 199
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.13 Offer of superannuation interest without application or
eligible application
(1) For paragraph 1016A(4)(a) of the Act, if a trustee of a public offer
entity issues a superannuation interest in the entity to a person
without first receiving an application, or an eligible application, the
trustee is taken not to have contravened section 1016A of the Act
if:
(a) the entity is a standard employer-sponsored fund; and
(b) the person holds the interest as a standard
employer-sponsored member of the entity; and
(c) after issuing the interest, the trustee makes reasonable efforts:
(i) to obtain an application or eligible application (as the
case requires under paragraph 1016A(2)(b) or (c) of the
Act) from the person’s standard employer-sponsor; or
(ii) to obtain an eligible application mentioned in
paragraph 1016A(2)(a) of the Act from the person; and
(d) if the trustee has not obtained the application or eligible
application within 90 days after issuing the interest, the
trustee does not accept any more contributions from the
standard employer-sponsor in respect of the person until the
trustee receives the application or eligible application.
(2) For paragraph 1016A(4)(b) of the Act, if a trustee has not obtained
the application or eligible application under subregulation (1)
within 90 days after issuing the interest, the trustee must not
intentionally or recklessly accept any more contributions from the
standard employer-sponsor in respect of the person until the trustee
receives the application or eligible application.
Penalty: 50 penalty units.
(3) Subregulation (2) does not apply if the person has a reasonable
excuse.
Note: A defendant bears an evidential burden in relation to the matter in
subregulation (2) (see subsection 13.3(3) of the Criminal Code).
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.13A
200 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) Strict liability applies to subregulation (2).
Note: For strict liability, see section 6.1 of the Criminal Code.
7.9.13A Remedies for person acquiring financial product under
defective Product Disclosure Statement: first home saver
accounts
(1) For subsection 1016F(3) of the Act, this regulation applies in
relation to an FHSA.
(2) If the FHSA holder has never held another FHSA, to exercise a
right of return for the financial product in circumstances in which
the moneys paid to acquire the FHSA are subject to payment
restrictions:
(a) the FHSA holder must:
(i) notify the FHSA provider, in writing, that the FHSA
holder wishes to exercise the right to return the FHSA;
and
(ii) ask the FHSA provider to pay the entire balance of the
FHSA to the FHSA holder; and
(iii) give the FHSA provider a written declaration that the
FHSA holder has never previously held an FHSA; or
(b) the FHSA holder must:
(i) notify the FHSA provider, in writing, that the FHSA
holder wishes to exercise the right to return the FHSA;
and
(ii) no later than 1 month after notifying the FHSA
provider, ask the FHSA provider to pay the entire
balance of the FHSA to another FHSA nominated in the
request.
(3) If the FHSA holder has held another FHSA, to exercise a right of
return for the financial product in circumstances in which the
moneys paid to acquire the FHSA are subject to payment
restrictions, the FHSA holder must:
(a) notify the FHSA provider, in writing, that the FHSA holder
wishes to exercise the right to return the FHSA; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.14
Corporations Regulations 2001 201
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) no later than 1 month after notifying the FHSA provider, ask
the FHSA provider to pay the entire balance of the FHSA to
another FHSA nominated in the request.
7.9.14 Remedies for person acquiring financial product under
defective Product Disclosure Statement: superannuation
and RSAs
(1) This regulation applies to a financial product:
(a) that is:
(i) a superannuation product to which requirements of the
SIS Act relating to preservation rules and cashing
restrictions apply; or
(ii) an RSA product to which requirements of the RSA
Regulations relating to preservation rules and cashing
restrictions apply; and
(b) that has been issued or sold in contravention of
section 1016E of the Act.
(2) For subsection 1016F(3) of the Act, to exercise a right of return for
the financial product in circumstances in which the moneys paid to
acquire the financial product are subject to the preservation rules
and cashing restrictions, the client must:
(a) nominate a superannuation entity or RSA into which the
monies subject to the preservation rules and cashing
restrictions, and to which preservation conditions apply, are
to be repaid; and
(b) make the nomination not later than 1 month after notifying
the responsible person of the right to exercise the right of
return.
(2A) The right of return is taken to have been exercised only on receipt
by the responsible person of the nomination.
(3) The client must notify the responsible person in writing or by
electronic means.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.14A
202 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) For subsection 1016F(6) of the Act, the responsible person must
repay the monies as directed.
(5) For subsection 1019B(7) of the Act, if:
(a) a financial product mentioned in this regulation is subject to
the nomination of a further superannuation entity or RSA;
and
(b) the application in relation to the financial product is not
accepted by the nominated superannuation entity or RSA;
the responsible person may rollover or transfer the client’s benefits
to an eligible rollover fund.
7.9.14A Treatment of arrangements under which a person can
instruct another person to acquire a financial product
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if the definition of instruction in subsection 1012IA(1) of the
Act were modified by adding at the end ‘, including a direction to
follow an investment strategy mentioned in paragraph 52(4)(a) of
the Superannuation Industry (Supervision) Act 1993’.
Subdivision 4.4—Product information for certain insurance
products
7.9.14B Product information
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to financial products as if:
(a) that Part applied to a financial product mentioned in
paragraph 7.1.14(2)(d); and
(b) the following section were inserted after section 1019B of the
Act:
‘1019C Information about certain vehicle insurance
(1) This section applies in relation to the issue of a financial
product mentioned in paragraph 7.1.14(2)(d) of the
Corporations Regulations 2001.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.14B
Corporations Regulations 2001 203
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) The product issuer of the financial product must, as soon as
practicable after issuing the financial product, give the holder
of the financial product a statement that contains the
information mentioned in paragraphs 1013D(1)(a) and (b)
unless:
(a) the product holder already has a statement containing
that information; or
(b) the product issuer believes on reasonable grounds that
the product holder has already received a statement
containing that information.
(3) The product issuer must give the statement in the same way
as a Product Disclosure Statement is to be given under
subsection 1015C.
(4) The product issuer is not required to comply with any other
requirements in Divisions 2 to 6 (inclusive) in relation to the
issue of the financial product.
(5) The product issuer must not refuse, or intentionally or
recklessly fail, to comply with subsections (2) and (3).
Penalty: 50 penalty units.
(6) Subsection (5) does not apply to the extent that the product
issuer has a reasonable excuse.
Note: A defendant bears an evidential burden in relation to the matter in subsection (6A), see subsection 13.3(3) of the Criminal Code.
(7) Divisions 1 and 7 do not apply in relation to the product
issuer in relation to the financial product mentioned in
paragraph 7.1.14(2)(d) of the Corporations
Regulations 2001.’.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4A General
Regulation 7.9.14C
204 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4A—General
7.9.14C Labour standards and environmental, social and ethical
considerations
For paragraph 1013D(4)(c) of the Act, the more detailed
information to be included in a Product Disclosure Statement about
the extent to which labour standards or environmental, social or
ethical considerations are taken into account in the selection,
retention or realisation of an investment is:
(a) a statement that the product issuer does, or does not, take into
account labour standards for the purpose of selecting,
retaining or realising the investment; and
(b) a statement that the product issuer does, or does not, take into
account environmental, social or ethical considerations for
the purpose of selecting, retaining or realising the
investment; and
(c) if the Product Disclosure Statement includes a statement that
the product issuer does take into account labour standards for
the purpose of selecting, retaining or realising the
investment—a statement outlining:
(i) the standards that the product issuer considers to be
labour standards for that purpose; and
(ii) the extent to which the product issuer takes those
standards into account in the selection, retention or
realisation of the investment; and
(d) if the Product Disclosure Statement includes a statement that
the product issuer does take into account environmental,
social or ethical considerations for the purpose of selecting,
retaining or realising the investment—a statement outlining:
(i) the considerations that the product issuer regards as
environmental, social or ethical considerations for that
purpose; and
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Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
General Division 4A
Regulation 7.9.14D
Corporations Regulations 2001 205
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(ii) the extent to which the product issuer takes those
considerations into account in the selection, retention or
realisation of the investment.
7.9.14D Further statements required in Product Disclosure
Statement—financial claims scheme
(1) For paragraph 1013D(1)(k) of the Act, the following further
statements must be included in a Product Disclosure Statement that
relates to a protected policy issued by a general insurer or a
protected account issued by an authorised deposit-taking
institution:
(a) if the Product Disclosure Statement relates to a protected
policy—a statement that:
(i) the person entitled to claim under insurance cover under
a protected policy may be entitled to payment under the
financial claims scheme; and
(ii) access to the scheme is subject to eligibility criteria;
(b) if the Product Disclosure Statement relates to a protected
account—a statement that:
(i) the account-holder may be entitled to payment under the
financial claims scheme; and
(ii) payments under the scheme are subject to a limit for
each depositor;
(c) a statement that information about the scheme can be
obtained from the APRA website at http://www.apra.gov.au
and the APRA hotline on 1300 13 10 60.
(2) In this regulation:
authorised deposit-taking institution has the meaning given by
subsection 5(1) of the Banking Act 1959.
financial claims scheme means:
(a) the scheme provided for in Division 2AA of Part II of the
Banking Act 1959; and
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Chapter 7 Financial services and markets
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Division 4A General
Regulation 7.9.15
206 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the scheme provided for in Part VC of the Insurance Act
1973.
general insurer has the meaning given by section 11 of the
Insurance Act 1973.
protected account has the meaning given by subsections 5(4) to (7)
of the Banking Act 1959.
protected policy has the meaning given by subsection 3(1) of the
Insurance Act 1973.
7.9.15 More detailed information in Product Disclosure Statement:
unauthorised foreign insurer
(1) For paragraph 1013D(4)(c) of the Act, the more detailed
information that must be included in a Product Disclosure
Statement that relates to a financial product issued by an
unauthorised foreign insurer is:
(a) a statement that the product issuer is:
(i) an unauthorised foreign insurer; and
(ii) not authorised under the Insurance Act 1973 to conduct
insurance business in Australia; and
(b) a statement that an insurer of that kind is not subject to the
provisions of the Insurance Act 1973, which establishes a
system of financial supervision of general insurers in
Australia; and
(c) a statement that the person should consider whether to obtain
further information, including:
(i) the country in which the product issuer is incorporated,
and whether the country has a system of financial
supervision of insurers; and
(ii) the paid up capital of the product issuer; and
(iii) which country’s laws will determine disputes in relation
to the financial product; and
(d) a statement that an insurer of that kind cannot be a declared
general insurer for the purpose of Part VC of the Insurance
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Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
General Division 4A
Regulation 7.9.15A
Corporations Regulations 2001 207
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Act 1973, and, if the insurer becomes insolvent, the person
will not be covered by the financial claims scheme provided
under Part VC of that Act.
(2) In this regulation:
unauthorised foreign insurer means:
(a) an insurer that:
(i) does not have an authority under the Insurance Act 1973
to carry on insurance business; and
(ii) is not a person who, because of section 5 of that Act, is
not required to have such an authority; and
(iii) carries on insurance business outside Australia and the
external Territories to which the Insurance Act 1973
extends; or
(b) if a direction is in force under section 74 of the Insurance Act
1973—a Lloyd’s underwriter.
7.9.15A Product Disclosure Statements—requirement to state
information as amounts in dollars
(1) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if paragraph 1013D(1)(m) of the Act were modified to read as
follows:
‘(m) unless, in accordance with the regulations and a
determination by ASIC, information to be disclosed in
accordance with paragraphs (b), (d) and (e) must be
stated as amounts in dollars.’.
(2) For paragraph 1020G(1)(a) of the Act, an issuer of a financial
product does not have to provide the information mentioned in
paragraph 1013D(1)(m) of the Act in the form required by that
paragraph, in a Product Disclosure Statement prepared before
1 January 2005.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4A General
Regulation 7.9.15B
208 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.15B Product Disclosure Statements—disclosure of dollar
amounts
(1) For paragraph 1013D(1)(m) of the Act, if ASIC determines that,
for a compelling reason, it is not possible to state information to be
disclosed in accordance with paragraph 1013D(1)(b), (d) or (e) as
an amount in dollars, the information may be set out as a
description of the benefit, cost, amount or payment as a percentage
of a specified matter (including worked dollar examples, unless
that is inappropriate).
(2) For paragraph 1013D(1)(m) of the Act, if ASIC determines that,
for a compelling reason, it is not possible to state information to be
disclosed in accordance with paragraph 1013D(1)(b), (d) or (e) as
an amount in dollars, or to describe the amount as a percentage, the
information may be set out as a description of the method of
calculating the benefit, cost, amount or payment (including worked
dollar examples, unless that is inappropriate).
(3) A determination under subregulation (1) or (2) must be:
(a) in writing; and
(b) published in the Gazette.
7.9.15C Product Disclosure Statements—disclosure of dollar
amounts
(1) For paragraph 1013D(1)(m) of the Act, if ASIC determines that,
for a compelling reason based on the nature of a financial product
or service, or the nature of the information, to state the information
as an amount in dollars:
(a) would impose an unreasonable burden on a product issuer, or
a class of product issuers; or
(b) would impose an unreasonable burden on a product issuer, or
a class of product issuers, within a period specified in the
determination; or
(c) would not be in the interests of a client, or a class of clients;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
General Division 4A
Regulation 7.9.15C
Corporations Regulations 2001 209
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
the information may be set out as a description of the amount as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(2) For paragraph 1013D(1)(m) of the Act, if ASIC determines that,
for a compelling reason, based on the nature of a financial product
or service, or the nature of the information, to state the information
as an amount in dollars, or to describe the amount as a percentage:
(a) would impose an unreasonable burden on a product issuer, or
a class of product issuers; or
(b) would impose an unreasonable burden on a product issuer, or
a class of product issuers, within a period specified in the
determination; or
(c) would not be in the interests of a client, or a class of clients;
the information may be set out as a description of the method of
calculating the charge or benefit (including worked dollar
examples, unless that is inappropriate).
(3) A determination under subregulation (1) or (2) must be:
(a) in writing; and
(b) published in the Gazette.
(4) For paragraph 1013D(1)(m) of the Act, for a Product Disclosure
Statement that is required in relation to a general insurance
product, if:
(a) information is required to be stated in dollars; and
(b) the amount can only be determined:
(i) after the responsible person assesses the risk of the
insured; or
(ii) after the insured has nominated desired levels of
insurance cover;
the responsible person may comply with the requirement to state
the information by either of the ways mentioned in
subregulation (5).
(5) For subregulation (4), the responsible person may state the
information by:
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Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4A General
Regulation 7.9.15CA
210 Corporations Regulations 2001
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(a) stating an amount in dollars in the Product Disclosure
Statement; or
(b) giving to the insured:
(i) a document containing the information, as soon as
practicable (but in any case, not later than 5 business
days after the responsible person issues the general
insurance product); and
(ii) a statement in the Product Disclosure Statement that sets
out the information in at least 1 of the following
formats:
(A) as a range of amounts in dollars;
(B) as a percentage of a matter that is mentioned in
the statement;
(C) as a description.
7.9.15CA Less information in Product Disclosure Statement—
financial claims scheme
(1) This regulation applies from 18 April 2010 to 11 October 2011.
(2) For paragraph 1013D(4)(b) of the Act, paragraphs 1013D(1)(b)
and (f) of the Act do not require a Product Disclosure Statement to
contain information relating to Division 2AA of Part II of the
Banking Act 1959 or Part VC of the Insurance Act 1973.
7.9.15D Less information in product disclosure statement: general
insurance product
For paragraph 1013D(4)(a) of the Act, the following provisions do
not apply to a Product Disclosure Statement that relates to a
general insurance product:
(a) paragraph 1013D(1)(c);
(b) subparagraph 1013D(1)(d)(iii);
(c) paragraph 1013D(1)(e);
(d) paragraph 1013D(1)(h);
(e) paragraph 1013D(1)(j);
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
General Division 4A
Regulation 7.9.15DA
Corporations Regulations 2001 211
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(f) paragraph 1013D(1)(l).
7.9.15DA Statement or information not included in a Product
Disclosure Statement
(1) For paragraph 1020G(1)(c) of the Act, and subject to
subregulation (1A) and (4), a responsible person is not required to
include a statement or information mentioned in Part 7.9 of the Act
in a Product Disclosure Statement if:
(a) the statement or information is in writing and is publicly
available in a document other than the Product Disclosure
Statement; and
(b) the Product Disclosure Statement:
(i) refers to the statement or information; and
(ii) provides sufficient details about the statement or
information to enable a person:
(A) to identify by a unique identifier the document,
or part of the document, that contains the
statement or information; and
(B) to locate the statement or information; and
(C) to decide whether or not to read the statement
or information or obtain a copy of the statement
or information; and
(iii) states that a copy of the statement or information may
be obtained from the responsible person on request, at
no charge; and
(c) the statement or information is not a statement or information
that is in a Short-Form Product Disclosure Statement.
(1A) This regulation does not apply if the Product Disclosure Statement
is for:
(a) a margin loan; or
(b) a superannuation product to which Subdivision 4.2B of
Division 4 of Part 7.9 applies; or
(c) a simple managed investment scheme to which
Subdivision 4.2C of Division 4 of Part 7.9 applies.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4A General
Regulation 7.9.15DB
212 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) If the client requests a copy of the statement or information that the
responsible person is not required to include in accordance with
subregulation (1), the responsible person must provide the copy as
soon as practicable, at no charge.
(3) If a statement or information is not included in a Product
Disclosure Statement because of subregulation (1), the statement or
information is taken to be included in the Product Disclosure
Statement.
(4) Despite subregulation (3), if a responsible person does not include
a statement or information in a Product Disclosure Statement in
accordance with subregulation (1), the responsible person must
include the following information in the Product Disclosure
Statement:
(a) for information required by paragraph 1013D(1)(b) or (f) of
the Act—a description, in summary, of the purpose and key
features of the product;
(b) for information required by paragraph 1013D(1)(c) of the
Act—a description, in summary, of the key risks of the
product;
(c) the information required by:
(i) paragraphs 1013D(1)(a), (g) and (i) of the Act; and
(ii) Divisions 1 and 2 of Part 2 of Schedule 10; and
(iii) paragraphs 209(e) and (h) of Division 4 of Part 2 of
Schedule 10; and
(iv) Divisions 5 and 6 of Part 2 of Schedule 10;
(d) the Consumer Advisory Warning in Division 7 of Part 2 of
Schedule 10.
7.9.15DB Requirement to keep record of Product Disclosure
Statement and other documents
(1) If section 1015B of the Act does not require a copy of a Product
Disclosure Statement to be lodged with ASIC, the Statement and a
document, or part of a document, mentioned in the Statement must
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Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
General Division 4A
Regulation 7.9.15DC
Corporations Regulations 2001 213
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
be retained by the responsible person for that Statement for 7 years
after the date of the Statement.
Note: Responsible person has the same meaning as in section 1011B of the
Act.
(2) This regulation does not apply if the Product Disclosure Statement
is for:
(a) a margin loan; or
(b) a superannuation product to which Subdivision 4.2B of
Division 4 of Part 7.9 applies; or
(c) a simple managed investment scheme to which
Subdivision 4.2C of Division 4 of Part 7.9 applies.
7.9.15DC Requirement to lodge documents mentioned in a Product
Disclosure Statement with ASIC
(1) A document, or part of a document, mentioned in a Product
Disclosure Statement that was required to be lodged with ASIC
under section 1015B of the Act must be lodged with ASIC as if the
document, or part of the document, were a Statement within the
meaning of section 1015B of the Act.
(2) This regulation does not apply if the Product Disclosure Statement
is for:
(a) a margin loan; or
(b) a superannuation product to which Subdivision 4.2B of
Division 4 of Part 7.9 applies; or
(c) a simple managed investment scheme to which
Subdivision 4.2C of Division 4 of Part 7.9 applies.
7.9.15E More detailed information in product disclosure statement:
general insurance product
For paragraph 1013D(4)(c) of the Act, the more detailed statement
of the information, for paragraph 1013D(1)(f), that must be
included in a Product Disclosure Statement that relates to a general
insurance product is:
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Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4A General
Regulation 7.9.15F
214 Corporations Regulations 2001
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(a) the terms and conditions of the policy document (within the
meaning of the Insurance Contracts Act 1984) being terms
and conditions that are not provided in a Schedule to the
policy document; and
(b) information that, if the issuer were seeking to rely on
subsection 35(2) and section 37 of the Insurance Contracts
Act 1984, the issuer would have had to provide to the insured
before the contract of insurance was entered into.
7.9.15F Product disclosure statement: general insurance product
For paragraph 1020G(1)(b) of the Act, Part 7.9 of the Act applies
to general insurance products as if subparagraph 1013C(1)(a)(ii)
and section 1013E were omitted.
7.9.15FA Transitional arrangements for regulations 7.9.15D, 7.9.15E
and 7.9.15F
(1) If, at any time during the transition period, a Product Disclosure
Statement for a general insurance product complies with the
requirements of old sections 1013C and 1013D, the Product
Disclosure Statement is taken to comply with the requirements of:
(a) sections 1013C and 1013D of the Act; and
(b) the provisions of any regulations made for the purposes of, or
modifying, sections 1013C and 1013D of the Act;
as in force at that time.
(2) In this regulation:
commencing day means the day on which this regulation
commences.
old sections 1013C and 1013D means:
(a) sections 1013C and 1013D of the Act; and
(b) the provisions of any regulations made for the purposes of, or
modifying, those sections;
as in force immediately before the commencing day.
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Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
General Division 4A
Regulation 7.9.15G
Corporations Regulations 2001 215
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
transition period means the period starting on the commencing day
and ending at the end of 30 June 2008.
Note: Before the commencement of this regulation, transitional
arrangements in similar terms were provided for regulations 7.9.15D,
7.9.15E and 7.9.15F by item 2 of Schedule 5 to the Corporations
Amendment Regulations 2005 (No. 5) (SLI 2005 No. 324).
7.9.15G Business days
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if paragraph 1019B(3)(b) were modified by omitting “5th day”
and substituting “fifth business day”.
7.9.15H New section 1012G: product disclosure statement may
sometimes be provided later
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if section 1012G were omitted and the following section were
substituted:
“1012G Product disclosure statement may sometimes be provided
later: financial products subject to a cooling off period
Application of section
(1) The regulated person may deal with a financial product under this
section only if the financial product is one for which an application
form is not required under section 1016A and section 1019B
(cooling off period) will apply if the client enters into a legal
obligation to acquire the product pursuant to the recommendation
or offer that constitutes the relevant conduct.
No need to give Product Disclosure Statement in certain
circumstances
(2) In a recommendation situation or an issue situation, the regulated
person need not give the client a Product Disclosure Statement for
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Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4A General
Regulation 7.9.15H
216 Corporations Regulations 2001
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the financial product at or before the time when it would otherwise
be required to be given if:
(a) the client expressly instructs the regulated person that they
require:
(i) in a recommendation situation—the advice constituting
the recommendation; or
(ii) in an issue situation—the financial product;
to be provided or issued immediately, or by a specified time;
and
(b) it is not reasonably practicable, while complying with the
client’s instructions, to give the client the Product Disclosure
Statement at or before the time when it would otherwise be
required to be given.
The regulated person must comply instead with subsection (3).
Requirements to be complied with to be able to give Product
Disclosure statement later
(3) The regulated person must:
(a) at or before the time referred to in paragraph (2)(b), orally
communicate the following information to the client:
(i) the name and contact details of the issuer of the
financial product;
(ii) information about the cooling off regime that applies in
respect of acquisitions of the product (whether this
regime is provided for by law or otherwise);
(iii) that the client should consider the information in the Product Disclosure Statement that will be provided to the client;
(iv) the further information (if any) requested by the client
in response to a question under paragraph (b); and
(b) at or before the time referred to in paragraph (2)(b), ask the
client whether the client would like further information about
the financial product; and
(c) give the client the Product Disclosure Statement as soon as
practicable after that time, and in any event not later than:
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
General Division 4A
Regulation 7.9.15I
Corporations Regulations 2001 217
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(i) the time when the confirmation requirement (if
applicable) is complied with; or
(ii) the end of the fifth business day after the day on which
the financial product was issued or sold to the client.
How information to be communicated
(4) The information referred to in paragraph (3)(a) must be
communicated in a clear, concise and effective manner.
How confirmation requirement to be complied with
(5) For the purposes of subparagraph (3)(c)(i), the confirmation
requirement is complied with when:
(a) the client receives confirmation, as mentioned in
paragraph 1017F(5)(a), of the transaction by which they
acquired the financial product; or
(b) confirmation of that transaction is available to the client by a
facility as mentioned in paragraph 1017F(5)(b).”
7.9.15I Modification of section 1012IA
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if subparagraph 1012IA(4)(b)(ii) were omitted and the following
subparagraph was inserted:
“(ii) subsection 1012G(3) applies in relation to the provider, the client and the regulated acquisition as if the reference to the regulated person were instead a reference to the provider, as if subparagraph 1012G(3)(c)(i) were omitted and as if the reference in subparagraph 1012G(3)(c)(ii) to the day on which the financial product was issued or sold to the client were instead a reference to the day on which the regulated acquisition occurs.”
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4A General
Regulation 7.9.16
218 Corporations Regulations 2001
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7.9.16 More detailed information in Product Disclosure Statement:
consumer credit insurance product
(1) For paragraph 1013D(4)(c) of the Act, the more detailed
information that must be included in a Product Disclosure
Statement that relates to a consumer credit insurance product is:
(a) a brief explanation of the purposes of consumer credit
insurance; and
(b) an outline statement of general areas covered by the
consumer credit insurance product, or the kind of consumer
credit insurance product; and
(c) a statement that it is important that the insured read the
Product Disclosure Statement carefully to understand the
extent of cover provided by the consumer credit insurance
product, and its limitations; and
(d) if all of the following matters apply under the consumer
credit insurance product:
(i) a person who applies for, or obtains, consumer credit
insurance is not obliged to buy the consumer credit
insurance;
(ii) cover is provided under the consumer credit insurance
product in respect of losses caused by certain
contingencies;
(iii) the extent of loss to the consumer credit insurance
product applies is measured by reference to the liability
of the insured under the credit agreement to which the
consumer credit insurance applies;
a statement to that effect, accompanied by examples of the
contingencies; and
(e) a table of the benefit limits applicable under the consumer
credit insurance product; and
(f) a statement that the insured:
(i) is required to be truthful; and
(ii) is able to arrange consumer credit insurance through a
different insurer; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
General Division 4A
Regulation 7.9.16A
Corporations Regulations 2001 219
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(g) a statement of the commission paid or payable in relation to
the provision of the consumer credit insurance product.
(2) In this regulation:
consumer credit insurance product means a general insurance
product provided by a class of contracts of insurance that is:
(a) declared, in accordance with the Insurance Contracts Act
1984 to be a class of contracts to which Division 1 of Part V
of that Act applies; and
(b) identified as consumer credit insurance as part of that
declaration.
7.9.16A Small scale offerings of managed investment and other
prescribed financial products (20 issues or sales in 12
months)
For paragraph 1012E(1)(b) of the Act, interests in unregistered
managed investment schemes are prescribed.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4B Ongoing disclosure
Regulation 7.9.16G
220 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4B—Ongoing disclosure
7.9.16G Ongoing disclosure of material changes and significant
events
(1) For paragraph 1017B(1)(d) of the Act, the circumstances in
subregulation (2) are specified.
(2) The circumstances are that the product issuer issued a financial
product that was acquired by a holder as a retail client:
(a) in a sale situation in which the issuer is not required to give a
Product Disclosure Statement for the product under
section 1012C of the Act; or
(b) in a situation in which a Product Disclosure Statement is not
required because of the operation of section 1012D of the Act
other than subsection (1), (2), (2A) or (2B) of that section; or
(c) in an offer situation in which a Product Disclosure Statement
is not required under section 1012E of the Act.
(3) For paragraph 1017B(1A)(c) of the Act, the attribution, on the
recommendation of the trustee, of an amount in relation to a
member in a MySuper product to another class of beneficial
interest in the fund is specified.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Fee Disclosure for certain financial products Division 4C
Regulation 7.9.16J
Corporations Regulations 2001 221
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Division 4C—Fee Disclosure for certain financial products
Subdivision 4C.1—Application
7.9.16J Application of Division 4C to financial products
This Division applies to:
(a) superannuation products other than:
(i) self-managed superannuation funds; and
(ii) superannuation products that have no investment
component (also known as risk-only superannuation
products); and
(iii) annuities (except market-linked annuities); and
(iv) non-investment or accumulation life insurance policies
offered through a superannuation fund; and
(b) managed investment products.
7.9.16JA Application of Division 4C to financial products—
temporary arrangements
For paragraph 1020G(1)(a) of the Act:
(a) an issuer of a superannuation product to which this Division
applies does not have to provide the information mentioned
in subparagraph 1013D(1)(d)(iii) of the Act in a Product
Disclosure Statement issued before 1 July 2005; and
(b) an issuer of a financial product, other than a superannuation
product to which this Division applies, does not have to
provide the information mentioned in
subparagraph 1013D(1)(d)(iii) of the Act in a Product
Disclosure Statement issued before 1 July 2006.
7.9.16K Application of Division 4C to periodic statements and
Product Disclosure Statements
This Division applies:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4C Fee Disclosure for certain financial products
Regulation 7.9.16L
222 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) in relation to superannuation products:
(i) to periodic statements (other than exit statements) in
relation to a reporting period commencing on or after
1 July 2005; and
(ii) to periodic statements that are exit statements issued on
or after 1 July 2006; and
(iii) to Product Disclosure Statements issued on or after
1 July 2005; and
(b) in relation to managed investment products:
(i) to periodic statements (other than exit statements) in
relation to a reporting period commencing on or after
1 July 2006; and
(ii) to periodic statements that are exit statements issued on
or after 1 July 2007; and
(iii) to Product Disclosure Statements issued on or after
1 July 2006.
Subdivision 4C.2—Product Disclosure Statements
7.9.16L More detailed information about fees and costs
(1) For paragraph 1013D(4)(c) of the Act, a Product Disclosure
Statement must include the details of fees and costs set out in
Part 2 of Schedule 10.
(2) This regulation does not apply if the Product Disclosure Statement
is for:
(a) a margin loan; or
(b) a superannuation product to which Subdivision 4.2B of
Division 4 of Part 7.9 applies; or
(c) a simple managed investment scheme to which
Subdivision 4.2C of Division 4 of Part 7.9 applies.
7.9.16M Modification of section 1015C of the Act
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
in relation to a product mentioned in regulation 7.9.16J as if
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Fee Disclosure for certain financial products Division 4C
Regulation 7.9.16N
Corporations Regulations 2001 223
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
paragraph 1015C(5)(b) of the Act were modified to omit the words
‘that is to be given in electronic form’.
7.9.16N Presentation, structure and format of fees and costs in
Product Disclosure Statements
(1) For paragraph 1015C(5)(b) of the Act, the information required by
paragraphs 1013D(1)(d) and (e) of the Act must be set out in a
single section of the Product Disclosure Statement (fees section)
with the heading ‘Fees and other costs’.
(2) The fees section of a Product Disclosure Statement must include:
(a) the Fees and Costs Template, comprising the template and
the additional explanation of fees and costs set out in Part 2
of Schedule 10; and
(b) an example of annual fees and costs and associated notes as
set out in Part 2 of Schedule 10; and
(c) the boxed Consumer Advisory Warning Statement set out in
Part 2 of Schedule 10.
Subdivision 4C.3—Periodic statements
7.9.16O Presentation, structure and format of fees and charges in
periodic statements
(1) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
in relation to a product mentioned in regulation 7.9.16J as if
section 1017D of the Act were modified to add, after
subsection (7):
‘(8) The regulations may specify requirements as to the
presentation, structure and format of a periodic statement.’.
(2) For subsection 1017D(8) of the Act, the information required by
paragraph 1017D(5)(c) of the Act must be set out in the periodic
statement:
(a) in the manner specified in Part 3 of Schedule 10; and
(b) using the terminology used in Part 3 of Schedule 10.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 4D Other requirements relating to Product Disclosure Statements and
Supplementary Product Disclosure Statements
Regulation 7.9.16T
224 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4D—Other requirements relating to Product
Disclosure Statements and Supplementary
Product Disclosure Statements
Subdivision 4D.1—Requirement to lodge a notice with ASIC
7.9.16T Variation of paragraph 1015D(2)(b) of the Act
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if paragraph 1015D(2)(b) of the Act were omitted and the
following paragraph and note were inserted:
‘(b) a change is made to the fees and charges set out in the
enhanced fee disclosure table in the Statement;
Note: The templates for the enhanced fee disclosure table are set out in
items 201 and 202 of Schedule 10 to the Corporations
Regulations 2001.’.
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5
Regulation 7.9.17
Corporations Regulations 2001 225
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5—Ongoing requirements for product disclosure
after person becomes a member
Subdivision 5.1—Preliminary
7.9.17 Application of Division 5
This Division applies in relation to the following entities:
(a) a regulated superannuation fund;
(b) an approved deposit fund;
(c) a pooled superannuation trust;
(d) an RSA.
Subdivision 5.2—Periodic statements for retail clients for
financial products that have an investment
component: regulated superannuation funds, ADFs
and RSAs
7.9.18 Application of Subdivision 5.2
This Subdivision applies in relation to:
(a) a regulated superannuation fund; and
(b) an approved deposit fund; and
(c) an RSA.
7.9.19 Specific requirements for periodic statements: superannuation
funds (other than self managed superannuation funds)
and RSAs
For paragraph 1017D(5)(g) of the Act, a periodic statement for a
superannuation product, given to a member of a superannuation
fund (other than a self-managed superannuation fund) or an RSA
product given to an RSA holder must include the following details:
Federal Register of Legislative Instruments F2015C00303
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Regulation 7.9.19
226 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the contact details of the fund or the RSA provider;
(b) the amount of withdrawal benefit for the member or RSA
holder at the start of the reporting period;
(c) the amount of the withdrawal benefit for the member or RSA
holder at the end of the reporting period, and the method by
which that amount was worked out;
(d) the amount (if any) of the withdrawal benefit for the member
or RSA holder, at the end of the reporting period, that
consists of preserved benefits;
(e) the amount (if any) of the withdrawal benefit for the member
or RSA holder, at the end of the reporting period, that
consists of restricted non-preserved benefits;
(f) the amount (if any) of the withdrawal benefit for the member
or RSA holder, at the end of the reporting period, that
consists of unrestricted non-preserved benefits;
(g) if, in providing details of the amount of the withdrawal
benefit at the end of the reporting period, a deduction for
fees, charges or expenses has been made or might be made—
details of the deduction;
(h) if relevant, a statement informing the product holder that:
(i) the information about the withdrawal benefit for the
product holder at the end of the reporting period is
based on notional amounts that would have been
attributable to the product holder if the product holder
had disposed of his or her interest in the product on the
date shown in the statement; and
(ii) the amounts on which that information is based might
change; and
(iii) before disposing of that product, the product holder
should seek information from the product issuer on the
withdrawal benefit at that time;
(i) a statement informing the product holder that the product
issuer is obliged to provide a member with any information
that he or she reasonably requires to understand his or her
benefit entitlements;
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Regulation 7.9.19A
Corporations Regulations 2001 227
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(j) a statement of the way in which a product holder is able to
gain access to information in relation to his or her investment
in the financial product.
7.9.19A Withdrawal benefit—fees, charges or expenses
(1) For subsection 1017D(5A) of the Act, in providing details of a
deduction for fees, charges or expenses in accordance with
paragraph 7.9.19(g), the amount must be stated in dollars.
(2) If ASIC determines that, for a compelling reason, it is not possible
to state the amount of a deduction in dollars the amount of the
deduction may be set out as a description of the fees, charges or
expenses as a percentage of a specified matter (including worked
dollar examples, unless that is inappropriate).
(3) If ASIC determines that, for a compelling reason, it is not possible
to state the amount of a deduction in dollars, or to set out the
amount as a percentage, the product issuer may provide:
(a) a statement informing the holder of the product that amounts
for fees, charges or expenses are applicable; and
(b) if information about access to the information about the
amount of the deduction is not provided in the statement
mentioned in paragraph 7.9.19(h)—details of the means by
which a product holder can gain access to information
relating to the amount of the deduction.
(4) A determination under subregulation (2) or (3) must be:
(a) in writing; and
(b) published in the Gazette.
7.9.19B Withdrawal benefit—fees, charges and expenses
(1) For subsection 1017D(5A) of the Act, this regulation applies to
details of a deduction for fees, charges or expenses in accordance
with paragraph 7.9.19(g).
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.19B
228 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) If ASIC determines that, for a compelling reason based on the
nature of a financial product or service, or the nature of the
information, to state the information as an amount in dollars:
(a) would impose an unreasonable burden on a product issuer, or
a class of product issuers; or
(b) would impose an unreasonable burden on a product issuer, or
a class of product issuers, within a period specified in the
determination; or
(c) would not be in the interests of a product holder, or a class of
product holders;
the information may be set out as a description of the amount as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(3) If ASIC determines that, for a compelling reason, based on the
nature of a financial product or service, or the nature of the
information, to state the information as an amount in dollars, or to
describe the amount as a percentage:
(a) would impose an unreasonable burden on a product issuer, or
a class of product issuers; or
(b) would impose an unreasonable burden on a product issuer, or
a class of product issuers, within a period specified in the
determination; or
(c) would not be in the interests of a product holder, or a class of
product holders;
the product issuer must provide the information in
subregulation (4).
(4) If subregulation (3) applies, the product issuer must provide:
(a) a statement informing the product holder that amounts for
fees, charges or expenses are applicable; and
(b) if information about access to the information is not provided
in the statement mentioned in paragraph 7.9.19(i)—details of
the means by which a product holder can gain access to
information relating to the amount of the deduction.
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Regulation 7.9.20
Corporations Regulations 2001 229
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(5) A determination under subregulation (2) or (3) must be:
(a) in writing; and
(b) published in the Gazette.
7.9.20 Specific requirements for certain periodic statements:
superannuation funds (other than self managed
superannuation funds)
(1) For paragraph 1017D(5)(g) of the Act, a periodic statement for a
member of a fund (other than a self managed superannuation fund)
must include the following details:
(a) the amount of the member’s contributions during the
reporting period;
(b) the amount of benefits rolled-over or otherwise transferred
into the fund during the reporting period;
(c) the amount of withdrawals during the reporting period;
(d) the information about costs of transactions mentioned in
regulation 7.9.75;
(e) the amount of any allotment of employer contributions
during the reporting period;
(f) the amount of any allotment of net earnings during the
reporting period (including, for a unitised product, the
presentation of changes in price as amounts in dollars);
(g) the rate of any allotment of net earnings during the reporting
period;
(h) the amount of bonuses that have accrued at the end of the
reporting period;
(i) the amount of the sum assured;
(j) the amount payable in the event of the member’s death:
(i) at the end of the reporting period; or
(ii) on the first day of the next reporting period;
or the method by which that amount is worked out;
(k) for a reporting period (within the meaning of
subsection 1017D(2) of the Act) commencing before 1 July
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Regulation 7.9.20
230 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
2004—details, including the amount or method of working
out, of other significant benefits, including, in particular,
disability benefits;
(ka) for a reporting period (within the meaning of
subsection 1017D(2) of the Act) commencing on or after
1 July 2004:
(i) details of other significant benefits, including disability
benefits, and the amount of the benefits at the end of the
reporting period, or the method of working out the
amount of the benefits; and
(ii) if the periodic statement includes an amount mentioned
in subparagraph (i)—a statement informing the holder
of the product that:
(A) the details of the significant benefit reflects the
situation for the member on the date shown in
the statement and the amount might change;
and
(B) the issuer is obliged to provide product holders
with any information they reasonably require
for the purpose of understanding their benefit
entitlements; and
(iii) details of the means by which a product holder is able to
gain access to information relating to the amount of a
significant benefit;
(kb) if, in providing details of other significant benefits for a
reporting period, a deduction for fees, charges or expenses
has been made or might be made—details of the deduction;
(l) if the trustee is aware, or ought reasonably to be aware, of
contributions that are due and payable during the reporting
period but have not been paid to the fund at, or shortly
before, the date of issue of the report, details of the amount of
those contributions and of action that the trustee has taken, or
proposes to take, to have the contributions paid;
(m) the net amount of Government co-contribution received
during the reporting period;
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Regulation 7.9.20AA
Corporations Regulations 2001 231
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(n) for a regulated superannuation fund—a statement of
long-term returns, in accordance with regulation 7.9.20AA,
of:
(i) the MySuper product or investment option within a
choice product in which a member is invested; or
(ii) the sub-plan, or, if none, the fund in which the member
holds an interest;
(o) for a regulated superannuation fund, if the trustee is required
to make publicly available a product dashboard for the
investment option, under section 1017BA of the Act—the
latest product dashboard for the investment option.
(2) For paragraph (1)(g), if the earnings rate for members of the fund
is reflected in the price of units of the fund, rather than being
credited or debited against the accounts of members, an earnings
rate allotted to members in respect of a period is taken to be a
change in the value of the members’ units being determined by the
trustee in respect of that period.
(2A) For paragraph (1)(m), the periodic statement may state separately:
(a) the amount of Government co-contributions received; and
(b) the amount of low income superannuation contributions
received.
Note: See section 12B of the Superannuation (Government Co-contribution
for Low Income Earners) Act 2003 for the way in which a law that
applies in relation to a Government co-contribution applies in relation
to a low income superannuation contribution.
(3) A nil amount need not be disclosed.
7.9.20AA Specific requirements for certain periodic statements:
superannuation funds (other than self managed
superannuation funds)—long-term returns
(1) For paragraph 7.9.20(1)(n), this regulation sets out requirements
that apply to a trustee of a regulated superannuation fund (other
than a self managed fund).
Federal Register of Legislative Instruments F2015C00303
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Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
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Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.20AA
232 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Requirements from 1 July 2009 until 30 June 2010
(2) The trustee must provide to each member of the regulated
superannuation fund, in or with the periodic statement for a
reporting period that is provided during the period starting on
1 July 2009 and ending at the end of 30 June 2010:
(a) a statement of the long-term returns of the investment option
in which the member is invested at the end of the reporting
period, if the member is invested in an investment option; or
(b) a statement of the long-term returns of the sub-plan, or, if
none, the fund in which the member holds an interest at the
end of the reporting period.
(3) For paragraph (2)(a), the long-term returns must be stated as the
compound average effective rate of net earnings of the investment
option for the period of 5 years ending at the end of the last
financial year or reporting period before the provision of the
periodic statement.
(4) For paragraph (2)(b), the long-term returns must be stated as the
compound average effective rate of net earnings of the sub-plan or
fund for the period of 5 years ending at the end of the last financial
year or reporting period before the provision of the periodic
statement.
(5) If:
(a) the trustee provides the statement of long-term returns on an
insert to the periodic statement; and
(b) the insert includes the long-term returns of investment
options in which the member is not invested, as well as the
long term returns of the investment option in which the
member is invested;
the periodic statement must include a statement of which
investment option the member is invested in.
(6) If the trustee provides the long-term returns in the periodic
statement, the trustee must include in the periodic statement, near
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Regulation 7.9.20AA
Corporations Regulations 2001 233
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
to the statement of long-term returns, a statement to the effect that
the returns are not the returns of the member’s investment in the
investment option, sub-plan or fund.
(7) If the trustee provides the long-term returns on an insert to the
periodic statement, the trustee must include in the periodic
statement, and on the insert near to the statement of long-term
returns, a statement to the effect that the returns are not the returns
of the member’s investment in the investment option, sub-plan or
fund.
Requirements from 1 July 2010
(8) The trustee must provide the following, in the periodic statement
for a reporting period that is provided from 1 July 2010, to each
member of the regulated superannuation fund:
(a) if the member is invested in an investment option at the end
of the reporting period—a statement of the long-term returns
of the investment option;
(b) if the member is not invested in an investment option at the
end of the reporting period—a statement of the long term
returns of the sub-plan, or, if none, the fund in which the
member holds an interest at the end of the reporting period.
(9) For paragraph (8)(a), the long-term returns must be stated as:
(a) the compound average effective rate of net earnings of the
investment option for the period of 5 years ending at the end
of the last financial year or reporting period before the
provision of the periodic statement; and
(b) the compound average effective rate of net earnings of the
investment option for the period of 10 years ending at the end
of that financial year or reporting period.
(10) For paragraph (8)(b), the long-term returns must be stated as:
(a) the compound average effective rate of net earnings of the
sub-plan or fund for the period of 5 years ending at the end of
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Regulation 7.9.20A
234 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
the last financial year or reporting period before the provision
of the periodic statement; and
(b) the compound average effective rate of net earnings of the
sub-plan or fund for the period of 10 years ending at the end
of that financial year or reporting period.
(11) The trustee must include in the periodic statement, near to the
statement of long-term returns, a statement to the effect that the
returns are not the returns of the member’s investment in the
investment option, sub-plan or fund.
General requirements
(12) For subregulations (3), (4), (9) and (10), if the investment option,
sub-plan or fund has been in operation for less than the 5-year or
10-year period to be reported on, the trustee must provide:
(a) the long-term return for the period in which the investment
option, sub-plan or fund has been in operation; and
(b) the date on which the investment option, sub-plan or fund
came into operation.
(13) If the long-term returns are provided in the periodic statement, they
must be positioned near to the statement of the rate of any
allotment of earnings during the reporting period.
(14) The long-term returns must be presented in a clear, concise and
effective manner.
7.9.20A Details of other significant benefits—disclosure of fees,
charges or expenses
(1) For subsection 1017D(5A) of the Act, in providing details of a
deduction for fees, charges or expenses in accordance with
paragraph 7.9.20(1)(kb):
(a) the amount must be stated in dollars; or
(b) if ASIC determines that, for a compelling reason, it is not
possible to state the amount of a deduction in dollars the
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Regulation 7.9.20B
Corporations Regulations 2001 235
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
amount of the deduction may be set out as a description of
the fees, charges or expenses as a percentage of a specified
matter (including worked dollar examples, unless that is
inappropriate); or
(c) if ASIC determines that, for a compelling reason, it is not
possible to state the amount of a deduction in dollars, or to
set out the amount as a percentage, the product issuer may
provide:
(i) a statement informing the holder of the product that
amounts for fees, charges or expenses are applicable;
and
(ii) if information about the deduction is not provided in the
statement mentioned in
sub-subparagraph 7.9.20(1)(ka)(ii)(B)—details of the
means by which a product holder can gain access to
information relating to the amount.
(2) A determination under paragraph (1)(b) or (c) must be:
(a) in writing; and
(b) published in the Gazette.
7.9.20B Other significant benefits—disclosure of fees, charges or
expenses
(1) For subsection 1017D(5A) of the Act, this regulation applies to
details of a deduction for fees, charges or expenses mentioned in
paragraph 7.9.20(1)(kb).
(2) If ASIC determines that, for a compelling reason based on the
nature of a financial product or service, or the nature of the
information, to state the amount of the deduction in dollars:
(a) would impose an unreasonable burden on a product issuer, or
a class of product issuers; or
(b) would impose an unreasonable burden on a product issuer, or
a class of product issuers, within a period specified in the
determination; or
Federal Register of Legislative Instruments F2015C00303
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Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5 Ongoing requirements for product disclosure after person becomes a
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Regulation 7.9.20B
236 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) would not be in the interests of a product holder, or a class of
product holders;
the information may be set out as a description of the amount as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(3) If ASIC determines that, for a compelling reason, based on the
nature of a financial product or service, or the nature of the
information, to state the amount of a deduction in dollars, or, to
describe the amount as a percentage:
(a) would impose an unreasonable burden on a product issuer, or
a class of product issuers; or
(b) would impose an unreasonable burden on a product issuer, or
a class of product issuers, within a period specified in the
determination; or
(c) would not be in the interests of a product holder, or a class of
product holders;
the product issuer must provide the information in
subregulation (4).
(4) If subregulation (3) applies, the product issuer must provide:
(a) a statement informing the product holder that amounts for
fees, charges or expenses are applicable; and
(b) if information about the deduction is not provided in the
statement mentioned in
sub-subparagraph 7.9.20(1)(ka)(ii)(B)—details of the means
by which a product holder can gain access to information
relating to the amount of the deduction.
(5) A determination under subregulation (2) or (3) must be:
(a) in writing; and
(b) published in the Gazette.
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Regulation 7.9.21
Corporations Regulations 2001 237
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.21 Specific requirements in particular cases: member (other than
capital guaranteed member) of fund other than a self
managed superannuation fund
(1) For paragraph 1017D(5)(g) of the Act, and in addition to
regulations 7.9.19 and 7.9.20, a periodic statement for a member
(other than a capital guaranteed member) of a fund (other than a
self managed superannuation fund) must include the following
details:
(a) if the fund is an unfunded defined benefits fund—details of
the surcharge debt account kept by the trustee, under
subsection 16(2) of the Superannuation Contributions Tax
(Assessment and Collection) Act 1997, for the member,
including:
(i) the balance of the account at the start of the reporting
period; and
(ii) the amount debited to the account for superannuation
contributions surcharge assessed, by the Commissioner
of Taxation, to be payable on the member’s
surchargeable contributions; and
(iii) the amount of interest debited, under subsection 16(4)
of that Act, to the account during the reporting period;
and
(iv) the balance of the account at the end of the reporting
period;
(b) if the trustee reduced the member’s benefits in connection
with payment of a superannuation contributions surcharge or
an advance instalment of surcharge:
(i) the amount deducted; and
(ii) if there is a difference between the amount deducted and
the amount assessed under subsection 15(1) of the
Superannuation Contributions Tax (Assessment and
Collection) Act 1997 or between the amount deducted
and the amount determined under subsection 15(2) of
that Act—a statement explaining the difference;
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Regulation 7.9.22
238 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) a description of the nature, effect and significant features of
surcharge debt accounts.
(2) A nil amount need not be disclosed.
7.9.22 Specific requirements: capital guaranteed funds and RSAs
(1) For paragraph 1017D(5)(g) of the Act, and in addition to
regulations 7.9.19 and 7.9.20, a periodic statement for a member of
a capital guaranteed fund must include the following details:
(a) a statement that outlines the means by which the fund is to be
maintained as a capital guaranteed fund and sets out the name
of the institution providing the investments that back the
fund;
(b) a statement that outlines the effect of the
lower-risk/lower-return nature of the product on possible
benefits in the long term;
(c) a statement that the member may wish to consider:
(i) other superannuation arrangements that may provide a
greater return over the long term; and
(ii) seeking advice on alternative investment arrangements
that may be more suitable.
(2) For paragraph 1017D(5)(g) of the Act, and in addition to
regulation 7.9.19, a periodic statement for an RSA holder must
include the following details:
(a) a statement that outlines the effect of the
lower-risk/lower-return nature of the product on possible
benefits in the long term;
(b) a suggestion that the RSA holder may wish to consider:
(i) other superannuation arrangements that may provide a
greater return over the long term; and
(ii) seeking advice on alternative investment strategies that
may be more suitable.
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5
Regulation 7.9.23
Corporations Regulations 2001 239
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.23 Information for capital guaranteed fund: benefits reach
$10 000
For paragraph 1017D(5)(g) of the Act, and in addition to
regulations 7.9.19 and 7.9.22, if the amount of the benefits of a
member in a capital guaranteed fund at the end of a reporting
period is at least $10 000, the periodic statement for that reporting
period must include the following details:
(a) a statement of that fact;
(b) a statement that the information contained in the periodic
statement is important and that the notice must be read
carefully;
(c) a statement that outlines the effect of the
lower-risk/lower-return nature of the product on possible
benefits in the long term;
(d) a statement that the member may wish to consider:
(i) other superannuation arrangements that may provide a
greater return over the long term; and
(ii) seeking advice on alternative investment arrangements
that may be more suitable.
7.9.24 Modification of Act: pensioners, members subject to
compulsory protection of small amounts and members
with small amounts that are expected to grow quickly
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to a superannuation entity or
an RSA to which this Subdivision applies as set out in Part 7 of
Schedule 10A.
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Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.25
240 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Subdivision 5.3—Periodic statements for retail clients for
financial products that have an investment
component: information for RSAs
7.9.25 Application of Subdivision 5.3
This Subdivision applies in relation to an RSA provider.
7.9.26 Specific requirements where applicable: RSAs
(1) For paragraph 1017D(5)(g) of the Act, and in addition to
regulation 7.9.19, a periodic statement for an RSA holder must
include details of the following matters in respect of the RSA
holder so far as they are applicable:
(a) the amount of the RSA holder’s contributions during the
reporting period;
(b) the amount of employer contributions during the reporting
period;
(c) the amount of benefits rolled-over or transferred into the
RSA during the reporting period;
(d) the amount of withdrawals during the reporting period;
(e) information about the cost of transactions mentioned in
Division 8;
(f) the amount of interest credited to the RSA during the
reporting period;
(g) the annual effective rate of net interest applied to the RSA
during the reporting period;
(h) a statement of:
(i) the annual effective rate of net earnings in each of the
most recent reporting periods that, in total, constitute a
period of at least 5 years; and
(ii) the compound average effective rate of net earnings for
the period of 5 years ending at the end of the reporting
period;
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products Part 7.9
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Regulation 7.9.26
Corporations Regulations 2001 241
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) the effect of the RSA holder-protection standards under the
RSA Regulations;
(j) the amount of bonuses that have accrued at the end of the
reporting period;
(k) if a risk insurance product is held by the RSA provider—the
amount of the sum assured;
(l) the circumstances when benefits may be paid to an eligible
rollover fund, the effect of that payment and the contact
details of the eligible rollover fund;
(m) the amount payable in the event of the RSA holder’s death:
(i) at the end of the reporting period; or
(ii) on the first day of the next reporting period;
or the method by which that amount is worked out;
(n) the amount, or method of working out, of other benefits
including, in particular, disability benefits;
(o) if the RSA provider reduced the RSA holder’s benefits in
connection with payment of a superannuation contributions
surcharge or an advance instalment of surcharge:
(i) the amount deducted; and
(ii) if there is a difference between the amount deducted and
the amount assessed under subsection 15(1) of the
Superannuation Contributions Tax (Assessment and
Collection) Act 1997 or between the amount deducted
and the amount determined under subsection 15(2) of
that Act—a statement explaining the difference;
(p) the net amount of Government co-contribution received
during the reporting period.
(2) A nil amount need not be disclosed.
(3) If, at the end of a reporting period, an RSA has not been in
existence for 5 years, the references in paragraph (1)(h) to 5 years
are taken to be references to the whole period of existence of the
RSA.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.27
242 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.27 Modification of Act: periodic statements for RSA holders
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to an RSA to which this
Subdivision applies as set out in Part 8 of Schedule 10A.
7.9.28 Information for RSA: amount reaches $10 000
For paragraph 1017D(5)(g) of the Act, if the amount of an RSA at
the end of a reporting period is at least $10 000, the periodic
statement for that reporting period must include the following, in
addition to the details mentioned in regulations 7.9.19 and 7.9.22:
(a) a statement of that fact;
(b) a statement that the information contained in the periodic
statement is important and that the notice must be read
carefully;
(c) a statement that outlines the effect of the lower-risk/
lower-return nature of the RSA on possible benefits in the
long term;
(d) a suggestion that the RSA holder may wish to consider:
(i) other superannuation arrangements that may provide a
greater return over the long term; and
(ii) seeking advice on alternative investment strategies that
may be more suitable.
Subdivision 5.4—Periodic statements for retail clients for
financial products that have an investment
component: additional information for
superannuation entities and RSA providers
7.9.29 Application of Subdivision 5.4
This Subdivision applies in relation to a superannuation entity and
an RSA provider.
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Financial services and markets Chapter 7
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Regulation 7.9.30
Corporations Regulations 2001 243
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.30 Additional information for change to choices
(1) For paragraph 1017D(5)(g) of the Act, a periodic statement for a
holder of a financial product must include, if relevant, either of the
following details (in addition to the details mentioned in
regulation 7.9.20 or 7.9.26, as appropriate):
(a) details of:
(i) other investment strategies available to the holder (if
applicable); and
(ii) other contribution levels available to the holder; and
(iii) other insurance coverage available to the holder in
relation to the financial product;
(b) a statement:
(i) that the details in paragraph (a) are available on request
from the responsible person; and
(ii) about how to ask for the details.
(2) The details or statement must relate to:
(a) an interest in the same sub-plan; or
(b) if there is no sub-plan—an interest in the same
superannuation entity or an RSA.
(3) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to a superannuation entity
and an RSA provider as set out in Part 9 of Schedule 10A.
Subdivision 5.4A—Periodic statements for retail clients for
financial products that have an investment
component: additional information for margin
lending facilities
7.9.30A Application of Subdivision 5.4A
(1) This Subdivision applies in relation to the provider of a margin
lending facility within the meaning of subsection 761EA(1) of the
Act.
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Regulation 7.9.30B
244 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) For the purposes of this Subdivision, subsection 1017D(5) of the
Act is modified to omit paragraphs (a) to (f).
Note: Paragraph 1020G(1)(c) of the Act provides that the regulations may
provide that Part 7.9 of the Act applies as if specified provisions were
omitted, modified or varied as specified in the regulations.
7.9.30B Details to be included in periodic statements for margin
lending facilities
For paragraph 1017D(5)(g) of the Act, a periodic statement for a
holder of a financial product must include the following details
about the margin lending facility:
(a) the outstanding loan amount;
(b) the loan credit limit;
(c) the current interest rate, and any changes to the interest rate
since the last statement was provided;
(d) an itemised list of the property by which the credit is secured,
including:
(i) the value of each item used for calculating the current
LVR; and
(ii) the loan to value ratio (if any) of each property item
listed;
(e) a summary of the loan to security ratios, showing separately:
(i) the allowable loan to security ratio; and
(ii) the maximum loan to security ratio, including any
buffer allowed under the terms of the facility; and
(iii) the current LVR;
(f) a summary of all transactions affecting the margin lending
facility during the reporting period.
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Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
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Ongoing requirements for product disclosure after person becomes a member Division
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Regulation 7.9.31
Corporations Regulations 2001 245
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Subdivision 5.5—Fund information for retail clients for
financial products that have an investment
component: superannuation
7.9.31 Application of Subdivision 5.5
This Subdivision applies in relation to:
(a) a regulated superannuation fund; and
(b) an approved deposit fund; and
(c) a pooled superannuation trust.
7.9.32 Reporting periods: general
(1) For subsection 1017DA(2) of the Act, fund information as
mentioned in Subdivisions 5.6 and 5.7 must be provided, in
accordance with this regulation, to the product holder in a periodic
statement for each fund reporting period during which the holder
holds the product.
(2) The following provisions apply in relation to fund reporting
periods:
(a) each reporting period lasts for:
(i) a period not exceeding 1 year, fixed by the issuer; or
(ii) a longer period fixed by ASIC on the application of the
issuer to which the period relates;
(b) the first reporting period starts when the holder acquired the
product;
(c) each subsequent reporting period starts at the end of the
preceding reporting period.
(3) The periodic fund statement must be given as soon as practicable
after, and in any event within 6 months after the end of the
reporting period to which it relates.
(4) In relation to a fund reporting period, information required to be
given under Subdivisions 5.5 to 5.7 need only be given to persons
Federal Register of Legislative Instruments F2015C00303
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Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
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Division 5 Ongoing requirements for product disclosure after person becomes a
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Regulation 7.9.33
246 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
who are product holders on the day on which the fund report
containing the information is completed.
(5) For subsection 1017DA(2) of the Act, fund information in relation
to a particular product holder that is provided in accordance with
an obligation under section 1017DA of the Act to provide fund
information in accordance with Subdivisions 5.5 to 5.7 need not be
given in respect of the same fund reporting period.
Example: A superannuation fund may choose to report:
(a) some fund information in respect of a 6-month period; and
(b) further fund information, and a periodic report, in respect of a 9-month period; and
(c) the remaining fund information in respect of a 12-month period.
7.9.33 Use of more than 1 document
For subsection 1017DA(2) of the Act, a reference in
Subdivisions 5.5 to 5.7 to a periodic fund report, or fund
information:
(a) includes 2 or more documents that include all of the
information required by those Subdivisions; and
(b) is to be read as if subsections 1013L(1), (2), (3), (5) and (7)
of the Act were included in those Subdivisions, and referred
to a periodic statement instead of a Product Disclosure
Statement.
Subdivision 5.6—Fund information for retail clients for
financial products that have an investment
component: fund information for regulated
superannuation funds and ADFs
7.9.34 Application of Subdivision 5.6
This Subdivision applies in relation to:
(a) a regulated superannuation fund; and
(b) an approved deposit fund.
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Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
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Regulation 7.9.35
Corporations Regulations 2001 247
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.35 General requirement
For paragraph 1017DA(1)(a) of the Act, fund information must
include all information that the responsible person reasonably
believes a product holder would reasonably need for the purpose
of:
(a) understanding the management and financial condition of the
fund and of the relevant sub-plan (if any); and
(b) understanding the investment performance of the relevant
sub-plan or, if none, of the fund.
7.9.36 Specific requirements in all cases
For paragraph 1017DA(1)(a) of the Act, fund information must
include all of the following items of information:
(a) the contact details of the fund;
(b) in respect of the relevant sub-plan or, if none, of the fund—a
description of:
(i) the investment strategy of the fund trustee, having
regard to the requirements of paragraph 52(2)(f) of the
SIS Act; and
(ii) the investment objectives.
7.9.37 Specific requirements in particular cases
(1) For paragraph 1017DA(1)(a) of the Act, fund information must
include all of the following, so far as they are applicable:
(a) in respect of the relevant sub-plan or, if none, of the fund—
the names of investment managers appointed by the trustee;
(b) in the case of a standard employer-sponsored fund that is not
a public offer superannuation fund and does not have a
trustee approved under subsection 92(10) of the SIS Act:
(i) if the trustee of the fund is a body corporate, the name
of that body corporate and the names of all its directors
during the whole or any part of the reporting period and,
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Division 5 Ongoing requirements for product disclosure after person becomes a
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Regulation 7.9.37
248 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
in respect of each of those directors, details of how and
by whom they were appointed;
(ii) if the trustees of the fund are individuals, the names of
the trustees of the fund during the whole or any part of
the relevant reporting period and, in respect of each of
those trustees, details of how and by whom they were
appointed;
(c) in the case of a fund other than a fund mentioned in
paragraph (b):
(i) the name of each corporate trustee of the fund during
the relevant reporting period; and
(ii) in respect of the relevant policy committee (if any),
details of the committee (including the names of the
committee members as at the end of that reporting
period and, in respect of each of the members, details of
how and by whom they were appointed);
(d) a statement as to whether or not any indemnity insurance has
been taken out by the trustee;
(e) either:
(i) the audited fund accounts, the auditor’s report and, if
there is a relevant sub-plan, abridged financial
information relating to that sub-plan; or
(ii) each of the following:
(A) abridged financial information relating to the
relevant sub-plan or, if none, to the fund;
(B) information as to when the audited fund
accounts and the auditor’s report will be sent to
members or will be available to members on
request, as the case may be;
(f) in respect of the relevant sub-plan or, if none, of the fund—a
statement of assets as at the end of:
(i) the relevant reporting period; and
(ii) the immediately preceding reporting period;
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Regulation 7.9.37
Corporations Regulations 2001 249
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
that includes all information that the responsible person
reasonably believes a member would reasonably need to
understand the asset allocation at those times;
(g) details of:
(i) each investment that has a value in excess of 5% of the
total assets of the relevant sub-plan or, if none, of the
fund; and
(ii) each combination of investments that the trustee knows
or ought reasonably to know are invested in, directly or
indirectly, a single enterprise or single group of
associated enterprises and that have a combined value in
excess of 5% of the total assets of the relevant sub-plan
or, if none, of the fund;
(h) a statement regarding the funds policy toward the use of
derivative securities;
(i) if the derivatives charge ratio of the fund (as defined in the
SIS Regulations) exceeded 5% at any time during the
reporting period:
(i) the derivatives charge ratio as at the end of the reporting
period; and
(ii) the highest derivatives charge ratio attained during the
reporting period; and
(iii) an explanation of why the derivatives charge ratio
exceeded 5%; and
(iv) an explanation of the meaning of derivatives charge
ratio in, or to the effect of the following:
‘The derivatives charge ratio is the percentage of the
total market value of the assets of the fund (other than
cash) that the trustee has charged as security for
derivatives investments made by the trustee.’;
(k) if the fund maintains reserves—in respect of the relevant
sub-plan or, if none, of the fund, details of movements of
reserves during the most recent reporting periods that, in
total, constitute at least 3 years;
Federal Register of Legislative Instruments F2015C00303
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Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
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Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.37
250 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(l) if the net earnings of the fund are allotted to members’
accounts—in respect of the relevant sub-plan or, if none, of
the fund, the manner in which the allotment is made;
(m) if the fund maintains reserves—in respect of the relevant
sub-plan or, if none, of the fund, a description of the
management strategy of the fund trustee in relation to the
reserves, having regard to the requirements of
paragraph 52(2)(g) of the SIS Act;
(n) details of any penalties imposed on the responsible person
under:
(i) section 38A of the SIS Act; or
(ii) section 182 of the RSA Act;
(o) if the fund is:
(i) a defined benefit fund; and
(ii) the contributions paid by the employer-sponsor in the
reporting period are less than the amount that an actuary
has approved as sufficient contributions in that period;
and
(iii) the difference is material;
in respect of the relevant sub-plan or, if none, of the fund—a
statement to the effect that the matters stated in
subparagraphs (ii) and (iii) apply, and statements of:
(iv) the consequences for the fund of the shortfall; and
(v) any action that the trustee has taken, or proposes to take,
in relation to the matter;
(p) the ultimate source (including, for example, the fund’s
reserves, the members’ accounts or the employer) from
which payments in connection with superannuation
contributions surcharges or advance instalments of surcharge
will be drawn;
(q) if there are circumstances in which the trustee would pay the
member’s benefit to an eligible rollover fund:
(i) details of those circumstances; and
(ii) the contact details of the eligible rollover fund; and
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Regulation 7.9.38
Corporations Regulations 2001 251
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(iii) a statement of the effect of the payment of benefits to
the eligible rollover fund.
(2) A nil amount need not be disclosed.
(3) For subparagraph (1)(g)(ii), investments in a trust are taken not to
be invested in the trustee of the trust.
(5) In this regulation:
abridged financial information, in relation to a reporting period of
a fund or a sub-plan, means information derived from the fund’s
accounts or records that gives a reasonable summary of either:
(a) both:
(i) changes in the financial position of the fund or sub-plan
during the reporting period; and
(ii) the financial position of the fund or sub-plan at the end
of the reporting period; or
(b) both:
(i) changes in the net assets of the fund or sub-plan during
the reporting period; and
(ii) the net assets of the fund or the sub-plan at the end of
the reporting period.
7.9.38 Specific information in particular case: self managed
superannuation fund
For subsection 1017DA(1) of the Act, fund information for a self
managed superannuation fund must include only the information
mentioned in paragraph 7.9.37(1)(p).
7.9.39 Benefits determined by life insurance products
(1) Paragraphs 7.9.37(1)(e), (f) and (g) do not apply to funds from
which the benefits paid to each member are wholly determined by
reference to life insurance products.
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Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.40
252 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) If:
(a) subregulation (1) does not apply only because shares in the
life insurance company issuing the life insurance products
were acquired because the company was demutualised; and
(b) the shares have been held for not more than 18 months after
the date of acquisition;
paragraphs 7.9.37(1)(e), (f) and (g) do not apply to funds from
which the benefits paid to each individual member would
otherwise be wholly determined by reference to life insurance
products.
(3) If subregulation (1) or (2) applies, the fund information must
include the reason why the information for paragraphs 7.9.37(1)(e),
(f) and (g) has not been given.
Subdivision 5.7—Fund information for retail clients for
financial products that have an investment
component: fund information for pooled
superannuation trusts
7.9.40 Application of Subdivision 5.7
This Subdivision applies in relation to a pooled superannuation
trust.
7.9.41 Specific requirements in all cases
For subsection 1017DA(1) of the Act, fund information must
include the following:
(a) in respect of the pooled superannuation trust—a description
of the investment strategy of the pooled superannuation trust
trustee, having regard to:
(i) the requirements of paragraph 52(2)(f) of the SIS Act;
and
(ii) the investment objectives of the pooled superannuation
trust;
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Regulation 7.9.42
Corporations Regulations 2001 253
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) a statement to the effect that other information is available on
request.
7.9.42 Specific requirements in particular cases
(1) For subsection 1017DA(1) of the Act, and subject to
subregulations (2) and (3), fund information must include the
following, so far as they are applicable:
(a) in respect of the pooled superannuation trust—the names of
investment managers appointed by the trustee;
(b) the name of each approved trustee of the pooled
superannuation trust during the relevant reporting period;
(c) either:
(i) the audited accounts of the pooled superannuation trust
and the auditor’s report; or
(ii) each of the following:
(A) abridged financial information relating to the
pooled superannuation trust;
(B) information as to when the audited accounts of
the pooled superannuation trust and the
auditor’s report will be sent to unit-holders or
will be available to unit-holders on request, as
the case may be;
(d) in respect of the pooled superannuation trust—a statement of
assets as at the end of:
(i) the relevant reporting period; and
(ii) the immediately preceding reporting period;
that includes sufficient information to enable unit-holders to
understand the asset allocation at those times;
(e) details of:
(i) each investment that has a value in excess of 5% of the
total assets of the pooled superannuation trust; and
(ii) details of each combination of investments that the
trustee knows or ought reasonably to know are invested,
directly or indirectly, in a single enterprise or single
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Division 5 Ongoing requirements for product disclosure after person becomes a
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Regulation 7.9.42
254 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
group of associated enterprises and that have a
combined value in excess of 5% of the total assets of the
pooled superannuation trust;
(f) in respect of the pooled superannuation trust—the effective
rate of net earnings of the pooled superannuation trust in the
most recent reporting periods that, in total, constitute a period
of at least 3 years;
(g) the information about costs of transactions mentioned in
regulation 7.9.75;
(h) details of any penalties imposed on the trustee under:
(i) section 38A of the SIS Act; or
(ii) section 182 of the RSA Act.
(2) A nil amount need not be disclosed.
(3) For subparagraph (1)(e)(ii), investments in a trust are taken not to
be invested in the trustee of the trust.
(4) In this regulation:
abridged financial information, in relation to a reporting period of
a pooled superannuation trust, means information derived from the
pooled superannuation trust’s accounts that gives a reasonable
summary of:
(a) changes in the pooled superannuation trust’s financial
position during the reporting period; and
(b) the pooled superannuation trust’s financial position at the end
of the reporting period.
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5
Regulation 7.9.43
Corporations Regulations 2001 255
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Subdivision 5.8—Ongoing disclosure of material changes and
significant events
7.9.43 Modification of Act: disclosure of material changes and
significant events in relation to superannuation products
and RSA products
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to:
(a) a regulated superannuation fund (other than a self managed
superannuation fund); and
(b) an approved deposit fund (other than an excluded approved
deposit fund); and
(c) a pooled superannuation trust; and
(d) an RSA;
as set out in Part 10 of Schedule 10A.
7.9.44 Benefits to be paid to eligible rollover fund
(1) For subsection 1017DA(1) of the Act, if the benefits of a
superannuation product holder or RSA product holder will be paid
(otherwise than under a payment split) to an eligible rollover fund
unless the holder chooses, within a specified period, another
superannuation entity, an EPSSS or an RSA to which those
benefits will be paid, the responsible person must give a notice to
the product holder within a reasonable period to allow a decision to
be made.
(2) The notice must include:
(a) information about the payment to the eligible rollover fund
that will assist the product holder to decide between having
the benefits paid to that other superannuation entity, the
EPSSS, the RSA or the eligible rollover fund; and
(b) so much of the following information as is relevant:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
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Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.44
256 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) an explanation why the product issuer (the transferor)
intends to pay the product holder’s benefits to the
eligible rollover fund if the product holder does not
make the choice within the period;
(ii) a statement of the effect of the payment of benefits to
the eligible rollover fund;
(iii) the contact details of the eligible rollover fund;
(iv) subject to subregulation (3), the amount, of the product
holder’s benefits that will be paid from the transferor;
(v) a statement to the effect that, if the product holder
chooses a superannuation entity, EPSSS or RSA that
refuses to accept the payment of the product holder’s
benefit, or the product holder makes no choice within
the specified period, the responsible person will pay the
product holder’s benefits to the eligible rollover fund.
(3) For subparagraph (2)(b)(iv), the product issuer may inform a
product holder of the approximate amount of the product holder’s
benefits if, at the time the information is to be given, the
responsible person cannot determine the exact amount of the
product holder’s benefits that will be paid from the superannuation
entity or RSA.
(4) This regulation does not require the responsible person of the
transferor to provide information about RSAs, EPSSSs or
superannuation entities other than the eligible rollover fund.
(5) The notice may be given in writing or electronic form.
(6) In this regulation:
responsible person means:
(a) a trustee of a superannuation entity; or
(b) an RSA provider.
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Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Ongoing requirements for product disclosure after person becomes a member Division
5
Regulation 7.9.45
Corporations Regulations 2001 257
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Subdivision 5.9—Information on request: members
7.9.45 Regulated superannuation funds, ADFs and pooled
superannuation trusts
(1) This regulation applies in relation to:
(a) a regulated superannuation fund (other than a self managed
superannuation fund); and
(b) an approved deposit fund (other than an excluded approved
deposit fund); and
(c) a pooled superannuation trust.
(2) For paragraph 1017C(5)(a) of the Act, the following are prescribed
documents:
(a) the governing rules of the fund or pooled superannuation
trust;
(b) audited accounts of the fund or pooled superannuation trust,
together with (whether or not specifically requested) the
auditor’s report in relation to the accounts;
(c) for a fund—the most recent actuarial report (as referred to in
regulation 9.30 of the SIS Regulations) on the fund, and any
subsequent written advice by an actuary to the trustee, to the
extent that those documents are relevant to:
(i) the overall financial condition of the fund; or
(ii) the entitlements of a person;
(d) a copy of the fund information given under section 1017DA
of the Act, or Subdivision 2.4.3 of the SIS Regulations, that
was most recently given to the members;
(f) if, for a pooled superannuation trust:
(i) fund information prepared for Subdivision 5.7 of
Division 5; or
(ii) information similar to fund information prepared for the
SIS Regulations;
is relevant to the pooled superannuation trust, the fund
information.
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Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.46
258 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) If the person requesting the information is not a concerned person
or an employer-sponsor, the documents mentioned in
paragraphs (1)(a) and (c) are not prescribed documents.
7.9.46 RSAs
(1) This regulation applies in relation to an RSA.
(2) For paragraph 1017C(5)(a) of the Act, the terms and conditions of
the RSA are a prescribed document.
Subdivision 5.10—Information on request: payments
7.9.47 Modification of Act: charges for information requested
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to a superannuation entity or
an RSA provider as set out in Part 11 of Schedule 10A.
Subdivision 5.11—Information about complaints
7.9.48 Source of power for this Subdivision
This Subdivision is made for section 1017DA of the Act.
7.9.48A Definitions
In this Subdivision:
decision-maker means:
(a) the trustee of a regulated superannuation fund or approved
deposit fund; or
(b) an RSA provider.
eligible person means any of the following:
(a) a beneficiary of a relevant entity;
(b) a former beneficiary of a relevant entity;
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Financial services and markets Chapter 7
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Regulation 7.9.48B
Corporations Regulations 2001 259
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) the executor or administrator of the estate of a former
beneficiary of a relevant entity;
(d) for a complaint that relates to the payment of a death
benefit—a person who:
(i) has an interest in the death benefit; or
(ii) claims to be, or to be entitled to death benefits through,
a person mentioned in subparagraph (i).
relevant entity means any of the following:
(a) a regulated superannuation fund;
(b) an approved deposit fund;
(c) an RSA.
7.9.48B Complaints—general
(1) This regulation applies to a decision-maker if:
(a) an eligible person makes a complaint; and
(b) the decision-maker makes a decision in relation to the
complaint in accordance with the relevant entity’s internal
dispute resolution mechanism.
(2) The decision-maker must, within 30 days of making the decision,
inform the eligible person:
(a) of the date of the decision; and
(b) about the external dispute resolution system that covers
complaints by eligible persons; and
(c) about how that system may be accessed.
Example: Information about the Superannuation Complaints Tribunal.
7.9.48C Complaints about benefits other than death benefits—
decision made
(1) This regulation applies to a decision-maker if:
(a) an eligible person makes a complaint; and
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Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.48D
260 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the complaint is not a complaint that relates to the payment
of a death benefit; and
(c) the decision-maker makes a decision in relation to the
complaint in accordance with the relevant entity’s internal
dispute resolution mechanism.
(2) The decision-maker must, within 30 days of making the decision,
inform the eligible person:
(a) that the eligible person may, in writing, request written
reasons for the decision; and
(b) that the reasons mentioned in paragraph (a) must be given:
(i) within 28 days of the eligible person’s request under
paragraph (a); or
(ii) if the Regulator gives the decision-maker an
extension—within the extended period.
7.9.48D Complaints about benefits other than death benefits—no
decision made
(1) This regulation applies to a decision-maker if:
(a) an eligible person makes a complaint; and
(b) the complaint is not a complaint that relates to the payment
of a death benefit; and
(c) the decision-maker has not made a decision in relation to the
complaint.
(2) The decision-maker must, within 45 days of the complaint, inform
the eligible person:
(a) that if the decision is not made within 90 days of the
complaint, the eligible person may, in writing, request
written reasons for the failure to make the decision; and
(b) that the reasons mentioned in paragraph (a) must be given:
(i) within 28 days of the eligible person’s request under
paragraph (a); or
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
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products Part 7.9
Ongoing requirements for product disclosure after person becomes a member Division
5
Regulation 7.9.48A
Corporations Regulations 2001 261
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) if the Regulator gives the decision-maker an
extension—within the extended period.
7.9.48A Definitions
In this Subdivision:
decision-maker means:
(a) the trustee of a regulated superannuation fund or approved
deposit fund; or
(b) an RSA provider.
eligible person means any of the following:
(a) a beneficiary of a relevant entity;
(b) a former beneficiary of a relevant entity;
(c) the executor or administrator of the estate of a former
beneficiary of a relevant entity;
(d) for a complaint that relates to the payment of a death
benefit—a person who:
(i) has an interest in the death benefit; or
(ii) claims to be, or to be entitled to death benefits through,
a person mentioned in subparagraph (i).
relevant entity means any of the following:
(a) a regulated superannuation fund;
(b) an approved deposit fund;
(c) an RSA.
7.9.48B Complaints—general
(1) This regulation applies to a decision-maker if:
(a) an eligible person makes a complaint; and
(b) the decision-maker makes a decision in relation to the
complaint in accordance with the relevant entity’s internal
dispute resolution mechanism.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.49
262 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) The decision-maker must, within 30 days of making the decision,
inform the eligible person:
(a) of the date of the decision; and
(b) about the external dispute resolution system that covers
complaints by eligible persons; and
(c) about how that system may be accessed.
Example: Information about the Superannuation Complaints Tribunal.
Subdivision 5.12—Periodic report when product holder ceases
to hold product: superannuation products and RSA
products
7.9.49 Application of Subdivision 5.12
For paragraph 1017D(5)(g) of the Act, this Subdivision applies in
relation to:
(a) superannuation products; and
(b) RSA products.
7.9.50 Exit reporting period
In this Subdivision, exit reporting period, in relation to a person
who ceases to hold a product to which this Subdivision applies,
means the reporting period mentioned in paragraph 1017D(2)(d) of
the Act.
7.9.51 Time for compliance
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to a fund as set out in Part 12
of Schedule 10A.
7.9.52 General requirement
For paragraph 1020G(2)(b) of the Act, subsections 1017D(2) and
(4) of the Act are modified, in its application in relation to a person
Federal Register of Legislative Instruments F2015C00303
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products Part 7.9
Ongoing requirements for product disclosure after person becomes a member Division
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Regulation 7.9.53
Corporations Regulations 2001 263
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
who ceases to hold a superannuation product or an RSA product
(other than a product issued by a capital guaranteed fund) by
requiring the issuer of the product to give all information to:
(a) if the person is alive—the person; or
(b) if the person is deceased—each person receiving a benefit as
a result of the person’s death;
that the trustee reasonably believes such a person would reasonably
need for the purpose of understanding his or her investment in the
financial product.
7.9.53 Information on death of product holder
For paragraph 1017D(5)(g) of the Act, if a person ceases by death
to hold a superannuation product (other than an interest in a pooled
superannuation trust) or an RSA product, the periodic report given
to each person receiving a benefit from the issuer of the product as
a result of the person’s death must include:
(a) a statement setting out details (in summary form) of
arrangements that the issuer has made to deal with inquiries
and information about the dispute resolution system that
covers complaints; or
(b) a statement that the details are available on request.
7.9.54 Specific requirements in all cases
For paragraph 1017D(5)(g) of the Act, if a reporting period is the
exit reporting period, the issuer of a superannuation product (other
than the trustee of a self managed superannuation fund or pooled
superannuation trust) must include in the periodic report given to a
person who ceases, otherwise than by death to hold the product:
(a) the information mentioned in regulation 7.9.19; and
(b) in relation to a death or disability benefit that ceases or
reduces, because the person has ceased to hold the product:
(i) either:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.55
264 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(A) the amount of the death or disability benefit
immediately before the person ceased to hold
the product or at the end of the last reporting
period; or
(B) the method of working out the death or
disability benefit; and
(ii) whether a continuation option is available to the person
and, if it is, details of the option, a contact person who is
available to discuss the option and a telephone number
for the contact person.
7.9.55 Specific requirements in particular cases
(1) For paragraph 1017D(5)(g) of the Act, if a reporting period is the
exit reporting period, the issuer of a superannuation product (other
than the trustee of a self managed superannuation fund or pooled
superannuation trust) must include in the periodic report given to a
person who ceases, otherwise than by death to hold the product, the
information mentioned in regulation 7.9.20.
(2) A nil amount need not be disclosed.
7.9.56 Exceptions to exit reporting period provisions:
superannuation products and RSA products
This Subdivision does not apply in relation to a superannuation
product holder who has been provided with the relevant
information in the circumstances described in Part 13 of
Schedule 10A.
7.9.57 Exception—members subject to compulsory protection of
small amounts
For paragraph 1017D(5)(g) of the Act, if a protected holder of a
superannuation product or RSA product ceases to hold the product,
a periodic statement must include the following information for the
exit reporting period:
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Financial services and markets Chapter 7
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products Part 7.9
Ongoing requirements for product disclosure after person becomes a member Division
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Regulation 7.9.58
Corporations Regulations 2001 265
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the contact details of the product provider;
(b) the amount of the product holder’s withdrawal benefit;
(c) the amount of any deduction, from the product holder’s
benefits, in connection with payment of a superannuation
contributions surcharge, or an advance instalment of
surcharge, during the exit reporting period;
(d) if there is a difference between the amount deducted and the
amount assessed under subsection 15(1) of the
Superannuation Contributions Tax (Assessment and
Collection) Act 1997, or between the amount deducted and
the amount determined under subsection 15(2) of that Act—a
statement explaining the difference;
(e) for a superannuation product provided by an unfunded
defined benefits fund—details of the surcharge debt account
kept by the issuer, under subsection 16(2) of the
Superannuation Contributions Tax (Assessment and
Collection) Act 1997, for the holder including:
(i) the balance of the account at the start of the exit
reporting period; and
(ii) the amount debited to the account during the exit
reporting period for superannuation contributions
surcharge that is assessed, by the Commissioner of
Taxation, to be payable on the member’s surchargeable
contributions; and
(iii) the amount of interest debited to the account, under
subsection 16(4) of that Act, during the exit reporting
period; and
(iv) the balance of the account at the end of the exit
reporting period.
7.9.58 Information to be given in cases other than death of RSA
holder
(1) For paragraph 1017D(5)(g) of the Act, if a reporting period for an
RSA is the exit reporting period to which paragraph 1017D(2)(d)
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5 Ongoing requirements for product disclosure after person becomes a
member
Regulation 7.9.59
266 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
of the Act applies for an RSA holder who ceases to be an RSA
holder, otherwise than by death:
(a) the RSA provider must give the RSA holder the information
mentioned in regulation 7.9.19; and
(b) regulation 7.9.22 does not apply.
(2) A nil amount need not be disclosed.
7.9.59 Information to be given where applicable
(1) For paragraph 1017D(5)(g) of the Act, if a reporting period for an
RSA is the exit reporting period to which paragraph 1017D(2)(d)
of the Act applies for an RSA holder who ceases to be an RSA
holder, otherwise than by death, the RSA provider must give the
RSA holder:
(a) the information mentioned in regulation 7.9.26 (other than
paragraphs 7.9.26(1)(h), (i), (l) and (m); and
(b) in the case of a death benefit that ceases or reduces, or will
cease or reduce, because the person has closed the RSA:
(i) either:
(A) the amount of the death benefit immediately
before the person closed the RSA or at the end
of the last RSA holder reporting period; or
(B) the method of working out the death benefit;
and
(ii) whether a continuation option for insurance cover is
available to the person and, if it is, details of the option,
a contact person who is available to discuss the option
and a telephone number for the contact person.
(2) A nil amount need not be disclosed.
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Financial services and markets Chapter 7
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products Part 7.9
Ongoing requirements for product disclosure after person becomes a member Division
5
Regulation 7.9.60
Corporations Regulations 2001 267
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.60 Modification of Act: exceptions to exit reporting period
provisions
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to an RSA as set out in
Part 13 of Schedule 10A.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5AA General requirements for financial disclosure
Regulation 7.9.60A
268 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5AA—General requirements for financial
disclosure
7.9.60A Modification of Act: disclosure
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to the obligation to give
information about financial products as set out in Part 14 of
Schedule 10A.
7.9.60B Disclosure of transactions in periodic statements
(1) This regulation applies to the following periodic statements:
(a) for a financial product other than a superannuation product, a
managed investment product or an investment life insurance
product—a periodic statement in relation to a reporting
period commencing on or after 1 July 2005;
(b) for a superannuation product:
(i) if the periodic statement is not an exit statement—a
periodic statement in relation to a reporting period
commencing on or after 1 July 2005; and
(ii) if the periodic statement is an exit statement—a periodic
statement issued on or after 1 July 2006;
(c) for a managed investment product:
(i) if the periodic statement is not an exit statement—a
periodic statement in relation to a reporting period
commencing on or after 1 July 2006; and
(ii) if the periodic statement is an exit statement—a periodic
statement issued on or after 1 July 2007;
(d) for an investment life insurance product:
(i) if the periodic statement is not an exit statement—a
periodic statement in relation to a reporting period
commencing on or after 1 July 2005; and
(ii) if the periodic statement is an exit statement—a periodic
statement issued on or after 1 July 2006.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
General requirements for financial disclosure Division 5AA
Regulation 7.9.60B
Corporations Regulations 2001 269
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) For paragraph 1017D(5)(c) of the Act, the periodic statement must
include a brief description of each transaction in relation to the
product during the reporting period.
(3) The amount of a transaction must include, if applicable:
(a) GST; and
(b) stamp duty; and
(c) income tax, after deductions have been taken into account.
(4) The description of a contribution paid into a superannuation
account must be sufficient to identify the source of the
contribution, if that information has been recorded by the fund.
(5) A transaction (other than a contribution) of the same kind as
another transaction may be described with the other transaction in a
single item in the periodic statement if:
(a) it is practicable to do so; and
(b) the items are described together on a consistent basis in the
periodic statement.
Example: If a member incurs a weekly management cost, the transactions may
be grouped consistently on a monthly basis in the member’s periodic
statement.
(6) For a superannuation product or a managed investment product, the
only fees and costs that need to be itemised in a periodic statement
are the fees and costs shown in the fees and costs template for a
Product Disclosure Statement in Part 2 of Schedule 10.
(7) The fees and costs mentioned in subsection (6) must be described
using the terms used in the template.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5AB Short-Form Product Disclosure Statements
Regulation 7.9.61AA
270 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5AB—Short-Form Product Disclosure Statements
7.9.61AA Modification of the Act: Short-Form Product Disclosure
Statements
Definition of Short-Form Product Disclosure Statement
(1) For the provisions of the Act set out in column 2 of the following
table, the Parts of the Act specified in column 3 apply as if
section 761A of the Act were modified by inserting after the
definition of self-managed superannuation fund the following
definition:
“Short-Form Product Disclosure Statement, or Short-Form PDS,
means a short-form Product Disclosure Statement that complies
with the requirements of Division 3A of Part 7.9.”
Column 1 Column 2 Column 3
Item Provisions of Act
1 paragraph 951C(1)(c) Part 7.7
2 paragraph 992C(1)(c) Part 7.8
3 paragraph 1020G(1)(c) Part 7.9
Definition of Supplementary Short-Form Product Disclosure
Statement
(2) For the provisions of the Act set out in column 2 of the following
table, the Parts of the Act specified in column 3 apply as if
section 761A of the Act were modified by inserting after the
definition of Supplementary Product Disclosure Statement the
following definition:
“Supplementary Short-Form Product Disclosure Statement, or
Supplementary Short-Form PDS, has the meaning given by
section 1017L.”
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Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Short-Form Product Disclosure Statements Division 5AB
Regulation 7.9.61AA
Corporations Regulations 2001 271
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Column 1 Column 2 Column 3
Item Provisions of Act
1 paragraph 951C(1)(c) Part 7.7
2 paragraph 992C(1)(c) Part 7.8
3 paragraph 1020G(1)(c) Part 7.9
Further modifications in Schedule 10BA
(3) For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act is
modified in its application in relation to Short-Form Product
Disclosure Statements as set out in Schedule 10BA.
(4) For paragraph 992C(1)(c) of the Act, Part 7.8 of the Act is
modified in its application to Short-Form Product Disclosure
Statements as set out in Schedule 10BA.
(5) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application to Short-Form Product Disclosure
Statements as set out in Schedule 10BA.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5A Dealing with money received for financial product before the product is
issued
Regulation 7.9.61A
272 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5A—Dealing with money received for financial
product before the product is issued
7.9.61A Lost application money
(1) This regulation applies if:
(a) a product provider is not able to return money in compliance
with subsection 1017E(4) of the Act; and
(b) the product provider is not able to issue or transfer a financial
product to, or in accordance with the instructions of, the
person who paid that money in compliance with
subsection 1017E(4); and
(c) the money is to be transferred to ASIC to be dealt with under
Part 9.7 of the Act.
(2) This regulation also applies if:
(a) money is taken out of an account mentioned in
subsection 1017E(2) of the Act by a product provider for the
purpose of returning it to the person by whom it was paid in
compliance with paragraph 1017E(3)(a); and
(b) the product provider is not able to return the money in
compliance with subsection 1017E(4).
(3) For paragraph 1017E(3)(d) of the Act, the situations mentioned in
subregulations (1) and (2) are situations in which money may be
taken out of an account mentioned in section 1017E.
(4) For paragraph 1017E(4)(c) of the Act, the product provider must,
after taking the money out of the account:
(a) transfer the money to ASIC to be dealt with under Part 9.7 of
the Act; and
(b) give ASIC any information in the possession of the product
provider that could reasonably assist ASIC to assess a claim
by a person that the person is entitled to the money.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Dealing with money received for financial product before the product is issued
Division 5A
Regulation 7.9.61B
Corporations Regulations 2001 273
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.61B Issue of substitute insurance product
(1) This regulation applies if:
(a) money is paid to acquire an insurance product (the new
product); and
(b) the product provider issues another product (the other
product) which is the same as the new product except for the
date on which it ceases to have effect; and
(c) the product provider has not issued the new product.
(2) For paragraph 1017E(3)(d) of the Act, the situation mentioned in
subregulation (1) is a situation in which money may be taken out of
an account mentioned in section 1017E.
(3) For paragraph 1017E(4)(c) of the Act, the product provider must,
after taking the money out of the account:
(a) issue the new product before the date on which the other
product ceases to have effect; or
(b) return the money to the person by whom it was paid before
the date on which the other product ceases to have effect.
7.9.61C Cheques
For paragraph 1020G(1)(c) of the Act, Part 7.9 applies as if
section 1017E of the Act were modified by adding, after
subsection 1017E(6):
‘(7) For this section, if a payment is made by cheque, the
payment is taken to have been paid to, and received by, the
product provider when the cheque is honoured.’.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5B Confirming transactions
Regulation 7.9.61D
274 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5B—Confirming transactions
7.9.61D Transactions involving superannuation products
(1) For paragraph 1020G(1)(c) of the Act, this regulation applies in
relation to the following financial products:
(a) an interest in a regulated superannuation fund that is not a
public offer superannuation fund;
(b) an RSA product that has been issued to the product holder
because of the operation of subsection 52(4) of the RSA Act;
(c) an interest in an eligible rollover fund of which the product
holder became a member under section 243 of the SIS Act;
(d) an interest in an eligible rollover fund of which the product
holder became a member in the circumstances mentioned in
section 89 of the RSA Act;
(e) an interest in a public offer superannuation fund that is not a
successor fund if:
(i) the product holder is a standard employer-sponsored
member of the fund; or
(ii) the product holder is a person who became a member of
the fund in the circumstances mentioned in
regulation 7.9.06B.
(2) Part 7.9 of the Act applies in relation to the financial products as if
the following subsection were inserted after subsection 1017F(5A)
of the Act:
‘(5B) For a financial product mentioned in regulation 7.9.61D of
the Corporations Regulations 2001:
(a) subsection (5A) does not apply if the responsible person
in relation to a transaction involving the financial
product provides the holder of the financial product with
a facility that is able to be accessed by the holder:
(i) by phone; or
(ii) by writing; or
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Confirming transactions Division 5B
Regulation 7.9.61D
Corporations Regulations 2001 275
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(iii) by another method that the responsible person
knows, or reasonably believes, that the product
holder is able to use; and
(b) confirmation may be provided by means of the facility
mentioned in paragraph (a).’.
(3) Part 7.9 of the Act applies in relation to the financial products as if
paragraph 1017F(6)(a) of the Act were replaced by the following
paragraph:
‘(a) must be:
(i) by telephone; or
(ii) by writing; or
(iii) by another method that the responsible person
knows, or reasonably believes, that the product
holder is able to use; and’.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 5C CGS depository interests
Regulation 7.9.61E
276 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5C—CGS depository interests
7.9.61E CGS depository interest information website
(1) This regulation is made for section 1020AH of the Act.
(2) The CGS depository interest information website is the website at
www.australiangovernmentbonds.gov.au.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Confirmation of transactions Division 6
Regulation 7.9.62
Corporations Regulations 2001 277
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 6—Confirmation of transactions
7.9.62 Confirmation of transaction: superannuation products and
RSAs
(1) For paragraph 1017F(4)(e) of the Act, a transaction is not required
to be confirmed by the trustee of a superannuation fund, an ADF or
pooled superannuation trust if:
(a) the transaction relates to the termination of a superannuation
product; and
(b) the trustee has provided information in accordance with
section 1017D of the Act and Subdivision 5.12 of these
Regulations about having left the superannuation fund, ADF
or pooled superannuation trust.
(1A) For paragraph 1017F(4)(e) of the Act, a transaction is not required
to be confirmed by the trustee of a superannuation fund if the
transaction relates to a superannuation product provided by a self
managed superannuation fund.
(2) For paragraph 1017F(4)(e) of the Act, a transaction is not required
to be confirmed to the product holder by an RSA provider if:
(a) the transaction relates to an RSA; and
(b) the trustee has provided information in accordance with
section 1017D of the Act and Subdivision 5.12 of these
Regulations about closing the RSA.
(3) For paragraph 1017F(4)(e) of the Act, the following transactions in
relation to a financial product are not required to be confirmed:
(a) debiting for fees, taxes or charges in respect of the financial
product or other transactions involving the financial product;
(b) debiting for charges or duties on deposits into, or
withdrawals from, the financial product that are payable
under a law of the Commonwealth or of a State or Territory;
(c) debiting an amount from a basic deposit product or an FHSA
product if:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 6 Confirmation of transactions
Regulation 7.9.62
278 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) the holder of the product has been given a periodic
statement under section 1017D of the Act not later than
6 months after the transaction occurs; and
(ii) the periodic statement contains the information about
the transaction that is required by that section;
(d) crediting an amount to a basic deposit product or an FHSA
product if:
(i) the holder of the product has been given a periodic
statement under section 1017D of the Act not later than
6 months after the transaction occurs; and
(ii) the periodic statement contains the information about
the transaction that is required by that section.
(4) For paragraph 1017F(4)(e) of the Act, the following transactions in
relation to a financial product are not required to be confirmed:
(a) a transaction that is required or authorised by a law of the
Commonwealth or of a State or Territory;
(b) a transaction:
(i) consisting solely of an additional contribution towards
the financial product; and
(ii) in relation to which the holder has agreed to the timing
and amount, or method of calculating the amount, of the
additional contribution;
(c) a transaction:
(i) consisting solely of a withdrawal from the financial
product; and
(ii) in relation to which the holder has agreed to the timing
and amount, or method of calculating the amount, of the
withdrawal;
(d) a transaction:
(i) consisting solely of the acquisition of managed
investment products; and
(ii) in relation to which the holder has agreed to the timing
and amount, or method of calculating the amount, of the
acquisition; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Confirmation of transactions Division 6
Regulation 7.9.62
Corporations Regulations 2001 279
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(iii) in relation to which the holder of the managed
investment products, before agreeing to the acquisition,
already held or had agreed to acquire managed
investment products that were interests in the same
registered managed investment scheme as the managed
investment products that are to be acquired under the
agreement;
(e) a transaction that relates to:
(i) a superannuation product or an RSA product; and
(ii) a superannuation surcharge liability for a product holder
arising under section 10 of the Superannuation
Contribution Tax (Assessment and Collections) Act
1997;
(f) the acceptance or settlement of a claim relating to an
insurance product;
(g) a transaction consisting of:
(i) the generating by a financial product of a financial
return or other benefit for the holder of the product; or
(ii) the payment to that holder of that return or other benefit,
if the holder has agreed to the method by which the
payment will be made; or
(iii) crediting negative interest to a member’s notional
account in a superannuation fund, ADF or pooled
superannuation trust account;
(h) a transaction that relates to:
(i) a superannuation product or an RSA product; and
(ii) a Government co-contribution arising under section 6 of
the Superannuation (Government Co-contribution for
Low Income Earners) Act 2003.
(5) For paragraph 1017F(4)(e) of the Act, a transaction in relation to a
financial product is not required to be confirmed if:
(a) the transaction is debiting an amount from a basic deposit
product in the circumstances in paragraph (3)(c); and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 6 Confirmation of transactions
Regulation 7.9.63
280 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the transaction involves the use of a facility for making
non-cash payments that is linked to the basic deposit product;
and
(c) the amount is debited from the basic deposit product for the
purpose of making a payment.
(6) For paragraph 1017F(4)(e) of the Act, a transaction in relation to a
financial product is not required to be confirmed if:
(a) the transaction is crediting an amount to a credit facility; and
(b) the transaction involves the use of a facility for making
non-cash payments that is linked to the credit facility; and
(c) the amount is credited to the credit facility for the purpose of
making a payment.
7.9.63 Confirmation of transactions: precise costs of transaction not
known
(1) For subparagraph 1017F(8)(c)(iii) of the Act, the confirmation of a
transaction of a financial product is not required to include details
of the amount payable by the holder of the financial product if the
amount is not known at the time of the confirmation.
(2) For subparagraph 1017F(8)(c)(iv) of the Act, the confirmation of a
transaction of a financial product is not required to give details of
the taxes and stamp duties payable in relation to the transaction if
the amount of the taxes and stamp duties is not known at the time
of the confirmation.
(3) For paragraph 1017F(9)(c) of the Act, section 1017F of the Act is
modified in relation to its application to a transaction of a financial
product as set out in Part 15 of Schedule 10A.
7.9.63A Persons who must confirm transactions
(1) For paragraph 1017F(9)(a) of the Act, this regulation modifies
subsection 1017F(2) of the Act to change the person required to
provide confirmation of a transaction.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Confirmation of transactions Division 6
Regulation 7.9.63A
Corporations Regulations 2001 281
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) A transaction:
(a) that is not the issue of a financial product (other than a
derivative that is not a warrant); and
(b) in which a financial services licensee deals in the financial
product on behalf of the holder of the financial product; and
(c) by which the holder acquires or disposes of all or part of the
financial product;
must be confirmed by the financial services licensee.
(3) A transaction:
(a) to which subregulation (2) does not apply; and
(b) by which a financial product is issued to a holder;
must be confirmed by the issuer of the financial product.
(4) A transaction:
(a) that is a sale pursuant to an offer to which section 1012C of
the Act applies; and
(b) to which subregulation (2) does not apply; and
(c) by which a holder acquires a financial product;
must be confirmed by the seller of the financial product.
(5) A transaction:
(a) to which subregulation (2) does not apply; and
(b) by which the holder of the financial product disposes of all or
part of the financial product to the issuer of the financial
product;
must be confirmed by the issuer of the financial product.
(6) A transaction that:
(a) relates to a financial product held by a particular holder; and
(b) occurs while that holder holds the financial product; and
(c) is not the acquisition or a disposal of all or part of the
financial product;
must be confirmed by the issuer of the financial product.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 6 Confirmation of transactions
Regulation 7.9.63B
282 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.63B Content of confirmation of transactions—general
(1) For paragraph 1017F(8)(d) of the Act, this regulation applies in
relation to a transaction that is the acquisition or disposal of a
financial product.
(2) The confirmation of the transaction must identify:
(a) the financial product; and
(b) the number or amount of financial products that are the
subject of the transaction.
(3) If the transaction takes place in the ordinary course of business on
a licensed market, the confirmation of the transaction must also
identify each licensed market of which the responsible person is a
participant.
(4) If the responsible person is dealing on their own behalf with a
person who is not a financial services licensee, the confirmation of
the transaction must also state that the responsible person is dealing
in that way.
(5) Subregulation (4) does not apply if:
(a) the transaction is the issue of a product; and
(b) the responsible person is the product issuer.
(6) If:
(a) the financial product is able to be traded on a market in
which the responsible person is a participant; and
(b) the transaction did not take place in the ordinary course of
business on a licensed market in which the responsible
person is a participant;
the confirmation of the transaction must also include a statement to
that effect.
(7) If the transaction took place on-market, the confirmation of the
transaction must also include the name by which that market is
generally known.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Confirmation of transactions Division 6
Regulation 7.9.63C
Corporations Regulations 2001 283
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(8) If the transaction involves more than one financial product, the
confirmation of the transaction must also include the price per unit
of the financial products.
(9) For paragraph 1017F(9)(c) of the Act, paragraph 1017F(8)(a) of
the Act is modified in its application to a transaction involving a
basic deposit product (other than an acquisition or disposal of the
product) by omitting ‘and the holder’.
7.9.63C Confirmation of transaction—multiple transactions
(1) For paragraph 1017F(9)(b) of the Act, subregulation (2) applies in
relation to a transaction if:
(a) the responsible person is a participant of a licensed market;
and
(b) the participant has complied with all of the participant’s
obligations in relation to the transaction under the market
integrity rules and the operating rules of the licensed market;
and
(c) the transaction forms part of a series of transactions made to
complete an order placed with a financial services licensee;
and
(d) the holder of the product has given to the financial services
licensee, in relation to that order or all orders (or all orders
included in a class in which that order is included) placed
with the financial services licensee by the holder, prior
authorisation to give to the client a single confirmation in
respect of a series of transactions carried out under the order
instead of an individual confirmation in respect of each
transaction in the series.
(2) Subsection 1017F(5) of the Act is taken to be satisfied if, in respect
of the transaction:
(a) the financial services licensee gives to the holder a single
confirmation in respect of the series of transactions in which
the transaction is included that:
(i) is in accordance with the authorisation; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 6 Confirmation of transactions
Regulation 7.9.63C
284 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) subject to subregulation (4), complies with the Act; and
(b) the confirmation is given:
(i) as soon as practicable; or
(ii) otherwise as permitted by the market integrity rules or
the operating rules of that licensed market.
(3) For paragraph 1017F(9)(c) of the Act, subregulation (4) applies in
relation to a transaction if:
(a) the responsible person is a participant of a licensed market;
and
(b) the participant has complied with all of the participant’s
obligations in relation to the transaction under the market
integrity rules and the operating rules of the licensed market;
and
(c) the transaction forms part of a series of transactions made to
complete an order placed with a financial services licensee;
and
(d) the holder of the product has given to the financial services
licensee, in relation to that order or all orders (or all orders
included in a class in which that order is included) placed
with the financial services licensee by the holder, prior
authorisation to give to the client a single confirmation in
respect of the series of transactions that specifies the average
price per unit of financial products acquired or disposed of in
the series of transactions, instead of an individual
confirmation in respect of each transaction in the series, that
specifies the price per unit of the financial products acquired
or disposed of in the transaction to which each confirmation
relates.
(4) Subregulation 7.9.63B(7) is taken to be satisfied if, in respect of
the transaction:
(a) the financial services licensee gives the confirmation to the
holder in accordance with the authorisation; and
(b) unless otherwise provided by the market integrity rules or the
operating rules of the licensed market, the financial services
licensee, if requested to do so by the client, also gives to the
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Confirmation of transactions Division 6
Regulation 7.9.63D
Corporations Regulations 2001 285
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
holder a document that specifies the price per unit of the
financial products sold or bought in each transaction in the
series.
(5) For this regulation, an authorisation given by a person to a
financial services licensee:
(a) must be given orally, or in writing, by the person; and
(b) is effective until it is revoked, either orally or in writing, by
the person.
(6) If a person gives an oral authorisation to a financial services
licensee, or revokes an authorisation orally, the financial services
licensee must:
(a) make a written record of the authorisation or revocation; and
(b) send a copy of the written record to the person.
(7) In this regulation:
order means an instruction, or a series of instructions, to acquire or
dispose of financial products.
7.9.63D Confirmation of transaction—information about cooling-off
period
(1) For paragraph 1017F(8)(d) of the Act, this regulation applies in
relation to a transaction:
(a) that is the acquisition of a financial product to which:
(i) regulation 7.9.14, 7.9.66 or 7.9.68 applies; and
(ii) to which regulation 7.9.64 does not apply; or
(b) relating to an RSA product to which subsection 1012I(2) of
the Act applies, other than:
(i) an acquisition to which subsection 52(5) of the RSA Act
applies; or
(ii) a transaction in which the product holder disposes of the
holder’s interest in the product before the time that
confirmation of the acquisition is required under
section 1017F of the Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 6 Confirmation of transactions
Regulation 7.9.63E
286 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) The confirmation of the transaction must identify information
about any cooling-off regime that applies in respect of acquisitions
of the product (whether the regime is provided for by a law or
otherwise).
7.9.63E Confirmation of transaction—facility that provides written
confirmation
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
to all financial products and transactions as if subsection 1017F(5)
of the Act were modified by omitting:
‘An arrangement under which the holder may request or
require another person to provide a confirmation does not
count as a facility that satisfies paragraph (b).’
and inserting:
‘An arrangement under which the holder may request or
require another person (other than the responsible person or a
person acting on behalf of the responsible person) to provide
a confirmation does not count as a facility that satisfies
paragraph (b).’.
7.9.63F Confirmation of transaction—acquisition of financial
product
(1) For subparagraph 1017F(8)(c)(iii) of the Act, this regulation
applies in relation to the confirmation of a transaction that is the
acquisition of a financial product.
(2) The details of the transaction relating to the amount paid or
payable by the holder in relation to the transaction need include
only the amount the holder is required to pay to acquire the
product.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Confirmation of transactions Division 6
Regulation 7.9.63G
Corporations Regulations 2001 287
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.63G Confirmation of transaction—disposal of financial product
(1) For paragraph 1017F(8)(d) of the Act, this regulation applies in
relation to the confirmation of a transaction that is the disposal of a
financial product.
(2) The confirmation must include the amount paid or payable to the
holder as a result of the disposal.
7.9.63H Certain product issuers and regulated persons must meet
appropriate dispute resolution requirements—self
managed superannuation funds
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
in relation to a self managed superannuation fund as if
section 1017G of the Act were omitted.
7.9.63I Confirmation of transaction in electronic form
(1) For subparagraph 1017F(6)(a)(ii) of the Act, a confirmation of a
transaction that is to be given in electronic form must, as far as
practicable, be presented in a way that will allow the person to
whom it is given to keep a copy of it so that the person can have
ready access to it in the future.
(2) A confirmation of a transaction that is to be given in electronic
form must be presented in a way that clearly identifies the
information that is part of the confirmation.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 7 Cooling-off periods
Regulation 7.9.64
288 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 7—Cooling-off periods
7.9.64 Cooling-off periods not to apply
(1) For paragraph 1019A(2)(a) of the Act, the following subclasses of
financial products are excluded from paragraph 1019A(1)(a) of the
Act:
(a) a financial product offered or issued under a distribution
reinvestment plan or switching facility;
(b) a financial product the acquisition of which is an additional
contribution made under an existing agreement or contract;
(c) a financial product issued as consideration for an offer made
under a takeover bid under Chapter 6 of the Act;
(d) an interim contract of insurance within the meaning of
subsection 11(2) of the Insurance Contracts Act 1984;
(e) a managed investment product that is not liquid in
accordance with section 601KA of the Act at the time the
managed investment product is issued;
(f) a superannuation product that is issued in relation to a
superannuation entity that is not a public offer
superannuation entity, other than;
(i) a superannuation product taken to be issued because of
regulation 7.1.04E; or
(ii) an annuity or pension taken to be issued because of
subregulation 7.9.02(4);
(fa) a superannuation product that is issued in relation to:
(i) a public offer superannuation entity mentioned in
paragraph 7.6.01(1)(b), (c) or (d); or
(ii) a public offer superannuation entity that is a successor
fund in relation to the transfer of benefits to that fund;
or
(iii) a public offer superannuation entity that is an eligible
rollover fund and in relation to which the
superannuation product is issued pursuant to Part 24 of
the SIS Act or Part 9 of the RSA Act;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Cooling-off periods Division 7
Regulation 7.9.64A
Corporations Regulations 2001 289
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(fb) a superannuation product that is a pension issued by a
superannuation fund the rules of which do not allow a
member to receive accumulated benefits in a form other than
a pension from that fund;
(g) a risk insurance product that is:
(i) of less than 12 months duration; and
(ii) a renewal of an existing product on the terms and
conditions to which the product is currently subject;
(h) a managed investment product in relation to which
subsection 1016D(1) of the Act applies;
(i) a managed investment product:
(i) to which Chapter 6D of the old Corporations Act
applied; and
(ii) that was listed before the FSR commencement.
(2) For paragraph 1020G(1)(a) of the Act, a reference in
paragraph 1019A(3)(a) of the Act to a client does not include a
person who holds a superannuation product as a standard
employer-sponsor member.
7.9.64A Notification of exercise of right of return—risk insurance
products
For paragraph 1019B(2)(c) of the Act, a right of return may be
exercised in relation to a risk insurance product by notifying the
responsible person in a way permitted by the responsible person.
7.9.65 Return of financial product: general
(1) For subsection 1019B(5A) of the Act, the right to return the risk
insurance product for an event that will start and end within the 14
day period mentioned in subsection 1019B(3) of the Act (and to
have money paid to acquire the risk insurance product repaid)
cannot be exercised at any time after the end of the period starting
when the risk insurance product was provided and ending on the
earlier of:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 7 Cooling-off periods
Regulation 7.9.65A
290 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the 14-day period mentioned in subsection 1019B(3) of the
Act; and
(b) the start of the event.
Example: Short-term travel insurance.
(1A) For subsection 1019B(5A) of the Act, if:
(a) a person acquires an interest in a managed investment
scheme; and
(b) the interest is a managed investment product; and
(c) the person acquires one or more other interests in that
managed investment scheme in the course of the same
transaction;
the person cannot exercise a right to return the product otherwise
than by returning all of those interests.
(2) In this regulation:
event means the commencement of the process in relation to which
the risk insurance product was entered into.
Examples:
1 For insurance on household goods during removal, the
commencement of loading a transportation vehicle is the event.
2 For travel insurance, the commencement of the journey is the event.
7.9.65A Return of financial product: first home saver accounts
(1) For subsection 1019B(2) of the Act, this regulation applies in
relation to an FHSA.
(2) If the FHSA holder has never held another FHSA, it is a
requirement of the exercise of the right to return the FHSA in
circumstances in which the moneys paid to acquire the FHSA are
subject to payment restrictions that:
(a) the FHSA holder must:
(i) notify the FHSA provider, in writing, that the FHSA
holder wishes to exercise the right to return the FHSA;
and
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Regulation 7.9.66
Corporations Regulations 2001 291
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) ask the FHSA provider to pay the entire balance of the
FHSA to the FHSA holder; and
(iii) give the FHSA provider a written declaration that the
FHSA holder has never previously held an FHSA; or
(b) the FHSA holder must:
(i) notify the FHSA provider, in writing, that the FHSA
holder wishes to exercise the right to return the FHSA;
and
(ii) no later than 1 month after notifying the FHSA
provider, ask the FHSA provider to pay the entire
balance of the FHSA to another FHSA nominated in the
request.
(3) If the FHSA holder has held another FHSA, it is a requirement of
the exercise of the right to return the FHSA in circumstances in
which the moneys paid to acquire the FHSA are subject to payment
restrictions that the FHSA holder must:
(a) notify the FHSA provider, in writing, that the FHSA holder
wishes to exercise the right to return the FHSA; and
(b) no later than 1 month after notifying the FHSA provider, ask
the FHSA provider to pay the entire balance of the FHSA to
another FHSA nominated in the request.
7.9.66 Return of financial product: superannuation and RSAs
(2) For subsection 1019B(2) of the Act, it is a requirement of the
exercise of the right to return a superannuation product or RSA
product that, if the money to be repaid includes:
(a) restricted non-preserved benefits within the meaning of the
SIS Regulations; or
(b) preserved benefits within the meaning of the SIS
Regulations;
the holder of the product must nominate a superannuation entity or
RSA into which the money representing restricted non-preserved
benefits or preserved benefits is to be repaid.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 7 Cooling-off periods
Regulation 7.9.67
292 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) The right of return is taken to have been exercised only on receipt
by the responsible person of the nomination.
(4) The holder must make the nomination not later than 1 month after
notifying the responsible person of the right to exercise the right of
return.
(5) The holder must notify the responsible person in writing or by
electronic means.
(6) For subsection 1019B(7) of the Act, if:
(a) a holder nominates a superannuation entity or RSA; and
(b) the superannuation entity or RSA does not accept the
nomination;
the responsible person may rollover or transfer the holder’s
benefits to an eligible rollover fund.
(7) For subsection 1019B(7) of the Act, if the right of return is
exercised, the responsible person must return the money as
directed.
7.9.67 Variation of amount to be repaid
(1) For subsection 1019B(8) of the Act, the amount to be repaid on an
exercise of the right to return a financial product is to be varied in
accordance with this regulation.
Investment-linked product
(2) If:
(a) the financial product is:
(i) an investment-linked product within the meaning of the
Insurance Contracts Act 1984; or
(ii) a managed investment product; or
(iii) a superannuation product (subject to the governing rules
of the issuer of the superannuation product relevant to
the redemption of superannuation interests); and
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Financial services and markets Chapter 7
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products Part 7.9
Cooling-off periods Division 7
Regulation 7.9.67
Corporations Regulations 2001 293
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) on the day on which the responsible person receives
notification from the product holder exercising the holder’s
right to return, the amount that would have been the price at
which the product was acquired (the allocation price) if the
product had been acquired on that day is less than the
allocation price on the day on which the product was
acquired;
the amount that would otherwise be repaid may be reduced by the
adjustment amount.
(3) If:
(a) the financial product is:
(i) an investment-linked product within the meaning given
by the Insurance Contracts Act 1984; or
(ii) a managed investment product; or
(iii) a superannuation product; and
(b) on the day on which the responsible person receives
notification from the product holder exercising the holder’s
right to return, the amount that would have been the price at
which the product was acquired (the allocation price) if the
product had been acquired on that day is greater than the
allocation price on the day on which the product was
acquired;
the amount that would otherwise be repaid is increased by the
adjustment amount.
(4) For subregulations (2) and (3), the adjustment amount is the
difference between:
(a) the price at which the product was acquired; and
(b) the price at which the product could be acquired on the day
on which the responsible person receives notification from
the product holder exercising the holder’s right to return.
(5) If the price referred to in paragraph (4)(b) is not determined under
the relevant contract or legal relationship on the day on which the
responsible person receives notification from the product holder
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 7 Cooling-off periods
Regulation 7.9.67
294 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
exercising the holder’s right to return, the amount to be repaid and
the adjustment amount is to be determined:
(a) on the basis of the most recent day on which a price was
calculated under the contract or legal relationship; or
(b) if there is no day of that kind, as soon as practicable after the
product issuer receives the notification.
Tax
(6) If:
(a) tax or duty of any kind has been paid, or is payable, by the
responsible person because of the issue of the financial
product; and
(b) either:
(i) if the tax or duty has been paid, the responsible person
is unable to obtain a refund of the tax or duty; or
(ii) if the tax or duty has not been paid, the tax or duty does
not cease to be payable as a result of the exercise of the
right to return the financial product;
the amount that would otherwise be repaid is reduced by the
amount of the tax or duty.
Certain financial products
(7) The amount that would otherwise be repaid in relation to the return
of a financial product (other than an RSA product) may be reduced
to account for reasonable administrative and transaction costs
(other than the payment of commissions or similar benefits)
incurred by the responsible person that:
(a) are reasonably related to the acquisition of the financial
product and the subsequent termination of the contract or
legal relationship; and
(b) do not exceed the true cost of an arms’ length transaction.
Financial product issued for specific period
(8) If:
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Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Cooling-off periods Division 7
Regulation 7.9.68
Corporations Regulations 2001 295
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the financial product is:
(i) a risk insurance product; or
(ii) that part of a financial product that is a risk insurance
product; and
(b) either:
(i) the financial product has been issued for a specific
period; or
(ii) the premium for the financial product has been paid in
relation to cover for a specific period; and
(c) a proportion of that period has already passed when the right
to return the risk insurance product is exercised;
the amount that would otherwise be repaid may be reduced by a
proportion equal to the proportion of the period that has passed.
General
(9) If the financial product is subject to a distribution to which
subregulation 7.9.70(2) applies, the amount that would otherwise
be repaid may be reduced by the amount of that distribution.
7.9.68 Modification of section 1019B of the Act: client includes
standard employer-sponsor
(1) For paragraph 1020G(1)(c) of the Act, subsection 1019A(1) and
paragraph 1019A(3)(a) of the Act are modified so that a reference
in those provisions to a client includes a standard
employer-sponsor in respect of the issue of a superannuation
product to an employee of the standard employer-sponsor as a
standard employer-sponsored member in accordance with
subparagraph 1016A(2)(b)(iii) of the Act.
(2) For paragraph 1020G(1)(c) of the Act, subsection 1019B(1) of the
Act is modified in its application to the issue of a superannuation
product mentioned in subregulation (1) as if a reference in
subsection 1019B(1) to money paid to acquire a financial product
were a reference to all monies paid in relation to the
superannuation product.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 7 Cooling-off periods
Regulation 7.9.68
296 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) For subsection 1019B(2) of the Act, it is a requirement of the
exercise of the right to return a superannuation product mentioned
in subregulation (1) that, if the monies to be repaid include
employer contributions (whether or not they are mandated
employer contributions), the standard employer-sponsor must
nominate a superannuation fund, approved deposit fund or RSA
into which the employer contributions are to be repaid.
(4) The right of return is taken to have been exercised only on receipt
by the responsible person of the nomination.
(5) The standard employer-sponsor must make the nomination not
later than 1 month after notifying the responsible person of the
right to exercise the right of return.
(6) The standard employer-sponsor must notify the responsible person
in writing or by electronic means.
(7) For subsection 1019B(7) of the Act, if the right of return is
exercised by a standard employer-sponsor under this regulation,
the responsible person must return the money as directed.
(8) For subsection 1019B(7) of the Act, if the right of return is
exercised by a standard employer-sponsor under this regulation,
and if the monies to be repaid include monies paid in relation to the
superannuation product by the standard employer-sponsored
member (including monies rolled over or transferred from another
superannuation entity or RSA) (the relevant monies) the relevant
monies are to be paid by the responsible person:
(a) in respect of benefits defined under the SIS Regulations as a
restricted non-preserved benefits or preserved benefits
(restricted monies)—to a superannuation entity or RSA as
directed by the standard employer-sponsored member; or
(b) in respect of any other relevant monies paid by the standard
employer-sponsored member—as directed by the standard
employer-sponsored member.
(9) For subsection 1019B(7) of the Act, if:
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Cooling-off periods Division 7
Regulation 7.9.69
Corporations Regulations 2001 297
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) a financial product mentioned in this regulation is subject to
the nomination of a further superannuation entity or RSA;
and
(b) the application in relation to the issue of a financial product
is not accepted by the nominated superannuation entity or
RSA;
the responsible person may rollover or transfer the holder’s
benefits to an eligible rollover fund.
7.9.69 Modification of provisions of Division 5 of Part 7.9 of the Act:
terms of contract
(1) For paragraph 1020G(2)(a) of the Act, this regulation applies in
relation to the following financial products:
(a) an investment-linked product within the meaning of the
Insurance Contracts Act 1984;
(b) a managed investment product;
(c) a superannuation product.
(2) Division 5 of Part 7.9 of the Act is modified to the extent necessary
to provide that a contract or legal relationship governing the issue
and redemption of the financial product is taken to include a
provision that:
(a) a product holder may have the right to return a financial
product under the Act; and
(b) the product issuer does not contravene any terms of the
contract or legal relationship by complying with a request to
return a financial product made in accordance with the Act;
and
(c) the amount to be repaid following the exercise of the right to
return a financial product is the amount calculated in
accordance with the Act.
(3) Division 5 of Part 7.9 of the Act, and the regulations made for, or
relating to, provisions of that Division, are also modified to the
extent necessary to give effect to the modification set out in
subregulation (2).
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 7 Cooling-off periods
Regulation 7.9.70
298 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.70 Modification of provisions of Division 5 of Part 7.9 of the Act:
distributions
(1) For paragraph 1020G(2)(a) of the Act, this regulation applies in
relation to the holder of:
(a) an investment-linked product within the meaning of the
Insurance Contracts Act 1984; or
(b) a managed investment product; or
(c) a superannuation product.
(2) A reference in paragraph 1019B(5)(a) of the Act to a right or
power does not include the making of a distribution to the holder.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Other requirements Division 8
Regulation 7.9.71
Corporations Regulations 2001 299
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 8—Other requirements
7.9.71 Modification of section 1017D of the Act: use of more than 1
document
For paragraph 1020G(1)(c) of the Act, section 1017D of the Act is
modified:
(a) so that a reference in those sections to a periodic statement
includes 2 or more documents that include all of the
information required by those sections; and
(b) as if subsections 1013L(1), (2), (3), (5) and (7) of the Act
were included in that section, and referred to a periodic
statement instead of a Product Disclosure Statement.
7.9.71A Periodic statements—exemption for passbook accounts
For paragraph 1020G(1)(b) of the Act, a basic deposit product (an
account) for which the holder of the product is provided with, and
keeps, a document commonly referred to as a ‘passbook’ is exempt
from section 1017D of the Act if, under the terms of the operation
of the account:
(a) the client has a right to a reasonable opportunity to present
the passbook to the issuer; and
(b) the issuer enters particulars of each transaction involving the
account including the amount of the transaction and the
current balance of the account; and
(c) there is no fee associated with the passbook or the entry of
particulars into the passbook.
7.9.72 Modification of section 1017D of the Act: information already
given
For paragraph 1020G(1)(c) of the Act section 1017D of the Act is
modified so that if:
(a) a financial product is a superannuation product or an RSA
product; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 8 Other requirements
Regulation 7.9.73
300 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the issuer has provided information in accordance with
Subdivisions 5.2 and 5.3; and
(c) that information has also been provided in accordance with
subsection 1017D(5A) of the Act;
paragraphs 1017D(5)(a), (b), (d) and (e) are omitted.
7.9.73 Reporting periods: general
For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is
modified in its application in relation to financial products as set
out in Part 16 of Schedule 10A.
7.9.74 Form of application
(1) For paragraph (c) of the definition of eligible application in
subsection 1016A(1) of the Act, an application form for a financial
product, for use by a client, that is attached to, accompanying or
derived from a Product Disclosure Statement must require the
following information:
(a) the applicant’s name;
(b) the applicant’s date of birth;
(c) the applicant’s address.
(2) An application form for a financial product, for use by an employer
that is applying as a prospective standard employer-sponsor, that is
attached to, accompanying or derived from a Product Disclosure
Statement must require the employer’s name and address.
7.9.74A Periodic statements—requirement to state information as
amounts in dollars
(1) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies
as if subsection 1017D(5A) were modified to read as follows:
‘(5A) Unless in accordance with the regulations and a
determination by ASIC:
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Other requirements Division 8
Regulation 7.9.74A
Corporations Regulations 2001 301
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) information to be disclosed in accordance with
paragraphs (5)(a), (b), (c), (d) and (e) must be stated as
amounts in dollars; and
(b) any other information in relation to amounts paid by the
holder of the financial product during the period must
be stated as amounts in dollars.’.
(2) For paragraph 1020G(1)(a) of the Act, the issuer of a financial
product does not have to provide the information mentioned in
subsection 1017D(5A) of the Act in the form required by that
subsection, in a periodic statement prepared before 1 January 2005.
(3) For subsection 1017D(5A) of the Act, as modified in accordance
with subregulation (1), if ASIC determines that, for a compelling
reason based on the nature of a financial product or service, or the
nature of the information, to state information to be disclosed in
accordance with paragraphs 1017D(5)(a), (b), (c), (d) and (e) of the
Act as an amount in dollars:
(a) would impose an unreasonable burden on a product issuer, or
a class of product issuers; or
(b) would impose an unreasonable burden on a product issuer, or
a class of product issuers, within a period specified in the
determination; or
(c) would not be in the interests of a client, or a class of clients;
the information may be set out as a description of the amount as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(4) For subsection 1017D(5A) of the Act, as modified in accordance
with subregulation (1), if ASIC determines that, for a compelling
reason, based on the nature of a financial product or service, or the
nature of the information, to state information to be disclosed in
accordance with paragraphs 1017D(5)(a), (b), (c), (d) and (e) of the
Act as an amount in dollars, or to describe the amount as a
percentage:
(a) would impose an unreasonable burden on a product issuer, or
a class of product issuers; or
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 8 Other requirements
Regulation 7.9.74B
302 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) would impose an unreasonable burden on a product issuer, or
a class of product issuers, within a period specified in the
determination; or
(c) would not be in the interests of a client, or a class of clients;
the information may be set out as a description of the method of
calculating the charge or benefit (including worked dollar
examples, unless that is inappropriate).
(5) A determination under subregulation (3) or (4) must be:
(a) in writing; and
(b) published in the Gazette.
7.9.74B Periodic statements—additional details for First Home
Saver Accounts
(1) For paragraph 1017D(5)(g) of the Act, a periodic statement for an
FHSA product must include the following words:
The First Home Saver Account is an Australian Government
initiative to help Australians save for their first home.
(2) For paragraph 1017D(5)(g) of the Act, if the holder of an FHSA
product has not acquired a qualifying interest in a dwelling at the
time when a periodic statement is to be provided in relation to the
FHSA product, the periodic statement must include:
(a) the number of financial years after the end of the reporting
period for the statement during which the holder of the
product must make personal FHSA contributions as required
by the First Home Saver Accounts Act 2008 before payment
may be made out of the FHSA product under section 32 of
that Act; or
(b) if the number of financial years is 0—a statement that the
holder may, subject to the First Home Saver Accounts Act
2008, apply for payment out of the FHSA product to acquire
a qualifying interest in a dwelling under that Act.
(3) For paragraph 1017D(5)(g) of the Act, if the holder of an FHSA
product has acquired a qualifying interest in a dwelling at the time
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Other requirements Division 8
Regulation 7.9.75
Corporations Regulations 2001 303
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
when a periodic statement is to be provided in relation to the FHSA
product, the periodic statement must include the number of
financial years after the end of the reporting period during which
the holder of the FHSA product will be taken to be making
personal FHSA contributions under the First Home Saver Accounts
Act 2008.
(4) In this regulation:
personal FHSA contribution has the meaning given in section 11
of the First Home Saver Accounts Act 2008.
qualifying interest, in a dwelling, has the meaning given by
section 12 of the First Home Saver Accounts Act 2008.
7.9.75 Content of periodic statements: costs of transactions
(1) For paragraph 1017D(5)(g) of the Act, the prescribed details in
relation to a financial product include:
(a) the amounts paid by the holder of the financial product in
respect of the financial product during the period; and
(b) if the amounts paid in respect of the financial product, and
the amounts paid in respect of other financial products, are
paid into a common fund, and amounts are deducted from the
common fund by way of expenses, fees and charges:
(i) a proportion of the amount deducted that is actually or
notionally attributable to the product holder’s interest;
and
(ii) if applicable—a statement informing the product holder
that the notional proportion of the amount may not give
an accurate estimate of the effect of the deduction on the
product holder’s interest; and
(c) a statement informing the product holder:
(i) that there is a dispute resolution mechanism that covers
complaints by holders of the product; and
(ii) of the means by which a product holder is able to gain
access to that mechanism; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 8 Other requirements
Regulation 7.9.75
304 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(d) a statement that further information in relation to the
financial product is available on request, and the means by
which the product holder can gain access to that information;
and
(e) in relation to a superannuation product (other than a
self-managed superannuation fund) or a managed investment
product—the details set out in Part 3 of Schedule 10.
(1A) However, for a periodic statement mentioned in an item of the
table that is issued for the financial product mentioned in the item,
and issued at a time described in the item, the prescribed details set
out in paragraph (1)(b) are not required to be included if the
statement includes, or is accompanied by, statements to the effect
that:
(a) amounts for fees, expenses or charges have been deducted
from a common fund to which the product relates in relation
to the reporting period; and
(b) those deductions are borne indirectly by the holders of the
product, and may affect the return to the holders; and
(c) further information about the deductions can be obtained by
contacting the issuer of the product.
Item Kind of statement Product Statement issued
1 Periodic statement
other than exit
statement
Superannuation product to which
Division 4C of this Part applies
in relation to a
reporting period
commencing before
1 July 2005
2 Exit statement Superannuation product to which
Division 4C of this Part applies
before 1 July 2006
3 Periodic statement
other than exit
statement
Financial product other than
superannuation product to which
Division 4C of this Part applies
in relation to a
reporting period
commencing before
1 July 2006
4 Exit statement Financial product other than
superannuation product to which
Division 4C of this Part applies
before 1 July 2007
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Other requirements Division 8
Regulation 7.9.75
Corporations Regulations 2001 305
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) For paragraph (1)(a), an amount has been paid in respect of a
financial product if:
(a) the product holder has paid an amount in respect of the
product; or
(b) an amount has been deducted from:
(i) a payment made by the product holder; or
(ii) a payment made to the product holder; or
(c) the product holder has paid an amount or an amount has been
deducted or debited as a fee, expense or charge in relation to
the financial product; or
(d) an amount is held on the product holder’s behalf under the
financial product (excluding any amounts referred to in
paragraph (1)(b) deducted from a common fund).
(3) For paragraph 1017D(5A)(a) of the Act, subregulations (4) and (5)
apply in relation to a financial product that has:
(a) an opening or closing balance mentioned in
paragraph 1017D(5)(a) of the Act; or
(b) the termination value mentioned in paragraph 1017D(5)(b) of
the Act; or
(c) an increase in contributions mentioned in
paragraph 1017D(5)(d) of the Act; or
(d) a return on investment mentioned in paragraph 1017D(5)(e)
of the Act.
(4) If ASIC determines that, for a compelling reason, it is not possible
to state the amount in dollars, the amount may be described as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(5) If ASIC determines that, for a compelling reason, it is not possible
to state the amount in dollars, or to describe the amount as a
percentage, the periodic statement must include:
(a) a statement informing the holder of the product that the
amount is applicable; and
(b) details of the means by which a product holder is able to gain
access to information relating to the amount.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 8 Other requirements
Regulation 7.9.75A
306 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(6) A determination under subregulation (4) or (5) must be:
(a) in writing; and
(b) published in the Gazette.
7.9.75A Ways of giving information
(1) For paragraph 1017B(3)(c) of the Act, the following are ways in
which a responsible person may notify a holder:
(a) notifying the holder in any way agreed to by the holder;
(b) notifying the holder’s agent in any way agreed to by the
agent.
(2) For paragraph 1017D(6)(c) of the Act, the following are ways of
giving a periodic statement to a holder:
(a) making the periodic statement available to the holder in any
way agreed to by the holder;
(b) making the periodic statement available to the holder’s agent
in any way agreed to by the agent.
(3) For paragraph 1017DA(2)(c) of the Act, the following are ways in
which information mentioned in subsection 1017DA(1) of the Act
may be provided to a person:
(a) in writing;
(b) electronically;
(c) providing the information to the person in any way agreed to
by the person;
(d) making the information available to the person’s agent in any
way agreed to by the agent.
(4) If a provision of the Act or these Regulations imposes additional
requirements in relation to a matter in subregulation (1), (2) or (3),
the ways of notifying a holder, giving a periodic statement and
providing information are subject to the requirements.
Note: Regulation 7.9.75B is an example of an additional requirement.
(5) For this regulation, a notification, a periodic statement or
information may be given or sent to a person’s agent only if the
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Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Other requirements Division 8
Regulation 7.9.75B
Corporations Regulations 2001 307
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
agent is not acting as the person’s agent in one of the capacities
mentioned in subsection 1015C(3) of the Act.
7.9.75B Information in electronic form
(1) For:
(a) paragraph 1017B(3)(b) of the Act; and
(b) paragraph 1017D(6)(b) of the Act; and
(c) paragraph 1017DA(2)(c) of the Act;
a notification, statement or information that is to be given in
electronic form must, as far as practicable, be presented in a way
that will allow the person to whom it is given to keep a copy of it
so that the person can have ready access to it in the future.
(2) A notification or statement that is to be given in electronic form
must be presented in a way that clearly identifies the information
that is part of the notification or statement.
7.9.75BA Fund information made available on a website
(1) For paragraph 1017DA(1)(a) of the Act, the trustee of a regulated
superannuation fund (other than a self managed superannuation
fund) may provide fund information for the fund, mentioned in
Subdivision 5.6 of this Part, to a holder by making it available on a
website that is maintained by or on behalf of the trustee.
(2) The trustee must ensure that the fund information is readily
accessible from the website.
(3) For the first financial year or reporting period in which the trustee
makes the fund information available on the website under this
regulation, the trustee must:
(a) notify each holder that the fund information is available on
the website; and
(b) explain how to access the website; and
(c) notify the holder that the holder may elect to have a hard
copy, or electronic copy if it is available, of the fund
information sent to him or her free of charge.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 8 Other requirements
Regulation 7.9.75C
308 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) The information in subregulation (3) must be provided to the
holder in one document.
(5) If a holder elects to have a hard copy or electronic copy of the fund
information sent to him or her, the trustee must, for each
subsequent financial year or reporting period, send the fund
information for the financial year or reporting period to the holder,
in that form, until the holder notifies the trustee that a hard copy is
no longer required.
(6) If a holder does not elect to have a hard copy or electronic copy
sent to him or her, the trustee must comply with paragraphs (3)(a)
and (b) each year.
(7) The notification mentioned in subregulations (3) and (6) may be
included in other information or materials sent to the holder.
7.9.75C Periodic statements—disclosure of amounts
(1) For paragraph 1017D(5A)(b) of the Act, this regulation applies to a
periodic statement prepared on or after 1 January 2005 in relation
to an amount mentioned in paragraph 7.9.75(1)(a) or (b) of these
Regulations.
(2) If ASIC determines that, for a compelling reason, it is not possible
to state the amount in dollars the amount may be described as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(3) If ASIC determines that, for a compelling reason, it is not possible
to state the amount in dollars, or to describe the amount as a
percentage, the periodic statement must include:
(a) a statement informing the holder of the product that the
amount is applicable; and
(b) details of the means by which a product holder is able to gain
access to information relating to the amount.
(4) A determination under subregulation (2) or (3) must be:
(a) in writing; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Other requirements Division 8
Regulation 7.9.75D
Corporations Regulations 2001 309
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) published in the Gazette.
7.9.75D Periodic statements—disclosure of amounts
(1) For paragraph 1017D(5A)(b) of the Act, this regulation applies to a
periodic statement prepared on or after 1 January 2005 in relation
to an amount mentioned in paragraph 7.9.75(1)(a) or (b) of these
Regulations.
(2) If ASIC determines that, for a compelling reason based on the
nature of a financial product or service, or the nature of the
information, to state the amount of the deduction in dollars:
(a) would impose an unreasonable burden on a product issuer, or
a class of product issuers; or
(b) would impose an unreasonable burden on a product issuer, or
a class of product issuers, within a period specified in the
determination; or
(c) would not be in the interests of a product holder, or a class of
product holders;
the information may be set out as a description of the amount as a
percentage of a specified matter (including worked dollar
examples, unless that is inappropriate).
(3) If ASIC determines that, for a compelling reason, based on the
nature of a financial product or service, or the nature of the
information, to state the amount of a deduction in dollars, or to
describe the amount as a percentage:
(a) would impose an unreasonable burden on a product issuer, or
a class of product issuers; or
(b) would impose an unreasonable burden on a product issuer, or
a class of product issuers, within a period specified in the
determination; or
(c) would not be in the interests of a product holder, or a class of
product holders;
the periodic statement must include the information in
subregulation (4).
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 8 Other requirements
Regulation 7.9.76
310 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) If subregulation (3) applies, the periodic statement must include:
(a) a statement informing the product holder that the amount is
applicable; and
(b) details of the means by which a product holder is able to gain
access to information relating to the amount.
(5) A determination under subregulation (2) or (3) must be:
(a) in writing; and
(b) published in the Gazette.
7.9.76 Consents to certain statements
(1) For subsection 1013K(2) of the Act, the period for which a person
must keep a consent or a copy of a consent is 7 years from the date
of the consent.
(2) The copy of the consent may be kept:
(a) in its physical form; or
(b) in an electronic form that is capable of being reproduced in
physical form.
7.9.77 Alternative dispute resolution requirements—product issuer
that is not a financial services licensee
(1) For subparagraph 1017G(2)(a)(i) of the Act, ASIC must take the
following matters into account when considering whether to make
or approve standards or requirements relating to internal dispute
resolution:
(a) Australian Standard AS ISO 10002-2006 Customer
satisfaction—Guidelines for complaints handling in
organizations (ISO 10002:2004 MOD) published by SAI
Global Limited on 5 April 2006;
(b) any other matter ASIC considers relevant.
(2) ASIC may:
(a) vary or revoke a standard or requirement that it has made in
relation to an internal dispute resolution procedure; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Other requirements Division 8
Regulation 7.9.78
Corporations Regulations 2001 311
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) vary or revoke the operation of a standard or requirement that
it has approved in its application to an internal dispute
resolution procedure.
(3) For subparagraph 1017G(2)(b)(i) of the Act, ASIC must take the
following matters into account when considering whether to
approve an external dispute resolution scheme:
(a) the accessibility of the dispute resolution scheme;
(b) the independence of the dispute resolution scheme;
(c) the fairness of the dispute resolution scheme;
(d) the accountability of the dispute resolution scheme;
(e) the efficiency of the dispute resolution scheme;
(f) the effectiveness of the dispute resolution scheme;
(g) any other matter ASIC considers relevant.
(4) ASIC may:
(a) specify a period for which an approval of an external dispute
resolution scheme is in force; and
(b) make an approval of an external dispute resolution scheme
subject to conditions specified in the approval, including
conditions relating to the conduct of an independent review
of the operation of the scheme; and
(c) vary or revoke:
(i) an approval of an external dispute resolution scheme; or
(ii) the specification of a period for which an approval is in
force; or
(iii) a condition to which an approval of an external dispute
resolution scheme is subject.
7.9.78 Additional statement: trustee required to provide benefits
(1) For paragraph 1017D(5)(g) of the Act, the prescribed details in
relation to a superannuation product for which there is in force a
notice under subregulation 6.17A(4) of the SIS Regulations, are:
(a) the person, persons or class, or classes, of persons mentioned
in the notice; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 8 Other requirements
Regulation 7.9.80B
312 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the fact that, in accordance with the notice, the trustee will
pay a benefit in respect of the member, on or after the death
of the member, to the person, persons or class, or classes, of
persons mentioned in the notice if:
(i) the person, or each person, mentioned in the notice is
the legal personal representative or a dependant of the
member; and
(ii) the proportion of the benefit that will be paid to that
person, or to each of those persons, is certain or readily
ascertainable from the notice or a statement under
regulation 6.17B of the SIS Regulations; and
(iii) the notice is in effect; and
(c) the statement of the member about:
(i) the proportion of the benefit that will be paid to the
person, or to each person, mentioned in the notice; or
(ii) how that proportion is to be determined; and
(d) the fact that the member may confirm, amend or revoke the
notice in accordance with subregulation 6.17A(5) of the SIS
Regulations; and
(e) the date when the notice ceases to have effect under
paragraph 6.17A(7)(a) or (b) of the SIS Regulations.
(2) The periodic statement must also include information that the
member may use to confirm, amend or revoke the notice.
(3) In this regulation, a reference to a notice includes a reference to the
notice as confirmed, or amended, under subregulation 6.17A(5) of
the SIS Regulations.
7.9.80B Short selling of certain warrants
For paragraph 1020B(1)(d) of the Act, a financial product that is
transferable and is:
(a) a derivative under section 761D of the Act; or
(b) a financial product that would, apart from the effect of
paragraph 761D(3)(c) of the Act, be a derivative for
section 761D of the Act and is excluded from that paragraph
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Other requirements Division 8
Regulation 7.9.80B
Corporations Regulations 2001 313
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
only because it is a security under paragraph (c) of the
definition of security in section 761A of the Act; or
(c) a legal or equitable right or interest in an interest in a
managed investment scheme of the kind mentioned in
paragraph 764A(1)(ba) of the Act;
is prescribed.
Note: Paragraph 764A(1)(ba) of the Act refers to a managed investment
scheme that is not a registered scheme, other than a scheme (whether
or not operated in this jurisdiction) in relation to which none of
paragraphs 601ED(1)(a), (b) and (c) of the Act are satisfied.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 9 Additional requirements for transfer of lost members and lost RSA holders
Regulation 7.9.81
314 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 9—Additional requirements for transfer of lost
members and lost RSA holders
7.9.81 Lost members
(1) For paragraph 1020G(1)(c) of the Act, this regulation applies in
relation to a restricted issue of a relevant financial product if:
(a) the issue is mentioned in paragraph 1016A(2)(c) of the Act;
and
(b) the recipient is a lost member.
(2) Part 7.9 of the Act applies in relation to the restricted issue as if
paragraph 1016A(2)(c) of the Act included an obligation on the
trustee of the fund that is applying for the issue on behalf of the
recipient to give to the trustee that is to issue the financial product:
(a) a statement that the recipient is a lost member; and
(b) if the recipient has specifically asked the trustee making the
application not to disclose information of a specified kind—a
statement to that effect; and
(c) all information in the possession of the trustee making the
application that could reasonably help the other trustee to
locate or identify the recipient, other than information of a
kind that the recipient has specifically asked the trustee not to
disclose.
7.9.82 Lost RSA holders
(1) For paragraph 1020G(1)(c) of the Act, this regulation applies in
relation to a restricted issue of a relevant financial product if:
(a) the issue is mentioned in paragraph 1016A(2)(d) of the Act;
and
(b) the recipient is a lost RSA holder.
(2) Part 7.9 of the Act applies in relation to the restricted issue as if
paragraph 1016A(2)(d) of the Act included an obligation on the
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Additional requirements for transfer of lost members and lost RSA holders Division 9
Regulation 7.9.82
Corporations Regulations 2001 315
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
RSA provider that is applying for the issue on behalf of the
recipient to give to the trustee that is to issue the financial product:
(a) a statement that the recipient is a lost RSA holder; and
(b) if the recipient has specifically asked the RSA holder not to
disclose information of a specified kind—a statement to that
effect; and
(c) all information in the possession of the RSA holder that
could reasonably help the trustee to locate or identify the
recipient, other than information of a kind that the recipient
has specifically asked the RSA holder not to disclose.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 11 Superannuation to which arrangements apply under the Family Law Act
1975
Regulation 7.9.84
316 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 11—Superannuation to which arrangements apply
under the Family Law Act 1975
7.9.84 Definitions for Division 11
In this Division:
adjusted base amount, in relation to a non-member spouse on a
day, means the adjusted base amount applicable to the non-member
spouse on that day worked out under regulation 47 of the Family
Law (Superannuation) Regulations 2001.
base amount, in relation to a non-member spouse means the
amount mentioned in regulation 45 of the Family Law
(Superannuation) Regulations 2001.
base amount payment split, in relation to a superannuation
interest, means a payment split under which a base amount is
allocated to the non-member spouse in relation to the
superannuation interest under Part VIIIB of the Family Law Act
1975.
flag lifting agreement means a flag lifting agreement under
Part VIIIB of the Family Law Act 1975.
member spouse, in relation to a superannuation interest that is
subject to a payment split, means the person who is the member
spouse in relation to the interest under Part VIIIB of the Family
Law Act 1975.
non-member spouse, in relation to a superannuation interest that is
subject to a payment split, means the person who is the
non-member spouse in relation to the interest under Part VIIIB of
the Family Law Act 1975.
payment split means a payment split under Part VIIIB of the
Family Law Act 1975.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Superannuation to which arrangements apply under the Family Law Act 1975 Division
11
Regulation 7.9.85
Corporations Regulations 2001 317
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
payment split notice means a notice given by a product issuer
under:
(a) regulation 7A.03 of the SIS Regulations; or
(b) regulation 4A.03 of the RSA Regulations.
percentage-only interest has the meaning given by Part VIIIB of
the Family Law Act 1975.
percentage payment split, in relation to a superannuation interest,
means a payment split under a superannuation agreement, flag
lifting agreement or splitting order that specifies a percentage that
is to apply to all splittable payments in respect of the
superannuation interest.
splitting order means a splitting order under Part VIIIB of the
Family Law Act 1975.
superannuation agreement means a superannuation agreement
under Part VIIIB of the Family Law Act 1975.
superannuation interest means a superannuation interest to which
Part VIIIB of the Family Law Act 1975 applies.
7.9.85 Application of Division 11
This Division applies in relation to a superannuation interest.
7.9.86 Acquisition of financial product
For paragraph 761E(7)(a) of the Act, if:
(a) a person is a non-member spouse; and
(b) an entitlement to a benefit in relation to a superannuation
interest under a payment split is first issued, granted or
otherwise made available to that person;
the person is taken to have been issued with a superannuation
product or an RSA product as appropriate.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 11 Superannuation to which arrangements apply under the Family Law Act
1975
Regulation 7.9.87
318 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.87 Modification of Act: Product Disclosure Statement in relation
to superannuation interest under Family Law Act
(1) Subject to subregulation (4), for paragraph 1020G(1)(c) of the Act,
paragraph 1012F(b) of the Act is modified in its application in
relation to:
(a) a superannuation interest; and
(b) the non-member spouse who acquires the superannuation
interest;
in accordance with subregulation (2).
(2) Paragraph 1012F(b) is taken to require a regulated person to give
the non-member spouse a Product Disclosure Statement when the
regulated person gives a payment split notice to the non-member
spouse.
(3) If paragraph 1012F(b), as modified in accordance with
subregulation (2), applies in relation to a superannuation interest,
regulation 7.9.04 does not apply in relation to the interest and the
non-member spouse.
(4) For paragraph 1020G(1)(a) of the Act, if the governing rules of a
superannuation entity do not provide for a non-member spouse to
become a member of a superannuation fund in relation to the
superannuation entity, section 1012B is modified by adding, after
subsection 1012B(1):
‘(1A) This section does not apply in relation to:
(a) a superannuation interest; and
(b) the non-member spouse who acquires the
superannuation interest;
if the governing rules of a superannuation entity do not
provide for a non-member spouse to become a member of a
superannuation fund in relation to the superannuation
entity.’.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Superannuation to which arrangements apply under the Family Law Act 1975 Division
11
Regulation 7.9.88
Corporations Regulations 2001 319
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.88 Statement content in relation to superannuation interest
under Family Law Act: superannuation fund
(1) For subparagraphs 1017DA(1)(a)(ii) and (iii), and
paragraph 1017DA(1)(b), of the Act, a trustee of a superannuation
entity that is a product issuer must give to a non-member spouse in
relation to a superannuation product issued under a payment split a
statement providing the following information:
(a) the contact details for the product issuer;
(b) if the interest is not a percentage-only interest and the
payment split is a base amount payment split:
(i) the base amount allocated to the non-member spouse
under the relevant agreement, flag lifting agreement or
splitting order; and
(ii) the method by which the base amount will be adjusted
on an ongoing basis; and
(iii) whether the governing rules of the fund would allow the
non-member spouse to become a member of the
superannuation entity; and
(iv) information about the options available to the
non-member spouse in relation to the interest under
Part 7A of the SIS Regulations;
(c) if the interest is not a percentage-only interest and the
payment split is a percentage payment split:
(i) the percentage that is to apply to all splittable payments
in respect of the interest; and
(ii) whether the governing rules of the fund would allow the
non-member spouse to become a member of the
superannuation entity; and
(iii) information about the options available to the
non-member spouse in relation to the interest under
Part 7A of the SIS Regulations;
(d) if the interest is a percentage-only interest:
(i) the percentage specified in the relevant superannuation
agreement, flag lifting agreement or splitting order; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 11 Superannuation to which arrangements apply under the Family Law Act
1975
Regulation 7.9.89
320 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) if the payment is under a superannuation agreement or
flag lifting agreement, whether the percentage is to
apply for the purposes of subparagraph 90MJ(1)(b)(i) of
the Family Law Act 1975; and
(iii) if the payment split is under a splitting order, whether
the order is made under paragraph 90MT(1)(c) of the
Family law Act 1975;
(e) the circumstances in which the entitlement of the
non-member spouse will become payable;
(g) information about the dispute resolution system that covers
complaints by holders of the product and about how that
system may be accessed;
(h) details of any amounts payable by the non-member spouse in
respect of the payment split, and arrangements for the
payment of any such amounts.
(2) For paragraph 1017DA(2)(b) of the Act, the statement mentioned
in subregulation (1) is to be provided by a regulated person when
the regulated person gives a payment split notice to the
non-member spouse.
7.9.89 Statement content in relation to superannuation interest
under Family Law Act: RSA
(1) For subparagraphs 1017DA(1)(a)(ii) and (iii), and
paragraph 1017DA(1)(b), of the Act, an RSA provider that is a
product issuer must give to a non-member spouse in relation to an
RSA product issued under a payment split a statement providing
the following information:
(a) the contact details for the product issuer;
(b) if the payment split is a base amount payment split:
(i) the base amount allocated to the non-member spouse
under the relevant superannuation agreement, flag
lifting agreement or splitting order; and
(ii) the method by which the base amount will be adjusted
on an ongoing basis;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Superannuation to which arrangements apply under the Family Law Act 1975 Division
11
Regulation 7.9.90
Corporations Regulations 2001 321
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) if the payment split is a percentage payment split, the
percentage that is to apply to all splittable payments in
respect of the interest;
(d) the circumstances in which the entitlement of the
non-member spouse will become payable;
(e) the options available under Part 4A of the RSA Regulations
in relation to the non-member spouse’s entitlement in respect
of the interest;
(g) information about the dispute resolution system that covers
complaints by holders of the product and about how that
system may be accessed;
(h) details of any amounts payable by the non-member spouse in
respect of the payment split, and arrangements for the
payment of any such amounts.
(2) For paragraph 1017DA(2)(b) of the Act, the statement mentioned
in subregulation (1) is to be provided by a regulated person when
the regulated person gives a payment split notice to the
non-member spouse.
7.9.90 Information for existing holders of superannuation products
and RSA products in relation to superannuation interest
(1) For paragraph 1020G(1)(c) of the Act, this regulation applies in
relation to a non-member spouse.
(2) The definition of concerned person in subsection 1017C(9) of the
Act is modified by adding after paragraph (a) of the definition:
‘(aa) is a non-member spouse in relation to a superannuation
product or an RSA product that is issued in relation to a
payment split; or’.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 11 Superannuation to which arrangements apply under the Family Law Act
1975
Regulation 7.9.91
322 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.91 Periodic statements for retail clients for financial products
that have an investment component—general
(1) For paragraph 1020G(1)(a) of the Act, this regulation applies in
relation to a non-member spouse who holds a superannuation or
RSA product by way of a payment split.
(2) The product issuer in relation to the superannuation product or
RSA product is not required to comply with:
(a) paragraphs 1017D(5)(a) to (f) of the Act; and
(b) regulation 7.9.72 and subregulation 7.9.75(1).
7.9.92 Periodic statements for retail clients for financial products
that have an investment component—superannuation
interest other than percentage-only interest
(1) For paragraph 1017D(5)(g) of the Act, this regulation applies if:
(a) an interest in a superannuation product is subject to a base
amount payment split; and
(b) the interest is not a percentage-only interest; and
(c) the interest is in the growth phase; and
(d) none of the following has occurred under Part 7A of the SIS
Regulations:
(i) a new membership interest has been created for the
non-member spouse in relation to the payment split;
(ii) the transferable benefits of the non-member spouse have
been transferred or rolled out of the superannuation
fund;
(iii) the amount to which the non-member spouse is entitled
under the payment split has been paid, as a lump sum, to
the non-member spouse.
(2) This regulation also applies if:
(a) an interest in an RSA product is subject to a base amount
payment split; and
(b) the interest is in the growth phase; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Superannuation to which arrangements apply under the Family Law Act 1975 Division
11
Regulation 7.9.93
Corporations Regulations 2001 323
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) none of the following has occurred under Part 4A of the RSA
Regulations:
(i) a new RSA has been opened for the non-member
spouse;
(ii) the transferable benefits of the non-member spouse have
been transferred or rolled out of the RSA;
(iii) the amount to which the non-member spouse is entitled
under the payment split has been paid, as a lump sum, to
the non-member spouse.
(3) The periodic statement for the member spouse and the
non-member spouse must include the following information:
(a) the value of the adjusted base amount applicable to the
non-member spouse at the end of the reporting period;
(b) the amount of the adjustment in the reporting period;
(c) the method used to calculate the adjustment, including the
applicable interest rate required under regulation 48 of the
Family Law (Superannuation) Regulations 2001.
7.9.93 Trustees of superannuation entities—additional obligation to
provide information in relation to superannuation
interest
(1) For paragraph 1017DA(2)(a) of the Act, no information is to be
provided to a non-member spouse under section 1017DA of the
Act if the governing rules of a superannuation entity do not provide
for the non-member spouse to become a member of a
superannuation fund in relation to the superannuation entity.
(2) For paragraph 1017DA(2)(b) of the Act, if the governing rules of a
superannuation entity provide for a non-member spouse to become
a member of a superannuation fund in relation to the
superannuation entity:
(a) information is to be provided to the non-member spouse
under section 1017DA of the Act (and Subdivisions 5.5 to
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 11 Superannuation to which arrangements apply under the Family Law Act
1975
Regulation 7.9.94
324 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
5.7 of Part 7.9 of these Regulations) when the payment split
notice is given to the non-member spouse; and
(b) the information is to be provided with the payment split
notice.
7.9.94 Division 5 of Part 7.9 of the Act not to apply in relation to
non-member spouse
For paragraph 1019A(2)(c) of the Act, Division 5 of Part 7.9 of the
Act does not apply in relation to the issue of a superannuation
product or RSA product to a non-member spouse who acquires the
superannuation interest by means of a payment split.
Note: The non-member spouse may also wish to acquire an interest in the
superannuation fund, or become an RSA holder, by making an
application. In that case, regulation 7.9.94 would not apply and
Division 5 of Part 7.9 of the Act would apply to the extent that that
Division provides.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Medical indemnity insurance Division 12
Regulation 7.9.95
Corporations Regulations 2001 325
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 12—Medical indemnity insurance
7.9.95 Medical indemnity insurance—exemption from product
disclosure provisions
For paragraph 1020G(1)(b) of the Act, a medical indemnity
insurance product is exempt from the provisions of Part 7.9 of the
Act, until the earlier of:
(a) the date specified in a notice, lodged with ASIC by the issuer
of the product, that indicates that the issuer of the product
wants the provisions of Part 7.9 of the Act to apply in
relation to the product from that date; and
(b) 11 March 2004.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 13 Unsolicited offers to purchase financial products off market
Regulation 7.9.96
326 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 13—Unsolicited offers to purchase financial
products off market
7.9.96 Percentage increase or decrease in the market value of a
product
For paragraph 1019J(1)(c) of the Act, 50% is specified.
7.9.97 Off-market trading by professional investors etc
(1) For subparagraph 1019D(1)(d)(viii) of the Act, the following
circumstances are specified:
(a) the offer mentioned in subsection 1019D(1) of the Act is to:
(i) a professional investor; or
(ii) a person who has net assets of at least the amount
specified in regulations made for the purposes of
subparagraph 761G(7)(c)(i) of the Act; or
(iii) a person who has gross income for each of the last 2
financial years of at least the amount specified in
regulations made for the purposes of
subparagraph 761G(7)(c)(ii) of the Act; or
(iv) a business that is not a small business within the
meaning of subsection 761G(12) of the Act;
(b) the minimum amount payable for securities on acceptance of
the offer by the person to whom the offer is made is at least
$500 000;
(c) for a financial product other than securities, the offer for the
financial product is for an amount that equals or exceeds the
amount specified in regulations made for the purposes of
paragraph 761G(7)(a) of the Act.
(2) For paragraph (b), in calculating the amount payable for securities,
disregard any amount payable or paid to the extent to which it is to
be paid, or was paid, out of money lent by the person offering the
securities or an associate of the person offering the securities.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Unsolicited offers to purchase financial products off market Division 13
Regulation 7.9.97A
Corporations Regulations 2001 327
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.9.97A Information in offer document if payment is to be made in
instalments
(1) For paragraph 1019I(2)(f) of the Act, the following information is
specified for an offer document if payment for the financial
products mentioned in the document is to be made in instalments:
(a) the amount of each instalment;
(b) when each instalment will be paid;
(c) how many instalments will be paid;
(d) how each instalment will be paid;
(e) the following text, replacing X with the total present value of
the instalments and Y with the total current value of the
financial products:
‘Money loses value over time. In this case, the value of the total
instalment payments being offered to you is approximately the
same as being paid a single amount of $X today. $X represents the
‘present day value’ of the instalment payments. Commonwealth
legislation sets out a method for calculating the present value of the
offer, using the rate of interest of 1.1% per month. You can assess
this offer by comparing the present day value of the instalment
payments ($X) with the total market price of your shares or other
financial products ($Y).
‘In general, if the present day value of the instalment payments
being offered is less than the market price of your shares or other
financial products, then this offer may not be fair to you.’
(2) For this regulation, the total present value of a series of instalment
payments is the amount:
n
1
R
1.011 p p
t p
where:
n is the number of instalment payments to be made.
Rp is the amount of instalment payment number p, where each
instalment payment is assigned a number from l to n.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 13 Unsolicited offers to purchase financial products off market
Regulation 7.9.97A
328 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
tp is the number of whole months between the date of offer and the
date that the instalment number p is due.
(3) For this regulation, the total current value of a financial product is
the market value for the product on the date of offer as mentioned
in paragraph 1019I(2)(b) of the Act or the fair estimate of the value
of the product on the date of offer as mentioned in
paragraph 1019I(2)(c) of the Act, as applicable.
(4) For this regulation, all money amounts must be represented in
Australian currency.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Exemptions from Parts 7.7, 7.8 and 7.9 of the Act Division 14
Regulation 7.9.98
Corporations Regulations 2001 329
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 14—Exemptions from Parts 7.7, 7.8 and 7.9 of the
Act
7.9.98 Certain providers of financial services exempted from the
requirements of Parts 7.7, 7.8 and 7.9 of the Act
For the provisions of the Act set out in column 2 of the following
table, a person who is providing a financial service in the
circumstances set out subsections 911A(2A) to (2E) is exempt
from the operation of the Parts of the Act specified in column 3 in
relation to the provision of that service.
Column 1 Column 2 Column 3
Item Provisions of Act
1 paragraph 951C(1)(a) Part 7.7
2 paragraph 992C(1)(a) Part 7.8
3 paragraph 1020G(1)(a) Part 7.9
7.9.98A Exemption from application of Part 7.9 of the Act
For paragraph 1020G(1)(a) of the Act, Part 7.9 of the Act does not
apply to a person to the extent that the person is:
(a) issuing or selling:
(i) a litigation funding scheme mentioned in
regulation 5C.11.01; or
(ii) a litigation funding arrangement mentioned in
regulation 5C.11.01; or
(b) making a recommendation to acquire:
(i) a litigation funding scheme mentioned in
regulation 5C.11.01; or
(ii) a litigation funding arrangement mentioned in
regulation 5C.11.01; or
(c) making an offer relating to the issue or sale of:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 14 Exemptions from Parts 7.7, 7.8 and 7.9 of the Act
Regulation 7.9.98A
330 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) a litigation funding scheme mentioned in
regulation 5C.11.01; or
(ii) a litigation funding arrangement mentioned in
regulation 5C.11.01; or
(d) advertising:
(i) a litigation funding scheme mentioned in
regulation 5C.11.01; or
(ii) a litigation funding arrangement mentioned in
regulation 5C.11.01.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Disclosure in relation to short sales covered by securities lending arrangement of listed
section 1020B products Division 15
Regulation 7.9.99
Corporations Regulations 2001 331
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 15—Disclosure in relation to short sales covered
by securities lending arrangement of listed
section 1020B products
7.9.99 Interpretation
(1) In this Division:
reporting day, in relation to a short position, means a day on which
the Sydney office of ASIC is open for business.
Meaning of short position
(2) In this Division, a short position is a position in relation to a
section 1020B product in a listed entity where the quantity of the
product which a person has is less than the quantity of the product
which the person has an obligation to deliver.
(3) In subregulation (2), the person has the product if:
(a) the person is holding the product on the person’s own behalf;
or
(b) another person is holding the product on the person’s behalf;
or
(c) the person has entered into an agreement to buy the product
but has not received it; or
(d) the person has vested title in the product in a borrower, or in
an entity nominated by the borrower, under a securities
lending arrangement.
(4) In subregulation (2), the product which the person has an
obligation to deliver is the product which the person:
(a) has an obligation to deliver under a sale agreement where the
product has not been delivered; or
(b) has an obligation to vest title in a lender under a securities
lending arrangement; or
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 15 Disclosure in relation to short sales covered by securities lending
arrangement of listed section 1020B products
Regulation 7.9.100
332 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) has any other non-contingent legal obligation to deliver.
References to time
(5) A reference in this Division to a time is a reference to the legal
time in Sydney, New South Wales.
7.9.100 Seller disclosure
(1) For paragraph 1020AB(3)(a) of the Act, the particulars that a seller
must give in relation to a sale of a listed section 1020B product
where the seller has a presently exercisable and unconditional right
to vest the product in a buyer under a securities lending
arrangement are as follows:
(a) the number of section 1020B products that the seller will vest
in the buyer under the arrangement;
(b) a description of the product;
(c) the name of the entity that issued the product;
(d) the seller’s short position as at the close of business 3
reporting days before the day the particulars must be given
under subregulation (4).
(2) For subparagraph 1020AB(3)(b)(i) of the Act, in relation to
particulars mentioned in paragraphs (1)(a), (b), and (c):
(a) the seller mentioned in subparagraph 1020AB(1)(a)(i) of the
Act must give the particulars at the time of entering into an
agreement to sell; and
(b) the seller mentioned in subparagraph 1020AB(1)(a)(ii) of the
Act must give the particulars on or before 9 am:
(i) if the sale occurs after the start of the trading day but
before 7 pm—on the next trading day after entering into
an agreement to sell; and
(ii) if the sale occurs after 7 pm but before the start of the
next trading day—on the second trading day after
entering into an agreement to sell.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Disclosure in relation to short sales covered by securities lending arrangement of listed
section 1020B products Division 15
Regulation 7.9.100A
Corporations Regulations 2001 333
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) A reference to trading day in subregulation (2) is to a trading day
of the market where the sale is executed or reported.
(4) For subparagraph 1020AB(3)(b)(i) of the Act, in relation to
particulars mentioned in paragraph (1)(d), the seller must give the
particulars:
(a) on or before 9 am on the third reporting day after entering
into the agreement to sell that causes the short position to
occur; and
(b) on or before 9 am on each subsequent reporting day as long
as the seller has a short position.
(5) Paragraph (4)(b) applies whether or not the particulars about the
short position have changed from that given on the previous day.
(6) For subparagraph 1020AB(3)(b)(ii) of the Act, in relation to
particulars mentioned in paragraph (1)(d), the seller must give the
particulars in the form required by ASIC.
(7) For subparagraphs 1020AB(4)(a)(ii) and (b)(ii) of the Act, in
relation to the particulars mentioned in paragraph (1)(d), the entity
is ASIC.
(8) For subparagraph 1020AB(4)(b)(ii) of the Act, and in relation to
the particulars other than the particulars mentioned in
paragraph (1)(d), if the operator of the licensed market mentioned
in subparagraph 1020AB(1)(a)(ii) of the Act (operator 1) appoints
the operator of another licensed market (operator 2), in writing, as
operator 1’s agent for the purpose of receiving any of those
particulars, operator 2 is the entity for those particulars.
7.9.100A Seller disclosure of existing short position
(1) If a seller has a short position which arises from an agreement to
sell, entered into before commencement of this regulation, the
seller must give particulars about the short position as at the close
of business on the day this regulation commences:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 15 Disclosure in relation to short sales covered by securities lending
arrangement of listed section 1020B products
Regulation 7.9.101
334 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) on or before 9 am on the third reporting day after
commencement of this regulation; and
(b) on or before 9 am on each subsequent reporting day as long
as the seller has a short position.
(2) The particulars must be given to ASIC in the form required by
ASIC.
7.9.101 Licensee disclosure
(1) For paragraph 1020AC(2)(a) of the Act, the particulars that a
financial services licensee must give in relation to information
given to the licensee under section 1020AB of the Act in relation to
a sale of a listed section 1020B product is the information specified
in paragraphs 7.9.100(1)(a), (b) and (c).
(2) For paragraph 1020AC(2)(b) of the Act:
(a) the time for disclosure of the information is on or before 9
am:
(i) if the information is given to the licensee after the start
of the trading day but before 7 pm—on the next trading
day after the licensee is given the information under
section 1020AB of the Act; and
(ii) if the information is given to the licensee after 7 pm but
before the start of the next trading day—on the second
trading day after the licensee is given the information
under section 1020AB of the Act; and
(b) the manner for disclosure of the information is by electronic
transmission to the operator.
(3) A reference to trading day in subregulation (2) is to a trading day
of the market where the information is given.
(4) For paragraph 1020AC(3)(b) of the Act, and in relation to the
particulars mentioned in paragraph 1020AC(3)(a) of the Act, if the
operator of the licensed market mentioned in
paragraph 1020AC(1)(a) of the Act (operator 1) appoints the
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Financial product disclosure and other provisions relating to issue and sale of financial
products Part 7.9
Disclosure in relation to short sales covered by securities lending arrangement of listed
section 1020B products Division 15
Regulation 7.9.102
Corporations Regulations 2001 335
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
operator of another licensed market (operator 2), in writing, as
operator 1’s agent for the purpose of receiving any of those,
operator 2 is the entity for those particulars.
7.9.102 Public disclosure of information
(1) For paragraph 1020AD(2)(a) of the Act, the particulars which the
operator of a licensed market must publicly disclose in relation to
information given to the operator under section 1020AB or
1020AC of the Act in relation to a sale of a listed section 1020B
product are the total number of each kind of section 1020B product
that has been sold on a particular day and disclosed to the operator
under section 1020AB or 1020AC of the Act.
(1A) For paragraph 1020AD(2)(a) of the Act, the particulars which
ASIC must publicly disclose in relation to information given to it
under section 1020AB of the Act in relation to a sale of a listed
section 1020B product are the total of all short positions in a
product issued by a listed entity that have been disclosed to ASIC
under section 1020AB of the Act on the previous reporting day.
(2) For subparagraph 1020AD(2)(b)(i) of the Act, the time for the
disclosure of the information mentioned in subregulation (1) is:
(a) if the information is given to the licensee after the start of the
trading day but before 7 pm—on the next trading day after
the day the agreements to sell were entered into; and
(b) if the information is given to the licensee after 7 pm but
before the start of the next trading day—on the second
trading day after the day the agreements to sell were entered
into.
(3) A reference to trading day in subregulation (2) is to a trading day
of the market in relation to which the operator is responsible for
disclosure of the information.
(3A) For subparagraph 1020AD(2)(b)(i) of the Act, the time for the
disclosure of the information mentioned in subregulation (1A) is
the first reporting day after the day the information is received.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.9 Financial product disclosure and other provisions relating to issue and sale of
financial products
Division 15 Disclosure in relation to short sales covered by securities lending
arrangement of listed section 1020B products
Regulation 7.9.102
336 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) For subparagraph 1020AD(2)(b)(ii) of the Act, the manner of
public disclosure of the information mentioned in subregulation (1)
is by publication:
(a) on the operator’s website; or
(b) in any other form that is easily accessible by the public.
(5) For subparagraph 1020AD(2)(b)(ii) of the Act, the manner of
public disclosure of the information mentioned in
subregulation (1A) is by publication:
(a) on ASIC’s website; or
(b) in any other form that is readily accessible by the public.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Market misconduct and other prohibited conduct relating to financial products and
financial services Part 7.10
Regulation 7.10.01
Corporations Regulations 2001 337
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 7.10—Market misconduct and other
prohibited conduct relating to financial
products and financial services
7.10.01 Division 3 financial products
For paragraph (d) of the definition of Division 3 financial products
in section 1042A of the Act, superannuation products provided by
a superannuation entity that is not a public offer entity are
prescribed.
7.10.02 Professional standards schemes
For subsection 1044B(2) of the Act, a scheme and any
modifications to the scheme set out in the following table are
prescribed.
Note: Column 2 of the table below is included for information only.
Prescribed professional standards schemes
Item Column 1
Scheme
Column 2
Date prescribed
1 The Institute of Chartered Accountants in Australia
Professional Standards Scheme (NSW), published in
the New South Wales Government Gazette No. 70,
22 August 2014
1 December 2014
2 The Law Society of New South Wales Scheme,
published in the New South Wales Government
Gazette No. 78, 27 July 2012
1 March 2013
3 The New South Wales Bar Association Scheme,
published in the New South Wales Government
Gazette No. 84, 25 June 2010
1 March 2013
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.10 Market misconduct and other prohibited conduct relating to financial
products and financial services
Regulation 7.10.02
338 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Prescribed professional standards schemes
Item Column 1
Scheme
Column 2
Date prescribed
4 The Institute of Chartered Accountants in Australia
Professional Standards Scheme (Victoria), published
in the Victoria Government Gazette No. S 264,
5 August 2014
1 December 2014
5 The Law Institute of Victoria Limited Scheme,
published in the Victoria Government Gazette No. G
10, 11 March 2010, and the following modifications:
(a) the amendments made by instrument published in
the Victoria Government Gazette No. S 164,
1 May 2013;
(b) the amendments made by instrument published in
the Victoria Government Gazette No. G 36,
5 September 2013
The scheme—
1 November 2012
The amendments
mentioned in:
(a) paragraph (a) of
column 1 of this
item—15 March
2014; and
(b) paragraph (b) of
column 1 of this
item—15 March
2014
6 The Victorian Bar Professional Standards Scheme,
published in the Victoria Government Gazette No. S
134, 24 April 2014
14 June 2014
7 The Bar Association of Queensland Scheme,
published in the Queensland Government Gazette
No. 40, 24 June 2013
15 March 2014
8 The Institute of Chartered Accountants in Australia
Professional Standards Scheme (Queensland),
notified by the Queensland Government on
29 August 2014
1 December 2014
9 The Queensland Law Society Scheme, published in
the Queensland Government Gazette No. 64, 25 June
2010
1 March 2013
10 The Institute of Chartered Accountants in Australia
Professional Standards Scheme (WA), published in
the Western Australian Government Gazette No. 122,
8 August 2014
1 December 2014
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Market misconduct and other prohibited conduct relating to financial products and
financial services Part 7.10
Regulation 7.10.03
Corporations Regulations 2001 339
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Prescribed professional standards schemes
Item Column 1
Scheme
Column 2
Date prescribed
11 The Law Society of Western Australia Scheme,
published in the Western Australian Government
Gazette No. 54, 11 April 2014
14 June 2014
12 The Western Australian Bar Association Scheme,
published in the Western Australian Government
Gazette No. 57, 17 April 2014
14 June 2014
13 The Institute of Chartered Accountants in Australia
Professional Standards Scheme (SA), published in
the South Australian Government Gazette No. 63,
21 August 2014
1 December 2014
14 The Law Society of South Australia Professional
Standards Scheme, published in the South Australian
Government Gazette No. 76, 3 November 2011
1 March 2013
15 The South Australian Bar Association Inc Scheme,
published in the South Australian Government
Gazette No. 76, 3 November 2011
1 March 2013
16 The Institute of Chartered Accountants in Australia
Professional Standards Scheme (ACT), approved on
14 July 2014
1 December 2014
17 The Institute of Chartered Accountants in Australia
Professional Standards Scheme (NT), published in
the Northern Territory Government Gazette No. S84,
17 September 2014
1 December 2014
7.10.03 Exemption for market participants of qualifying gas trading
exchange
For paragraph 1045A(1)(a) of the Act, a person is exempt from
Part 7.10 of the Act if the person:
(a) is a participant in relation to a qualifying gas trading
exchange; and
(b) is engaging in trading activities in relation to qualifying gas
exchange products on a qualifying gas trading exchange.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 1 Preliminary
Regulation 7.11.01
340 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 7.11—Title and transfer
Division 1—Preliminary
7.11.01 Definitions
In this Part:
associate, in relation to a broker or participant, means:
(a) if the broker or participant:
(i) is a member of a firm of brokers or participants; and
(ii) is not a broker’s agent or a participant’s agent;
any other member of the firm; or
(b) if:
(i) the broker or participant is the agent or employee of
another broker or participant; and
(ii) the other broker or participant is not a member of a firm
of brokers or participants;
the other broker or participant; or
(c) if:
(i) the broker or participant is the agent or employee of
another broker or participant; and
(ii) the other broker or participant is a member of a firm of
brokers or participants;
any member of that firm.
ASTC subregister means a subregister of Division 4 financial
products maintained in accordance with the ASTC operating rules.
beneficial owner, in relation to Division 3 securities, means a
person for whom a licensed trustee company, within the meaning
of Chapter 5D of the Act, a Public Trustee of a State or Territory,
or a company listed in Schedule 9 holds (whether alone or together
with any other person or persons) the Division 3 securities in trust
in the ordinary course of its business.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Preliminary Division 1
Regulation 7.11.01
Corporations Regulations 2001 341
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
broker means an Australian financial services licensee who is a
participant of a financial market.
broker’s agent means:
(a) the agent of a broker; or
(b) the employee of a broker.
company includes a body mentioned in regulation 7.11.07.
duly completed, in relation to a transfer document, includes the
requirements set out in regulation 7.11.05.
duly completed Part 1 means a transfer document that has been
duly completed in accordance with Part 1 of Form 1, 2, 3, 5, 6 or 7.
execution time, in relation to a transfer document, means:
(a) for a sufficient transfer under regulation 7.11.11—the time
when the transfer document was stamped with a stamp
purporting to be that of the transferee’s broker; and
(b) for a sufficient transfer under regulation 7.11.12 or 7.11.13—
the time when the transfer document was executed by the
transferor.
identification code, in relation to a participant, means a code that,
for the purposes of the ASTC operating rules, is:
(a) the participant’s identification code; or
(b) one of its identification codes.
in accordance with includes to the effect of.
issuer of a Division 4 financial product means:
(a) an issuer under section 761E of the Act; and
(b) any other person identified as an issuer, or treated as an
issuer, under the ASTC operating rules.
market licensee, in relation to securities specified in a transfer
document, means the market licensee that operates the market for
the securities.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 1 Preliminary
Regulation 7.11.03
342 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.11.03 Arrangements about Division 4 financial products
(1) A financial product is a Division 4 financial product if the
financial product is:
(a) a Division 3 security other than a security mentioned in
paragraph 1073A(1)(e) of the Act; or
(b) declared by ASIC, under section 1075A of the Act, to be a
financial product the transfer of which will be effected
through ASTC under these Regulations.
(2) Subregulations (3) to (8) apply in relation to a class of Division 4
financial products that is admitted to quotation.
(3) A Division 4 financial product in the class of Division 4 financial
products is not taken to have stopped being quoted merely because
of a temporary suspension of quotation of the class.
(4) If:
(a) there is a suspension of the quotation of a Division 4
financial product in the class; and
(b) during the suspension, the issuer in relation to the Division 4
financial product ceases to be included in the official list of
the market licensee on which the Division 4 financial product
is traded;
the Division 4 financial product is taken to stop being quoted when
the issuer ceases to be included in the official list.
(5) Subregulation (4) does not limit the circumstances in which a
Division 4 financial product in the class may be taken to have
stopped being quoted on a financial market of a market licensee.
(6) For the provisions mentioned in subregulation (8), if:
(a) a Division 4 financial product stops being quoted on a
financial market of a market licensee; and
(b) the ASTC operating rules provide that the Division 4
financial product is to be taken to continue to be quoted for a
specified period;
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Preliminary Division 1
Regulation 7.11.04
Corporations Regulations 2001 343
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
the Division 4 financial product is taken to be quoted during the
period.
(7) For the provisions mentioned in subregulation (8), if:
(a) a Division 4 financial product has been issued; and
(b) the Division 4 financial product:
(i) is approved, by a market licensee, to be admitted to
quotation on a financial market of the market licensee;
and
(ii) has not yet been quoted; and
(c) the ASTC operating rules provide that the Division 4
financial product is taken to be quoted for a specified period;
the Division 4 financial product is taken to be quoted during the
period.
(8) The provisions are:
(a) the definitions of:
(i) ASTC certificate cancellation provisions; and
(ii) ASTC-regulated transfer; and
(iii) ASTC subregister; and
(iv) proper ASTC transfer; and
(b) section 653A of the Act; and
(c) Part 7.11 of the Act; and
(d) regulations made for the purposes of Part 7.11 of the Act.
7.11.04 Arrangements for forms
(1) A reference in this Part to a form by number is a reference to:
(a) the form numbered in that way in Schedule 2A; or
(b) a form that has the same effect.
(2) If a form in Schedule 2A refers to the full name of the transferor of
Division 3 securities, the reference includes a reference to the
name of the person shown in the records of the issuer in relation to
those securities as the holder of those securities.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 1 Preliminary
Regulation 7.11.05
344 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.11.05 Document duly completed in accordance with a particular
form
(1) Subject to subregulation (2), a document is not duly completed in
accordance with one of Forms 1, 2, 3, 4, 5, 6, 7 and 8, or a part of
one of those forms, unless the following requirements are met:
(a) the document must purport to state the transferee’s name and
address where the form or part requires that information;
(b) the document must bear a stamp that purports to be the
transferor’s broker’s stamp where the form or part requires
that information;
(c) the document must bear a stamp that purports to be the
transferee’s broker’s stamp where the form or part requires
that information;
(d) the document must bear a stamp that purports to be a market
licensee’s stamp where the form or part requires that
information.
(2) If a document (the first document) relates to particular Division 3
securities, the following paragraphs apply for the purposes of
determining whether the first document and another document (the
second document) are, together or with 1 or more other
documents, a sufficient transfer of the Division 3 securities:
(a) the first document is not duly completed in accordance with
Part 3 of Form 1, 2, 3, 5, 6 or 7 unless it:
(i) bears a stamp that purports to be the transferee’s
broker’s stamp where that part refers to the transferee’s
broker’s stamp; and
(ii) sets out a string of characters that purports to be the
transfer consolidation number of the first document
where that part refers to the transferee’s broker’s stamp;
(b) the second document is not duly completed in accordance
with Part 1 of Form 4 or 8 unless it sets out a string of
characters that purports to be the transfer consolidation
number of the first document where that part refers to a
transfer consolidation number or transfer consolidation
numbers (whether or not it sets out 1 or more strings of
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Preliminary Division 1
Regulation 7.11.06
Corporations Regulations 2001 345
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
characters that do not purport to be the transfer consolidation
number);
(c) the second document can be duly completed in accordance
with Part 1 of Form 4 or 8 even if it does not set out correctly
the number of Division 3 securities to which it relates.
Note: If the document mentioned in subregulation (1), or the documents
mentioned in subregulation (2), are a sufficient transfer of the
Division 3 securities, the document or documents become transfer
documents for this Part.
7.11.06 Stamping of documents
(1) In this Part (other than regulation 7.11.40):
(a) a reference to the stamping of a document is a reference to
stamping in ink; and
(b) a reference to a stamp on a document, or to a stamp borne by
a document, is a reference to a stamp stamped on the
document in ink.
(2) A reference in regulation 7.11.40 to the stamping of a document is
a reference to stamping the document in any manner.
Examples:
1 Stamping in ink.
2 Affixing a stamp.
3 Impressing a stamp.
7.11.07 Application of Division 3 of Part 7.11 of the Act to certain
bodies
(1) For subparagraph 1073C(a)(ii) of the Act, the Westpac Banking
Corporation is prescribed.
(2) For subparagraph 1073C(b)(iii) of the Act, the Australian Gas
Light Company is prescribed.
Note: The effect of section 1073C of the Act is that Division 3 of Part 7.11
of the Act applies to bodies prescribed for that section as if they were
companies.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 1 Preliminary
Regulation 7.11.08
346 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.11.08 Interests in registered schemes
For paragraph 1073A(1)(c) of the Act, an interest in a registered
scheme is an interest in a registered scheme if the interest:
(a) is an interest in a managed investment scheme that is
registered under section 601EB of the Act; and
(b) is quoted on the financial market of the Australian Stock
Exchange Limited.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Application of Part 7.11 Division 2
Regulation 7.11.09
Corporations Regulations 2001 347
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2—Application of Part 7.11
7.11.09 Application
This Part applies to conduct engaged in in this jurisdiction or
otherwise.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 3 Transfer of Division 3 securities effected otherwise than through a
prescribed CS facility
Regulation 7.11.10
348 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 3—Transfer of Division 3 securities effected
otherwise than through a prescribed CS facility
7.11.10 Application of Division 3
This Division is made under section 1073D of the Act, and applies
to transfers of Division 3 securities effected otherwise than through
a prescribed CS facility.
7.11.11 Sufficient transfer: general
(1) A document is a sufficient transfer of Division 3 assets if it:
(a) relates to those assets; and
(b) is duly completed in accordance with the documentation in
any of the following subparagraphs:
(i) Parts 1 and 2 of Form 1;
(ii) Part 1 of Form 1 and Parts 1 and 2 of Form 2 or Form 3;
(iii) Parts 1 and 3 of Form 1 and both parts of Form 4;
(iv) Part 1 of Form 1, Parts 1 and 3 of Form 2 or Form 3 and
both parts of Form 4.
(2) A document is a sufficient transfer of Division 3 rights if it:
(a) relates to those rights; and
(b) is duly completed in accordance with the documentation in
any of the following subparagraphs:
(i) Parts 1 and 2 of Form 5;
(ii) Part 1 of Form 5 and Parts 1 and 2 of Form 6 or Form 7;
(iii) Parts 1 and 3 of Form 5 and both parts of Form 8;
(iv) Part 1 of Form 5, Parts 1 and 3 of Form 6 or Form 7 and
both parts of Form 8.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 3 securities effected otherwise than through a prescribed CS
facility Division 3
Regulation 7.11.12
Corporations Regulations 2001 349
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.11.12 Sufficient transfer of Division 3 assets: licensed trustee
company or Public Trustee of a State or Territory
(1) This regulation applies to the transfer of Division 3 assets,
otherwise than by way of sale, gift or exchange, by:
(a) a licensed trustee company, within the meaning of
Chapter 5D of the Act; or
(b) a Public Trustee of a State or Territory; or
(c) a company mentioned in Schedule 9;
whether alone or together with any other person or persons, to the
beneficial owner of the Division 3 assets.
(2) A document is a sufficient transfer of the Division 3 assets if it:
(a) relates to those assets; and
(b) is completed in accordance with Form 9.
7.11.13 Sufficient transfer of Division 3 rights: licensed trustee
company or Public Trustee of a State or Territory
(1) This regulation applies to the transfer of Division 3 rights,
otherwise than by way of sale, gift or exchange, by:
(a) a licensed trustee company, within the meaning of
Chapter 5D of the Act; or
(b) a Public Trustee of a State or Territory; or
(c) a company mentioned in Schedule 9;
whether alone or together with any other person or persons, in
favour of the beneficial owner of those rights.
(2) A document is a sufficient transfer of the Division 3 rights if it:
(a) relates to those rights; and
(b) is completed in accordance with Form 10.
7.11.14 Sufficient transfer
(1) A document that is a sufficient transfer of Division 3 assets may be
used:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 3 Transfer of Division 3 securities effected otherwise than through a
prescribed CS facility
Regulation 7.11.15
350 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) as a proper instrument of transfer for section 1071B of the
Act; and
(b) as an instrument of transfer for the purposes of any other law
or instrument governing or relating to those assets.
(2) A document that is a sufficient transfer of Division 3 rights may be
used as an instrument of transfer of those rights for the purposes of
any law or instrument governing or relating to those rights.
7.11.15 Transferee’s execution of transfer of Division 3 assets
(1) If Division 3 assets are transferred by means of a sufficient
transfer:
(a) the transferee is taken to have agreed at the execution time to
accept the Division 3 assets subject to the terms and
conditions on which the transferor held them at that time; and
(b) the terms and conditions are the terms and conditions
applicable as between:
(i) the issuer in relation to the Division 3 assets; and
(ii) the holder for the time being of the Division 3 assets.
(2) If the Division 3 assets are shares, the transferee is also taken to
have agreed, at the execution time:
(a) to become a member of the issuer; and
(b) to be bound, on being registered as the holder of the shares,
by the issuer’s constitution.
7.11.16 Transferee’s execution of transfer of Division 3 rights
(1) If Division 3 rights relating to Division 3 assets are transferred by
means of a sufficient transfer, the transferee is taken:
(a) to have applied at the execution time to the issuer in relation
to the Division 3 assets for the issue to the transferee of the
Division 3 assets; and
(b) to have agreed at the execution time to accept the Division 3
assets subject to the terms and conditions on which the issuer
offers them for subscription.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 3 securities effected otherwise than through a prescribed CS
facility Division 3
Regulation 7.11.17
Corporations Regulations 2001 351
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) If the Division 3 assets are shares, the transferee is also taken to
have agreed, at the execution time:
(a) to become a member of the issuer; and
(b) to be bound, on being registered as the holder of the shares,
by the issuer’s constitution.
7.11.17 Transfer document that purports to bear stamp of
transferor's broker
(1) This regulation applies if a transfer document relating to Division 3
assets or Division 3 rights:
(a) is a duly completed Part 1; and
(b) bears a stamp that purports to be a stamp of the transferor’s
broker (the designated broker).
(2) Each associate (if any) of the designated broker is taken to have
warranted:
(a) that the statements in the transfer document that purport to be
certified by the designated broker are accurate; and
(b) that the transferor is:
(i) the registered holder of, or entitled to be registered as
the holder of, the Division 3 assets; or
(ii) is entitled to the Division 3 rights;
and is legally entitled or authorised to sell or dispose of the
Division 3 assets or Division 3 rights.
(3) If the designated broker is not a broker’s agent, the designated
broker is taken to have warranted:
(a) that the statements in the transfer document that purport to be
certified by the designated broker are accurate; and
(b) that the transferor is:
(i) the registered holder of, or entitled to be registered as
the holder of, the Division 3 assets; or
(ii) is entitled to the Division 3 rights;
and is legally entitled or authorised to sell or dispose of the
Division 3 assets or Division 3 rights.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 3 Transfer of Division 3 securities effected otherwise than through a
prescribed CS facility
Regulation 7.11.17
352 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) The following additional arrangements apply if the transfer
document has been duly completed in accordance with Part 1 of
Form 1 or Form 5:
(a) if, when the transfer document was stamped with the stamp
mentioned in paragraph (1)(b), the designated broker had
authority to sell the Division 3 assets or Division 3 rights, on
the transferor’s behalf, to:
(i) the transferee; or
(ii) particular persons who include, or particular classes of
persons at least one of which includes, the transferee; or
(iii) any person at all;
the designated broker is taken to have been authorised to
execute, and to have executed, the transfer document on the
transferor’s behalf;
(b) each associate (if any) of the designated broker is liable to
indemnify:
(i) the issuer in relation to the Division 3 assets or
Division 3 rights; and
(ii) the transferor; and
(iii) the transferee; and
(iv) the transferee’s broker;
against any loss or damage arising if:
(v) the stamp mentioned in paragraph (1)(b) is not the
designated broker’s stamp; or
(vi) apart from paragraph (a), the designated broker was not
authorised to execute the transfer document on the
transferor’s behalf;
(c) if the designated broker is not a broker’s agent, the
designated broker is liable to indemnify:
(i) the issuer in relation to the Division 3 assets or
Division 3 rights; and
(ii) the transferor; and
(iii) the transferee; and
(iv) the transferee’s broker;
against any loss or damage arising if:
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 3 securities effected otherwise than through a prescribed CS
facility Division 3
Regulation 7.11.18
Corporations Regulations 2001 353
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(v) the stamp mentioned in paragraph (1)(b) is not the
designated broker’s stamp; or
(vi) apart from paragraph (a), the designated broker was not
authorised to execute the transfer document on the
transferor’s behalf.
7.11.18 Warranties by market licensee if transfer document
purports to bear its stamp
(1) This regulation applies if a transfer document:
(a) has been duly completed in accordance with Part 1 of Form 3
or Form 7; and
(b) bears a stamp that purports to be a stamp of a market
licensee.
(2) The market licensee is taken to have warranted that:
(a) the statements in the transfer document that purport to be
certified by a market licensee are accurate; and
(b) the transferor is:
(i) the registered holder of, or entitled to be registered as
the holder of, the Division 3 assets; or
(ii) entitled to the Division 3 rights;
and is legally entitled or authorised to sell or dispose of the
Division 3 assets or Division 3 rights.
7.11.19 Indemnities by market licensee and broker if transfer
document purports to bear their stamps
(1) This regulation applies if:
(a) a transfer document (the first document) relating to
Division 3 assets or Division 3 rights:
(i) has been duly completed in accordance with Part 1 of
Form 1 or Form 5; and
(ii) bears a stamp that purports to be the stamp of the
transferor’s broker; and
(b) another transfer document:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 3 Transfer of Division 3 securities effected otherwise than through a
prescribed CS facility
Regulation 7.11.20
354 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) relates to any or all of the Division 3 assets or
Division 3 rights; and
(ii) has been duly completed in accordance with Part 1 of
Form 3 or Form 7; and
(iii) bears a stamp that purports to be the stamp of a market
licensee.
(2) The market licensee is liable to indemnify:
(a) the issuer in relation to the Division 3 assets or Division 3
rights; and
(b) the transferor in relation to the other document; and
(c) the transferee in relation to the other document; and
(d) the broker of the transferee in relation to the other document;
against any loss or damage arising if:
(e) the stamp mentioned in subparagraph (1)(a)(ii) is not the
stamp of the transferor’s broker; or
(f) apart from paragraph 7.11.17(4)(a), the designated broker
was not authorised to execute the first document on behalf of
the transferor in relation to the first document.
(3) Each associate (if any) of the transferor’s broker is liable to
indemnify the market licensee against any loss or damage arising
as mentioned in subregulation (2).
(4) If the transferor’s broker is not a broker’s agent, the transferor’s
broker is liable to indemnify the market licensee against any loss or
damage arising as mentioned in subregulation (2).
(5) Nothing in this regulation limits the operation of anything in
regulation 7.11.17 or 7.11.18 or of anything else in this regulation.
7.11.20 Joint and several warranties and liabilities
(1) If 2 or more persons are taken to have warranted in the terms
mentioned in paragraphs 7.11.17(2)(a) and (b) or 7.11.17(3)(a) and
(b), the persons are taken to have warranted jointly and severally.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 3 securities effected otherwise than through a prescribed CS
facility Division 3
Regulation 7.11.21
Corporations Regulations 2001 355
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) If 2 or more persons are liable as mentioned in
paragraph 7.11.17(4)(b) or (c), or subregulation 7.11.19(3) or (4),
the persons are liable jointly and severally.
7.11.21 Registration of certain instruments
(1) This regulation applies if a sufficient transfer under this Part is
lodged with a company for the purpose of:
(a) registering a transfer of Division 3 assets; or
(b) obtaining the issue of Division 3 assets.
(2) If the sufficient transfer is a transfer under regulation 7.11.11, the
company and its officers are, in the absence of knowledge to the
contrary, entitled to assume without inquiry that:
(a) a stamp on the transfer document that purports to be the
transferor’s broker’s stamp is the stamp of that broker; and
(b) a stamp on the transfer document that purports to be the
transferee’s broker’s stamp is the stamp of that broker; and
(c) a stamp on the transfer document that purports to be the
stamp of a market licensee is the stamp of that market
licensee.
(3) If the sufficient transfer is a transfer under regulation 7.11.12 or
7.11.13, the company and its officers are, in the absence of
knowledge to the contrary, entitled to assume without inquiry that:
(a) at the execution time, the licensed trustee company, within
the meaning of Chapter 5D of the Act, a Public Trustee of a
State or Territory, or a company listed in Schedule 9 named
in the instrument held (whether alone or together with any
other person or persons) in the ordinary course of its
business, in trust for or on behalf of the transferee, the
Division 3 assets or Division 3 rights to which the sufficient
transfer relates; and
(b) the transfer was not made by way of a sale, gift or exchange
of the Division 3 assets or Division 3 rights.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 3 Transfer of Division 3 securities effected otherwise than through a
prescribed CS facility
Regulation 7.11.22
356 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.11.22 Details to be included in instrument of transfer
(1) For subsection 1071B(3) of the Act, for a transfer of unquoted
securities, the State or Territory in this jurisdiction in which the
company is taken to be registered is a prescribed detail.
(2) In this regulation:
unquoted securities means securities (within the meaning of
subsection 1071A(1) of the Act) that are not admitted to quotation
on any of the financial markets operated by the Australian Stock
Exchange Limited, Bendigo Stock Exchange Limited or National
Stock Exchange of Australia Limited.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 4 financial products effected through prescribed CS facility
Division 4
Regulation 7.11.23
Corporations Regulations 2001 357
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4—Transfer of Division 4 financial products
effected through prescribed CS facility
7.11.23 Application of Division 4
This Division is made under sections 1074A and 1074E of the Act,
and applies to transfers of Division 4 financial products effected
through ASTC.
Note: ASTC—the ASX Settlement and Transfer Corporation Pty Limited—
is a prescribed CS facility for the Act.
7.11.24 Application of ASTC operating rules
If the ASTC operating rules include provisions determining:
(a) which participant effected a proper ASTC transfer; or
(b) when a proper ASTC transfer takes effect;
those provisions have effect for this Division.
7.11.25 Participant’s authority to enter into transaction continues
despite client’s death
(1) This regulation applies if:
(a) a person authorises a participant to enter into a transaction
involving the disposal of a Division 4 financial product (for
example, a sale); and
(b) the person dies before the participant enters into the
transaction; and
(c) the authority is still in force immediately before the person
dies.
(2) The authority continues, despite the person’s death, as if the person
were still alive.
(3) If the participant enters into the transaction while the authority so
continues, the transaction is binding on the person’s legal
representative.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 4 Transfer of Division 4 financial products effected through prescribed CS
facility
Regulation 7.11.26
358 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) The authority can be revoked by the person’s legal representative
in any way that the person could have revoked it while the person
was alive.
7.11.26 Authority to enter into transaction gives authority to
transfer
(1) This regulation applies if a person authorises a participant to enter
into a transaction involving the disposal of a Division 4 financial
product (for example, a sale).
(2) The person is taken to have authorised the participant to effect any
proper ASTC transfer of the Division 4 financial product that the
participant effects, whether or not the transfer has any connection
with the transaction.
Note: The transfer may have no connection with the transaction because of
the operation of the provisions of the ASTC operating rules mentioned
in subregulation 7.5.41(1).
(3) The authority that the person is taken by subregulation (2) to have
given:
(a) is revoked if, before the transaction is entered into, the
authority to enter into the transaction is revoked or otherwise
ceases to have effect; and
(b) cannot otherwise be revoked.
(4) If the person dies after the transaction is entered into, the authority:
(a) continues in force, despite the person’s death, as if the person
were still alive; and
(b) cannot be revoked.
(5) If:
(a) the authority mentioned in subregulations (1) and (2) is given
to a participant mentioned in paragraph (b) of the definition
of participant in section 761A of the Act (the transacting
participant); and
(b) under the market licensee’s operating rules, a participant
mentioned in paragraph (a) of the definition of participant in
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 4 financial products effected through prescribed CS facility
Division 4
Regulation 7.11.27
Corporations Regulations 2001 359
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
section 761A of the Act (the clearing participant) has the
function of completing the relevant transaction;
the clearing participant has the same authority as the transacting
participant has under subregulations (1) and (2).
7.11.27 Effect of proper ASTC transfer on transferee: Division 4
financial products other than rights
(1) If a proper ASTC transfer of a Division 4 financial product (other
than rights) takes effect at a particular time:
(a) the transferee is taken to have agreed at that time to accept
the Division 4 financial product subject to the terms and
conditions on which the transferor held them immediately
before that time; and
(b) the terms and conditions are the terms and conditions
applicable as between the issuer in relation to, and the holder
for the time being of, the Division 4 financial product.
(2) If the Division 4 financial product is shares, the transferee is also
taken to have agreed at that time:
(a) to become a member of the issuer; and
(b) to be bound by the issuer’s constitution.
(3) If the Division 4 financial product is an interest in a managed
investment scheme, the transferee is also taken to have agreed at
that time:
(a) to become a member of the managed investment scheme; and
(b) to be bound by the constitution of the managed investment
scheme to the extent that:
(i) the transferee will comply with any requirement
imposed on the transferee by the constitution; and
(ii) the transferee will not impede compliance by another
person with any requirement imposed on the other
person by the constitution.
(4) In this regulation:
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 4 Transfer of Division 4 financial products effected through prescribed CS
facility
Regulation 7.11.28
360 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
right means a right, whether existing or future, and whether
contingent or not, of a person to have any of the following issued
to the person, whether or not on payment of any money or for any
other consideration:
(a) a share in a company (including a body to which
section 1073C of the Act applies);
(b) a debenture of a company (including a body to which
section 1073C of the Act applies);
(c) an interest in a registered scheme mentioned in regulations
made under paragraph 1073A(1)(c) of the Act.
7.11.28 Effect of proper ASTC transfer on transferee: rights
(1) If a proper ASTC transfer of a Division 4 financial product that is
rights (other than rights that relate to an interest in a managed
investment scheme) takes effect at a particular time, the transferee
is taken:
(a) to have applied at that time to the issuer in relation to the
rights for the issue to the transferee of the Division 4
financial product to which the rights relate; and
(b) to have agreed at that time to accept the Division 4 financial
product to which the rights relate subject to the terms and
conditions on which the issuer offers them for subscription.
(2) If the Division 4 financial product to which the rights (other than
rights that relate to an interest in a managed investment scheme)
relate is shares, the transferee is also taken to have agreed, at that
time:
(a) to become a member of the issuer; and
(b) to be bound, on being registered as the holder of the shares,
by the issuer’s constitution.
(3) If the Division 4 financial product is a right to an interest in a
managed investment scheme, the transferee is also taken to have
agreed at that time:
(a) to have applied at that time to the responsible entity in
relation to the rights for the issue to the transferee of the
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 4 financial products effected through prescribed CS facility
Division 4
Regulation 7.11.29
Corporations Regulations 2001 361
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
interest in a managed investment scheme to which the rights
relate; and
(b) to have agreed at that time to accept the interest in a managed
investment scheme to which the rights relate subject to the
terms and conditions on which they are offered by the
responsible entity; and
(c) to become a member of the managed investment scheme; and
(d) to be bound by the constitution of the managed investment
scheme to the extent that:
(i) the transferee will comply with any requirement
imposed on the transferee by the constitution; and
(ii) the transferee will not impede compliance by another
person with any requirement imposed on the other
person by the constitution.
(4) In this regulation:
right means a right, whether existing or future, and whether
contingent or not, of a person to have any of the following issued
to the person, whether or not on payment of any money or for any
other consideration:
(a) a share in a company (including a body to which
section 1073C of the Act applies);
(b) a debenture of a company (including a body to which
section 1073C of the Act applies);
(c) an interest in a registered scheme mentioned in regulations
made under paragraph 1073A(1)(c) of the Act.
7.11.29 Warranties by participant if identification code is included
in transfer document
(1) This regulation applies if the transfer document for a proper ASTC
transfer of a Division 4 financial product includes a participant’s
identification code as the identification code of the participant
effecting the transfer.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 4 Transfer of Division 4 financial products effected through prescribed CS
facility
Regulation 7.11.29
362 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) If the participant is the transferor, the participant is taken to have
warranted that:
(a) the transfer was effected by the participant; and
(b) the transferor was legally entitled or authorised to transfer the
Division 4 financial product.
(3) Subregulation (4) applies if:
(a) the participant is not the transferor; and
(b) the transfer is pursuant to a transaction in relation to which,
or to transactions in relation to each of which, one of the
following conditions is satisfied:
(i) the transaction was entered into in the ordinary course
of trading on a financial market;
(ii) the transaction is, under the operating rules of a market
licensee, described, or to be described, as ‘special’ when
it is reported to the market licensee.
(4) The participant is taken to have warranted that:
(a) the transferor was legally entitled or authorised to transfer the
Division 4 financial product; and
(b) the transfer was effected by the participant; and
(c) the participant was authorised by the transferor to effect the
transfer.
(5) Subregulation (6) applies if:
(a) the participant is not the transferor; and
(b) the transfer is not pursuant to a transaction in relation to
which, or to transactions in relation to each of which, one of
the following conditions is satisfied:
(i) the transaction was entered into in the ordinary course
of trading on a financial market;
(ii) the transaction is, under the operating rules of a market
licensee, described, or to be described, as ‘special’ when
it is reported to the market licensee.
(6) The participant is taken to have warranted that:
(a) the transfer was effected by the participant; and
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 4 financial products effected through prescribed CS facility
Division 4
Regulation 7.11.30
Corporations Regulations 2001 363
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the participant was authorised by the transferor to effect the
transfer.
7.11.30 Indemnities in respect of warranted matters: transfer not
effected by the participant
(1) This regulation applies if:
(a) a participant is taken by regulation 7.11.29 to have
warranted, in relation to a proper ASTC transfer of a
Division 4 financial product, that the transfer was effected by
the participant; and
(b) the transfer was not effected by the participant.
(2) The participant is liable to indemnify each of the following against
any loss or damage arising from the transfer not having been
effected by the participant:
(a) the issuer in relation to the Division 4 financial product;
(b) the transferor;
(c) the transferee;
(d) if a participant acted as the transferee’s agent in the
transfer—that participant;
(e) the prescribed CS facility operated by ASTC;
(f) if TNS Clearing Pty Limited is the counter-party in the
transaction—TNS Clearing Pty Limited;
(g) if Options Clearing House Pty Limited is the counter-party in
the transaction—Options Clearing House Pty Limited.
(3) For this regulation, the effect of regulation 7.11.26 is to be
disregarded in determining whether a person:
(a) was legally entitled or authorised to transfer Division 4
financial products; or
(b) was authorised by another person to effect a transfer of
Division 4 financial products.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 4 Transfer of Division 4 financial products effected through prescribed CS
facility
Regulation 7.11.31
364 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.11.31 Indemnities in respect of warranted matters: transferor not
legally entitled or authorised to transfer Division 4
financial products
(1) This regulation applies if:
(a) a participant is taken by regulation 7.11.29 to have
warranted, in relation to a proper ASTC transfer of a
Division 4 financial product, that the transferor was legally
entitled or authorised to transfer the Division 4 financial
product; and
(b) the transferor was not legally entitled or authorised to
transfer the Division 4 financial product.
(2) The participant is liable to indemnify each of the following against
any loss or damage arising from the transferor not having been
legally entitled or authorised to transfer the Division 4 financial
product:
(a) the issuer in relation to the Division 4 financial product;
(b) the transferee;
(c) if a participant acted as the transferee’s agent in the
transfer—that participant;
(d) the prescribed CS facility operated by ASTC;
(e) if TNS Clearing Pty Limited is the counter-party in the
transaction—TNS Clearing Pty Limited;
(f) if Options Clearing House Pty Limited is the counter-party in
the transaction—Options Clearing House Pty Limited.
(3) For this regulation, the effect of regulation 7.11.26 is to be
disregarded in determining whether a person:
(a) was legally entitled or authorised to transfer Division 4
financial products; or
(b) was authorised by another person to effect a transfer of
Division 4 financial products.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 4 financial products effected through prescribed CS facility
Division 4
Regulation 7.11.32
Corporations Regulations 2001 365
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.11.32 Indemnities in respect of warranted matters: participant not
authorised to effect transfer
(1) This regulation applies if:
(a) a participant is taken by regulation 7.11.29 to have
warranted, in relation to a proper ASTC transfer of a
Division 4 financial product, that the participant was
authorised by the transferor to effect the transfer; and
(b) the participant was not authorised by the transferor to effect
the transfer.
(2) The participant is liable to indemnify each of the following against
any loss or damage arising from the participant not having been
authorised by the transferor to effect the transfer:
(a) the issuer in relation to the Division 4 financial product;
(b) the transferor;
(c) the transferee;
(d) if a participant acted as the transferee’s agent in the
transfer—that participant;
(e) the prescribed CS facility operated by ASTC;
(f) if TNS Clearing Pty Limited is the counter-party in the
transaction—TNS Clearing Pty Limited;
(g) if Options Clearing House Pty Limited is the counter-party in
the transaction—Options Clearing House Pty Limited.
(3) For this regulation, the effect of regulation 7.11.26 is to be
disregarded in determining whether a person:
(a) was legally entitled or authorised to transfer Division 4
financial products; or
(b) was authorised by another person to effect a transfer of
Division 4 financial products.
7.11.33 Joint and several warranties and liabilities
(1) If 2 or more persons are taken to have warranted in the terms
mentioned in subregulation 7.11.29(2), (4) or (6), the persons are
taken to have warranted jointly and severally.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 4 Transfer of Division 4 financial products effected through prescribed CS
facility
Regulation 7.11.34
366 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) If 2 or more persons are liable as mentioned in regulation 7.11.30,
7.11.31 or 7.11.32, the persons are liable jointly and severally.
7.11.34 ASTC entitled to assume its operating rules complied with
(1) This regulation applies if the prescribed CS facility operated by
ASTC assumes without inquiry, in the absence of knowledge to the
contrary, that anything purporting to be done under the ASTC
operating rules in connection with a transfer of a Division 4
financial product has been done in accordance with those rules.
(2) If the prescribed CS facility operated by ASTC assumes, in
reliance on subregulation (1), that a thing was done in accordance
with the ASTC operating rules, the thing is taken to have been
done in accordance with those rules.
(3) If the prescribed CS facility operated by ASTC:
(a) acts on behalf of the issuer in relation to a Division 4
financial product; and
(b) as part of that function assumes, in reliance on
subregulation (1), that a thing was done in accordance with
the ASTC operating rules;
the issuer is also taken to assume, and to be entitled to assume, that
the thing was done in accordance with the ASTC operating rules.
7.11.35 ASTC-regulated transfer not to be registered unless proper
ASTC transfer
(1) The issuer in relation to a Division 4 financial product must not
register, or otherwise give effect to, an ASTC-regulated transfer of
the Division 4 financial product unless the transfer is a proper
ASTC transfer.
(2) Subregulation (1) has effect despite anything in:
(a) the issuer’s constitution; or
(b) a deed relating to debentures; or
(c) the constitution of a registered scheme; or
(d) a deed relating to interests.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 4 financial products effected through prescribed CS facility
Division 4
Regulation 7.11.36
Corporations Regulations 2001 367
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
7.11.36 Issuer not to refuse to register proper ASTC transfer
The issuer in relation to a Division 4 financial product must not:
(a) refuse or fail to register a proper ASTC transfer of the
Division 4 financial product; or
(b) refuse or fail to give effect to a proper ASTC transfer of the
Division 4 financial product.
7.11.37 Determination of who holds Division 4 financial products for
the purposes of meeting
(1) This regulation applies to a meeting of the holders of securities of a
body corporate if some or all of the securities are Division 4
financial products.
(2) The convener of the meeting may determine that all the securities
of the body corporate that are Division 4 financial products at a
specified time before the meeting are taken, for the purposes of the
meeting, to be held by the persons who held them at the specified
time.
(3) The specified time:
(a) must satisfy any applicable requirements of the ASTC
operating rules; but
(b) in any case, must not be more than 48 hours before the
meeting.
(4) The convenor must make a determination:
(a) in accordance with any applicable requirements of the ASTC
operating rules as to the way in which it must be made; but
(b) in any case, before notice of the meeting is given.
(5) The convenor must include particulars of the determination in the
notice of the meeting.
(6) However, a failure to include particulars of the determination in the
notice of the meeting does not invalidate the determination.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 4 Transfer of Division 4 financial products effected through prescribed CS
facility
Regulation 7.11.38
368 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(7) The convenor’s determination has effect accordingly despite
anything in:
(a) the Act; and
(b) these Regulations; and
(c) any other law (written or unwritten) that applies to the
meeting; and
(d) any document that applies to the meeting (for example, the
body corporate’s constitution or any relevant trust deed).
7.11.38 Determination of who holds Division 4 financial products in
class of Division 4 financial products for the purposes of
meeting
(1) This regulation applies to a meeting of the holders of a class of
securities of a body corporate if some or all of the securities in that
class are Division 4 financial products.
(2) The convener of the meeting may determine that all the securities
of the body corporate in the relevant class that are Division 4
financial products at a specified time before the meeting are taken,
for the purposes of the meeting, to be held by the persons who held
them at the specified time.
(3) The specified time:
(a) must satisfy any applicable requirements of the ASTC
operating rules; but
(b) in any case, must not be more than 48 hours before the
meeting.
(4) The convenor must make a determination:
(a) in accordance with any applicable requirements of the ASTC
operating rules as to the way in which it must be made; but
(b) in any case, before notice of the meeting is given.
(5) The convenor must include particulars of the determination in the
notice of the meeting.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Transfer of Division 4 financial products effected through prescribed CS facility
Division 4
Regulation 7.11.39
Corporations Regulations 2001 369
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(6) However, a failure to include particulars of the determination in the
notice of the meeting does not invalidate the determination.
(7) The convenor’s determination has effect accordingly despite
anything in:
(a) the Act; and
(b) these Regulations; and
(c) any other law (written or unwritten) that applies to the
meeting; and
(d) any document that applies to the meeting (for example, the
body corporate’s constitution or a relevant trust deed).
7.11.39 Determination of who holds Division 4 financial products for
the purposes of conferring security benefits
(1) If the ASTC operating rules include provisions relating to the
determination, for the purposes of conferring security benefits, of
who holds or is taken to hold Division 4 financial products at a
particular time, those provisions have effect accordingly despite
anything in:
(a) the Act; and
(b) these Regulations; and
(c) any other law (written or unwritten) that applies to the
conferral; and
(d) any document that applies to the conferral (for example, the
body corporate’s constitution or a relevant trust deed).
(2) In subregulation (1), conferring a security benefit means:
(a) paying or transferring money or property to a person because
the person holds or held a Division 4 financial product; or
(b) issuing securities to a person because the person holds or
held a Division 4 financial product; or
(c) conferring a right on a person because the person holds or
held a Division 4 financial product.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 5 Offences
Regulation 7.11.40
370 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5—Offences
7.11.40 Stamping of broker’s stamp on sufficient transfer
(1) A broker must not stamp with a broker’s stamp a document (a
transfer document) that:
(a) relates to Division 3 securities; and
(b) may be used as a sufficient transfer under this Part;
unless the transfer document relates to a sale or purchase of the
Division 3 securities, in the ordinary course of the broker’s
business, for a consideration of not less than their unencumbered
market value at the time of the sale or purchase.
(2) A person must not stamp a transfer document with a stamp that
purports to be that of the transferor’s broker unless:
(a) the stamp is the stamp of the transferor’s broker; and
(b) apart from paragraph 7.11.17(4)(a), the transferor’s broker is
authorised to execute the document on the transferor’s
behalf; and
(c) the person is:
(i) the transferor’s broker; or
(ii) authorised to stamp the document on the transferor’s
broker’s behalf.
(3) A market licensee must not stamp with a stamp of the market
licensee a document that may be used as a sufficient transfer under
this Part of Division 3 securities unless:
(a) a duly completed Part 1, relating to the Division 3 securities,
has been lodged with the issuer in relation to the Division 3
securities; or
(b) the market licensee holds a duly completed Part 1 that:
(i) bears a certificate that purports to be that of the
transferor’s broker; and
(ii) states that a duly completed Part 1, relating to the
Division 3 securities, has been lodged or will be lodged
with the issuer in relation to the Division 3 securities.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Offences Division 5
Regulation 7.11.41
Corporations Regulations 2001 371
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) A person must not execute a document that:
(a) may be used as a sufficient transfer under regulation 7.11.12
or 7.11.13; and
(b) relates to a transfer of Division 3 securities:
(i) made by way of a sale, gift or exchange of the
Division 3 securities; or
(ii) to or in favour of a person who is not the beneficial
owner of the Division 3 securities.
(5) A person who is not a licensed trustee company, within the
meaning of Chapter 5D of the Act, a Public Trustee of a State or
Territory, or a company listed in Schedule 9 must not knowingly
cause, authorise or permit to be executed a document that:
(a) relates to Division 3 securities; and
(b) may be used as a sufficient transfer under regulation 7.11.12
or 7.11.13;
but is not a sufficient transfer under that regulation.
(6) A person must not knowingly lodge or cause to be lodged with a
company a document that has been:
(a) stamped in contravention of subregulation (1), (2) or (3); or
(b) executed in contravention of subregulation (4);
for the purpose of securing the registration of the transfer of, or the
issue of, Division 3 securities to the transferee named in the
document.
7.11.41 Inclusion of identification codes in proper ASTC transfers
A person must not include a participant’s identification code in a
document that may be used to effect a proper ASTC transfer
unless:
(a) the person:
(i) is the participant; or
(ii) is authorised so to include the identification code by the
participant; and
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 5 Offences
Regulation 7.11.42
372 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) if:
(i) the identification code is so included as the
identification code of the participant effecting the
transfer; and
(ii) the participant is not the transferor;
the participant is, apart from the effect of regulation 7.11.26,
authorised by the transferor to effect the transfer.
7.11.42 Contravention by participant of the ASTC certificate
cancellation provisions relating to use of cancellation
stamps
A participant must not, intentionally or recklessly, contravene the
ASTC certificate cancellation provisions by affixing, or failing to
affix, a cancellation stamp to a certificate or other document of title
to a Division 4 financial product.
Federal Register of Legislative Instruments F2015C00303
Financial services and markets Chapter 7
Title and transfer Part 7.11
Civil liability Division 6
Regulation 7.11.43
Corporations Regulations 2001 373
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 6—Civil liability
7.11.43 Contravention by participant of the ASTC certificate
cancellation provisions
(1) This regulation applies to a person who suffers loss or damage
because of conduct of a participant that was engaged in a
contravention of the ASTC certificate cancellation provisions.
(2) The person may, unless the person was involved in the
contravention, recover the amount of the loss or damage by action
against the participant, whether or not the participant has been
convicted of an offence in respect of the contravention.
(3) An action under subregulation (2) must be begun within 6 years
after the day on which the cause of action arose.
(4) This regulation does not affect a liability that a person has under
any other law.
(5) For section 1310B of the Act, an action under subregulation (2) is
taken to be a proceeding in respect of loss or damage arising out of
a contravention of the Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 7 Financial services and markets
Part 7.12 Miscellaneous
Regulation 7.12.01
374 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 7.12—Miscellaneous
7.12.01 Destruction of records by ASIC
For paragraph 1101D(b) of the Act, the period of possession is 7
years.
Federal Register of Legislative Instruments F2015C00303
Mutual recognition of securities offers Chapter 8
Preliminary Part 8.1
Regulation 8.1.01
Corporations Regulations 2001 375
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 8—Mutual recognition of securities
offers
Part 8.1—Preliminary
8.1.01 Prescribed foreign recognition scheme (Act s 1200A(1))
For the definition of foreign recognition scheme in
subsection 1200A(1) of the Act, the provisions of each of the
following comprises a foreign recognition scheme:
(a) Part 5 of the Securities Act 1978 of New Zealand and the
Securities (Mutual Recognition of Securities Offerings—
Australia) Regulations 2008 of New Zealand;
(b) Subpart 6 of Part 9 of the Financial Markets Conduct Act
2013 of New Zealand and the Financial Markets Conduct
Regulations 2014 of New Zealand.
8.1.02 Prescribed offeror (Act s 1200A(1))
For the definition of offeror of securities in subsection 1200A(1) of
the Act:
(a) an offer of an interest in a managed investment scheme
governed by the laws of New Zealand is prescribed as a kind
of offer; and
(b) for that offer:
(i) if the scheme is a unit trust established under the Unit
Trusts Act 1960 of New Zealand—the offeror is the
manager of the scheme as defined in that Act; or
(ii) if the scheme is a scheme within the meaning of the
Securities Act 1978 of New Zealand—the offeror is the
manager of the scheme as defined in that Act; or
(iii) if the scheme is a managed investment scheme within
the meaning of the Financial Markets Conduct Act 2013
of New Zealand—the offeror is the manager of the
managed investment scheme as defined in that Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 8 Mutual recognition of securities offers
Part 8.1 Preliminary
Regulation 8.1.03
376 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
8.1.03 Prescribed recognised jurisdiction (Act s 1200A(1))
For the definition of recognised jurisdiction in
subsection 1200A(1) of the Act, New Zealand is prescribed.
Federal Register of Legislative Instruments F2015C00303
Mutual recognition of securities offers Chapter 8
Foreign offers that are recognised in this jurisdiction Part 8.2
Recognised offers Division 1
Regulation 8.2.01
Corporations Regulations 2001 377
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 8.2—Foreign offers that are recognised in this
jurisdiction
Division 1—Recognised offers
8.2.01 Prescribed offer (Act s 1200C(4))
For subsection 1200C(4) of the Act, each of the following is a
prescribed offer in relation to New Zealand:
(a) an offer of a security to which Part 2 of the Securities Act
1978 of New Zealand (in accordance with Schedule 4 to the
Financial Markets Conduct Act 2013 of New Zealand)
applies;
(b) an offer of a security for which a disclosure document (as
defined in the Financial Markets Conduct Act 2013 of New
Zealand) must be prepared in accordance with the Financial
Markets Conduct Act 2013 of New Zealand or the Financial
Markets Conduct Regulations 2014 of New Zealand.
Note: For the purpose of Chapter 8 of the Act and Chapter 8 of these
regulations, a security does not include all of the financial products
defined as securities in Part 2 of the Securities Act 1978 of New
Zealand or in the Financial Markets Conduct Act 2013 of New
Zealand—see the definition of securities in section 1200A(1) of the
Act. For example, a security does not include an interest in a
superannuation scheme or a life insurance policy.
8.2.02 Prescribed warning statements (Act s 1200E)
(1) For section 1200E of the Act, the statements set out in
subregulation (1A) are prescribed for a recognised offer made
under the Securities Act 1978 of New Zealand and the Securities
(Mutual Recognition of Securities Offerings—Australia)
Regulations 2008 of New Zealand.
(1A) For subregulation (1) the statements are:
(a) this offer to Australian investors is a recognised offer made
under Australian and New Zealand law. In Australia, this is
Federal Register of Legislative Instruments F2015C00303
Chapter 8 Mutual recognition of securities offers
Part 8.2 Foreign offers that are recognised in this jurisdiction
Division 1 Recognised offers
Regulation 8.2.02
378 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 8 of the Corporations Act 2001 and Regulations. In
New Zealand, this is Part 5 of the Securities Act 1978 of
New Zealand and the Securities (Mutual Recognition of
Securities Offerings—Australia) Regulations 2008 of New
Zealand; and
(b) this offer and the content of the offer document are
principally governed by New Zealand, rather than Australian,
law. In the main, the Securities Act 1978 of New Zealand
and the Securities Regulations 2009 of New Zealand set out
how the offer must be made.
(1B) For section 1200E of the Act, the statements set out in
subregulation (1C) are prescribed for a recognised offer made
under the Financial Markets Conduct Act 2013 of New Zealand
and the Financial Markets Conduct Regulations 2014 of New
Zealand.
(1C) For subregulation (1B) the statements are:
(a) this offer to Australian investors is a recognised offer made
under Australian and New Zealand law. In Australia, this is
Chapter 8 of the Corporations Act 2001 and Regulations. In
New Zealand, this is Subpart 6 of Part 9 of the Financial
Markets Conduct Act 2013 of New Zealand and the Financial
Markets Conduct Regulations 2014 of New Zealand; and
(b) this offer and the content of the offer document are
principally governed by New Zealand, rather than Australian,
law. In the main, the Financial Markets Conduct Act 2013 of
New Zealand and the Financial Markets Conduct
Regulations 2014 of New Zealand set out how the offer must
be made.
(1D) For section 1200E of the Act, the following statements are
prescribed for a recognised offer made under the New Zealand
legislation mentioned in subregulation (1) or (1B):
(a) there are differences in how securities and financial products
are regulated under New Zealand, as opposed to Australian,
law. For example, the disclosure of fees for managed
investment schemes is different under New Zealand law;
Federal Register of Legislative Instruments F2015C00303
Mutual recognition of securities offers Chapter 8
Foreign offers that are recognised in this jurisdiction Part 8.2
Recognised offers Division 1
Regulation 8.2.02
Corporations Regulations 2001 379
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(b) the rights, remedies and compensation arrangements
available to Australian investors in New Zealand securities
and financial products may differ from the rights, remedies
and compensation arrangements for Australian securities and
financial products;
(c) both the Australian and New Zealand securities regulators
have enforcement responsibilities in relation to this offer. If
you need to make a complaint about this offer, please contact
the Australian Securities and Investments Commission
(ASIC). The Australian and New Zealand regulators will
work together to settle your complaint;
(d) the taxation treatment of New Zealand securities and
financial products is not the same as that for Australian
securities and products;
(e) if you are uncertain about whether this investment is
appropriate for you, you should seek the advice of an
appropriately qualified financial advisor.
(2) For paragraph 1200E(a) of the Act, the following additional
warning statements are prescribed for offers involving the payment
of proceeds, from securities or financial products, that are not
Australian dollars:
(a) The offer may involve a currency exchange risk. The
currency for the security or financial product is in dollars that
are not Australian dollars. The value of the security or
financial product will go up and down according to changes
in the exchange rate between those dollars and Australian
dollars. These changes may be significant;
(b) If you receive any payments in relation to the security or
financial product that are not in Australian dollars, you may
incur significant fees in having the funds credited to a bank
account in Australia in Australian dollars.
(3) For paragraph 1200E(a) of the Act, the following additional
warning statement is prescribed for offers involving securities and
financial products, able to be traded on a financial market:
If the security or financial product is able to be traded on a
financial market and you wish to trade the security or financial
Federal Register of Legislative Instruments F2015C00303
Chapter 8 Mutual recognition of securities offers
Part 8.2 Foreign offers that are recognised in this jurisdiction
Division 1 Recognised offers
Regulation 8.2.03
380 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
product through that market, you will have to make arrangements
for a participant in that market to sell the security or financial
product on your behalf. If the financial market is a foreign market
that is not licensed in Australia (such as a securities market
operated by the New Zealand Exchange Limited (NZX)) the way
in which the market operates, the regulation of participants in that
market and the information available to you about the security or
financial product and trading may differ from Australian licensed
markets.
8.2.03 Prescribed details to be given in warning statements (Act s
1200E(b))
For paragraph 1200E(b) of the Act, if a matter is referred to in an
item of the Table, the details in the item are prescribed for the
matter.
Item Matter Details to be provided
1 An offer to invest in a
managed investment scheme
is subject to an obligation to
provide for a dispute
resolution process
Details of the dispute resolution
process available in relation to
that offer
2 An offer is subject to
continuous disclosure
obligations
Details of the availability of the
continuous disclosure notices
that relate to that offer
3 An offer of a product that is
currently listed or is to be
listed on a financial market
Details of the financial market
on which the product is listed, or
on which it is proposed to be
listed
8.2.04 Prescribed home regulators (Act s 1200G(13) and (14))
For subsections 1200G(13) and (14) of the Act:
(a) an authority referred to in an item of the Table is prescribed
as a home regulator for New Zealand; and
Federal Register of Legislative Instruments F2015C00303
Mutual recognition of securities offers Chapter 8
Foreign offers that are recognised in this jurisdiction Part 8.2
Recognised offers Division 1
Regulation 8.2.04
Corporations Regulations 2001 381
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(b) each matter listed in the item in relation to the authority is
prescribed as a matter in relation to which the authority is to
be regarded as the home regulator.
Item Authority Matter(s) in relation to which
the authority is to be regarded
as the home regulator
1 Registrar of Financial
Service Providers of New
Zealand
Each matter mentioned in:
(a) items 1 to 4 of the Table at
subsection 1200G(9) of the
Act; or
(b) item 4 of the Table at
subsection 1200N(1) of the
Act
2 Financial Markets Authority
of New Zealand
Each matter mentioned in
items 5 to 7 of the Table at
subsection 1200G(9) of the Act
Federal Register of Legislative Instruments F2015C00303
Chapter 8 Mutual recognition of securities offers
Part 8.2 Foreign offers that are recognised in this jurisdiction
Division 4 Modification of the Act in relation to its application to recognised offers for
interests in New Zealand managed investment schemes (Act s 1020G, 1200M)
Regulation 8.4.01
382 Corporations Regulations 2001
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Division 4—Modification of the Act in relation to its
application to recognised offers for interests in
New Zealand managed investment schemes (Act s
1020G, 1200M)
8.4.01 Modification of Part 7.9 of the Act—New Zealand offer
documents replace Product Disclosure Statements
For section 1020G of the Act, Part 7.9 of the Act is modified in its
application in relation to managed investment schemes as set out in
Part 18 of Schedule 10A.
8.4.02 Modification of Part 6D.2 of the Act and Part 7.9 of the Act—
certain disclosure obligations not to apply
For section 1200M of the Act, Part 6D.2 of the Act and Part 7.9 of
the Act are modified in relation to their application in respect of a
recognised offer or a proposed offer of securities that may become
a recognised offer as set out in Part 1 of Schedule 10AA.
Federal Register of Legislative Instruments F2015C00303
Prepared by the Office of Parliamentary Counsel, Canberra
Corporations Regulations 2001
Statutory Rules No. 193, 2001
made under the
Corporations Act 2001
Compilation No. 113
Compilation date: 31 March 2015
Includes amendments up to: SLI No. 39, 2015
Registered: 9 April 2015
This compilation is in 7 volumes
Volume 1: regulations 1.0.01–6D.5.02
Volume 2: regulations 7.1.02–7.6.08E
Volume 3: regulations 7.7.01–8.4.02
Volume 4: regulations 9.1.01–12.9.03
Volume 5: Schedules 1, 2 and 2A
Volume 6: Schedules 3–12
Volume 7: Endnotes
Each volume has its own contents
Federal Register of Legislative Instruments F2015C00303
About this compilation
This compilation
This is a compilation of the Corporations Regulations 2001 that shows the text
of the law as amended and in force on 31 March 2015 (the compilation date).
This compilation was prepared on 31 March 2015.
The notes at the end of this compilation (the endnotes) include information
about amending laws and the amendment history of provisions of the compiled
law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the
compiled law. Any uncommenced amendments affecting the law are accessible
on ComLaw (www.comlaw.gov.au). The details of amendments made up to, but
not commenced at, the compilation date are underlined in the endnotes. For
more information on any uncommenced amendments, see the series page on
ComLaw for the compiled law.
Application, saving and transitional provisions for provisions and
amendments
If the operation of a provision or amendment of the compiled law is affected by
an application, saving or transitional provision that is not included in this
compilation, details are included in the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as
modified but the modification does not amend the text of the law. Accordingly,
this compilation does not show the text of the compiled law as modified. For
more information on any modifications, see the series page on ComLaw for the
compiled law.
Self-repealing provisions
If a provision of the compiled law has been repealed in accordance with a
provision of the law, details are included in the endnotes.
Federal Register of Legislative Instruments F2015C00303
Corporations Regulations 2001 i
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Contents
Federal Register of Legislative Instruments F2015C00303
ii Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 1—List of forms in Schedule 2 1
Schedule 2—Forms 7
Form 314 12
Form 501 14
Form 502 16
Form 503 18
Form 509A 19
Form 509B 20
Form 509C 21
Form 509E 22
Form 509H 23
Form 521 28
Form 5249 29
Form 527 31
Form 529A 34
Form 529B 35
Form 530 36
Form 531A 37
Form 531B 38
Form 531C 39
Form 532 40
Form 535 41
Form 536 43
Form 537 45
Federal Register of Legislative Instruments F2015C00303
Corporations Regulations 2001 iii
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Form 538 46
Form 539 48
Form 541 50
Form 542 53
Form 543 54
Form 544 55
Form 547 57
Form 548 58
Form 549 59
Form 550 60
Form 551 61
Form 552 63
Form 553 64
Form 701 65
Form 719 79
Form 719A 81
Form 719B 83
Form 720 85
Form 721 87
Form 905 88
Form 910 91
Schedule 2A—Forms of transfer of Division 3
securities 94
Form 1 94
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iv Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 2 96
Form 3 98
Form 4 100
Form 5 101
Form 6 103
Form 7 105
Form 8 107
Form 9 108
Form 10 109
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List of forms in Schedule 2 Schedule 1
Corporations Regulations 2001 1
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Schedule 1—List of forms in Schedule 2 (regulation 1.0.03)
Column 1 Column 2 Column 3 Column 4
Item
Provision of the Act or the
Regulations Description of form
No. of
form
Chapter 1 Introductory
1 Regulation 1.0.16 Verification or
certification of a
document
911
1A Regulation 1.0.21 Cover page for office
copy of a court order
105
2 Subsection 117(2)
Subsection 163(3)
Subsection 254X(2)
Subsection 601BC(2)
Certification of
compliance with stamp
duty law
207Z
3 Subparagraph 206F(1)(b)(i) Notice to demonstrate
why disqualification
should not occur
5249
4 Subsection 206F(3) Notice of disqualification
from managing
corporations
587
Chapter 3 Internal administration
23A Section 250P Extension of time for
holding AGM
2501
26 Paragraph 263(2)(b) Notification of further
issue of debentures in a
series
310
30 Paragraph 324(2)(e) Return of members of
firm of auditors
314
31 Paragraph 319(5)(a)
Subsections 324(1) & (2)
Subsections 327(4) & (15)
Paragraph 329(11)(c)
Section 330
Notice of resignation or
removal of auditor
315
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Schedule 1 List of forms in Schedule 2
2 Corporations Regulations 2001
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Column 1 Column 2 Column 3 Column 4
Item
Provision of the Act or the
Regulations Description of form
No. of
form
Chapter 4 Various corporations
Chapter 5 External administration
43 Subsection 414(2) Notice to dissenting
shareholder
501
44 Paragraph 414(9)(a) Notice to remaining
shareholder
502
44A Subsection 419A(3) Notice of controller’s
intention not to exercise
property rights
503
51A Subsection 438C(3) Notice to deliver books
of company to the
administrator
509A
51B Subsection 443B(3) Notice of administrator’s
intention not to exercise
property rights
509B
51C Paragraph 445F(2)(a) Notice of meeting of
creditors to vary or
terminate deed of
company arrangement
509C
51E Paragraph 450B(a) Notice to creditors of
execution of a deed of
company arrangement
509E
51H Paragraph 459E(2)(e) Creditor’s statutory
demand for payment of
debt
509H
61 Subsections 494(1) & (2) Declaration of solvency 520
62 Subsection 496(2)
Subregulation 5.6.12(2)
Notice of meeting of
creditors under
section 496
521
68 Paragraph 568(8)(a) Application requiring
liquidator to decide
whether to disclaim
property
527
69 Subsection 601AA(2) De-registration—
voluntary
6010
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List of forms in Schedule 2 Schedule 1
Corporations Regulations 2001 3
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Column 1 Column 2 Column 3 Column 4
Item
Provision of the Act or the
Regulations Description of form
No. of
form
71 Subregulation 5.6.12(2) Notice of meeting 529
71A Paragraph 5.6.12(2)(aa) Notice of first meeting of
creditors of company
under administration
529A
71B Subsection 449C(5) Notice of meeting of
creditors to ratify
appointment of
administrator
529B
72 Regulation 5.6.13 Statement in writing of
posting of notice of
meeting
530
73 Paragraph 5.6.27(2)(a) List of persons present at
meeting of members or
contributories
531A
73A Paragraph 5.6.27(2)(b) List of persons present at
meeting of creditors or
debenture holders
531B
73B Paragraph 5.6.27(2)(c) List of persons present at
meeting of committee of
inspection or committee
of creditors
531C
74 Regulation 5.6.29 Appointment of proxy 532
75 Subregulation 5.6.39(3) Notice to submit
particulars of debt or
claim
533
76 Subregulation 5.6.48(3) Notice inviting formal
proof of debt or claim
534
77 Subregulation 5.6.49(2) Formal proof of debt or
claim (General form)
535
78 Subregulation 5.6.49(2) Formal proof of debt or
claim on behalf of
employees
536
79 Subregulation 5.6.54(1) Notice of rejection of
formal proof of debt or
claim
537
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Schedule 1 List of forms in Schedule 2
4 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Column 1 Column 2 Column 3 Column 4
Item
Provision of the Act or the
Regulations Description of form
No. of
form
80 Regulation 5.6.58 Provisional list of
contributories
538
81 Subregulation 5.6.59(1) Notice to contributories
of appointment to settle
list of contributories
539
83 Subregulation 5.6.60(2) Certificate of liquidator
of final settlement of list
of contributories
541
84 Subregulation 5.6.61(1) Provisional
supplementary list of
contributories
542
85 Subregulation 5.6.61(1) Certificate of liquidator
of settlement of
supplementary list of
contributories
543
86 Subregulation 5.6.62(4) Notice to contributory of
final settlement of list or
supplementary list of
contributories and of
inclusion in list
544
88 Subregulation 5.6.65(1) Notice of intention to
declare a dividend
546
89 Subregulation 5.6.65(1) Notice to creditor or
person claiming to be a
creditor of intention to
declare a dividend
547
90 Subregulation 5.6.65(1) Notice to creditor or
person claiming to be a
creditor of intention to
declare a final dividend
548
91 Subregulation 5.6.67(3) Notice of declaration of
dividend
549
92 Regulation 5.6.70 Notice to liquidator to
pay dividend to a person
named
550
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List of forms in Schedule 2 Schedule 1
Corporations Regulations 2001 5
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Column 1 Column 2 Column 3 Column 4
Item
Provision of the Act or the
Regulations Description of form
No. of
form
93 Subregulation 5.6.71(1) Schedule of
contributories or other
persons to whom a
distribution of surplus is
to be paid
551
94 Subregulation 5.6.71(2) Notice of distribution of
surplus to contributories
or other persons
552
95 Regulation 5.6.72 Authority to liquidator to
pay distribution of
surplus to a person
named
553
Chapter 6 Acquisition of shares
96 Subsection 671B(4) Notice of initial
substantial holder
603
97 Subsection 671B(4) Notice of change of
interests of substantial
holder
604
98 Subsection 671B(4) Notice of ceasing to be a
substantial holder
605
Chapter 7 Financial services and markets
99 Subregulation 7.6.08D(3)
Subregulation 7.6.08E(3)
Data on intermediated
business with
APRA-authorised
general insurers, Lloyd’s
underwriters and
unauthorised foreign
insurers
701
Chapter 9 Miscellaneous
150 Subsection 1287(1) Particulars of cessation
or change relating to
person registered as an
auditor under
subsection 1287(1)
905
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Schedule 1 List of forms in Schedule 2
6 Corporations Regulations 2001
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Column 1 Column 2 Column 3 Column 4
Item
Provision of the Act or the
Regulations Description of form
No. of
form
154A Subsection 1302(4) Notice of change of
address
909
155 Section 1313 Penalty notice 910
Federal Register of Legislative Instruments F2015C00303
Forms Schedule 2
Corporations Regulations 2001 7
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Schedule 2—Forms (regulations 1.0.02 and 1.0.03)
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Schedule 2 Forms
8 Corporations Regulations 2001
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Forms Schedule 2
Corporations Regulations 2001 9
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Schedule 2 Forms
10 Corporations Regulations 2001
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Forms Schedule 2
Corporations Regulations 2001 11
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Schedule 2 Forms
12 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 314 (paragraph 324(2)(e))
Corporations Act 2001
RETURN OF MEMBERS OF FIRM OF AUDITORS
Name of firm:
Address of firm 1 :
The full names and addresses of all of the members of the firm are:
Surname First or given names Residential address
Dated
Signature 2
1. Give the address of each place of business of the firm. If there is more than
one place of business, indicate the principal place of business.
2. To be signed by one of the members of the firm.
DIRECTION
Requirements relating to annexures are set out in regulation 1.0.06.
NOTE
The completion of this form does not relieve members of the firm from any
obligation under the law relating to business names.
Federal Register of Legislative Instruments F2015C00303
Forms Schedule 2
Corporations Regulations 2001 13
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Schedule 2 Forms
14 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 501 (subsection 414(2))
Australian Company Number:
Corporations Act 2001
NOTICE TO DISSENTING SHAREHOLDER
(Note that in this form “dissenting shareholder” means a shareholder who has
not assented to the scheme or contract mentioned in paragraph B, or who has
failed or refused to transfer his or her shares to the transferee in accordance
with that scheme or contract)
1. To
of
A. (insert name of person giving notice, in this form called “the
transferee”) The transferee on (insert date) made
an offer to the holders of *shares in Limited/ *shares included in class of shares
in Limited for the transfer of those shares
to the transferee, not being an offer made under a scheme or
contract arising out of the making of takeover offers or a takeover
announcement under the law relating to the acquisition of shares;
and
B. the scheme or contract involving the transfer of those shares to
the transferee was on or before (insert date) approved
by the holders of not less than nine-tenths in nominal value of the
shares *in that company/*included in that class of shares, other
than shares already held at the date of the offer by, or by a
nominee for, the transferee (or, if the transferee is a company, its
subsidiary); and
C. you are a dissenting shareholder of shares *in the company/ *included in that class of shares.
2. The transferee gives you notice under subsection 414(2) that the
transferee desires to acquire those shares held by you.
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Forms Schedule 2
Corporations Regulations 2001 15
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3. You are entitled under subsection 414(7) to require the transferee, by
a demand in writing served on the transferee within one month after
the date on which this notice is given, to furnish to you a statement in
writing of the names and addresses of all other dissenting
shareholders shown in the register of members.
*4. You are entitled not later than the expiration of one month after the
date on which this notice is given or 14 days after the date on which a
statement is supplied to you under subsection 414(7), whichever is
the later, to elect, by notice to the transferee, which of the alternative
terms offered to the approving shareholders under the scheme or
contract you prefer. The alternative terms are as follows:
5. Unless, on application made by you within one month after the date
on which this notice is given or within 14 days after a statement is
supplied to you under subsection 414(7), the Federal Court of
Australia or the Supreme Court of (State or Territory) orders
otherwise, the transferee will be entitled and bound subject to
subsection 414(7) to acquire your shares:
(a) on the terms on which under the scheme or contract the shares of
the approving shareholders are to be transferred to the transferee;
or
(b) if alternative terms were offered — on the terms for which you
have elected; or
(c) if you have not so elected — on whichever of those terms the
transferee determines unless the Court otherwise orders.
Dated
(signature of transferee) *Omit if not applicable
DIRECTION
Requirements relating to annexures are set out in regulation 1.0.06.
Federal Register of Legislative Instruments F2015C00303
Schedule 2 Forms
16 Corporations Regulations 2001
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Form 502 (subsection 414(9)(a))
Australian Company Number:
Corporations Act 2001
NOTICE TO REMAINING SHAREHOLDER
1. To
of
A. (insert name of person giving notice, in this form called “the
transferee”) The transferee in (insert date) made offers to the holders
of shares *in Limited/*included in class of shares
in Limited for the transfer of those shares to the
transferee, not being offers made under a scheme or contract arising out
of the making of takeover offers or a takeover announcement under the
law relating to the acquisition of shares; and
B. under the scheme or contract the transferee became an (insert date)
beneficially entitled to shares in that company which together with any
other shares in that company to which the transferee, or the transferee
and any corporation related to the transferee, is beneficially entitled,
comprise or include nine-tenths in nominal value of the shares *in Limited/*included in that class of shares
in Limited; and
C. you are the holder of remaining shares *in that company/*included in
that class of shares in that company and have not assented to the
scheme or contract or been given notice in respect of those shares by
the transferee under subsection 414(2).
2. The transferee gives you notice under subsection 414(9) that under that
scheme or contract the transferee on (insert date) become beneficially
entitled to shares in Limited and those shares together
with any other shares in that company to which the transferee, or the
transferee and any corporation related to the transferee, is beneficially
entitled, comprise or included nine-tenths in nominal value of the shares (in
that company/*included in that class of shares in that company.
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Corporations Regulations 2001 17
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3. You are entitled under subsection 414(9) within 3 months after the date on
which this notice is given by notice to the transferee to require the
transferee to acquire your shares. *3. You are entitled under subsection 414(9) within 3 months after the date on
which this notice is given to elect by notice to the transferee which of the
alternative terms offered to the approving shareholders under the scheme or
contract you will accept. The alternative terms are as follows:
4. If you require the transferee to acquire the shares held by you the transferee
will be entitled and bound to acquire those shares:
(a) on the terms that under the scheme or contract were offered to the
approving shareholders; or
(b) if alternative terms were offered—on the terms for which you have
elected;
(c) if you do not so elect
(i) on whichever of the terms the transferee determines or
(ii) on such other terms as are agreed or as the Federal Court of
Australia or the Supreme Court of` on the
application of the transferee or of yourself orders.
Dated
(signature of transferee) *Omit if not applicable
DIRECTION
Requirements relating to annexures are set out in regulation 1.0.06.
Federal Register of Legislative Instruments F2015C00303
Schedule 2 Forms
18 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 503 (subsection 419A(3))
Corporations Act 2001
NOTICE OF CONTROLLER’S INTENTION NOT TO EXERCISE
PROPERTY RIGHTS
To: (name), of (address) , the *owner/*lessor of property (“the specified property”) being:
(name and description of property including, if appropriate, relevant reference
numbers and account numbers identifying contracts such as leasing
arrangements in relation to that property)
I (name), of (address), the controller of
property of (name of corporation) (“the corporation”) give you notice that I do
not propose to exercise rights in relation to the specified property as controller
of the specified property, whether on behalf of the corporation or anyone else.
Dated
(Controller’s signature)
*Delete if not applicable
NOTES:
1. Under subsection 419A(4) the controller is not liable for rent or other
amounts by the corporation in relation to the specified property while
this notice in force, but the notice does not affect a liability of the
corporation.
2 Under subsection 419A(5), this notice ceases to have effect if the
controller:
(a) revokes the notice, by writing to the owner/lessor; or
(b) exercises or purports to exercise a right in relation to the specified
property the controller.
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Forms Schedule 2
Corporations Regulations 2001 19
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Form 509A (subsection 438C(3))
A.C.N. or A.R.B.N.
Corporations Act 2001
NOTICE TO DELIVER BOOKS OF COMPANY TO THE
ADMINISTRATOR
Limited (administrator appointed)
To: (name) of (address)
1. I (name), of (address), the administrator of the company, give you
notice under subsection 438C(3) that I require you to deliver to me, at
the above address, within (insert number being not less than 3)
business days of the date of this notice, the books specified in the
Schedule, being books of the company, that are in your possession.
2. Note that under subsection 438C(5), you must comply with this
notice except so far as you are entitled as against the company and
the administrator, to retain possession of the books.
SCHEDULE
(insert specified books)
Dated
(administrator’s signature)
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Schedule 2 Forms
20 Corporations Regulations 2001
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Form 509B (subsection 443B(3))
Corporations Act 2001
NOTICE OF ADMINISTRATOR’S INTENTION NOT TO EXERCISE
PROPERTY RIGHTS
Limited (administrator appointed)
To: (name), of (address), the *owner/*lessor of property (“the
specified property”) being:
(name and description of property, including, if appropriate, relevant reference
numbers and account numbers identifying contracts such as leasing
arrangements in relation to that property)
I (name), of (address) , the administrator of (name
of company) (“the company”) give you notice that I do not propose to exercise
rights in relation to the specified property.
Dated
(administrator’s signature)
*Delete if not applicable
NOTES
1. Under subsection 443B(4), the administrator is not liable for rent or
other amounts payable by the company in relation to the specified
property while this notice is in force, but the notice does not affect a
liability of the company.
2. Under subsection 443B(5), this notice ceases to have effect if:
(a) the administrator revokes the notice, by writing to the owner/
lessor; or
(b) the company exercises or purports to exercise a right in relation to
the specified property.
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Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 509C (paragraph 445F(2)(a))
A.C.N. or A.R.B.N.
Corporations Act 2001
NOTICE OF MEETING OF CREDITORS TO VARY OR TERMINATE
DEED OF COMPANY ARRANGEMENT
Limited (subject to deed of company arrangement)
1. Notice is given that a meeting of the creditors of the company will be
held at (insert address and place of meeting) on (insert date) at
(insert time) *a.m./*p.m.
2. The purpose of the meeting is to consider and vote on the following
resolutions:
(Set out each resolution under section 445A or paragraph 445C(b)
that the administrator of the deed of company arrangement proposes
to be voted on at the meeting or, as the case may be, that creditors, in
a request made under paragraph 445F(1)(b), have proposed to be
voted on at the meeting.)
Dated
(signature of administrator) *Delete if not applicable
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Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 509E (paragraph 450B(a))
Corporations Act 2001
NOTICE TO CREDITORS OF EXECUTION OF A DEED OF COMPANY
ARRANGEMENT
Limited (subject to deed of company arrangement)
*To (name) of (address)
*To creditors of the company
1. Notice is given under section 450B that the company executed a deed
of arrangement on (insert date).
2. A copy of the deed may be inspected at (insert address).
Dated
(Signature of administrator of the
deed of company arrangement) *Delete if not applicable
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Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 509H (paragraph 459E(2)(e))
Corporations Act 2001
CREDITOR’S STATUTORY DEMAND FOR PAYMENT OF DEBT
To (name and A.C.N. or A.R.B.N. of debtor company) of (address of the
company’s registered office)
1. The company owes (name) of (address) (“the creditor”) *the amount of $(insert amount), being the amount of the debt described in
the Schedule. *the amount of $(insert total amount), being the total of the amounts of the
debts described in the Schedule.
*2. The amount is due and payable by the company.
*2. Attached is the affidavit of (insert name of deponent of the affidavit), dated
(insert date of affidavit), verifying that the amount is due and payable by the
company
3. The creditor requires the company, within 21 days after service on the
company of this demand:
(a) to pay to the creditor the *amount of the debt/*total of the amounts of
the debts; or
(b) to secure or compound for the *amount of the debt/*total of the amounts
of the debts, to the creditor’s reasonable satisfaction.
4. The creditor may rely on a failure to comply with this demand within the
period for compliance set out in subsection 459F(2) as grounds for an
application to a court having jurisdiction under the Corporations Act 2001
for the winding up of the company.
5. Section 459G of the Corporations Act 2001 provides that a company served
with a demand may apply to a court having jurisdiction under the
Corporations Act 2001 for an order setting the demand aside. An
application must be made within 21 days after the demand is served and,
within the same period:
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(a) an affidavit supporting the application must be filed with the court; and
(b) a copy of the application and a copy of the affidavit must be served on
the person who served the demand.
A failure to respond to a statutory demand can have very serious
consequences for a company. In particular, it may result in the
company being placed in liquidation and control of the company
passing to the liquidator of the company.
6. The address of the creditor for service of copies of any application and
affidavit is (insert the address for service of the documents in the State or
Territory in which the demand is served on the company, being, if solicitors
are acting for the creditor, the address of the solicitors).
SCHEDULE
Description of the debt Amount of the debt
(indicate if it is a judgment debt,
giving the name of the court
and the date of the order)
*Total Amount
Dated:
signed:
Print name: capacity:
Corporation or partnership name (if applicable):
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Corporations Regulations 2001 25
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
NOTES:
1. The form must be signed by the creditor or the creditor’s solicitor. It may be
signed on behalf of a partnership by a partner, and on behalf of a
corporation by a director or by the secretary or an executive officer of the
corporation.
2. The amount of the debt or, if there is more than one debt, the total of the
amounts of the debts, must exceed the statutory minimum of $2,000.
3. Unless the debt, or each of the debts, is a judgment debt, the demand must
be accompanied by an affidavit that:
(a) verifies that the debt, or the total of the amounts of the debts, is due and
payable by the company; and
(b) complies with the rules.
4. A person may make a demand relating to a debt that is owed to the person
as assignee.
5. This form was amended in 2006 as part of amendments of the Corporations
Regulations 2001. For the period of 12 months after the commencement of
those amendments a person may comply with paragraph 459E(2)(e) of the
Corporations Act 2001 in relation to a statutory demand for payment of
debt by using:
(a) the version of this form that was in force immediately before the
commencement of the amendments; or
(b) this version of the form.
*Omit if inapplicable
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Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 521 (subsection 496(2), subregulation 5.6.12(6))
Corporations Act 2001
NOTICE OF MEETING OF CREDITORS UNDER SECTION 496
Limited
I, (insert name) of insert address)
give notice that, under subsection 496(1), a meeting of the creditors of the
company will be held at (insert place of meeting) on (insert date
of meeting) at *a.m./p.m.
The winding up of the company commenced on and I was
appointed liquidator by resolution of the members of the company. As the
directors declared that the company would be able to pay its debts in full within
a period not exceeding 12 months after the commencement of the winding up,
the liquidation is proceeding as a members’ voluntary winding up.
A list of creditors prepared in accordance with subsection 496(2) is annexed.
I have formed the opinion that the company will not be able to pay or provide
for the payment of its debts in full within that period and this meeting is
summoned in order that the creditors may, if they so wish, exercise their right
under subsection 496(5) to appoint some person other than myself to be the
liquidate of the company for the purpose of winding up the affairs and
distributing the property of the company.
A statement of the assets and liabilities of the company will be laid before the
meeting.
Dated
(signature of liquidator)
*Omit if not applicable
DIRECTION
Requirements relating to annexures are set out in regulation 1.0.06.
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Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 5249
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Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 527 (paragraph 568(8)(a))
Australian Company Number:
Corporations Act 2001
APPLICATION REQUIRING LIQUIDATOR TO DECIDE WHETHER TO
DISCLAIM PROPERTY
Limited
To (insert name), the liquidator of the company.
Under paragraph 568(8)(a), application is made to you by (full name, address
and occupation of applicant) requiring you to decide whether you will disclaim
the property described in the Schedule to this notice or not.
The applicant has the following interest in the property:
SCHEDULE
Dated
(signature of applicant)
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34 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 529A (subregulation 5.6.12(6))
Corporations Act 2001
NOTICE OF FIRST MEETING OF CREDITORS OF COMPANY UNDER
ADMINISTRATION
Limited (administrator appointed)
1. On (insert date) *the company under section 436A *The liquidator/provisional liquidator of the company under section 436B *a chargee of property of the company under section 436C appointed (insert
name) of (insert address) as the administrator of the company.
2. Notice is now given that a meeting of the creditors of the company will be
held at (insert address and place of meeting) on (insert date) at (insert time) *a.m./*p.m.
3. The purpose of the meeting is to determine:
(a) whether to appoint a committee of creditors; and
(b) if so, who are to be the committee’s members.
4. At the meeting, creditors may also, by resolution:
(a) remove the administrator from office; and
(b) appoint someone else as administrator of the company.
*5. Details of the instrument under the terms of which the administrator was
appointed are:
(a) date of the instrument: (insert date)
(b) nature of instrument: (insert type of instrument, eg mortgage)
(c) place of registration: (insert, if applicable)
(d) registered charge number: (insert, if applicable)
Dated
(administrator’s signature)
*Delete if not applicable
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Corporations Regulations 2001 35
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 529B (subsection 449C(5))
Corporations Act 2001
NOTICE OF FIRST MEETING OF CREDITORS TO RATIFY
APPOINTMENT OF ADMINISTRATOR
Limited (administrator appointed)
1. On (insert date) *the company under section 449C(1) and subparagraph 449C(2)(b)(i), *the liquidator/provisional liquidator of the company under
section 449C(2)(b)(ii), *a chargee of property of the company, under subsection 449C(1) and
subparagraph 449C(2)(b)(iii),
appointed (insert name) of (insert address) as the administrator of the
company in place of the previous administrator of the company.
2. The new administrator was appointed because the previous administrator
(here set out the applicable circumstances under paragraph 449C(1)(a), (b)
or (c), as the case may be).
3. Notice is now given that a meeting of the creditors of the company will be
held at (insert address and place of meeting) on (insert date) at (insert time) *a.m./*p.m.
4. The purpose of the meeting is:
(a) to determine whether to remove the person appointed from office; and
(b) if so, to appoint someone else as administrator of the company.
*5. Details of the instrument under the terms of which the previous
administrator was appointed are:
(a) date of the instrument: (insert date)
(b) nature of instrument: (insert type of instrument, eg mortgage)
(c) place of registration: (insert, if applicable)
(d) registered charge number: (insert, if applicable)
Dated
(signature of convenor of the meeting) *Delete if not applicable
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Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 530 (regulation 5.6.13)
A.C.N. or A.R.B.N.:
Corporations Law
STATEMENT IN WRITING OF POSTING OF NOTICE OF MEETING
Limited
I (name) of (address) state:
1. on (date) a notice of the time and place of the meeting (insert a description
of the meeting) in the form of the annexure marked “A” (see note below)
was sent by prepaid post to each person appearing in the books of the
company, or otherwise known to *me/*the convener of the meeting, as a
creditor/*contributory/ *member/*debenture holder;
*2. the notices were addressed to the creditors according to their names and
addresses appearing in the books of the company or to their last known
addresses;
*2 the notices were addressed to the contributories according to their names
and addresses appearing in the books of the company or to their last known
addresses;
*2 the notices were addressed to the debenture holders according to their
names and addresses appearing in the books of the company or to their last
known addresses;
*3 the persons notified and their addresses specified in the notices sent to them
are *set out in the annexed list (see note below) / *identifiable by reference
to the books of the company.
Signature
* Omit if inapplicable.
Note: Requirements relating to annexures are set out in regulation 1.0.06.
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Corporations Regulations 2001 37
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 531A (paragraph 5.6.27(2)(a))
Corporations Regulations
A.C.N. or A.R.B.N.:
Corporations Act 2001
LIST OF PERSONS PRESENT AT MEETING OF: *MEMBERS/*CONTRIBUTORIES
Limited
Meeting held at (place of meeting) on (date).
No. Name Represented by *Number of
shares
*Number of
votes
(Signature of
person attending)
(NOTE: If a joint meeting of creditors and members is held, both Form 531A
and 531B should be completed)
*Delete if not applicable
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Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 531B (paragraph 5.6.27(2)(b))
Corporations Regulations
A.C.N. or A.R.B.N.:
Corporations Act 2001
LIST OF PERSONS PRESENT AT MEETING OF: *CREDITORS/*ELIGIBLE EMPLOYEE CREDITORS/*DEBENTURE
HOLDERS
Limited
Meeting held at (place of meeting) on (date).
No. Name Represented
by
(signature of
person
attending)
Amount of
proof
lodged
or
Amount of
debentures
held
Nature of
any
security
Value of
any
security, as
estimated
by the
creditor
**Balance
of
creditor’s
debt after
deducting
the value of
the security
(NOTE: If a joint meeting of creditors and members is held, both Form 531A
and 531B should be completed)
* Delete if not applicable
**Do not complete in the case of a meeting convened under Part 5.3A of the
Corporations Act 2001
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Form 531C (paragraph 5.6.27(2)(c))
Corporations Regulations
A.C.N. or A.R.B.N.
Corporations Act 2001
LIST OF PERSONS PRESENT AT MEETING OF: *COMMITTEE OF
INSPECTION/*COMMITTEE OF CREDITORS
Limited
Meeting held at (place of meeting) on (date).
No. Name Represented by
(Signature of person
attending)
* Delete if not applicable
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40 Corporations Regulations 2001
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Form 532 (regulation 5.6.29)
A.C.N. or A.R.B.N.
Corporations Act 2001
APPOINTMENT OF PROXY
*I/*We (if a firm, strike out “I” and set out the full name of the firm) of
(address), a creditor/*contributory/ *debenture holder/*member of
Limited, appoint (name, address and description of the person
appointed) or in his or her absence as *my/*our *general/*special proxy to vote
at the *meeting of *creditors/*contributories*debenture holders/*members/*joint
meeting of members and creditors to be held on (date), or at any adjournment of
that meeting (if a special proxy add the words “to vote for” or the words “to
vote against” and specify the particular resolutions).
Dated
Signature
CERTIFICATE OF WITNESS
(This certificate is to be completed only if the person giving the proxy is blind or
incapable of writing. The signature of the creditor, contributory, debenture
holder or member must not be witnessed by the person nominated as proxy)
I (name), of (address), certify that the above instrument appointing a proxy was
completed by me in the presence of and at the request of the person appointing
the proxy and read to him or her before she signed or marked at the instrument.
Dated
Signature of witness
Description
Place of residence
* Omit if inapplicable.
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Corporations Regulations 2001 41
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 535 (subregulation 5.6.49(2)
A.C.N or A.R.B.N:
Corporations Act 2001
FORMAL PROOF OF DEBT OR CLAIM (GENERAL FORM)
To the liquidator of Limited
1. This is to state that the company was on (date of court order in
winding up by the Court, or date of resolution to wind up, if a
voluntary winding up), and still is, justly and truly indebted to (full
name and address of the creditor and, if applicable, the creditor’s
partners. If prepared by an employee or agent of the creditor, also
insert a description of the occupation of the creditor) for
dollars and cents
Particulars of the debt are:
Date Consideration Amount Remarks
(state how the debt
arose)
(include details of
voucher substantiating
payment)
$ c
2. To my knowledge or belief the creditor has not, nor has any person
by the creditor’s order, had or received any satisfaction or security for
the sum or any part of it except for the following: (insert particulars
of all securities held. If the securities are on the property of the
company, assess the value of those securities. If any bills or other
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negotiable securities are held, show them in a schedule in the
following form).
Date Drawer Acceptor Amount Due Date
$ c
*3. I am employed by the creditor and authorised in writing by the
creditor to make this statement. I know that the debt was incurred for
the consideration stated and that the debt, to the best of my
knowledge and belief, remains unpaid and unsatisfied.
*3. I am the creditor’s agent authorised in writing to make this statement
in writing. I know the debt was incurred for the consideration stated
and that the debt, to the best of my knowledge and belief, remains
unpaid and unsatisfied.
Dated
Signature
Occupation
Address
*Do not complete if this proof is made by the creditor personally
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Form 536 (subregulation 5.6.49(2))
A.C.N. or A.R.B.N:
Corporations Act 2001
FORMAL PROOF OF DEBT OR CLAIM ON BEHALF OF EMPLOYEES
To the liquidator of Limited
I (full name of person making the statement) of (full address) being
(occupation) state:
1. the company was, on (date of court order in winding up, if winding
up was by the Court, or date of resolution to wind up if a voluntary
winding up), and still is, indebted to the persons whose names,
addresses and descriptions appear in Columns 2, 3 and 4 in the
Schedule;
2. the debt is for wages, salaries, annual leave, retrenchment payments
or long service leave, due to them for services rendered while
employed by the company during the periods set out in Column 5
against the names of the persons;
3. the debt of the company due to each person is for the amount set out
in Column 6 against the name of that person;
4. none of those persons has had or received any satisfaction or security
in respect of that debt;
5. I am authorised as and the source of my
information is as follows:
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SCHEDULE
Column 1 Column 2 Column 3 Column 4 Column 5 Column 6
No Full name Address of
employee
Description Period for
which claim
is made (see
note below)
Amount of
claim
Dated
Signature
Note: In case of a claim for annual leave or long service leave, insert a
description of the claim.
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Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 537 (subregulation 5.6.54(1))
A.C.N or A.R.B.N:
Corporations Act 2001
NOTICE OF REJECTION OF FORMAL PROOF OF DEBT OR CLAIM
Limited
To
of
1. Your claim against the company set out in the formal proof of debt or
claim of (name of person submitting original proof of debt or claim)
made on (date) has been *wholly disallowed/*disallowed to the extent
of (particulars of part of claim disallowed)/*allowed in the sum of $
/*allowed to the extent of your claim for (particulars of part of
claim allowed).
2. My grounds for disallowance of (particulars of part of claim referred
to) are as follows:
3. If you are dissatisfied with my determination as set out above, you
may appeal against it, no later than (number of days, being not less
than 14) days after the service of this notice or, if the Court allows,
within any further period, to the *Federal Court of Australia/*the
Supreme court of (State or Territory). If you do not do so, your
claim will be assessed in accordance with this determination.
Dated
Signature of liquidator
Address
* Omit if inapplicable
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46 Corporations Regulations 2001
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Form 538 (regulation 5.6.58)
A.C.N or A.R.B.N:
Corporations Act 2001
PROVISIONAL LIST OF CONTRIBUTORIES
Limited
The following is a provisional list of persons to be placed on the list of
contributories that I have made from the records of the company, together with
the number of their shares or the extent of their interest, their address and other
participants:
PART 1
PERSONS WHO ARE CONTRIBUTORIES
IN THEIR OWN RIGHT
Serial
No.
Name Address Description
of class of
contributory
Number
of shares
(or
extent of
interest)
Amount
called
up at
date of
start of
winding
up
Amount
paid up
at date
of start
of
winding
up
Amount
not
called
up at
date of
start of
winding
up
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Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
PART 2
CONTRIBUTORIES WHO ARE REPRESENTATIVES OF, OR LIABLE
FOR THE DEBTS OF, OTHERS
Serial
No.
Name Address Description
of class of
contributory
and in what
character
included
Number
of shares
(or
extent of
interest)
Amount
called
up at
date of
start of
winding
up
Amount
paid up
at date
of start
of
winding
up
Amount
not
called
up at
date of
start of
winding
up
Dated
Signature of liquidator
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Form 539 (subregulation 5.6.59(1))
A.C.N or A.R.B.N:
Corporations Act 2001
NOTICE TO CONTRIBUTORIES OF APPOINTMENT TO SETTLE LIST
OF CONTRIBUTORIES
Limited
Take notice that I (name) of (address), the liquidator of the company, have
appointed (time) *a.m./*p.m. on (date) at (address of place appointed for
settlement), at which I must settle the list of the contributories of the company
that I have made. You are at present included in that list.
Particulars of your inclusion are set out below. Unless, before or at the time
appointed for the settlement, you give me sufficient reason for your exclusion,
your name will be included in the settled list.
Dated
Signature of liquidator
Serial
No.
Name Address Description
of class of
contributory
and in what
character
included
Number
of shares
(or
extent of
interest)
Amount
called
up at
date of
start of
winding
up
Amount
paid up
at date
of start
of
winding
up
Amount
not
called
up at
date of
start of
winding
up
* Strike out whichever is inapplicable.
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Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
NOTES
1. Contributories do not have to attend the appointment referred to in
this notice if they are satisfied that the particulars contained in the
notice are correct.
2. A shareholder’s name cannot be omitted from the list of
contributories because he or she is unable to pay calls; this question
will be dealt with when application is made for payment of the calls.
3. A change of address may be notified by giving notice to the
liquidator by post before the date fixed for the appointment.
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Form 541 (subregulation 5.6.60(2))
A.C.N. or A.R.B.N.:
Corporations Act 2001
CERTIFICATE OF LIQUIDATOR OF FINAL SETTLEMENT OF LIST OF
CONTRIBUTORIES
Limited
I (name), the liquidator of the company, certify that the result of the settlement
of the list of contributories of the company is as follows:
1. The persons named in Column 2 of Schedule 1 have been included in
the list of contributories as contributories of the company in respect
of the number of shares or extent of interest set out opposite their
names. I have listed in Part 1 of Schedule 1, contributories in their
own right and, in Part 2 of Schedule 1, contributories who are
representatives of, or liable for the debts of, others.
2. The persons named in Column 2 of Schedule 2 were included in the
provisional list of contributories, but have been excluded from the
settled list of contributories.
3. In Column 6 of Schedule 1 and in Column 6 of Schedule 2, I have set
out opposite the name of each person the date when that person was
included in or excluded from the list of contributories.
4. In Columns 7 and 8 of Schedule 1, I have set out opposite the name
of each person the amount called up at the date of the commencement
of the winding up and the amount paid up at that date in respect of the
shares, or interest, of that person.
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SCHEDULE 1
PERSONS INCLUDED IN THE LIST OF CONTRIBUTORIES
PART 1: CONTRIBUTIONS IN THEIR OWN RIGHT
1 2 3 4 5 6 7 8 9
Serial No. Name Address Description of
class of
contributory
and in what
character
included
Number of
shares (or
extent of
interest)
Date when
included in list
Amount called
up at date of
start of
winding up
Amount paid
up at date of
start of
winding up
Amount not
called up at
date of start of
winding up
PART 2: CONTRIBUTORIES WHO ARE REPRESENTATIVES OF, OR LIABLE FOR
THE DEBTS OF, OTHERS
1 2 3 4 5 6 7 8 9
No. Name Address Description of
class of
contributory
and in what
character
included
Number of
shares (or
extent of
interest)
Date when
included in list
Amount called
up at date of
start of
winding up
Amount paid
up at date of
start of
winding up
Amount not
called up at
date of start of
winding up
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SCHEDULE 2
PERSONS EXCLUDED FROM THE LIST OF CONTRIBUTORIES
1 2 3 4 5 6
No. Name Address Description of class of
contributory and in
what character
proposed to be
included
Number of shares (or
extent of interest)
Date when included in list
Dated
Signature of liquidator
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Form 542 (subregulation 5.6.61(1))
A.C.N or A.R.B.N.:
Corporations Act 2001
PROVISIONAL SUPPLEMENTARY LIST OF CONTRIBUTORIES
Limited
The following is a list of persons that I have found, since making out the
annexed list of contributories dated , to be, or to have been, *holders of shares in/*members of the company, and who to the best of my
knowledge and belief are contributories of the company:
(insert list in the same form as the original list: see Form 538)
Dated
Signature of liquidator
*Omit if inapplicable
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Form 543 (subregulation 5.6.61(1))
A.C.N. or A.R.B.N.:
Corporations Act 2001
CERTIFICATE OF LIQUIDATOR OF SETTLEMENT OF
SUPPLEMENTARY LIST OF CONTRIBUTORIES
Limited
I (name), the liquidator of the company, certify that the result of the settlement
of the provisional supplementary list of contributories of the company that I
made out on (date) is as follows:
(set out the Certificate and Schedules as in Form 541)
Dated
Signature of liquidator
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Form 544 (subregulation 5.6.62(4))
A.C.N. or A.R.B.N.:
Corporations Act 2001
NOTICE TO CONTRIBUTORY OF FINAL SETTLEMENT OF LIST OR
SUPPLEMENTARY LIST OF CONTRIBUTORIES AND OF INCLUSION
IN LIST
Limited
To:
of:
Take notice that I (name), the liquidator of the company, on (date) settled the
list of contributories of the company. You are included in that list. The
character, if applicable, in which, and the number of share, or extent of interest,
for which, you are included, and the amounts called dup, paid up and unpaid in
respect of those shares or that interest are stated in the Schedule.
You may apply to vary the list of contributories, or to remove your name from
the list, by making an application to *the Federal Court of Australia/*the
Supreme court of (State or Territory) within 21 days from the service on you of
this notice or, if the Court allows, any further period.
You may inspect the list at my office at (address) from Monday to Friday
inclusive between the hours of (insert times making up not less than 3 hours
during the normal working day) and
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Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
SCHEDULE
No. Name Address Description
of class of
contributory
and in what
character
included
Number of
shares (or
extent of
interest)
Amount
called up at
date of start
of winding
up
Amount
unpaid at
date of start
of winding
up
Amount
unpaid at
date of start
of winding
up
Amount not
called up at
date of start
winding up
Dated
Signature of liquidator
* Omit if not applicable
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Form 547 (subregulation 5.6.65(1))
Corporations Act 2001
NOTICE TO CREDITOR OR PERSON CLAIMING TO BE A CREDITOR
OF INTENTION TO DECLARE A DIVIDEND
Limited
A dividend (state the number of the dividend, e.g. “first”, “second”) is to be
declared on (date) for the company.
*You are listed as a creditor in the report on the affairs of the company; *You are known to me to claim to be a creditor, but your debt or claim has not
yet been admitted.
You are required formally to prove your debt or claim on or before (date). If
you do not, you will be excluded from the benefit of the dividend.
Dated
Signature of liquidator
Address
*Omit if inapplicable.
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Form 548 (subregulation 5.6.65(1))
Corporations Act 2001
NOTICE TO CREDITOR OR PERSON CLAIMING TO BE A CREDITOR
OF INTENTION TO DECLARE A DIVIDEND
Limited
A final dividend is to be declared on (date) for the company.
You are required formally to prove your debt or claim on or before (date).
If you do not, I will exclude your claim from participation, and I will proceed to
make a final dividend without having regard to it.
Signature of liquidator
Address
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Corporations Regulations 2001 59
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Form 549 (subregulation 5.6.67(3))
Corporations Act 2001
NOTICE OF DECLARATION OF DIVIDEND
Limited
(State the number of the dividend, e.g. “First”, “Second”)
dividend.
A dividend at the rate of in the dollar has been declared for the
company and a cheque is attached for $ calculated at that rate on your debt
as admitted to rank for dividend for $ .
Dated
Signature of liquidator
Address
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Form 550 (regulation 5.6.70)
Corporations Act 2001
AUTHORITY TO LIQUIDATOR TO PAY DIVIDEND TO A PERSON
NAMED
Limited
To the liquidator
*I/*We authorise and request you to pay to (name) of (address) all dividends as
they are declared for the company, and that become due and payable to *me/*us
in respect of *my/ *our claim for $ against the
company.
*I/*We further request that cheques drawn for those dividends are made payable
to the order of (name).
This authority remains in force until revoked by *me/*us in writing.
Date
Signature of creditor
Name of creditor
*Omit if inapplicable
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Form 551 (subregulation 5.6.71(1))
Corporations Act 2001
(Note: Before completing this schedule please read carefully the “Direction for
completing Form 551” at the end of this form)
SCHEDULE OF CONTRIBUTORIES OR OTHER PERSONS TO
WHOM A DISTRIBUTION OF SURPLUS IS TO BE PAID
Limited
Serial No. in
settled list
Name of
contributory
as in settled
list
Address Number of
shares held
as set out in
settled list
Total
amount
called up
Total
amount paid
up
SCHEDULE OF CONTRIBUTORIES OR OTHER PERSONS, TO
WHOM A DISTRIBUTION OF SURPLUS IS TO BE PAID
Arrears of calls
at date of
return
Previous
distributions of
capital
appropriated
by liquidator
for arrears of
calls
Amount of
distribution
payable per
share
Net distribution
payable
Date and
particulars of
transfer of
interest or other
variation in list
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Signature of liquidator
Date
DIRECTION FOR COMPLETING FORM 551
If the Articles:
(a) provide that the amount divisible among members or any class of
members must be dividable in proportion to the amount paid up or
that ought to have been paid up at the date of winding up; or
(b) contain any other provision that requires further information before a
distribution can be made; columns should be added showing the amount called up and the amount paid up
a that date in respect of shares then held by those members or that class of
members, or any other facts that may be required.
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Form 552 (subregulation 5.6.71(2))
Corporations Act 2001
NOTICE OF DISTRIBUTION OF SURPLUS TO CONTRIBUTORIES OR
OTHER PERSONS
Limited
A distribution of surplus at the rate of per share has been declared for
the company and a cheque is attached for $ calculated at that rate per share
on your (number) shares.
Dated
Signature of liquidator
Address
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Form 553 (regulation 5.6.72)
Corporations Act 2001
AUTHORITY TO LIQUIDATOR TO PAY DISTRIBUTION OF SURPLUS
TO A PERSON NAMED
Limited
To the Liquidator
*I/*We authorise and request you to pay to (name) of (address) any distribution
of surplus payable to *me/*us for the company.
*I/*We further request that the cheque drawn for that distribution be made
payable to the order of (name).
This authority remains in force until revoked by *me/*us in writing.
Dated
Signature
Name(s) of person(s) completing this authority
*Omit if inapplicable.
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Form 701
Data on intermediated business with APRA-authorised general insurers, Lloyd’s underwriters and unauthorised foreign insurers
Australian business number
Australian financial services licence
number
Australian financial services licensee name
Reporting period
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TABLE 1: AGGREGATE DATA ON INTERMEDIATED BUSINESS WITH APRA-AUTHORISED GENERAL INSURERS,
LLOYD’S UNDERWRITERS AND UNAUTHORISED FOREIGN INSURERS
Total business placed with APRA-authorised general insurers, Lloyds
underwriters and unauthorised foreign insurers
Premium invoiced this reporting period
Effective this
reporting period
Effective after the
reporting period end
Effective before the
reporting period start
Total invoiced this
reporting period
a. Business placed directly by the general insurance intermediary with
APRA-authorised general insurers
b. Business placed directly, or indirectly through a foreign intermediary, by
the general insurance intermediary with Lloyd’s underwriters
c. Business placed directly, or indirectly through a foreign intermediary, by
the general insurance intermediary with unauthorised foreign insurers
d. Business placed indirectly through another general insurance
intermediary, by the general insurance intermediary with:
i. APRA-authorised general insurers; or
ii. Lloyds underwriters; or
iii. unauthorised foreign insurers
Total
General insurer is defined in subsection 3(1) of the Insurance Act 1973.
Lloyd’s underwriter is defined in subsection 3(1) of the Insurance Act 1973.
Unauthorised foreign insurer is defined in regulation 4 of the Insurance Regulations 2002.
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TABLE 2: TRANSACTION LEVEL DATA ON INTERMEDIATED BUSINESS PLACED DIRECTLY, OR INDIRECTLY THROUGH A
FOREIGN INTERMEDIARY, WITH UNAUTHORISED FOREIGN INSURERS
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Policy
transaction
type
Client
code
Policy
code
Invoice
date
Effective
date
APRA
class of
business
Premium Currency
of
premium
UFI
name
UFI
country
code
Exemption
type
HVI
limb
HVI
value
(#)
Atypical
risk
class
Customised
reason
Note It is an offence under section 137.1 of the Criminal Code Act 1995 to provide false or misleading information to a Commonwealth entity. The Australian Prudential Regulation Authority is a Commonwealth entity.
Lodgement requirements
If information is to be lodged in Table 1 only, the licensee may lodge the information electronically or in writing.
If information is to be lodged in both Table 1 and Table 2, the licensee must lodge the information electronically. If the licensee is unable to
lodge the information electronically, the licensee must arrange an alternative method of lodgement with APRA.
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Requirements for forms lodged electronically
A licensee must lodge a form electronically via the licensees portal provided by APRA. A licensee must undertake the steps required by
APRA to become authorised to use the portal.
A document accompanying a form may only be lodged electronically if APRA has approved, in writing, the electronic lodgement of
documents of that kind. If APRA has not approved the electronic lodgement of a document, the document may be lodged in writing.
APRA may approve the electronic lodgement of:
(a) a particular kind of document; or
(b) documents in a particular class of documents.
A document is taken to be lodged with APRA electronically if it is lodged in accordance with APRA’s approval, including any requirements
of the approval as to authentication.
Requirements for forms lodged in writing
If a form is lodged in writing, the form must be signed in accordance with the requirements of section 912CA of the Corporations Act 2001,
as modified by regulation 7.6.08C of the Corporations Regulations 2001.
Licensees lodging by mail or in person must lodge with APRA:
(a) the signed, original form; and
(b) any information, statements, explanations or other matters required by the form; and
(c) any other material required by the form.
Licensees lodging by email must lodge with APRA:
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(a) the signed form in PDF (portable document format); and
(b) any information, statements, explanations or other matters required by the form; and
(c) any other material required by the form.
Licensees lodging by email must retain signed original copies of the forms and attachments for a period of 7 years.
A form, or document, lodged with APRA in writing by, or on behalf of, an entity in an item of the following table, must be signed by
the person specified in the item.
Item Entity Person
1 A body that is not a foreign company A director or secretary
2 A body that is a foreign company (a) a local agent; or
(b) if the local agent is a company — a director or secretary of the company
3 An individual An individual
4 A partnership (a) a partner; or
(b) if the partner is a company — a director or secretary of the company
5 A trust (a) a trustee; or
(b) if the trustee is a body — a director or secretary of the body
Note A body includes a body corporate or an unincorporated body, for example, a society or association — see the definition of body in section 9 of the Act.
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The following table must be completed. In the table, the person’s name must be printed next to the person’s signature.
Lodgement details (for the person who physically completes the form)
Firm/organisation
Contact name/position description
ASIC registered agent number (if applicable)
Telephone number
Postal address or DX address
Signature block
Name
Signature
Capacity
Entity name (if entity acting as local agent)
Date signed
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Form 719 (regulations 7.5.90 and 7.5.92)
Corporations Regulations 2001
STATEMENT ABOUT PAYMENTS OUT OF FINANCIAL INDUSTRY
DEVELOPMENT ACCOUNT
1. The name of the market licensee to which this statement relates is (insert
name of market licensee).
2. This statement relates to the financial year ending on (insert date) (the
relevant financial year).
3. Specify in respect of each purpose approved by the Minister under
subregulation 7.5.88 of the Regulations:
(a) the terms of the purpose as so approved are:
(insert terms)
(b) the date of that approval was (date);
(c) the amount of payments made for that purpose during the relevant financial year was $(amount);
(d) the total, as at the end of the relevant financial year, of all payments made for this purpose in the relevant financial year and previous financial years was $(amount);
(e) further payments for this purpose *are / *are not envisaged.
4. The total of payments for all purposes in respect of the relevant financial
year was $(amount).
REPORT OF AUDITOR
*I/We (insert name of the auditor or auditors signing this report), report that:
(a) *I / *We have audited the above statement; and
(b) it accurately represents the payments that it mentions.
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Dated
(signature of auditor)
(under the signature add the name under which the auditor practises or the
name of the firm in which the auditor is employed)
* Omit if not applicable
DECLARATION
I (insert name of officer of the market licensee and the office he or she
occupies), declare:
(a) that, to the best of my knowledge and belief, the information contained in the above statement is correct; and
(b) that the Board of (insert name of the market licensee) has accepted the information contained in the statement and resolved that the statement be lodged with ASIC.
Dated
(signature of officer of the market licensee)
(under the signature add the name of the person signing)
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Form 719A (subregulation 7.5.56(4))
Corporations Regulations 2001
COMPENSATION FOR LOSSES RESULTING FROM THE
UNAUTHORISED TRANSFER OF RIGHTS, SHARES, DEBENTURES
OR OTHER SECURITIES BY DEALER
This notice relates to the unauthorised transfer of securities by (insert name of
the dealer who is claimed to have transferred securities without authority of
transferor) (in this notice called ‘the dealer’) of (insert residential address of
the dealer) *formerly carrying on / *carrying on business at (insert address of
the principal place of business of the dealer, including State or Territory).
A person wishing to make a claim under regulation 7.5.54 or 7.5.55 of the
Corporations Regulations 2001 in respect of loss suffered as a result of a
transfer of securities executed between (insert date of first day of applicable
period) and (insert date of last day of applicable period, being a date before the
date on which the notice is first to be published) (inclusive) by the dealer
without authority must lodge his or her claim with:
Securities Exchanges Guarantee Corporation
(insert address, including State or Territory and postcode).
The claim must be made in writing before the end of (specify last application
day, at least 3 months after last day of publication of notice).
Under subregulation 7.5.56(3) of the Corporations Regulations 2001, a claim
that is not made before the end of that day is barred unless the Board of the
Securities Exchanges Guarantee Corporation otherwise determines.
The effect of regulation 7.5.54 of the Corporations Regulations 2001 is to allow
a person who:
(a) owned securities that were transferred by a dealer; and
(b) did not authorise the dealer to transfer those securities; and
(c) suffered loss as a result of the transfer;
to make a claim for compensation for the loss suffered in respect of the
securities.
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The effect of subregulation 7.5.55(1) of the Corporations Regulations 2001 is to
allow:
(a) a person to whom securities were transferred by the dealer without the authority of the owner of the securities; or
(b) a successor in title of that person;
to make a claim for compensation for the loss suffered in respect of the securities.
Under regulation 7.5.55 of the Corporations Regulations 2001, the following
persons are not entitled to make a claim:
(a) a person who knew that the owner of the securities had not authorised the dealer to transfer them;
(b) a person who is connected with the dealer in a way described in regulation 7.5.04 of the Corporations Regulations 2001.
(signature of an officer of the SEGC)
(under the signature add the words ‘for the Securities Exchanges Guarantee
Corporation’)
(add the date of signature)
* Omit if not applicable
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Form 719B (subregulation 7.5.61(4))
Corporations Regulations 2001
NOTICE CALLING FOR CLAIMS AGAINST SECURITIES
EXCHANGES GUARANTEE CORPORATION
This notice relates to claims for pecuniary loss suffered in respect of a
contravention of the ASTC certificate cancellation provisions by (insert name of
dealer who is claimed to have contravened SCH certificate cancellation
provisions) (in this notice called ‘the dealer’) *formerly carrying on business / *carrying on business at (insert business address of the dealer).
A person wishing to make a claim under subregulation 7.5.60(1) of the
Corporations Regulations 2001 for pecuniary loss suffered in respect of a
contravention by the dealer of the SCH certificate cancellation provisions
during the period beginning on and ending on (insert dates) is required to serve
the claim on:
Securities Exchanges Guarantee Corporation
(insert address including relevant State or Territory and postcode).
The claim must be made in writing and served on or before the end of (specify
last application day — at least 3 months after last day of publication of notice).
(NOTES:
1. Under subregulation 7.5.61(3) of the Corporations Regulations 2001, a
claim that is not served before the end of the day specified will be barred,
unless the Board of the Securities Exchanges Guarantee Corporation
(‘SEGC’) otherwise determines.
2. Regulation 7.5.60 of the Corporations Regulations 2001 provides that a
person who suffers pecuniary loss in respect of a contravention, by a
dealer, of the ASTC certificate cancellation provisions may make a claim
in respect of the loss. ASTC certificate cancellation provisions are
provisions of the ASTC operating rules that deal with brokers cancelling
certificates or other documents of title to Part 4 financial products or with
matters incidental to that function.)
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A person may not make a claim under regulation 7.5.60 of the Corporations
Regulations 2001 if:
(a) the loss is in respect of an unauthorised execution (within the meaning of regulation 7.5.53 of those Regulations) in respect of which the person has made, or is entitled to make a claim under Subdivision 4.7 of Part 7.5 of those Regulations; or
(b) the person was involved in the contravention of the ASTC certificate cancellation provisions.
(signature of an officer of the SEGC)
for the Securities Exchanges Guarantee Corporation
(add the date of signature)
* Omit if not applicable
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Form 720 (subregulation 7.5.70(1))
Corporations Regulations 2001
NOTICE CALLING FOR CLAIMS AGAINST THE SECURITIES
EXCHANGES GUARANTEE CORPORATION
In relation to (insert name of dealer who has become insolvent) (in this notice
called ‘the dealer’) of (insert residential address of the dealer), *formerly /
carrying on business at (insert address of the principal place of business of the
dealer, including State or Territory), a dealer who has become insolvent.
Persons wishing to make a claim under subregulation 7.5.64(1) of the
Corporations Regulations 2001 in respect of property that was, in the course of,
or in connection with, the dealer’s business of dealing in securities, entrusted to
or received by the dealer (or another person as provided under that
subregulation) are required to lodge their claim with:
The Securities Exchanges Guarantee Corporation
(insert address, including State or Territory and postcode).
The claim must be made in writing on or before (insert date).
Subject to regulation 7.5.70 of the Corporations Regulations 2001, claims not
made on or before that date are barred unless the Board of the Securities
Exchanges Guarantee Corporation otherwise determines.
Subregulation 7.5.64(1) of the Corporations Regulations 2001 provides to the
effect that, where the requirements of that provision are otherwise met, a person
may make a claim in respect of property that was, in the course of, or in
connection with, the dealer’s business of dealing in securities, entrusted to or
received by:
(a) unless paragraph (b) applies, the dealer or an employee of the dealer; or
(b) if the dealer was, at the time the property was so entrusted or received, a partner in a participant, the participant, or a partner in, or an employee of, the participant.
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(signature of an officer of the SEGC)
(under the signature add the words ‘For the Securities Exchanges Guarantee
Corporation’)
(add the date of signature)
* Omit if not applicable
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Form 721 (regulation 7.5.80)
Corporations Regulations 2001
NOTICE OF DISALLOWANCE OF CLAIM AGAINST THE SECURITIES
EXCHANGES GUARANTEE CORPORATION
(Set out the name and address of the claimant or the claimant’s solicitor and an
appropriate form of salutation)
In relation to (insert name of the dealer to whom the claim relates), *formerly
carrying on / *carrying on business at (insert business address of the dealer).
The *Board of the Securities Exchanges Guarantee Corporation / *delegate of
the Board of the Securities Exchanges Guarantee Corporation under
section 890C of the Corporations Act 2001 has considered your claim against
the Corporation in respect of (insert description of the circumstances giving rise
to the claim and the loss allegedly suffered by the claimant).
After considering all the available evidence, the Corporation has decided that
the claim under *regulation (insert relevant regulation number) / *regulations
(insert relevant regulation numbers) should be *disallowed / *partly disallowed
to the extent set out below.
If you are not satisfied with this decision, you may bring proceedings within 3
months after service of this notice (see section 888H of the Act).
Yours sincerely,
(signature of an officer of the Corporation)
(under the signature add the words ‘for the Securities Exchanges Guarantee
Corporation’)
(add the date of signature)
(If the claim has been partly disallowed, insert a heading
‘PARTICULARS OF PARTIAL DISALLOWANCE’
and specify the necessary particulars under it)
* Omit if not applicable
Federal Register of Legislative Instruments F2015C00303
Schedule 2 Forms
88 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 905
Registration no:
Corporations Act 2001
PARTICULARS OF CESSATION OR CHANGE RELATING TO A
PERSON REGISTERED AS AN AUDITOR UNDER
SUBSECTION 1287(1)
Surname First or given names
Residential address
*1. CESSATION
On (insert date) , I ceased to practise as an auditor. I request ASIC to
exercise its discretion under subsection 1290(1) and cancel my registration
as an auditor.
*2. CHANGE OF NAME
On (insert date) , I changed my name
from:
to:
*3. CHANGE IN OTHER PARTICULARS *On (insert date) , the full address of the principal place at which I
practise was changed from:
to: (insert full address)
*On (insert date) , the full address of a place at which I practise was
changed from:
to: (insert full address)
Federal Register of Legislative Instruments F2015C00303
Forms Schedule 2
Corporations Regulations 2001 89
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
*On (insert date) , I commenced to practise at: (insert full
address)
*On (insert date) , I commenced to practise under a name and style
other than my own at: (insert full address)
*On (insert date) , I ceased to practise at: (insert full address)
*On (insert date) , the *name/*address of a firm of which I am *a
member/*an employee was changed from:
to:
*On (insert date) , I became *a member/*an employee of: (insert
name and full address)
*On (insert date) , I ceased to be *a member/*an employee of: (insert
name and full address)
*On (insert date) , a name or style other than my own under which I
practise was changed from:
to:
Dated: (insert date)
(signature of the registered company auditor)
* Omit if not applicable
Federal Register of Legislative Instruments F2015C00303
Schedule 2 Forms
90 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Federal Register of Legislative Instruments F2015C00303
Forms Schedule 2
Corporations Regulations 2001 91
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 910 (section 1313)
Corporations Act 2001
PENALTY NOTICE
To (insert name of person alleged to have committed offence and, if a
corporation, its Australian Company Number or its Australian Registered Body
Number)
1. It is alleged that at (insert place) on (insert date) you committed an
offence under or in relation to (insert provision under or in relation to
which the offence is alleged to have been committed) because you
(set out particulars of alleged offence, including description of
alleged conduct constituting the offence. Where applicable, include
the name and Australia Company Number or Australian Registered
Body Number of any corporation in connection with which the
offence is alleged to have been committed).
This offence is a prescribed offence.
2. Prescribed penalty: $
Payable to: (insert name and address of the office of the Australian Securities
and Investments Commission)
*3. APPLIES IF THE PENALTY NOTICE RELATES TO AN
OFFENCE CONSTITUTED BY A FAILURE TO DO A
PARTICULAR ACT OR THING
Take notice that:
(a) the obligation to (see Note below) continues, despite the service of
this notice or the payment of the prescribed penalty; and
(b) if, within 21 days after the date of service of this notice, you:
(i) pay the prescribed penalty to the authority specified in
paragraph 2; and
Federal Register of Legislative Instruments F2015C00303
Schedule 2 Forms
92 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) (see Note below);
no further action will be taken against you in relation to the offence
described in paragraph 1; and
(c) if, at the end of 21 days after the date of service of this notice, you:
(i) have not paid the prescribed penalty to the authority specified in
paragraph 2; or
(ii) have not (see Note below);
proceedings may be instituted against you.
*3. APPLIES IF THE PENALTY NOTICE RELATES TO AN
OFFENCE OTHER THAN ONE CONSTITUTED BY A FAILURE
TO DO A PARTICULAR ACT OR THING
Take notice that if, within 21 days after the date of service of this notice, you
pay the prescribed penalty to the authority specified in paragraph 2, no further
action will be taken against you in relation to the offence described in
paragraph 1.
If, at the end of 21 days after the date of service of this notice, you have not paid
the prescribed penalty to the authority specified in paragraph 2, proceedings
may be instituted against you.
4. Payment of the penalty is not an admission of liability: see
subsection 1313(6).
Given by on behalf of the Australian Securities and
Investments Commission at on
* Omit if not applicable
Note: insert a description of the particular act or thing that the person allegedly
failed to do in committing the alleged offence.
Federal Register of Legislative Instruments F2015C00303
Forms Schedule 2
Corporations Regulations 2001 93
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Federal Register of Legislative Instruments F2015C00303
Schedule 2A Forms of transfer of Division 3 securities
Form 1
94 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 2A—Forms of transfer of Division 3
securities (regulation 7.11.04)
Form 1
DIVISION 3 SECURITY TRANSFER FORM MARKING STAMP
PART 1
Full name of company:
Description of Division 3 assets: Class: If not fully
paid, paid to: Register:
Quantity: [Words] [Figures]
Transfer identification number:
Full name(s) of transferor(s):
The transferor(s) hereby transfer(s) the above Division 3 assets to the transferee(s) named in
Part 2 hereof or to the several transferees named in Part 2 of the Broker’s Transfer Form(s),
Split Transfer Form(s) or Consolidated Transfer Form(s) relating to the assets.
This transfer is executed on the transferor’s behalf by the transferor’s broker, who certifies:
(a) as to the validity of documents; and
(b) that stamp duty, if payable, has been or will be paid.
[Transferor’s broker’s stamp]
Affixed at
on
(place and date of affixing stamp)
Federal Register of Legislative Instruments F2015C00303
Forms of transfer of Division 3 securities Schedule 2A
Form 1
Corporations Regulations 2001 95
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
PART 2
Full name(s) and address(es) of transferee(s): Transferee’s broker hereby certifies:
(a) that the Division 3 assets set out in
Part 1 above, having been purchased in
the ordinary course of business, are to
be registered in the name(s) of the
transferee(s) named in this Part; and
(b) that stamp duty, if payable, has been or
will be paid;
and hereby requests that such entries be
made in the register as are necessary to give
effect to this transfer;
[Transferee’s broker’s stamp]
Date of affixing stamp:
PART 3
Transferee’s broker hereby certifies:
(a) that the Division 3 assets set out in Part 1 above, having been purchased in the ordinary
course of business, are to be registered in the name(s) of the transferee(s) named in the
Consolidated Transfer Form relating to the Division 3 assets; and
(b) that stamp duty, if payable, has been or will be paid;
and hereby requests that such entries be made in the register as are necessary to give effect to
this transfer.
[Transferee’s broker’s stamp]
Date of affixing stamp:
Federal Register of Legislative Instruments F2015C00303
Schedule 2A Forms of transfer of Division 3 securities
Form 2
96 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 2
BROKER’S TRANSFER FORM MARKING STAMP
PART 1
Full name of company:
Description of Division 3 assets: Class: If not fully
paid, paid to: Register:
Quantity: [Words] [Figures]
Transfer identification number:
Full name(s) of transferor(s):
Transferor’s broker hereby certifies:
(a) that the Security Transfer Form relating to
the Division 3 assets set out above has been
or will be lodged at the company’s office;
and
(b) that stamp duty, if payable, has been or will
be paid.
[Transferor’s broker’s stamp]
Affixed at
on
(place and date of affixing stamp)
PART 2
Federal Register of Legislative Instruments F2015C00303
Forms of transfer of Division 3 securities Schedule 2A
Form 2
Corporations Regulations 2001 97
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Full name(s) and address(es) of
transferee(s):
Transferee’s broker hereby certifies:
(a) that the Division 3 assets set out in Part 1
above, having been purchased in the
ordinary course of business, are to be
registered in the name(s) of the transferee(s)
named in this Part; and
(b) that stamp duty, if payable, has been or will
be paid;
and hereby requests that such entries be made in
the register as are necessary to give effect to this
transfer.
[Transferee’s broker’s stamp]
Date of affixing stamp:
PART 3
Transferee’s broker hereby certifies:
(a) that the Division 3 assets set out in Part 1 above, having been purchased in the ordinary
course of business, are to be registered in the name(s) of the transferee(s) named in the
Consolidated Transfer Form relating to the assets; and
(b) that stamp duty, if payable, has been or will be paid;
and hereby requests that such entries be made in the register as are necessary to give effect to
this transfer.
[Transferee’s broker’s stamp]
Date of affixing stamp:
Federal Register of Legislative Instruments F2015C00303
Schedule 2A Forms of transfer of Division 3 securities
Form 3
98 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 3
SPLIT TRANSFER FORM MARKING STAMP
PART 1
Full name of company:
Description of Division 3 assets: Class: If not fully
paid, paid to: Register:
Quantity: [Words] [Figures]
Transfer identification number:
Full name(s) of transferor(s):
The [name of market licensee] hereby certifies that
the Security Transfer Form or the Broker’s
Transfer Form relating to the Division 3 assets set
out above has been or will be lodged at the
company’s office.
[Market licensee stamp]
Affixed at
on
(place and date of affixing stamp)
Federal Register of Legislative Instruments F2015C00303
Forms of transfer of Division 3 securities Schedule 2A
Form 3
Corporations Regulations 2001 99
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
PART 2
Full name(s) and address(es) of
transferee(s)
Transferee’s broker hereby certifies:
(a) that the Division 3 assets set out in Part 1
above, having been purchased in the
ordinary course of business, are to be
registered in the name(s) of the transferee(s)
named in this Part; and
(b) that stamp duty, if payable, has been or will
be paid;
and hereby requests that such entries be made in
the register as are necessary to give effect to this
transfer.
[Transferee’s broker’s stamp]
Date of affixing stamp:
PART 3
Transferee’s broker hereby certifies:
(a) that the Division 3 assets set out in Part 1 above, having been purchased in the ordinary
course of business, are to be registered in the name(s) of the transferee(s) named in the
Consolidated Transfer Form relating to the Division 3 assets; and
(b) that stamp duty, if payable, has been or will be paid;
and hereby requests that such entries be made in the register as are necessary to give effect to
this transfer.
[Transferee’s broker’s stamp]
Date of affixing stamp:
Federal Register of Legislative Instruments F2015C00303
Schedule 2A Forms of transfer of Division 3 securities
Form 4
100 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 4
CONSOLIDATED TRANSFER FORM MARKING STAMP
PART 1
Full name of company:
Description of Division 3 assets: Class: If not fully
paid, paid to: Register:
Quantity: [Words] [Figures]
Transfer identification number:
Transfer Consolidation Number(s):
PART 2
Full name(s) and address(es) of
transferee(s):
Transferee’s broker hereby certifies:
(a) that the Division 3 assets set out in Part 1 of the
Form(s) whose Transfer Consolidation
Number(s) is (or are) set out in Part 1 above,
having been purchased in the ordinary course of
business, are to be registered in the name(s) of
the transferee(s) named in this Part; and
(b) that stamp duty, if payable, has been or will be
paid;
and hereby requests that such entries be made in the
register as are necessary to give effect to the
transfer(s).
[Transferee’s broker’s stamp]
Date of affixing stamp:
Federal Register of Legislative Instruments F2015C00303
Forms of transfer of Division 3 securities Schedule 2A
Form 5
Corporations Regulations 2001 101
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 5
SECURITY RENUNCIATION AND
TRANSFER FORM MARKING STAMP
PART 1
Full name of company:
Description of Division 3 rights: Register:
Quantity: [Words] [Figures]
Transfer identification number:
Full name(s) of transferor(s):
The transferor(s) hereby renounce(s) and transfer(s) the above Division 3 rights in favour of
the transferee(s) named in Part 2 hereof or to the several transferees named in Part 2 of the
Broker’s Renunciation and Transfer Form(s), Renunciation and Split Transfer Form(s) or
Renunciation and Consolidated Transfer Form(s) relating to the above Division 3 rights.
This transfer and renunciation is executed on the transferor’s behalf by the transferor’s
broker, who certifies:
(a) as to the validity of documents; and
(b) that stamp duty, if payable, has been or will be paid.
[Transferor’s broker’s stamp]
Affixed at
on
(place and date of affixing stamp)
Federal Register of Legislative Instruments F2015C00303
Schedule 2A Forms of transfer of Division 3 securities
Form 5
102 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
PART 2
Full name(s) and address(es) of
transferee(s):
Transferee’s broker hereby certifies:
(a) that, the Division 3 rights set out in Part 1 above
having been purchased in the ordinary course of
business, the Division 3 assets to which the
Division 3 rights relate are to be issued to the
transferee(s) named in this Part; and
(b) that stamp duty, if payable, has been or will be
paid;
and hereby requests that the Division 3 assets be issued
by the company to the transferee(s) and such entries be
made in the register as are necessary to give effect to
this renunciation and transfer.
[Transferee’s broker’s stamp]
Date of affixing stamp:
PART 3
Transferee’s broker hereby certifies:
(a) that, the Division 3 rights set out in Part 1 above having been purchased in the ordinary
course of business, the Division 3 assets to which the rights relate are to be issued to the
transferee(s) named in the Renunciation and Consolidated Transfer Form relating to the
Division 3 rights; and
(b) that stamp duty, if payable, has been or will be paid;
and hereby requests that the Division 3 assets be issued by the company to the transferee(s)
and such entries be made in the register as are necessary to give effect to this renunciation and
transfer.
[Transferee’s broker’s stamp]
Date of affixing stamp:
Federal Register of Legislative Instruments F2015C00303
Forms of transfer of Division 3 securities Schedule 2A
Form 6
Corporations Regulations 2001 103
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 6
BROKER’S RENUNCIATION AND
TRANSFER FORM MARKING STAMP
PART 1
Full name of company:
Description of Division 3 rights: Register:
Quantity: [Words] [Figures]
Transfer identification number:
Full name(s) and address(es) of
transferor(s):
Transferor’s broker hereby certifies:
(a) that the Security Renunciation and Transfer
Form relating to the Division 3 rights set out
above has been or will be lodged at the
company’s office; and
(b) that stamp duty, if payable, has been or will
be paid.
[Transferor’s broker’s stamp]
Affixed at
on
(place and date of affixing stamp)
Federal Register of Legislative Instruments F2015C00303
Schedule 2A Forms of transfer of Division 3 securities
Form 6
104 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
PART 2
Full name(s) and address(es) of
transferee(s):
Transferee’s broker hereby certifies:
(a) that, the Division 3 rights set out in Part 1
above having been purchased in the ordinary
course of business, the Division 3 assets to
which the Division 3 rights relate are to be
issued to the transferee(s) named in this Part;
and
(b) that stamp duty, if payable, has been or will
be paid;
and hereby requests that the Division 3 assets be
issued by the company to the transferee(s) and
such entries be made in the register as are
necessary to give effect to this renunciation and
transfer.
[Transferee’s broker’s stamp]
Date of affixing stamp:
PART 3
Transferee’s broker hereby certifies:
(a) that, the Division 3 rights set out in Part 1 above having been purchased in the ordinary
course of business, the Division 3 assets to which the Division 3 rights relate are to be
issued to the transferee(s) named in the Renunciation and Consolidated Transfer Form
relating to the rights; and
(b) that stamp duty, if payable, has been or will be paid;
and hereby requests that the Division 3 assets be issued by the company to the transferee(s)
and such entries be made in the register as are necessary to give effect to this renunciation and
transfer.
[Transferee’s broker’s stamp]
Date of affixing stamp:
Federal Register of Legislative Instruments F2015C00303
Forms of transfer of Division 3 securities Schedule 2A
Form 7
Corporations Regulations 2001 105
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 7
RENUNCIATION AND SPLIT TRANSFER
FORM MARKING STAMP
PART 1
Full name of company:
Description of Division 3 rights: Register:
Quantity: [Words] [Figures]
Transfer identification number:
Full name(s) of transferor(s):
The [name of market licensee] hereby certifies that
the Security Renunciation and Transfer Form or
the Broker’s Renunciation and Transfer Form
relating to the Division 3 rights set out above has
been or will be lodged at the company’s office.
[Market licensee stamp]
Affixed at
on
(place and date of affixing stamp)
PART 2
Full name(s) and address(es) of
transferee(s):
Transferee’s broker hereby certifies:
(a) that, the Division 3 rights set out in Part 1
above having been purchased in the ordinary
course of business, the Division 3 assets to
which the Division 3 rights relate are to be
issued to the transferee(s) named in this Part;
and
Federal Register of Legislative Instruments F2015C00303
Schedule 2A Forms of transfer of Division 3 securities
Form 7
106 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) that stamp duty, if payable, has been or will
be paid;
and hereby requests that the Division 3 assets be
issued by the company to the transferee(s) and
such entries be made in the register as are
necessary to give effect to this renunciation and
transfer.
[Transferee’s broker’s stamp]
Date of affixing stamp:
PART 3
Transferee’s broker hereby certifies:
(a) that, the Division 3 rights set out in Part 1 above having been purchased in the ordinary
course of business, the Division 3 assets to which the Division 3 rights relate are to be
issued to the transferee(s) named in the Renunciation and Consolidated Transfer Form
relating to the rights; and
(b) that stamp duty, if payable, has been or will be paid;
and hereby requests that the Division 3 assets be issued by the company to the transferee(s)
and such entries be made in the register as are necessary to give effect to this renunciation and
transfer.
(Transferee’s broker’s stamp)
Date of affixing stamp:
Federal Register of Legislative Instruments F2015C00303
Forms of transfer of Division 3 securities Schedule 2A
Form 8
Corporations Regulations 2001 107
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 8
RENUNCIATION AND CONSOLIDATION
TRANSFER FORM MARKING STAMP
PART 1
Full name of company:
Description of Division 3 rights: Register:
Quantity: [Words] [Figures]
Transfer identification number:
Transfer Consolidation Number:
PART 2
Full name(s) and address(es) of
transferee(s):
Transferee’s broker hereby certifies:
(a) that, the Division 3 rights set out in Part 1 of
the Form(s) whose Transfer Consolidation
Number(s) is (or are) set out in Part 1 above
having been purchased in the ordinary
course of business, the Division 3 assets to
which the Division 3 rights relate are to be
issued to the transferee(s) named in this Part;
and
(b) that stamp duty, if payable, has been or will
be paid;
and hereby requests that the Division 3 assets be
issued by the company to the transferee(s) and
such entries be made in the register as are
necessary to give effect to the renunciation(s) and
transfer(s).
[Transferee’s broker’s stamp]
Date of affixing stamp:
Federal Register of Legislative Instruments F2015C00303
Schedule 2A Forms of transfer of Division 3 securities
Form 9
108 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 9
TRUSTEE TRANSFER FORM MARKING STAMP
PART 1
Full name of company:
Description of Division 3 assets: Class: If not fully
paid, paid to: Register:
Quantity: [Words] [Figures]
Transfer identification number, where
appropriate:
Full name(s) of transferor(s):
PART 2
Full name(s) and address(es) of
transferee(s):
Transferor hereby certifies that the Division 3
assets set out in Part 1 above are to be registered in
the name(s) of the transferee(s) named in this Part,
being the person(s) for or on whose behalf the
transferor held them, either alone or together with
another person or other persons, in the ordinary
course of business immediately before the
execution of this transfer, and hereby requests that
such entries be made in the register as are
necessary to give effect to this transfer.
I [or We] hereby transfer the above Division 3 assets to the transferee(s) named in Part 2
hereof.
Execution by the transferor(s):
Date of execution:
Federal Register of Legislative Instruments F2015C00303
Forms of transfer of Division 3 securities Schedule 2A
Form 10
Corporations Regulations 2001 109
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Form 10
TRUSTEE RENUNCIATION AND
TRANSFER FORM
PART 1
Full name of company:
Description of Division 3 rights: Register:
Quantity: [Words] [Figures]
Transfer identification number, where
appropriate:
Full name(s) of transferor(s):
PART 2
Full name(s) and address(es) of
transferee(s):
Transferor hereby certifies that, the Division 3
rights set out in Part 1 above having been
transferred to the person(s) for or on whose behalf
the transferor held them, either alone or together
with another person or other persons, in the
ordinary course of business immediately before
the transfer, the Division 3 assets to which the
Division 3 rights relate are to be issued to the
transferee(s) named in this Part, and hereby
requests that the Division 3 assets be issued by the
company to the transferee(s) and that such entries
be made in the register as are necessary to give
effect to this renunciation and transfer.
I [or We] hereby renounce and transfer the above Division 3 rights in favour of the
transferee(s) named in Part 2 hereof.
Execution by the transferor(s):
Date of execution:
Federal Register of Legislative Instruments F2015C00303
Prepared by the Office of Parliamentary Counsel, Canberra
Corporations Regulations 2001
Statutory Rules No. 193, 2001
made under the
Corporations Act 2001
Compilation No. 113
Compilation date: 31 March 2015
Includes amendments up to: SLI No. 39, 2015
Registered: 9 April 2015
This compilation is in 7 volumes
Volume 1: regulations 1.0.01–6D.5.02
Volume 2: regulations 7.1.02–7.6.08E
Volume 3: regulations 7.7.01–8.4.02
Volume 4: regulations 9.1.01–12.9.03
Volume 5: Schedules 1, 2 and 2A
Volume 6: Schedules 3–12
Volume 7: Endnotes
Each volume has its own contents
Federal Register of Legislative Instruments F2015C00303
About this compilation
This compilation
This is a compilation of the Corporations Regulations 2001 that shows the text
of the law as amended and in force on 31 March 2015 (the compilation date).
This compilation was prepared on 31 March 2015.
The notes at the end of this compilation (the endnotes) include information
about amending laws and the amendment history of provisions of the compiled
law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the
compiled law. Any uncommenced amendments affecting the law are accessible
on ComLaw (www.comlaw.gov.au). The details of amendments made up to, but
not commenced at, the compilation date are underlined in the endnotes. For
more information on any uncommenced amendments, see the series page on
ComLaw for the compiled law.
Application, saving and transitional provisions for provisions and
amendments
If the operation of a provision or amendment of the compiled law is affected by
an application, saving or transitional provision that is not included in this
compilation, details are included in the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as
modified but the modification does not amend the text of the law. Accordingly,
this compilation does not show the text of the compiled law as modified. For
more information on any modifications, see the series page on ComLaw for the
compiled law.
Self-repealing provisions
If a provision of the compiled law has been repealed in accordance with a
provision of the law, details are included in the endnotes.
Federal Register of Legislative Instruments F2015C00303
Corporations Regulations 2001 i
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Contents
Schedule 3—Specified offices 1
Schedule 4—Prescribed amounts 4
Schedule 5C—Conduct of auditor—relevant
relationships 7 1 Money owed—debt ...........................................................................7
2 Money owed—deposit account .........................................................8
3 Public company auditor (annual appointments at AGMs to
fill vacancies) ....................................................................................9
Schedule 6—Availability of names 10
Part 1—Rules for ascertaining whether names are identical 10
Part 2—Names unacceptable for registration 12
Part 3—Restricted words and phrases 14
Part 4—Consent required to use restricted words and phrases 15
Part 5—Names relating to financial institutions for use of
which consent is required 16
Schedule 7—Exemptions from requirements to set out
certain corporate particulars 17 7001 Definitions for Schedule 7...............................................................17
7002 Exemption for certain IATA documents..........................................17
7003 Exemption for bills of lading and sea waybills................................18
7004 Exemptions—quotation of ACNs and ARBNs................................18
Schedule 7A—Content of annual transparency report 20
Part 1—Interpretation for Schedule 7A 20 7A101 Interpretation ...................................................................................20
Federal Register of Legislative Instruments F2015C00303
ii Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 2—Prescribed information for audit firm or authorised
audit company 21
Part 3—Prescribed information for individual auditor 23
Schedule 8—Schemes of arrangement under Part 5.1
of the Act 24
Chapter 5—External administration 24
Part 1—Interpretation and application 24
Part 2—Prescribed information relating to proposed
compromise or arrangement with creditors or class
of creditors 25
Part 3—Prescribed information relating to proposed
compromise or arrangement with members or a
class of members 27
Part 4—Prescribed information relating to proposed
compromise or arrangement with members or class
of members for transfer to a trustee 32
Schedule 8A—Deed of company arrangement—
prescribed provisions 33 1 Administrator deemed agent of company ........................................33
2 Powers of administrator...................................................................33
3 Termination of deed where arrangement fails .................................36
4 Priority.............................................................................................36
5 Discharge of debts ...........................................................................36
6 Claims extinguished ........................................................................37
7 Bar to creditors’ claims....................................................................37
8 Making claims .................................................................................38
10 Lodging of accounts ........................................................................38
11 Committee of inspection..................................................................38
12 Termination of deed where arrangement achieves purpose .............39
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Corporations Regulations 2001 iii
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 8AA—Trustee companies 41
Schedule 8AB—Prescribed State and Territory
provisions for paragraph 601RAE (4)(a)
of the Act 43
Schedule 8AC—Prescribed State and Territory laws
and provisions for
paragraph 601RAE(4)(b) of the Act—
estate administration 44
Schedule 8AD—Prescribed State and Territory laws
and provisions for
paragraph 601RAE(4)(b) of the Act 45
Schedule 8AE—Relevant State and Territory
provisions 48
Schedule 8B—Option contract—prescribed indexes 49
Schedule 8C—Modifications of Part 7.5 of the Act—
compensation regimes 51
Schedule 8D—Modifications of Division 9 of Part 7.6
of the Act 56
Schedule 9—Companies authorised to effect transfers
under Part 7.11 of the Act 66
Schedule 10—Disclosure of fees and other costs 67
Part 1—Interpretation 67 101 Definitions.......................................................................................67
102 Management costs ...........................................................................70
103 Transactional and operational costs .................................................71
104 Indirect cost ratio.............................................................................71
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iv Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 2—Fees and Costs Template, example of annual fees and
costs and Consumer Advisory Warning for Product
Disclosure Statements 73
Division 1—The fees and costs template for superannuation
products 73
201 Template for superannuation products ............................................73
Division 2—The fees and costs template for managed investment
products 75
202 Template for a multiple fee structure—managed investment
products ...........................................................................................75
202A Template for single fee structure—managed investment
products ...........................................................................................77
Division 3—How to fill in the template 79
203 The preamble...................................................................................79
204 Column 2—presentation of amounts ...............................................79
205 Column 2—include information for each MySuper product
or investment option ........................................................................80
206 Presentation of multiple fee payment options..................................80
207 Column 3—how and when fees and costs are payable ....................80
208 Other material to be included in the template ..................................81
Division 4—Additional explanation of fees and costs 82
209 Matters to be included as additional explanation of fees and
costs.................................................................................................82
Division 4A—Defined fees for superannuation products 84
209A Defined fees for superannuation products .......................................84
Division 5—Example of annual fees and costs 87
210 Example of annual fees and costs ....................................................87
211 Superannuation products—Example of annual fees and costs
for a MySuper product.....................................................................87
212 Managed investment products—Example of annual fees and
costs for a balanced investment option ............................................88
213 Defined benefit funds ......................................................................88
Division 6—How to fill in the example of annual fees and costs 90
214 Fees and costs must be ongoing amounts ........................................90
214A Example of annual fees and costs for a MySuper product—
lifecycle MySuper product ..............................................................90
215 Minimum entry balance rule............................................................90
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Corporations Regulations 2001 v
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
216 Exit fees...........................................................................................90
217 Contribution fees .............................................................................91
218 Administration fees and investment fees for a
superannuation product....................................................................91
218A Management costs for a managed investment product ....................92
219 Withdrawal fees and exit fees..........................................................93
220 If there is no generic MySuper product or balanced
investment option ............................................................................93
Division 7—Consumer Advisory Warning 95
221 Consumer advisory warning ............................................................95
222 Where to place the Consumer Advisory Warning ...........................95
Part 3—Fees and costs in periodic statements 96
Division 1—Other Management Costs 96
301 Indirect costs related to investment and administration of
accounts...........................................................................................96
Division 2—Total fees 97
302 Total of fees in the periodic statement.............................................97
Division 3—Additional Explanation of Fees and Costs 98
303 Matters to be included as additional explanation of fees and
costs.................................................................................................98
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vi Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 10A—Modifications of Part 7.9 of the Act 99
Part 1—Modifications relating to sub-plans 99
Part 2—Modifications relating to Product Disclosure
Statements for RSA products 100
Part 3—Modifications relating to insurance options under
contract associated with superannuation interest 101
Part 5—Modifications relating to First Home Saver Accounts 102
Part 5A—Modifications for margin loan 105
Part 5B—Modifications for superannuation products to which
Subdivision 4.2B of Division 4 of Part 7.9 applies 108
Part 5C—Modifications for simple managed investment
scheme 111
Part 6—Modifications relating to application forms and
Product Disclosure Statements for standard
employer-sponsor arrangements and successor funds 114
Part 6A—Modifications relating to MySuper measures 116
Part 7—Modifications relating to life pensioners, members
subject to compulsory protection of small amounts and
members with small amounts that are expected to
grow quickly 117
Part 8—Modifications relating to periodic statements for RSA
providers 120
Part 9—Modifications relating to periodic statements for
superannuation entities and RSA providers 123
Part 10—Modifications relating to ongoing disclosure of
material changes and significant events in relation to
superannuation products and RSAs 124
Part 11—Modifications relating to charges for information
requested 127
Federal Register of Legislative Instruments F2015C00303
Corporations Regulations 2001 vii
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 12—Modifications relating to information when member
leaves a fund 128
Part 13—Modifications relating to exceptions to exit reporting
period provisions 130
Part 14—Modifications relating to obligation to give
information about financial products 132
Part 15—Modifications for confirmation of transactions 136
Part 16—Modifications relating to reporting periods 137
Part 17—Modifications relating to application forms for
specified superannuation products 138
Part 18—Modification of Part 7.9 of the Act—New Zealand
offer documents replace Product Disclosure
Statements where an offer relates to interests in a New
Zealand managed investment scheme 140
Part 19—Modifications for carbon units, Australian carbon
credit units and eligible international emissions units 142
Schedule 10AA—Modifications of the Act in relation
to their application in respect of a
recognised offer or a proposed offer of
securities that may become a recognised
offer 158
Part 1—Modification of Part 6D.2 of the Act—disclosure to
investors not required for recognised offer under
Chapter 8 158
Part 2—Modification of Part 7.9 of the Act—disclosure to
investors not required for recognised offer under
Chapter 8 160
Schedule 10B—Form and content of Product
Disclosure Statement for FHSA product 162
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viii Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 1—Form and content of Product Disclosure Statement—
general 162 1 Length and font size for Product Disclosure Statement .................162
2 Sections in a Product Disclosure Statement...................................163
3 Product Disclosure Statement must be self-contained ...................163
4 Contents of section 1 (Who can have a First Home Saver
Account) ........................................................................................164
5 Contents of section 2 (How the First Home Saver Account
works)............................................................................................165
6 Contents of section 3 (How the Government helps you save) .......166
7 Contents of section 4 .....................................................................167
8 Contents of section 5 (What happens if your situation
changes).........................................................................................169
9 Contents of section 6 (Using your savings for your first
home).............................................................................................169
10 Contents of section 7 (The fees and costs).....................................170
11 Contents of section 8 (How to open an account) ...........................171
12 Contents of section 9 .....................................................................171
Part 2—Information on fees and costs 173 13 Definitions.....................................................................................173
14 Presentation of information on fees and costs ...............................173
15 Information on fees and costs ........................................................174
16 Example of overall cost .................................................................175
17 Consumer advisory........................................................................178
Schedule 10C—Form and content of Product
Disclosure Statement—margin loan 179 1 Length and font size for Product Disclosure Statement for
margin loan....................................................................................179
2 Minimum content of Product Disclosure Statement for
margin loan....................................................................................179
3 Contents of section 1 (About [name of provider of the
margin loan] and [name of margin loan product]) .........................181
4 Contents of section 2 (Benefits of [name of margin loan
product]) ........................................................................................182
5 Contents of section 3 (How [name of margin loan product]
works)............................................................................................182
6 Contents of section 4 (What is a margin call?) ..............................184
7 Contents of section 5 (The risk of losing money) ..........................184
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Corporations Regulations 2001 ix
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
8 Contents of section 6 (The costs)...................................................186
9 Contents of section 7 (How to apply) ............................................187
Schedule 10D—Form and content of Product
Disclosure Statement—superannuation
product to which Subdivision 4.2B of
Division 4 of Part 7.9 applies 188 1 Length and font size for Product Disclosure Statement for
superannuation product..................................................................188
2 Minimum content of Product Disclosure Statement for
superannuation product..................................................................189
3 Contents of section 1 (About [name of superannuation
product])........................................................................................190
4 Contents of section 2 (How super works)......................................191
5 Contents of section 3 (Benefits of investing with [name of
superannuation product]) ...............................................................192
6 Contents of section 4 (Risks of super) ...........................................192
7 Contents of section 5 (How we invest your money) ......................193
8 Contents of section 6 (Fees and costs)...........................................195
9 Contents of section 7 (How super is taxed) ...................................198
10 Contents of section 8 (Insurance in your super) ............................199
11 Contents of section 9 (How to open an account) ...........................201
Schedule 10E—Form and content of Product
Disclosure Statement—simple managed
investment scheme 203 1 Length and font size for Product Disclosure Statement for
simple managed investment scheme..............................................203
2 Minimum content of Product Disclosure Statement for
simple managed investment scheme..............................................204
3 Contents of section 1 (About [name of responsible entity]) ..........205
4 Contents of section 2 (How [name of simple managed
investment scheme] works) ...........................................................206
5 Contents of section 3 (Benefits of investing in [name of
simple managed investment scheme]) ...........................................206
6 Contents of section 4 (Risks of managed investment
schemes) ........................................................................................207
7 Contents of section 5 (How we invest your money) ......................208
8 Contents of section 6 (Fees and costs)...........................................211
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x Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
9 Contents of section 7 (How managed investment schemes
are taxed) .......................................................................................213
10 Contents of section 8 (How to apply) ............................................214
Schedule 10D—Persons who are not covered by
section 1433 of the Act 215
Schedule 12—ASIC transitional standards 217
Federal Register of Legislative Instruments F2015C00303
Specified offices Schedule 3
Corporations Regulations 2001 1
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 3—Specified offices (regulation 6.2.02)
Column 1 Column 2 Column 3 Column 4
Item Office Law Jurisdiction
1 Treasurer Commonwealth
2 Trustee Parts IV, X and XI of
the Bankruptcy Act
1966
Commonwealth
3 Chairperson of the
Australian Securities
and Investments
Commission
Australian Securities
and Investments
Commission Act 2001
Commonwealth
4 Deputy Chairperson of
the Australian
Securities and
Investments
Commission
Australian Securities
and Investments
Commission Act 2001
Commonwealth
5 Member of the
Australian Securities
and Investments
Commission
Australian Securities
and Investments
Commission Act 2001
Commonwealth
7 Member of the
Takeovers Panel
Australian Securities
and Investments
Commission Act 2001
Commonwealth
8 Treasurer Western Australia
9 Commissioner for
Corporate Affairs
Western Australia
10 Public Trustee Public Trustee Act
1941
Western Australia
11 Master of the Supreme
Court
Supreme Court Act
1935
Western Australia
12 Registrar of the
Supreme Court
Supreme Court Act
1935
Western Australia
13 Treasurer Victoria
14 Commissioner for
Corporate Affairs
Victoria
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Schedule 3 Specified offices
2 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Column 1 Column 2 Column 3 Column 4
Item Office Law Jurisdiction
15 Public Trustee Public Trustee Act
1958
Victoria
16 Master of the Supreme
Court
Supreme Court Act
1958
Victoria
17 Treasurer New South Wales
18 Public Trustee Public Trustee Act
1913
New South Wales
19 Master Division 1 of Part VIII
of the Supreme Court
Act 1970
New South Wales
20 Supervisor of Loan
Fund Companies
Loan Fund Companies
Act 1976
New South Wales
21 Protective
Commissioner
Mental Health Act
1958
New South Wales
22 Treasurer Queensland
23 Commissioner for
Corporate Affairs
Queensland
24 Public Trustee Public Trustee Act
1978
Queensland
25 Registrar Supreme Court Acts
1861-1980
Queensland
26 Treasurer South Australia
27 Curator of Prisoners
Property
Criminal Law
Consolidation Act
1935-80
South Australia
28 Public Trustee Administration and
Probate Act 1919-1980
South Australia
29 Master or accountant Supreme Court Act
1935-1980
South Australia
30 Administrator Chapter XLIX of the
Criminal Code
Tasmania
31 Treasurer Tasmania
32 Commissioner for
Corporate Affairs
Tasmania
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Specified offices Schedule 3
Corporations Regulations 2001 3
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Column 1 Column 2 Column 3 Column 4
Item Office Law Jurisdiction
33 Public Trustee Public Trustee Office
Act 1930
Tasmania
34 Registrar of the
Supreme Court
Supreme Court Act
1959
Tasmania
35 Treasurer Australian Capital
Territory
36 Public Trustee Administration and
Probate Ordinance
1929 and the Public
Trustee Act 1985
Australian Capital
Territory
37 Registrar of the
Supreme Court
Australian Capital
Territory Supreme
Court Act 1933
Commonwealth
38 Master of the Supreme
Court
Australian Capital
Territory Supreme
Court Act 1933
Commonwealth
39 Treasurer Northern Territory
40 Public Trustee Public Trustee Act
1979
Northern Territory
41 Master of the Supreme
Court
Northern Territory
42 Commissioner for
Corporate Affairs
Companies
(Administration) Act
1986
Northern Territory
Federal Register of Legislative Instruments F2015C00303
Schedule 4 Prescribed amounts
4 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 4—Prescribed amounts (regulation 1.1.01)
Column 1 Column 2 Column 3
Item Matter Amount ($)
1 Inspection of registers for the purposes of:
(a) subsection 173(2) or subsection 672DA (7):
(i) if a register is not kept on a computer—for
each inspection 5.00
(ii) if a register is kept on a computer—for
each inspection a reasonable
amount that does
not exceed the
marginal cost to
the company of
providing an
inspection
1AA Supply of copies for subsection 173(3)
In addition:
250.00
(a) for each member about whom information is
provided in excess of 5 000 members and up to
19 999 members
0.05
(b) for each member about whom information is
provided at 20 000 members or more 0.01
1A Inspection of registers or records for:
(a) subsection 271(3)
(b) subsection 668A(3);
for each inspection 5.00
2 Supply under section 139 by a company to a member
of the company of a copy of the company’s
constitution
10.00
3 Supply of copies for subsection 672DA (8):
(a) if a register is not kept on a computer—for each
page, or part of a page, not exceeding
international sheet size A4 of the copy supplied
or, at the option of the supplier, for each 100
words or part of 100 words
0.50
Federal Register of Legislative Instruments F2015C00303
Prescribed amounts Schedule 4
Corporations Regulations 2001 5
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Column 1 Column 2 Column 3
Item Matter Amount ($)
(b) if a register is kept on a computer—for each
inspection a reasonable
amount that does
not exceed the
marginal cost to
the company of
providing a copy
3A Supply of copies for:
(a) subsection 246G (3)
(b) subsection 251B (4)
(ba) subsection 253N (4)
(c) subsection 271(4)
(d) subsection 812(3)
(e) paragraph 1178(3)(a);
for each page, or part of a page, not exceeding
international sheet size A4 of the copy supplied or, at
the option of the supplier, for each 100 words or part
of 100 words
0.50
4 Payment for each name and address provided under
subsection 641(5)
0.10
5 For compliance with a direction under section 672A 5.00
6 Replacement of lost or destroyed certificate for
paragraph 1070D(4)(a)
10.00
7 Fee for supply by a responsible entity of a copy of
the constitution of a registered scheme under
subsection 601GC(4)
10.00
8 Inspection of register for subsection 919E(3):
(a) if the register is not kept on a computer—for each
inspection 12.50
(b) if the register is kept on a computer—for each
inspection a reasonable
amount that does
not exceed the
marginal cost to
the declared
professional body
of providing an
inspection
Federal Register of Legislative Instruments F2015C00303
Schedule 4 Prescribed amounts
6 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Column 1 Column 2 Column 3
Item Matter Amount ($)
(c) despite paragraphs (a) and (b), if the inspection is
by a member of the declared professional body No fee
9 Making copies of, or taking extracts from, a register
for subsection 919E(3):
(a) if the register is not kept on a computer—for each
page, or part of a page, not exceeding
international sheet size A4 of the copy supplied
or, at the option of the supplier, for each 100
words or part of 100 words
1.25
(b) if a register is kept on a computer—for each copy
or extract a reasonable
amount that does
not exceed the
marginal cost to
the declared
professional body
of providing a
copy or extract
Federal Register of Legislative Instruments F2015C00303
Conduct of auditor—relevant relationships Schedule 5C
Clause 1
Corporations Regulations 2001 7
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 5C—Conduct of auditor—relevant
relationships (regulation 2M.6.05)
1 Money owed—debt
(1) Subclause (2) applies in relation to audit activity in relation to a
financial year that ends on or after the commencement of this
Schedule.
(2) The operation of Chapter 2M of the Act is modified by omitting
subsection 324CH(5) of the Act (including the subheading) and
substituting the following subheading and subsection:
Ordinary course of business exception
(5) For the purposes of item 15 of the table in subsection (1):
(a) disregard a debt owed by an individual to a body corporate or
entity if:
(i) the body corporate or entity is:
(A) an Australian ADI; or
(B) a body corporate registered under the Life
Insurance Act 1995; and
(ii) the debt arose because of a loan that the body corporate
or entity made to the person in the ordinary course of its
ordinary business; and
(iii) the person used the amount of the loan to pay the whole
or part of the purchase price of premises that the person
uses as their principal place of residence; and
(b) disregard a debt owed by the person or firm to a body
corporate or entity if:
(i) the debt is on normal terms and conditions, and arises
from the acquisition of goods or services on normal
trading terms from:
(A) the audited body; or
Federal Register of Legislative Instruments F2015C00303
Schedule 5C Conduct of auditor—relevant relationships
Clause 2
8 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(B) an entity that the audited body controls; or
(C) a related body corporate; and
(ii) the goods or services will be used by the person or firm:
(A) for the personal use of the person or firm; or
(B) in the ordinary course of business of the person
or firm.
2 Money owed—deposit account
(1) Subclause (2) applies in relation to audit activity in relation to a
financial year that ends on or after the commencement of this
Schedule.
(2) The operation of Chapter 2M of the Act is modified by omitting
subsection 324CH(6) of the Act (including the subheading) and
substituting the following subheading and subsection:
Loans by immediate family members and amounts on call
(6) For the purposes of item 16 of the table in subsection (1):
(a) disregard a debt owed to a person by a body corporate or
entity if:
(i) the item applies to the person because the person is an
immediate family member of:
(A) a professional member of the audit team
conducting the audit of the audited body; or
(B) a non-audit services provider; and
(ii) the debt is incurred in the ordinary course of business of
the body corporate or entity; and
(b) disregard an amount owed to the person or firm by the
audited body, a related body corporate or an entity that the
audited body controls if:
(i) the body, body corporate or entity is an Australian ADI;
and
(ii) the amount is in a basic deposit product (within the
meaning of section 761A of the Act) provided by the
body, body corporate or entity; and
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Conduct of auditor—relevant relationships Schedule 5C
Clause 3
Corporations Regulations 2001 9
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(iii) the amount was deposited in the ordinary course of the
business of the audited body, body corporate or entity,
and on the terms and conditions that normally apply to
basic deposit products provided by the body, body
corporate or entity.
3 Public company auditor (annual appointments at AGMs to fill
vacancies)
(1) Subclause (2) applies to:
(a) all companies; and
(b) all registered schemes; and
(c) all disclosing entities;
only in relation to audit activity that is conducted on or after the
commencement of this Schedule.
(2) The operation of Chapter 2M of the Act is modified by omitting
from subsections 327B(2A), (2B) and (2C) of the Act “21 days”
and inserting “21 days, or such longer period as ASIC allows,”.
Federal Register of Legislative Instruments F2015C00303
Schedule 6 Availability of names
Part 1 Rules for ascertaining whether names are identical
10 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 6—Availability of names (regulations 2B.6.01, 2B.6.02, 5B.3.01 and 5B.3.02)
Part 1—Rules for ascertaining whether names are
identical
6101
In comparing one name with another for paragraph 147(1)(a) or (b)
or 601DC(1)(a) or (b) of the Act, the following matters are to be
disregarded:
(a) the use of the definite or indefinite article as the first word in
one or both of those names;
(b) the use of ‘Proprietary’, ‘Pty’, ‘Limited’, ‘Ltd’, ‘No
Liability’ or ‘NL’ in one or both of the names;
(c) whether a word is in the plural or singular number in one or
both names;
(d) the type, size and case of letters, the size of any numbers or
other characters, and any accents, spaces between letters,
numbers or characters, and punctuation marks, used in one or
both names;
(e) the fact that one name contains a word or expression in
column 2 of the following table and the other name contains
an alternative for that word or expression in column 3:
Column 1
Item
Column 2
Word or expression
Column 3
Alternative
1 Australian Aust
2 Company Co or Coy
3 Co Company or Coy
4 Coy Company or Co
5 Number No
6 and &
Federal Register of Legislative Instruments F2015C00303
Availability of names Schedule 6
Rules for ascertaining whether names are identical Part 1
Corporations Regulations 2001 11
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Column 1
Item
Column 2
Word or expression
Column 3
Alternative
7 Incorporated Inc
8 Corporation Corp
9 Australian Company Number ACN
Federal Register of Legislative Instruments F2015C00303
Schedule 6 Availability of names
Part 2 Names unacceptable for registration
12 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 2—Names unacceptable for registration
6203
For paragraph 147(1)(c) or 601DC(1)(c) of the Act, a name is
unacceptable for registration if the name:
(a) in the opinion of ASIC, is undesirable, or likely to be
offensive to:
(i) members of the public; or
(ii) members of any section of the public; or
(b) subject to rule 6204:
(i) contains a word or phrase specified in an item in Part 3,
or an abbreviation of that word or phrase; or
(ii) a word or phrase or an abbreviation having the same or
a similar meaning; or
(c) subject to rule 6205, includes the word ‘Commonwealth’ or
‘Federal’; or
(d) in the context in which it is proposed to be used, suggests a
connection with:
(i) the Crown; or
(ii) the Commonwealth Government; or
(iii) the Government of a State or Territory; or
(iv) a municipal or other local authority; or
(v) the Government of any other part of the Queen’s
dominions, possessions or territories; or
(vi) a department, authority or instrumentality of the
Commonwealth Government; or
(vii) a department, authority or instrumentality of the
Government of a State or Territory; or
(viii) the government of a foreign country;
if that connection does not exist; or
(e) in the context in which it is proposed to be used, suggests a
connection with:
(i) a member of the Royal Family; or
Federal Register of Legislative Instruments F2015C00303
Availability of names Schedule 6
Names unacceptable for registration Part 2
Corporations Regulations 2001 13
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) the receipt of Royal patronage; or
(iii) an ex-servicemen’s organisation; or
(iv) Sir Donald Bradman; or
(v) Mary MacKillop;
if that connection does not exist; or
(f) in the context in which it is proposed to be used, suggests
that the members of an organisation are totally or partially
incapacitated if those members are not so affected.
6204
Paragraph 6203(b) does not apply to:
(a) item 6309, 6312 or 6318 of Part 3 if a word in any of those
items must be included in the name of:
(i) a registrable Australian body; or
(ii) a registered Australian body;
because of the Act under which it is incorporated or
registered; and
(b) item 6314 of Part 3 if the word must be included in the name
of:
(i) a registrable Australian body; or
(ii) a registered Australian body; or
(iii) a registered foreign company; or
(iv) a foreign company;
because of the Act under which it is incorporated or
registered.
6205
Paragraph 6203(c) does not apply if ASIC is satisfied that the word
is used in a geographical context.
Federal Register of Legislative Instruments F2015C00303
Schedule 6 Availability of names
Part 3 Restricted words and phrases
14 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 3—Restricted words and phrases
Column 1 Column 2
Item Word or phrase
6301 Aboriginal Corporation
6302 Aboriginal Council
6304 Chamber of Commerce
6305 Chamber of Manufactures
6306 Chartered
6308 Consumer
6309 Co-operative
6311 Executor
6312 Friendly Society (other than in relation to the conduct of a financial
business)
6312A GST
6312B G.S.T.
6313 Guarantee
6314 Incorporated
6316 Made in Australia
6316A police
6316B policing
6317 R.S.L.
6317A RSL
6318 Starr Bowkett
6319 Stock Exchange
6320 Torres Strait Islander Corporation
6321 Trust
6322 Trustee
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Availability of names Schedule 6
Consent required to use restricted words and phrases Part 4
Corporations Regulations 2001 15
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 4—Consent required to use restricted words
and phrases
Column 1 Column 2 Column 3
Item Word or phrase Minister
6401 Anzac Minister for Veterans’ Affairs
6403 Geneva Cross, Red Crescent, Red
Cross, Red Lion and Sun
Minister for Defence
6405 United Nations Minister for Foreign Affairs
6406 University Minister for Education, Training
and Youth Affairs
Federal Register of Legislative Instruments F2015C00303
Schedule 6 Availability of names
Part 5 Names relating to financial institutions for use of which consent is required
16 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 5—Names relating to financial institutions for
use of which consent is required
Item Letters, word or expression
Public authority,
instrumentality or agency
6501 ADI APRA
6502 authorised deposit-taking institution APRA
6503 bank APRA
6504 banker APRA
6505 banking APRA
6506 building society APRA
6507 credit society APRA
6508 credit union APRA
6509 friendly society (in relation to the
conduct of a financial business)
APRA
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Exemptions from requirements to set out certain corporate particulars Schedule 7
Corporations Regulations 2001 17
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 7—Exemptions from requirements
to set out certain corporate particulars (regulations 2B.6.03 and 5B.3.03)
7001 Definitions for Schedule 7
In this Schedule:
IATA means the International Air Transport Association.
IATA body means a company, registered Australian body or
registered foreign company that is a member of IATA, or
participates in the program conducted by IATA known as BSP
Australia.
relevant information means the information that is required under
subsection 153(2), or paragraph 601DE(1)(b), (c) or (d), of the Act
to be set out on a public document or negotiable instrument.
7002 Exemption for certain IATA documents
An IATA Body is exempt from the requirement to set out the
relevant information on a document if:
(a) it is a document of one of the following kinds:
(i) passenger ticket and baggage check;
(ii) excess baggage ticket;
(iii) agency credit or debit memo;
(iv) credit card charge form;
(v) miscellaneous charges order;
(vi) stopover voucher;
(vii) air waybill; and
(b) either:
(i) it is in a form sponsored by IATA; or
(ii) it is required by IATA to be used by IATA bodies; or
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Schedule 7 Exemptions from requirements to set out certain corporate particulars
18 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(iii) it is a document printed outside Australia exclusively
for use, outside Australia, by or on behalf of that
particular IATA body.
7003 Exemption for bills of lading and sea waybills
The following companies, registered Australian bodies and
registered foreign companies are exempt from the requirement to
set out the relevant information on a bill of lading or sea waybill:
(a) Austrident Shipping Agency Pty Ltd;
(b) ANL Limited;
(c) Bakke-WA Pty Limited;
(d) Blue Star Line Limited;
(e) Blue Star PACE Limited;
(f) CSR Limited;
(g) Dalgety Australia Operations Limited;
(h) Five Star Shipping & Agency Company Pty Ltd;
(i) Jebsens International (Australia) Pty Ltd;
(j) ‘K’ Line (Australia) Pty Limited;
(k) Nedlloyd Australia Pty Ltd;
(l) OOCL (Australia) Pty Limited;
(m) Opal Maritime Agencies Pty Limited;
(n) Patrick Sleigh Shipping Agencies Pty Limited;
(o) Tasman Express Line Limited;
(p) Wilhelmsen Lines Australia Pty Ltd;
(q) Wills Shipping Pty Limited.
7004 Exemptions—quotation of ACNs and ARBNs
(1) A company is exempt from the requirement to set out the relevant
information on a public document, or a negotiable instrument, of
the company if:
(a) the company is registered on the Australian Business
Register; and
(b) the last 9 digits of its ABN are the same, and in the same
order, as the last 9 digits of its ACN; and
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Exemptions from requirements to set out certain corporate particulars Schedule 7
Corporations Regulations 2001 19
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) ‘Australian Business Number’ or ‘ABN’ is displayed with
the name of the company, or with 1 of the references to that
name:
(i) in the case of a document or instrument in which the
name appears on only 1 page—on that page; and
(ii) in the case of a document or instrument in which the
name appears on 2 or more pages—on the first of those
pages.
(2) A registered Australian body or registered foreign body is exempt
from the requirement to set out information mentioned in
paragraph 601DE(1)(b) and subsection 601DE(2) of the Act on a
public document, or a negotiable instrument, of the registered body
or foreign company if:
(a) the body or company is also registered on the Australian
Business Register; and
(b) the last 9 digits of its ABN are the same, and in the same
order, as the last 9 digits of its ARBN; and
(c) ‘Australian Business Number’ or ‘ABN’ is displayed with
the name of the body or company, or with 1 of the references
to that name:
(i) in the case of a document or instrument in which the
name appears on only 1 page—on that page; and
(ii) in the case of a document or instrument in which the
name appears on 2 or more pages—on the first of those
pages.
Federal Register of Legislative Instruments F2015C00303
Schedule 7A Content of annual transparency report
Part 1 Interpretation for Schedule 7A
20 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 7A—Content of annual
transparency report (subregulation 2M.4A.02(1))
Part 1—Interpretation for Schedule 7A
7A101 Interpretation
In this Schedule:
management body, for an authorised audit company, means the
Board of Directors.
relevant transparency reporting year means the transparency
reporting year to which an annual transparency report relates.
Note 1: Many terms and expressions used in this Schedule have the meaning
given by the Act. For example:
annual transparency report
audit
audit activity
audit firm
authorised audit company
director
engage in audit activity
financial year
individual auditor
non-audit services provider
professional accounting body
professional member of an audit team
remuneration
transparency reporting auditor
transparency reporting year.
Note 2: See regulation 2M.4A.01 for an application provision that, read in
combination with regulation 2M.4A.02, is relevant to Schedule 7A.
Federal Register of Legislative Instruments F2015C00303
Content of annual transparency report Schedule 7A
Prescribed information for audit firm or authorised audit company Part 2
Corporations Regulations 2001 21
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 2—Prescribed information for audit firm or
authorised audit company
Item Information
7A201 A description of the transparency reporting auditor’s:
(a) legal structure; and
(b) ownership
7A202 If the transparency reporting auditor belongs to a network, a description
of:
(a) the network; and
(b) the legal arrangements of the network; and
(c) the structural arrangements of the network
7A203 A description of the transparency reporting auditor’s governance
structure
7A204 A description of the transparency reporting auditor’s internal quality
control system
7A205 A statement by the transparency reporting auditor’s administrative body
or management body on the effectiveness of the functioning of the
transparency reporting auditor’s internal quality control system in the
relevant transparency reporting year
7A206 The name of each body that is authorised to review the transparency
reporting auditor (for example, ASIC or a professional accounting body)
and the date of the most recent review of the transparency reporting
auditor conducted by the body
7A207 The names of bodies of the kinds mentioned in subsection 332A(1) of the
Act for which the transparency reporting auditor conducted an audit
under Division 3 of Part 2M.3 of the Act in the relevant transparency
reporting year
7A208 A statement about the transparency reporting auditor’s independence
practices in the relevant transparency reporting year, including the date
on which the transparency reporting auditor most recently conducted an
internal review of its independence compliance
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Schedule 7A Content of annual transparency report
Part 2 Prescribed information for audit firm or authorised audit company
22 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item Information
7A209 A statement about the policy that the transparency reporting auditor
follows regarding the minimum amount and nature of continuing or other
professional education that professional members of an audit team must
undertake during the relevant transparency reporting year
7A210 Financial information for the transparency reporting auditor that relates to
the relevant transparency reporting year, including:
(a) total revenue; and
(b) revenue relating to:
(i) audits of financial statements conducted by the transparency
reporting auditor; and
(ii) other services provided by the transparency reporting auditor
7A211 Information concerning the basis for remuneration of:
(a) the audit firm’s partners; or
(b) the authorised audit company’s directors
Federal Register of Legislative Instruments F2015C00303
Content of annual transparency report Schedule 7A
Prescribed information for individual auditor Part 3
Corporations Regulations 2001 23
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 3—Prescribed information for individual
auditor
Item Information
7A301 If the transparency reporting auditor belongs to a network, a description
of:
(a) the network; and
(b) the legal arrangements of the network; and
(c) the structural arrangements of the network
7A302 A description of the transparency reporting auditor’s internal quality
control system
7A303 The name of each body that is authorised to review the transparency
reporting auditor (for example, ASIC or a professional accounting body)
and the date of the most recent review of the transparency reporting
auditor conducted by the body
7A304 The names of bodies of the kinds mentioned in subsection 332A(1) of the
Act for which the transparency reporting auditor conducted an audit
under Division 3 of Part 2M.3 of the Act in the relevant transparency
reporting year
7A305 A statement that sets out the transparency reporting auditor’s
independence practices in the relevant transparency reporting year
7A306 Financial information for the transparency reporting auditor that relates to
the relevant transparency reporting year, including:
(a) total revenue; and
(b) revenue relating to:
(i) audits of financial statements conducted by the transparency
reporting auditor; and
(ii) other services provided by the transparency reporting auditor
Federal Register of Legislative Instruments F2015C00303
Schedule 8 Schemes of arrangement under Part 5.1 of the Act
Chapter 5 External administration
Part 1 Interpretation and application
24 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 8—Schemes of arrangement under
Part 5.1 of the Act (regulation 5.1.01)
Chapter 5—External administration
Part 1—Interpretation and application
8101 In this Schedule:
internal creditor means:
(a) a creditor who is a member of the company; or
(b) a relative or spouse of a member; or
(c) a relative of the spouse of a member.
Scheme means the proposed compromise or arrangement.
scheme creditors means the creditors or class of creditors of a
company, to whom the Scheme would apply.
scheme members means the members or class of members of a
company, to whom the Scheme would apply.
8102 This Schedule applies to a Part 5.1 body that is not a company as
if:
(a) references to a company were references to a Part 5.1 body
that is not a company; and
(b) references to a director were references to an office bearer,
committee member or other office holder of the body; and
(c) references to entitlements to voting shares were references to
an ability to exercise a percentage of the total votes that could
be exercised by members of the body.
Federal Register of Legislative Instruments F2015C00303
Schemes of arrangement under Part 5.1 of the Act Schedule 8
External administration Chapter 5
Prescribed information relating to proposed compromise or arrangement with creditors
or class of creditors Part 2
Corporations Regulations 2001 25
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 2—Prescribed information relating to proposed
compromise or arrangement with creditors or
class of creditors
8201 The statement must set out:
(a) the expected dividend that would be available to scheme
creditors if the company were to be wound up within 6
months after the date of the hearing of the application to the
Court for an order under subsections 411(1) and (1A) of the
Act; and
(b) if a composition of debts is proposed—the expected dividend
that would be paid to scheme creditors if the Scheme were
put into effect as proposed; and
(c) a list of the names of all known scheme creditors and the
debts owed to those creditors; and
(d) if a scheme creditor is known to be a guaranteed creditor—
the name of the creditor and the amount of the debt owed;
and
(e) if a scheme creditor is known to be an internal creditor—the
name of the creditor and the amount of the debt owed.
8202 The statement must contain a statement that an order under
subsections 411(1) and (1A) of the Act is not anendorsement of, or
any other expression of opinion on, the Scheme.
8203 The statement must contain or have annexed to it:
(a) a report on the affairs of the company in accordance with
Form 507, showing the financial position of the company as
at a day within one month of the date on which it is intended
to apply to the Court for an order under subsections 411(1)
and (1A) of the Act;
(b) a copy, certified by a director or by a secretary of the
company to be a true copy, of all financial statements,
required to be lodged with the ASIC by the company,
together with a copy of every document required by law to be
annexed to the financial statements;
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Schedule 8 Schemes of arrangement under Part 5.1 of the Act
Chapter 5 External administration
Part 2 Prescribed information relating to proposed compromise or arrangement with
creditors or class of creditors
26 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) if the company the subject of the Scheme is a trustee, a
statement:
(i) of the number of trusts administered by the trustee; and
(ii) whether the trustee carries on any business separate
from that of the trust; and
(iii) how the scheme creditors may obtain a copy of the
relevant trust deed, free of charge, prior to the date of
the meeting; and
(d) if the person (if any) who would be appointed to manage the
Scheme proposes to charge for his or her services and for the
services of his or her staff in accordance with a particular
scale of charges, that scale of charges.
Federal Register of Legislative Instruments F2015C00303
Schemes of arrangement under Part 5.1 of the Act Schedule 8
External administration Chapter 5
Prescribed information relating to proposed compromise or arrangement with members
or a class of members Part 3
Corporations Regulations 2001 27
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 3—Prescribed information relating to proposed
compromise or arrangement with members or a
class of members
8301 The statement must set out:
(a) unless the company the subject of the Scheme is in the course
of being wound up or is under official management, in
relation to each director of the company:
(i) whether the director recommends the acceptance of the
Scheme or recommends against acceptance and, in
either case, his or her reasons for so recommending; or
(ii) if the director is not available to consider the Scheme—
that the director is not so available and the cause of his
or her not being available; or
(iii) in any other case—that the director does not desire to
make, or does not consider himself or herself justified in
making, a recommendation and, if the director so
requires, his or her reasons for not wishing to do so; or
(b) if the company is in the course of being wound up or is under
official management—in relation to each liquidator or each
official manager:
(i) whether he or she recommends acceptance of the
Scheme or recommends against acceptance and, in
either case, his or her reasons for so recommending; or
(ii) in any other case—that the liquidator or official
manager does not wish to make a recommendation and
his or her reasons for not wishing to do so.
8302 The statement must set out:
(a) the number, description and amount of marketable securities
of the company the subject of the Scheme held by or on
behalf of each director of the company or, if none are held by
or on behalf of a director, a statement to that effect; and
(b) for each director of the company by whom or on whose
behalf shares in that company are held, whether:
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Schedule 8 Schemes of arrangement under Part 5.1 of the Act
Chapter 5 External administration
Part 3 Prescribed information relating to proposed compromise or arrangement with
members or a class of members
28 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) the director intends to vote in favour of, or against, the
Scheme; or
(ii) the director has not decided whether he or she will vote
in favour of, or against, the Scheme; and
(c) if the other party to the proposed reconstruction or
amalgamation is, or includes, a corporation, whether any
marketable securities of the corporation are held by, or on
behalf of, any director of the company the subject of the
Scheme and, if so, the number, description and amount of
those marketable securities; and
(d) particulars of any payment or other benefit that is proposed
to:
(i) be made or given to any director, secretary or executive
officer of the company the subject of the Scheme as
compensation for loss of, or as consideration for or in
connection with his or her retirement from, office in that
company or in a related body corporate; or
(ii) be made or given to any director, secretary or executive
officer of any related body corporate as compensation
for the loss of, or as consideration for or in connection
with his or her retirement from, office in that body
corporate or in the company the subject of the Scheme;
and
(e) if there is any other agreement or arrangement made between
a director of the company the subject of the Scheme and
another person in connection with or conditional on the
outcome of the Scheme—particulars of the agreement or
arrangement; and
(f) if the object of the Scheme is for a corporation to acquire
control of another corporation that is a company, particulars
of the nature and extent of any interest of a director of that
company in any contract entered into by the corporation
seeking control; and
(g) if the shares of the company the subject of the Scheme are
not granted official quotation on a securities exchange, all the
information that the company has as to the number of shares
Federal Register of Legislative Instruments F2015C00303
Schemes of arrangement under Part 5.1 of the Act Schedule 8
External administration Chapter 5
Prescribed information relating to proposed compromise or arrangement with members
or a class of members Part 3
Corporations Regulations 2001 29
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
that have been sold in the 6 months immediately before the
date on which the statement is lodged, the amount of those
shares and the prices at which they were sold; and
(h) whether, within the knowledge of the directors of the
company the subject of the Scheme, or, if the company is in
liquidation or under official management, the knowledge of
the liquidator or the official manager, the financial position
of the company has materially changed since the date of the
last balance sheet laid before the company in general meeting
or sent to shareholders in accordance with section 314 or 317
of the Act and, if so, full particulars of any change; and
(i) any other information material to the making of a decision in
relation to the Scheme, being information that is within the
knowledge of any director, liquidator or official manager of a
company the subject of the Scheme or of a related company
and that has not previously been disclosed to the Scheme
members.
8303 If:
(a) the other party to the proposed reconstruction or
amalgamation of the company the subject of the Scheme has
a prescribed shareholding in the company; or
(b) a director of any corporation that is the other party to the
proposed reconstruction or amalgamation is a director of a
company the subject of the Scheme;
the statement must be accompanied by a copy of a report made by
an expert who is not associated with the corporation that is the
other party, stating whether or not, in his or her opinion, the
proposed Scheme is in the best interest of the members of the
company the subject of the Scheme and setting out his or her
reasons for that opinion.
8304 If the company the subject of the Scheme obtains 2 or more
reports, each of which could be used for clause 3, the statement
must be accompanied by a copy of each report.
8305 If:
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Schedule 8 Schemes of arrangement under Part 5.1 of the Act
Chapter 5 External administration
Part 3 Prescribed information relating to proposed compromise or arrangement with
members or a class of members
30 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the company the subject of the Scheme obtains a report for
clause 3; and
(b) the report contains:
(i) a forecast of the profits or profitability of the company;
or
(ii) a statement that the market value of an asset or assets of
the company or of a related body corporate differs from
an amount at which the value of the asset or assets is
shown in the books of the company or the related body
corporate;
that report must not accompany the statement except with the
consent in writing of ASIC and in accordance with such conditions
(if any) as are stated by ASIC.
8306 For clause 3:
(a) a person has a prescribed shareholding in a company if he or
she is entitled to not less than 30% of the voting shares in the
company; and
(b) a person has a prescribed shareholding in a company in
which the voting shares are divided into 2 or more classes of
shares, if he or she is entitled to not less than 30% of the
shares in one of those classes.
8307 If the consideration to be offered to scheme members consists, in
whole or in part, of marketable securities issued, or to be issued, by
a corporation, the statement must set out the formula to be applied
to find out the number of marketable securities to be issued to each
scheme member, and the basis on which that formula was
developed.
8308 If marketable securities of the same class as those mentioned in
clause 7 are granted official quotation on a securities exchange, the
statement must state the fact, specify the securities exchange
concerned, and set out:
(a) the latest recorded sale price before the date on which the
statement is lodged for registration; and
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Schemes of arrangement under Part 5.1 of the Act Schedule 8
External administration Chapter 5
Prescribed information relating to proposed compromise or arrangement with members
or a class of members Part 3
Corporations Regulations 2001 31
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the highest and lowest recorded sale prices during the 3
months immediately before that date and the dates of the
relevant sales; and
(c) if the Scheme has been the subject of a public announcement
in newspapers or by any other means before the statement
has been registered by ASIC—the latest recorded sale price
immediately before the public announcement.
8309 (1) If the marketable securities mentioned in clause 8 are granted
official quotation on more than one securities exchange, it is
sufficient compliance with paragraphs 8(a) and (c) if information
on the marketable securities is given for the securities exchange at
which there has been the greatest number of recorded dealings in
the securities in the 3 months immediately before the date on
which the statement is lodged for registration.
(2) If the securities have not been granted official quotation on a
securities exchange, the statement must set out all the information
that a director, liquidator or official manager of the company the
subject of the Scheme or of a related body corporate has about the
number of securities that have been sold in the 3 months
immediately before the date on which the explanatory statement
was prepared and the price of those securities or, if that
information or any part of that information cannot be ascertained, a
statement to that effect.
8310 The statement must set out particulars of the intentions of the
directors of the company the subject of the Scheme regarding:
(a) the continuation of the business of the company or, if the
undertaking, or any part of the undertaking, of a company is
to be transferred, how that undertaking or part is to be
conducted in the future; and
(b) any major changes to be made to the business of the
company, including any redeployment of the fixed assets of
the company; and
(c) the future employment of the present employees of the
company.
Federal Register of Legislative Instruments F2015C00303
Schedule 8 Schemes of arrangement under Part 5.1 of the Act
Chapter 5 External administration
Part 4 Prescribed information relating to proposed compromise or arrangement with
members or class of members for transfer to a trustee
32 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 4—Prescribed information relating to proposed
compromise or arrangement with members or
class of members for transfer to a trustee
8401 The statement must set out:
(a) in detail, the basis on which units in the unit trust are to be
issued to scheme members; and
(b) if the issue of units in the unit trust is based on the asset
backing of shares held by scheme members—full valuation
details of those assets.
8402 A copy of the trust deed must be annexed, or set out in a schedule,
to the statement.
8403 If the effect of the proposed compromise or arrangement will be
the merger of 2 companies without substantial common
membership, the explanatory statement must, so far as practicable,
state the matters, and be accompanied by the documents and
reports, mentioned in Part 3.
Federal Register of Legislative Instruments F2015C00303
Deed of company arrangement—prescribed provisions Schedule 8A
Clause 1
Corporations Regulations 2001 33
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 8A—Deed of company
arrangement—prescribed provisions (regulation 5.3A.06)
1 Administrator deemed agent of company
In exercising the powers conferred by this deed and carrying out
the duties arising under this deed, the administrator is taken to act
as agent for and on behalf of the company.
2 Powers of administrator
For the purpose only of administering this deed, the administrator
has the following powers:
(a) to enter upon or take possession of the property of the
company;
(b) to lease or let on hire property of the company;
(c) to grant options over property of the company on such
conditions as the administrator thinks fit;
(d) to insure property of the company;
(e) to repair, renew or enlarge property of the company;
(f) to call in, collect or convert into money the property of the
company;
(g) to administer the assets available for the payment of claims
of creditors in accordance with the provisions of this deed;
(h) to purchase, hire, lease or otherwise acquire any property or
interest in property from any person or corporation;
(i) to borrow or raise money, whether secured upon any or all of
the assets of the company or unsecured, for any period on
such terms as the administrator thinks fit and whether in
substitution for any existing security or otherwise;
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Schedule 8A Deed of company arrangement—prescribed provisions
Clause 2
34 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(j) to bring, prosecute and defend in the name and on behalf of
the company or in the name of the administrator any actions,
suits or proceedings;
(k) to refer to arbitration any question affecting the company;
(l) to make payments to any secured creditor of the company
and any person who is the owner or lessor of property
possessed used or occupied by the company;
(m) to convene and hold meetings of the members or creditors of
the company for any purpose the administrator thinks fit;
(n) to make interim or other distributions of the proceeds of the
realisation of the assets available for the payment of claims
of creditors as provided in this deed;
(o) to appoint agents to do any business or to attend to any
matter or affairs of the company that the administrator is
unable to do, or that it is unreasonable to expect the
administrator to do, in person;
(p) to engage or discharge employees on behalf of the company;
(q) to appoint a solicitor, accountant or other professionally
qualified person to assist the administrator;
(r) to permit any person authorised by the administrator to
operate any account in the name of the company;
(s) to sell, call in or convert into money any of the property of
the company, to apply the money in accordance with this
deed and otherwise effectively and properly to carry out his
or her duties as administrator;
(t) to do all acts and execute in the name and on behalf of the
company all deeds, receipts and other documents, using the
company’s common or official seal when necessary;
(u) subject to the Bankruptcy Act 1966, to prove in the
bankruptcy of any contributory or debtor of the company or
under any deed executed under that Act;
(v) subject to the Act, to prove in the winding up of any
contributory or debtor of the company or under any scheme
of arrangement entered into, or deed of company
arrangement executed, under the Act;
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Deed of company arrangement—prescribed provisions Schedule 8A
Clause 2
Corporations Regulations 2001 35
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(w) to draw, accept, make or endorse any bill of exchange or
promissory note in the name and on behalf of the company;
(x) to take out letters of administration of the estate of a deceased
contributory or debtor, and do any other act necessary for
obtaining payment of any money due from a contributory or
debtor, or the estate of a contributory or debtor, that cannot
be conveniently done in the name of the company;
(y) to bring or defend an application for the winding up of the
company;
(z) to carry on the business of the company on such terms and
conditions and for such purposes and times and in such
manner as the administrator thinks fit subject only to the
limitations imposed by this deed;
(za) to sell any or all of the property of the company including the
whole of the business or undertaking of the company at any
time the administrator thinks fit, either by public auction or
by private contract and either for a lump sum or for a sum
payable by instalments or for a sum on account and to obtain
a mortgage charge or encumbrance for the balance or
otherwise;
(zb) to close down the whole or any part of any business of the
company;
(zc) to enter into and complete any contract for the sale of shares
in the company;
(zd) to compromise any debts or claims brought by or against the
company on such terms as the administrator thinks fit and to
take security for the discharge of any debt forming part of the
property of the company;
(ze) to pay any class of creditors in full, subject to Subdivision D
of Division 6 of Part 5.6 of the Act;
(zf) to do anything that is incidental to exercising a power set out
in this clause;
(zg) to do anything else that is necessary or convenient for the
purpose of administering this deed.
Federal Register of Legislative Instruments F2015C00303
Schedule 8A Deed of company arrangement—prescribed provisions
Clause 3
36 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
3 Termination of deed where arrangement fails
If the administrator or the committee of inspection determines that
it is no longer practicable or desirable either to continue to carry on
the business of the company or to implement this deed, the
administrator:
(a) may cease to carry on the business of the company except so
far as is necessary for the beneficial winding up of the
company;
(b) must summon a meeting of creditors for the purpose of
passing a resolution under section 445C(b) of the Act; and
(c) must forward to each creditor not less than 14 days prior to
the meeting an up-to-date report as to the position of the
company accompanied by such financial statements as the
administrator thinks fit, together with a statement that he or
she does not think it practicable or desirable to carry on the
business of the company or to continue this deed and that this
deed will be terminated if the company’s creditors resolve.
4 Priority
The administrator must apply the property of the company coming
under his or her control under this deed in the order of priority
specified in section 556, 560 or 561 of the Act.
5 Discharge of debts
The creditors must accept their entitlements under this deed in full
satisfaction and complete discharge of all debts or claims which
they have or claim to have against the company as at the day when
the administration began and each of them will, if called upon to
do so, execute and deliver to the company such forms of release of
any such claim as the administrator requires.
Federal Register of Legislative Instruments F2015C00303
Deed of company arrangement—prescribed provisions Schedule 8A
Clause 6
Corporations Regulations 2001 37
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
6 Claims extinguished
If the administrator has paid to the creditors their full entitlements
under this deed, all debts or claims, present or future, actual or
contingent, due or which may become due by the company as a
result of anything done or omitted by or on behalf of the company
before the day when the administration began and each claim
against the company as a result of anything done or omitted by or
on behalf of the company before the day when the administration
began is extinguished.
7 Bar to creditors’ claims
Subject to section 444D of the Act this deed may be pleaded by the
company against any creditor in bar of any debt or claim that is
admissible under this deed and a creditor (whether the creditor’s
debt or claim is or is not admitted or established under this deed)
must not, before the termination of this deed:
(a) take or concur in the taking of any step to wind up the
company; or
(b) except for the purpose and to the extent provided in this deed,
institute or prosecute any legal proceedings in relation to any
debt incurred or alleged to have been incurred by the
company before the day when the administration began; or
(c) take any further step (including any step by way of legal or
equitable execution) in any proceedings pending against or in
relation to the company at the day when the administration
began; or
(d) exercise any right of set-off or cross-action to which the
creditor would not have been entitled had the company been
wound up at the day when the administration began; or
(e) commence or take any further step in any arbitration against
the company or to which the company is a party.
Federal Register of Legislative Instruments F2015C00303
Schedule 8A Deed of company arrangement—prescribed provisions
Clause 8
38 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
8 Making claims
(1) Subdivisions A, B, C and E of Division 6 of Part 5.6 of the
Corporations Act 2001 apply to claims made under this deed as if
the references to the liquidator were references to the administrator
of this deed.
(2) For subclause (1), the remainder of that Act, and the Corporations
Regulations 2001, are taken to apply, as far as practicable, as if:
(a) a reference that is relevant to the liquidator were a reference
in a form that is applicable to the administrator; and
(b) a reference that is relevant to any other matter relating to
liquidation were a reference in a form that is applicable to the
administration of this deed; and
(c) a reference to a relevant date were a reference to the date of
the administrator’s appointment .
10 Lodging of accounts
Section 434 of the Act applies to the administrator as if the
reference to a controller were a reference to the administrator of
this deed.
11 Committee of inspection
For the purpose of advising and assisting the administrator of this
deed, there may be a committee of inspection (the committee) to
which the following rules apply:
(a) the committee must consist of at least 3 and not more than 5
members;
(b) the creditors must appoint the members in a general meeting;
(c) a creditor is not entitled to have more than one representative
(including the creditor himself or herself, if a natural person)
on the committee;
(d) minutes of all resolutions and proceedings of each meeting of
the committee must be made and duly entered in books to be
Federal Register of Legislative Instruments F2015C00303
Deed of company arrangement—prescribed provisions Schedule 8A
Clause 12
Corporations Regulations 2001 39
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
provided from time to time for that purpose by the
administrator under this deed;
(e) if the minutes of a meeting purport to be signed by the
chairperson of the meeting at which the resolutions were
passed or proceedings taken or by the chairperson of the next
meeting of the committee, the minutes are prima facie
evidence of the matters contained in them;
(f) unless the contrary is proved, the meeting is taken to have
been duly had and convened and all resolutions passed and
proceedings taken at the meeting are taken to have been duly
passed and taken;
(g) a corporation (being otherwise qualified for membership of
the committee) is not entitled to be a member of the
committee but may appoint a person to represent it on the
committee;
(h) subsection 548(3) and sections 549, 550 and 551 of the Act
apply, with such modifications as are necessary, to a
committee of inspection established under this deed as if the
references to the liquidator were references to the
administrator of this deed and the references to contributories
were deleted.
12 Termination of deed where arrangement achieves purpose
If the administrator has applied all of the proceeds of the
realisation of the assets available for the payment of creditors or
has paid to the creditors the sum of 100 cents in the dollar or any
lesser sum determined by the creditors at a general meeting, the
administrator must certify to that effect in writing and must within
28 days lodge with ASIC a notice of termination of this deed in the
following form:
‘X PTY LIMITED
Federal Register of Legislative Instruments F2015C00303
Schedule 8A Deed of company arrangement—prescribed provisions
Clause 12
40 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
I, (insert name and address) as administrator of the deed of
company arrangement executed on (insert date), CERTIFY that the
deed has been wholly effectuated.’,
and the execution of the notice terminates this deed, but nothing in
this clause relieves the administrator of his or her obligations under
clause 10 of this deed.
Federal Register of Legislative Instruments F2015C00303
Trustee companies Schedule 8AA
Corporations Regulations 2001 41
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 8AA—Trustee companies (regulation 5D.1.01)
Item Trustee companies
1 ANZ Trustees (Canberra) Limited
2 ANZ Trustees Limited
3 Australian Executor Trustees Limited
4 Australian Executor Trustees (Canberra) Limited
5 Australian Executor Trustees (NSW) Limited
6 Australian Executor Trustees (SA) Limited
7 Bagot’s Executor and Trustee Company Limited
8 Elders Trustees Limited
9 Equity Trustees Limited
10 Executor Trustee Australia Limited
11 Mutual Trust Pty Ltd
12 National Australia Trustees Limited
14 Perpetual Limited
15 Perpetual Trustee Company (Canberra) Limited
16 Perpetual Trustee Company Limited
17 Perpetual Trustees Consolidated Limited
18 Perpetual Trustees Queensland Limited
19 Perpetual Trustees S.A. Limited
20 Perpetual Trustees Victoria Limited
21 Perpetual Trustees W.A. Limited
22 Plan B Trustees Limited
23 Sandhurst Trustees Limited
24 Tasmanian Perpetual Trustees Limited
25 The Myer Family Company Ltd
26 The Trust Company Limited
27 The Trust Company (Australia) Limited
27A The Trust Company (PTCCL) Limited
Federal Register of Legislative Instruments F2015C00303
Schedule 8AA Trustee companies
42 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item Trustee companies
28 The Trust Company (UTCCL) Limited
Federal Register of Legislative Instruments F2015C00303
Prescribed State and Territory provisions for paragraph 601RAE (4)(a) of the Act
Schedule 8AB
Corporations Regulations 2001 43
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 8AB—Prescribed State and
Territory provisions for
paragraph 601RAE (4)(a) of the Act (subregulation 5D.1.04(1))
Item State or Territory law and provisions
1 Trustee Companies Act 1984 (Vic), sections 40–42
2 Trustee Companies Act 1987 (WA), Part IV and section 34
3 Trustee Companies Act 1988 (SA), sections 15–15B and 19–21
4 Trustee Companies Act 1953 (Tas), subsections 18C (1), (3)–(13)
5 Companies (Trustees and Personal Representatives) Act (NT), section 25
Federal Register of Legislative Instruments F2015C00303
Schedule 8AC Prescribed State and Territory laws and provisions for paragraph
601RAE(4)(b) of the Act—estate administration
44 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 8AC—Prescribed State and
Territory laws and provisions for
paragraph 601RAE(4)(b) of the Act—
estate administration (subregulation 5D.1.04(2) and subregulation 7.6.02(6))
Item State or Territory law and provisions
1 Children and Young Persons (Care and Protection) Act 1998 (NSW)
2 Guardianship Act 1987 (NSW)
3 NSW Trustee and Guardian Act 2009 (NSW)
4 Victorian Civil and Administrative Tribunal Act 1998 (Vic), Part 9 of
Schedule 1
5 Guardianship and Administration Act 1986 (Vic)
6 Guardianship and Administration Act 2000 (Qld)
7 Guardianship and Administration Act 1990 (WA)
8 Guardianship and Administration Act 1993 (SA)
9 Guardianship of Infants Act 1940 (SA)
10 Guardianship and Administration Act 1995 (Tas)
11 Guardianship and Custody of Infants Act 1934 (Tas)
12 Guardianship and Management of Property Act 1991 (ACT)
13 Testamentary Guardianship Act 1984 (ACT)
14 Adult Guardianship Act (NT)
15 Guardianship of Infants Act (NT)
Federal Register of Legislative Instruments F2015C00303
Prescribed State and Territory laws and provisions for paragraph 601RAE(4)(b) of the
Act Schedule 8AD
Corporations Regulations 2001 45
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 8AD—Prescribed State and
Territory laws and provisions for
paragraph 601RAE(4)(b) of the Act (subregulation 5D.1.04(3))
Item State or Territory law and provisions
NEW SOUTH WALES
1A Legal Profession Act 2004 and any regulations made under that Act
1 Probate and Administration Act 1898 and any regulations made under that
Act
2 NSW Trustee and Guardian Act 2009 and any regulations made under that
Act
3 Trustee Act 1925 and any regulations made under that Act
4 Trustee Companies Act 1964 and any regulations made under that Act
VICTORIA
5 Administration and Probate Act 1958 and any regulations made under that
Act
6 Guardianship and Administration Act 1986 and any regulations made
under that Act
7 Instruments Act 1958 and any regulations made under that Act
7A Legal Profession Act 2004 and any regulations made under that Act
8 Medical Treatment Act 1988 and any regulations made under that Act
9 State Trustees (State Owned Company) Act 1994 and any regulations
made under that Act
10 Trustee Act 1958 and any regulations made under that Act
QUEENSLAND
11 Guardianship and Administration Act 2000 and any regulations made under
that Act
12 Legal Profession Act 2007 and any regulations made under that Act
13 Public Trustee Act 1978 and any regulations made under that Act
14 Succession Act 1981 and any regulations made under that Act
15 Trustee Companies Act 1968 and any regulations made under that Act
Federal Register of Legislative Instruments F2015C00303
Schedule 8AD Prescribed State and Territory laws and provisions for paragraph
601RAE(4)(b) of the Act
46 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item State or Territory law and provisions
16 Trusts Act 1973 and any regulations made under that Act
17 Uniform Civil Procedure Rules 1999, Chapter 15 and rule 94
WESTERN AUSTRALIA
18 Guardianship and Administration Act 1990 and any regulations made under
that Act
18A Legal Profession Act 2008 and any regulations made under that Act
18B Public Trustee Act 1941 and any regulations made under that Act
19 Trustees Act 1962 and any regulations made under that Act
SOUTH AUSTRALIA
20 Administration and Probate Act 1919 and any regulations made under that
Act
21 Aged and Infirm Persons’ Property Act 1940 and any regulations made
under that Act
22 Guardianship and Administration Act 1993 and any regulations made under
that Act
23 Legal Practitioners Act 1981 and any regulations made under that Act
24 Public Trustee Act 1995 and any regulations made under that Act
25 Trustee Act 1936 and any regulations made under that Act
25A Trustee Companies Act 1988 and any regulations made under that Act
TASMANIA
26 Administration and Probate Act 1935 and any regulations made under that
Act
26A Legal Profession Act 2007 and any regulations made under that Act
26B Public Trustee Act 1930 and any regulations made under that Act
27 Supreme Court Civil Procedure Act 1932 and any regulations made under
that Act
28 Trustee Act 1898 and any regulations made under that Act
AUSTRALIAN CAPITAL TERRITORY
29 Administration and Probate Act 1929 and any regulations made under that
Act
30 Court Procedures Act 2004 and any regulations made under that Act
31 Guardianship and Management of Property Act 1991 and any regulations
made under that Act
Federal Register of Legislative Instruments F2015C00303
Prescribed State and Territory laws and provisions for paragraph 601RAE(4)(b) of the
Act Schedule 8AD
Corporations Regulations 2001 47
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item State or Territory law and provisions
32 Legal Profession Act 2006 and any regulations made under that Act
33 Trustee Act 1925 and any regulations made under that Act
34 Trustee Companies Act 1947 and any regulations made under that Act
NORTHERN TERRITORY
35 Aged and Infirm Persons’ Property Act and any regulations made under that
Act
36 Public Trustee Act and any regulations made under that Act
Federal Register of Legislative Instruments F2015C00303
Schedule 8AE Relevant State and Territory provisions
48 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 8AE—Relevant State and Territory
provisions (regulation 5D.2.06)
Item State or Territory provisions
1 Trustee Act 1925 (NSW), Part 2, Division 2
2 Trustee Act 1958 (Vic), Part I
3 Trusts Act 1973 (Qld), Part 3
4 Trustees Act 1962 (WA), Part III
5 Trustee Act 1936 (SA), Part 1
6 Trustee Act 1898 (Tas), Part II
7 Trustee Act 1925 (ACT), Part 2, Subdivision 2.2.1
8 Trustee Act (NT), Part I
Federal Register of Legislative Instruments F2015C00303
Option contract—prescribed indexes Schedule 8B
Corporations Regulations 2001 49
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 8B—Option contract—prescribed
indexes (regulation 7.1.03)
1 All Ordinaries Accumulation Index
2 CAC 40 Index
3 Deutscher Aktienindex (DAX)
4 Dow Jones Asia-Pacific Extra Liquid Series—Australia Equity
Index
5 Dow Jones Asia-Pacific Extra Liquid Series—Hong Kong Equity
Index
6 Dow Jones Asia-Pacific Extra Liquid Series—Japan Equity Index
7 Dow Jones Asia-Pacific Extra Liquid Series—Pan Pacific Equity
Index
8 Dow Jones Composite
9 Dow Jones Euro STOXX 50 Index
10 Dow Jones Global Titans 50 Index
11 Dow Jones Industrial Average Index
12 Dow Jones STOXX 50
13 FT-SE 100 Index
14 Hang Seng Index
15 MIB 30 Index
16 Nasdaq 100 Index
17 Nasdaq Composite Index
18 Nikkei Index
19 Share Price Index
20 S&P 500 Composite Stock Price Index
21 S&P/ASX 20 Share Price Index
Federal Register of Legislative Instruments F2015C00303
Schedule 8B Option contract—prescribed indexes
50 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
22 S&P/ASX 50 Share Price Index
23 S&P/ASX 100 Accumulation Index
24 S&P/ASX 100 Share Price Index
25 S&P/ASX 200 Consumer Discretionary (GIC) Sector Index
26 S&P/ASX 200 Consumer Staples (GIC) Sector Index
27 S&P/ASX 200 Energy (GIC) Sector Index
28 S&P/ASX 200 Financial (ex Property Trusts) (GIC) Sector Index
29 S&P/ASX 200 Health Care (GIC) Sector Index
30 S&P/ASX 200 Industrials (GIC) Sector Index
31 S&P/ASX 200 Information Technology (GIC) Sector Index
32 S&P/ASX 200 Materials (GIC) Sector Index
33 S&P/ASX 200 Property Trusts (GIC) Sector Index
34 S&P/ASX 200 Share Price Index
35 S&P/ASX 200 Telecommunications Services (GIC) Sector Index
36 S&P/ASX 200 Utilities (GIC) Sector Index
37 S&P/ASX 300 Share Price Index
38 S&P/ASX All Industrials Share Price Index
39 S&P/ASX All Resources Share Price Index
40 S&P/ASX Gold Share Price Index
41 S&P/ASX Small Ordinaries Accumulation Index
42 S&P/ASX Small Ordinaries Share Price Index
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.5 of the Act—compensation regimes Schedule 8C
Corporations Regulations 2001 51
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 8C—Modifications of Part 7.5 of the
Act—compensation regimes (regulation 7.5.01A)
1 Subsection 880B(1), definition of fidelity fund, subparagraph (b)(ii)
omit
markets;
insert
markets; or
2 Subsection 880B(1), definition of fidelity fund, after paragraph (b)
insert
(c) the operator of the market or related body corporate of the
operator of the market;
3 Subsection 881A(2)
substitute
(1A) If:
(a) compensation arrangements under Division 4 apply to only
some financial products acquired or disposed of through a
licensed market; and
(b) paragraphs (1)(a) and (b) are satisfied for the other products
acquired or disposed of through the licensed market;
there must be compensation arrangements in relation to the other
products that are approved in accordance with Division 3.
(2) The compensation regime that applies to a financial market is:
(a) for a financial product to which Division 3 applies—the
compensation regime constituted by Division 3; and
(b) for a financial product to which Division 4 applies—the
compensation regime constituted by Division 4.
Federal Register of Legislative Instruments F2015C00303
Schedule 8C Modifications of Part 7.5 of the Act—compensation regimes
52 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
4 Paragraph 885C(1)(b)
substitute
(b) the money or other property, or the authority, was given to
the participant in connection with effecting a transaction, or
proposed transaction, that:
(i) was covered by provisions of the operating rules of the
market relating to transactions effected through the
market; and
(ii) related to a particular financial product that was not
covered by the compensation regime constituted by
Division 4; and
5 Section 885D, heading
substitute
885D Certain losses that are or are not Division 3 losses
6 After subsection 885D(2)
Insert:
(2A) Despite subsection (2), if, in relation to a loss suffered by a person:
(a) the requirements of subsection 885C(1) are satisfied in
relation to a participant and a financial market, except that it
is not reasonably apparent whether the compensation regime
constituted by Division 3 or by Division 4 covered the
transaction, or proposed transaction; and
(b) the relevant financial market has both Division 3 and
Division 4 arrangements; and
(c) either:
(i) the person did not (expressly or impliedly) instruct the
participant to use the money or other property to enter
into a transaction that would be covered by the
compensation regime constituted by Division 3 or by
Division 4; or
(ii) if the participant had authority to enter into transactions
on the person’s behalf without specific authority, there
is no evidence that the participant decided to use the
money or other property to enter into a transaction that
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Modifications of Part 7.5 of the Act—compensation regimes Schedule 8C
Corporations Regulations 2001 53
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
would be covered by the compensation regime
constituted by Division 3 or by Division 4; and
(d) the participant was permitted to trade in products that would
be covered by the compensation regimes constituted by
Division 3 and by Division 4; and
(e) it is not reasonably apparent from the usual business practice
of the participant which of those transactions the participant
proposed to undertake;
the loss is taken to be a Division 3 loss and not to be a loss that is
connected with a financial market to which Division 4 applies.
(2B) Despite subsection (2), if:
(a) the requirements of subsection 885C(1) are satisfied in
relation to a participant and a financial market; and
(b) the loss is also connected (see section 888A) with a financial
market to which Division 4 applies; and
(c) the person did not (expressly or impliedly) instruct the
participant to use a particular one of those markets; and
(d) it is not reasonably apparent from the usual business practice
of the participant which of those markets the participant
would use when acting for the person; and
(e) the loss is connected with a transaction effected through a
financial market to which Division 3 applies; and
(f) a claim cannot be made, or has been disallowed, under
Division 4 (see subsection 888A(1));
the loss is taken to be a Division 3 loss and not to be a loss that is
connected with a financial market to which Division 4 applies.
7 Subsection 885J(1)
omit
adequate,
insert
adequate for the market, or segment of the market, for which the
arrangements apply,
Federal Register of Legislative Instruments F2015C00303
Schedule 8C Modifications of Part 7.5 of the Act—compensation regimes
54 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
8 Section 887A
substitute
887A Markets to which this Division applies
(1) This Division applies to a financial market that is operated by:
(a) a body corporate that is a member of the SEGC; or
(b) a body corporate that is a subsidiary of such a member.
(2) However, this Division does not apply to a market mentioned in
subsection (1):
(a) that the regulations state is not covered by this Division; or
(b) to the extent that it involves financial products covered by the
compensation regime constituted by Division 3.
9 After subsection 889J(1)
insert
(1A) However, a levy is payable only by an operator or a participant
(including a participant who is suspended), in a financial market to
which this Division applies, who is permitted to trade on that
market a financial product to which this Division applies.
10 After subsection 889K(2)
insert
(2A) However, a levy is payable only by a participant (including a
participant who is suspended), in a financial market to which this
Division applies, who is permitted to trade on that market a
financial product to which this Division applies.
10A After subsection 892B(1), including the note
insert
(1A) Nothing in subsection (1) prevents the Minister approving, in
accordance with section 884C, a change to Division 3
arrangements that includes the withdrawal of money from an
account or accounts holding a fidelity fund.
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Modifications of Part 7.5 of the Act—compensation regimes Schedule 8C
Corporations Regulations 2001 55
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
11 Paragraph 892K(1)(a)
after
report
insert
for a set of compensation arrangements
Federal Register of Legislative Instruments F2015C00303
Schedule 8D Modifications of Division 9 of Part 7.6 of the Act
56 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 8D—Modifications of Division 9 of
Part 7.6 of the Act Note: See regulation 7.6.02AI.
Corporations Act 2001
1 At the end of Division 9 of Part 7.6
Add:
922C Definitions
In this Division:
basic banking product has the meaning given by section 961F.
body corporate licensee means a body corporate that:
(a) is a financial services licensee; and
(b) is authorised to provide personal advice in relation to
relevant financial products to retail clients.
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.
consumer credit insurance has the meaning given by section 11 of
the Insurance Contracts Act 1984.
control, in relation to a body corporate licensee, has the meaning
given by paragraphs 7.6.04(2)(b) and (c) of the Corporations
Regulations 2001.
recent advising history has the meaning given by section 922G.
relevant financial products means financial products other than:
(a) basic banking products; or
(b) general insurance products; or
(c) consumer credit insurance; or
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Modifications of Division 9 of Part 7.6 of the Act Schedule 8D
Corporations Regulations 2001 57
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(d) a combination of any of those products.
relevant provider: a person is a relevant provider if the person:
(a) is a natural person; and
(b) is:
(i) a financial services licensee; or
(ii) an authorised representative of a financial services
licensee; or
(iii) an employee or director of a financial services licensee;
or
(iv) an employee or director of a related body corporate of a
financial services licensee; and
(c) is authorised, as the licensee or on behalf of the licensee, to
provide personal advice in relation to relevant financial
products to retail clients.
922D Obligation to notify ASIC about a person who becomes a
relevant provider
Notice to include details about relevant provider
(1) A notice must be lodged under this section, in accordance with
section 922L, if a person becomes a relevant provider.
Content of notice
(2) The notice must include:
(a) for a relevant provider who is a financial services licensee—
the information in section 922E; or
(b) for a relevant provider who is not a financial services
licensee—the information in section 922F.
922E Information about a relevant provider who is a financial
services licensee
(1) For the purposes of paragraph 922D(2)(a), the notice must include
the following:
(a) the relevant provider’s name;
Federal Register of Legislative Instruments F2015C00303
Schedule 8D Modifications of Division 9 of Part 7.6 of the Act
58 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the licence number given to the relevant provider under
subsection 913C(1);
(c) the year in which the relevant provider first provided
personal advice in relation to relevant financial products to
retail clients in accordance with the law (including the law of
a State or Territory);
(d) if applicable, the ABN of the relevant provider;
(e) information about both of the following:
(i) the relevant financial products in relation to which the
relevant provider is authorised to provide personal
advice to retail clients;
(ii) whether the relevant provider is authorised to provide
class of product advice in relation to some or all of
those products;
(f) the recent advising history of the relevant provider for the 5
years ending immediately before the time the notice is
lodged;
(g) information about both of the following:
(i) the educational qualifications of, and any training
courses completed by, the relevant provider;
(ii) the relevant provider’s membership (if any) of
professional bodies;
to the extent that the qualifications, training courses or
memberships are relevant to the provision of financial
services.
Note: For the meaning of recent advising history, see section 922G.
Educational qualifications and memberships
(2) For the purposes of subparagraph (1)(g)(i), if a relevant provider
has more than 5 educational qualifications or has completed more
than 5 training courses, the notice must include the 5 qualifications
or training courses that the person lodging the notice believes, on
reasonable grounds, are most relevant to the provision of financial
services.
(3) For the purposes of subparagraph (1)(g)(ii), if a relevant provider
has more than 5 memberships, the notice must include the 5
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memberships that the person lodging the notice believes, on
reasonable grounds, are most relevant to the provision of financial
services.
922F Information about a relevant provider who is not a financial
services licensee
(1) For the purposes of paragraph 922D(2)(b), the notice must include
the following:
(a) the relevant provider’s name;
(b) the relevant provider’s date and place of birth;
(c) the name of the licensee on whose behalf the relevant
provider is authorised to provide personal advice in relation
to relevant financial products to retail clients;
(d) the licence number given to that licensee under
subsection 913C(1);
(e) the year in which the relevant provider first provided
personal advice in relation to relevant financial products to
retail clients in accordance with the law (including the law of
a State or Territory);
(f) if the relevant provider is a relevant provider as a result of
section 916B—each of the following:
(i) the name of the authorised representative who
authorised the relevant provider under that section;
(ii) the number allocated to the authorised representative by
ASIC;
(g) if applicable, the ABN of any of the following:
(i) the relevant provider;
(ii) the licensee referred to in paragraph (c);
(iii) the authorised representative referred to in
paragraph (f);
(h) details of both of the following:
(i) the relevant financial products in relation to which the
relevant provider is authorised to provide personal
advice to retail clients;
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Schedule 8D Modifications of Division 9 of Part 7.6 of the Act
60 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) whether the relevant provider is authorised to provide
class of product advice in relation to some or all of
those products;
(i) the recent advising history of the relevant provider for the 5
years ending immediately before the time the notice is
lodged;
(j) information about both of the following:
(i) the educational qualifications of, and any training
courses completed by, the relevant provider;
(ii) the relevant provider’s membership (if any) of
professional bodies;
to the extent that the qualifications, training courses or
memberships are relevant to the provision of financial
services.
Note: For the meaning of recent advising history, see section 922G.
Educational qualifications and memberships
(2) For the purposes of subparagraph (1)(j)(i), if a relevant provider
has more than 5 educational qualifications or has completed more
than 5 training courses, the notice must include the 5 qualifications
or training courses that the person lodging the notice believes, on
reasonable grounds, are most relevant to the provision of financial
services.
(3) For the purposes of subparagraph (1)(j)(ii), if a relevant provider
has more than 5 memberships, the notice must include the 5
memberships that the person lodging the notice believes, on
reasonable grounds, are most relevant to the provision of financial
services.
Information already registered
(4) The notice does not need to include the information referred to in
paragraph (1)(e), (i) or (j) if:
(a) the person required under subsection 922L(4) to cause the
notice to be lodged believes on reasonable grounds that the
information has previously been lodged; or
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Modifications of Division 9 of Part 7.6 of the Act Schedule 8D
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(b) the information is already entered on a register of relevant
providers under regulation 7.6.06B of the Corporations
Regulations 2001.
922G Meaning of recent advising history
The recent advising history of a relevant provider is the following
information:
(a) for a relevant provider who is or was a financial services
licensee authorised to provide personal advice in relation to
relevant financial products to retail clients—each period
during which the relevant provider was such a licensee;
(b) for a relevant provider who is or was authorised to provide
personal advice in relation to relevant financial products to
retail clients on behalf of one or more financial services
licensees—the following information:
(i) the name of each licensee;
(ii) if the relevant provider is or was a relevant provider as a
result of section 916B—the name of each authorised
representative who authorised the relevant provider
under that section;
(iii) each period during which the relevant provider was
authorised by each licensee or each authorised
representative to provide such advice.
Note: If a relevant provider is covered by paragraphs (a) and (b), the
relevant provider’s recent advising history includes all the information
required under those paragraphs.
922H Ongoing obligation to notify ASIC when there is a change in a
matter for a relevant provider
(1) A notice must be lodged under this section, in accordance with
section 922L, if there is a change in a matter, particulars of which
are entered for a relevant provider in a register of relevant
providers (other than a change that is a direct consequence of an
act by ASIC).
Note: An example of a change in a matter would be a person ceasing to be a
relevant provider.
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Schedule 8D Modifications of Division 9 of Part 7.6 of the Act
62 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) The notice must include the following information:
(a) the new particulars to be entered in the register;
(b) the relevant provider’s name;
(c) if applicable, the relevant provider number given to the
relevant provider under regulation 7.6.06A of the
Corporations Regulations 2001.
922J Obligation to notify ASIC about a person who starts to control
a body corporate licensee
(1) A notice must be lodged under this section, in accordance with
section 922L, if a person starts to control a body corporate
licensee.
(2) The notice must include the following information:
(a) the name of the licensee;
(b) the licence number given to the licensee under
subsection 913C(1);
(c) the name of the person who starts to control the licensee;
(d) the day the person starts to control the licensee.
922K Obligation to notify ASIC about a person who ceases to
control a body corporate licensee
(1) A notice must be lodged under this section, in accordance with
section 922L, if a person ceases to control a body corporate
licensee.
Note: Subsection 922P(2) provides that a notice is not required to be lodged
when a person starts and then ceases to control a body corporate
licensee within 30 business days.
(2) The notice must include the following information:
(a) the name of the licensee;
(b) the licence number given to the licensee under
subsection 913C(1);
(c) the name of the person who ceases to control the licensee;
(d) the day the person ceases to control the licensee.
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Modifications of Division 9 of Part 7.6 of the Act Schedule 8D
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922L Requirement for notice to be lodged
Notice in prescribed form
(1) A notice under section 922D, 922H, 922J or 922K must be in the
prescribed form.
Note 1: Under section 350, a document that this Act requires to be lodged with
ASIC in a prescribed form must:
(a) if a form for the document is prescribed in the regulations—be in that prescribed form; and
(b) if a form for the document is not prescribed in the regulations but ASIC has approved a form for the document—be in that approved form.
Note 2: The prescribed form may deal with information that is required under
more than one section of this Act or the Corporations
Regulations 2001.
When notice must be lodged
(2) A notice under section 922D, 922H, 922J or 922K must be lodged
within 30 business days of the day the event mentioned in
subsection 922D(1), 922H(1), 922J(1) or 922K(1) occurs.
(3) The information contained in the notice must be accurate as at the
day of the event mentioned in subsection 922D(1), 922H(1),
922J(1) or 922K(1).
Who must cause notice to be lodged
(4) The following person must cause a notice under section 922D or
922H to be lodged in relation to a relevant provider:
(a) if the relevant provider is a financial services licensee—the
licensee;
(b) otherwise—the financial services licensee on whose behalf
the relevant provider is authorised to provide personal advice
in relation to relevant financial products to retail clients.
Notice about control of a body corporate licensee
(5) A notice under section 922J or 922K relating to a person who starts
or ceases to control a body corporate licensee must be lodged by
the licensee.
Federal Register of Legislative Instruments F2015C00303
Schedule 8D Modifications of Division 9 of Part 7.6 of the Act
64 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
922M Offence for failing to comply with obligation to notify ASIC
(1) A person commits an offence if:
(a) the person is required to cause a notice to be lodged under
section 922D, 922H, 922J or 922K; and
(b) the person fails to cause the notice to be lodged in accordance
with that section.
Note: A notice must be lodged in accordance with section 922L in order to
be lodged in accordance with section 922D, 922H, 922J or 922K (see
subsection 922D(1), 922H(1), 922J(1) or 922K(1)).
Penalty: 50 penalty units.
(2) However, subsection (1) does not apply if:
(a) the person fails to cause the notice to be lodged in accordance
with section 922D; and
(b) the only reason the person fails to cause the notice to be
lodged in accordance with that section is because the
information referred to in paragraph 922F(1)(e), (i) or (j) is
not included in the notice; and
(c) subsection 922F(4) provides that the notice does not need to
include that information.
Note: A defendant bears an evidential burden in relation to the matter in
subsection (2) (see subsection 13.3(3) of the Criminal Code).
(3) Subsection 4K(2) of the Crimes Act 1914 does not apply to
subsection (1) of this section.
Note: A person may commit an offence if the person knowingly gives false
or misleading information (see section 1308 of this Act and
section 137.1 of the Criminal Code).
922N Obligation for relevant providers to provide information to
financial services licensees
Information about relevant provider
(1) A person must provide information to a financial services licensee
in accordance with this section if:
(a) the person has become a relevant provider; and
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Modifications of Division 9 of Part 7.6 of the Act Schedule 8D
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(b) the person has been authorised by the licensee to provide
personal advice in relation to relevant financial products to
retail clients; and
(c) the licensee has asked the person to provide the information
so that the licensee can comply with its obligation to lodge a
notice in accordance with section 922D relating to the
person.
Note: A person may commit an offence if the person knowingly gives false
or misleading information (see section 1308 of this Act and
section 137.1 of the Criminal Code).
When information must be given
(2) The information must be given to the licensee within a period that
allows the licensee to comply with its obligation to lodge the notice
in accordance with section 922D.
922P Change in matter within 30 business days
(1) Notices must be given under both sections 922D and 922H in
relation to a person who was a relevant provider even if the person
ceases to be a relevant provider before a notice has been lodged
under section 922D.
(2) A notice is not required to be given under sections 922J and 922K
in relation to a person who starts or ceases to control a body
corporate licensee if the person ceases to control the licensee
within 30 business days of starting to control the licensee.
Federal Register of Legislative Instruments F2015C00303
Schedule 9 Companies authorised to effect transfers under Part 7.11 of the Act
66 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 9—Companies authorised to effect
transfers under Part 7.11 of the Act (regulation 7.11.01, definition of beneficial owner)
Item Companies
1 ANZ Nominees Limited
2 CHESS Depositary Nominees Pty Limited
3 Equity Nominees Limited
4 National Nominees Limited
5 Perpetual Nominees Limited
6 Sepon (Australia) Pty Limited
7 State Street Australia Ltd
8 The Trust Company (Nominees) Limited
9 The Trust Company (PTAL) Limited
Federal Register of Legislative Instruments F2015C00303
Disclosure of fees and other costs Schedule 10
Interpretation Part 1
Clause 101
Corporations Regulations 2001 67
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 10—Disclosure of fees and other
costs (regulations 7.9.16K, 7.9.16M and 7.9.16N)
Part 1—Interpretation
101 Definitions
In this Schedule:
activity fee, for a superannuation product, has the meaning given
by subsection 29V(7) of the SIS Act.
administration fee, for a superannuation product, has the meaning
given by subsection 29V(2) of the SIS Act.
advice fee:
(a) for a superannuation product—has the meaning given by
subsection 29V(8) of the SIS Act; and
(b) for a managed investment product—means an amount that is:
(i) paid or payable to a financial adviser for financial
product advice to a retail client or product holder about
an investment; and
(ii) not included in a contribution fee, withdrawal fee, exit
fee, establishment fee or management cost.
balanced investment option means an investment option in which
the ratio of investment in growth assets, such as shares or property,
to investment in defensive assets, such as cash or bonds, is as close
as practicable to 70:30.
brokerage means an amount paid or payable to a broker for
undertaking a transaction for the acquisition or disposal of a
financial product.
buy-sell spread:
Federal Register of Legislative Instruments F2015C00303
Schedule 10 Disclosure of fees and other costs
Part 1 Interpretation
Clause 101
68 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) for a superannuation product—has the meaning given by
subsection 29V(4) of the SIS Act; or
(b) for a managed investment product—means an amount,
deducted from the value of a financial product of a product
holder, that represents an apportionment, among product
holders, of the actual or estimated transaction costs incurred
by the managed investment scheme.
contribution fee means an amount paid or payable against the
initial, and any subsequent, contributions made into a product by or
for a retail client for the product.
Note: A contribution may be made by an employer on behalf of the product
holder or retail client.
distribution costs means the costs or amounts paid or payable for
the marketing, offer or sale of a product.
Note: This includes any related adviser remuneration component other than
an advice fee.
establishment fee means an amount paid or payable for the
establishment of a client’s interest in a product.
Note: This does not include contribution fees paid or payable against the
initial contribution into the product.
exit fee:
(a) for a superannuation product—has the meaning given by
subsection 29V(6) of the SIS Act; and
(b) for a managed investment product—means an amount paid or
payable on the disposal of all interests held in the product.
incidental fees means costs or amounts, other than costs or fees
defined in this clause, that are:
(a) paid or payable in relation to the product; and
(b) not material to a retail client’s decision to acquire, hold or
dispose of his or her interest in the product.
Example: Cheque dishonour fees.
Federal Register of Legislative Instruments F2015C00303
Disclosure of fees and other costs Schedule 10
Interpretation Part 1
Clause 101
Corporations Regulations 2001 69
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
indirect cost of a MySuper product or an investment option offered
by a superannuation entity means any amount that:
(a) a trustee of the entity knows, or reasonably ought to know,
will directly or indirectly reduce the return on the investment
of a member of the entity in the MySuper product or
investment option; and
(b) is not charged to the member as a fee.
insurance fee, for a superannuation product, has the meaning
given by subsection 29V(9) of the SIS Act.
investment fee, for a superannuation product, has the meaning
given by subsection 29V(3) of the SIS Act.
lifecycle MySuper product has the meaning given by
regulation 7.9.07N.
lifecycle stage has the meaning given by regulation 7.9.07N.
performance, of a managed investment product, a superannuation
product, a MySuper product or an investment option, includes:
(a) income in relation to the assets of, or attributed to, the
managed investment product, the superannuation product, the
MySuper product or the investment option; and
(b) capital appreciation (realised or unrealised) to the value of
the managed investment product, the superannuation product,
the MySuper product or the investment option.
performance fee means an amount paid or payable, calculated by
reference to the performance of a managed investment product, a
superannuation product, a MySuper product or an investment
option.
service fees means advice fees, special request fees and switching
fees.
special request fees includes fees paid or deducted from a product
holder’s managed investment product for a request made to the
managed investment scheme.
Federal Register of Legislative Instruments F2015C00303
Schedule 10 Disclosure of fees and other costs
Part 1 Interpretation
Clause 102
70 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Example: This applies to a fee for a request for additional information from a
managed investment scheme.
switching fee:
(a) for a superannuation product—has the meaning given by
subsection 29V(5) of the SIS Act; or
(b) for a managed investment product—means an amount paid or
payable when a product holder transfers all or part of the
product holder’s interest in the managed investment product
from one investment option to another.
withdrawal fee means an amount, other than an exit fee, paid or
payable in respect of:
(a) a withdrawal; or
(b) the disposal of an interest in a product.
102 Management costs
(1) Management costs, for a managed investment product, means any
of the following:
(a) an amount payable for administering the managed investment
scheme;
(b) for a custodial arrangement—the cost involved, or amount
paid or payable, for gaining access to, or participating in, the
arrangement;
(c) distribution costs;
(d) other expenses and reimbursements in relation to the
managed investment scheme;
(e) amounts paid or payable for investing in the assets of the
managed investment scheme;
(f) amounts deducted from a common fund by way of fees,
costs, charges or expenses, including:
(i) amounts retrieved by an external fund manager or a
product issuer; and
(ii) amounts deducted from returns before allocation to the
fund;
Federal Register of Legislative Instruments F2015C00303
Disclosure of fees and other costs Schedule 10
Interpretation Part 1
Clause 103
Corporations Regulations 2001 71
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(g) estimated performance fees;
(h) any other investment-related expenses and reimbursements,
including any associated with custodial arrangements.
(2) The following fees and costs are not management costs for a
managed investment product:
(a) a contribution fee;
(b) transactional and operational costs;
(c) an additional service fee;
(d) an establishment fee;
(e) a switching fee;
(f) an exit fee;
(g) a withdrawal fee;
(h) costs (related to a specific asset or activity to produce
income) that an investor would incur if he or she invested
directly in the asset;
(i) incidental fees.
103 Transactional and operational costs
Transactional and operational costs include the following:
(a) brokerage;
(b) buy-sell spread;
(c) settlement costs (including custody costs);
(d) clearing costs;
(e) stamp duty on an investment transaction.
104 Indirect cost ratio
(1) The indirect cost ratio (ICR), for a MySuper product or an
investment option offered by a superannuation entity, is the ratio of
the total of the indirect costs for the MySuper product or
investment option, to the total average net assets of the
superannuation entity attributed to the MySuper product or
investment option.
Federal Register of Legislative Instruments F2015C00303
Schedule 10 Disclosure of fees and other costs
Part 1 Interpretation
Clause 104
72 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Note: A fee deducted directly from a member’s account is not included in
the indirect cost ratio.
(1A) The indirect cost ratio (ICR), for an investment option offered by a
managed investment scheme, is the ratio of the management costs
for the option that are not deducted directly from a product
holder’s account, to the total average net assets of the managed
investment scheme that relates to the investment option.
Note: A fee deducted directly from a product holder’s account is not
included in the indirect cost ratio.
(2) The ICR for a Product Disclosure Statement is to be determined for
the financial year before the Product Disclosure Statement is
issued.
(3) The ICR for a periodic statement is to be determined over the latest
reporting period.
Federal Register of Legislative Instruments F2015C00303
Disclosure of fees and other costs Schedule 10
Fees and Costs Template, example of annual fees and costs and Consumer Advisory
Warning for Product Disclosure Statements Part 2
The fees and costs template for superannuation products Division 1
Clause 201
Corporations Regulations 2001 73
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 2—Fees and Costs Template, example of
annual fees and costs and Consumer
Advisory Warning for Product Disclosure
Statements
Division 1—The fees and costs template for
superannuation products
201 Template for superannuation products
Fees and other costs
This document shows fees and other costs that you may be charged. These fees
and other costs may be deducted from your money, from the returns on your
investment or from the assets of the superannuation entity as a whole.
Other fees, such as activity fees, advice fees for personal advice and insurance
fees, may also be charged, but these will depend on the nature of the activity,
advice or insurance chosen by you.
Taxes, insurance fees and other costs relating to insurance are set out in another
part of this document.
You should read all the information about fees and other costs because it is
important to understand their impact on your investment.
[If relevant] The fees and other costs for each MySuper product offered by the
superannuation entity, and each investment option offered by the entity, are set
out on page [insert page number].
[Name of superannuation product]
Type of fee Amount How and when paid
Investment fee
Administration fee
Federal Register of Legislative Instruments F2015C00303
Schedule 10 Disclosure of fees and other costs
Part 2 Fees and Costs Template, example of annual fees and costs and Consumer
Advisory Warning for Product Disclosure Statements
Division 1 The fees and costs template for superannuation products
Clause 201
74 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
[Name of superannuation product]
Type of fee Amount How and when paid
Buy-sell spread
Switching fee
Exit fee
Advice fees
relating to all members
investing in a particular
MySuper product or
investment option
Other fees and costs¹
Indirect cost ratio
1. [If there are other fees and costs, such as activity fees, advice fees for personal advice or insurance fees, include a cross-reference to the “Additional Explanation of Fees and Costs”.]
Federal Register of Legislative Instruments F2015C00303
Disclosure of fees and other costs Schedule 10
Fees and Costs Template, example of annual fees and costs and Consumer Advisory
Warning for Product Disclosure Statements Part 2
The fees and costs template for managed investment products Division 2
Clause 202
Corporations Regulations 2001 75
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2—The fees and costs template for managed
investment products
202 Template for a multiple fee structure—managed investment
products
Fees and other costs
This document shows fees and other costs that you may be charged. These fees
and costs may be deducted from your money, from the returns on your
investment or from the assets of the managed investment scheme as a whole.
Taxes and insurance costs are set out in another part of this document.
You have 2 different fee payment options:
(a) to pay contribution fees upfront, at the time when you make
each investment into the managed investment scheme; or
(b) to pay contribution fees later (for example, on the termination
of your investment or by way of other increased fees).
Note: You may pay more in total fees if you choose to pay contribution fees later.
You should read all the information about fees and costs because it is important
to understand their impact on your investment.
[If relevant] Fees and costs for particular investment options are set out on page
[insert page number].
[Name of managed investment product]
Type of fee or cost Amount How and when
paid
Option to pay
contribution
fees upfront
Option to pay
contribution fees
later
Fees when your
money moves in or
out of the managed
investment product
Federal Register of Legislative Instruments F2015C00303
Schedule 10 Disclosure of fees and other costs
Part 2 Fees and Costs Template, example of annual fees and costs and Consumer
Advisory Warning for Product Disclosure Statements
Division 2 The fees and costs template for managed investment products
Clause 202
76 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
[Name of managed investment product]
Type of fee or cost Amount How and when
paid
Establishment fee
The fee to open your
investment
Contribution fee¹
The fee on each
amount contributed
to your investment
Withdrawal fee¹
The fee on each
amount you take out
of your investment
Exit fee¹
The fee to close your
investment
Management costs
The fees and costs for
managing your
investment¹
The amount you pay
for specific
investment options is
shown at page [insert
page number]
Service fees²
Switching fee
The fee for changing
investment options
1. This fee includes an amount payable to an adviser. (See Division 4, “Adviser remuneration” under the heading “Additional Explanation of Fees and Costs”.)
2. [If there are other service fees, such as advice fees or special request fees, include a cross-reference to the “Additional Explanation of Fees and Costs”.]
Federal Register of Legislative Instruments F2015C00303
Disclosure of fees and other costs Schedule 10
Fees and Costs Template, example of annual fees and costs and Consumer Advisory
Warning for Product Disclosure Statements Part 2
The fees and costs template for managed investment products Division 2
Clause 202A
Corporations Regulations 2001 77
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
202A Template for single fee structure—managed investment
products
Fees and other costs
This document shows fees and other costs that you may be charged. These fees
and costs may be deducted from your money, from the returns on your
investment or from the assets of the managed investment scheme as a whole.
Taxes and insurance costs are set out in another part of this document.
You should read all the information about fees and costs because it is important
to understand their impact on your investment.
[If relevant] Fees and costs for particular investment options are set out on page
[insert page number].
[Name of managed investment product]
Type of fee or
cost
Amount How and when
paid
Fees when your
money moves in
or out of the
managed
investment
product
Establishment fee
The fee to open
your investment
Contribution fee¹
The fee on each
amount
contributed to your
investment
Federal Register of Legislative Instruments F2015C00303
Schedule 10 Disclosure of fees and other costs
Part 2 Fees and Costs Template, example of annual fees and costs and Consumer
Advisory Warning for Product Disclosure Statements
Division 2 The fees and costs template for managed investment products
Clause 202A
78 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
[Name of managed investment product]
Type of fee or
cost
Amount How and when
paid
Withdrawal fee¹
The fee on each
amount you take
out of your
investment
Exit fee¹
The fee to close
your investment
Management
costs
The fees and costs
for managing your
investment¹
The amount you
pay for specific
investment options
is shown at page
[insert page
number]
Service fees²
Switching fee
The fee for
changing
investment options
1. This fee includes an amount payable to an adviser. (See Division 4, “Adviser remuneration” under the heading “Additional Explanation of Fees and Costs”.)
2. [If there are other service fees, such as advice fees or special request fees, include a cross-reference to the “Additional Explanation of Fees and Costs”.]
Federal Register of Legislative Instruments F2015C00303
Disclosure of fees and other costs Schedule 10
Fees and Costs Template, example of annual fees and costs and Consumer Advisory
Warning for Product Disclosure Statements Part 2
How to fill in the template Division 3
Clause 203
Corporations Regulations 2001 79
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 3—How to fill in the template
203 The preamble
The material in the preamble to the template should only include
matters that are relevant to the product.
Example: Insurance costs will generally not be relevant to a managed investment
product.
204 Column 2—presentation of amounts
(1) This clause, clause 205 and clause 206 are subject to
regulations 7.9.15A, 7.9.15B and 7.9.15C.
(2) If a particular fee or cost is not charged, ‘nil’, ‘zero’, ‘0’ or ‘not
applicable’ (if it would not be misleading) must be written in
column 2 opposite the type of fee or cost.
(3) If it is not possible to determine a single amount or percentage of a
fee or cost, it may be written as a range of fees or costs.
(4) If the exact amount of a fee or cost paid or payable is not known,
an amount that is a reasonable estimate of the amount attributable
to the retail client must be shown.
(5) An amount set out in accordance with subclause (4) must be
clearly designated as an estimate.
(6) If an amount or cost has a number of components, the amount of
each component must be listed separately.
Example: Management costs: 1.8% of product holder’s balance + $70 per year.
(7) A cost or amount paid or payable must include, if applicable:
(a) GST less any reduced inputs tax credits; and
(b) stamp duty.
Federal Register of Legislative Instruments F2015C00303
Schedule 10 Disclosure of fees and other costs
Part 2 Fees and Costs Template, example of annual fees and costs and Consumer
Advisory Warning for Product Disclosure Statements
Division 3 How to fill in the template
Clause 205
80 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
205 Column 2—include information for each MySuper product or
investment option
(1) The fee information must be set out:
(a) for superannuation products—for each MySuper product and
each investment option offered by the relevant
superannuation entity; and
(b) for managed investment products—for each investment
option offered by the relevant managed investment scheme.
(2) It may be:
(a) set out in the table; or
(b) cross-referenced in the table to another section of the Product
Disclosure Statement that contains the relevant fee
information.
206 Presentation of multiple fee payment options
If a superannuation entity or managed investment scheme has more
than 2 options for the payment of fees:
(a) the number of fee payment options must be set out in the
preamble; and
(b) details of all fee payment options must be set out in the
template.
207 Column 3—how and when fees and costs are payable
Column 3 of the template must set out:
(a) how the fee is or will be recovered, for example by deduction
from:
(i) the member’s investment balance; or
(ii) the assets of the superannuation entity or managed
investment scheme;
(iii) contributions; or
(iv) withdrawals; and
(b) the recurrence of the recovery of the fee; and
Federal Register of Legislative Instruments F2015C00303
Disclosure of fees and other costs Schedule 10
Fees and Costs Template, example of annual fees and costs and Consumer Advisory
Warning for Product Disclosure Statements Part 2
How to fill in the template Division 3
Clause 208
Corporations Regulations 2001 81
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) the timing of the recovery of the fee.
208 Other material to be included in the template
(1) The template must clearly indicate which fees and costs are
negotiable (for example, by stating in column 3 ‘The amount of
this fee can be negotiated.’).
(2) An indication that a fee or cost is negotiable must be
cross-referenced to an explanation outside the template in the
‘Additional Explanation of Fees and Costs’ part of the fees section.
Federal Register of Legislative Instruments F2015C00303
Schedule 10 Disclosure of fees and other costs
Part 2 Fees and Costs Template, example of annual fees and costs and Consumer
Advisory Warning for Product Disclosure Statements
Division 4 Additional explanation of fees and costs
Clause 209
82 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4—Additional explanation of fees and costs
209 Matters to be included as additional explanation of fees and
costs
The following information, if relevant to the particular
superannuation product or managed investment product, must be
included under the heading ‘Additional Explanation of Fees and
Costs’:
(a) the explanation of the fees mentioned in footnote 1 for
superannuation products and footnote 2 for managed
investment products;
(b) information on performance fees including:
(i) a statement about how performance fees affect
administration fees and investment fees for a
superannuation product, or management costs for a
managed investment product; and
(ii) the method for calculating the fees; and
(iii) the amount of the fees, or an estimate of the amount if
the amount is not known;
(c) for tax—a cross reference to the “Tax” part of the Product
Disclosure Statement;
(ca) for insurance fees and other costs relating to insurance (if
relevant)—a cross reference to the “Insurance” part of the
Product Disclosure Statement;
(d) if the product is subject to tax—whether the benefit of any
tax deduction is passed on to the investor in the form of a
reduced fee or cost;
(e) an explanation of adviser remuneration that forms part of any
fee or cost in the table, including (if known to the product
issuer):
(i) the method of calculation; and
(ii) the amounts of commission or the range of amounts;
and
Federal Register of Legislative Instruments F2015C00303
Disclosure of fees and other costs Schedule 10
Fees and Costs Template, example of annual fees and costs and Consumer Advisory
Warning for Product Disclosure Statements Part 2
Additional explanation of fees and costs Division 4
Clause 209
Corporations Regulations 2001 83
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(iii) whether the amounts are negotiable or rebatable; and
(iv) the way in which amounts may be negotiated or rebated;
(f) an explanation of advice fees;
(g) for a negotiated fee or cost—contact details of the person or
body with whom the fee or cost can be negotiated and the
manner of negotiation;
(h) worked examples (if appropriate);
(i) additional details of incidental fees (if appropriate);
(j) details of transactional and operational costs such as
brokerage and buy-sell spread, including:
(i) a description of the cost; and
(ii) the amount, or an estimate if the amount is not known;
and
(iii) how and when the costs are recovered; and
(iv) a statement that the cost is an additional cost to the
investor; and
(v) whether any part of the buy-sell spread is paid to the
product issuer or an external manager;
(k) the following information about fee changes:
(i) if applicable, a statement about the issuer’s right to
change the amount of fees without the investor’s
consent;
(ii) any indexation arrangements that apply;
(iii) the period of advance notice required for fee changes;
(iv) any change in fee structure that is dependent on a
person’s employment;
(l) if the issuer has instituted a flexible charging structure, for
each applicable fee, if known:
(i) any maximum, and when it would apply; and
(ii) any waiver, and when it would not apply;
(m) for a superannuation product—details regarding the
protection of small accounts (member protection rules)
unless already included in the Product Disclosure Statement.
Federal Register of Legislative Instruments F2015C00303
Schedule 10 Disclosure of fees and other costs
Part 2 Fees and Costs Template, example of annual fees and costs and Consumer
Advisory Warning for Product Disclosure Statements
Division 4A Defined fees for superannuation products
Clause 209A
84 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4A—Defined fees for superannuation products
209A Defined fees for superannuation products
The following definitions must be included for a superannuation
product under the heading “Defined fees”:
Activity fees
A fee is an activity fee if:
(a) the fee relates to costs incurred by the trustee [OR the
trustees] of the superannuation entity that are directly related
to an activity of the trustee [OR the trustees]:
(i) that is engaged in at the request, or with the consent, of
a member; or
(ii) that relates to a member and is required by law; and
(b) those costs are not otherwise charged as an administration
fee, an investment fee, a buy-sell spread, a switching fee, an
exit fee, an advice fee or an insurance fee.
Administration fees
An administration fee is a fee that relates to the administration or
operation of the superannuation entity and includes costs incurred
by the trustee [OR the trustees] of the entity that:
(a) relate to the administration or operation of the entity; and
(b) are not otherwise charged as an investment fee, a buy-sell
spread, a switching fee, an exit fee, an activity fee, an advice
fee or an insurance fee.
Advice fees
A fee is an advice fee if:
(a) the fee relates directly to costs incurred by the trustee [OR
the trustees] of the superannuation entity because of the
provision of financial product advice to a member by:
Federal Register of Legislative Instruments F2015C00303
Disclosure of fees and other costs Schedule 10
Fees and Costs Template, example of annual fees and costs and Consumer Advisory
Warning for Product Disclosure Statements Part 2
Defined fees for superannuation products Division 4A
Clause 209A
Corporations Regulations 2001 85
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) a trustee of the entity; or
(ii) another person acting as an employee of, or under an
arrangement with, the trustee [OR the trustees] of the
entity; and
(b) those costs are not otherwise charged as an administration
fee, an investment fee, a switching fee, an exit fee, an activity
fee or an insurance fee.
Buy-sell spreads
A buy-sell spread is a fee to recover transaction costs incurred by
the trustee [OR the trustees] of the superannuation entity in
relation to the sale and purchase of assets of the entity.
Exit fees
An exit fee is a fee to recover the costs of disposing of all or part of
members’ interests in the superannuation entity.
Indirect cost ratio
The indirect cost ratio (ICR), for a MySuper product or an
investment option offered by a superannuation entity, is the ratio of
the total of the indirect costs for the MySuper product or
investment option, to the total average net assets of the
superannuation entity attributed to the MySuper product or
investment option.
Note: A dollar-based fee deducted directly from a member’s account is not
included in the indirect cost ratio.
Investment fees
An investment fee is a fee that relates to the investment of the
assets of a superannuation entity and includes:
(a) fees in payment for the exercise of care and expertise in the
investment of those assets (including performance fees); and
(b) costs incurred by the trustee [OR the trustees] of the entity
that:
Federal Register of Legislative Instruments F2015C00303
Schedule 10 Disclosure of fees and other costs
Part 2 Fees and Costs Template, example of annual fees and costs and Consumer
Advisory Warning for Product Disclosure Statements
Division 4A Defined fees for superannuation products
Clause 209A
86 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) relate to the investment of assets of the entity; and
(ii) are not otherwise charged as an administration fee, a
buy-sell spread, a switching fee, an exit fee, an activity
fee, an advice fee or an insurance fee.
Switching fees
A switching fee is a fee to recover the costs of switching all or part
of a member’s interest in the superannuation entity from one class
of beneficial interest in the entity to another.
Federal Register of Legislative Instruments F2015C00303
Disclosure of fees and other costs Schedule 10
Fees and Costs Template, example of annual fees and costs and Consumer Advisory
Warning for Product Disclosure Statements Part 2
Example of annual fees and costs Division 5
Clause 210
Corporations Regulations 2001 87
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5—Example of annual fees and costs
210 Example of annual fees and costs
The example of annual fees and costs:
(a) must contain fees and costs in accordance with the table in
clause 211 or 212; and
(b) must be set out using the headings and the form in clause 211
or 212; and
(c) must be included in the ‘Fees’ section of a Product
Disclosure Statement, following the fees and costs template.
211 Superannuation products—Example of annual fees and costs
for a MySuper product
This table gives an example of how the fees and costs for the
generic MySuper product for this superannuation product can
affect your superannuation investment over a 1 year period. You
should use this table to compare this superannuation product with
other superannuation products.
EXAMPLE—-MySuper product BALANCE OF $50 000
Investment fees 1.6% For every $50 000 you have in the MySuper
product you will be charged $800 each year
PLUS Administration fees $52
($1 per week)
And, you will be charged $52 in
administration fees regardless of your balance
PLUS Indirect costs for the
MySuper product
1.2% And, indirect costs of $600 each year will be
deducted from your investment
EQUALS Cost of product If your balance was $50 000, then for that
year you will be charged fees of $1 452 for
the MySuper product.
Note: * Additional fees may apply. And, if you leave the superannuation entity early, you may also be charged exit fees of between 0% and 5% of your total account balance (between $0 and $2 500 for every $50 000 you withdraw).
Federal Register of Legislative Instruments F2015C00303
Schedule 10 Disclosure of fees and other costs
Part 2 Fees and Costs Template, example of annual fees and costs and Consumer
Advisory Warning for Product Disclosure Statements
Division 5 Example of annual fees and costs
Clause 212
88 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
212 Managed investment products—Example of annual fees and
costs for a balanced investment option
Example of annual fees and costs for a balanced investment option
This table gives an example of how the fees and costs in the balanced
investment option for this managed investment product can affect your
investment over a 1 year period. You should use this table to compare this
product with other managed investment products.
EXAMPLE—the Balanced Investment
Option
BALANCE OF $50 000 WITH A
CONTRIBUTION OF $5 000 DURING
YEAR
Contribution Fees 0-4% For every additional $5 000 you put in, you
will be charged between $0 and $200.
PLUS Management Costs 1.3% And, for every $50 000 you have in the
balanced investment option you will be
charged $650 each year.
EQUALS Cost of balanced
investment option
If you had an investment of $50 000 at the
beginning of the year and you put in an
additional $5 000 during that year, you
would be charged fees of from:
$650 to $850*
What it costs you will depend on the
investment option you choose and the
fees you negotiate.
* Additional fees may apply:
Establishment fee—$50
And, if you leave the managed investment scheme early, you may also be charged exit fees of between 0 and
5% of your total account balance (between $0 and $2 500 for every $50 000 you withdraw)
213 Defined benefit funds
An example of fees and costs is not required in a Product
Disclosure Statement for a defined benefit fund.
Federal Register of Legislative Instruments F2015C00303
Disclosure of fees and other costs Schedule 10
Fees and Costs Template, example of annual fees and costs and Consumer Advisory
Warning for Product Disclosure Statements Part 2
Example of annual fees and costs Division 5
Clause 213
Corporations Regulations 2001 89
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Note: Defined benefit fund is defined in subregulation 1.03(1) of the SIS
Regulations.
Federal Register of Legislative Instruments F2015C00303
Schedule 10 Disclosure of fees and other costs
Part 2 Fees and Costs Template, example of annual fees and costs and Consumer
Advisory Warning for Product Disclosure Statements
Division 6 How to fill in the example of annual fees and costs
Clause 214
90 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 6—How to fill in the example of annual fees and
costs
214 Fees and costs must be ongoing amounts
The fees and costs stated in the example must be typical ongoing
fees that apply to the MySuper product or investment option.
Note: The example should not be based on “honeymoon rates”. It must be
consistent with the statement for an existing member or product holder
having the stated balance and level of contributions each year.
214A Example of annual fees and costs for a MySuper product—
lifecycle MySuper product
If the example of fees and costs for a MySuper product uses a
lifecycle MySuper product, the investment fee quoted in the
example must be the highest investment fee for a lifecycle stage of
the lifecycle MySuper product.
215 Minimum entry balance rule
If the minimum balance required to enter a superannuation entity
or a managed investment scheme is greater than $50 000, the
example of annual fees and costs must be based on an amount that
is the lowest multiple of $50 000 that exceeds the minimum entry
balance.
Example: If a superannuation entity or a managed investment scheme has a
minimum entry balance of $65 000, the relevant amount for the
example of annual fees and costs is $100 000.
216 Exit fees
If an exit fee may be charged, it must be described in footnote to
the table, based on:
(a) a balance of $50 000; or
Federal Register of Legislative Instruments F2015C00303
Disclosure of fees and other costs Schedule 10
Fees and Costs Template, example of annual fees and costs and Consumer Advisory
Warning for Product Disclosure Statements Part 2
How to fill in the example of annual fees and costs Division 6
Clause 217
Corporations Regulations 2001 91
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) if clause 215 applies—an amount that is a multiple of
$50 000.
217 Contribution fees
(1) The amounts of contribution fees to be inserted in the example of
annual fees and costs for a managed investment product, are
applied against a $5 000 investment.
(2) If a Product Disclosure Statement relates to a product:
(a) that is paid for by a single lump sum amount; and
(b) for which no additional contributions can be made;
the example of annual fees and costs should be modified by
removing references to contributions or contribution fees.
(3) The example must be based on a balance:
(a) of $50 000; or
(b) worked out in accordance with clause 215.
Note: If there is a fee paid for the initial contribution, it should be described
as the establishment fee.
218 Administration fees and investment fees for a superannuation
product
Administration fees
(1) The example of administration fees for a MySuper product or an
investment option offered by a superannuation entity is applied to
an amount of $50 000 or an amount that is a multiple of $50 000 if
clause 215 applies.
Note: In calculating the amount, do not include contributions that may be
made during the year.
(2) If there is a range in the amount of administration fees that may be
charged for a MySuper product or an investment option offered by
a superannuation entity, the example must use the highest
administration fees in the range.
Federal Register of Legislative Instruments F2015C00303
Schedule 10 Disclosure of fees and other costs
Part 2 Fees and Costs Template, example of annual fees and costs and Consumer
Advisory Warning for Product Disclosure Statements
Division 6 How to fill in the example of annual fees and costs
Clause 218A
92 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Investment fees
(3) The example of investment fees for a MySuper product or an
investment option offered by a superannuation entity is applied to
an amount of $50 000 or an amount that is a multiple of $50 000 if
clause 215 applies.
Note: In calculating the amount, do not include contributions that may be
made during the year.
(4) If there is a range in the amount of investment fees that may be
charged for a MySuper product or an investment option offered by
a superannuation entity, the example must use the highest
investment fees in the range.
Indirect costs for a MySuper product or investment option
(5) The example of indirect costs for a MySuper product or an
investment option offered by a superannuation entity must be
worked out by applying the indirect cost ratio for the MySuper
product or the investment option to an amount of $50,000 or an
amount that is a multiple of $50,000 if clause 215 applies.
218A Management costs for a managed investment product
(1) The example of management costs for an investment option
offered by a managed investment scheme is applied to an amount
of $50 000 or an amount that is a multiple of $50 000 if clause 215
applies.
Note: In calculating the amount, do not include contributions that may be
made during the year.
(2) If there is a range in the amount of management costs that may be
charged for an investment option offered by a managed investment
scheme, the example must use the highest management costs in the
range.
(3) Management costs that are not deducted directly from a product
holder’s account must be calculated using the indirect cost ratio for
Federal Register of Legislative Instruments F2015C00303
Disclosure of fees and other costs Schedule 10
Fees and Costs Template, example of annual fees and costs and Consumer Advisory
Warning for Product Disclosure Statements Part 2
How to fill in the example of annual fees and costs Division 6
Clause 219
Corporations Regulations 2001 93
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
the relevant investment option offered by the managed investment
scheme.
(4) Any percentage based management costs that are deducted directly
from a product holder’s account should be added to the percentage
amount calculated under subclause (3).
(5) Any dollar based management costs that are deducted directly from
a product holder’s account must be shown separately in the
management costs cell.
Example 1: Management costs: 2 % deducted directly from your account + 1.6%
deducted indirectly.
Example 2: Management costs: $52 per year ($1 per week) deducted directly from
your account + 1.6% deducted indirectly.
Example 3: Management costs: $52 per year ($1 per week) + 1% deducted
directly from your account + 1.6% deducted indirectly.
219 Withdrawal fees and exit fees
(1) The example of a withdrawal fee or an exit fee for a
superannuation product or a managed investment product is
applied against an amount of $50 000 or an amount that is a
multiple of $50 000 if clause 215 applies.
(2) In calculating the amount, do not include contributions that may be
made during the year.
220 If there is no generic MySuper product or balanced investment
option
Superannuation entities
(1) If a superannuation entity does not offer a generic MySuper
product, the example should be based on:
(a) where the superannuation entity offers a balanced investment
option—the balanced investment option under which most
assets of the superannuation entity are invested; and
Federal Register of Legislative Instruments F2015C00303
Schedule 10 Disclosure of fees and other costs
Part 2 Fees and Costs Template, example of annual fees and costs and Consumer
Advisory Warning for Product Disclosure Statements
Division 6 How to fill in the example of annual fees and costs
Clause 220
94 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) where the superannuation entity does not offer a balanced
investment option—the investment option under which most
assets of the superannuation entity are invested.
Managed investment schemes
(2) If a managed investment scheme does not offer a balanced
investment option, the example should be based on:
(a) where the scheme offers a default investment option—that
option; and
(b) where the scheme does not offer a default investment
option—the investment option under which most assets of
the scheme are invested.
Federal Register of Legislative Instruments F2015C00303
Disclosure of fees and other costs Schedule 10
Fees and Costs Template, example of annual fees and costs and Consumer Advisory
Warning for Product Disclosure Statements Part 2
Consumer Advisory Warning Division 7
Clause 221
Corporations Regulations 2001 95
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 7—Consumer Advisory Warning
221 Consumer advisory warning
DID YOU KNOW?
Small differences in both investment performance and fees and costs can have
a substantial impact on your long term returns.
For example, total annual fees and costs of 2% of your account balance
rather than 1% could reduce your final return by up to 20% over a 30 year
period
(for example, reduce it from $100 000 to $80 000).
You should consider whether features such as superior investment
performance or the provision of better member services justify higher fees
and costs.
Your employer may be able to negotiate to pay lower administration fees. Ask
the fund or your financial adviser.
TO FIND OUT MORE
If you would like to find out more, or see the impact of the fees based on your own
circumstances, the Australian Securities and Investments Commission (ASIC)
website (www.moneysmart.gov.au) has a [superannuation or managed investment
fee] calculator to help you check out different fee options.
222 Where to place the Consumer Advisory Warning
The Consumer Advisory Warning must be located at the beginning
of the fees section of the Product Disclosure Statement.
Federal Register of Legislative Instruments F2015C00303
Schedule 10 Disclosure of fees and other costs
Part 3 Fees and costs in periodic statements
Division 1 Other Management Costs
Clause 301
96 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 3—Fees and costs in periodic statements
Division 1—Other Management Costs
301 Indirect costs related to investment and administration of
accounts
(1) The following text and the appropriate amount, in dollars, must be
inserted after the part of the periodic statement that itemises
transactions during the period.
Indirect costs of your investment
This approximate amount has been deducted from your investment
and includes amounts that have reduced the return on your
investment but are not charged directly to you as a fee.
(2) The amount inserted must include:
(a) for a MySuper product or an investment option offered by a
superannuation entity—the indirect costs for the MySuper
product or investment option; and
(b) for an investment option offered by a managed investment
scheme—all management costs not deducted directly from a
product holder’s account during the reporting period.
(3) The amount must be shown as a single total amount in dollars.
(4) The amount for a managed investment product must be calculated
by multiplying the indirect cost ratio for the relevant investment
option by the product holder’s average account balance for the
option over the reporting period.
Federal Register of Legislative Instruments F2015C00303
Disclosure of fees and other costs Schedule 10
Fees and costs in periodic statements Part 3
Total fees Division 2
Clause 302
Corporations Regulations 2001 97
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2—Total fees
302 Total of fees in the periodic statement
(1) The following text and the appropriate amount, in dollars, must be
displayed:
(a) at the end of the part of the periodic statement that itemises
transactions during the period; or
(b) in a summary part of the periodic statement.
TOTAL FEES YOU PAID
This approximate amount includes all the fees and costs which affected your
investment during the period.
(2) The total fees you paid are the total of all fees and costs disclosed
in the periodic statement.
Federal Register of Legislative Instruments F2015C00303
Schedule 10 Disclosure of fees and other costs
Part 3 Fees and costs in periodic statements
Division 3 Additional Explanation of Fees and Costs
Clause 303
98 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 3—Additional Explanation of Fees and Costs
303 Matters to be included as additional explanation of fees and
costs
Superannuation products
(1) The following information must be included in the periodic
statement for a superannuation product under the heading
“Additional Explanation of Fees and Costs”, if it has not been
included in another part of the periodic statement:
(a) details of any activity fees, advice fees and insurance fees
that were incurred by the member during the period;
(b) for a superannuation product that is subject to tax—whether
the benefit of any tax deduction has been passed on to the
investor in the form of a reduced fee or cost.
Managed investment products
(2) The following information must be included in the periodic
statement under the heading “Additional Explanation of Fees and
Costs”, if it has not been included in another part of the periodic
statement:
(a) details of incidental fees, such as cheque dishonour fees, that
were incurred by the product holder during the period;
(b) details of any service fees that may have been incurred by the
product holder;
(c) for a managed investment product that is subject to tax—
whether the benefit of any tax deduction has been passed on
to the investor in the form of a reduced fee or cost.
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to sub-plans Part 1
Corporations Regulations 2001 99
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 10A—Modifications of Part 7.9 of
the Act (regulations 7.9.02, 7.9.04, 7.9.05, 7.9.06, 7.9.09C, 7.9.10B, 7.9.11C, 7.9.11N, 7.9.11V, 7.9.12,
7.9.24, 7.9.27, 7.9.30, 7.9.43, 7.9.47, 7.9.51, 7.9.56, 7.9.60, 7.9.61, 7.9.63, 7.9.73 and 8.4.02)
Part 1—Modifications relating to sub-plans
1.1 Paragraph 1012D(10)(b)
substitute
(b) a superannuation product is the same as another
superannuation product only if the other superannuation
product is:
(i) an interest in the same sub-plan; or
(ii) if there is no sub-plan—an interest in the same fund.
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 2 Modifications relating to Product Disclosure Statements for RSA products
100 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 2—Modifications relating to Product
Disclosure Statements for RSA products
2.1 After subsection 1012D(9B)
insert
Recommendation, issue or sale situation—takeover or merger
(9C) In a recommendation situation, issue situation or sale situation, the
issuer does not have to give a Product Disclosure Statement if a
person:
(a) becomes the holder of an RSA with an RSA institution; and
(b) does so as a direct result of:
(i) the takeover of the RSA provider with which the person
previously held an RSA by:
(A) the RSA institution; or
(B) a corporation that is a related corporation of the
RSA institution; or
(ii) a merger involving the RSA provider with which the
person previously held an RSA and which results in the
creation of the RSA institution; or
(iii) the transfer of any, or all of, the assets and liabilities of
the RSA provider with which the person previously held
an RSA to the RSA institution:
(A) under a provision of the Banking Act 1959, the
Life Insurance Act 1995 or of any other law of
the Commonwealth, a State or a Territory; or
(B) under a voluntary transfer of engagements; or
(C) on the request of the Australian Prudential
Regulation Authority.
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to insurance options under contract associated with
superannuation interest Part 3
Corporations Regulations 2001 101
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 3—Modifications relating to insurance options
under contract associated with
superannuation interest
3.1 After subsection 1012D(9B)
insert
Insurance options
(9C) A product issuer does not have to give a Product Disclosure
Statement to a person if:
(a) a product holder seeks to change the coverage of insurance
options under a contract associated with a superannuation
interest; and
(b) information in relation to the change of insurance options has
not already been given in a periodic statement or in
accordance with other periodic reporting requirements under
Division 3.
(9D) If subsection (9C) applies:
(a) the product issuer must ensure that the product holder has
sufficient information to enable the product holder to make
an informed decision; and
(b) that subsection does not prevent the product issuer from
complying with paragraph (a) by giving the product holder a
Product Disclosure Statement.
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 5 Modifications relating to First Home Saver Accounts
102 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 5—Modifications relating to First Home Saver
Accounts
5.1 Subsection 946AA(4)
omit
The
insert
Subject to subsection (5A), the
5.2 Subsection 946AA(5)
omit
The
insert
Subject to subsection (5A), the
5.3 After subsection 946AA(5)
insert
(5A) Subsections (4) and (5) do not apply if the small investment advice
is about a capital guaranteed FHSA product.
5.4 Paragraph 1013C(1)(a)
substitute
(a) must:
(i) include the statements and information required by
regulations made for this subparagraph; and
(ii) be in the form required by regulations made for this
subparagraph; and
5.5 Subsection 1013C(1), note
omit
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to First Home Saver Accounts Part 5
Corporations Regulations 2001 103
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
5.6 Subsection 1013C(2)
omit
sections 1013D and 1013E
insert
subparagraph (1)(a)(i)
5.7 After subsection 1013C(7)
insert
(8) Regulations made for subparagraph (1)(a)(i) or (ii) may authorise
ASIC to determine or amend the statements and information
included in, and the form of, a Product Disclosure Statement.
5.8 Sections 1013D and 1013E
omit
5.9 Subsection 1013L(7)
substitute
(7) The regulations may:
(a) prescribe circumstances in which a Product Disclosure
Statement must not be made up of 2 or more documents; and
(b) impose additional requirements to be complied with if a
Product Disclosure Statement is made up of 2 or more
documents.
5.10 Section 1013M, at the foot
insert
Note: A Product Disclosure Statement for an FHSA product cannot be
combined with a Financial Services Guide in a single document—see
subsection 942DA (3) and subregulation 7.7.08A (1A) of the
Corporations Regulations 2001.
5.11 After section 1013M
insert
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 5 Modifications relating to First Home Saver Accounts
104 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
1013N Combining Product Disclosure Statement and another
document
A Product Disclosure Statement must not be attached to, or
combined with, another document.
Note 1: A Product Disclosure Statement itself may be given as 2 or more
documents in certain circumstances—see section 1013L and
regulation 7.9.10C of the Corporations Regulations 2001.
Note 2: A Product Disclosure Statement may be given to a person along with
other documents, but must generally be the first document given—see
regulation 7.9.10D of the Corporations Regulations 2001.
5.12 Part 7.9, Division 2, Subdivision D
omit
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications for margin loan Part 5A
Corporations Regulations 2001 105
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 5A—Modifications for margin loan
5A.1 Section 1011B, after definition of regulated person
insert
Regulations means the Corporations Regulations 2001.
5A.2 Subsection 1013C(1)
substitute
(1) A Product Disclosure Statement for a margin loan to which
Subdivision 4.2A of Division 4 of Part 7.9 of the Corporations
Regulations 2001 applies must:
(a) include the statements and information required by
regulations made for this paragraph; and
(b) be in the form required by regulations made for this
paragraph.
(1A) If a law other than this Act or regulations under this Act requires
the responsible person for the Product Disclosure Statement:
(a) to give, disclose or provide a matter; or
(b) to include a matter in the Statement;
the Statement may make provision for the matter by applying,
adopting or incorporating the matter as in force at a particular time
or as in force from time to time.
(1B) In addition to subsection (1A), a Product Disclosure Statement may
make provision for a matter contained in writing by applying,
adopting or incorporating the matter as in force at a particular time
or as in force from time to time.
(1C) If a Product Disclosure Statement applies, adopts or incorporates a
matter contained in writing:
(a) the applied, adopted or incorporated matter forms part of the
Statement; and
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 5A Modifications for margin loan
106 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the responsible person for the Statement is not required to
give the document which provides for the matter to a person
(as part of giving the Statement or later) if that person has not
asked for the document; and
(c) the responsible person for the Statement must give the
document which provides for the matter to a person if that
person asks for the document.
(1D) The regulations may prescribe requirements for applying, adopting,
or incorporating a matter contained in writing in a Product
Disclosure Statement.
(1E) A Product Disclosure Statement may refer to information, other
than information to which subsection (1A) or (1B) applies, that is
set out in another document; and
(1F) If the Product Disclosure Statement refers to other information as
permitted by subsection (1E), that information does not form part
of the Statement.
Note: Although the information mentioned in subsection (1F) would not
form part of the Product Disclosure Statement, it would be subject to
requirements imposed by the Act or these Regulations such as the
prohibition on making misleading or deceptive statements.
5A.3 Section 1013D
omit
5A.4 Section 1013E
omit
5A.5 Section 1013L
substitute
1013L When Product Disclosure document may consist of 2 or more
documents
A Product Disclosure Statement may consist of 2 or more
documents, only if:
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications for margin loan Part 5A
Corporations Regulations 2001 107
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(a) one of the documents is a document that complies with the
requirements for a Product Disclosure Statement under this
Act and the Regulations; and
(b) the other document or documents contain a matter in writing
that is applied, adopted or incorporated by the document
mentioned in paragraph (a).
5A.6 Subdivision D, Division 2
omit
5A.7 Subsection 1015D(3)
omit
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 5B Modifications for superannuation products to which Subdivision 4.2B of
Division 4 of Part 7.9 applies
108 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 5B—Modifications for superannuation
products to which Subdivision 4.2B of
Division 4 of Part 7.9 applies
5B.1 Section 1011B, after definition of regulated person
insert
Regulations means the Corporations Regulations 2001.
5B.2 Subsection 1013C(1)
substitute
(1) A Product Disclosure Statement for a superannuation product to
which Subdivision 4.2B of Division 4 of Part 7.9 of the
Corporations Regulations 2001 applies must:
(a) include the statements and information required by
regulations made for this paragraph; and
(b) be in the form required by regulations made for this
paragraph.
(1A) If a law other than this Act or regulations under this Act requires
the responsible person for the Product Disclosure Statement:
(a) to give, disclose or provide a matter; or
(b) to include a matter in the Statement;
the Statement may make provision for the matter by applying,
adopting or incorporating the matter as in force at a particular time
or as in force from time to time.
(1B) In addition to subsection (1A), a Product Disclosure Statement may
make provision for a matter contained in writing by applying,
adopting or incorporating the matter as in force at a particular time
or as in force from time to time.
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications for superannuation products to which Subdivision 4.2B of Division 4 of
Part 7.9 applies Part 5B
Corporations Regulations 2001 109
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(1C) If a Product Disclosure Statement applies, adopts or incorporates a
matter contained in writing:
(a) the applied, adopted or incorporated matter forms part of the
Statement; and
(b) the responsible person for the Statement is not required to
give the document which provides for the matter to a person
(as part of giving the Statement or later) if that person has not
asked for the document; and
(c) the responsible person for the Statement must give the
document which provides for the matter to a person if that
person asks for the document.
(1D) The regulations may prescribe requirements for applying, adopting,
or incorporating a matter contained in writing in a Product
Disclosure Statement.
(1E) A Product Disclosure Statement may refer to information, other
than information to which subsection (1A) or (1B) applies, that is
set out in another document; and
(1F) If the Product Disclosure Statement refers to other information as
permitted by subsection (1E), that information does not form part
of the Statement.
Note: Although the information mentioned in subsection (1F) would not
form part of the Product Disclosure Statement, it would be subject to
requirements imposed by the Act or these Regulations such as the
prohibition on making misleading or deceptive statements.
5B.3 Section 1013D
omit
5B.4 Section 1013E
omit
5B.5 Section 1013L
substitute
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 5B Modifications for superannuation products to which Subdivision 4.2B of
Division 4 of Part 7.9 applies
110 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
1013L When Product Disclosure Statement may consist of 2 or more
documents
A Product Disclosure Statement may consist of 2 or more
documents only if:
(a) one of the documents is a document that complies with the
requirements for a Product Disclosure Statement under this
Act and the Regulations; and
(b) the other document or documents contain a matter in writing
that is applied, adopted or incorporated by the document
mentioned in subparagraph (a).
5B.6 Subsection 1015D(3)
omit
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications for simple managed investment scheme Part 5C
Corporations Regulations 2001 111
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 5C—Modifications for simple managed
investment scheme
5C.1 Section 1011B, after definition of regulated person
insert
Regulations means the Corporations Regulations 2001.
5C.2 Subsection 1013C(1)
substitute
(1) A Product Disclosure Statement for a simple managed investment
scheme to which Subdivision 4.2C of Division 4 of Part 7.9 of the
Corporations Regulations 2001 applies must:
(a) include the statements and information required by
regulations made for this paragraph; and
(b) be in the form required by regulations made for this
paragraph; and
(c) relate only to 1 simple managed investment scheme.
(1A) If a law other than this Act or regulations under this Act requires
the responsible person for the Product Disclosure Statement:
(a) to give, disclose or provide a matter; or
(b) to include a matter in the Statement;
the Statement may make provision for the matter by applying,
adopting or incorporating the matter as in force at a particular time
or as in force from time to time.
(1B) In addition to subsection (1A), a Product Disclosure Statement may
make provision for a matter contained in writing by applying,
adopting or incorporating the matter as in force at a particular time
or as in force from time to time.
(1C) If a Product Disclosure Statement applies, adopts or incorporates a
matter contained in writing:
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 5C Modifications for simple managed investment scheme
112 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the applied, adopted or incorporated matter forms part of the
Statement; and
(b) the responsible person for the Statement is not required to
give the document which provides for the matter to a person
(as part of giving the Statement or later) if that person has not
asked for the document; and
(c) the responsible person for the Statement must give the
document which provides for the matter to a person if that
person asks for the document.
(1D) The regulations may prescribe requirements for applying, adopting,
or incorporating a matter contained in writing in a Product
Disclosure Statement.
(1E) A Product Disclosure Statement may refer to information, other
than information to which subsection (1A) or (1B) applies, that is
set out in another document; and
(1F) If the Product Disclosure Statement refers to other information as
permitted by subsection (1E), that information does not form part
of the Statement.
Note: Although the information mentioned in subsection (1F) would not
form part of the Product Disclosure Statement, it would be subject to
requirements imposed by the Act or these Regulations such as the
prohibition on making misleading or deceptive statements.
5C.2 Section 1013D
omit
5C.3 Section 1013E
omit
5C.4 Section 1013L
substitute
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications for simple managed investment scheme Part 5C
Corporations Regulations 2001 113
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
1013L When Product Disclosure Statement may consist of 2 or more
documents
A Product Disclosure Statement may consist of 2 or more
documents only if:
(a) one of the documents is a document that complies with the
requirements for a Product Disclosure Statement under this
Act and the Regulations; and
(b) the other document or documents contain a matter in writing
that is applied, adopted or incorporated by the document
mentioned in subparagraph (a).
5C.5 Subsection 1015D(3)
omit
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 6 Modifications relating to application forms and Product Disclosure Statements
for standard employer-sponsor arrangements and successor funds
114 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 6—Modifications relating to application forms
and Product Disclosure Statements for
standard employer-sponsor arrangements
and successor funds
6.1 After subsection 1016A(2)
insert
(2A) Subsection (2) does not apply in relation to a member who:
(a) held an interest in a superannuation fund as a standard
employer-sponsored member; and
(b) is issued with an interest in relation to another sub-plan of the
superannuation fund as a result of a transfer related to the
cessation of the member’s employment with the
employer-sponsor.
6.2 After subsection 1016A(3)
insert
(3A) Subsection (3) does not apply in relation to a superannuation
product if:
(a) the issuer is a public offer entity that is a successor fund; and
(b) an employer became a standard employer-sponsor of a fund
in the following way:
(i) the employer was a standard employer-sponsor of a
fund (fund 1);
(ii) the benefits of members in fund 1 were transferred to a
successor fund;
(iii) the employer was a standard employer-sponsor of fund
1 immediately before those benefits were so transferred;
(iv) the employer was a standard employer-sponsor of the
successor fund immediately after those benefits were so
transferred.
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to application forms and Product Disclosure Statements for
standard employer-sponsor arrangements and successor funds Part 6
Corporations Regulations 2001 115
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
6.3 After subsection 1012D(9)
insert
Recommendation, issue or sale situation—successor fund
(9A) In a recommendation situation, issue situation or sale situation, a
regulated person does not have to give the client a Product
Disclosure Statement if:
(a) the financial product is an RSA product; and
(b) subsection 1012I(2) applies.
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 6A Modifications relating to MySuper measures
116 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 6A—Modifications relating to MySuper
measures
6A.1 After subsection 1017BA(4)
Insert:
(4AA) Despite paragraph 1539(a) of the Act, this section applies, to the
extent that it relates to MySuper products, on and after
31 December 2013.
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to life pensioners, members subject to compulsory protection of
small amounts and members with small amounts that are expected to grow quickly
Part 7
Corporations Regulations 2001 117
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 7—Modifications relating to life pensioners,
members subject to compulsory protection
of small amounts and members with small
amounts that are expected to grow quickly
7.1 After subsection 1017D(7)
insert
(8) The trustee of a fund need not give a periodic statement or other
information to a member:
(a) in relation to any period during which the member is a life
pensioner of the fund; or
(b) if the member is a pensioner of the fund, and has requested
that that information not be provided.
(9) Subsection (8) does not apply to information mentioned in
subregulation 7.9.21A (1) of the Corporations Regulations 2001.
(10) If, at the end of a reporting period, a member of a regulated
superannuation fund is a protected member, the trustee need give
the member only the following information in the periodic
statement for that reporting period:
(a) the contact details of the fund;
(b) either:
(i) the amount of the member’s withdrawal benefit at the
end of the reporting period; or
(ii) the total of the amounts that have been received by the
fund in respect of the member;
(c) in so far as applicable, the information mentioned in
subregulation 7.9.21(1) of the Corporations
Regulations 2001.
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 7 Modifications relating to life pensioners, members subject to compulsory
protection of small amounts and members with small amounts that are expected to grow
quickly
118 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(11) If, in relation to a member of a fund, the trustee of the fund takes
advantage of subsections (12) to (15), the trustee must not, in
relation to that member, take advantage of subsection (10).
(12) If, at the end of a reporting period, the trustee of a fund has a
reasonable expectation that a particular protected member will
have a withdrawal benefit of at least $1 500 within 12 months after
the end of that reporting period, the trustee need not show, in the
periodic statement, the effect of the member-protection standards.
(13) For subsection (12), a trustee is not taken to have a reasonable
expectation that a member will have a withdrawal benefit of at
least $1 500 within the period of 12 months referred to in that
subsection if termination of the member’s employment with a
current employer (not being an employer who or that is an
associate, within the meaning of paragraph 70(a) of the SIS Act, of
the member) would be likely to result in the member’s withdrawal
benefit being below $1 500 at the end of that period.
(14) If, at the end of the 12-month period, the member’s withdrawal
benefit has not reached $1 500, the trustee must show, in the
periodic statement provided to the member for each reporting
period ending on or after the end of the 12-month period, the effect
of the member-protection standards.
(15) The trustee of a fund must not take advantage of subsection (12) in
respect of a person more than once unless, after an occasion on
which the trustee does so but before the next occasion, the member
leaves and rejoins the fund.
(16) In this section:
mandated employer-financed benefits has the same meaning as in
subregulation 5.01(1) of the Superannuation Industry (Supervision)
Regulations 1994.
member protection standards has the same meaning as in the
Superannuation Industry (Supervision) Regulations 1994.
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to life pensioners, members subject to compulsory protection of
small amounts and members with small amounts that are expected to grow quickly
Part 7
Corporations Regulations 2001 119
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
protected member has the same meaning as in the Superannuation
Industry (Supervision) Regulations 1994.
(17) For the definition of protected member in subsection (16), a
benefit in a fund is taken to contain or to have contained mandated
employer-financed benefits unless:
(a) if the benefits arose in relation to contributions made before
1 July 1995—the trustee of the fund reasonably believes
otherwise; or
(b) if the benefits arose in relation to contributions made on or
after 1 July 1995—the trustee of the fund knows otherwise.
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 8 Modifications relating to periodic statements for RSA providers
120 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 8—Modifications relating to periodic
statements for RSA providers
8.1 After subsection 1017D(7)
insert
(8) If:
(a) a person ceases to be an RSA holder before RSA information
in respect of a particular reporting period (the relevant
period) is given; and
(b) either:
(i) the RSA provider gives, or intends to give, information
to the person in respect of a reporting period that is the
same as, or includes the whole of, the relevant period; or
(ii) if the person ceases to be an RSA holder by reason of
death—the RSA provider complies in relation to the
person with the relevant requirements of this Act and
the regulations;
the RSA provider need not give RSA information, in respect of the
relevant period, to or in relation to the person.
(9) If, at the end of a reporting period, an RSA holder is a protected
RSA holder, the RSA provider need give the RSA holder only the
following information for the reporting period:
(a) the contact details of the RSA provider;
(b) either:
(i) the amount of the RSA holder’s withdrawal benefit at
the end of the reporting period; or
(ii) the total of the amounts that have been received by the
RSA provider in respect of the RSA holder;
(c) the effective rate of net interest applied to the RSA for each
year of the previous 5 years ending at the end of the reporting
period;
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to periodic statements for RSA providers Part 8
Corporations Regulations 2001 121
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(d) the compound average of the annual effective rate of net
interest applied to the RSA for each year of the previous 5
years ending at the end of the reporting period;
(e) details (in summary form) of arrangements that the RSA
provider has to deal with inquiries or complaints;
(f) a statement that other information is available on request;
(g) a suggestion that the RSA holder may wish to consider:
(i) other superannuation arrangements that may provide a
greater return over the long term; and
(ii) seeking advice on alternative investment strategies that
may be more suitable;
(h) if the RSA provider reduced the RSA holder’s benefits in
connection with payment of a superannuation contributions
surcharge or an advance instalment of surcharge:
(i) the amount deducted; and
(ii) if there is a difference between the amount deducted and
the amount assessed under subsection 15(1) of the
Superannuation Contributions Tax (Assessment and
Collection) Act 1997 or between the amount deducted
and the amount determined under subsection 15(2) of
that Act—a statement explaining the difference.
(10) A nil amount need not be disclosed.
(11) If, in relation to an RSA holder, the RSA provider takes advantage
of subsections (13) to (16), the RSA provider must not, in relation
to the RSA holder, take advantage of subsection (9).
(12) If, at the end of a reporting period, an RSA has not been in
existence for 5 years, the references in paragraphs (9)(c) and (d) to
5 years are taken to be references to the whole period of existence
of the RSA.
(13) If, at the end of a reporting period, an RSA provider has a
reasonable expectation that an RSA holder will have a withdrawal
benefit of at least $1 500 within 12 months after the end of the
reporting period, the RSA provider need not show, in RSA
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 8 Modifications relating to periodic statements for RSA providers
122 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
information provided to the RSA holder, the effect of the RSA
holder-protection standards.
(14) For subsection (12), an RSA provider is not taken to have a
reasonable expectation that the RSA holder will have a withdrawal
benefit of $1 500 within the period of 12 months mentioned in that
subsection if termination of the RSA holder’s employment with a
current employer would be likely to result in the RSA holder’s
withdrawal benefit being below $1 500 at the end of that period.
(15) If, at the end of the 12-month period, the RSA holder’s withdrawal
benefit has not reached $1 500, the RSA provider must show, in
RSA information provided to the RSA holder for each reporting
period ending on or after the end of the 12-month period, the effect
of the RSA holder-protection standards.
(16) An RSA provider must not take advantage of subsection (13) in
respect of a person more than once unless, after an occasion on
which the RSA provider does so but before the next occasion, the
person ceases to be the holder of the RSA and subsequently
becomes the holder of an RSA provided by the same RSA
provider.
(17) In this section:
mandated employer-financed benefits has the same meaning as in
the Retirement Savings Accounts Regulations 1997.
protected member has the same meaning as in the Retirement
Savings Accounts Regulations 1997.
RSA holder-protection standards has the same meaning as in the
Retirement Savings Accounts Regulations 1997.
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to periodic statements for superannuation entities and RSA
providers Part 9
Corporations Regulations 2001 123
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 9—Modifications relating to periodic
statements for superannuation entities and
RSA providers
9.1 After subsection 1017C(7)
insert
(7A) If:
(a) a concerned person requests information under subsection (2)
or (3) in relation to a facility, under the concerned person’s
existing holding of a superannuation product, to modify:
(i) an investment strategy; or
(ii) a contribution level; or
(iii) insurance coverage; and
(b) the information has not already been given in a periodic
statement or in accordance with other periodic reporting
requirements under Division 3;
it is sufficient compliance with a requirement imposed by this
section if the responsible person provides an up to date Product
Disclosure Statement that includes information on the ability and
effect of making the modification.
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 10 Modifications relating to ongoing disclosure of material changes and
significant events in relation to superannuation products and RSAs
124 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 10—Modifications relating to ongoing
disclosure of material changes and
significant events in relation to
superannuation products and RSAs
10.1 After subsection 1017B(5)
insert
Provision of advice before event
(5A) For a superannuation product or an RSA product, if a product
holder would reasonably be expected to be informed of:
(a) a decision of the issuer; or
(b) the winding-up or termination of the superannuation entity;
before it occurs, the issuer must give the product holder
information about the event as soon as practicable after it becomes
reasonable for the issuer to expect that the event will happen
(except that the information does not need to be given more than 3
months before the expected date of the event).
Changes to governing rules or terms and conditions
(5B) For subsections 1017B(5), (6) and (7) a reference to an event
includes the following:
(a) a change to the governing rules of a superannuation entity
(other than a change that gives effect to a payment split) of a
kind that has an adverse effect on:
(i) the amount of the relevant financial product; or
(ii) the benefits to which the holder of the relevant financial
product may become entitled; or
(iii) the circumstances in which the benefits to which the
holder of the relevant financial product may become
entitled would become payable;
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to ongoing disclosure of material changes and significant events
in relation to superannuation products and RSAs Part 10
Corporations Regulations 2001 125
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(b) a change to the terms and conditions of an RSA (other than a
change that gives effect to a payment split) of a kind that has
an adverse effect on:
(i) the amount of the RSA; or
(ii) the benefits to which the RSA holder may become
entitled; or
(iii) the circumstances in which the benefits to which the
RSA holder may become entitled would become
payable;
(c) any other change in relation to an RSA, caused by any other
act carried out or consented to by the issuer, of a kind that
has an adverse effect on:
(i) the amount of the RSA; or
(ii) the benefits to which the RSA holder may become
entitled; or
(iii) the circumstances in which the benefits to which the
RSA holder may become entitled would become
payable.
Notice of non-compliance
(5C) If the issuer of a superannuation product receives a notice of
non-compliance, the issuer must give to each product holder:
(a) a statement of the circumstances (including details of the
non-compliance) that gave rise to the issue of the notice; and
(b) a statement of the effect on the fund of the issue of the notice
(including details of the effect on the entity’s taxation
position); and
(c) details of action that the issuer has taken, or proposes to take,
to have the entity become a complying fund or a pooled
superannuation trust for the purposes of Division 2 of Part 5
of the Act.
(5D) For subsection (5C), a notice of non-compliance means a notice
issued under section 40 of the SIS Act to the trustee of a fund
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Schedule 10A Modifications of Part 7.9 of the Act
Part 10 Modifications relating to ongoing disclosure of material changes and
significant events in relation to superannuation products and RSAs
126 Corporations Regulations 2001
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stating that the fund is not a complying fund or a pooled
superannuation trust.
Fund and RSA transfers
(5E) For subsections (5), (6) and (7), a reference to an event includes:
(a) in relation to a superannuation product:
(i) the transfer of a member to a different category of
membership or to a different fund; and
(ii) the transfer of the benefits of a member to an RSA or
EPSSS (otherwise than under a payment split); and
(b) in relation to an RSA product—the transfer of an amount of
an RSA (otherwise than under a payment split) to:
(i) another RSA offered by an RSA product issuer; or
(ii) a superannuation entity; or
(iii) an EPSSS.
10.2 After subsection 1017B(9)
insert
(10) This section does not apply to a change or event in relation to a
superannuation product or an RSA product that relates to a
payment split in respect of the product.
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to charges for information requested Part 11
Corporations Regulations 2001 127
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 11—Modifications relating to charges for
information requested
11.1 After subsection 1017C(8)
insert
(8A) The obligation of a responsible person under this section to give
information on request by a person arises only if the person pays
the amount specified by the responsible person as the charge for
giving the information.
(8B) The amount of the charge must not exceed the reasonable cost to
the responsible person of giving the information (including all
reasonably related costs—for example, costs of searching for,
obtaining and collating the information).
(8C) A member who acts as a representative for or on behalf of a policy
committee is not liable to any charge for information given to the
member in that capacity.
(8D) In the case of information to be supplied to a concerned person
under Subdivision 5.9 of Part 7.9 of the Corporations
Regulations 2001, a charge may be made only if:
(a) the person to whom the information is to be given has
requested the information; and
(b) the person had been given the same information during the
period of 12 months immediately preceding the date on
which the request is made.
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 12 Modifications relating to information when member leaves a fund
128 Corporations Regulations 2001
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Part 12—Modifications relating to information
when member leaves a fund
12.1 After subsection 1017D(3)
insert
(3A) For a superannuation product or an RSA product, the periodic
statement in relation to the reporting period mentioned in
paragraph 1017D(2)(d) must be given as soon as the issuer
becomes aware that that person or another person (the former
product holder) has ceased to hold the product, and, in particular,
the issuer must make reasonable efforts to give the information
within 1 month after becoming aware that the former product
holder has ceased to hold the product.
(3B) The issuer of a superannuation product or an RSA product must
make all reasonable efforts:
(a) to give the information about the amount of insured death or
disability benefits to which the former product holder may
have been entitled; and
(b) to give the information about a continuation option (if any)
applying to those benefits (as mentioned in either
paragraph 7.9.54(b) or 7.9.65(b) of the Corporations
Regulations 2001) in a reasonable time before the option
lapses.
(3C) Subject to subsection (3D), if a person ceases to hold a
superannuation product or RSA product:
(a) after the end of the completed reporting period (the
completed period); and
(b) before the periodic report is issued for that period;
the information required by this section to be given to or in relation
to the person may be given in respect of the period consisting of
the completed period and the period mentioned in
paragraph 1017D(2)(d) instead of the period in respect of the
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to information when member leaves a fund Part 12
Corporations Regulations 2001 129
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person’s periodic statement for the period mentioned in
paragraph 1017D(2)(d).
(3D) Subsection (3C) does not apply if the period mentioned in
paragraph 1017D(2)(d) is greater than:
(a) for a particular superannuation product—6 months; or
(b) for a particular RSA product—3 months.
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 13 Modifications relating to exceptions to exit reporting period provisions
130 Corporations Regulations 2001
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Part 13—Modifications relating to exceptions to
exit reporting period provisions
13.1 After subsection 1017D(7)
insert
(8) An RSA provider need not give information under this section to
the holder of an RSA product who is transferring the amount of the
RSA product to another RSA, a superannuation entity or an EPSSS
if:
(a) the RSA holder has received sufficient information under
Subdivision 5.8 of Part 7.9 of the Corporations
Regulations 2001 to enable the RSA holder to understand the
effect of the transfer; and
(b) the RSA provider reasonably believes that the RSA holder
does not need the information because the RSA holder has
received or will receive from the RSA institution, or the
trustee of the superannuation entity or EPSSS to which the
amount is being transferred, information relevant to the RSA
holder in respect of the exit reporting period, to the same
general effect as that required under Subdivisions 5.2 and 5.3
of Part 7.9 of the Corporations Regulations 2001.
(9) A superannuation product provider need not give information
under this section to the holder of a superannuation product who is
transferring to another superannuation entity or to an EPSSS, or
whose benefits are being transferred into an RSA if:
(a) the product holder has received sufficient information under
Subdivision 5.8 of Part 7.9 of the Corporations
Regulations 2001 to enable the product holder to understand
the effect of the transfer; and
(b) the superannuation product provider reasonably believes that
the product holder does not need the information because the
product holder has received or will receive, from the RSA
institution, or from the trustee of the superannuation entity or
EPSSS to which the amount is being transferred, information
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to exceptions to exit reporting period provisions Part 13
Corporations Regulations 2001 131
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relevant to the product holder in respect of the exit reporting
period, to the same general effect as that required under
Subdivision 5.2 of Part 7.9 of the Corporations
Regulations 2001.
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 14 Modifications relating to obligation to give information about financial
products
132 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 14—Modifications relating to obligation to
give information about financial products
14.1 After subsection 1017B(7)
insert
(7A) Subject to subsections (7B) and (7C), this section does not apply if:
(a) the responsible person has an address for a concerned person,
and:
(i) is satisfied on reasonable grounds that that address is
incorrect; and
(ii) has taken reasonable steps to locate the concerned
person but has been unable to do so; or
(b) the responsible person has no address for the concerned
person, and:
(i) has been unable to obtain an address for the concerned
person; and
(ii) has taken reasonable steps to locate the concerned
person, but has been unable to do so.
(7B) If the responsible person has refrained, in reliance on
subsection (7A), from giving information to a concerned person,
the responsible person must give information to the concerned
person if the responsible person later becomes aware of the
concerned person’s address or location.
(7C) Subsection (7B) applies only in respect of information that the
responsible person becomes liable to give to the concerned person
after becoming aware of the concerned person’s address or
location.
14.2 After subsection 1017C(8)
insert
(8A) Subject to subsections (8B) and (8C), this section does not apply if:
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(a) the responsible person has an address for a concerned person,
and:
(i) is satisfied on reasonable grounds that that address is
incorrect; and
(ii) has taken reasonable steps to locate the concerned
person but has been unable to do so; or
(b) the responsible person has no address for the concerned
person, and:
(i) has been unable to obtain an address for the concerned
person; and
(ii) has taken reasonable steps to locate the concerned
person, but has been unable to do so.
(8B) If the responsible person has refrained, in reliance on
subsection (8A), from giving information to a concerned person,
the responsible person must give information to the concerned
person if the responsible person later becomes aware of the
concerned person’s address or location.
(8C) Subsection (8B) applies only in respect of information that the
responsible person becomes liable to give to the concerned person
after becoming aware of the concerned person’s address or
location.
14.3 After subsection 1017D(7)
insert
(8) Subject to subsections (9) and (10), this section does not apply if:
(a) the issuer has an address for a holder, and:
(i) is satisfied on reasonable grounds that that address is
incorrect; and
(ii) has taken reasonable steps to locate the holder but has
been unable to do so; or
(b) the issuer has no address for the holder, and:
(i) has been unable to obtain an address for the holder; and
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 14 Modifications relating to obligation to give information about financial
products
134 Corporations Regulations 2001
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(ii) has taken reasonable steps to locate the holder, but has
been unable to do so.
(9) If the issuer has refrained, in reliance on subsection (8), from
giving information to a holder, the issuer must give information to
the holder if the issuer later becomes aware of the holder’s address
or location.
(10) Subsection (9) applies only in respect of information that the issuer
becomes liable to give to the holder after becoming aware of the
holder’s address or location.
14.4 After subsection 1017DA(3)
insert
(3A) Subject to subsections (3B) and (3C), this section does not apply if:
(a) the trustee has an address for a holder or former holder, and:
(i) is satisfied on reasonable grounds that that address is
incorrect; and
(ii) has taken reasonable steps to locate the holder or former
holder but has been unable to do so; or
(b) the trustee has no address for the holder or former holder,
and:
(i) has been unable to obtain an address for the holder or
former holder; and
(ii) has taken reasonable steps to locate the holder or former
holder, but has been unable to do so.
(3B) If the trustee has refrained, in reliance on subsection (3A), from
giving information to a holder or former holder, the trustee must
give information to the holder or former holder if the trustee later
becomes aware of the holder’s or former holder’s address or
location.
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to obligation to give information about financial products Part
14
Corporations Regulations 2001 135
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(3C) Subsection (3B) applies only in respect of information that the
trustee becomes liable to give to the holder or former holder after
becoming aware of the holder’s or former holder’s address or
location.
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 15 Modifications for confirmation of transactions
136 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 15—Modifications for confirmation of
transactions
15.1 After subsection 1017F(5A)
insert
(5B) Despite subsection (5), if:
(a) the cost of a transaction (including taxes and charges) is not
known at the time at which confirmation of the transaction
would be required to be given; and
(b) all of the other information required under subsection (7) in
relation to confirmation of the transaction is known at that
time;
the confirmation of the transaction is to be provided in accordance
with subsection (5C).
(5C) Confirmation is to be provided as follows:
(a) all of the information required, except for the cost of the
transaction, is to be provided as soon as practicable in
accordance with subsection (5);
(b) the cost of the transaction may be provided in whichever of
the following can be done first:
(i) a secondary confirmation notice provided as soon as
practicable after the cost is known;
(ii) a standing facility mentioned in paragraph 1017F(5)(b);
(iii) the first periodic report under section 1017D after the
cost is known.
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to reporting periods Part 16
Corporations Regulations 2001 137
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 16—Modifications relating to reporting
periods
16.1 Paragraph 1017D(2)(a)
substitute
(a) each reporting period lasts for:
(i) a period, not exceeding 1 year, fixed by the issuer; or
(ii) a longer period fixed by ASIC on the application of the
issuer to which the period relates;
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 17 Modifications relating to application forms for specified superannuation
products
138 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 17—Modifications relating to application
forms for specified superannuation
products
17.1 After subsection 1012B(4)
insert
(4A) A regulated person:
(a) need not give a client a Product Disclosure Statement for a
financial product at or before the time when it would
otherwise be required to be given; and
(b) must give the client the Product Disclosure Statement as soon
as is reasonably practical and in any event within 3 months
after the product is issued to the client; and
(c) need not give the client the Product Disclosure Statement at
all if the client ceases to be a member of the superannuation
fund concerned before the regulated person is required to
give the Product Disclosure Statement under paragraph (b).
(4B) Subsections (3), (4) and (4A) apply only in respect of:
(a) in the case of an eligible rollover fund:
(i) persons who become members of the fund by being
issued with a superannuation interest under section 243
of the SIS Act; and
(ii) persons who become members of the fund in
circumstances mentioned in section 89 of the RSA Act;
and
(b) in the case of a public offer superannuation fund that is not a
successor fund in relation to the financial product issued to
the client:
(i) standard employer-sponsored members of the fund; and
(ii) persons who become members of the fund in
circumstances mentioned in regulation 7.9.06B of the
Corporations Regulations 2001.
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to application forms for specified superannuation products Part
17
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17.2 After subsection 1012I(2B)
insert
(2C) If a trustee of an EPSSS:
(a) applies, in circumstances mentioned in regulation 7.9.06B of
the Corporations Regulations 2001, on behalf of a person for
the issue of an interest in a relevant superannuation entity;
and
(b) has not previously applied in those circumstances for the
issue of an interest in that entity on behalf of any person;
the person (the issuer) who is to issue the interest to the person
must, at or before the time when the interest is issued to the person,
give the trustee a Product Disclosure Statement in accordance with
this Division for the interest.
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 18 Modification of Part 7.9 of the Act—New Zealand offer documents replace
Product Disclosure Statements where an offer relates to interests in a New Zealand
managed investment scheme
140 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 18—Modification of Part 7.9 of the Act—New
Zealand offer documents replace Product
Disclosure Statements where an offer
relates to interests in a New Zealand
managed investment scheme
18.1 After subsection 1012D(9D)
insert
Recommendation, issue or sale situation—New Zealand mutual
recognition scheme for securities
(9E) In a recommendation situation, issue situation or sale situation, the
regulated person does not have to give the client a Product
Disclosure Statement for a financial product if:
(a) the regulated person reasonably believes that there is a
recognised offer under Chapter 8 in relation to offer of the
financial product; and
(b) the financial product is an interest in a managed investment
scheme governed by the laws of New Zealand; and
(c) the regulated person has provided the client the documents
and information required to accompany that offer by either:
(i) the Securities Act 1978 of New Zealand (in accordance
with Schedule 4 to the Financial Markets Conduct Act
2013 of New Zealand) and the Securities
Regulations 2009 of New Zealand; or
(ii) the Financial Markets Conduct Act 2013 of New
Zealand and the Financial Markets Conduct
Regulations 2014 of New Zealand; and
(d) the regulated person has provided the client any warning
statement or details prescribed under section 1200E in
relation to the offer.
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modification of Part 7.9 of the Act—New Zealand offer documents replace Product
Disclosure Statements where an offer relates to interests in a New Zealand managed
investment scheme Part 18
Corporations Regulations 2001 141
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(9F) For paragraph (9E)(c), section 1015C applies to the providing of
documents and information, as if the documents and information
were a Statement.
(9G) For paragraph (9E)(d), section 1015C applies to the providing of
warning statement or details prescribed under section 1200E, as if
the warning statement or details were a Statement.
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 19 Modifications for carbon units, Australian carbon credit units and eligible
international emissions units
142 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 19—Modifications for carbon units,
Australian carbon credit units and eligible
international emissions units
19.1 Subsections 1012D(1) to (3), including the subheadings
substitute
Recommendation, issue or sale situation for carbon unit—
statements on Clean Energy Regulator’s website
(1) Subject to subsections (2) and (3), in a recommendation situation,
issue situation or sale situation for a carbon unit, the regulated
person:
(a) does not have to give the client a Product Disclosure
Statement; and
(b) must inform the client that the client should consider each
statement about the carbon unit that is mentioned in
section 202 of the Clean Energy Act 2011.
Recommendation, issue or sale situation for carbon unit—client
has considered statements on Clean Energy Regulator’s website
(2) In a recommendation situation, issue situation or sale situation for
a carbon unit, the regulated person does not have to inform the
client as described in paragraph (1)(b) if the regulated person
believes, on reasonable grounds, that the client has already
considered each statement about the carbon unit that is published
on the website of the Clean Energy Regulator as mentioned in
section 202 of the Clean Energy Act 2011.
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications for carbon units, Australian carbon credit units and eligible international
emissions units Part 19
Corporations Regulations 2001 143
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Recommendation, issue or sale situation for carbon unit—specified
persons
(3) In a recommendation situation, issue situation or sale situation for
a carbon unit, the regulated person does not have to inform the
client as described in paragraph (1)(b) if the person is:
(a) the Clean Energy Regulator; or
(b) the Clean Development Mechanism Executive Board; or
(c) the government of a country other than Australia; or
(d) an authority acting on behalf of the government of a country
other than Australia.
Recommendation, issue or sale situation for Australian carbon
credit unit—statements on Clean Energy Regulator’s website
(3A) Subject to subsections (3B) and (3C), in a recommendation
situation, issue situation or sale situation for an Australian carbon
credit unit, the regulated person:
(a) does not have to give the client a Product Disclosure
Statement; and
(b) must inform the client that the client should consider each
statement about the Australian carbon credit unit that is
mentioned in section 162 of the Carbon Credits (Carbon
Farming Initiative) Act 2011.
Recommendation, issue or sale situation for Australian carbon
credit unit—client has considered statements on Clean Energy
Regulator’s website
(3B) In a recommendation situation, issue situation or sale situation for
an Australian carbon credit unit, the regulated person does not have
to inform the client as described in paragraph (3A)(b) if the
regulated person believes, on reasonable grounds, that the client
has already considered each statement about the Australian carbon
credit unit that is published on the website of the Clean Energy
Regulator as mentioned in section 162 of the Carbon Credits
(Carbon Farming Initiative) Act 2011.
Federal Register of Legislative Instruments F2015C00303
Schedule 10A Modifications of Part 7.9 of the Act
Part 19 Modifications for carbon units, Australian carbon credit units and eligible
international emissions units
144 Corporations Regulations 2001
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Recommendation, issue or sale situation for Australian carbon
credit unit—specified persons
(3C) In a recommendation situation, issue situation or sale situation for
an Australian carbon credit unit, the regulated person does not have
to inform the client as described in paragraph (3A)(b) if the person
is:
(a) the Clean Energy Regulator; or
(b) the Clean Development Mechanism Executive Board; or
(c) the government of a country other than Australia; or
(d) an authority acting on behalf of the government of a country
other than Australia.
Recommendation, issue or sale situation for eligible international
emissions unit—statements on Clean Energy Regulator’s website
(3D) Subject to subsections (3E) and (3F), in a recommendation
situation, issue situation or sale situation for an eligible
international emissions unit, the regulated person:
(a) does not have to give the client a Product Disclosure
Statement; and
(b) must inform the client that the client should consider each
statement about the eligible international emissions unit that
is mentioned in section 61 of the Australian National
Registry of Emissions Units Act 2011.
Recommendation, issue or sale situation for eligible international
emissions unit—client has considered statements on Clean Energy
Regulator’s website
(3E) In a recommendation situation, issue situation or sale situation for
an eligible international emissions unit, the regulated person does
not have to inform the client as described in paragraph (3D)(b) if
the regulated person believes, on reasonable grounds, that the
client has already considered each statement about the eligible
international emissions unit that is published on the website of the
Federal Register of Legislative Instruments F2015C00303
Modifications of Part 7.9 of the Act Schedule 10A
Modifications for carbon units, Australian carbon credit units and eligible international
emissions units Part 19
Corporations Regulations 2001 145
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Clean Energy Regulator as mentioned in section 61 of the
Australian National Registry of Emissions Units Act 2011.
Recommendation, issue or sale situation for eligible international
emissions unit—specified persons
(3F) In a recommendation situation, issue situation or sale situation for
an eligible international emissions unit, the regulated person does
not have to inform the client as described in paragraph (3D)(b) if
the person is:
(a) the Clean Energy Regulator; or
(b) the Clean Development Mechanism Executive Board; or
(c) the government of a country other than Australia; or
(d) an authority acting on behalf of the government of a country
other than Australia.
19.2 Subsection 1012D(5)
omit
give the client a Product Disclosure Statement
insert
inform the client as described in paragraph (1)(b), (3A)(b) or (3D)(b)
19.3 Subsection 1012D(6)
omit
give the client a Product Disclosure Statement
insert
inform the client as described in paragraph (1)(b), (3A)(b) or (3D)(b)
19.4 Subsections 1012D(7) to (10), including the subheading
omit
19.5 Subsection 1012IA(1), definition of regulated acquisition
substitute
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Part 19 Modifications for carbon units, Australian carbon credit units and eligible
international emissions units
146 Corporations Regulations 2001
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regulated acquisition means an acquisition of a financial product
pursuant to an instruction by the client under a custodial
arrangement, being an acquisition:
(a) by way of issue by the issuer (the regulated person); or
(b) pursuant to a sale by a person (the regulated person) in
circumstances:
(i) described in subsection 1012C (5) or (8); or
(ii) to which subsection 1012B (3), 1012C (3) or 1012C (6)
would apply if those subsections were applicable in
relation to a carbon unit, an Australian carbon credit
unit or an eligible international emissions unit.
19.6 Subsection 1012IA(2), subheading
substitute
Obligation on provider to inform client about statements on Clean
Energy Regulator’s website
19.7 Subsection 1012IA(2)
omit
must give the client a Product Disclosure Statement for the product if a
Product Disclosure Statement for the product would
insert
must inform the client that the client should consider each statement
about the carbon unit that is published on the website of the Clean
Energy Regulator as mentioned in section 202 of the Clean Energy Act
2011, or each statement about the Australian carbon credit unit that is
published on the website of the Clean Energy Regulator as mentioned in
section 162 of the Carbon Credits (Carbon Farming Initiative) Act
2011, or each statement about the eligible international emissions unit
that is published on the website of the Clean Energy Regulator as
mentioned in section 61 of the Australian National Registry of
Emissions Units Act 2011, if the statement would
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19.8 Subsection 1012IA(3), subheading
substitute
Determining whether client should be informed about statements
on Clean Energy Regulator’s website for an equivalent direct
acquisition
19.9 Subsection 1012IA(3)
omit
give the client a Product Disclosure Statement for the financial product
insert
inform the client that the client should consider each statement about
the carbon unit that is published on the website of the Clean Energy
Regulator as mentioned in section 202 of the Clean Energy Act 2011, or
each statement about the Australian carbon credit unit that is published
on the website of the Clean Energy Regulator as mentioned in
section 162 of the Carbon Credits (Carbon Farming Initiative) Act
2011, or each statement about the eligible international emissions unit
that is published on the website of the Clean Energy Regulator as
mentioned in section 61 of the Australian National Registry of
Emissions Units Act 2011
19.10 Paragraph 1017E(1)(b)
substitute
(b) a seller (the product provider) of a carbon unit in relation to
which the seller has informed the client that the client should
consider each statement about the carbon unit that is
published on the website of the Clean Energy Regulator as
mentioned in section 202 of the Clean Energy Act 2011; or
(ba) a seller (the product provider) of an Australian carbon credit
unit in relation to which the seller has informed the client that
the client should consider each statement about the
Australian carbon credit unit that is published on the website
of the Clean Energy Regulator as mentioned in section 162 of
the Carbon Credits (Carbon Farming Initiative) Act 2011; or
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(bb) a seller (the product provider) of an eligible international
emissions unit in relation to which the seller has informed the
client that the client should consider each statement about the
eligible international emissions unit that is published on the
website of the Clean Energy Regulator as mentioned in
section 61 of the Australian National Registry of Emissions
Units Act 2011;
19.11 Subsection 1017G(1)
substitute
(1) This section does not apply to:
(a) the Regulator; or
(b) the CDM Executive Board; or
(c) the government of a country other than Australia; or
(d) an authority acting on behalf of the government of a country
other than Australia.
(1A) If:
(a) carbon units are, or have been, available for acquisition
(whether by issue or sale) by a person or persons as retail
clients; and
(b) the issue or sale of the carbon units is not covered by an
Australian financial services licence;
the issuer and any regulated person who is required, under
subsection 1012D (1), to inform a client that the client should
consider each statement about the carbon unit that is published on
the website of the Clean Energy Regulator as mentioned in
section 202 of the Clean Energy Act 2011, must both have a
dispute resolution system complying with subsection (2).
Note 1: If the issue of the carbon units is covered by an Australian financial
services licence, the requirement to have a dispute resolution system
relating to the issue of the units is imposed by paragraph 912A(1)(g).
Note 2: Failure to comply with this subsection is an offence (see
subsection 1311(1)).
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(1B) If:
(a) Australian carbon credit units are, or have been, available for
acquisition (whether by issue or sale) by a person or persons
as retail clients; and
(b) the issue or sale of the Australian carbon credit units is not
covered by an Australian financial services licence;
the issuer and any regulated person who is required, under
subsection 1012D(3A), to inform a client that the client should
consider each statement about the Australian carbon credit unit that
is published on the website of the Clean Energy Regulator as
mentioned in section 162 of the Carbon Credits (Carbon Farming
Initiative) Act 2011, must both have a dispute resolution system
complying with subsection (2).
Note 1: If the issue of the Australian carbon credit units is covered by an
Australian financial services licence, the requirement to have a dispute
resolution system relating to the issue of the units is imposed by
paragraph 912A(1)(g).
Note 2: Failure to comply with this subsection is an offence (see
subsection 1311(1)).
(1C) If:
(a) eligible international emissions units are, or have been,
available for acquisition (whether by issue or sale) by a
person or persons as retail clients; and
(b) the issue or sale of the eligible international emissions units
is not covered by an Australian financial services licence;
the issuer and any regulated person who is required, under
subsection 1012D(3D), to inform a client that the client should
consider each statement about the eligible international emissions
unit that is published on the website of the Clean Energy Regulator
as mentioned in section 61 of the Australian National Registry of
Emissions Units Act 2011, must both have a dispute resolution
system complying with subsection (2).
Note 1: If the issue of the eligible international emissions units is covered by
an Australian financial services licence, the requirement to have a
dispute resolution system relating to the issue of the units is imposed
by paragraph 912A(1)(g).
Federal Register of Legislative Instruments F2015C00303
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Part 19 Modifications for carbon units, Australian carbon credit units and eligible
international emissions units
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Note 2: Failure to comply with this subsection is an offence (see
subsection 1311(1)).
19.12 Section 1018A, heading
substitute
1018A Advertising or other promotional material for financial
product must refer to statements on Clean Energy
Regulator’s website
19.13 Subsection 1018A(1), subheading
substitute
Advertisements and promotional material must identify issuer (or
issuer and seller) and refer to statements on Clean Energy
Regulator’s website
19.14 Subsection 1018A(1)
omit
if a particular financial product is available for acquisition by persons as
retail clients (whether or not it is also available for acquisition by
persons as wholesale clients) by way of issue, or pursuant to sale offers
to which section 1012C applies or will apply,
insert
in an issue situation or sale situation for a carbon unit, an Australian
carbon credit unit or an eligible international emissions unit that is
available for acquisition by persons as retail clients (whether or not it is
also available for acquisition by persons as wholesale clients),
19.15 Subparagraph 1018A(1)(c)(ii)
omit
to which section 1012C applies or will apply
insert
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to which paragraphs 1012C(3)(b) and (4)(c), and subsection 1012C(6),
would apply if section 1012C were applicable in relation to a carbon
unit, an Australian carbon credit unit or an eligible international
emissions unit
19.16 Paragraphs 1018A(1)(d) and (e)
substitute
(d) informs the person that the person should consider:
(i) each statement about the carbon unit that is published
on the website of the Clean Energy Regulator as
mentioned in section 202 of the Clean Energy Act 2011
in deciding whether to acquire, or to continue to hold,
the carbon unit; or
(ii) each statement about the Australian carbon credit unit
that is published on the website of the Clean Energy
Regulator as mentioned in section 162 of the Carbon
Credits (Carbon Farming Initiative) Act 2011 in
deciding whether to acquire, or to continue to hold, the
Australian carbon credit unit; or
(iii) each statement about the eligible international emissions
unit that is published on the website of the Clean Energy
Regulator as mentioned in section 61 of the Australian
National Registry of Emissions Units Act 2011 in
deciding whether to acquire, or to continue to hold, the
eligible international emissions unit.
19.17 Subsection 1018A(2)
omit
if a particular financial product, or proposed financial product, is not
available for acquisition by persons as retail clients but it is reasonably
likely that the product will become so available (whether or not it is, or
will also become, available for acquisition by persons as wholesale
clients) by way of issue, or pursuant to sale offers to which
section 1012C will apply,
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Schedule 10A Modifications of Part 7.9 of the Act
Part 19 Modifications for carbon units, Australian carbon credit units and eligible
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Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
insert
in an issue situation or sale situation for a financial product that is a
carbon unit, an Australian carbon credit unit or an eligible international
emissions unit and is not available for acquisition by persons as retail
clients, but is reasonably likely to become so available (whether or not
it is, or will also become, available for acquisition by persons as
wholesale clients),
19.18 Subparagraph 1018A(2)(c)(ii)
omit
to which section 1012C will apply
insert
to which paragraphs 1012C(3)(b) and (4)(c), and subsection 1012C(6),
would apply if section 1012C were applicable in relation to a carbon
unit, an Australian carbon credit unit or an eligible international
emissions unit
19.19 Paragraphs 1018A(2)(d) to (f)
substitute
(d) informs the person that:
(i) a statement about the carbon unit is published on the
website of the Clean Energy Regulator as mentioned in
section 202 of the Clean Energy Act 2011; or
(ii) a statement about the Australian carbon credit unit is
published on the website of the Clean Energy Regulator
as mentioned in section 162 of the Carbon Credits
(Carbon Farming Initiative) Act 2011; or
(iii) a statement about the eligible international emissions
unit is published on the website of the Clean Energy
Regulator as mentioned in section 61 of the Australian
National Registry of Emissions Units Act 2011; and
(e) informs the person that the person should consider each
statement about the carbon unit, Australian carbon credit unit
or eligible international emissions unit that is published on
that website in deciding whether to acquire, or to continue to
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emissions units Part 19
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hold, the carbon unit, Australian carbon credit unit or eligible
international emissions unit.
19.20 Subsection 1018A(3)
omit
distribute a Product Disclosure Statement
insert
inform a person that the person should consider each statement about
the carbon unit, Australian carbon credit unit or eligible international
emissions unit that is published on the website of the Clean Energy
Regulator as mentioned in section 202 of the Clean Energy Act 2011,
section 162 of the Carbon Credits (Carbon Farming Initiative) Act
2011 or section 61 of the Australian National Registry of Emissions
Units Act 2011
19.21 Subparagraph 1018A(4)(c)(i)
substitute
(i) does not contain information that materially affects
affairs of the issuer, other than information about the
carbon unit, Australian carbon credit unit or eligible
international emissions unit that is published:
(A) on the website of the Clean Energy Regulator as
mentioned in section 202 of the Clean Energy
Act 2011, section 162 of the Carbon Credits
(Carbon Farming Initiative) Act 2011 or
section 61 of the Australian National Registry of
Emissions Units Act 2011; or
(B) in a disclosure document that has been lodged
with ASIC; or
(C) in an annual report or in a notice or report
referred to in paragraph (a) or (b); and
19.22 Subparagraphs 1018A(4)(d)(i) and (ii)
substitute
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Schedule 10A Modifications of Part 7.9 of the Act
Part 19 Modifications for carbon units, Australian carbon credit units and eligible
international emissions units
154 Corporations Regulations 2001
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(i) information about the carbon unit, Australian carbon
credit unit or eligible international emissions unit that is
published:
(A) on the website of the Clean Energy Regulator as
mentioned in section 202 of the Clean Energy
Act 2011, section 162 of the Carbon Credits
(Carbon Farming Initiative) Act 2011 or
section 61 of the Australian National Registry of
Emissions Units Act 2011; or
(B) in a disclosure document that has been lodged
with ASIC; or
19.23 Paragraph 1020D(b)
substitute
(b) if the acquisition occurs in circumstances in which the party
is required by a provision of this Part to have been informed
that the party should consider each statement about the
carbon unit, Australian carbon credit unit or eligible
international emissions unit that is published on the website
of the Clean Energy Regulator as mentioned in section 202 of
the Clean Energy Act 2011, section 162 of the Carbon
Credits (Carbon Farming Initiative) Act 2011 or section 61
of the Australian National Registry of Emissions Units Act
2011—taken to have notice of any contract, document or
matter not specifically referred to in those statements.
19.24 Paragraph 1020E(7)(b)
omit
the document, advertisement or statement
insert
the statement or advertisement
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emissions units Part 19
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19.25 Section 1021C, heading
substitute
1021C Offence of failing to refer to statements on Clean Energy
Regulator’s website
19.26 Subparagraph 1021C(1)(a)(i)
substitute
(i) is required by a provision of this Part to inform a person
that the person should consider each statement about a
carbon unit, an Australian carbon credit unit or an
eligible international emissions unit that is published on
the website of the Clean Energy Regulator as mentioned
in section 202 of the Clean Energy Act 2011,
section 162 of the Carbon Credits (Carbon Farming
Initiative) Act 2011 or section 61 of the Australian
National Registry of Emissions Units Act 2011 (the
required statement); or
19.27 Subparagraph 1021C(1)(b)(i)
substitute
(i) if subparagraph (a)(i) applies—inform the person that
the person should consider each required statement; or
19.28 Subparagraph 1021C(3)(a)(i)
substitute
(i) is required by a provision of this Part to inform a person
that the person should consider each statement about a
carbon unit, an Australian carbon credit unit or an
eligible international emissions unit that is published on
the website of the Clean Energy Regulator as mentioned
in section 202 of the Clean Energy Act 2011,
section 162 of the Carbon Credits (Carbon Farming
Initiative) Act 2011 or section 61 of the Australian
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Schedule 10A Modifications of Part 7.9 of the Act
Part 19 Modifications for carbon units, Australian carbon credit units and eligible
international emissions units
156 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
National Registry of Emissions Units Act 2011 (the
required statement); or
19.29 Subparagraph 1021C(3)(b)(i)
substitute
(i) if subparagraph (a)(i) applies—inform the person that
the person should consider each required statement; or
19.30 Paragraph 1021C(4)(b)
substitute
(b) the representative’s failure to inform the person that the
person should consider each required statement occurred
because the representative was acting in reliance on that
information or those instructions; and
19.31 Section 1021G
omit
to give or communicate disclosure documents or statements as and
when required by this Part.
insert
to inform a person that the person should consider each statement about
a carbon unit, an Australian carbon credit unit or an eligible
international emissions unit that is published on the website of the
Clean Energy Regulator as mentioned in section 202 of the Clean
Energy Act 2011, section 162 of the Carbon Credits (Carbon Farming
Initiative) Act 2011 or section 61 of the Australian National Registry of
Emissions Units Act 2011 as and when required by this Part.
19.32 After paragraph 1022B(1)(ac)
insert
(ad) a person:
(i) is required to inform another person (the client) that the
client should consider each statement about a carbon
unit that is published on the website of the Clean Energy
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Regulator as mentioned in section 202 of the Clean
Energy Act 2011; and
(ii) does not inform the client by the time the person is
required to do so; or
(ae) a person:
(i) is required to inform another person (the client) that the
client should consider each statement about an
Australian carbon credit unit that is published on the
website of the Clean Energy Regulator as mentioned in
section 162 of the Carbon Credits (Carbon Farming
Initiative) Act 2011; and
(ii) does not inform the client by the time the person is
required to do so; or
(af) a person:
(i) is required to inform another person (the client) that the
client should consider each statement about an eligible
international emissions unit that is published on the
website of the Clean Energy Regulator as mentioned in
section 61 of the Australian National Registry of
Emissions Units Act 2011; and
(ii) does not inform the client by the time the person is
required to do so; or
Federal Register of Legislative Instruments F2015C00303
Schedule 10AA Modifications of the Act in relation to their application in respect of a
recognised offer or a proposed offer of securities that may become a recognised offer
Part 1 Modification of Part 6D.2 of the Act—disclosure to investors not required for
recognised offer under Chapter 8
158 Corporations Regulations 2001
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Schedule 10AA—Modifications of the Act in
relation to their application in respect
of a recognised offer or a proposed
offer of securities that may become a
recognised offer (regulation 8.4.02)
Part 1—Modification of Part 6D.2 of the Act—
disclosure to investors not required for
recognised offer under Chapter 8
1.1 After subsection 707(3)
insert
(3A) Subsection (3) does not apply to an offer of a body’s securities for
sale if the body issued the securities as part of a recognised offer
under Chapter 8.
(3B) Subsection (3) does not apply to an offer of a body’s securities for
sale if:
(a) the securities were issued by reason of the exercise of options
or the conversion of convertible or converting securities; and
(b) the options or other convertible or converting securities were
issued as part of a recognised offer under Chapter 8; and
(c) the exercise of the option, or the conversion of the security,
did not involve any further offer.
1.2 After subsection 707(5)
insert
Federal Register of Legislative Instruments F2015C00303
Modifications of the Act in relation to their application in respect of a recognised offer
or a proposed offer of securities that may become a recognised offer Schedule 10AA
Modification of Part 6D.2 of the Act—disclosure to investors not required for
recognised offer under Chapter 8 Part 1
Corporations Regulations 2001 159
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(5A) Subsection (5) does not apply to an offer of a body’s securities for
sale if the controller sold the securities as part of a recognised offer
under Chapter 8.
Federal Register of Legislative Instruments F2015C00303
Schedule 10AA Modifications of the Act in relation to their application in respect of a
recognised offer or a proposed offer of securities that may become a recognised offer
Part 2 Modification of Part 7.9 of the Act—disclosure to investors not required for
recognised offer under Chapter 8
160 Corporations Regulations 2001
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Part 2—Modification of Part 7.9 of the Act—
disclosure to investors not required for
recognised offer under Chapter 8
2.1 After subsection 1012C(6)
insert
(6A) Subsection (6) does not apply to an offer of a financial product for
sale if the issuer issued the financial product as part of a recognised
offer under Chapter 8.
(6B) Subsection (6) does not apply to an offer of a financial product for
sale if:
(a) the financial product was issued by reason of the exercise of
an option or the conversion of another convertible or
converting security; and
(b) the option or convertible or converting security was issued as
part of a recognised offer under Chapter 8; and
(c) the exercise of the option, or the conversion of the security,
did not involve a further offer.
2.2 After subsection 1012C(8)
insert
(8A) Subsection (8) does not apply to the offer of a financial product for
sale if the controller sold the financial product as part of a
recognised offer under Chapter 8.
2.3 After subsection 1012IA(3)
insert
(3A) In determining whether this section requires a provider to give a
client a Product Disclosure Statement, Chapter 8 is to be
disregarded.
Federal Register of Legislative Instruments F2015C00303
Modifications of the Act in relation to their application in respect of a recognised offer
or a proposed offer of securities that may become a recognised offer Schedule 10AA
Modification of Part 7.9 of the Act—disclosure to investors not required for recognised
offer under Chapter 8 Part 2
Corporations Regulations 2001 161
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(3B) A provider is not required to give a client a Product Disclosure
Statement for a financial product if:
(a) the provider reasonably believes there is a recognised offer
under Chapter 8 in relation to the financial product; and
(b) the financial product is an interest in a managed investment
scheme governed by the laws of New Zealand; and
(c) the provider has provided the client the documents and
information required to accompany that offer by either:
(i) the Securities Act 1978 of New Zealand (in accordance
with Schedule 4 to the Financial Markets Conduct Act
2013 of New Zealand) and the Securities
Regulations 2009 of New Zealand; or
(ii) the Financial Markets Conduct Act 2013 of New
Zealand and the Financial Markets Conduct
Regulations 2014 of New Zealand; and
(d) the provider has provided the client any warning statement or
details prescribed under section 1200E in relation to the
offer.
(3C) For paragraph (3B)(c), section 1015C applies to the providing of
documents and information, as if the documents and information
were a Statement.
(3D) For paragraph (3B)(d), section 1015C applies to the providing of
warning statement or details prescribed under section 1200E, as if
the warning statement or details were a Statement.
Note: Subsection 1012D(9E) of the Act is a modification of the Act that
relates to Chapter 8 of the Act. The modification applies by force of:
(a) regulation 8.4.01 of the Corporations Regulations 2001; and
(b) item 18.1 of Part 18 of Schedule 10A to those Regulations.
Federal Register of Legislative Instruments F2015C00303
Schedule 10B Form and content of Product Disclosure Statement for FHSA product
Part 1 Form and content of Product Disclosure Statement—general
162 Corporations Regulations 2001
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Schedule 10B—Form and content of Product
Disclosure Statement for FHSA
product (regulation 7.9.10E)
Part 1—Form and content of Product Disclosure
Statement—general
1 Length and font size for Product Disclosure Statement
(1) The length of a Product Disclosure Statement (including any title
page, contents, glossary, index and other information not required
by these Regulations) for an FHSA product must not exceed:
(a) if it is printed on A4 pages—4 pages; or
(b) if it is printed on A5 pages—8 pages; or
(c) if it is printed on DL pages—12 pages; or
(d) otherwise—if the Statement was formatted to be printed on
A4 pages, 4 A4 pages.
(2) The minimum font size for text in the Statement is:
(a) for the name, address, ABN, ACN and AFSL of the person
giving the Statement—8 points; and
(b) for all other text—9 points.
Note 1: The Product Disclosure Statement must be worded and presented in a
clear, concise and effective manner—see subsection 1013C(3) of the
Act.
Note 2: A person required to give a Product Disclosure Statement to a
vision-impaired person must comply with its obligations under the
Disability Discrimination Act 1992.
(3) However, if the person who must be given the Statement requests
or is entitled to expect that the Statement be given to him or her in
a particular format, the Statement given to the person is taken to
comply with subitem (1) if it would comply with that subitem in
Federal Register of Legislative Instruments F2015C00303
Form and content of Product Disclosure Statement for FHSA product Schedule 10B
Form and content of Product Disclosure Statement—general Part 1
Corporations Regulations 2001 163
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the format that the provider would have given but for the request or
expectation.
Example: A vision-impaired person may request the Statement with a larger font
size, and the Statement, when printed with that font size, exceeds 4 A4
pages in length.
2 Sections in a Product Disclosure Statement
(1) The Product Disclosure Statement must contain the following
sections, which must be numbered and titled as follows:
1. Who can have a First Home Saver Account
2. How the First Home Saver Account works
3. How the Government helps you save
4. [no prescribed title]
5. What happens if your situation changes
6. Using your savings for your first home
7. The fees and costs [or “The fees” if there are no costs]
8. How to open an account
9. [no prescribed title]
(2) The Product Disclosure Statement may contain other sections (for
example, a table of contents, glossary, index, or information about
the product issuer).
3 Product Disclosure Statement must be self-contained
The sections of the Product Disclosure Statement mentioned in
subitem 2(1) must contain, in summary form, all information that a
person would reasonably require for the purpose of making a
decision whether to acquire the FHSA product.
Federal Register of Legislative Instruments F2015C00303
Schedule 10B Form and content of Product Disclosure Statement for FHSA product
Part 1 Form and content of Product Disclosure Statement—general
164 Corporations Regulations 2001
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4 Contents of section 1 (Who can have a First Home Saver Account)
(1) Section 1 of the Product Disclosure Statement must contain the
following text:
You should consider opening a First Home Saver Account if you:
only want to use your savings to buy or build your first home
in Australia to live in (‘buy your first home’); and
are able to save at least $1,000 a year ($20 a week) in 4
separate financial years – they do not need to be in a row.
A financial year is from July 1 to June 30.
To open an account, you must:
be aged 18 or over and under 65
have a tax file number
have never owned a home in Australia that you have lived in;
and
have never opened a First Home Saver Account before.
You can open another First Home Saver Account if you are
transferring your savings from one First Home Saver Account to
another—see section 8.
If you are saving with others, each person must open their own
individual First Home Saver Account. Each of you can then
receive the benefits of having a First Home Saver Account.
You cannot open a joint account with someone else.
If you are unsure about your eligibility go to www.ato.gov.au
(2) If section 1 of the Statement contains other text, the other text must
come after, and be no more prominent than, the text mentioned in
subitem (1).
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Form and content of Product Disclosure Statement—general Part 1
Corporations Regulations 2001 165
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5 Contents of section 2 (How the First Home Saver Account works)
(1) Section 2 of the Product Disclosure Statement must contain the
following text:
How you can use the savings in a First Home Saver Account
You can only withdraw your savings for 4 purposes:
1. to buy your first home
2. as money you can add into your super
3. as money you can withdraw as a lump sum if you are aged 60
or over
4. as money you can pay into a genuine mortgage.
How to save with a First Home Saver Account
You put money into your [account/fund] the same way as
you would [make deposits/make contributions/put money]
into a normal [bank account/credit union account/building
society account/other account/managed fund]. You can do
this at any time, and for as long as you need to save.
You cannot salary sacrifice into your account.
You do not need to put money in every year – but your
account will only get Government contributions when you
do.
Once the total amount in your account reaches [account
balance cap] – including Government contributions and
income from investment earnings – you cannot put any more
money into your account.
You can keep your account open until:
(i) you buy your first home; or
(ii) you are eligible to pay the money into a genuine
mortgage; or
(iii) you turn 65.
When you turn 65 you must close your account and withdraw all of
your savings, or move it into super.
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(2) If section 2 of the Statement contains other text, the other text must
come after, and be no more prominent than, the text mentioned in
subitem (1).
6 Contents of section 3 (How the Government helps you save)
(1) Section 3 of the Product Disclosure Statement must contain the
following text:
The Government boosts your savings with contributions and a low
rate of tax on the income your investment earns.
When you put money into your account the Government puts
money in too.
When you put a dollar into your account, the Government
will contribute 17 cents.
Any money you put in up to a total of [Government FHSA
contribution threshold] in a financial year will get this
Government contribution – anything over this amount will
not.
For example, if you put [Government FHSA contribution
threshold] into your account in one financial year, the Government
will contribute [Government FHSA contribution for Government
FHSA contribution threshold] to your savings.
If you are saving with other people that have their own First Home
Saver Accounts, each person will receive Government
contributions on the money they put into their account.
Government contributions are paid directly into your First
Home Saver Account after you have lodged your tax return
and [name of FHSA provider] has told the Tax Office how
much you have put in.
You are not taxed
on the money you put into your account; or
on the Government contributions; or
when you withdraw your savings for your first home.
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There is a low rate of tax on [the interest your savings earn/your
investment earnings]
Earnings on First Home Saver Accounts are taxed at 15% but
this is paid to the Tax Office by the account provider.
(2) If section 3 of the Statement contains other text, the other text must
come after, and be no more prominent than, the text mentioned in
subitem (1).
7 Contents of section 4
Section heading
(1) The heading to section 4 of the Statement must be relevant to its
contents.
Financial details of product
(2) Section 4 of the Product Disclosure Statement must contain the
following information:
(a) if the product is an FHSA life policy or an FHSA trust—the
composition of the investments of the product (for example,
the percentage of cash, real property and shares in which
money in the product will be invested);
(b) the nature of the return that the investments may generate
(for example, fixed interest, variable interest, rental income
or capital gains);
(c) the current rate of return for the product after tax, or
information about how the rate is calculated or where the rate
can be found;
(d) if the balance of the product can decrease:
(i) summary information about the reasons for that
decrease; and
(ii) a summary description of the likelihood of that decrease
(for example, that the product is ‘low risk’).
(3) However, if the product is a multiple investment option FHSA
product, the Statement must contain:
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(a) the number of investment options; and
(b) the name of each investment option, set out in order of lowest
risk to highest risk, and identification of the default
investment option; and
(c) the information mentioned in subitem (2) for the default
investment option; and
(d) either:
(i) the information mentioned in subitem (2) for each other
investment option; or
(ii) details of where the information referred to in
subparagraph (i) can be found.
(4) The rate of return for the FHSA product must be calculated after
applicable fees and taxes.
Worked example of balance changing over time
(5) A Product Disclosure Statement for an FHSA deposit account must
also contain:
(a) a worked example of how the balance of the account will
change over 4 financial years, with the balance at the end of
the period after fees and taxes rounded to the nearest multiple
of $1 000, using the following assumptions:
(i) the assumptions mentioned in paragraphs 16(5)(a), (c),
(d) and (f);
(ii) the holder of the product makes weekly contributions to
the product, each of $100;
(iii) the product earns a rate of return of 5% per year, after
fees and taxes; and
(b) a warning that the rate of return used for the example may
not be the same as the rate of return of the product.
(6) A Statement for an FHSA life policy or an FHSA trust may contain
a worked example of how the balance of the product will change
over 4 financial years, with the balance at the end of the period
after fees and taxes rounded to the nearest multiple of $1 000,
using the following assumptions:
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(a) the assumptions mentioned in paragraphs 16(5)(a), (c), (d)
and (f);
(b) the holder of the product makes weekly contributions to the
product, each of $100;
(c) the product either:
(i) has no earnings; or
(ii) earns a rate of return that is reasonable for the product,
after fees and taxes.
(7) A Statement that contains an example mentioned in subitem (6)
must also contain:
(a) if the example has no earnings—a statement that the balance
of the product may be increased or decreased by its earnings;
or
(b) if the example earns a rate of return—a warning that the rate
of return used for the example may not be the same as the
rate of return of the product.
8 Contents of section 5 (What happens if your situation changes)
Section 5 of the Product Disclosure Statement must contain
summary information about the effects on the product or the
interests of the holder of the product if the holder:
(a) ceases to meet the FHSA eligibility requirements; or
(b) fails to make a contribution to the product; or
(c) needs to take money out of the product to alleviate financial
hardship; or
(e) acquires a qualifying interest in a dwelling less than 4 years
after acquiring the product; or
(f) meets the minimum release conditions in relation to a
dwelling to which paragraph (e) applies; or
(g) ceases to be a resident of Australia.
9 Contents of section 6 (Using your savings for your first home)
(1) Section 6 of the Product Disclosure Statement must contain
summary information about:
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(a) what actions the holder of the product must take when the
holder:
(i) decides to acquire a qualifying interest in a dwelling
using the money in the product; or
(ii) meets the minimum release conditions in relation to a
dwelling to which subparagraph (i) applies; and
(b) what happens when the holder takes the actions mentioned in
paragraph (a).
(2) Section 6 must also contain a statement that the holder of the
product must live in the dwelling for at least 6 months that
commences within 12 months after its acquisition or completion of
its construction.
10 Contents of section 7 (The fees and costs)
(1) Section 7 of the Product Disclosure Statement must include:
(a) information on the fees and costs that an FHSA holder may
be charged on the FHSA product; and
(b) an example of the overall cost of the FHSA product; and
(c) if the Statement is for an FHSA life policy or an FHSA
trust—the consumer advisory;
as set out in Part 2.
(2) However, if the product is a multiple investment option FHSA
product, the Statement must contain:
(a) the information required by subitem (1) for the default
investment option; and
(b) if another investment option is detailed in the Statement—the
information required by subitem (1) for that investment
option; and
(c) either:
(i) the information required by subitem (1) for each other
investment option; or
(ii) details of where the information referred to in
subparagraph (i) can be found.
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(3) Also:
(a) if a fee or cost mentioned in Part 2 is not charged, the
Statement does not need to include information relating to
the fee or cost; and
(b) if no fees or no costs are charged at all, the Statement must
state that.
11 Contents of section 8 (How to open an account)
Section 8 of the Product Disclosure Statement must contain:
(a) information about how to acquire the product; and
(b) information about the effect and length of the cooling-off
period; and
(c) a statement that money from the product can be transferred to
another FHSA product.
12 Contents of section 9
Section heading
(1) The heading to section 9 of the Product Disclosure Statement must
be relevant to its contents.
Information
(2) Section 9 of the Product Disclosure Statement must contain the
following information:
(a) the name and address of the FHSA provider;
(b) the address of the Internet page, and a phone number,
operated by or for the provider from which a person can
obtain further information about the product;
(c) the dispute resolution system that covers complaints by
holders of the product, and how that system may be accessed.
(3) Section 9 of the Product Disclosure Statement must contain a
statement that:
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(i) the account-holder may be entitled to payment under the
financial claims scheme; and
(ii) payments under the scheme are subject to a limit for each
depositor; and
(iii) information about the scheme can be obtained from the
APRA website at http://www.apra.gov.au and the APRA
hotline on 1300 13 10 60.
(4) Section 9 of the Product Disclosure Statement must also contain
the following text:
‘First Home Saver Account enquiries
Information about the First Home Saver Accounts work, eligibility,
fees and taxes, and links to savings calculators and other useful
online tools.
visit www.ato.gov.au’.
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Form and content of Product Disclosure Statement for FHSA product Schedule 10B
Information on fees and costs Part 2
Corporations Regulations 2001 173
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Part 2—Information on fees and costs
13 Definitions
(1) In this Part:
ADI (short for authorised deposit-taking institution) means a body
corporate that is an ADI for the purposes of the Banking Act 1959.
small unusual cost means a fee or cost charged on an FHSA
product that:
(a) does not relate to the ordinary acquisition, operation or
closure of the product; and
(b) is less than $10.
Examples for paragraph (a): A fee for a duplicate statement, or a
dishonoured cheque fee.
(2) If a term used in this Part is defined in Part 1 of Schedule 10, it has
the same meaning in this Part as it has in Schedule 10.
14 Presentation of information on fees and costs
Terminology
(1) If this Part requires that information about a fee or cost be included
in a Product Disclosure Statement, the Statement must use the term
for that fee or cost that is used in this Part or Part 1 of Schedule 10.
Example: A fee which is an establishment fee as defined in item 101 of
Schedule 10 must be referred to in a Product Disclosure Statement as
an “establishment fee”.
(2) However, if the Statement is for an FHSA deposit account offered
or issued by an ADI, the Statement may use the term for a fee or
cost of that kind that is ordinarily used by the ADI for that kind of
account.
Example: A bank may call an establishment fee for its savings accounts an
‘account opening fee’.
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Manner in which fees and costs are to be expressed
(3) If this Part requires that an amount of a fee or a cost be included in
a Product Disclosure Statement, the amount must be expressed as:
(a) a dollar amount; or
(b) if the amount of the fee or cost is not fixed—a range of dollar
amounts; or
(c) if the amount of the fee or cost is a fixed percentage of the
balance of the account—that fixed percentage.
(4) However, if ASIC is satisfied that, for a compelling reason, it
would be unreasonable for a fee or cost to be expressed as required
by subitem (3), ASIC may determine, in writing, the manner in
which the fee or cost is to be expressed.
Negotiable fees and costs
(5) If a fee or cost is negotiable, the Statement must clearly indicate
that fact, and detail where information may be found about when
and how the fee or cost may be negotiated.
15 Information on fees and costs
(1) For each fee or cost charged on an FHSA product, other than a
small unusual cost, the Product Disclosure Statement must include
the information set out in subregulation (2).
(2) The fees and costs must be presented in the following order, and
include the following information:
(a) establishment fee—the amount of the fee;
(b) contribution fee—the amount of the fee;
(c) management costs:
(i) the services or functions to which the costs relate; and
(ii) the costs; and
(iii) the amount of the costs; and
(iv) if the amount of the costs is not fixed—how the amount
is calculated; and
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(v) if there is a minimum or maximum amount of the costs
in a given period of time—the amount and the period of
time;
(d) termination fee—the amount of the fee;
(e) buy-sell spread:
(i) a summary description of what the spread relates to; and
(ii) when the spread is charged; and
(iii) the amount of the spread and how it is calculated;
(f) service fees:
(i) a summary description of the services the fees relate to;
and
(ii) when the fees are charged; and
(iii) the amount of the fees; and
(iv) if the amount of the fees is not fixed—how the amount
is calculated; and
(v) if there is a minimum or maximum amount of the fees
in a given period of time—the amount and the period of
time.
Note: A fee or cost which is not charged does not need to be included in the
Statement—see subitem 10(3).
(3) The information mentioned in subitem (2) may be presented in
narrative form, in a table, or in any other form that enables it to be
easily understood and compared with similar information about
like products.
(4) The Statement must also detail where:
(a) further information about fees and costs; and
(b) information about small unusual costs;
may be obtained.
16 Example of overall cost
(1) The Product Disclosure Statement must include an example of the
fees and costs that may be charged on the FHSA product over the
life of the product (the product’s overall cost).
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Part 2 Information on fees and costs
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(2) For subitem (1), the overall cost of the FHSA product is the sum of
the following fees and costs applicable to the product, when those
fees and costs are worked out over the life of the product using the
FHSA assumptions:
(a) establishment fee;
(b) contribution fees;
(c) management costs that are deducted directly from the
account holder’s account;
(d) termination fee;
(e) buy-sell spread;
(f) service fees;
(g) indirect costs.
(3) For paragraph (2)(g), the indirect costs for an FHSA product are
the sum of the annual indirect costs for each of the 4 financial
years that the FHSA product exists under the FHSA assumptions.
(4) For subitem (3), the annual indirect costs for a year are worked out
as follows:
where:
ICR, for a fund, means the ratio of:
(a) the sum of:
(i) the fund’s management costs that are not deducted
directly from an account holder’s account; and
(ii) any other costs listed in paragraphs (2)(a) to (f) that are
not deducted directly from the account holder’s account;
to
(b) the fund’s total average net assets.
average balance is the average balance, when the FHSA
assumptions are applied, of the FHSA product during the year.
(5) For this item, the FHSA assumptions are the following
assumptions:
ICR average balance
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(a) the product commences on the first day of a financial year,
with a balance of $100;
(b) the holder of the product makes equal weekly contributions
to the product, amounting to $5 000 per financial year;
(c) the Commonwealth makes Government FHSA contributions
to the product:
(i) on 30 November after the end of each financial year,
other than the financial year in which the product is
closed; and
(ii) at the start of the day on which the product is closed;
(d) no money is withdrawn from the product (other than for
payment of fees and taxes) until it is closed;
(e) the product earns a rate of return of 5% per year after taxes,
but before fees and costs;
(f) the product is closed, and the balance is withdrawn
electronically by the holder for the acquisition of a qualifying
interest in a dwelling, at the end of the last day of the
financial year that is 3 financial years after the product
commenced.
(6) The example of overall cost must be in the following format, with
all fees and cost amounts rounded to the nearest multiple of $10:
Example of the fees and costs
If you put $20,000 into your account over 4 years, our fees and
other costs will total about [insert overall cost as a dollar amount].
The fees and costs in this example are made up of:
establishment fee: $[insert establishment fee amount in
dollars]
contribution fees: $[insert contribution fees amount in
dollars]
management costs: $[insert management costs amount in
dollars]
termination fee: $[insert termination fee amount in dollars]
other fees: $[insert sum of other fees and costs applicable to
the product in dollars]
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[For FHSA life policies and FHSA trusts, include the following:]
This is equal to [insert the equivalent percentage of the product’s
average annual balance that would generate that dollar amount,
rounded to one decimal place (“overall cost ratio”)] of the
account balance per year.
[For multiple investment option FHSA products, include the
following:]
These fees are based on [name of investment option to which
assumptions have been applied].
17 Consumer advisory
The Product Disclosure Statement for an FHSA life policy or an
FHSA trust must include the following statement:
Compare the fees and costs
Use the above example of [overall cost ratio] in fees and costs to
make a broad comparison with the fees and costs of other [insert
general description, e.g. bank account, life insurance policy,
investment-linked] First Home Saver Accounts.
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Form and content of Product Disclosure Statement—margin loan Schedule 10C
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Schedule 10C—Form and content of Product
Disclosure Statement—margin loan (regulation 7.9.11D)
1 Length and font size for Product Disclosure Statement for margin
loan
(1) The length of a Product Disclosure Statement for a margin loan
(not including any title page, table of contents or matter in writing
that is applied, adopted or incorporated by the Statement) must not
exceed:
(a) if it is printed on A4 pages—4 pages; or
(b) if it is printed on A5 pages—8 pages; or
(c) if it is printed on DL pages—12 pages; or
(d) otherwise—if it is formatted to be printed on A4 pages, 4 A4
pages.
(2) The minimum font size for text in the Statement is:
(a) for the name, address, ABN (if applicable), ACN (if
applicable) and AFSL (if applicable) of the person giving the
Statement—8 points; and
(b) for all other text—9 points.
Note 1: The Product Disclosure Statement must be worded and presented in a
clear, concise and effective manner—see subsection 1013C(3) of the
Act.
Note 2: A person required to a give a Product Disclosure Statement to a
vision-impaired person must comply with its obligations under the
Disability Discrimination Act 1992.
2 Minimum content of Product Disclosure Statement for margin
loan
(1) The Product Disclosure Statement must include the following
sections, which must be numbered and titled as follows:
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1. About [name of provider of the margin loan] and [name of
margin loan product]
2. Benefits of [name of margin loan product]
3. How [name of margin loan product] works
4. What is a margin call?
5. The risk of losing money
6. The costs
7. How to apply.
(2) The Product Disclosure Statement must include:
(a) a table of contents that sets out the titles mentioned in
subclause (1); and
(b) the telephone number of the provider of the margin loan to
enable a borrower for the margin loan to request a copy of
the following under regulation 7.9.11G:
(i) a copy of the Statement; and
(ii) a copy of a matter in writing that is applied, adopted or
incorporated by the Statement.
(3) The Product Disclosure Statement must:
(a) advise a person reading the Statement that:
(i) it is a summary of significant information and contains a
number of references to important information (each of
which forms part of the Statement); and
(ii) the person should consider that information before
making a decision about the product; and
(iii) the information provided in the Statement is general
information only and does not take account of the
person’s personal financial situation or needs; and
(iv) the person should obtain financial advice tailored to the
person’s personal circumstances; and
(b) display the advice:
(i) at or near the beginning of the document; and
(ii) in a prominent position and style.
(4) The Product Disclosure Statement:
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(a) may include additional sections after sections 1 to 7; and
(b) may include other information;
to an extent that does not have the effect of contravening
subclause 1(1).
(5) The Product Disclosure Statement does not need to indicate that a
particular requirement is not applicable to the margin loan.
Note: The Act, as modified in accordance with Subdivision 4.2A of
Division 4 of Part 7.9, requires information to be included in the
Product Disclosure Statement only to the extent to which the
requirement is applicable to the margin loan.
3 Contents of section 1 (About [name of provider of the margin loan]
and [name of margin loan product])
Section 1 of the Product Disclosure Statement must include:
(a) a short description of the margin loan provider and its
business; and
(b) a short summary of what margin lending is; and
(c) a statement setting out the possible consequences of
borrowing money to invest, including the effect of
magnifying both gains and losses; and
(d) a statement that the borrower for a margin loan should
regularly monitor the borrower’s portfolio so that:
(i) the borrower can be aware of changes (if any) to the
terms of the margin loan; and
(ii) the borrower can take timely action to prevent potential
losses in relation to the borrower’s portfolio; and
(e) a statement that the borrower for a margin loan may need, at
short notice, to pay an additional amount into the margin loan
or sell some of the investments for which the margin loan is
made; and
(f) a statement that the provider of a margin loan has the right in
certain circumstances to sell all, or part, of the borrower’s
portfolio and may not be required under the terms of the
margin loan to provide notice to the borrower of its intention
to sell; and
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Clause 4
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(g) a statement that if the value of the portfolio for a margin loan
does not cover the cost of repayments for the margin loan:
(i) the borrower for the margin loan may need to access
other funds to repay the margin loan; or
(ii) the provider of the margin loan may sell assets provided
as security for the margin loan, for example, the
borrower’s residential property; and
(h) a statement that the law requires the provider of a margin
loan to:
(i) assess whether the margin loan is unsuitable for the
potential borrower for the margin loan; and
(ii) if the potential borrower for the margin loan requests a
copy of the assessment—to provide a copy of the
assessment to the potential borrower for the margin
loan.
Note: The provider of a margin loan is not required to give the borrower or
potential borrower for the margin loan a copy of the assessment if the
margin loan is not issued.
4 Contents of section 2 (Benefits of [name of margin loan product])
(1) Section 2 of the Product Disclosure Statement for a margin loan
must include a description of the key benefits available to the
borrower or potential borrower for the margin loan.
(2) Section 2 of the Statement may include a description about other
benefits available to a borrower or potential borrower for the
margin loan other than the benefits mentioned in subclause (1).
(3) Section 2 of the Statement may provide for the description
mentioned in subclause (2) by applying, adopting or incorporating
a matter in writing.
5 Contents of section 3 (How [name of margin loan product] works)
(1) Section 3 of the Product Disclosure Statement for a margin loan
must include:
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(a) an explanation of how margin lending works including
information about the following:
(i) the maximum loan amount for the margin loan;
(ii) the loan-to-value ratios for the margin loan; and
(b) at least 1 example that illustrates the matters mentioned in
subparagraphs (a)(i) and (ii); and
(c) a description of the financial products that the borrower or
potential borrower for the margin loan can purchase with the
margin loan (including the Approved Securities List for the
provider or potential provider of the margin loan); and
(d) an explanation of who owns the investments purchased with
the margin loan; and
(e) a statement that:
(i) details of the rights and obligations of the borrower for a
margin loan are set out in the terms of the agreement for
the margin loan; and
(ii) recommends that a potential borrower for a margin loan
read the loan agreement; and
(iii) explains how a potential borrower can obtain a copy of
the loan agreement; and
(f) an explanation of any other features of the margin loan that:
(i) are not covered by the matters mentioned in
paragraphs (a), (c) and (d); and
(ii) are sufficiently important to be material to a reasonable
person’s decision to take out the margin loan; and
(g) a reference to:
(i) the calculator provided on a website operated by or on
behalf of the Commonwealth and an explanation of the
assistance the calculator can provide; or
(ii) if the provider or potential provider of the margin loan
provides a calculator to borrowers or potential
borrowers for the margin loan—that calculator and an
explanation of the assistance the calculator can provide.
(2) Section 3 of the Statement may provide for the following matters
by applying, adopting or incorporating the matter in writing:
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Schedule 10C Form and content of Product Disclosure Statement—margin loan
Clause 6
184 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the Approved Securities List;
(b) the explanation mentioned in paragraph (1)(f).
6 Contents of section 4 (What is a margin call?)
Section 4 of the Product Disclosure Statement for a margin loan
must include:
(a) if the terms of the margin loan include a margin call:
(i) an explanation of what a margin call is; and
(ii) an explanation of when there will be a margin call in
response to changes in the market; and
(iii) an explanation of when there will be a margin call at the
discretion of the provider of the margin loan; and
(iv) at least 1 example of how a margin call works,
including:
(A) the impact of breaching the loan-to-value
ratio (LVR) for the margin loan; and
(B) how to adjust the LVR back to the required
level for the margin loan; and
(C) how the buffer (if any) for the margin loan
operates; and
(v) a description of how a margin call can be dealt with by
the borrower for the margin loan; and
(vi) a statement that if there is a margin call, the provider of
the margin loan will notify the borrower for the margin
loan, or the borrower’s financial advisor, that the margin
call has occurred; and
(vii) a statement that the borrower for the margin loan must
be contactable at all times in case of a margin call; and
(b) if the terms of the margin loan do not include a margin call, a
statement to that effect.
7 Contents of section 5 (The risk of losing money)
(1) Section 5 of the Product Disclosure Statement for a margin loan
must include a description of the risks associated with margin
Federal Register of Legislative Instruments F2015C00303
Form and content of Product Disclosure Statement—margin loan Schedule 10C
Clause 7
Corporations Regulations 2001 185
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
lending to a borrower for the margin loan, including a description
of any of the following risks, if relevant:
(a) the risk that the value of the borrower’s investment may fall
and the possible consequences to the borrower if this occurs,
in particular the risk of a margin call occurring;
(b) the risk that the provider of the margin loan may change the
loan-to-value ratio of an investment at any time and the
consequences to the borrower of the change, in particular, the
risk of a margin call occurring;
(c) the risk that the provider of the margin loan may remove an
investment from the Approved Securities List and the
consequences for the borrower if this occurs, in particular,
the risk of a margin call occurring;
(d) the risk that the interest rate for the margin loan may rise and
the consequences for the borrower if this occurs, in
particular, the possibility that interest payments owed by the
borrower may exceed the returns available from the
borrower’s portfolio;
(e) the risk of the loss of property of the borrower if the property
has been mortgaged as security for, or in connection with, the
margin loan;
(f) the risk of a default event under the loan agreement occurring
and the potential consequences for the borrower if a default
event does occur;
(g) the risk that the taxation laws may change and that this may
have a negative effect on the tax position for the borrower for
the margin loan;
(h) any other significant risks that a reasonable person would
consider to be relevantly associated with the margin loan.
(2) Section 5 of the Statement must include a hyperlink to the page on
a website operated by or on behalf of the Commonwealth that
provides information about margin loans.
(3) Section 5 of the Statement may include information about risks
associated with margin lending other than the risks mentioned in
subclause (1).
Federal Register of Legislative Instruments F2015C00303
Schedule 10C Form and content of Product Disclosure Statement—margin loan
Clause 8
186 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) Section 5 of the Statement may provide for the information
mentioned in subclause (3) by applying, adopting or incorporating
a matter in writing.
8 Contents of section 6 (The costs)
(1) Section 6 of the Product Disclosure Statement for a margin loan
must include the following:
(a) a description of the interest rate for the margin loan,
including how the interest rate is calculated;
(b) a statement about whether a default interest rate will be
charged for the margin loan;
(c) details of any fee or cost to be charged by the provider of the
margin loan, unless the fee is a minor fee;
(d) a statement about whether a fee or cost to be charged by the
provider for the loan can be unilaterally changed by the
provider under the loan agreement;
(e) a list of matters for which the provider of the margin loan
will charge a minor fee for the margin loan;
(f) a statement about whether a commission or fee is payable to
a financial advisor or other third party for the margin loan
and, if a commission or fee is payable:
(i) the circumstances in which the commission or fee will
be payable; and
(ii) how the borrower for the margin loan can obtain more
detailed information about the commission or fee.
(2) Section 6 of the Statement must include:
(a) a statement of the interest rate for the margin loan; and
(b) details of any minor fee the provider of the margin loan will
charge for the margin loan.
(3) Section 6 of the Statement may provide for the statement
mentioned in paragraph (2)(a) or the details mentioned in
paragraph (2)(b) by applying, adopting or incorporating a matter in
writing
Federal Register of Legislative Instruments F2015C00303
Form and content of Product Disclosure Statement—margin loan Schedule 10C
Clause 9
Corporations Regulations 2001 187
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
9 Contents of section 7 (How to apply)
(1) Section 7 of the Product Disclosure Statement for a margin loan
must include:
(a) information about how to apply for the margin loan; and
(b) a short summary about the dispute resolution system the
provider of the margin loan has for dealing with disputes or
complaints about the loan, including:
(i) how a borrower for the loan may make a complaint
about the loan; and
(ii) contact details for making a complaint about the loan.
(2) The margin loan provider:
(a) may provide more detailed information about cooling-off
periods, complaints and dispute resolution; and
(b) may provide that information by applying, adopting or
incorporating a matter in writing.
Federal Register of Legislative Instruments F2015C00303
Schedule 10D Form and content of Product Disclosure Statement—superannuation
product to which Subdivision 4.2B of Division 4 of Part 7.9 applies
Clause 1
188 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 10D—Form and content of Product
Disclosure Statement—
superannuation product to which
Subdivision 4.2B of Division 4 of
Part 7.9 applies (regulation 7.9.11O)
1 Length and font size for Product Disclosure Statement for
superannuation product
(1) The length of a Product Disclosure Statement for a superannuation
product to which Subdivision 4.2B of Division 4 of Part 7.9 applies
(not including any matter in writing that is applied, adopted or
incorporated by the Statement) must not exceed:
(a) if it is printed on A4 pages—8 pages; or
(b) if it is printed on A5 pages—16 pages; or
(c) if it is printed on DL pages—24 pages; or
(d) otherwise—if it is formatted to be printed on A4 pages, 8 A4
pages.
(2) The minimum font size for text in the Statement is:
(a) for the name, address, ABN (if applicable), ACN (if
applicable) and AFSL (if applicable) of the person giving the
Statement—8 points; and
(b) for all other text—9 points.
Note 1: The Product Disclosure Statement must be worded and presented in a
clear, concise and effective manner—see subsection 1013C (3) of the
Act.
Note 2: A person required to a give a Product Disclosure Statement to a
vision-impaired person must comply with its obligations under the
Disability Discrimination Act 1992.
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Form and content of Product Disclosure Statement—superannuation product to which
Subdivision 4.2B of Division 4 of Part 7.9 applies Schedule 10D
Clause 2
Corporations Regulations 2001 189
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
2 Minimum content of Product Disclosure Statement for
superannuation product
(1) Subject to subclause 10(1), the Product Disclosure Statement must
include sections which must be numbered and titled as follows:
1. About [name of superannuation product]
2. How super works
3. Benefits of investing with [name of superannuation product]
4. Risks of super
5. How we invest your money
6. Fees and costs
7. How super is taxed
8. Insurance in your super
9. How to open an account.
(2) However, if the superannuation product does not offer insurance
cover:
(a) section 9 may be presented as section 8; and
(b) if section 9 is presented as section 8—a reference in
clause 11 to section 9 is taken to be a reference to section 8.
(3) The Product Disclosure Statement must include:
(a) a table of contents that sets out the titles mentioned in
subclause (1); and
(b) the telephone number of the superannuation trustee to enable
a person who acquires the superannuation product to request
a copy of the following under regulation 7.9.11R:
(i) a copy of the Statement; and
(ii) a copy of a matter in writing that is applied, adopted or
incorporated by the Statement.
(4) The Product Disclosure Statement must:
(a) advise a person reading the Statement that:
(i) it is a summary of significant information and contains a
number of references to important information (each of
which forms part of the Statement); and
Federal Register of Legislative Instruments F2015C00303
Schedule 10D Form and content of Product Disclosure Statement—superannuation
product to which Subdivision 4.2B of Division 4 of Part 7.9 applies
Clause 3
190 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) the person should consider that information before
making a decision about the product; and
(iii) the information provided in the Statement is general
information only and does not take account of the
person’s personal financial situation or needs; and
(iv) the person should obtain financial advice tailored to the
person’s personal circumstances; and
(b) display the advice:
(i) at or near the beginning of the document; and
(ii) in a prominent position and style.
(5) The Product Disclosure Statement:
(a) may include additional sections after sections 1 to 9; and
(b) may include other information;
to an extent that does not have the effect of contravening
subclause 1(1).
(6) The Product Disclosure Statement does not need to indicate that a
particular requirement is not applicable to the superannuation
product.
Note: The Act, as modified in accordance with Subdivision 4.2B of
Division 4 of Part 7.9, requires information to be included in the
Product Disclosure Statement only to the extent to which the
requirement is applicable to the superannuation product.
3 Contents of section 1 (About [name of superannuation product])
(1) Section 1 of the Product Disclosure Statement must:
(a) describe, in the form of a summary, the superannuation entity
and the MySuper products and other investment options
offered by the entity; and
(b) include a statement of where, on the entity’s website, the
member can find:
(i) the product dashboard for each MySuper product and
choice product in the entity; and
Federal Register of Legislative Instruments F2015C00303
Form and content of Product Disclosure Statement—superannuation product to which
Subdivision 4.2B of Division 4 of Part 7.9 applies Schedule 10D
Clause 4
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(ii) each trustee and executive remuneration disclosure for
the entity, and any other document that must be
disclosed for the entity under the SIS Regulations; and
(c) a statement describing the entity’s process for transitioning
each member whose interest includes an accrued default
amount from an existing default option to a MySuper product
by 1 July 2017.
(2) Paragraph (1)(c) applies until the earlier of:
(a) 1 July 2017; and
(b) the day on which the entity has attributed each accrued
default amount in the entity to a MySuper product.
Note: Putting the information mentioned in paragraph (1)(b) onto the
superannuation fund’s website does not amount to adding the
information to the Product Disclosure Statement.
4 Contents of section 2 (How super works)
(1) Section 2 of the Product Disclosure Statement must include
statements to the effect that:
(a) superannuation is a means of saving for retirement which is,
in part, compulsory; and
(b) there are different types of contributions available to a person
(for example, employer contributions, voluntary
contributions, government co-contributions); and
(c) there are limitations on contributions to, and withdrawals
from, superannuation; and
(d) tax savings are provided by the Government; and
(e) most people have the right to choose into which
superannuation entity the employer should direct their
superannuation guarantee contributions.
(2) The superannuation trustee may provide more detailed information
on the matters set out in subclause (1) by:
(a) applying, adopting or incorporating a matter in writing; or
(b) providing a reference to a website, operated by or on behalf
of the Commonwealth, that contains the information.
Federal Register of Legislative Instruments F2015C00303
Schedule 10D Form and content of Product Disclosure Statement—superannuation
product to which Subdivision 4.2B of Division 4 of Part 7.9 applies
Clause 5
192 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
5 Contents of section 3 (Benefits of investing with [name of
superannuation product])
(1) Section 3 of the Product Disclosure Statement must describe the
superannuation product covered by the Statement, including a
summary of its significant features and the benefits it provides.
(2) The superannuation trustee may provide additional information
about significant benefits of superannuation or other significant
features of the superannuation product by applying, adopting or
incorporating a matter in writing.
6 Contents of section 4 (Risks of super)
(1) Section 4 of the Product Disclosure Statement must include
statements to the following effect:
(a) all investments carry risk;
(b) different strategies may carry different levels of risk,
depending on the assets that make up the strategy;
(c) assets with the highest long-term returns may also carry the
highest level of short-term risk.
(2) Section 4 must describe, in the form of a summary, the significant
risks of the particular superannuation product.
(3) Section 4 must describe the significant risks of superannuation (to
the extent only that the description required by subitem (2) has not
already described the risk) by including statements to the following
effect:
(a) the value of investments will vary;
(b) the level of returns will vary, and future returns may differ
from past returns;
(c) returns are not guaranteed, and persons may lose some of
their money;
(d) superannuation laws may change in the future;
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Form and content of Product Disclosure Statement—superannuation product to which
Subdivision 4.2B of Division 4 of Part 7.9 applies Schedule 10D
Clause 7
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(e) the amount of a person’s future superannuation savings
(including contributions and returns) may not be enough to
provide adequately for the person’s retirement;
(f) the level of risk for each person will vary depending on a
range of factors, including:
(i) age; and
(ii) investment time frames; and
(iii) where other parts of the person’s wealth are invested;
and
(iv) the person’s risk tolerance.
(4) The superannuation trustee may provide additional information
about significant risks of superannuation by applying, adopting or
incorporating a matter in writing.
7 Contents of section 5 (How we invest your money)
(1) Section 5 of the Product Disclosure Statement must describe, in the
form of a summary:
(a) the MySuper products and investment options being offered;
and
(b) what happens if the person does not make a choice of where
to invest.
(2) Section 5 must state, in the form of a warning, that the person must
consider:
(a) the likely investment return; and
(b) the risk; and
(c) the person’s investment timeframe;
when choosing a MySuper product or an investment option in
which to invest.
(3) For at least one MySuper product or investment option, section 5
must:
(a) state the name of the MySuper product or investment option
and give a short description of it, including the type of
investors for whom it is intended to be suitable; and
Federal Register of Legislative Instruments F2015C00303
Schedule 10D Form and content of Product Disclosure Statement—superannuation
product to which Subdivision 4.2B of Division 4 of Part 7.9 applies
Clause 7
194 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) list the asset classes in which the MySuper product or
investment option invests, and set out, in the form of a range
or otherwise, the strategic asset allocation of the asset
classes; and
(c) describe the investment return objective of the MySuper
product or investment option; and
(d) state the minimum suggested time frame for holding the
MySuper product or investment option; and
(e) describe, in the form of a summary, the risk level of the
MySuper product or investment option.
(4) If the superannuation product includes a generic MySuper product,
section 5 must give the information mentioned in subclause (3) for
the generic MySuper product, whether or not section 5 gives that
information for another MySuper product or investment option.
(5) If the superannuation product does not include a generic MySuper
product, and has a balanced investment option (within the meaning
given by clause 101 of Schedule 10), section 5 must give the
information mentioned in subclause (3) for the balanced
investment option under which most assets of the superannuation
entity are invested, whether or not section 5 gives that information
for any MySuper product or other investment option.
(6) If the superannuation product does not include a generic MySuper
product or a balanced investment option (within the meaning given
by clause 101 of Schedule 10), section 5 must give the information
mentioned in subclause (3) for the investment option under which
most assets of the superannuation entity are invested, whether or
not section 5 gives that information for any MySuper product or
other investment option.
(8) Section 5:
(a) must make provision for each MySuper product and
investment option which is not presented in section 5 in
accordance with subclause (3), (4), (5) or (6); and
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Form and content of Product Disclosure Statement—superannuation product to which
Subdivision 4.2B of Division 4 of Part 7.9 applies Schedule 10D
Clause 8
Corporations Regulations 2001 195
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) may make provision for the MySuper product or investment
option by applying, adopting or incorporating matter in a
document that:
(i) includes the information mentioned in subclause (3);
and
(ii) presents it in the way mentioned in the subclause.
(9) The superannuation trustee:
(a) must provide information about how a person may switch the
person’s investments; and
(b) whether the superannuation product’s MySuper products and
investment options may be changed and, if so, how; and
(c) must describe, in the form of a summary, the extent to which
labour standards or environmental, social or ethical
considerations are taken into account in the selection,
retention or realisation of investments relating to the
superannuation product; and
(d) may provide the information in paragraphs (a) to (c), and any
additional information about MySuper products or
investment options, by applying, adopting or incorporating a
matter in writing.
8 Contents of section 6 (Fees and costs)
(1) For each MySuper product or investment option within a
superannuation product that is presented in section 5 in detail in
accordance with subclause 7(3), section 6 of the Product
Disclosure Statement must state:
(a) the cost of acquiring the MySuper product or investment
option; and
(b) the fees and costs that are charged in relation to the MySuper
product or investment option.
Note: The statement will be made using the template set out in
subclause (3).
(2) Before setting out any other substantive material, section 6 must:
Federal Register of Legislative Instruments F2015C00303
Schedule 10D Form and content of Product Disclosure Statement—superannuation
product to which Subdivision 4.2B of Division 4 of Part 7.9 applies
Clause 8
196 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) set out the Consumer Advisory Warning in clause 221 of
Schedule 10; and
(b) give a concise example in the form set out in the Consumer
Advisory Warning in clause 221 of Schedule 10.
(3) Section 6 must set out the fees and costs for each MySuper product
or other investment option that is presented in section 5 in detail in
accordance with subclause 7(3), using the following templates:
[Name of superannuation product]
Type of fee Amount How and when paid
Investment fee
Administration fee
Buy-sell spread
Switching fee
Exit fee
Advice fees
relating to all members
investing in a particular
MySuper product or
investment option
Other fees and costs¹
Indirect cost ratio
1. [If there are other fees and costs, such as activity fees, advice fees for personal advice or insurance fees, include a cross-reference to the “Additional Explanation of Fees and Costs”.]
(4) The template is to be completed in accordance with Division 3 of
Schedule 10 (including definitions applicable to that Division),
except that:
(a) clauses 203, 205, 206 and 207 and subclause 208(2) do not
apply; and
(b) the reference in clause 204 to clause 205 and clause 206 does
not apply; and
(c) the example in subclause 208(1) is to be treated as stating:
Federal Register of Legislative Instruments F2015C00303
Form and content of Product Disclosure Statement—superannuation product to which
Subdivision 4.2B of Division 4 of Part 7.9 applies Schedule 10D
Clause 8
Corporations Regulations 2001 197
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
“(for example, by using an asterisk with a footnote stating
‘The amount of this fee can be negotiated’)”.
(5) Section 6 must set out the information about fee changes set out in
paragraph 209(k) of Schedule 10.
(6) Section 6 must:
(a) state that the information in the template can be used to
compare costs between different superannuation products;
and
(b) state concisely, and in general terms, that fees and costs can
be paid directly from the person’s account or deducted from
investment returns.
(6A) Section 6 must:
(a) apply, adopt or incorporate the definitions in relation to fees
mentioned in section 29V of the SIS Act; and
(b) include the address of a link to the definitions maintained on
a website.
(7) Section 6 must give a worked example for each MySuper product
or investment option described in section 5.
(7A) The example given must be in accordance with Divisions 5 and 6
of Schedule 10 (including the definitions applicable to those
Divisions).
(8) Section 6:
(a) must refer to the calculator provided by ASIC on its FIDO
website or a similar website operated by or on behalf of
ASIC; and
(b) may also refer to the calculator (if any) provided by the
superannuation trustee on its website; and
(c) must state that each calculator referred to can be used to
calculate the effect of fees and costs on account balances.
(9) If additional fees may be payable to a financial advisor, section 6
must:
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Schedule 10D Form and content of Product Disclosure Statement—superannuation
product to which Subdivision 4.2B of Division 4 of Part 7.9 applies
Clause 9
198 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) state, in the form of a warning, that additional fees may be
paid to a financial advisor if a financial advisor is consulted;
and
(b) refer to the Statement of Advice in which details of the fees
are set out; and
(c) if applicable:
(i) state that fees may be paid to the employer entity’s
financial adviser; and
(ii) explain how the fees are determined.
(10) The superannuation trustee:
(a) must provide the fees and costs of each of the MySuper
products and investment options in accordance with
Schedule 10, and may do so by applying, adopting or
incorporating a matter in writing; and
(b) may provide more detailed information about fees and costs
by applying, adopting or incorporating a matter in writing.
9 Contents of section 7 (How super is taxed)
(1) Section 7 of the Product Disclosure Statement must describe, in the
form of a summary, the significant tax information relating to
superannuation products, including:
(a) how tax amounts due are paid; and
(b) the main taxes that are payable in relation to contributions (if
contributions are permitted), fund earnings and withdrawals.
(2) Section 7 must:
(a) state, in the form of a warning, that the person should provide
the person’s tax file number as part of acquiring the
superannuation product; and
(b) explain, in the form of a summary, the consequences if the
person does not provide the person’s tax file number; and
(c) if contributions are permitted—set out a warning that there
will be taxation consequences if the contribution caps
applicable to superannuation are exceeded.
Federal Register of Legislative Instruments F2015C00303
Form and content of Product Disclosure Statement—superannuation product to which
Subdivision 4.2B of Division 4 of Part 7.9 applies Schedule 10D
Clause 10
Corporations Regulations 2001 199
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(3) The superannuation trustee may provide additional information
about taxation matters relating to superannuation products by
applying, adopting or incorporating a matter in writing.
10 Contents of section 8 (Insurance in your super)
(1) If the superannuation product does not offer insurance cover, the
Product Disclosure Statement is not required to include any of the
information in this clause.
(2) If the superannuation product offers insurance cover, section 8
must:
(a) describe, in the form of a summary, the main types of
insurance cover that a person can acquire; and
(b) describe, in the form of a summary, how to apply for
insurance cover; and
(c) include a statement to the effect that there are costs
associated with insurance cover; and
(d) describe, in the form of a summary, who is responsible for
paying the insurance costs and how they are calculated.
(3) If the superannuation product offers insurance cover by default,
section 8 must:
(a) describe, in the form of a summary, the level and type of
cover; and
(b) state:
(i) the actual cost of the cover in dollars, or the range of
costs that would be payable depending on a person’s
circumstances; and
(ii) who is responsible for paying the costs; and
(c) state whether a person can:
(i) decline to acquire the cover; or
(ii) cancel the cover; and
(d) state how a person can decline to acquire the cover or cancel
the cover; and
Federal Register of Legislative Instruments F2015C00303
Schedule 10D Form and content of Product Disclosure Statement—superannuation
product to which Subdivision 4.2B of Division 4 of Part 7.9 applies
Clause 10
200 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(e) state whether a person can change the person’s insurance
cover; and
(f) state how a person can change the person’s insurance cover;
and
(g) state, in the form of a warning, that, unless a person declines
to acquire the default insurance cover or cancels it, the cost
of the cover will be deducted from the person’s account or
from the person’s contributions (as applicable); and
(h) include information about eligibility for, and the cancellation
of, the insurance cover; and
(i) include information about any conditions and exclusions that
are applicable to the insurance cover.
(4) If the superannuation product does not offer insurance cover by
default but offers insurance cover as an option, section 8 must
include the following information:
(a) the level and type of insurance cover available;
(b) the actual cost of the cover in dollars, or the range of costs
that would be payable depending on a person’s
circumstances;
(c) eligibility for, and the cancellation of, the insurance cover;
(d) any conditions and exclusions that are applicable to the
insurance cover;
(e) any other significant matter in relation to insurance cover.
Examples for paragraph (e):
1 Information about how a person can apply for the insurance cover.
2 Information about how a person can subsequently change or cancel
the insurance cover.
(5) The superannuation trustee:
(a) may provide the information in paragraphs (3)(h) and (i) and
subclause (4); and
(b) may provide additional information about insurance cover;
by applying, adopting or incorporating a matter in writing.
(6) If information about:
Federal Register of Legislative Instruments F2015C00303
Form and content of Product Disclosure Statement—superannuation product to which
Subdivision 4.2B of Division 4 of Part 7.9 applies Schedule 10D
Clause 11
Corporations Regulations 2001 201
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) eligibility for, or the cancellation of, the insurance cover; or
(b) any conditions and exclusions that are applicable to the
insurance cover;
is provided for in accordance with subclause (5), section 8 must
include a warning to the effect that the matter may affect a person’s
entitlement to insurance cover and that the information should be
read before deciding whether the insurance is appropriate.
(7) If information about:
(a) the level and type of optional insurance cover available; or
(b) the actual cost of the optional insurance cover in dollars, or
the range of costs that would be payable depending on a
person’s circumstances; or
(c) any other significant matter in relation to insurance cover;
is provided for in accordance with subclause (5), section 8 must
include a warning to the effect that the information should be read
before deciding whether the insurance is appropriate.
11 Contents of section 9 (How to open an account)
(1) Section 9 of the Product Disclosure Statement must, if applicable:
(a) describe, in the form of a summary, how to open an account
with the superannuation provider; and
(b) explain the cooling-off period that applies to the
superannuation product; and
(c) explain how to make a complaint (by means that include the
provision of relevant contact details).
Note: The effect of subclause 10(1) is that the Product Disclosure Statement
is not required to include section 8 (as set out in clause 10) if the
superannuation product does not offer insurance cover. In that case,
subclause 2(2) allows the Statement to present the information in this
clause as “section 8” or “section 9”.
(2) The superannuation trustee:
(a) may provide more detailed information about cooling-off
periods, complaints and dispute resolution; and
Federal Register of Legislative Instruments F2015C00303
Schedule 10D Form and content of Product Disclosure Statement—superannuation
product to which Subdivision 4.2B of Division 4 of Part 7.9 applies
Clause 11
202 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) may provide that information by applying, adopting or
incorporating a matter in writing.
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Form and content of Product Disclosure Statement—simple managed investment
scheme Schedule 10E
Clause 1
Corporations Regulations 2001 203
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 10E—Form and content of Product
Disclosure Statement—simple
managed investment scheme (regulation 7.9.11W)
1 Length and font size for Product Disclosure Statement for simple
managed investment scheme
(1) The length of a Product Disclosure Statement for a simple
managed investment scheme to which Subdivision 4.2C of
Division 4 of Part 7.9 applies (not including any matter in writing
that is applied, adopted or incorporated by the Statement) must not
exceed:
(a) if it is printed on A4 pages—8 pages; or
(b) if it is printed on A5 pages—16 pages; or
(c) if it is printed on DL pages—24 pages; or
(d) otherwise—if it is formatted to be printed on A4 pages, 8 A4
pages.
(2) The minimum font size for text in the Statement is:
(a) for the name, address, ABN (if applicable), ACN (if
applicable), ARSN and AFSL (if applicable) of the person
giving the Statement—8 points; and
(b) for all other text—9 points.
Note 1: The Product Disclosure Statement must be worded and presented in a
clear, concise and effective manner—see subsection 1013C(3) of the
Act.
Note 2: A person required to a give a Product Disclosure Statement to a
vision-impaired person must comply with its obligations under the
Disability Discrimination Act 1992.
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Schedule 10E Form and content of Product Disclosure Statement—simple managed
investment scheme
Clause 2
204 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
2 Minimum content of Product Disclosure Statement for simple
managed investment scheme
(1) The Product Disclosure Statement must include sections which
must be numbered and titled as follows:
1. About [name of responsible entity]
2. How [name of simple managed investment scheme] works
3. Benefits of investing in [name of simple managed investment
scheme]
4. Risks of managed investment schemes
5. How we invest your money
6. Fees and costs
7. How managed investment schemes are taxed
8. How to apply.
(2) The Statement must include:
(a) a table of contents that sets out the titles mentioned in
subclause (1); and
(b) the telephone number of the responsible entity for the simple
managed investment scheme to enable a person who invests
in the simple managed investment scheme to request a copy
of the following under regulation 7.9.11Z:
(i) a copy of the Statement; and
(ii) a copy of a matter in writing that is applied, adopted or
incorporated by the Statement.
(3) The Statement must:
(a) advise a person reading the Statement that:
(i) it is a summary of significant information and contains a
number of references to important information (each of
which forms part of the Statement); and
(ii) persons should consider that information before making
a decision about the simple managed investment
scheme; and
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Form and content of Product Disclosure Statement—simple managed investment
scheme Schedule 10E
Clause 3
Corporations Regulations 2001 205
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(iii) the information provided in the Statement is general
information only and does not take account of the
person’s personal financial situation or needs; and
(iv) the person should obtain financial advice tailored to the
person’s personal circumstances; and
(b) display the advice:
(i) at or near the beginning of the document; and
(ii) in a prominent position and style.
(4) The Statement:
(a) may include additional sections after sections 1 to 8; and
(b) may include other information;
to an extent that does not have the effect of contravening
subclause 1(1).
(5) The Product Disclosure Statement does not need to indicate that a
particular requirement is not applicable to the simple managed
investment scheme.
Note: The Act, as modified in accordance with Subdivision 4.2C of
Division 4 of Part 7.9, requires information to be included in the
Product Disclosure Statement only to the extent to which the
requirement is applicable to the simple managed investment scheme.
3 Contents of section 1 (About [name of responsible entity])
(1) Section 1 of the Product Disclosure Statement must describe, in the
form of a summary:
(a) the responsible entity and its role in operating the simple
managed investment scheme; and
(b) the investment manager, if the investment manager is
different from the responsible entity.
(2) If there is more than 1 investment manager, the Statement may
describe a particular manager by applying, adopting or
incorporating a matter in writing.
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Schedule 10E Form and content of Product Disclosure Statement—simple managed
investment scheme
Clause 4
206 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
4 Contents of section 2 (How [name of simple managed investment
scheme] works)
(1) Section 2 of the Product Disclosure Statement must describe, in the
form of a summary:
(a) how the simple managed investment works; and
(b) the interests that members acquire.
(2) Section 2 must:
(a) if applicable—describe, in the form of a summary, the
minimum investment amounts; and
(b) provide information about the structure of the simple
managed investment scheme; and
(c) state, in general terms, that the price of interests will vary as
the market value of assets in the simple managed investment
scheme rises or falls; and
(d) describe, in the form of a summary, how members can
increase or decrease their investment by acquiring interests or
disposing of interests; and
(e) state, in general terms, that in some circumstances, such as
when there is a freeze on withdrawals, members may not be
able to withdraw their funds within the usual period upon
request; and
(f) describe the frequency of distributions and explain how
distributions are calculated.
(3) The responsible entity:
(a) may provide more detailed information on the acquisition
and disposal of interests; and
(b) may provide the information by applying, adopting or
incorporating a matter in writing.
5 Contents of section 3 (Benefits of investing in [name of simple
managed investment scheme])
(1) Section 3 of the Product Disclosure Statement must, before setting
out any other information, describe, in the form of a summary:
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Form and content of Product Disclosure Statement—simple managed investment
scheme Schedule 10E
Clause 6
Corporations Regulations 2001 207
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the significant features of the simple managed investment
scheme; and
(b) the significant benefits of the simple managed investment
scheme.
(2) The responsible entity may provide additional information about:
(a) any feature or benefit of the simple managed investment
scheme; or
(b) other features and benefits of the simple managed investment
scheme; or
(c) other features and benefits of simple managed investment
schemes;
by applying, adopting or incorporating a matter in writing.
6 Contents of section 4 (Risks of managed investment schemes)
(1) Section 4 of the Product Disclosure Statement must include
statements to the following effect:
(a) all investments carry risk;
(b) different strategies may carry different levels of risk,
depending on the assets that make up the strategy;
(c) assets with the highest long-term returns may also carry the
highest level of short-term risk.
(2) Section 4 must describe, in the form of a summary, the significant
risks of the particular simple managed investment scheme.
(3) Section 4 must describe the significant risks of managed
investment schemes (to the extent only that the description
required by subitem (2) has not already described the risk) by
including statements to the following effect:
(a) the value of investments will vary;
(b) the level of returns will vary, and future returns may differ
from past returns;
(c) returns are not guaranteed, and members may lose some of
their money;
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Schedule 10E Form and content of Product Disclosure Statement—simple managed
investment scheme
Clause 7
208 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(d) laws affecting registered managed investment schemes may
change in the future;
(e) the level of risk for each person will vary depending on a
range of factors, including:
(i) age; and
(ii) investment time frames; and
(iii) where other parts of the member’s wealth are invested;
and
(iv) the member’s risk tolerance.
(4) The responsible entity may provide additional information about
significant risks of managed investment schemes by applying,
adopting or incorporating a matter in writing.
7 Contents of section 5 (How we invest your money)
(1) Section 5 of the Product Disclosure Statement must describe, in the
form of a summary, the investment options offered by the simple
managed investment scheme.
(2) Section 5 must state, in the form of a warning, that the person
should consider:
(a) the likely investment return; and
(b) the risk; and
(c) the person’s investment timeframe;
when choosing an option in which to invest.
New simple managed investment scheme
(3) If the simple managed investment scheme has never previously
been offered to investors, and does not offer any investment option
mentioned in subclauses (4) and (5) about which section 5 can give
information, section 5 must give the following information for the
investment option that the responsible entity reasonably believes
has the least volatile underlying assets (whether or not section 5
gives that information for any other investment option):
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Form and content of Product Disclosure Statement—simple managed investment
scheme Schedule 10E
Clause 7
Corporations Regulations 2001 209
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(a) the name of the option and a short description of it, including
the type of investors for whom it is intended to be suitable;
(b) a list of the asset classes in which the option invests, setting
out the strategic asset allocation of the asset classes in the
form of a range or otherwise;
(c) a description of the investment return objective of the option;
(d) the minimum suggested time frame for holding the
investment;
(e) a description, in the form of a summary, of the risk level of
the option.
Balanced investment option
(4) If the simple managed investment scheme has a balanced
investment option (within the meaning given by item 101 of
Schedule 10), section 5 must give the following information for the
balanced investment option (whether or not section 5 gives that
information for any other investment option):
(a) the name of the option and a short description of it, including
the type of investors for whom it is intended to be suitable;
(b) a list of the asset classes in which the option invests, setting
out the strategic asset allocation of the asset classes in the
form of a range or otherwise;
(c) a description of the investment return objective of the option;
(d) the minimum suggested time frame for holding the
investment;
(e) a description, in the form of a summary, of the risk level of
the option.
No balanced investment option
(5) If the simple managed investment scheme does not have a balanced
investment option (within the meaning given by item 101 of
Schedule 10), section 5 must give the following information for the
investment option under which the entity has the most funds
invested (whether or not section 5 gives that information for any
other investment option):
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Schedule 10E Form and content of Product Disclosure Statement—simple managed
investment scheme
Clause 7
210 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the name of the option and a short description of it, including
the type of investors for whom it is intended to be suitable;
(b) a list of the asset classes in which the option invests, setting
out the strategic asset allocation of the asset classes in the
form of a range or otherwise;
(c) a description of the investment return objective of the option;
(d) the minimum suggested time frame for holding the
investment;
(e) a description, in the form of a summary, of the risk level of
the option.
(6) Section 5:
(a) must make provision for each investment option which is not
presented in section 5 in accordance with subclause (3), (4)
or (5); and
(b) may make provision for the option by applying, adopting or
incorporating matter in a document that:
(i) includes the information mentioned in subclause (3), (4)
or (5); and
(ii) presents it in the way mentioned in the subclause.
(7) The responsible entity:
(a) must provide information about how a member may switch
the member’s investments; and
(b) must provide information about:
(i) whether the simple managed investment scheme’s
investment options may be changed; and
(ii) if so, how the options may be changed; and
(c) must describe, in the form of a summary, the extent to which
labour standards or environmental, social or ethical
considerations are taken into account in the selection,
retention or realisation of investments relating to the simple
managed investment scheme; and
(d) may provide the information in paragraphs (a) to (c), and any
additional information about investment options, by
applying, adopting or incorporating a matter in writing.
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Form and content of Product Disclosure Statement—simple managed investment
scheme Schedule 10E
Clause 8
Corporations Regulations 2001 211
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
8 Contents of section 6 (Fees and costs)
(1) For each investment option of the simple managed investment
scheme that is presented in section 5 in detail in accordance with
subclause 7(3), section 6 of the Product Disclosure Statement must
state:
(a) the cost of acquiring the option; and
(b) the fees and costs that are charged in relation to the option.
Note: The statement will be made using the template set out in
subclause (3).
(2) Before setting out any other substantive material, section 6 must:
(a) set out the Consumer Advisory Warning in clause 221 of
Schedule 10; and
(b) give a concise example in the form set out in the Consumer
Advisory Warning in clause 221 of Schedule 10.
(3) Section 6 must set out the fees and costs for each investment option
that is presented in section 5 in detail in accordance with
subclause 7(3), using the following template:
TYPE OF FEE OR COST AMOUNT
Fees when your money moves in or out of the fund
Establishment fee
Contribution fee
Withdrawal fee
Termination fee
Management costs
The fees and costs for managing your investment [If there are other service fees, such as advisor service fees or special request
fees, include a cross reference to the document that contains the information
mentioned in paragraph (10)(a).].
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Schedule 10E Form and content of Product Disclosure Statement—simple managed
investment scheme
Clause 8
212 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) The template is to be completed in accordance with Division 3 of
Schedule 10 (including definitions applicable to that Division),
except that:
(a) clauses 203, 205, 206 and 207 and subclause 208(2) do not
apply; and
(b) the reference in clause 204 to clause 205 and clause 206 does
not apply; and
(c) the example in subclause 208(1) is to be treated as stating:
“(for example, by using an asterisk with a footnote stating
‘The amount of this fee can be negotiated’)”.
(5) Section 6 must set out the information about fee changes set out in
paragraph 209(k) of Schedule 10.
(6) Section 6 must:
(a) state that the information in the template can be used to
compare costs between different simple managed investment
schemes; and
(b) state concisely, and in general terms, that fees and costs can
be paid directly from the person’s account or deducted from
investment returns.
(7) Section 6 must give a worked example as follows:
(a) if the simple managed investment scheme does not have a
balanced investment option (within the meaning given by
item 101 of Schedule 10), section 6 must give a worked
example for the default investment option;
(b) if the simple managed investment scheme does not have a
default option, and does not have a balanced investment
option, section 6 must give a worked example for the
investment option under which the entity has the most funds
invested;
in accordance with Divisions 5 and 6 of Schedule 10 (including
definitions applicable to those Divisions), except that clauses 211
and 220 do not apply.
(8) Section 6:
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Form and content of Product Disclosure Statement—simple managed investment
scheme Schedule 10E
Clause 9
Corporations Regulations 2001 213
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) must refer to the calculator provided by ASIC on its FIDO
website or a similar website operated by or on behalf of
ASIC; and
(b) may also refer to the calculator (if any) provided by the
responsible entity on its website; and
(c) must state that each calculator referred to can be used to
calculate the effect of fees and costs on account balances.
(9) If additional fees may be payable to a financial advisor, section 6
must:
(a) state, in the form of a warning, that additional fees may be
paid to a financial advisor if a financial advisor is consulted;
and
(b) refer to the Statement of Advice in which details of the fees
are set out.
(10) The responsible entity:
(a) must provide the fees and costs of each of the investment
options in accordance with Schedule 10, and may do so by
applying, adopting or incorporating a matter in writing; and
(b) may provide more detailed information about fees and costs
by applying, adopting or incorporating a matter in writing.
9 Contents of section 7 (How managed investment schemes are
taxed)
(1) Section 7 of the Product Disclosure Statement must state, in the
form of a warning, that:
(a) investing in a registered managed investment scheme is
likely to have tax consequences; and
(b) persons are strongly advised to seek professional tax advice.
(2) Section 7 must also include statements to the following effect:
(a) registered managed investment schemes do not pay tax on
behalf of members;
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Schedule 10E Form and content of Product Disclosure Statement—simple managed
investment scheme
Clause 10
214 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) members are assessed for tax on any income and capital
gains generated by the registered managed investment
scheme.
(3) The responsible entity may provide additional information about:
(a) taxation matters relating to the registered managed
investment scheme; or
(b) taxation matters relating to registered managed investment
schemes;
by applying, adopting or incorporating a matter in writing.
10 Contents of section 8 (How to apply)
(1) Section 8 of the Product Disclosure Statement must:
(a) describe, in the form of a summary, how to invest in the
simple managed investment scheme; and
(b) explain the cooling-off period that applies to the simple
managed investment scheme; and
(c) explain how to make a complaint (by means that include the
provision of relevant contact details).
(2) The responsible entity:
(a) may provide more detailed information about cooling-off
periods, complaints and dispute resolution; and
(b) may provide that information by applying, adopting or
incorporating a matter in writing.
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Persons who are not covered by section 1433 of the Act Schedule 10D
Corporations Regulations 2001 215
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Schedule 10D—Persons who are not covered
by section 1433 of the Act (regulation 10.2.36)
Item Person Period
1 A person who is or has been an insolvent under
administration
5 years after the start of the
administration
2 A body corporate that has been an
externally-administered body corporate
5 years after the start of the
administration
3 A person who has been convicted of fraud 10 years after the conviction
4 A person to whom the following circumstances
apply:
(a) the person is the subject of legal proceedings
for criminal fraud;
(b) the proceedings could, because of the
content or nature of the relevant originating
process, result in a judgment being made
that would cause a person to be someone to
whom item 3 applies;
(c) the court has not delivered a judgment in
relation to the issue of the fraud
5 A person to whom the following circumstances
apply:
(a) the person has been found liable by a court
for a contravention of a law relating to
financial services activities;
(b) the proceedings were brought by a regulator;
(c) the proceedings related to conduct that
occurred in the course of the person’s
engaging in financial services activities, and
was related to that person’s activities
10 years after the conduct
first occurred
6 A person to whom the following circumstances
apply:
(a) the person is the subject of legal proceedings
for a contravention of a law relating to
financial services activities;
(b) the proceedings were brought by a regulator;
Federal Register of Legislative Instruments F2015C00303
Schedule 10D Persons who are not covered by section 1433 of the Act
216 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item Person Period
(c) the proceedings relate to conduct that
occurred in the course of the person’s
engaging in financial services activities, and
was related to that person’s activities;
(d) the court has not delivered a judgment in
relation to the contravention
7 A person who has had:
(a) an authorisation; or
(b) a registration; or
(c) a licence; or
(d) the ability to engage in financial services
activities;
cancelled, suspended or revoked by, or as a
direct result of the actions of, a regulator
5 years after the
cancellation, suspension or
revocation
8 A person who is a responsible officer of a
person mentioned in item 1
8A A person who is a subsidiary of a body
corporate mentioned in item 2
8B A person (person 1) who is related body
corporate of a body corporate that is mentioned
in item 2 (person 2), if person 2 has previously
held a licence, registration or authorisation
granted by a regulator mentioned in
paragraphs (a) to (d) of the definition of
regulator in regulation 10.2.35
9 A person an associate of whom is a person
mentioned in any of items 3 to 7
10 A person who is deemed to be a registered
insurance broker under subsection 24(2) of the
Insurance (Agents and Brokers) Act 1984
This item applies to the person only to the
extent that the person operates insurance
broking activities that are described in that Act
Federal Register of Legislative Instruments F2015C00303
ASIC transitional standards Schedule 12
Corporations Regulations 2001 217
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Schedule 12—ASIC transitional standards (regulation 12.7.01)
1. The following provisions of Book 3 of the Prudential Notes and
Prudential Standards issued by AFIC under Part 4 of the AFIC
Code of a State or Territory, as in force immediately before the
transfer date:
(a) the modification of the accounting standard known as
Accounting Standard AASB 1032 (published in the Gazette
on 12 December 1996) by Prudential Standard 3.3.1, except
the definition of deposits added to the accounting standard by
the Prudential Standard;
(b) Prudential Standard 3.5.4;
(c) Prudential Standard 3.5.5;
(d) Prudential Standard 3.7.1;
(e) Prudential Standard 3.7.4;
(f) Prudential Standard 3.7.5.
2. The following provisions of Book 4 of the Prudential Notes and
Prudential Standards issued by AFIC under Part 4 of the AFIC
Code of a State or Territory, as in force immediately before the
transfer date:
(a) the modification of the accounting standard known
Accounting Standard AASB 1032 (published in the Gazette
on 12 December 1996) by Prudential Standard 4.3.1, except
the definition of deposits added to the accounting standard by
the Prudential Standard;
(b) Prudential Standard 4.7.1;
(c) Prudential Standard 4.7.4;
(d) Prudential Standard 4.7.5.
3. The following provisions of Book 5 of the Prudential Notes and
Prudential Standards issued by AFIC under Part 4 of the AFIC
Code of a State or Territory, as in force immediately before the
transfer date:
(a) Prudential Standard 5.5.1;
(b) Prudential Standard 5.5.3;
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Schedule 12 ASIC transitional standards
218 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) Prudential Standard 5.5.4.
4. The following provisions of Book 6 of the Prudential Notes and
Prudential Standards issued by AFIC under Part 4 of the AFIC
Code of a State or Territory, as in force immediately before the
transfer date:
(a) Prudential Standard 6.7.2;
(b) Prudential Standard 6.7.4;
(c) Prudential Standard 6.7.5;
(d) Prudential Standard 6.8.3.
Federal Register of Legislative Instruments F2015C00303
Prepared by the Office of Parliamentary Counsel, Canberra
Corporations Regulations 2001
Statutory Rules No. 193, 2001
made under the
Corporations Act 2001
Compilation No. 113
Compilation date: 31 March 2015
Includes amendments up to: SLI No. 39, 2015
Registered: 9 April 2015
This compilation is in 7 volumes
Volume 1: regulations 1.0.01–6D.5.02
Volume 2: regulations 7.1.02–7.6.08E
Volume 3: regulations 7.7.01–8.4.02
Volume 4: regulations 9.1.01–12.9.03
Volume 5: Schedules 1, 2 and 2A
Volume 6: Schedules 3–12
Volume 7: Endnotes
Each volume has its own contents
Federal Register of Legislative Instruments F2015C00303
About this compilation
This compilation
This is a compilation of the Corporations Regulations 2001 that shows the text
of the law as amended and in force on 31 March 2015 (the compilation date).
This compilation was prepared on 31 March 2015.
The notes at the end of this compilation (the endnotes) include information
about amending laws and the amendment history of provisions of the compiled
law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the
compiled law. Any uncommenced amendments affecting the law are accessible
on ComLaw (www.comlaw.gov.au). The details of amendments made up to, but
not commenced at, the compilation date are underlined in the endnotes. For
more information on any uncommenced amendments, see the series page on
ComLaw for the compiled law.
Application, saving and transitional provisions for provisions and
amendments
If the operation of a provision or amendment of the compiled law is affected by
an application, saving or transitional provision that is not included in this
compilation, details are included in the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as
modified but the modification does not amend the text of the law. Accordingly,
this compilation does not show the text of the compiled law as modified. For
more information on any modifications, see the series page on ComLaw for the
compiled law.
Self-repealing provisions
If a provision of the compiled law has been repealed in accordance with a
provision of the law, details are included in the endnotes.
Federal Register of Legislative Instruments F2015C00303
Corporations Regulations 2001 i
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Contents
Endnotes 1
Endnote 1—About the endnotes 1
Endnote 2—Abbreviation key 2
Endnote 3—Legislation history 3
Endnote 4—Amendment history 15
Endnote 5—Misdescribed amendments 89
Corporations Amendment Regulations 2005 (No. 5) (No. 324, 2005) ...........89
Corporations Amendment Regulations 2010 (No. 9) (No. 301, 2010) .........101
Endnote 6—Miscellaneous 102
Federal Register of Legislative Instruments F2015C00303
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 1—About the endnotes
Corporations Regulations 2001 1
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Endnotes
Endnote 1—About the endnotes
The endnotes provide information about this compilation and the compiled law.
The following endnotes are included in every compilation:
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
Endnotes about misdescribed amendments and other matters are included in a
compilation only as necessary.
Abbreviation key—Endnote 2
The abbreviation key sets out abbreviations that may be used in the endnotes.
Legislation history and amendment history—Endnotes 3 and 4
Amending laws are annotated in the legislation history and amendment history.
The legislation history in endnote 3 provides information about each law that
has amended (or will amend) the compiled law. The information includes
commencement details for amending laws and details of any application, saving
or transitional provisions that are not included in this compilation.
The amendment history in endnote 4 provides information about amendments at
the provision (generally section or equivalent) level. It also includes information
about any provision of the compiled law that has been repealed in accordance
with a provision of the law.
Misdescribed amendments
A misdescribed amendment is an amendment that does not accurately describe
the amendment to be made. If, despite the misdescription, the amendment can
be given effect as intended, the amendment is incorporated into the compiled
law and the abbreviation “(md)” added to the details of the amendment included
in the amendment history.
If a misdescribed amendment cannot be given effect as intended, the
amendment is set out in the endnotes.
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 2—Abbreviation key
2 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Endnote 2—Abbreviation key
A = Act orig = original
ad = added or inserted par = paragraph(s)/subparagraph(s)
am = amended /sub-subparagraph(s)
amdt = amendment pres = present
c = clause(s) prev = previous
C[x] = Compilation No. x (prev…) = previously
Ch = Chapter(s) Pt = Part(s)
def = definition(s) r = regulation(s)/rule(s)
Dict = Dictionary Reg = Regulation/Regulations
disallowed = disallowed by Parliament reloc = relocated
Div = Division(s) renum = renumbered
exp = expires/expired or ceases/ceased to have rep = repealed
effect rs = repealed and substituted
F = Federal Register of Legislative Instruments s = section(s)/subsection(s)
gaz = gazette Sch = Schedule(s)
LI = Legislative Instrument Sdiv = Subdivision(s)
LIA = Legislative Instruments Act 2003 SLI = Select Legislative Instrument
(md) = misdescribed amendment SR = Statutory Rules
mod = modified/modification Sub-Ch = Sub-Chapter(s)
No. = Number(s) SubPt = Subpart(s)
o = order(s) underlining = whole or part not
Ord = Ordinance commenced or to be commenced
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 3—Legislation history
Corporations Regulations 2001 3
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Endnote 3—Legislation history
Number and year FRLI registration or
gazettal
Commencement Application,
saving and
transitional
provisions
193, 2001 13 July 2001 15 July 2001 (r 10.01A and
gaz 2001, No S285)
208, 2001 2 Aug 2001 15 July 2001 —
318, 2001 15 Oct 2001 15 Oct 2001 —
319, 2001 15 Oct 2001 11 Mar 2002 (r 2)
Note: r 7.9.10 and 7.9.11
of Sch 1 (item 15) were
partially disallowed by the
Senate on 16 Sept 2002
—
15, 2002 21 Feb 2002 21 Feb 2002 —
16, 2002 21 Feb 2002 r 1–3 and Sch 1: 12:01 am
(A.C.T.) 11 Mar 2002
(r 2(1))
Remainder: 28 Dec 2002
(r 2(2))
Note: r 7.9.10, 7.9.11(1),
7.9.11(1)(a), 7.9.11(1)(b)
and 7.9.11(2) of Sch 1
(items 78–82) were
partially disallowed by the
Senate on 16 Sept 2002
—
41, 2002 7 Mar 2002 r 1–3 and Sch 1: 12:02 am
(A.C.T.) 11 Mar 2002
(r 2(1))
Remainder: 12:01 am
(A.C.T.) 28 Dec 2002
(r 2(2))
—
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 3—Legislation history
4 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Number and year FRLI registration or
gazettal
Commencement Application,
saving and
transitional
provisions
53, 2002 22 Mar 2002 r 1–3 and Sch 1: 12:01 am
(A.C.T.) 11 Mar 2002 (r
2(a))
Remainder: 12:03 am
(A.C.T.) 11 Mar 2002
(r 2(b))
—
126, 2002 14 June 2002 r 1–3 and Sch 1: 12:02 am
11 Mar 2002 (r 2(a))
Sch 2: 12:03 am 11 Mar
2002 (r 2(b))
Remainder: 14 June 2002
(r 2(c))
—
145, 2002 27 June 2002 r 1–3 and Sch 1: 27 June
2002
Remainder: 1 July 2002
—
182, 2002 1 Aug 2002 1 Aug 2002 —
265, 2002 6 Nov 2002 6 Nov 2002 —
282, 2002 28 Nov 2002 1 Dec 2002 —
31, 2003 11 Mar 2003 11 Mar 2003 —
48, 2003 8 Apr 2003 8 Apr 2003 —
85, 2003 8 May 2003 8 May 2003 —
126, 2003 19 June 2003 19 June 2003 —
127, 2003 19 June 2003 1 July 2003 —
194, 2003 31 July 2003 1 Aug 2003 —
202, 2003 6 Aug 2003 r 1–3 and Sch 1: 6 Aug
2003
Remainder: 11 Mar 2004
—
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 3—Legislation history
Corporations Regulations 2001 5
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Number and year FRLI registration or
gazettal
Commencement Application,
saving and
transitional
provisions
282, 2003 13 Nov 2003 r 1–3 and Sch 1: 13 Nov
2003 (r 2(a))
Sch 2: 11 Mar 2004
(r 2(b))
Remainder: 1 July 2004
(r 2(c))
Note: Sch 3 (items 1–4, 6,
8, 9) were partially
disallowed by the Senate
on 24 Mar 2004; rescinded
13 May 2004
r 4
367, 2003 23 Dec 2003 23 Dec 2003 —
368, 2003 23 Dec 2003 r 1–3 and Sch 1: 23 Dec
2003
Remainder: 11 Mar 2004
—
369, 2003 23 Dec 2003 r 1–3 and Sch 1: 23 Dec
2003
Remainder: 14 Jan 2004
(see r. 2)
—
10, 2004 20 Feb 2004 1 July 2004 —
25, 2004 26 Feb 2004 26 Feb 2004 —
26, 2004 26 Feb 2004 r 1–3 and Sch 1: 26 Feb
2004
Remainder: 11 Mar 2004
—
36, 2004 18 Mar 2004 18 Mar 2004 —
145, 2004 25 June 2004 r 1–3 and Sch 1: 1 July
2004
Remainder: 1 Oct 2004
r 4
149, 2004 25 June 2004 r 1–3 and Sch 1: 1 July
2004
Remainder: 1 Jan 2005
—
208, 2004 9 July 2004 9 July 2004 —
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 3—Legislation history
6 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Number and year FRLI registration or
gazettal
Commencement Application,
saving and
transitional
provisions
398, 2004 23 Dec 2004 23 Dec 2004 —
399, 2004 23 Dec 2004 r 1–3 and Sch 1: 23 Dec
2004
Remainder: 1 Jan 2005
—
31, 2005 10 Mar 2005
(F2005L00539)
r 1–3 and Schs 1 and 2:
11 Mar 2005
Remainder: 1 July 2005
—
38, 2005 24 Mar 2005
(F2005L00717)
31 Mar 2005 r 4
139, 2005 17 June 2005
(F2005L01453)
18 June 2005 —
160, 2005 8 July 2005
(F2005L01926)
9 July 2005 —
324, 2005 19 Dec 2005
(F2005L04022)
20 Dec 2005 (r 2) Sch 2 (item 5), Sch
5 (item 2) and Sch
10 (item 8)
41, 2006 16 Feb 2006
(F2006L00547)
17 Feb 2006 —
57, 2006 22 Mar 2006
(F2006L00802)
23 Mar 2006 —
102, 2006 10 May 2006
(F2006L01444)
11 May 2006 —
126, 2006 2 June 2006
(F2006L01617)
3 June 2006 —
362, 2006 14 Dec 2006
(F2006L03961)
15 Dec 2006 —
102, 2007 27 Apr 2007
(F2007L01122)
1 July 2007 —
193, 2007 29 June 2007
(F2007L01900)
30 June 2007 r 3
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 3—Legislation history
Corporations Regulations 2001 7
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Number and year FRLI registration or
gazettal
Commencement Application,
saving and
transitional
provisions
194, 2007 29 June 2007
(F2007L01904)
30 June 2007 —
195, 2007 29 June 2007
(F2007L01901)
1 July 2007 —
196, 2007 29 June 2007
(F2007L01903)
1 July 2007 —
197, 2007 29 June 2007
(F2007L01889)
1 July 2007 —
198, 3007 29 June 2007
(F2007L01899)
r 1–3 and Sch 1: 1 July
2007
Remainder: 1 Sept 2007
(r. 2(b))
—
199, 3007 29 June 2007
(F2007L01898)
1 Sept 2007 (r. 2) —
227, 3007 24 July 2007
(F2007L02255)
25 July 2007 —
259, 2007 24 Aug 2007
(F2007L02637)
25 Aug 2007 —
323, 2007 28 Sept 2007
(F2007L03801)
29 Sept 2007 —
324, 2007 28 Sept 2007
(F2007L03804)
r 1–3 and Sch 1: 29 Sept
2007
Schedule 2: 28 Dec 2007
(r. 2(b))
Remainder: 1 July 2008
(r. 2(c))
—
325, 2007 28 Sept 2007
(F2007L03851)
31 Dec 2007 (. 2) r 4
364, 2007 18 Dec 2007
(F2007L04728)
19 Dec 2007 —
93, 2008 3 June 2008
(F2008L01830)
4 June 2008 —
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 3—Legislation history
8 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Number and year FRLI registration or
gazettal
Commencement Application,
saving and
transitional
provisions
94, 2008 3 June 2008
(F2008L01827)
13 June 2008 (r 2) —
130, 2008 26 June 2008
(F2008L02184)
1 July 2008 —
158, 2008 18 July 2008
(F2008L02510)
19 July 2008 —
194, 2008 19 Sept 2008
(F2008L03458)
20 Sept 2008 —
12, 2009 6 Feb 2009
(F2009L00288)
7 Feb 2009 —
51, 2009 30 Mar 2009
(F2009L01178)
31 Mar 2009 —
52, 2009 30 Mar 2009
(F2009L01169)
1 July 2009 —
70, 2009 1 May 2009
(F2009L01627)
2 May 2009 —
103, 2009 5 June 2009
(F2009L02167)
6 June 2009 —
175, 2009 10 July 2009
(F2009L02719)
11 July 2009 —
198, 2009 3 Aug 2009
(F2009L02988)
4 Aug 2009 —
327, 2009 27 Nov 2009
(F2009L04316)
r 4 and Sch 2: 1 Apr 2010
(r 2(1)(b))
Remainder: 11 Dec 2009
(r 2(1)(a))
—
328, 2009 27 Nov 2009
(F2009L04307)
28 Nov 2009 (r 2) —
386, 2009 16 Dec 2009
(F2009L04494)
17 Dec 2009 (r 2) —
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 3—Legislation history
Corporations Regulations 2001 9
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Number and year FRLI registration or
gazettal
Commencement Application,
saving and
transitional
provisions
387, 2009 16 Dec 2009
(F2009L04516)
17 Dec 2009 (r 2) —
54, 2010 25 Mar 2010
(F2010L00737)
26 Mar 2010 (r 2) —
55, 2010 25 Mar 2010
(F2010L00738)
Sch 2: 12 Oct 2011 (r 2(b))
Remainder: 18 Apr 2010 (r
2(a))
—
88, 2010 6 May 2010
(F2010L01097)
r 7 and Sch 2: 1 July 2010
(r 2(b))
Remainder: 6 May 2010
(r 2(a))
r 4–7
as amended by
41, 2012 12 Apr 2012
(F2012L00836)
6 May 2010 (r 2) —
266, 2012 23 Nov 2012
(F2012L02245)
24 Nov 2012 (r 2) —
89, 2010 10 May 2010
(F2010L01198)
1 Jan 2011 (r 2) —
135, 2010 21 June 2010
(F2010L01585)
22 June 2010 (r 2) r 4
as amended by
274, 2011 9 Dec 2011
(F2011L02616)
10 Dec 2011 (r 2) —
184, 2010 30 June 2010
(F2010L01799)
28 June 2010 (r 2) —
210, 2010 12 July 2010
(F2010L01941)
1 Aug 2010 (r 2) —
272, 2010 27 Oct 2010
(F2010L02820)
28 Oct 2010 (r 2) —
301, 2010 25 Nov 2010
(F2010L03094)
26 Nov 2010 (r 2) —
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 3—Legislation history
10 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Number and year FRLI registration or
gazettal
Commencement Application,
saving and
transitional
provisions
332, 2010 10 Dec 2010
(F2010L03186)
13 Dec 2010 (r 2 and
F2010L03188)
—
66, 2011 13 May 2011
(F2011L00753)
26 May 2011 (r 2) r 4
128, 2011 30 June 2011
(F2011L01368)
1 July 2011 (r 2) —
142, 2011 1 Aug 2011
(F2011L01577)
2 Aug 2011 (r 2) —
193, 2011 21 Oct 2011
(F2011L02103)
Sch 1: 31 Oct 2011 (r 2) —
272, 2011 9 Dec 2011
(F2011L02621)
10 Dec 2011 (r 2) r 4
274, 2011 9 Dec 2011
(F2011L02616)
Sch 2: 10 Dec 2011 (r 2) —
42, 2012 11 Apr 2012
(F2012L00826)
12 Apr 2012 (s 2) —
43, 2012 11 Apr 2012
(F2012L00829)
Sch 2: 12 Apr 2012
Remainder: 13 Apr 2011
(s 2(a))
—
46, 2012 11 Apr 2012
(F2012L00831)
12 Apr 2012 (s 2) —
114, 2012 20 June 2012
(F2012L01272)
Sch 1: 1 July 2012 (s 2(b)
and F2012L01239)
—
170, 2012 12 July 2012
(F2012L01545)
13 July 2012 (s 2) —
171, 2012 13 July 2012
(F2012L01548)
25 July 2012 (s 2) —
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 3—Legislation history
Corporations Regulations 2001 11
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Number and year FRLI registration or
gazettal
Commencement Application,
saving and
transitional
provisions
172, 2012 13 July 2012
(F2012L01549)
12 July 2013 (s 2)
as amended by
308, 2012 11 Dec 2012
(F2012L02414)
12 Dec 2012 (s 2) —
233, 2012 28 Sept
(F2012L01981)
29 Sept 2012 (s 2) —
234, 2012 2 Oct 2012
(F2012L01989)
3 Oct 2012 (s 2) —
247, 2012 30 Oct 2012
(F2012L02102)
1 Nov 2012 (s 2) —
267, 2012 23 Nov 2012
(F2012L02235)
24 Nov 2012 (s 2) —
268, 2012 26 Nov 2012
(F2012L02261)
Sch 2: 1 July 2013 (s 2(b))
Remainder: 27 Nov 2012
(s 2(a))
—
25, 2013 1 Mar 2013
(F2013L00385)
Sch 2: 1 Mar 2013 (s 2) —
26, 2013 21 Mar 2013
(F2013L00395)
Sch 1: 1 July 2013 (s 2(1)
item 2)
—
59, 2013 29 Apr 2013
(F2013L00696)
30 Apr 2013 (s 2) —
83, 2013 16 May 2013
(F2013L00780)
1 July 2013 (s 2) —
101, 2013 4 June 2013
(F2013L00905)
Sch 2: 1 July 2016 (s 2
item 3)
Sch 3: 1 July 2019 (s 2
item 4)
Remainder: 1 July 2013
(s 2 items 1, 2)
—
102, 2013 4 June 2013
(F2013L00906)
5 June 2013 (s 2) —
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 3—Legislation history
12 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Number and year FRLI registration or
gazettal
Commencement Application,
saving and
transitional
provisions
115, 2013 17 June 2013
(F2013L01013)
18 June 2013 (s 2) —
117, 2013 17 June 2013
(F2013L01010)
Sch 1 (items 3, 4): 18 June
2013 (s 2)
—
125, 2013 14 June 2013
(F2013L00993)
Sch 1 (item 1): 1 July 2013
(s 2)
—
150, 2013 29 June 2013
(F2013L01279)
30 June 2013 (s 2) —
151, 2013 28 June 2013
(F2013L01227)
1 July 2013 (s 2) —
152, 2013 28 June 2013
(F2013L01264)
Sch 1 (items 11–17): 1 July
2013 (s 2)
—
155, 2013 28 June 2013
(F2013L01246)
Sch 1 (items 1–86) and
Sch 2 (items 3, 4): 1 July
2013 (s 2 items 2, 6)
Sch 2 (items 1, 2): 1 July
2015 (s 2 item 5)
Sch 3: never commenced
(s 2 items 7, 8)
—
190, 2013 26 July 2013
(F2013L01436)
Sch 1: 27 July 2013 (s 2) —
191, 2013 26 July 2013
(F2013L01440)
Sch 1: 27 July 2013 (s 2) —
192, 2013 25 July 2013
(F2013L01431)
Sch 1 (item 6): 26 July
2013 (s 2)
—
202, 2013 6 Aug 2013
(F2013L01523)
Sch 2: 7 Aug 2013 (s 2) —
33, 2014 14 Mar 2014
(F2014L00261)
Sch 1 (item 2), Sch 2
(items 1–4) and Sch 3
(item 3): 15 Mar 2014 (s 2)
—
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 3—Legislation history
Corporations Regulations 2001 13
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Number and year FRLI registration or
gazettal
Commencement Application,
saving and
transitional
provisions
88, 2014 13 June 2014
(F2014L00711)
Sch 1, 2 and Sch 3
(items 5, 6): 14 June 2014
(s 2)
—
102, 2014 30 June 2014
(F2014L00891)
1 July 2014 (s 2)
Note: disallowed by the
Senate on 19 Nov 2014 at
19:39; rescinded 27 Nov
2014
—
134, 2014 8 Sept 2014
(F2014L01199)
never commenced (s 2) —
as repealed by
210, 2014 15 Dec 2014
(F2014L01704)
16 Dec 2014 (s 2) —
175, 2014 17 Nov 2014
(F2014L01526)
Sch 1: 1 Dec 2014 (s 2
item 2)
Sch 2: 1 Dec 2016 (s 2
item 3)
Remainder: 18 Nov 2014
(s 2 item 1)
—
185, 2014 1 Dec 2014
(F2014L01612)
Sch 1 (item 3): 1 Dec 2014
(s 2(1) item 2)
Sch 2: 2 Dec 2014 (s 2(1)
item 3)
—
208, 2014 15 Dec 2014
(F2014L01707)
16 Dec 2014 (s 2) —
209, 2014 16 Dec 2014
(F2014L01728)
19 Dec 2014 (s 2) —
3, 2015 16 Feb 2015
(F2015L00152)
17 Feb 2015 (s 2) —
24, 2015 12 Mar 2015
(F2015L00287)
13 Mar 2015 (s 2) —
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 3—Legislation history
14 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Number and year FRLI registration or
gazettal
Commencement Application,
saving and
transitional
provisions
39, 2015 30 Mar 2015
(F2015L00367)
Sch 3 (item 1): 31 Mar
2015: (s 2 item 4)
—
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 15
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Endnote 4—Amendment history
Provision affected How affected
Chapter 1
Part 1.0
r. 1.0.02..........................................rs 2001 No. 319
am 2002 No 16, 41 and 282; 2003 No 31, 127 and 368; 2004 No. 26 and
398; 2005 No 31 and 38; 2007 No. 102; 2008 No. 158; 2010 No. 135 and
210; 2012 No 42 and 267; No. 117 and 155, 2013; No 33, 2014; No 24,
2015
r. 1.0.02A.......................................ad. 2010 No. 332
rs. 2011 No. 193
r. 1.0.03..........................................am 2004 No. 399
r. 1.0.03A.......................................ad. 2004 No. 399
am. 2007 No. 195
r. 1.0.03B .......................................ad. 2004 No. 399
r. 1.0.03C .......................................ad. 2004 No. 399
r. 1.0.05..........................................am. 2001 No. 319; 2003 No. 194
r. 1.0.05A.......................................ad. 2001 No. 319
am. 2002 No. 16 and 41
r. 1.0.07..........................................am. 2001 No. 319
r. 1.0.18..........................................am. 2001 No. 319
r. 1.0.20..........................................am. 2009 No. 198
r. 1.0.22..........................................ad. 2001 No. 319
Part 1.2
Part 1.2...........................................rep. 2001 No. 319
ad. 2011 No. 128
Division 1
r. 1.2.01..........................................rep. 2001 No. 319
ad. 2011 No. 128
rr. 1.2.02–1.2.32.............................rep. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
16 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Chapter 2A
Part 2A.1
r. 2A.1.01.......................................am. 2003 No. 85
rs. 2006 No. 41
Chapter 2C
Part 2C.1
Heading to Part 2C.1......................ad. 2007 No. 227
rs. 2010 No. 332
Part 2C.1 ........................................rs. 2010 No. 332
Division 2C.1.1
r. 2C.1.01 .......................................rs. 2001 No. 319
am. 2007 No. 323
rs. 2010 No. 332
Heading to Part 2C.2......................ad. 2007 No. 227
rep. 2010 No. 332
Part 2C.2 ........................................rep. 2010 No. 332
r. 2C.1.02
renumbered r. 2C.2.01 ...................2007 No. 227
r. 2C.2.01 .......................................rep. 2010 No. 332
Division 2C.1.2
r. 2C.1.02 .......................................ad. 2010 No. 332
r. 2C.1.03 .......................................ad. 2010 No. 332
am. 2012 No. 233
r. 2C.1.04 .......................................ad. 2010 No. 332
Division 2C.1.3
Heading to Part 2C.3......................rep. 2010 No. 332
Heading to Div. 2C.1.3 ..................ad. 2010 No. 332
r. 2C.3.01 .......................................ad. 2007 No. 227
renumbered r. 2C.1.05 ...................2010 No. 332
Chapter 2D
Chapt. 2D.......................................rep. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 17
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
ad. 2009 No. 51
r. 2D.1.02.......................................rep. 2001 No. 319
Part 2D.2
Part 2D.2 of Chapt. 2D ..................ad. 2009 No. 328
Division 2D.2.2
r. 2D.2.01.......................................ad. 2009 No. 328
r. 2D.2.02.......................................ad. 2009 No. 328
r. 2D.2.03.......................................ad. 2009 No. 328
Part 2D.6
Division 2D.6.1
r. 2D.6.01.......................................ad. 2009 No. 51
Part 2D.7
Part 2D.7........................................ad. 2011 No. 128
r. 2D.7.01.......................................ad. 2011 No. 128
Chapter 2E
Chapt. 2E .......................................ad. 2007 No. 198
r. 2E 1.01 .......................................ad. 2007 No. 198
Chapter 2G
Chapt. 2G.......................................ad. 2004 No. 208
Part 2G.2
Division 6
r. 2G.2.01.......................................ad. 2004 No. 208
Chapter 2K
Heading to r. 2K.2.01.....................rs. 2006 No. 57
r. 2K.2.01.......................................am. 2006 No. 57
r. 2K.2.03.......................................ad. 2006 No. 57
Chapter 2L
Chapt. 2L .......................................ad. 2010 No. 54
Part 2L.2
r. 2L.2.01 .......................................ad. 2010 No. 54
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
18 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Chapter 2M
Part 2M.3
Part 2M.3 .......................................ad. 2004 No. 208
Division 1
r. 2M.3.01 ......................................ad. 2010 No. 184
r. 2M.3.03 ......................................ad. 2004 No. 208
am. 2006 No. 126
rs. 2007 No. 193
am. No 152 and 192, 2013
Div. 9 of Part 2M.3 ........................ad. 2004 No. 399
rep. No. 152, 2013
r. 2M.3.30 ......................................ad. 2004 No. 399
rep. No. 152, 2013
r. 2M.3.31 ......................................ad. 2004 No. 399
rep. No. 152, 2013
r. 2M.3.32 ......................................ad. 2004 No. 399
rep. No. 152, 2013
Part 2M.4
r. 2M.4.01A ...................................ad. 2010 No. 184
rs. No. 125, 2013
Part 2M.4A
Part 2M.4A ....................................ad. 2012 No. 171
r. 2M.4A.01 ...................................ad. 2012 No. 171
r. 2M.4A.02 ...................................ad. 2012 No. 171
Part 2M.6
r. 2M.6.03 ......................................rep. 2007 No. 194
r. 2M.6.04 ......................................ad. 2005 No. 160
rep. 2007 No. 193
r. 2M.6.05 ......................................ad. 2006 No. 126
Chapter 2N
Chapt. 2N.......................................ad. 2003 No. 194
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 19
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Part 2N.2
r. 2N.2.01.......................................ad. 2003 No. 194
am. 2007 No. 196; 2008 No. 93
Part 2N.4
r. 2N.4.01.......................................ad. 2003 No. 194
Chapter 5
Part 5.3A
r. 5.3A.03.......................................am. 2004 No. 399
r. 5.3A.03A ....................................ad. 2012 No. 114
r. 5.3A.03AB .................................ad. 2012 No. 114
r. 5.3A.04.......................................am. 2004 No. 399; 2007 No. 325
Note to r. 5.3A.04 ..........................ad. 2004 No. 399
r. 5.3A.06A ....................................ad. 2012 No. 114
r. 5.3A.06AB .................................ad. 2012 No. 114
r. 5.3A.07.......................................am. 2004 No. 399; 2007 No. 325; 2012 No. 114
r. 5.3A.07A ....................................ad. 2012 No. 114
r. 5.3A.08.......................................rep. 2007 No. 325
r. 5.3A.09.......................................rep. 2007 No. 325
Part 5.4
r. 5.4.01A.......................................ad. 2012 No. 114
r. 5.4.02..........................................ad. 2007 No. 325
Part 5.4C
Part 5.4C........................................ad. 2012 No. 114
r. 5.4C.01 .......................................ad. 2012 No. 114
Part 5.5
Part 5.5...........................................ad. 2012 No. 114
r. 5.5.01..........................................ad. 2012 No. 114
r. 5.5.02..........................................ad. 2012 No. 114
Part 5.6
r. 5.6.06..........................................am. 2007 No. 325
r. 5.6.07..........................................am. 2007 No. 325
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
20 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 5.6.10..........................................am. 2007 No. 325
r. 5.6.11..........................................am. 2007 No. 325
r. 5.6.11A.......................................ad. 2007 No. 325
r. 5.6.12..........................................am. 2007 No. 325
r. 5.6.14..........................................am. 2007 No. 325
r. 5.6.14A.......................................rs. 2007 No. 325
am. 2012 No. 114
r. 5.6.16..........................................am. 2007 No. 325
r. 5.6.17..........................................am. 2007 No. 325
r. 5.6.18..........................................am. 2007 No. 325
r. 5.6.21..........................................am. 2007 No. 325
r. 5.6.23A.......................................ad. 2007 No. 325
r. 5.6.24..........................................am. 2007 No. 325
r. 5.6.26..........................................am. 2007 No. 325
r. 5.6.27..........................................am. 2007 No. 325
r. 5.6.28..........................................am. 2007 No. 325
r. 5.6.29..........................................rs. 2007 No. 325
r. 5.6.31..........................................am. 2007 No. 325
r. 5.6.33..........................................rs. 2007 No. 325
r. 5.6.39..........................................am. 2012 No. 114
r. 5.6.48..........................................am. 2007 No. 325; 2012 No. 114
r 5.6.53...........................................am 2007 No. 325
r. 5.6.54..........................................am 2007 No. 325
r. 5.6.55..........................................am 2007 No. 325
r. 5.6.59..........................................am. 2004 No. 399; No 325, 2007;
r. 5.6.62..........................................am. 2004 No. 399
r. 5.6.65..........................................am No 325, 2007; No. 114, 2012
r 5.6.66...........................................am 2007 No. 325
r. 5.6.69..........................................am. 2012 No. 114
r. 5.6.70B .......................................ad. 2012 No. 114
r. 5.6.73..........................................ad. 2007 No. 325
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 21
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 5.6.75..........................................ad. 2012 No. 114
Chapter 5B
Part 5B.2
r. 5B.2.05 .......................................ad. 2007 No. 199
Part 5B.3
r. 5B.3.04 .......................................am. 2001 No. 319
Chapter 5C
Part 5C.11
Division 1
r. 5C.11.01 .....................................rs. No. 172, 2012
Division 2
r. 5C.11.03A ..................................ad. 2011 No. 193
r. 5C.11.05A ..................................rs. 2003 No. 31
Chapter 5D
Part 5D.1
Part 5D.1........................................ad. 2010 No. 88
r. 5D.1.01.......................................ad. 2010 No. 88
rs. 2012 No. 43
r. 5D.1.01A ....................................ad. 2012 No. 43
r. 5D.1.02.......................................ad. 2010 No. 88
r. 5D.1.03.......................................ad. 2010 No. 88
r. 5D.1.04.......................................ad. 2010 No. 88
Part 5D.2
Part 5D.2........................................ad. 2010 No. 88
Division 2.1
r. 5D.2.01.......................................ad. 2010 No. 88
r. 5D.2.02.......................................ad. 2010 No. 88
Division 2.2
Div. 2.2 of Part 5D.2......................ad. 2010 No 88
r. 5D.2.03.......................................ad. 2010 No. 88
r. 5D.2.04.......................................ad. 2010 No. 88
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
22 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 5D.2.05.......................................ad. 2010 No. 88
r. 5D.2.06.......................................ad. 2010 No. 88
am. 2012 No. 43
r. 5D.2.07.......................................ad. 2010 No. 88
r. 5D.2.08.......................................ad. 2010 No. 88
r. 5D.2.09.......................................ad. 2010 No. 88
rep. 2012 No. 43
Part 5D.3
Part 5D.3........................................ad. 2010 No. 88
r. 5D.3.01.......................................ad. 2010 No. 88
Part 5D.4
Part 5D.4........................................ad. 2012 No. 43
r. 5D.4.01.......................................ad. 2012 No. 43
Chapter 6
Part 6.5
Part 6.5...........................................ad. 2001 No. 319
rs. 2002 No. 16
r. 6.5.01..........................................ad. 2001 No. 319
rs. 2002 No. 16 and 41
am. 2002 No. 126
Part 6.6
Part 6.6...........................................ad. 2001 No. 319
r. 6.6.01..........................................ad. 2001 No. 319
Part 6.8
Part 6.8...........................................ad. 2001 No. 319
r. 6.8.01..........................................ad. 2001 No. 319
r. 6.8.02..........................................ad. 2001 No. 319
Chapter 6A
Chapt. 6A.......................................ad. 2001 No. 319
Part 6A.1
r. 6A.1.01.......................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 23
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Chapter 6CA
Chapt. 6CA ....................................ad. 2001 No. 319
r. 6CA.1.01 ....................................ad. 2001 No. 319
rs. 2002 No. 41
Chapter 6D
Part 6D.2
r. 6D.2.03.......................................ad. 2001 No. 319
r 6D.2.04........................................ad No 209, 2014
r 6D.2.05........................................ad No 209, 2014
r 6D.2.06........................................ad No 209, 2014
Part 6D.5
Part 6D.5........................................ad. 2002 No. 16
r. 6D.5.01.......................................ad. 2002 No. 16
r. 6D.5.02.......................................ad. 2005 No. 324
Chapter 7
Chapt. 7..........................................rs. 2001 No. 319
Part 7.1
Division 1
r. 7.1.01..........................................rs. 2001 No. 319
am. 2004 No. 398; 2007 No. 323
rep. 2011 No. 193
r. 7.1.02..........................................ad. 2001 No. 319
r. 7.1.03..........................................rs. 2001 No. 319: 2002 No. 15
r. 7.1.03A.......................................ad. 2002 No. 16
r. 7.1.03B .......................................ad. 2002 No. 41
r. 7.1.04..........................................ad. 2001 No. 319
am. 2002 No. 126; 2003 No. 126; No 33, 2013; No 24, 2015
r. 7.1.04A.......................................ad. 2002 No. 16
am 2002 No. 41
r. 7.1.04B .......................................ad. 2002 No. 41
r. 7.1.04C .......................................ad. 2002 No. 41
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
24 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 7.1.04CA ....................................ad. 2007 No. 324
r. 7.1.04D.......................................ad. 2002 No. 41
r. 7.1.04E .......................................
(first occurring)
ad. 2003 No. 202
r. 7.1.04E .......................................
(second occurring)
ad. 2004 No. 25
Renumbered r. 7.1.04F...................2004 No. 36
r. 7.1.04G.......................................ad. 2005 No. 31
r. 7.1.04N.......................................ad. No. 172, 2012
r. 7.1.05..........................................ad. 2001 No. 319
r. 7.1.06..........................................ad. 2001 No. 319
am. 2002 No. 41; 2003 No. 368; No. 172, 2012
r. 7.1.06A.......................................ad. 2002 No. 41
am. 2003 No. 368
r. 7.1.06B .......................................ad. 2003 No. 31
r. 7.1.07..........................................ad. 2001 No. 319
rs. 2002 No. 16
am. 2003 No. 202
r. 7.1.07A.......................................ad. 2002 No. 16
r. 7.1.08..........................................ad. 2001 No. 319
Renumbered r. 7.1.07B ..................2003 No. 31
r. 7.1.07C .......................................ad. 2003 No. 31
r. 7.1.07D.......................................ad. 2003 No. 31
r. 7.1.07E .......................................ad. 2003 No. 282
r. 7.1.07F........................................ad. 2003 No. 282
r. 7.1.07G.......................................ad. 2003 No. 368
r. 7.1.07H.......................................ad. 2004 No. 25
r. 7.1.07I ........................................ad. 2012 No. 42
(1) exp 1 July 2012 (r 7.1.07I(2))
r 7.1.07J .........................................ad No 24, 2015
r. 7.1.08A.......................................ad. 2002 No. 16
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 25
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
am. 2002 No. 41
rep. 2003 No. 31
r. 7.1.08..........................................ad. 2003 No. 31
am. 2010 No. 89
r. 7.1.08A.......................................ad. 2012 No. 42
r. 7.1.09..........................................ad. 2001 No. 319
am. 2004 No. 398; 2012 No. 42
r. 7.1.10..........................................ad. 2001 No. 319
am. 2002 No. 16; 2007 No. 323
Division 2
r. 7.1.11..........................................ad. 2001 No. 319
am. 2003 No. 31
r. 7.1.12..........................................ad. 2001 No. 319
am. 2003 No. 31
r. 7.1.13..........................................ad. 2001 No. 319
am. 2003 No. 31
r. 7.1.14..........................................ad. 2001 No. 319
am. 2002 No. 16; 2003 No. 31
r. 7.1.15..........................................ad. 2001 No. 319
am. 2003 No. 31
r. 7.1.16..........................................ad. 2001 No. 319
am. 2003 No. 31
r. 7.1.17..........................................ad. 2001 No. 319
am. 2002 No. 16; 2003 No. 31
r. 7.1.17A.......................................ad. 2003 No. 127
r. 7.1.17B .......................................ad. 2003 No. 368
r. 7.1.17C .......................................ad. 2010 No. 88
r. 7.1.18..........................................ad. 2001 No. 319
r. 7.1.19..........................................ad. 2001 No. 319
r. 7.1.19A.......................................ad. 2010 No. 89
r. 7.1.20..........................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
26 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 7.1.21..........................................ad. 2001 No. 319
r. 7.1.22..........................................ad. 2001 No. 319
am. 2002 No. 16
r. 7.1.22A.......................................ad. 2003 No. 202
r. 7.1.23..........................................ad. 2001 No. 319
r. 7.1.24..........................................ad. 2001 No. 319
r. 7.1.25..........................................ad. 2001 No. 319
r. 7.1.26..........................................ad. 2001 No. 319
r. 7.1.27..........................................ad. 2001 No. 319
am. 2003 No. 368
r. 7.1.28..........................................ad. 2001 No. 319
Division 3
r. 7.1.28A.......................................ad. 2010 No. 88
r. 7.1.29..........................................ad. 2001 No. 319
am. 2002 No. 41
rs. 2003 No. 85
am. 2003 No. 368; 2004 No. 25; 2012 No. 46
r. 7.1.29A.......................................ad. 2004 No. 25
am. No 101 and 152, 2013
rep No 101, 2013
r. 7.1.30..........................................ad. 2002 No. 16
r. 7.1.31..........................................ad. 2002 No. 16
r. 7.1.32..........................................ad. 2002 No. 16
r. 7.1.33..........................................ad. 2002 No. 41
r. 7.1.33A.......................................ad. 2002 No. 41
r. 7.1.33B .......................................ad. 2002 No. 41
am. 2003 No 126 and 368
r. 7.1.33C .......................................ad. 2003 No. 48
rep. 2003 No. 369
r. 7.1.33D.......................................ad. 2003 No. 85
r. 7.1.33E .......................................ad. 2003 No. 282
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 27
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 7.1.33F........................................ad. 2003 No. 368
r. 7.1.33G.......................................ad. 2005 No. 324
r. 7.1.33H.......................................ad. 2005 No. 324
Division 4
Div. 4 of Part 7.1............................ad. 2002 No. 16
r. 7.1.34..........................................ad. 2002 No. 16
rs. 2003 No. 282
am. 2010 No. 89
r. 7.1.35..........................................ad. 2003 No. 126
am. 2005 No. 31
r. 7.1.35A.......................................ad. 2003 No. 368
r. 7.1.35B .......................................ad. 2012 No. 42
r. 7.1.35C .......................................ad. 2012 No. 42
Division 5
Div. 5 of Part 7.1............................ad. 2003 No. 126
r. 7.1.40..........................................ad. 2003 No. 126
am. 2003 No. 368; 2005 No. 31; 2012 No. 42
Division 6
Div. 6 of Part 7.1............................ad. No. 59, 2013
r. 7.1.50..........................................ad. No. 59, 2013
Part 7.2
Division 1
r. 7.2.01..........................................rs. 2001 No. 319
r. 7.2.02..........................................rs. 2001 No. 319
r. 7.2.03..........................................ad. 2001 No. 319
r. 7.2.04..........................................ad. 2001 No. 319
r. 7.2.05..........................................ad. 2001 No. 319
r. 7.2.06..........................................ad. 2001 No. 319
Division 2
r. 7.2.07..........................................ad. 2001 No. 319
am. 2004 No. 26; 2010 No. 210
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
28 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 7.2.08..........................................ad. 2001 No. 319
am. 2010 No. 210
Division 3
r. 7.2.09..........................................ad. 2001 No. 319
am. 2002 No. 126; 2012 No. 42
Division 4
r. 7.2.10..........................................ad. 2001 No. 319
r. 7.2.11..........................................ad. 2001 No. 319
r. 7.2.12..........................................ad. 2001 No. 319
Division 5
r. 7.2.13..........................................ad. 2001 No. 319
r. 7.2.14..........................................ad. 2001 No. 319
r. 7.2.15..........................................ad. 2001 No. 319
Division 6
Div. 6 of Part 7.2............................ad. 2002 No. 41
r. 7.2.16..........................................ad. 2002 No. 41
am. 2002 No. 126
Part 7.2A
Part 7.2A........................................ad. 2010 No. 210
Division 7.2A.1
r. 7.2A.01.......................................ad. 2010 No. 210
Division 7.2A.2
r. 7.2A.02.......................................ad. 2010 No. 210
r. 7.2A.03.......................................ad. 2010 No. 210
r. 7.2A.04.......................................ad. 2010 No. 210
r. 7.2A.05.......................................ad. 2010 No. 210
r. 7.2A.06.......................................ad. 2010 No. 210
r. 7.2A.07.......................................ad. 2010 No. 210
r. 7.2A.08.......................................ad. 2010 No. 210
r. 7.2A.09.......................................ad. 2010 No. 210
r. 7.2A.10.......................................ad. 2010 No. 210
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 29
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 7.2A.11.......................................ad. 2010 No. 210
r. 7.2A.12.......................................ad. 2010 No. 210
r. 7.2A.13.......................................ad. 2010 No. 210
r. 7.2A.14.......................................ad. 2010 No. 210
r. 7.2A.15.......................................ad. 2010 No. 210
Part 7.3
Division 1
r. 7.3.01..........................................rs. 2001 No. 319
rr. 7.3.01A, 7.3.01B .......................rep. 2001 No. 319
r. 7.3.02..........................................rs. 2001 No. 319
rr. 7.3.02B–7.3.02D .......................rep. 2001 No. 319
r. 7.3.03..........................................rs. 2001 No. 319
r. 7.3.04..........................................rs. 2001 No. 319
am. 2002 No. 41
Division 2
r. 7.3.05..........................................rs. 2001 No. 319
r. 7.3.06..........................................rs. 2001 No. 319
Division 3
r. 7.3.07..........................................rs. 2001 No. 319
am. 2002 No. 126; 2012 No. 42
r. 7.3.08..........................................rs. 2001 No. 319
am. 2002 No. 126; 2012 No. 42
Division 4
r. 7.3.09..........................................rs. 2001 No. 319
r. 7.3.10..........................................rs. 2001 No. 319
r. 7.3.10A.......................................rep. 2001 No. 319
r. 7.3.11..........................................rs. 2001 No. 319
Division 5
r. 7.3.12..........................................rs. 2001 No. 319
r. 7.3.13..........................................rs. 2001 No. 319
rr. 7.3.13A–7.3.13C .......................rep. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
30 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 7.3.14..........................................rs. 2001 No. 319
r. 7.3.14A.......................................rep. 2001 No. 319
rr. 7.3.15–7.3.18.............................rep. 2001 No. 319
Part 7.4
r. 7.4.01..........................................rs. 2001 No. 319
am. 2002 No. 16; 2004 No 26 and 398
r. 7.4.01A.......................................rep. 2001 No. 319
r. 7.4.02..........................................rs. 2001 No. 319
r. 7.4.03..........................................rs. 2001 No. 319
r. 7.4.04..........................................rs. 2001 No. 319
r. 7.4.04A.......................................rep. 2001 No. 319
rr. 7.4.05–7.4.08.............................rep. 2001 No. 319
Part 7.5
Division 1
r. 7.5.01..........................................rs. 2001 No 319
am. 2002 No 282; 2004 No 26 and 398; 2005 No 38; 2011 No 193
r. 7.5.01A.......................................ad. 2004 No. 26
r. 7.5.02..........................................ad. 2001 No. 319
r. 7.5.03..........................................ad. 2001 No. 319
am. 2002 No. 282; 2004 No 26 and 398; 2005 No. 38
r. 7.5.04..........................................ad. 2001 No. 319
am. 2002 No. 282; 2004 No 26, 36 and 398
r. 7.5.05..........................................ad. 2001 No. 319
rep. 2005 No. 38
r. 7.5.06..........................................ad. 2001 No. 319
am. 2002 No. 282; 2004 No 26 and 398
r. 7.5.07..........................................ad. 2001 No. 319
am. 2002 No. 282; 2005 No 38 and 324
r. 7.5.08..........................................ad. 2001 No. 319
am. 2002 No. 282; 2005 No. 38
r. 7.5.09..........................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 31
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
am. 2002 No. 16
r. 7.5.10..........................................ad. 2001 No. 319
r. 7.5.11..........................................ad. 2001 No. 319
rep. 2005 No. 38
r. 7.5.12..........................................ad. 2001 No. 319
am. 2002 No. 282
rep. 2005 No. 38
r. 7.5.13..........................................ad. 2001 No. 319
Division 2
r. 7.5.14..........................................ad. 2001 No. 319
Division 3
r. 7.5.15..........................................ad. 2001 No. 319
r. 7.5.16..........................................ad. 2001 No. 319
am. 2004 No. 26
r. 7.5.17..........................................ad. 2001 No. 319
Division 4
Subdivision 4.1
r. 7.5.18..........................................ad. 2001 No. 319
Subdivision 4.2
r. 7.5.19..........................................ad. 2001 No. 319
am. 2002 No. 282; 2004 No 26 and 398; 2005 No. 38
Subdivision 4.3
r. 7.5.20..........................................ad. 2001 No. 319
rep. 2005 No. 38
r. 7.5.21..........................................ad. 2001 No. 319
rep. 2005 No. 38
r. 7.5.22..........................................ad. 2001 No. 319
rep. 2005 No. 38
r. 7.5.23..........................................ad. 2001 No. 319
rep. 2005 No. 38
r. 7.5.24..........................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
32 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
am. 2002 No. 16; 2004 No 26 and 398
r. 7.5.25..........................................ad. 2001 No. 319
am. 2002 No. 16; 2004 No 26 and 398
r. 7.5.26..........................................ad. 2001 No. 319
am. 2002 No. 16; 2004 No 26 and 398
r. 7.5.27..........................................ad. 2001 No. 319
am. 2002 No. 16; 2004 No 26 and 398
r. 7.5.28..........................................ad. 2001 No. 319
am. 2005 No. 38
r. 7.5.29..........................................ad. 2001 No. 319
am. 2005 No. 38
r. 7.5.30..........................................ad. 2001 No. 319
am. 2002 No. 16; 2005 No. 38
r. 7.5.31..........................................ad. 2001 No. 319
rep. 2005 No. 38
r. 7.5.32..........................................ad. 2001 No. 319
rep. 2002 No. 282
Subdiv. 4.4 of Part 7.5 ...................rep. 2005 No. 38
r. 7.5.33..........................................ad. 2001 No. 319
rep. 2005 No. 38
r. 7.5.34..........................................ad. 2001 No. 319
rep. 2005 No. 38
r. 7.5.35..........................................ad. 2001 No. 319
rep. 2005 No. 38
r. 7.5.36..........................................ad. 2001 No. 319
rep. 2005 No. 38
r. 7.5.37..........................................ad. 2001 No. 319
rep. 2005 No. 38
r. 7.5.38..........................................ad. 2001 No. 319
rep. 2005 No. 38
r. 7.5.39..........................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 33
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
rep. 2002 No. 282
Subdiv. 4.5 of Part 7.5 ...................rep. 2005 No. 38
r. 7.5.40..........................................ad. 2001 No. 319
am. 2002 No. 282
rep. 2005 No. 38
r. 7.5.41..........................................ad. 2001 No. 319
am. 2002 No. 282
rep. 2005 No. 38
r. 7.5.42..........................................ad. 2001 No. 319
rep. 2005 No. 38
r. 7.5.43..........................................ad. 2001 No. 319
rep. 2005 No. 38
r. 7.5.44..........................................ad. 2001 No. 319
rep. 2005 No. 38
r. 7.5.45..........................................ad. 2001 No. 319
am. 2002 No. 282
rep. 2005 No. 38
r. 7.5.46..........................................ad. 2001 No. 319
am. 2002 No. 16
rep. 2005 No. 38
r. 7.5.47..........................................ad. 2001 No. 319
rep. 2002 No. 282
Subdiv. 4.6 of Part 7.5 ...................rep. 2002 No. 282
r. 7.5.48..........................................ad. 2001 No. 319
rep. 2002 No. 282
r. 7.5.49..........................................ad. 2001 No. 319
rep. 2002 No. 282
r. 7.5.50..........................................ad. 2001 No. 319
rep. 2002 No. 282
r. 7.5.51..........................................ad. 2001 No. 319
rep. 2002 No. 282
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
34 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 7.5.52..........................................ad. 2001 No. 319
am. 2002 No. 16
rep. 2002 No. 282
Subdivision 4.7
r. 7.5.53..........................................ad. 2001 No. 319
r. 7.5.54..........................................ad. 2001 No. 319
r. 7.5.55..........................................ad. 2001 No. 319
r. 7.5.56..........................................ad. 2001 No. 319
r. 7.5.57..........................................ad. 2001 No. 319
r. 7.5.58..........................................ad. 2001 No. 319
r. 7.5.59..........................................ad. 2001 No. 319
Subdivision 4.8
r. 7.5.60..........................................ad. 2001 No. 319
r. 7.5.61..........................................ad. 2001 No. 319
r. 7.5.62..........................................ad. 2001 No. 319
r. 7.5.63..........................................ad. 2001 No. 319
Subdivision 4.9
r. 7.5.64..........................................ad. 2001 No. 319
am. 2002 No. 282
r. 7.5.65..........................................ad. 2001 No. 319
am. 2002 No. 282
r. 7.5.66..........................................ad. 2001 No. 319
r. 7.5.67..........................................ad. 2001 No. 319
r. 7.5.68..........................................ad. 2001 No. 319
am. 2002 No 16 and 282; 2004 No 26 and 398
r. 7.5.69..........................................ad. 2001 No. 319
r. 7.5.70..........................................ad. 2001 No. 319
r. 7.5.71..........................................ad. 2001 No. 319
am. 2002 No. 16; 2005 No. 38
Subdivision 4.10
r. 7.5.72..........................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 35
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 7.5.73..........................................ad. 2001 No. 319
r. 7.5.74..........................................ad. 2001 No. 319
am. 2005 No. 38
r. 7.5.75..........................................ad. 2001 No. 319
am. 2002 No. 16
r. 7.5.76..........................................ad. 2001 No. 319
r. 7.5.77..........................................ad. 2001 No. 319
r. 7.5.78..........................................ad. 2001 No. 319
r. 7.5.79..........................................ad. 2001 No. 319
r. 7.5.80..........................................ad. 2001 No. 319
r. 7.5.81..........................................ad. 2001 No. 319
am. 2002 No. 282; 2004 No 26 and 398; 2005 No. 38
r. 7.5.82..........................................ad. 2001 No. 319
r. 7.5.83..........................................ad. 2001 No. 319
am. 2004 No. 26
r. 7.5.84..........................................ad. 2001 No. 319
Subdivision 4.11
r. 7.5.85..........................................ad. 2001 No. 319
rs. 2002 No. 16
am. 2004 No 26 and 398
Division 5
r. 7.5.86..........................................ad. 2001 No. 319
r. 7.5.87..........................................ad. 2001 No. 319
Heading to r. 7.5.88 .......................rs. 2002 No. 145
r. 7.5.88..........................................ad. 2001 No. 319
am. 2002 No. 145; 2010 No. 301
r. 7.5.89..........................................ad. 2001 No. 319
r. 7.5.90..........................................ad. 2001 No. 319
am. 2002 No. 145
r. 7.5.91..........................................ad. 2001 No. 319
r. 7.5.92..........................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
36 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
am. 2002 No 126 and 145
r. 7.5.93..........................................ad. 2001 No. 319
Part 7.5A
Part 7.5A........................................ad. No. 150, 2013
Division 2
Subdivision 2.1
r. 7.5A.30.......................................ad. No. 150, 2013
am No 88, 2014
(2)(a)–(i) exp 30 June 2015 (r 7.5A.30(3))
r 7.5A.50........................................ad No 191, 2013
am No 185, 2014
Subdivision 2.2
r 7.5A.101......................................ad No 191, 2013
Subdivision 2.3
r 7.5A.102......................................ad No 191, 2013
r 7.5A.103......................................ad No 191, 2013
r 7.5A.104......................................ad No 191, 2013
r 7.5A.105......................................ad No 191, 2013
r 7.5A.106......................................ad No 191, 2013
r 7.5A.107......................................ad No 191, 2013
r 7.5A.108......................................ad No 191, 2013
r 7.5A.109......................................ad No 191, 2013
r 7.5A.110......................................ad No 191, 2013
r 7.5A.111......................................ad No 191, 2013
r 7.5A.112......................................ad No 191, 2013
r 7.5A.113......................................ad No 191, 2013
r 7.5A.114......................................ad No 191, 2013
r 7.5A.115......................................ad No 191, 2013
Division 5
r 7.5A.150......................................ad No 191, 2013
r 7.5A.150A ...................................ad No 88, 2014
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 37
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
rs No 185, 2014
r 7.5A.150B ...................................ad No 88, 2014
rs No 185, 2014
r 7.5A.151......................................ad No 191, 2013
r 7.5A.200......................................ad No 191, 2013
Division 7
r 7.5A.250......................................ad No 191, 2013
Division 8
r 7.5A.270......................................ad No 191, 2013
Part 7.6
r. 7.6.01..........................................rs. 2001 No. 319
am. 2002 No 16, 41 and 53; 2003 No 85, 126, 127, 202, 282 and 368;
2004 No. 25
(1)(r) exp 11 Mar 2004 (r 7.6.01(6))
am. 2005 No. 324; 2007 No 259 and 324; 2012 No 42 and 172; No. 59,
2013; No 33, 2014
r. 7.6.01AAA .................................ad. 2010 No. 89
r. 7.6.01AA ....................................ad. 2008 No. 158
r. 7.6.01AB ....................................ad. No. 172, 2012
r. 7.6.01A.......................................ad. 2002 No. 16
r. 7.6.01B .......................................ad. 2002 No. 41
r. 7.6.01BA ....................................ad. No. 101, 2013
rep No 101, 2013
r. 7.6.01C .......................................ad. 2003 No. 369
r. 7.6.02..........................................ad. 2001 No. 319
am. 2005 No. 31; 2009 No. 386; 2010 No. 88
r. 7.6.02AAA .................................ad. 2007 No. 197
r. 7.6.02AA ....................................ad. 2004 No. 26
am. 2005 No. 31; 2007 No. 197
r. 7.6.02AB ....................................ad. 2005 No. 324
am No 102, 2014 (disallowed)
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
38 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 7.6.02AC ....................................ad. 2005 No. 324
am No 102, 2014 (disallowed)
r. 7.6.02AD ....................................ad. 2005 No. 324
am No 102, 2014 (disallowed)
r. 7.6.02AE.....................................ad. 2005 No. 324
am No 102, 2014 (disallowed)
r. 7.6.02AF.....................................ad. 2005 No. 324
am No 102, 2014 (disallowed); No 208, 2014
r. 7.6.02AG ....................................ad. 2005 No. 324
am. 2012 No. 42; No. 59, 2013
r.7.6.02AGA ..................................ad. 2012 No. 42
r. 7.6.02AH ....................................ad. 2005 No. 324
am. No. 59, 2013
r 7.6.02AI.......................................ad No 3, 2015
r. 7.6.02A.......................................ad. 2003 No. 369
am. 2012 No. 42
r. 7.6.03..........................................ad. 2001 No. 319
r. 7.6.03A.......................................ad. 2003 No. 282
r. 7.6.03B .......................................ad. 2003 No. 282
r. 7.6.04..........................................ad. 2001 No. 319
am. 2002 No 16 and 41; No 101, 2013; No 155, 2013
r. 7.6.04A.......................................ad. 2003 No. 369
am. 2005 No. 324; 2008 No. 158
r. 7.6.04B .......................................ad. 2004 No. 25
rep. 2005 No. 324
r. 7.6.05..........................................ad. 2001 No. 319
r. 7.6.06..........................................ad. 2001 No. 319
r 7.6.06A........................................ad No 3, 2015
r 7.6.06B ........................................ad No 3, 2015
r 7.6.06C ........................................ad No 3, 2015
r. 7.6.07..........................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 39
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Part 7.6A
Part 7.6A........................................ad. 2005 No. 324
r. 7.6.08..........................................ad. 2005 No. 324
Part 7.6B
Part 7.6B........................................ad. 2009 No. 387
r. 7.6.08A.......................................ad. 2009 No. 387
r. 7.6.08B .......................................ad. 2009 No. 387
r. 7.6.08C .......................................ad. 2009 No. 387
r. 7.6.08D.......................................ad. 2009 No. 387
r. 7.6.08E .......................................ad. 2009 No. 387
Part 7.7
Division 1
r. 7.7.01..........................................rs. 2001 No. 319
am. 2002 No 16 and 41; 2003 No. 282
Division 2
r. 7.7.02..........................................rs. 2001 No. 319
am. 2002 No 41 and 53; 2003 No 31, 85, 202 and 368; 2004 No. 25; 2005
No. 324; 2007 No. 324; 2008 No. 158
r. 7.7.02A.......................................ad. 2005 No. 324
r. 7.7.03..........................................ad. 2001 No. 319
r. 7.7.03A.......................................ad. 2007 No. 197
r. 7.7.04..........................................ad. 2001 No. 319
am. 2003 No. 202; 2005 No. 324; 2010 No. 88
r. 7.7.04A.......................................ad. 2005 No. 324
r. 7.7.04AA ....................................ad. 2012 No. 170
r. 7.7.04AB ....................................ad. 2012 No. 170
r. 7.7.05..........................................ad. 2001 No. 319
rs. 2003 No. 369
am. 2005 No. 324
r. 7.7.05A.......................................ad. 2002 No. 16
am. 2003 No. 85
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
40 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 7.7.05B .......................................ad. 2003 No. 85
rs. 2004 No. 25
am. 2005 No. 324; 2007 No. 324
r. 7.7.05C .......................................ad. 2004 No. 25
r. 7.7.06..........................................ad. 2001 No. 319
r. 7.7.06A.......................................ad. 2004 No. 25
r. 7.7.06B .......................................ad. 2007 No. 197
r. 7.7.07..........................................ad. 2001 No. 319
am. 2003 No. 202; 2005 No. 324; 2010 No. 88
r. 7.7.07A.......................................ad. 2005 No. 324
r. 7.7.08..........................................ad. 2001 No. 319
rs. 2003 No. 369
am. 2005 No. 324
Division 2A
Div. 2A of Part 7.7.........................ad. 2003 No. 369
r. 7.7.08A.......................................ad. 2003 No. 369
am. 2008 No. 158; 2010 No. 135
Division 2AA
Div. 2AA of Part 7.7......................ad. 2010 No. 89
r. 7.7.08B .......................................ad. 2010 No. 89
Division 2B
Div. 2B of Part 7.7 .........................ad. 2007 No. 324
r. 7.7.08C .......................................ad. 2007 No. 324
Division 3
Heading to r. 7.7.09 .......................rs. 2003 No. 369
r. 7.7.09..........................................ad. 2001 No. 319
am. 2003 No. 369
rs. 2005 No. 324
am. 2010 No. 135
r. 7.7.09A.......................................ad. 2007 No. 324
r. 7.7.09AA ....................................ad. 2010 No. 89
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 41
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 7.7.09AB ....................................ad. 2010 No. 89
r. 7.7.09B .......................................ad. 2007 No. 259
am. 2012 No. 268
r. 7.7.09BA ....................................ad. 2010 No. 89
r. 7.7.09BB.....................................ad. 2010 No. 89
r. 7.7.09BC.....................................ad. 2012 No. 170
r. 7.7.09BD ....................................ad. 2012 No. 170
r. 7.7.09C .......................................ad. 2007 No. 259
r. 7.7.10..........................................ad. 2001 No. 319
rs. 2003 No. 202
am. 2005 No. 324; 2008 No. 158
r. 7.7.10AA ....................................ad. 2005 No. 324
r. 7.7.10AAA .................................ad. 2007 No. 324
r. 7.7.10AB ....................................ad. 2005 No. 324
r. 7.7.10AC ....................................ad. 2005 No. 324
r. 7.7.10AD ....................................ad. 2005 No. 324
r. 7.7.10AE.....................................ad. 2005 No. 324
r. 7.7.10AF.....................................ad. 2005 No. 324
r. 7.7.10AG ....................................ad. 2005 No. 324
r. 7.7.10AH ....................................ad. 2005 No. 324
r. 7.7.10AI......................................ad. 2012 No. 42
r. 7.7.10A.......................................ad. 2004 No. 149
r. 7.7.10B .......................................ad. 2005 No. 324
r. 7.7.10C .......................................ad. 2005 No. 324
r. 7.7.10D.......................................ad. 2005 No. 324
r. 7.7.10E .......................................ad. 2005 No. 324
r. 7.7.11..........................................ad. 2001 No. 319
am No 202, 2003; No 149, 2004
r. 7.7.11A.......................................ad. 2004 No. 25
r. 7.7.11B .......................................ad. 2004 No. 149
r. 7.7.12..........................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
42 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
am No 202, 2003; No 149, 2004
r. 7.7.13..........................................ad. 2004 No. 149
r. 7.7.13A.......................................ad. 2004 No. 149
r. 7.7.13B .......................................ad. 2004 No. 149
Division 4
Division 4 ......................................ad. 2003 No. 369
r. 7.7.14..........................................ad. 2003 No. 369
Division 5
Division 5 ......................................ad. 2003 No. 369
r. 7.7.20..........................................ad. 2003 No. 369
r. 7.7.20A.......................................ad. 2008 No. 130
am. 2010 No. 55
Division 6
Div. 6 of Part 7.7............................ad. 2005 No. 324
r. 7.7.21..........................................ad. 2005 No. 324
rs. No. 172, 2012
Part 7.7A
Part 7.7A........................................ad. 2012 No. 170
Division 2
Div. 2 of Part 7.7A.........................ad. 2012 No. 268
Subdivision 1
Subdivision 1 heading....................rep No 102, 2014 (disallowed)
r. 7.7A.1.........................................ad. 2012 No. 268
rep No 102, 2014 (disallowed)
r 7.7A.2..........................................ad No 102, 2014 (disallowed)
r 7.7A.3..........................................ad No 102, 2014 (disallowed)
r 7.7A.4..........................................ad No 102, 2014 (disallowed)
r 7.7A.5..........................................ad No 102, 2014 (disallowed)
r 7.7A.6..........................................ad No 102, 2014 (disallowed)
r 7.7A.7..........................................ad No 102, 2014 (disallowed)
r 7.7A.8..........................................ad No 102, 2014 (disallowed)
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 43
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Division 3
Div. 3 of Part 7.7A.........................ad. 2012 No. 170
r. 7.7A.10.......................................ad. 2012 No. 170
am. No. 102, 2013; No 102, 2014 (disallowed)
r. 7.7A.11.......................................ad. 2012 No. 170
Division 4
Div. 4 of Part 7.7A.........................ad. 2012 No. 170
Subdivision 1
Heading to Subdiv. 1 .....................
of Div. 4 of Part 7.7A
ad. 2012 No. 268
r. 7.7A.12.......................................ad. 2012 No. 170
rs. 2012 No. 268
am No 102, 2014 (disallowed)
r. 7.7A.12A ....................................ad. 2012 No. 268
r. 7.7A.12B ....................................ad. 2012 No. 268
rs No 102, 2014 (disallowed); No 208, 2014
r. 7.7A.12C ....................................ad. 2012 No. 268
r. 7.7A.12D ....................................ad. 2012 No. 268
am. No. 115, 2013; No 102, 2014 (disallowed); No 208, 2014
r. 7.7A.12E.....................................ad. 2012 No. 268
r. 7.7A.12EA..................................ad. No. 151, 2013
r 7.7A.12EB...................................ad No 102, 2014 (disallowed)
r 7.7A.12EC...................................ad No 102, 2014 (disallowed)
Subdivision 2
Subdiv. 2 of Div. 4.........................
of Part 7.7A
ad. 2012 No. 268
r. 7.7A.12F.....................................ad. 2012 No. 268
r 7.7A.12FA...................................ad No 102, 2014 (disallowed)
r. 7.7A.12G ....................................ad. 2012 No. 268
r. 7.7A.12H ....................................ad. 2012 No. 268
am No 102, 2014 (disallowed)
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
44 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 7.7A.12I......................................ad. 2012 No. 268
am No 102, 2014 (disallowed)
r 7.7A.12J ......................................ad No 102, 2014 (disallowed)
r. 7.7A.13.......................................ad. 2012 No. 170
r. 7.7A.14.......................................ad. 2012 No. 170
r. 7.7A.15.......................................ad. 2012 No. 170
r 7.7A.15A.....................................ad No 102, 2014 (disallowed); No 208, 2014
r 7.7A.15B .....................................ad No 102, 2014 (disallowed); No 208, 2014
r. 7.7A.16.......................................ad. 2012 No. 234
rs. No. 151, 2013
am No 102, 2014 (disallowed); No 208, 2014
r. 7.7A.16A ....................................ad. No. 151, 2013
r. 7.7A.16B ....................................ad. No. 151, 2013
am No 102, 2014 (disallowed)
r 7.7A.16BA ..................................ad No 102, 2014 (disallowed); No 208, 2014
r. 7.7A.16C ....................................ad. No. 151, 2013
am No 102, 2014 (disallowed); No 208, 2014
r. 7.7A.16D ....................................ad. No. 151, 2013
r. 7.7A.16E.....................................ad. No. 151, 2013
r. 7.7A.16F.....................................ad. No. 151, 2013
am No 102, 2014 (disallowed); No 208, 2014
Subdivision 3
Subdiv. 3 of Div. 4.........................
of Part 7.7A
ad. No. 115, 2013
r. 7.7A.17.......................................ad. No. 115, 2013
r. 7.7A.18.......................................ad. No. 115, 2013
Division 6
Div. 6 of Part 7.7A.........................ad. No. 83, 2013
r. 7.7A.40.......................................ad. No. 83, 2013
Part 7.8
r. 7.8.01..........................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 45
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
am. 2002 No 16 and 41; 2005 No. 31; 2009 No. 70; 2010 No. 210
r. 7.8.02..........................................ad. 2001 No. 319
am. 2002 No 16 and 41; 2009 No. 70; 2010 No. 210
r. 7.8.03..........................................ad. 2001 No. 319
r. 7.8.04..........................................ad. 2001 No. 319
r. 7.8.05..........................................ad. 2001 No. 319
am. 2002 No. 41
r. 7.8.06..........................................ad. 2001 No. 319
r. 7.8.06A.......................................ad. 2010 No. 89
r. 7.8.07..........................................ad. 2001 No. 319
r. 7.8.08..........................................ad. 2001 No. 319
am. 2002 No 16 and 41
r. 7.8.08A.......................................ad. 2010 No. 89
r. 7.8.08B .......................................ad. 2010 No. 89
r. 7.8.09..........................................ad. 2010 No. 89
r. 7.8.09A.......................................ad. 2010 No. 89
r. 7.8.10..........................................ad. 2010 No. 89
r. 7.8.10A.......................................ad. 2010 No. 89
r. 7.8.09..........................................ad. 2001 No. 319
am. 2002 No. 16
rep. 2002 No. 41
r. 7.8.10..........................................ad. 2001 No. 319
rep. 2002 No. 41
r. 7.8.11..........................................ad. 2001 No. 319
r. 7.8.11A.......................................ad. 2012 No. 170
r. 7.8.12..........................................ad. 2001 No. 319
am. 2002 No. 16
r. 7.8.12A.......................................ad. No. 101, 2013
r. 7.8.13..........................................ad. 2001 No. 319
am. 2003 No. 202; No. 101, 2013
r. 7.8.13A.......................................ad. No. 101, 2013
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
46 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 7.8.14..........................................ad. 2001 No. 319
am. No. 101, 2013
r. 7.8.14A.......................................ad. 2005 No. 31
r. 7.8.14B .......................................ad. No. 101, 2013
r. 7.8.15..........................................ad. 2001 No. 319
am. 2003 No. 126
r. 7.8.16..........................................ad. 2001 No. 319
r. 7.8.17..........................................ad. 2001 No. 319
am. 2004 No. 25; 2010 No. 210
r. 7.8.18..........................................ad. 2001 No. 319
am. 2010 No. 210
r. 7.8.19..........................................ad. 2001 No. 319
r. 7.8.20..........................................ad. 2001 No. 319
am. 2002 No. 16; 2004 No. 25; 2010 No. 210
r. 7.8.20A.......................................ad. 2003 No. 31
r. 7.8.21..........................................ad. 2001 No. 319
am. 2002 No. 41; 2003 No 202 and 282; 2004 No. 25
r. 7.8.21A.......................................ad. 2005 No. 324
r. 7.8.21B .......................................ad. 2012 No. 42
r. 7.8.22..........................................ad. 2002 No. 41
am. 2002 No. 265; 2003 No. 31
r. 7.8.22A.......................................ad. 2003 No. 369
r. 7.8.22B .......................................ad. 2008 No. 194
r. 7.8.23..........................................ad. 2002 No. 41
r. 7.8.24..........................................ad. 2002 No. 41
r. 7.8.25..........................................ad. 2002 No. 41
r. 7.8.26..........................................ad. No. 172, 2012
Part 7.9
Division 1
r. 7.9.01..........................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 47
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
am. 2002 No 16 and 145; 2004 No 10 and 145; 2005 No. 31; 2007 No
102 and 324
r. 7.9.02..........................................ad. 2001 No. 319
am. 2002 No. 16
r. 7.9.02A.......................................ad. 2002 No. 16
am. 2003 No. 282
rs. 2005 No. 324
r. 7.9.02B .......................................ad. 2002 No. 16
r. 7.9.02C .......................................ad. 2003 No. 202
rep. 2003 No. 369
Division 2
Subdivision 2.1
r. 7.9.03..........................................ad. 2001 No. 319
Subdivision 2.2
r. 7.9.04..........................................ad. 2001 No. 319
rs. 2002 No. 16
am. 2002 No. 145; 2003 No 202 and 282; 2004 No. 145
Subdivision 2.3
r. 7.9.05..........................................ad. 2001 No. 319
Subdivision 2.4
Heading to Subdiv. 2.4...................
of Div. 2 of Part 7.9
rs. 2002 No. 16
r. 7.9.06..........................................ad. 2001 No. 319
rep. 2002 No. 41
r. 7.9.06A.......................................ad. 2002 No. 16
r. 7.9.06B .......................................ad. 2002 No. 16
Subdivision 2.5
r. 7.9.07..........................................ad. 2001 No. 319
am. 2002 No. 41
Subdiv. 2.6 of Div. 2......................
of Part 7.9
rep. 2004 No. 145
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
48 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 7.9.07AA ....................................ad. 2002 No. 145
rep. 2004 No. 145
Division 2A
Div. 2A of Part 7.9.........................ad. 2002 No. 16
r. 7.9.07A.......................................ad. 2002 No. 16
Division 2B
Div. 2B of Part 7.9 .........................ad. 2002 No. 16
r. 7.9.07B .......................................ad. 2002 No. 16
r. 7.9.07C .......................................ad. 2002 No. 16
am. 2002 No. 41; 2009 No. 70
Division 2BA
r 7.9.07CA .....................................ad. 2008 No. 130
Division 2C
Div. 2C of Part 7.9 .........................ad. 2003 No. 31
Heading to r. 7.9.07D.....................rs. 2003 No. 282
r. 7.9.07D.......................................ad. 2003 No. 31
r. 7.9.07E .......................................ad. 2003 No. 282
r. 7.9.07F........................................ad. 2003 No. 282
r. 7.9.07FA.....................................ad. 2005 No. 324
rs. 2010 No. 55
r. 7.9.07FB.....................................ad. 2005 No. 324
r. 7.9.07FC.....................................ad. 2005 No. 324
Division 2D
Div. 2D of Part 7.9.........................ad. 2003 No. 368
r. 7.9.07J ........................................ad. 2003 No. 368
r. 7.9.07K.......................................ad. 2005 No. 324
rs. 2007 No. 324
Division 2E
Div. 2E of Part 7.9 .........................ad. No. 155, 2013
Subdivision 2E.1
r. 7.9.07L .......................................ad. No. 155, 2013
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 49
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 7.9.07M ......................................ad. No. 155, 2013
r. 7.9.07N.......................................ad. No. 155, 2013
r. 7.9.07P........................................ad. No. 155, 2013
r. 7.9.07Q.......................................ad. No. 155, 2013
r. 7.9.07R .......................................ad. No. 155, 2013
r. 7.9.07S........................................ad. No. 155, 2013
r. 7.9.07T .......................................ad. No. 155, 2013
r. 7.9.07U.......................................ad. No. 155, 2013
r. 7.9.07V.......................................ad. No. 155, 2013
r. 7.9.07W......................................ad. No. 155, 2013
Division 3
r. 7.9.08..........................................ad. 2001 No. 319
am. 2002 No. 41; 2005 No. 31
r. 7.9.08A.......................................ad. 2002 No. 41
r. 7.9.08B .......................................ad. 2002 No. 41
r. 7.9.08C .......................................ad. 2003 No. 282
r. 7.9.08D.......................................ad. 2005 No. 31
Division 3A
Div. 3A of Part 7.9.........................ad. 2008 No. 194
r. 7.9.08E .......................................ad. 2008 No. 194
Division 4
Subdivision 4.1
r. 7.9.09..........................................ad. 2001 No. 319
am. 2002 No. 16; 2008 No. 158; 2010 No. 135
Subdivision 4.1A
Subdiv. 4.1A of Div. 4 ...................
of Part 7.9
ad. 2012 No. 42
r. 7.9.09A.......................................ad. 2012 No. 42
r. 7.9.09B .......................................ad. 2012 No. 42
r. 7.9.09C .......................................ad. 2012 No. 42
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
50 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Subdivision 4.2
Subdiv. 4.2 of Div. 4......................
of Part 7.9
ad. 2008 No. 158
r. 7.9.10..........................................ad No 319, 2001 (partially disallowed Sch 1 item 15)
rs No 16, 2002 (partially disallowed Sch 1 item 78)
ad No 158, 2008
r. 7.9.10A.......................................ad. 2008 No. 158
am 2011 No 66
r. 7.9.10B .......................................ad. 2008 No. 158
r. 7.9.10C .......................................ad. 2008 No. 158
r. 7.9.10D.......................................ad. 2008 No. 158
rs. 2008 No. 194
r. 7.9.10E .......................................ad. 2008 No. 158
am. 2008 No. 194
Subdivision 4.2A
Subdiv. 4.2A of Div. 4 ...................
of Part 7.9
ad. 2010 No. 135
r. 7.9.11..........................................ad No 319, 2001 (partially disallowed Sch 1 item 15)
am No 16, 2002 (partially disallowed Sch 1 items 79–82)
ad No 135, 2010
r. 7.9.11A.......................................ad. 2010 No. 135
r. 7.9.11B .......................................ad. 2010 No. 135
r. 7.9.11C .......................................ad. 2010 No. 135
r. 7.9.11D.......................................ad. 2010 No. 135
r. 7.9.11E .......................................ad. 2010 No. 135
am. 2011 No. 274
r. 7.9.11F........................................ad. 2010 No. 135
r. 7.9.11G.......................................ad. 2010 No. 135
r. 7.9.11H.......................................ad. 2010 No. 135
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 51
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Subdivision 4.2B
Subdiv. 4.2B of Div. 4 ...................
of Part 7.9
ad. 2010 No. 135
r. 7.9.11K.......................................ad. 2010 No. 135
am. 2011 No. 274
r. 7.9.11L .......................................ad. 2010 No. 135
r. 7.9.11LA.....................................ad. No. 26, 2013
r. 7.9.11LB.....................................ad. No. 26, 2013
r. 7.9.11M ......................................ad. 2010 No. 135
am. 2011 No. 274
r. 7.9.11N.......................................ad. 2010 No. 135
r. 7.9.11O.......................................ad. 2010 No. 135
r. 7.9.11P........................................ad. 2010 No. 135
am. 2011 No. 274
r. 7.9.11Q.......................................ad. 2010 No. 135
r. 7.9.11R .......................................ad. 2010 No. 135
Subdivision 4.2C
Subdiv. 4.2C of Div. 4 ...................
of Part 7.9
ad. 2010 No. 135
r. 7.9.11S........................................ad. 2010 No. 135
r. 7.9.11T .......................................ad. 2010 No. 135
r. 7.9.11U.......................................ad. 2010 No. 135
am. 2011 No. 274
r. 7.9.11V.......................................ad. 2010 No. 135
r. 7.9.11W......................................ad. 2010 No. 135
r. 7.9.11X.......................................ad. 2010 No. 135
am. 2011 No. 274
r. 7.9.11Y.......................................ad. 2010 No. 135
r. 7.9.11Z .......................................ad. 2010 No. 135
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
52 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Subdivision 4.3
r. 7.9.12..........................................ad. 2001 No. 319
am. 2002 No. 16; 2005 No. 31
r. 7.9.12A.......................................ad. 2002 No. 145
am. 2004 No. 145
rep. 2004 No. 145
r. 7.9.13..........................................ad. 2001 No. 319
am. 2002 No. 16
r. 7.9.13A.......................................ad. 2003 No. 31
rep. 2007 No. 324
ad. 2008 No. 194
r. 7.9.14..........................................ad. 2001 No. 319
am No 16, 2002; No 41, 2002; No 194, 2008
r. 7.9.14A.......................................ad. 2002 No. 16
Subdivision 4.4
Heading to Subdiv. 4.4...................
of Div. 4 of Part 7.9
rs. 2002 No. 16
r. 7.9.14B .......................................ad. 2002 No. 16
Division 4A
Heading to Div. 4A of....................
Part 7.9
ad. 2002 No. 16
r. 7.9.14C .......................................ad. 2002 No. 16
r. 7.9.14D.......................................ad. 2010 No. 55
r. 7.9.15..........................................ad. 2001 No. 319
am. 2003 No. 202; 2010 No. 55
r. 7.9.15A.......................................ad. 2004 No. 149
r. 7.9.15B .......................................ad. 2004 No. 149
r. 7.9.15C .......................................ad. 2004 No. 149
am. 2007 No. 259
r. 7.9.15CA ....................................ad. 2010 No. 55
r. 7.9.15D.......................................ad. 2005 No. 324
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 53
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 7.9.15DA ....................................ad. 2007 No. 259
am. 2010 No. 135
r. 7.9.15DB ....................................ad. 2007 No. 259
am. 2010 No. 135
r. 7.9.15DC ....................................ad. 2007 No. 259
am. 2010 No. 135
r. 7.9.15E .......................................ad. 2005 No. 324
r. 7.9.15F........................................ad. 2005 No. 324
r. 7.9.15FA.....................................ad. 2007 No. 259
r. 7.9.15G.......................................ad. 2005 No. 324
r. 7.9.15H.......................................ad. 2005 No. 324
r. 7.9.15I ........................................ad. 2005 No. 324
r. 7.9.16..........................................ad. 2001 No. 319
r. 7.9.16A.......................................ad. 2002 No. 41
Division 4B
Div. 4B of Part 7.9 .........................ad. 2003 No. 369
r. 7.9.16G.......................................ad. 2003 No. 369
am. No. 26, 2013
Division 4C
Div. 4C of Part 7.9 .........................ad. 2005 No. 31
Subdivision 4C.1
r. 7.9.16J ........................................ad. 2005 No. 31
r. 7.9.16JA .....................................ad. 2005 No. 139
r. 7.9.16K.......................................ad. 2005 No. 31
am. 2005 No. 139
Subdivision 4C.2
r. 7.9.16L .......................................ad. 2005 No. 31
am. 2010 No. 135
r. 7.9.16M ......................................ad. 2005 No. 31
r. 7.9.16N.......................................ad. 2005 No. 31
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
54 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Subdivision 4C.3
r. 7.9.16O.......................................ad. 2005 No. 31
Division 4D
Div. 4D of Part 7.9.........................ad. 2007 No. 324
Subdivision 4D.1
r 7.9.16T ........................................ad. 2007 No. 324
Division 5
Subdivision 5.1
r. 7.9.17..........................................ad. 2001 No. 319
Subdivision 5.2
r. 7.9.18..........................................ad. 2001 No. 319
r. 7.9.19..........................................ad. 2001 No. 319
am. 2002 No. 16; 2003 No. 282; 2004 No. 149
r. 7.9.19A.......................................ad. 2004 No. 149
r. 7.9.19B .......................................ad. 2004 No. 149
r 7.9.20...........................................ad No 319, 2001
am No 16, 2002; No 202, 2003; No 282, 2003; No 10, 2004; No 149,
2004; No 52, 2009; No 155, 2013; No 202, 2013; No 39, 2015
r. 7.9.20AA ....................................ad. 2009 No. 52
r. 7.9.20A.......................................ad. 2004 No. 149
r. 7.9.20B .......................................ad. 2004 No. 149
r. 7.9.21..........................................ad. 2001 No. 319
r. 7.9.22..........................................ad. 2001 No. 319
r. 7.9.23..........................................ad. 2001 No. 319
r. 7.9.24..........................................ad. 2001 No. 319
Subdivision 5.3
r. 7.9.25..........................................ad. 2001 No. 319
r. 7.9.26..........................................ad. 2001 No. 319
am. 2002 No. 16; 2004 No. 10
r. 7.9.27..........................................ad. 2001 No. 319
r. 7.9.28..........................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 55
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
am. 2002 No. 16
Subdivision 5.4
Heading to Subdiv. 5.4...................
of Div. 5 of Part 7.9
rs. 2002 No. 16
r. 7.9.29..........................................ad. 2001 No. 319
r. 7.9.30..........................................ad. 2001 No. 319
am. 2002 No. 16
Subdivision 5.4A
Subdiv. 5.4A of Div. 5 ...................
of Part 7.9
ad. 2010 No. 89
r. 7.9.30A.......................................ad. 2010 No. 89
r. 7.9.30B .......................................ad. 2010 No. 89
Subdivision 5.5
r. 7.9.31..........................................ad. 2001 No. 319
r. 7.9.32..........................................ad. 2001 No. 319
am. 2002 No. 16
r. 7.9.33..........................................ad. 2001 No. 319
Subdivision 5.6
r. 7.9.34..........................................ad. 2001 No. 319
r. 7.9.35..........................................ad. 2001 No. 319
r. 7.9.36..........................................ad. 2001 No. 319
r. 7.9.37..........................................ad. 2001 No. 319
am. 2009 No. 52
r. 7.9.38..........................................ad. 2001 No. 319
r. 7.9.39..........................................ad. 2001 No. 319
Subdivision 5.7
r. 7.9.40..........................................ad. 2001 No. 319
r. 7.9.41..........................................ad. 2001 No. 319
r. 7.9.42..........................................ad. 2001 No. 319
am. 2002 No. 16
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
56 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Subdivision 5.8
r. 7.9.43..........................................ad. 2001 No. 319
r. 7.9.44..........................................ad. 2001 No. 319
am. 2002 No. 41
Subdivision 5.9
r. 7.9.45..........................................ad. 2001 No. 319
am. 2002 No. 16
r. 7.9.46..........................................ad. 2001 No. 319
Subdivision 5.10
r. 7.9.47..........................................ad. 2001 No. 319
Subdivision 5.11
r. 7.9.48..........................................ad. 2001 No. 319
am. 2002 No. 16
rs. No. 155, 2013
r. 7.9.48A (first occurring) .............ad. No. 155, 2013
r. 7.9.48B (first occurring) .............ad. No. 155, 2013
r. 7.9.48C .......................................ad. No. 155, 2013
r. 7.9.48D.......................................ad. No. 155, 2013
r. 7.9.48A (second occurring) ........ad. No. 155, 2013
r. 7.9.48B (second occurring).........ad. No. 155, 2013
Subdivision 5.12
r. 7.9.49..........................................ad. 2001 No. 319
r. 7.9.50..........................................ad. 2001 No. 319
r. 7.9.51..........................................ad. 2001 No. 319
r. 7.9.52..........................................ad. 2001 No. 319
am. 2002 No. 16
r. 7.9.53..........................................ad. 2001 No. 319
r. 7.9.54..........................................ad. 2001 No. 319
r. 7.9.55..........................................ad. 2001 No. 319
r. 7.9.56..........................................ad. 2001 No. 319
r. 7.9.57..........................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 57
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 7.9.58..........................................ad. 2001 No. 319
r. 7.9.59..........................................ad. 2001 No. 319
r. 7.9.60..........................................ad. 2001 No. 319
Heading to Subdiv. 5.13.................
of Part 7.9
rep. 2003 No. 368
Division 5AA
Heading to Div. 5AA of.................
Part 7.9
ad. 2003 No. 368
r. 7.9.61..........................................ad. 2001 No. 319
renumbered r. 7.6.60A ...................2005 No. 31
r. 7.9.60B .......................................ad. 2005 No. 31
am. 2005 No. 139
Division 5AB
Div. 5AB of Part 7.9 ......................ad. 2005 No. 324
r. 7.9.61AA ....................................ad. 2005 No. 324
Division 5A
Div. 5A of Part 7.9.........................ad. 2002 No. 16
r. 7.9.61A.......................................ad. 2002 No. 16
r. 7.9.61B .......................................ad. 2002 No. 16
r. 7.9.61C .......................................ad. 2002 No. 16
rs. 2003 No. 31
Division 5B
Div. 5B of Part 7.9 .........................ad. 2002 No. 16
r. 7.9.61D.......................................ad. 2002 No. 16
am. 2002 No. 41; 2003 No. 202
Division 5C
Div. 5C of Part 7.9 .........................ad. 2012 No. 267
r. 7.9.61E .......................................ad. 2012 No. 267
Division 6
r. 7.9.62..........................................ad. 2001 No. 319
am. 2002 No 16 and 41; 2003 No 31 and 202; 2004 No. 10; 2008 No. 158
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
58 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 7.9.63..........................................ad. 2001 No. 319
r. 7.9.63A.......................................ad. 2002 No. 16
r. 7.9.63B .......................................ad. 2002 No. 16
am. 2002 No. 41; 2004 No. 25; 2009 No. 70
r. 7.9.63C .......................................ad. 2002 No. 16
am. 2010 No. 210
r. 7.9.63D.......................................ad. 2002 No. 16
r. 7.9.63E .......................................ad. 2002 No. 16
r. 7.9.63F........................................ad. 2002 No. 41
r. 7.9.63G.......................................ad. 2002 No. 41
r. 7.9.63H.......................................ad. 2002 No. 41
r. 7.9.63I ........................................ad. 2002 No. 126
Division 7
r. 7.9.64..........................................ad. 2001 No. 319
am. 2002 No 16 and 41; 2003 No. 202
r. 7.9.64A.......................................ad. 2002 No. 41
r. 7.9.65..........................................ad No. 319, 2001
am No. 41, 2002; No. 31, 2003; No 194, 2008
r. 7.9.65A.......................................ad. 2008 No. 194
r. 7.9.66..........................................ad No. 319, 2001
am No 16, 2002; No 41, 2002; No 194, 2008
r. 7.9.67..........................................ad. 2001 No. 319
am. 2002 No 16 and 41
r. 7.9.68..........................................ad. 2001 No. 319
am. 2002 No 16 and 41
r. 7.9.68A.......................................ad. 2002 No. 145
am. 2004 No. 145
rep. 2004 No. 145
r. 7.9.69..........................................ad. 2001 No. 319
am. 2002 No. 16
r. 7.9.70..........................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 59
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Division 8
r. 7.9.71..........................................ad. 2001 No. 319
am. 2002 No. 16
r. 7.9.71A.......................................ad. 2003 No. 202
r. 7.9.72..........................................ad. 2001 No. 319
am. 2004 No. 149; 2005 No. 31
r. 7.9.72A.......................................ad. 2002 No. 16
rep. 2005 No. 31
r. 7.9.73..........................................ad. 2001 No. 319
r. 7.9.74..........................................ad. 2001 No. 319
am. 2002 No 16 and 145; 2004 No. 145
r. 7.9.74A.......................................ad. 2004 No. 149
r. 7.9.74B .......................................ad. 2008 No. 158
am. 2011 No. 272
r. 7.9.75..........................................ad. 2001 No. 319
rs No 282, 2003
am. 2004 No. 149; 2005 No 31 and 139
r. 7.9.75A.......................................ad. 2002 No. 126
r. 7.9.75B .......................................ad. 2002 No. 126
r. 7.9.75BA ....................................ad. 2009 No. 52
r. 7.9.75C .......................................ad. 2004 No. 149
r. 7.9.75D.......................................ad. 2004 No. 149
r. 7.9.76..........................................ad. 2001 No. 319
r. 7.9.77..........................................ad. 2001 No. 319
am. 2009 No. 386
r. 7.9.78..........................................ad. 2001 No. 319
am. 2003 No. 202
r. 7.9.79..........................................ad. 2001 No. 319
rep. 2009 No. 12
r. 7.9.80..........................................ad. 2001 No. 319
rep. 2005 No. 324
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
60 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 7.9.80A.......................................ad. 2002 No. 16
rep. 2009 No. 12
r. 7.9.80B .......................................ad. 2003 No. 282
r. 7.9.80C .......................................ad. 2003 No. 368
rep. 2005 No. 324
r. 7.9.80D.......................................ad. 2003 No. 368
rep. 2005 No. 324
Division 9
Div. 9 of Part 7.9............................ad. 2002 No. 16
r. 7.9.81..........................................ad. 2002 No. 16
r. 7.9.82..........................................ad. 2002 No. 16
Div. 10 of Part 7.9..........................ad. 2002 No. 16
rep. 2003 No. 369
r. 7.9.83..........................................ad. 2002 No. 16
rep. 2003 No. 369
Division 11
Div. 11 of Part 7.9..........................ad. 2002 No. 16
r. 7.9.84..........................................ad. 2002 No. 16
r. 7.9.85..........................................ad. 2002 No. 16
r. 7.9.86..........................................ad. 2002 No. 16
r. 7.9.87..........................................ad. 2002 No. 16
r. 7.9.88..........................................ad. 2002 No. 16
am. 2003 No. 368
r. 7.9.89..........................................ad. 2002 No. 16
am. 2003 No. 368
r. 7.9.90..........................................ad. 2002 No. 16
r. 7.9.91..........................................ad. 2002 No. 16
r. 7.9.92..........................................ad. 2002 No. 16
r. 7.9.93..........................................ad. 2002 No. 16
am. 2003 No. 368
r. 7.9.94..........................................ad. 2002 No. 16
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 61
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Division 12
Div. 12 of Part 7.9..........................ad. 2003 No. 127
r. 7.9.95..........................................ad. 2003 No. 127
Division 13
Div. 13 of Part 7.9..........................ad. 2003 No. 369
r. 7.9.96..........................................ad. 2003 No. 369
r. 7.9.97..........................................ad. 2005 No. 31
r. 7.9.97A.......................................ad. 2009 No. 103
Division 14
Div. 14 of Part 7.9..........................ad. 2005 No. 324
r. 7.9.98..........................................ad. 2005 No. 324
r. 7.9.98A.......................................ad. No. 172, 2012
Division 15
Div. 15 of Part 7.9..........................ad. 2009 No. 327
r. 7.9.99..........................................ad. 2009 No. 327
rs. 2009 No. 327
r. 7.9.100........................................ad. 2009 No. 327
am. 2009 No. 327; 2011 No. 193
r. 7.9.100A.....................................ad. 2009 No. 327
r. 7.9.101........................................ad. 2009 No. 327
am. 2011 No. 193
r. 7.9.102........................................ad. 2009 No. 327
am. 2009 No. 327
Part 7.10
Part 7.10.........................................ad. 2002 No. 16
r. 7.10.01........................................rep. 2001 No. 319
ad. 2002 No. 16
r. 7.10.02........................................ad. 2006 No. 102
am. 2012 No. 247; No. 25, 2013; No 33 and 88, 2014
rs No 185, 2014
r 7.10.03.........................................ad No 33, 2014
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
62 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Part 7.11
Division 1
r. 7.11.01........................................rs. 2001 No. 319
am. 2012 No. 43
r. 7.11.02........................................ad. 2001 No. 319
rep. 2012 No. 43
r. 7.11.03........................................ad. 2001 No. 319
r. 7.11.04........................................ad. 2001 No. 319
r. 7.11.05........................................ad. 2001 No. 319
r. 7.11.06........................................ad. 2001 No. 319
r. 7.11.07........................................ad. 2001 No. 319
r. 7.11.08........................................ad. 2001 No. 319
Division 2
r. 7.11.09........................................ad. 2001 No. 319
Division 3
r. 7.11.10........................................ad. 2001 No. 319
r. 7.11.11........................................ad. 2001 No. 319
r. 7.11.12........................................ad. 2001 No. 319
rs. 2012 No. 43
r. 7.11.13........................................ad. 2001 No. 319
rs. 2012 No. 43
r. 7.11.14........................................ad. 2001 No. 319
r. 7.11.15........................................ad. 2001 No. 319
r. 7.11.16........................................ad. 2001 No. 319
r. 7.11.17........................................ad. 2001 No. 319
r. 7.11.18........................................ad. 2001 No. 319
r. 7.11.19........................................ad. 2001 No. 319
r. 7.11.20........................................ad. 2001 No. 319
r. 7.11.21........................................ad. 2001 No. 319
am. 2012 No. 43
r. 7.11.22........................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 63
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
rs. 2004 No. 398
am. 2007 No. 323
Division 4
r. 7.11.23........................................ad. 2001 No. 319
r. 7.11.24........................................ad. 2001 No. 319
r. 7.11.25........................................ad. 2001 No. 319
r. 7.11.26........................................ad. 2001 No. 319
r. 7.11.27........................................ad. 2001 No. 319
r. 7.11.28........................................ad. 2001 No. 319
r. 7.11.29........................................ad. 2001 No. 319
r. 7.11.30........................................ad. 2001 No. 319
am. 2002 No. 282
r. 7.11.31........................................ad. 2001 No. 319
am. 2002 No. 282
r. 7.11.32........................................ad. 2001 No. 319
am. 2002 No. 282
r. 7.11.33........................................ad. 2001 No. 319
r. 7.11.34........................................ad. 2001 No. 319
r. 7.11.35........................................ad. 2001 No. 319
r. 7.11.36........................................ad. 2001 No. 319
r. 7.11.37........................................ad. 2001 No. 319
r. 7.11.38........................................ad. 2001 No. 319
r. 7.11.39........................................ad. 2001 No. 319
Division 5
r. 7.11.40........................................ad. 2001 No. 319
am. 2012 No. 43
r. 7.11.41........................................ad. 2001 No. 319
r. 7.11.42........................................ad. 2001 No. 319
Division 6
r. 7.11.43........................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
64 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Part 7.12
r. 7.12.01........................................ad. 2001 No. 319
rr. 7.13.01–7.13.03.........................rep. 2001 No. 319
rr. 7.14.01, 7.14.02.........................rep. 2001 No. 319
r. 7.15.01........................................rep. 2001 No. 319
Chapter 8
Chapt. 8..........................................rep. 2001 No. 319
ad. 2008 No. 94
Part 8.1
r. 8.1.01..........................................rep. 2001 No. 319
ad. 2008 No. 94
am No 175, 2014
r. 8.1.01A.......................................rep. 2001 No. 319
r. 8.1.02..........................................rep. 2001 No. 319
ad. 2008 No. 94
am No 175, 2014
r. 8.1.03..........................................ad. 2008 No. 94
Part 8.2
Division 1
r. 8.2.01..........................................rep. 2001 No. 319
ad. 2008 No. 94
am No 175, 2014
r. 8.2.02..........................................rep. 2001 No. 319
ad. 2008 No. 94
am. 2010 No. 301; No 175, 2014
r. 8.2.03..........................................rep. 2001 No. 319
ad. 2008 No. 94
r. 8.2.04..........................................ad. 2008 No. 94
am No 190, 2013
rr. 8.3.01–8.3.06.............................rep. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 65
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Division 4
r. 8.4.01..........................................rep. 2001 No. 319
ad. 2008 No. 94
rr. 8.4.01A, 8.4.01B .......................rep. 2001 No. 319
r. 8.4.02..........................................rep. 2001 No. 319
ad. 2008 No. 94
r. 8.4.03..........................................rep. 2001 No. 319
rr. 8.4.03A, 8.4.03B .......................rep. 2001 No. 319
r. 8.4.04..........................................rep. 2001 No. 319
r. 8.6.01..........................................rep. 2001 No. 319
rr. 8.7.01–8.7.03.............................rep. 2001 No. 319
Chapter 9
Part 9.1
r 9.1.01...........................................am No 319, 2001;No 54, 2010; No 3, 2015
r 9.1.02...........................................am No 319, 2001; No 198, No 325, 2007; No 54, 2010; No 3, 2015
Part 9.2
Division 2
Heading to Div. 2 of ......................
Part 9.2
ad. 2004 No. 208
r. 9.2.01..........................................rs. 2004 No. 208
r. 9.2.02..........................................rs. 2004 No. 208
r. 9.2.03..........................................rs. 2004 No. 208
am. 2011 No. 142
r. 9.2.04..........................................rs. 2004 No. 208
rep. 2007 No. 325
r. 9.2.05..........................................rep. 2009 No. 198
r. 9.2.06..........................................rep. 2009 No. 198
r. 9.2.07..........................................rep. 2009 No. 198
Division 2A
Div. 2A of Part 9.2.........................ad. 2004 No. 208
r. 9.2.08..........................................ad. 2004 No. 208
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
66 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Part 9.2A
Part 9.2A........................................ad. 2004 No. 208
Division 1
r. 9.2A.01.......................................ad. 2004 No. 208
r. 9.2A.03.......................................ad. 2004 No. 208
Part 9.4
r. 9.4.03..........................................ad. 2003 No. 194
Part 9.4A
r. 9.4A.01.......................................am. 2001 No. 319
r. 9.4A.02.......................................am. 2001 No. 319
Part 9.7
Part 9.7...........................................ad. No. 117, 2013
r. 9.7.01..........................................ad. No. 117, 2013
Part 9.12
Part 9.12.........................................ad. 2002 No. 16
Heading to r. 9.12.01 .....................rs. 2002 No. 41
r. 9.12.01........................................ad. 2002 No. 16
r. 9.12.02........................................ad. 2002 No. 41
rep. 2002 No. 145
ad. 2002 No. 182
am. 2007 No. 364
r. 9.12.03........................................ad. 2002 No. 41
rep. 2002 No. 145
ad. 2003 No. 367
r. 9.12.04 (first occurring)..............ad. No. 83, 2013
r. 9.12.04........................................
(second occurring)
ad. 2002 No. 41
rep. 2002 No. 145
ad. No. 59, 2013
r 9.12.05.........................................ad No 33, 2014
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 67
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Chapter 10
Part 10.2
Part 10.2.........................................ad. 2001 No. 319
Heading to Part 10.2 ......................rs. 2003 No. 369
Division 1
r. 10.2.01........................................ad. 2001 No. 319
r. 10.2.02........................................ad. 2001 No. 319
rs. 2002 No. 16
r. 10.2.02A.....................................ad. 2002 No. 41
r. 10.2.02B .....................................ad. 2002 No. 41
Division 1A
Div. 1A of Part 10.2.......................ad. 2002 No. 41
r. 10.2.02C .....................................ad. 2002 No. 41
am. 2002 No. 53
Division 2
Subdivision 2.1
r. 10.2.03........................................ad. 2001 No. 319
r. 10.2.04........................................ad. 2001 No. 319
r. 10.2.05........................................ad. 2001 No. 319
r. 10.2.06........................................ad. 2001 No. 319
Subdivision 2.2
r. 10.2.07........................................ad. 2001 No. 319
Division 3
r. 10.2.08........................................ad. 2001 No. 319
r. 10.2.09........................................ad. 2001 No. 319
r. 10.2.10........................................ad. 2001 No. 319
r. 10.2.11........................................ad. 2001 No. 319
Division 4
r. 10.2.12........................................ad. 2001 No. 319
r. 10.2.13........................................ad. 2001 No. 319
r. 10.2.14........................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
68 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 10.2.15........................................ad. 2001 No. 319
r. 10.2.16........................................ad. 2001 No. 319
r. 10.2.17........................................ad. 2001 No. 319
r. 10.2.18........................................ad. 2001 No. 319
Division 5
r. 10.2.19........................................ad. 2001 No. 319
r. 10.2.20........................................ad. 2001 No. 319
Division 5A
Div. 5A of Part 10.2.......................ad. 2002 No. 53
r. 10.2.20A.....................................ad. 2002 No. 53
Division 5B
Div. 5B of Part 10.2 .......................ad. 2002 No. 126
r. 10.2.20B .....................................ad. 2002 No. 126
Division 6
r. 10.2.21........................................ad. 2001 No. 319
r. 10.2.22........................................ad. 2001 No. 319
Division 7
r. 10.2.23........................................ad. 2001 No. 319
r. 10.2.24........................................ad. 2001 No. 319
Division 8
Heading to Div. 8 of ......................
Part 10.2
rs. 2002 No. 145
r. 10.2.25........................................ad. 2001 No. 319
am. 2002 No. 16
r. 10.2.26........................................ad. 2001 No. 319
am. 2002 No. 16; 2005 No. 38
r. 10.2.27........................................ad. 2001 No. 319
am. 2002 No. 16; 2005 No. 38
r. 10.2.27A.....................................ad. 2002 No. 145
Division 9
r. 10.2.28........................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 69
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
am. 2002 No. 16
r. 10.2.29........................................ad. 2001 No. 319
am. 2002 No. 16
r. 10.2.29A.....................................ad. 2002 No. 16
r. 10.2.30........................................ad. 2001 No. 319
am. 2002 No. 16
Division 10
r. 10.2.31........................................ad. 2001 No. 319
r. 10.2.32........................................ad. 2001 No. 319
Division 11
r. 10.2.33........................................ad. 2001 No. 319
am. 2002 No. 16
Division 12
r. 10.2.34........................................ad. 2001 No. 319
Division 13
r. 10.2.35........................................ad. 2001 No. 319
r. 10.2.35A.....................................ad. 2003 No. 31
r. 10.2.36........................................ad. 2001 No. 319
rs. 2003 No. 31
r. 10.2.37........................................ad. 2001 No. 319
am. 2002 No. 16; 2003 No. 31
r. 10.2.38........................................ad. 2001 No. 319
am. 2002 No 16 and 41; 2003 No. 31
r. 10.2.39........................................ad. 2001 No. 319
r. 10.2.40........................................ad. 2001 No. 319
r. 10.2.40A.....................................ad. 2002 No. 53
am. 2002 No. 126
r. 10.2.41........................................ad. 2001 No. 319
am. 2002 No. 16
r. 10.2.42........................................ad. 2001 No. 319
r. 10.2.43........................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
70 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 10.2.44........................................ad. 2001 No. 319
rep. 2007 No. 197
r. 10.2.44A.....................................ad. 2002 No. 41
rs. 2003 No. 31
am. 2003 No. 202
r. 10.2.45........................................ad. 2001 No. 319
rep. 2007 No. 197
r. 10.2.46........................................ad. 2001 No. 319
am. 2002 No. 16
(1)(a) exp 11 Mar 2004 (r 10.2.46(2))
r. 10.2.46A.....................................ad. 2002 No. 16
(1)(a), (2)(a), (3)(a), (4)(a) exp 11 Mar 2004 (r 10.2.46A(5))
r. 10.2.47........................................ad. 2001 No. 319
r. 10.2.47A.....................................ad. 2002 No. 41
Division 14
Heading to Div. 14 of.....................
Part 10.2
rs. 2002 No. 16
r. 10.2.48........................................ad. 2001 No. 319
r. 10.2.48A.....................................ad. 2003 No. 126
r. 10.2.49........................................ad. 2001 No. 319
r. 10.2.50........................................ad. 2001 No. 319
am. 2002 No. 16
r. 10.2.50A.....................................ad. 2002 No. 41
(2) exp 11 Mar 2004 (r 10.2.50A(3))
Division 15
r. 10.2.51........................................ad. 2001 No. 319
am. 2003 No. 282
r. 10.2.52........................................ad. 2001 No. 319
am. 2002 No. 16
r. 10.2.52A.....................................ad. 2002 No. 16
am. 2002 No. 41
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 71
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 10.2.53........................................ad. 2001 No. 319
am. 2002 No. 16
r. 10.2.54........................................ad. 2001 No. 319
am. 2002 No. 16
r. 10.2.55........................................ad. 2001 No. 319
am. 2002 No. 16
r. 10.2.56........................................ad. 2001 No. 319
r. 10.2.57........................................ad. 2001 No. 319
r. 10.2.58........................................ad. 2001 No. 319
r. 10.2.59........................................ad. 2001 No. 319
r. 10.2.60........................................ad. 2001 No. 319
r. 10.2.61........................................ad. 2001 No. 319
r. 10.2.62........................................ad. 2001 No. 319
r. 10.2.63........................................ad. 2001 No. 319
r. 10.2.64........................................ad. 2001 No. 319
r. 10.2.65........................................ad. 2001 No. 319
r. 10.2.66........................................ad. 2001 No. 319
r. 10.2.67........................................ad. 2001 No. 319
r. 10.2.68........................................ad. 2001 No. 319
r. 10.2.69........................................ad. 2001 No. 319
r. 10.2.70........................................ad. 2001 No. 319
am. 2002 No. 16
r. 10.2.71........................................ad. 2001 No. 319
am. 2002 No 16 and 41
r. 10.2.72........................................ad. 2001 No. 319
r. 10.2.73........................................ad. 2001 No. 319
r. 10.2.73A.....................................ad. 2002 No. 41
r. 10.2.73B .....................................ad. 2002 No. 41
Division 16
r. 10.2.74........................................ad. 2001 No. 319
am. 2002 No 16 and 41
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
72 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 10.2.75........................................ad. 2001 No. 319
am. 2002 No. 41
r. 10.2.76........................................ad. 2001 No. 319
r. 10.2.77........................................ad. 2001 No. 319
rs. 2002 No. 41
r. 10.2.78........................................ad. 2001 No. 319
am. 2002 No. 16
r. 10.2.79........................................ad. 2001 No. 319
am. 2002 No 16 and 41; 2003 No. 368
r. 10.2.80........................................ad. 2001 No. 319
r. 10.2.81........................................ad. 2001 No. 319
rs. 2003 No. 369
r. 10.2.82........................................ad. 2001 No. 319
am. 2002 No. 16
r. 10.2.83........................................ad. 2001 No. 319
r. 10.2.84........................................ad. 2001 No. 319
r. 10.2.85........................................ad. 2001 No. 319
r. 10.2.86........................................ad. 2001 No. 319
r. 10.2.87........................................ad. 2001 No. 319
am. 2002 No. 16
r. 10.2.87A.....................................ad. 2003 No. 31
Division 17
r. 10.2.88........................................ad. 2001 No. 319
r. 10.2.89........................................ad. 2001 No. 319
r. 10.2.90........................................ad. 2001 No. 319
am. 2002 No. 16
r. 10.2.91........................................ad. 2001 No. 319
Division 18
r. 10.2.92........................................ad. 2001 No. 319
am. 2002 No. 16
r. 10.2.93........................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 73
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
am. 2002 No. 16
r. 10.2.94........................................ad. 2001 No. 319
am. 2002 No. 16
r. 10.2.94A.....................................ad. 2002 No. 41
r. 10.2.94B .....................................ad. 2002 No. 41
r. 10.2.95........................................ad. 2001 No. 319
am. 2002 No. 16
r. 10.2.96........................................ad. 2001 No. 319
r. 10.2.97........................................ad. 2001 No. 319
r. 10.2.98........................................ad. 2001 No. 319
r. 10.2.98A.....................................ad. 2002 No. 16
Division 19
r. 10.2.99........................................ad. 2001 No. 319
Division 20
r. 10.2.100......................................ad. 2001 No. 319
r. 10.2.101......................................ad. 2001 No. 319
am. 2002 No. 16
r. 10.2.102......................................ad. 2001 No. 319
am. 2002 No. 41
r. 10.2.103......................................ad. 2001 No. 319
r. 10.2.104......................................ad. 2001 No. 319
Division 21
r. 10.2.105......................................ad. 2001 No. 319
r. 10.2.106......................................ad. 2001 No. 319
r. 10.2.107......................................ad. 2001 No. 319
r. 10.2.108......................................ad. 2001 No. 319
r. 10.2.109......................................ad. 2001 No. 319
r. 10.2.110......................................ad. 2001 No. 319
r. 10.2.111......................................ad. 2001 No. 319
r. 10.2.112......................................ad. 2001 No. 319
r. 10.2.113......................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
74 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 10.2.114......................................ad. 2001 No. 319
r. 10.2.115......................................ad. 2001 No. 319
Division 22
r. 10.2.116......................................ad. 2001 No. 319
r. 10.2.117......................................ad. 2001 No. 319
Division 23
r. 10.2.118......................................ad. 2001 No. 319
Division 24
r. 10.2.119......................................ad. 2001 No. 319
Division 24A
Div. 24A of Part 10.2.....................ad. 2002 No. 16
r. 10.2.119A...................................ad. 2002 No. 16
r. 10.2.119B ...................................ad. 2002 No. 41
r. 10.2.119C ...................................ad. 2002 No. 41
Division 25
Div. 25 of Part 10.2........................ad. 2001 No. 319
r. 10.2.120......................................ad. 2001 No. 319
Division 25A
Div. 25A of Part 10.2.....................ad. 2002 No. 16
r. 10.2.120A...................................ad. 2002 No. 16
Division 25B
Div. 25B of Part 10.2 .....................ad. 2002 No. 16
r. 10.2.120B ...................................ad. 2002 No. 16
am. 2002 No. 41
Division 26
r. 10.2.121......................................ad. 2001 No. 319
Division 27
r. 10.2.122......................................ad. 2001 No. 319
rep. 2002 No. 16
ad. 2002 No. 41
r. 10.2.123......................................ad. 2001 No. 319
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 75
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 10.2.124......................................ad. 2001 No. 319
rs. 2002 No. 16
am. 2002 No. 41
r. 10.2.125......................................ad. 2001 No. 319
r. 10.2.126......................................ad. 2001 No. 319
r. 10.2.127......................................ad. 2001 No. 319
r. 10.2.128......................................ad. 2001 No. 319
r. 10.2.129......................................ad. 2001 No. 319
r. 10.2.130......................................ad. 2001 No. 319
r. 10.2.131......................................ad. 2001 No. 319
r. 10.2.132......................................ad. 2001 No. 319
r. 10.2.133......................................ad. 2001 No. 319
r. 10.2.134......................................ad. 2001 No. 319
r. 10.2.135......................................ad. 2001 No. 319
Division 27A
Div. 27A of Part 10.2.....................ad. 2002 No. 41
r. 10.2.135A...................................ad. 2002 No. 41
Division 28
r. 10.2.136......................................ad. 2001 No. 319
r. 10.2.137......................................ad. 2001 No. 319
r. 10.2.138......................................ad. 2001 No. 319
am. 2002 No. 41
Division 29
Div. 29 of Part 10.2........................ad. 2002 No. 16
r. 10.2.139......................................ad. 2002 No. 16
r. 10.2.140......................................ad. 2002 No. 16
r. 10.2.141......................................ad. 2002 No. 16
r. 10.2.142......................................ad. 2002 No. 16
r. 10.2.143......................................ad. 2002 No. 16
r. 10.2.144......................................ad. 2002 No. 16
r. 10.2.145......................................ad. 2002 No. 16
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
76 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
r. 10.2.146......................................ad. 2002 No. 16
am. 2002 No. 41
Division 30
Div. 30 of Part 10.2........................ad. 2002 No. 16
r. 10.2.147......................................ad. 2002 No. 16
Heading to r. 10.2.148....................rs. 2002 No. 41
r. 10.2.148......................................ad No. 16, 2002
am No. 41, 2002
r. 10.2.149......................................ad. 2002 No. 16
r. 10.2.150......................................ad. 2002 No. 16
r. 10.2.151......................................ad. 2002 No. 16
am. 2002 No. 41
r. 10.2.152......................................ad. 2002 No. 16
r. 10.2.153......................................ad. 2002 No. 16
r. 10.2.154......................................ad. 2002 No. 16
r. 10.2.155......................................ad. 2002 No. 16
r. 10.2.156......................................ad. 2002 No. 16
am. 2002 No. 41
r. 10.2.157......................................ad. 2002 No. 16
r. 10.2.158......................................ad. 2002 No. 16
r. 10.2.159......................................ad. 2002 No. 16
r. 10.2.160......................................ad. 2002 No. 16
r. 10.2.161......................................ad. 2002 No. 16
r. 10.2.162......................................ad. 2002 No. 16
r. 10.2.163......................................ad. 2002 No. 16
r. 10.2.164......................................ad. 2002 No. 16
r. 10.2.165......................................ad. 2002 No. 16
r. 10.2.166......................................ad. 2002 No. 16
r. 10.2.167......................................ad. 2002 No. 16
r. 10.2.168......................................ad. 2002 No. 16
r. 10.2.169......................................ad. 2002 No. 16
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 77
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
am. 2002 No. 41
r. 10.2.170......................................ad. 2002 No. 16
Division 31
Div. 31 of Part 10.2........................ad. 2002 No. 16
r. 10.2.171......................................ad. 2002 No. 16
r. 10.2.172......................................ad. 2002 No. 16
r. 10.2.173......................................ad. 2002 No. 16
r. 10.2.174......................................ad. 2002 No. 16
r. 10.2.175......................................ad. 2002 No. 16
Division 32
Div. 32 of Part 10.2........................ad. 2002 No. 16
r. 10.2.176......................................ad. 2002 No. 16
r. 10.2.177......................................ad. 2002 No. 16
r. 10.2.178......................................ad. 2002 No. 16
r. 10.2.179......................................ad. 2002 No. 16
Division 33
Div. 33 of Part 10.2........................ad. 2002 No. 16
r. 10.2.180......................................ad. 2002 No. 16
r. 10.2.181......................................ad. 2002 No. 16
r. 10.2.182......................................ad. 2002 No. 16
r. 10.2.183......................................ad. 2002 No. 16
r. 10.2.184......................................ad. 2002 No. 16
r. 10.2.185......................................ad. 2002 No. 16
r. 10.2.186......................................ad. 2002 No. 16
r. 10.2.187......................................ad. 2002 No. 16
r. 10.2.188......................................ad. 2002 No. 16
r. 10.2.189......................................ad. 2002 No. 16
r. 10.2.190......................................ad. 2002 No. 16
r. 10.2.191......................................ad. 2002 No. 16
r. 10.2.192......................................ad. 2002 No. 16
r. 10.2.193......................................ad. 2002 No. 16
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
78 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Division 34
Div. 34 of Part 10.2........................ad. 2002 No. 16
r. 10.2.194......................................ad. 2002 No. 16
Division 35
Div. 35 of Part 10.2........................ad. 2002 No. 16
r. 10.2.195......................................ad. 2002 No. 16
Division 36
Div. 36 of Part 10.2........................ad. 2002 No. 16
r. 10.2.196......................................ad. 2002 No. 16
Division 37
Div. 37 of Part 10.2........................ad. 2002 No. 16
r. 10.2.197......................................ad. 2002 No. 16
am 2002 No. 41
r. 10.2.198......................................ad. 2002 No. 16
am 2002 No. 41
Division 38
Div. 38 of Part 10.2........................ad. 2002 No. 16
r. 10.2.199......................................ad. 2002 No. 16
Division 39
Div. 39 of Part 10.2........................ad. 2002 No. 16
r. 10.2.200......................................ad. 2002 No. 16
am. 2002 No. 41
Division 40
Div. 40 of Part 10.2........................ad. 2002 No. 16
r. 10.2.201......................................ad. 2002 No. 16
am. 2002 No. 126
r. 10.2.201A...................................ad. 2002 No. 126
Division 41
Div. 41 of Part 10.2........................ad. 2002 No. 16
r. 10.2.202......................................ad. 2002 No. 16
am. 2003 No. 368
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 79
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Division 42
Div. 42 of Part 10.2........................ad. 2002 No. 16
r. 10.2.203......................................ad. 2002 No. 16
Division 43
Div. 43 of Part 10.2........................ad. 2002 No. 16
r. 10.2.204......................................ad. 2002 No. 16
Division 44
Div. 44 of Part 10.2........................ad. 2002 No. 16
r. 10.2.205......................................ad. 2002 No. 16
Division 45
Div. 45 of Part 10.2........................ad. 2002 No. 16
r. 10.2.206......................................ad. 2002 No. 16
am. 2002 No. 41
r. 10.2.207......................................ad. 2002 No. 16
rs. 2002 No. 41
Division 46
Div. 46 of Part 10.2........................ad. 2002 No. 16
r. 10.2.208......................................ad. 2002 No. 16
r. 10.2.209......................................ad. 2002 No. 16
Division 47
Div. 47 of Part 10.2........................ad. 2002 No. 41
r. 10.2.210......................................ad. 2002 No. 41
Division 48
Div. 48 of Part 10.2........................ad. 2002 No. 41
r. 10.2.211......................................ad. 2002 No. 41
Division 49
Div. 49 of Part 10.2........................ad. 2002 No. 41
r. 10.2.212......................................ad. 2002 No. 41
Division 50
Div. 50 of Part 10.2........................ad. 2003 No. 85
r. 10.2.213......................................ad. 2003 No. 85
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
80 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Div. 51 of Part 10.2........................ad. 2003 No. 369
rep. 2005 No. 324
r. 10.2.214......................................ad. 2003 No. 369
rep. 2005 No. 324
Division 52
Div. 52 of Part 10.2........................ad. 2004 No. 26
r. 10.2.215......................................ad. 2004 No. 26
Part 10.5
Part 10.5.........................................ad No. 208, 2004
r 10.5.01.........................................ad No. 208, 2004
am No. 399, 2004; No. 126, 2004
Part 10.15
Part 10.14 heading .........................rep No 193, 2011
Part 10.15 heading .........................ad No 193, 2011
r 10.14.01 heading .........................rep No 193, 2011
r 10.15.01 heading .........................ad No 193, 2011
r 10.14.02.......................................ad No 210, 2010
renum No 193, 2011
r 10.15.02 (prev r10.14.02) ............renum No 193, 2011
r 10.14.03.......................................ad No 210, 2010
r 10.15.03 (prev r 10.14.03) ...........renum No 193, 2011
r 10.14.04.......................................ad No 210, 2010
r 10.15.04 (prev r 10.14.04) ...........renum No 193, 2011
r 10.14.05.......................................ad No 210, 2010
r. 10.15.05 (prev r 10.14.05) ..........renum No 193, 2011
r 10.14.06.......................................ad No 210, 2010
r. 10.15.06 (prev r 10.14.06) ..........renum No 193, 2011
Part 10.18
Part 10.18.......................................ad No 170, 2012
r 10.18.01.......................................ad No 170, 2012
rep 1 July 2013 (r 10.18.01(3))
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 81
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Part 10.19
Part 10.19.......................................ad No 155, 2013
r 10.19.01.......................................ad No 155, 2013
Part 10.20
Part 10.20.......................................ad No 3, 2015
Division 1
r 10.20.01.......................................ad No 3, 2015
r 10.20.02.......................................ad No 3, 2015
r 10.20.03.......................................ad No 3, 2015
Division 2
r 10.20.04.......................................ad No 3, 2015
Division 3
r 10.20.05.......................................ad No 3, 2015
r 10.20.06.......................................ad No 3, 2015
r 10.20.07.......................................ad No 3, 2015
r 10.20.08.......................................ad No 3, 2015
r 10.20.09.......................................ad No 3, 2015
r 10.20.10.......................................ad No 3, 2015
r 10.20.11.......................................ad No 3, 2015
r 10.20.12.......................................ad No 3, 2015
r 10.20.13.......................................ad No 3, 2015
r 10.20.14.......................................ad No 3, 2015
Division 4
r 10.20.15.......................................ad No 3, 2015
r 10.20.16.......................................ad No 3, 2015
r 10.20.17.......................................ad No 3, 2015
Chapter 12
Part 12.6
r 12.06.01A....................................ad No 184, 2010
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Endnotes
Endnote 4—Amendment history
82 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Part 12.7
Division 2
r 12.7.06.........................................ad No 85, 2003
am No 368, 2003
Part 12.8
Division 1
r 12.8.02.........................................am No 227, 2007; No 175, 2009
Division 2
r 12.8.06.........................................am No 227, 2007
r 12.8.08.........................................am No 319, 2001
Schedule 1
Schedule 1......................................am No 319, 2001; No 194, 2003; No 208, 2004; No 399, 2004; No 195,
2007; No 198, 2009; No 387, 2009; No 152, 2013
Schedule 2
Form 105 .......................................rs No 198, 2009
Form 2M01....................................ad No 399, 2004
rep No 152, 2013
Form 2M02....................................ad No 399, 2004
rep No 152, 2013
Form 2M03....................................ad No 399, 2004
rep No 152, 2013
Form 309 .......................................rep No 195, 2007
Form 311 .......................................rep No 195, 2007
Form 312 .......................................rep No 195, 2007
Form 316 .......................................rep No 194, 2003
Form 350 .......................................rep No 195, 2007
Form 504 .......................................rep No 399, 2004
Form 505 .......................................rep No 399, 2004
Form 506 .......................................rep No 399, 2004
Form 507 .......................................rep No 399, 2004
Form 507A.....................................rep No 399, 2004
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 83
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Form 508 .......................................rep No 399, 2004
Form 509 .......................................rep No 399, 2004
Form 509D.....................................rep No 399, 2004
Form 509F .....................................rep No 399, 2004
Form 509G.....................................rep No 399, 2004
Form 509H.....................................am No 16, 2002
rs No 325, 2007
Form 519 .......................................rep No 399, 2004
Form 522 .......................................rep No 399, 2004
Form 523 .......................................rep No 399, 2004
Form 524 .......................................rep No 399, 2004
Form 525 .......................................rep No 399, 2004
Form 529 .......................................am No 325, 2007
rs No 198, 2009
Form 531B.....................................am No 325, 2007
Form 533 .......................................rep No 114, 2012
Form 534 .......................................rep No 114, 2012
Form 540 .......................................rep No 399, 2004
Form 545 .......................................rep No 399, 2004
Form 546 .......................................rep No 114, 2012
Form 701 .......................................ad No 387, 2009
Form 702 .......................................rep No 319, 2001
Form 703 .......................................rep No 319, 2001
Form 704 .......................................rep No 319, 2001
Form 705 .......................................rep No 319, 20019
Form 707 .......................................rep No 319, 2001
Form 708 .......................................rep No 319, 2001
Form 709 .......................................rep No 319, 2001
Form 710 .......................................rep No 319, 2001
Form 711 .......................................rep No 319, 2001
Form 712 .......................................rep No 319, 2001
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 4—Amendment history
84 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Form 713 .......................................rep No 319, 2001
Form 714 .......................................rep No 319, 2001
Form 715 .......................................rep No 319, 2001
Form 716 .......................................rep No 319, 2001
Form 717 .......................................rep No 319, 2001
Form 718 .......................................rep No 319, 2001
Form 719 .......................................rs No 319, 2001
Form 719A.....................................rs No 319, 2001
am No 16, 2002; No 26, 2004
Form 719B.....................................rs No 319, 2001
Form 720 .......................................rs No 319, 2001
Form 721 .......................................rs No 319, 2001
am No 26, 2004
Form 802 .......................................rep No 319, 2001
Form 802A.....................................rep No 319, 2001
Form 803 .......................................rep No 319, 2001
Form 803C.....................................rep No 319, 2001
Form 804 .......................................rep No 319, 2001
Form 805 .......................................rep No 319, 2001
Form 806 .......................................rep No 319, 2001
Form 807 .......................................rep No 319, 2001
Form 807A.....................................rep No 319, 2001
Form 808 .......................................rep No 319, 2001
Form 809 .......................................rep No 319, 2001
Form 810 .......................................rep No 319, 2001
Form 811 .......................................rep No 319, 2001
Form 812 .......................................rep No 319, 2001
Form 902 .......................................rep No 319, 2001
Form 903A.....................................rep No 208, 2004
Form 903B.....................................rep No 198, 2009
Form 904 .......................................rep No 198, 2009
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Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 85
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Form 905A.....................................rep No 399, 2004
Form 907 .......................................rep No 208, 2004
Form 908 .......................................rep No 399, 2004
Schedule 2A
Schedule 2A...................................ad No 319, 2001
Form 1 ...........................................ad No 319, 2001
Form 2 ...........................................ad No 319, 2001
Form 3 ...........................................ad No 319, 2001
Form 4 ...........................................ad No 319, 2001
Form 5 ...........................................ad No 319, 2001
Form 6 ...........................................ad No 319, 2001
Form 7 ...........................................ad No 319, 2001
Form 8 ...........................................ad No 319, 2001
Form 9 ...........................................ad No 319, 2001
Form 10 .........................................ad No 319, 2001
Schedule 3
Schedule 3......................................am No 319, 2001; No 398, 2004
Schedule 4
Schedule 4......................................am No 319, 2001; No 398, 2004; No 332, 2010
Schedule 5A...................................rep No 194, 2007
Schedule 5B...................................ad No 160, 2005
amNo 126, 2006
rep No 193, 2007
Schedule 5C
Schedule 5C...................................ad No 126, 2006
Schedule 6
Schedule 6......................................am No 318, 2001; No 319, 2001; No 362, 2006; No 272, 2010
Schedule 7A
Schedule 7A...................................ad No 171, 2012
Schedule 8
Schedule 8......................................am No 319, 2001
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Endnotes
Endnote 4—Amendment history
86 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Schedule 8A
Schedule 8A...................................am No 325, 2007
Schedule 8AA
Schedule 8AA................................ad No 88, 2010
am No 43, 2012
Schedule 8AB
Schedule 8AB ................................ad No 88, 2010
Schedule 8AC
Schedule 8AC ................................ad No 88, 2010
Schedule 8AD
Schedule 8AD................................ad No 88, 2010
am No 43, 2012
Schedule 8AE
Schedule 8AE ................................adNo 88, 2010
Schedule 8B
Schedule 8B...................................ad No 15, 2002
Schedule 8C
Schedule 8C...................................ad No 26, 2004
am No 70., 2009
am No 190, 2013
Schedule 8D
Schedule 8D...................................ad No 3, 2015
Schedule 9
Schedule 9 heading ........................am No 319, 2001
rs 2012 No 43
Schedule 9......................................am No 319, 2001; No 26, 2004; No 325, 2007
rs No 43, 2012
Schedule 10
Schedule 10....................................ad No 319, 2001
am No 16, 2002
rs No 31, 2005
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Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 87
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
am No 155, 2013
Schedule 10A
Schedule 10A heading ...................am No 16, 2002
rs No 94, 2008; No 135, 2010; No 42, 2012
Schedule 10A.................................ad No 319, 2001
am No 16, 2002; No 41, 2002; No 31, 2003; No 369, 2003; No 31, 2005;
No 94, 2008; No 158, 2008; No 135, 2010; No 301, 2010; No 42, 2012;
No 155, 2013; No 175, 2014
Schedule 10AA
Schedule 10AA..............................ad No 94, 2008
am No 301, 2010; No 175, 2014
Schedule 10B
Schedule 10B heading....................am No 16, 2002
rep No 31, 2005
Schedule 10B.................................ad No 319, 2001
am No 16, 2002; No 41, 2002; No 26, 2004
rep No 31, 2005
ad No 158, 2008
am No 194, 2008; No 55, 2010; No 66, 2011
Schedule 10C
Schedule 10C.................................ad No. 319, 2001
am No 16, 2002; No 41, 2002
rep No 31, 2005
ad No 135, 2010
Schedule 10D
Schedule 10D.................................
(first occurring)
ad No 135, 2010
am No 155, 2013
Schedule 10E
Schedule 10E .................................ad No 135, 2010
am No 274, 2011
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Endnotes
Endnote 4—Amendment history
88 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Provision affected How affected
Schedule 11....................................am No 208, 2001
rep No 319, 2001
Schedule 10D
Schedule 10D.................................
(second occurring)
ad No 319, 2001
am No 31, 2003
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 5—Misdescribed amendments
Corporations Regulations 2001 89
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Endnote 5—Misdescribed amendments
Corporations Amendment Regulations 2005 (No. 5) (No. 324, 2005)
Schedule 3
[3] After Schedule 10B
insert
Schedule 10BA
Part 1—Modifications of Part 7.7 of the Act
1.1 Paragraph 949A(2)(c)
after
Part 7.9)
insert
or a Short-Form PDS (see Division 3A of Part 7.9)
Part 2—Modifications of Part 7.8 of the Act
2.1 Paragraphs 992A(3)(c), (d) and (e)
after
Statement
insert
or a Short-Form PDS
Part 3—Modifications of Part 7.9 of the Act
3.1 After Division 3 of Part 7.9
insert
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 5—Misdescribed amendments
90 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 3A—Short-Form Product Disclosure Statements
1017H Short-Form PDS
Short-Form PDS may be given instead of a Product Disclosure
Statement in most cases
(1) If a regulated person is required or obliged by this Act to give a
Product Disclosure Statement for a financial product (but see
subsection (4)) to another person, the regulated person may instead
provide a Short-Form PDS for the product.
Product Disclosure Statement must be given in certain
circumstances
(2) However, if the regulated person is requested by the other person
to provide the Product Disclosure Statement the regulated person
must provide the Product Disclosure Statement.
Responsible person
(3) The responsible person for a Short-Form PDS for a financial
product is the person who is the responsible person for the Product
Disclosure Statement for the product.
Application of subsection (1)
(4) Subsection (1) does not apply to a general insurance product.
1017I Contents of a Short-Form PDS
Contents
(1) The Short-Form PDS for a financial product must contain the
following:
(a) a summary of the statements and information referred to in
paragraphs 1013D(1)(a), (b), (c), (d), (e), (g) and (i) that were
included in a Product Disclosure Statement for the product;
(b) a statement:
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 5—Misdescribed amendments
Corporations Regulations 2001 91
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) notifying the retail client in relation to the product that
the client may ask for the Product Disclosure Statement
for the product; and
(ii) setting out the means by which the client may ask for
the Product Disclosure Statement.
Extra contents for certain products
(2) If the Short-Form PDS is for a superannuation product or a
managed investment product the Short-Form PDS must also set out
in full the information in:
(a) any regulations made for the purposes of
paragraph 1013D(4)(c) relating to the details of fees and
costs; and
(b) any regulations made for the purposes of
paragraph 1015C(5)(b) that relate to the presentation,
structure and format of information required by paragraphs
1013D(1)(d) and (e).
Other information may be included in Short-Form PDS
(3) The Short-Form PDS may also:
(a) include other information; and
(b) refer to other information that is set out in the Product
Disclosure Statement or Financial Services Guide for the
product.
Reference to identify incorporated information
(4) If under paragraph (3)(b) information is referred to in the
Short-Form PDS, the reference must identify the document or the
part of the document that contains the information.
Incorporated document forms part of Short-Form PDS
(5) The document or part referred to in subsection (4) is taken to be
included in the Short-Form PDS.
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Endnotes
Endnote 5—Misdescribed amendments
92 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Rule as to statements in a Short-Form PDS
(6) If a Product Disclosure Statement for a financial product may
include a statement made by a person (see section 1013K), the
statement may also be included in the Short-Form PDS for the
product.
1017J Title of Short-Form Product Disclosure Statement
(1) The title “Short-Form Product Disclosure Statement” must be used
on the cover of, or at or near the front of, a Short-Form PDS.
(2) In any other part of a Short-Form PDS, “Short-Form Product
Disclosure Statement” may be abbreviated to “Short-Form PDS”.
1017K References in sections to Product Disclosure Statement to
include references to Short-Form PDS
The following provisions apply to a Short-Form PDS and so apply
as if a reference to a Product Disclosure Statement in the
provisions included a reference to a Short-Form PDS:
(a) sections 942DA, 947E, 1012F, 1012G, 1012H, 1012J,
1013A, 1013G, 1013H, 1013I, 1013L 1013M, 1016A,
1016B, 1016C, 1016D, 1016E and 1017A and
subsections 1013C(3) and 1013C(4) to (7);
(b) any regulations made under those sections or subsections;
(c) any regulations that modify those sections or subsections.
Division 3B—Supplementary Short-Form Product
Disclosure Statements
1017L What a Supplementary Short-Form Product Disclosure
Statement is
A Supplementary Short-Form PDS is a document by which a
person who has prepared a Short-Form PDS can:
(a) correct a misleading or deceptive statement in the
Short-Form PDS; or
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 5—Misdescribed amendments
Corporations Regulations 2001 93
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) correct an omission from the Short-Form PDS of information
it is required to contain; or
(c) update, or add to, the information contained in the
Short-Form PDS; or
(d) change a statement of a kind referred to in
paragraph 1016E(1)(a) or (b) (as applied by section 1017K).
1017M Title of Supplementary Short-Form Product Disclosure
Statement
(1) The title “Supplementary Short-Form Product Disclosure
Statement” must be used on the cover of, or at or near the front of,
a Supplementary Short-Form PDS.
(2) In any other part of a Supplementary Short-Form PDS,
“Supplementary Short-Form Product Disclosure Statement” may
be abbreviated to “Supplementary Short-Form PDS”.
1017N Form of Supplementary Short-Form Product Disclosure
Statement
At the beginning of a Supplementary Short-Form PDS there must
be:
(a) a statement that it is a Supplementary Short-Form PDS; and
(b) an identification of the Short-Form PDS that it supplements;
and
(c) a statement that it is to be read together with that Short-Form
PDS and any other specified Supplementary Short-Form
PDS.
1017O Effect of giving person a Supplementary Short-Form Product
Disclosure Statement
If:
(a) a person is given a Short-Form PDS; and
(b) at the same time, or later, they are given a Supplementary
Short-Form PDS that supplements the Short-Form PDS;
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 5—Misdescribed amendments
94 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
the Short-Form PDS is taken, from when the Supplementary
Short-Form PDS is given to the person, to include the information
and statements contained in the Supplementary Short-Form PDS.
1017P Situation in which only a Supplementary Short-Form
Product Disclosure Statement need be given
If:
(a) apart from this section, a person would be required to give
another person (the client) a Product Disclosure Statement
(the new PDS) relating to a financial product; and
(b) the client has, because of some previous conduct, already
received a Short-Form PDS (the earlier Short-Form PDS)
relating to the financial product; and
(c) the earlier Short-Form PDS contains summaries of some, but
not all, of the information that the new PDS is required to
contain (see paragraph 1017I(1)(a));
the person may, instead of giving the client the new PDS, give the
client a Supplementary Short-Form PDS that contains summaries
of the additional information.
1017Q Application of other provisions in relation to Supplementary
Short-Form Product Disclosure Statements
The following provisions apply in relation to a Supplementary
Short-Form PDS in the same way as those provisions apply to a
Product Disclosure Statement:
(a) sections 1013A, 1013G, 1013H, 1013K and
subsections 1013C(3) and 1013C(4) to (7);
(b) any regulations made under those sections or subsections;
(c) any regulations that modify those sections or subsections.
3.2 Section 1015A
substitute
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 5—Misdescribed amendments
Corporations Regulations 2001 95
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
1015A Subdivision applies to certain Disclosure Statements
(1) Subject to subsection (2):
(a) this Subdivision applies to:
(i) a Product Disclosure Statement; or
(ii) a Short-Form PDS; or
(iii) a Supplementary PDS; or
(iv) a Supplementary Short-Form PDS; and
(b) each of those kinds of documents is referred to in this
Subdivision as a Statement.
(2) However:
(a) section 1015B does not apply to a Short-Form PDS or a
Supplementary Short-Form PDS; and
(b) in that section, Statement does not include a Short-Form PDS
or a Supplementary Short-Form PDS.
3.3 Subsection 1015B(1) (after the note)
insert
Note 2: Subsection 1015A(2) provides that Statement in this section does not
include a Short-Form PDS or a Supplementary Short-Form PDS.
3.4 Paragraph 1018A(1)(e)
after
Statement
insert
or Short-Form PDS, if available,
3.5 Paragraph 1018A(2)(f)
after
Statement
insert
or Short-Form PDS, if available,
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 5—Misdescribed amendments
96 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
3.6 Subsection 1018A(3)
after
Statement
insert
or Short-Form PDS
3.7 Subparagraph 1018A(4)(d)(i)
after
Statement
insert
or Short-Form PDS
3.8 Paragraph 1020D(b)
omit
or Supplementary Product Disclosure Statement
insert
, Supplementary Product Disclosure Statement, Short-Form PDS or
Supplementary Short-Form PDS
3.9 After paragraph 1021B(1)(b) (definition of defective)
insert
(ba) if it is a Short-Form PDS—there is an omission from the
Short-Form PDS of material required by section 1017I; or
3.10 After paragraph 1021B(1)(c) (definition of defective)
insert
(ca) if it is a Supplementary Short-Form PDS that is given for the
purposes of section 1017P—there is an omission from the
Short-Form PDS of material required by that section; or
3.11 Subsection 1021B(1), definition of disclosure document or statement, after paragraph (b)
insert
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 5—Misdescribed amendments
Corporations Regulations 2001 97
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ba) a Short-Form PDS; or
(bb) a Supplementary Short-Form PDS; or
3.12 After subsection 1021C(5)
insert
(6) If a person does not give a Product Disclosure Statement for a
financial product because the person has given a Short-Form PDS
for the product, the person is taken not to contravene this section.
3.13 Paragraph 1021H(1)(a)
omit
or a Supplementary Product Disclosure Statement
insert
, a Supplementary Product Disclosure Statement, a Short-Form PDS or
a Supplementary Short-Form PDS
3.14 Subparagraph 1021H(1)(b)(i)
after
Product Disclosure Statement
insert
or Short-Form PDS
3.15 Subparagraph 1021H(1)(b)(ii)
omit
; and
insert
; or
3.16 After subparagraph 1021H(1)(b)(ii)
insert
(iii) if it is a Supplementary Short-Form PDS—
section 1013G, 1017M or 1017N; and
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 5—Misdescribed amendments
98 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
3.17 After subparagraph 1021J(1)(c)(ii)
insert
(iia) if it is a Short-Form PDS—a direction not to distribute
the Short-Form PDS unless it is accompanied by a
Supplementary Short-Form PDS that corrects the
deficiency;
3.18 After subparagraph 1021J(1)(c)(iii)
insert
(iiia) if it is a Short-Form PDS or a Supplementary
Short-Form PDS—a direction not to distribute the
Short-Form PDS or Supplementary Short-Form PDS
without first altering it in a way that is specified in the
direction, being a way that corrects the deficiency and
that complies with section 1015E.
3.19 Paragraph 1021K(1)(a)
omit
or a Supplementary Product Disclosure Statement
insert
, a Supplementary Product Disclosure Statement, a Short-Form PDS or
a Supplementary Short-Form PDS (the disclosure statement)
3.20 Paragraph 1021K(1)(b)
omit
Product Disclosure Statement or Supplementary Product Disclosure
Statement
insert
disclosure statement
3.21 Subparagraphs 1021K(1)(d)(i), (ii) and (iii)
omit
Product Disclosure Statement or Supplementary Product Disclosure
Statement
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 5—Misdescribed amendments
Corporations Regulations 2001 99
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
insert
disclosure statement
3.22 Paragraph 1021L(1)(a)
omit
or a Supplementary Product Disclosure Statement
insert
, a Supplementary Product Disclosure Statement, a Short-Form PDS or
a Supplementary Short-Form PDS
3.23 Paragraph 1021L(2)(a)
omit
or a Supplementary Product Disclosure Statement
insert
, a Supplementary Product Disclosure Statement, a Short-Form PDS or
a Supplementary Short-Form PDS (the disclosure statement)
3.24 Subparagraph 1021L(2)(b)(iv)
omit
Product Disclosure Statement or Supplementary Product Disclosure
Statement
insert
disclosure statement
3.25 Subparagraphs 1021M(1)(a)(i), (ii), (iii) and (iv)
omit
or a Supplementary Product Disclosure Statement
insert
, a Supplementary Product Disclosure Statement, a Short-Form PDS or
a Supplementary Short-Form PDS
3.26 Subparagraphs 1021M(3)(a)(i), (ii), (iii) and (iv)
omit
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 5—Misdescribed amendments
100 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
or a Supplementary Product Disclosure Statement
insert
, a Supplementary Product Disclosure Statement, a Short-Form PDS or
a Supplementary Short-Form PDS
3.27 After paragraph 1022A(1)(b) (definition of defective)
insert
(ba) if it is a Short-Form PDS—there is an omission from the
Short-Form PDS of material required by section 1017I; or
3.28 After paragraph 1022A(1)(c) (definition of defective)
insert
(ca) if it is a Supplementary Short-Form PDS that is given for the
purposes of section 1017P—there is an omission from the
Short-Form PDS of material required by that section; or
3.29 Subsection 1022A(1), definition of disclosure document or statement, after paragraph (b)
insert
(ba) a Short-Form PDS; or
(bb) a Supplementary Short-Form PDS; or
3.30 Subparagraph 1022B(1)(a)(i)
omit
or a Supplementary Product Disclosure Statement
insert
, a Supplementary Product Disclosure Statement, a Short-Form PDS or
a Supplementary Short-Form PDS
3.31 Subparagraph 1022B(1)(c)(ii)
omit
or a Supplementary Product Disclosure Statement
insert
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 5—Misdescribed amendments
Corporations Regulations 2001 101
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
, a Supplementary Product Disclosure Statement, a Short-Form PDS or
a Supplementary Short-Form PDS
3.32 Subparagraph 1022B(1)(d)(i)
omit
or a Supplementary Product Disclosure Statement
insert
, a Supplementary Product Disclosure Statement, a Short-Form PDS or
a Supplementary Short-Form PDS
Corporations Amendment Regulations 2010 (No. 9) (No. 301, 2010)
Schedule 1
[2] Regulation 8.2.01
omit
the Securities Act 1978 of New Zealand
insert
Federal Register of Legislative Instruments F2015C00303
Endnotes
Endnote 6—Miscellaneous
102 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Endnote 6—Miscellaneous
Form 5249 has been retained in this compilation. However, note that a possible
interpretation of the reference to forms “522 to 525” in item [15] of the
Corporations Amendment Regulations 2004 (No. 9) (No. 399, 2004) is that
form 5249 should be deleted.
Federal Register of Legislative Instruments F2015C00303
Prepared by the Office of Parliamentary Counsel, Canberra
Corporations Regulations 2001
Statutory Rules No. 193, 2001
made under the
Corporations Act 2001
Compilation No. 113
Compilation date: 31 March 2015
Includes amendments up to: SLI No. 39, 2015
Registered: 9 April 2015
This compilation is in 7 volumes
Volume 1: regulations 1.0.01–6D.5.02
Volume 2: regulations 7.1.02–7.6.08E
Volume 3: regulations 7.7.01–8.4.02
Volume 4: regulations 9.1.01–12.9.03
Volume 5: Schedules 1, 2 and 2A
Volume 6: Schedules 3–12
Volume 7: Endnotes
Each volume has its own contents
Federal Register of Legislative Instruments F2015C00303
About this compilation
This compilation
This is a compilation of the Corporations Regulations 2001 that shows the text
of the law as amended and in force on 31 March 2015 (the compilation date).
This compilation was prepared on 31 March 2015.
The notes at the end of this compilation (the endnotes) include information
about amending laws and the amendment history of provisions of the compiled
law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the
compiled law. Any uncommenced amendments affecting the law are accessible
on ComLaw (www.comlaw.gov.au). The details of amendments made up to, but
not commenced at, the compilation date are underlined in the endnotes. For
more information on any uncommenced amendments, see the series page on
ComLaw for the compiled law.
Application, saving and transitional provisions for provisions and
amendments
If the operation of a provision or amendment of the compiled law is affected by
an application, saving or transitional provision that is not included in this
compilation, details are included in the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as
modified but the modification does not amend the text of the law. Accordingly,
this compilation does not show the text of the compiled law as modified. For
more information on any modifications, see the series page on ComLaw for the
compiled law.
Self-repealing provisions
If a provision of the compiled law has been repealed in accordance with a
provision of the law, details are included in the endnotes.
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Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Contents
Chapter 1—Introductory 1
Part 1.0—Miscellaneous 1 1.0.01 Name of Regulations .........................................................1
1.0.01A Commencement.................................................................1
1.0.02 Interpretation .....................................................................1
1.0.02A Prescribed financial market .............................................13
1.0.03 Prescribed forms (Act s 350)...........................................13
1.0.03A Documents that must be in the prescribed form ..............14
1.0.03B Documents that must be lodged with ASIC.....................15
1.0.03C Documents that must be in a form approved by
ASIC................................................................................16
1.0.04 Directions and instructions in forms................................16
1.0.05 Documents and information required by forms ...............17
1.0.05A Lodgment with ASIC ......................................................17
1.0.06 Annexures accompanying forms .....................................18
1.0.07 General requirements for documents...............................18
1.0.08 Information to accompany financial documents
lodged for financial years ................................................20
1.0.09 Information to accompany financial documents etc
lodged for half-years .......................................................21
1.0.10 Continuous disclosure notices .........................................22
1.0.11 Certain documents to be signed by personal
representatives etc ...........................................................22
1.0.12 Form of notice of resolution ............................................23
1.0.13 Time for lodging documents ...........................................23
1.0.14 Address of registered office or place of business ............23
1.0.15 Affidavits and statements in writing................................23
1.0.16 Certification and verification of certain documents.........24
1.0.17 Documents signed or sworn in accordance with the
rules.................................................................................24
1.0.18 Prescribed provisions (Act s 53)......................................24
1.0.20 Copies of orders to be lodged ..........................................24
1.0.21 Identification of lodged orders ........................................25
1.0.22 Territorial application of Act...........................................25
Part 1.1—Prescribed amounts 26 1.1.01 Prescribed amounts..........................................................26
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Part 1.2—Interpretation 27
Division 1—General 27
1.2.01 Remuneration recommendations (Act s 9B)....................27
Part 1.2A—Disclosing entities 28 1.2A.01 Securities declared not to be ED securities......................28
1.2A.02 Foreign companies issuing securities under foreign
scrip offers etc exempt from disclosing entity
provisions ........................................................................28
1.2A.03 Foreign companies issuing securities under
employee share scheme exempt from the
disclosing entity provisions .............................................30
Chapter 2A—Registration of companies 31
Part 2A.1—Size of partnerships or associations (Act s 115(2)) 31 2A.1.01 Size of partnerships or associations.................................31
Part 2A.2—Change of place of registration of company (Act s
119A(3)) 33 2A.2.01 Approval of application for change of place of
registration.......................................................................33
2A.2.02 Special resolution may be set aside by Court order .........33
2A.2.03 Application for change of place of registration ...............34
2A.2.04 Change of place of registration........................................34
Chapter 2B—Basic features of a company 35
Part 2B.6—Names 35 2B.6.01 Availability of names (Act s 147)....................................35
2B.6.02 Consents required for use of certain letters, words
and expressions ...............................................................35
2B.6.03 Exemptions from requirement to set out name and
ACN on certain documents (Act s 155)...........................36
Chapter 2C—Registers 37
Part 2C.1—Registers generally 37
Division 2C.1.1—Location of register 37
2C.1.01 Form of notice .................................................................37
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Division 2C.1.2—Right to inspect and get copies of register 38
2C.1.02 Form of register ...............................................................38
2C.1.03 Improper purposes for getting copy of register................38
2C.1.04 Information to be included in application for copy
of register ........................................................................38
Division 2C.1.3—Use of information on registers by bodies
corporate 39
2C.1.05 Contact with members after failure to provide
copy of register................................................................39
Chapter 2D—Officers and employees 42
Part 2D.2—Restrictions on indemnities, insurance and
termination payments 42
Division 2D.2.2—Termination payments 42
2D.2.01 Meaning of base salary ...................................................42
2D.2.02 Meaning of benefit ..........................................................43
2D.2.03 When benefit given in connection with retirement
from an office or a position .............................................45
Part 2D.6—Disqualification from managing corporations 46
Division 2D.6.1—Automatic disqualification (Act s 206B) 46
2D.6.01 Prescribed foreign jurisdictions (Act s 206B(7)) .............46
Part 2D.7—Ban on hedging remuneration of key management
personnel 47 2D.7.01 Hedging arrangements (Act s 206J(3))............................47
Chapter 2E—Related party transactions 49 2E.1.01 Small amounts given to related entity .............................49
Chapter 2G—Meetings 50
Part 2G.2—Meetings of members of companies 50
Division 6—Proxies and body corporate representatives 50
2G.2.01 Authentication of appointment of proxy (Act s
250A) ..............................................................................50
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Chapter 2K—Charges 51
Part 2K.2—Registration 51 2K.2.01 Lien or charge on crop or wool, or stock mortgage,
that is a registrable security: prescribed law—
subsection 262(5) of the Act............................................51
2K.2.02 Time period for the provisional registration of
charges ............................................................................52
2K.2.03 Charge that is a registrable security: specified
law—paragraphs 273A(4)(b), 273B(3)(b) and
273C(3)(b) of the Act ......................................................52
Chapter 2L—Debentures 53
Part 2L.2—Duties of borrower 53 2L.2.01 Register relating to trustees for debenture holders ..........53
Chapter 2M—Financial reports and audit 54
Part 2M.3—Financial reporting 54
Division 1—Annual financial reports and directors’ reports 54
2M.3.01 Disclosures required by notes to consolidated
financial statements—annual financial reports (Act
s 295)...............................................................................54
2M.3.03 Prescribed details (Act s 300A) .......................................55
Part 2M.4—Auditor 71 2M.4.01A Membership designations (Act s 324BE) ........................71
2M.4.01 Notice of appointment of auditors ...................................71
Part 2M.4A—Annual transparency reports for auditors 72 2M.4A.01 Application......................................................................72
2M.4A.02 Content of annual transparency report (Act s
332B)...............................................................................72
Part 2M.6—Modification of the operation of Chapter 2M of the
Act 73 2M.6.01 Modifications (Act s 343)................................................73
2M.6.05 Conduct of auditor—relevant relationships.....................73
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Chapter 2N—Updating ASIC information about
companies and registered schemes 74
Part 2N.2—Extract of particulars 74 2N.2.01 Particulars ASIC may require in an extract of
particulars (Act s 346B) ..................................................74
Part 2N.4—Return of particulars 77 2N.4.01 Particulars ASIC may require in a return of
particulars (Act s 348B) ..................................................77
Chapter 5—External administration 79
Part 5.1—Arrangements and reconstructions 79 5.1.01 Prescribed information for paragraph 411(3)(b)
and subparagraph 412(1)(a)(ii) of the Act .......................79
5.1.02 Giving notice under subsection 414(2) or (9) of the
Act...................................................................................80
Part 5.2—Receivers, and other controllers, of corporations 81 5.2.01 Controller’s notice to owner or lessor of
property—how given.......................................................81
5.2.01 Certified copies of reports ...............................................81
Part 5.3A—Administration of a company’s affairs with a view
to executing a deed of company arrangement 82 5.3A.01 Administrator’s notice of ending of administration .........82
5.3A.02 Administrator to specify voidable transactions in
statement .........................................................................82
5.3A.03 Administrator to lodge notice of appointment .................82
5.3A.03A Notice of first meeting of creditors..................................83
5.3A.03AB Notice of meeting to decide the company’s future ..........83
5.3A.04 Notice of change of administrator’s address....................84
5.3A.05 Administrator’s notice to owner or lessor of
property—how given.......................................................84
5.3A.06 Provisions included in deed of company
arrangement.....................................................................85
5.3A.06A Notice of resolution to wind up voluntarily.....................85
5.3A.06AB Notice of meeting of creditors .........................................85
5.3A.07 Administrator becomes liquidator—additional
cases ................................................................................85
5.3A.07A Notice of appointment of administrator...........................87
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Part 5.4—Winding up in insolvency 88 5.4.01 Application to Court for winding up—prescribed
agency .............................................................................88
5.4.01A Notice of application to wind up a company ...................88
5.4.02 Compromise of debt by liquidator—prescribed
amount.............................................................................89
Part 5.4C—Winding up by ASIC 90 5.4C.01 Notice of intention to order winding up of a
company ..........................................................................90
Part 5.5—Voluntary winding up 91 5.5.01 Notice of resolution to wind up voluntarily.....................91
5.5.02 Notice of meeting of creditors .........................................91
Part 5.6—Winding up generally 92 5.6.01 Matters for entry in liquidator’s or provisional
liquidator’s books ............................................................92
5.6.02 Inspection of books kept under section 531 of the
Act...................................................................................92
5.6.06 Payment into liquidator’s general account.......................92
5.6.07 Deposit of securities ........................................................92
5.6.08 Delivery of securities.......................................................93
5.6.09 Special bank account .......................................................93
5.6.10 Payments out of liquidator’s general account ..................93
5.6.11 Application......................................................................94
5.6.11A Electronic methods of giving or sending certain
notices etc........................................................................95
5.6.12 Notice of meeting ............................................................96
5.6.13 Proof of notice.................................................................98
5.6.13A If telephone conference facilities are available................99
5.6.13B Persons, or their proxies or attorneys, participating
by telephone ....................................................................99
5.6.14 Time and place of meeting ............................................100
5.6.14A Advertisement of a meeting...........................................100
5.6.14B Meetings not convened in accordance with
regulations .....................................................................101
5.6.15 Costs of convening meetings of creditors etc ................101
5.6.16 Quorum .........................................................................102
5.6.17 Chairperson ...................................................................103
5.6.18 Adjournment of meeting ...............................................103
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5.6.19 Voting on resolutions ....................................................104
5.6.20 Taking a poll .................................................................105
5.6.21 Carrying of resolutions after a poll has been
demanded at a meeting of creditors ...............................105
5.6.22 Carrying of resolution after a poll has been
demanded at a meeting of contributories or
members ........................................................................107
5.6.23 Creditors who may vote ................................................107
5.6.23A Voting status of persons by whom money is
advanced to a company .................................................108
5.6.24 Votes of secured creditors .............................................109
5.6.26 Admission and rejection of proofs for purposes of
voting ............................................................................109
5.6.27 Minutes of meeting........................................................110
5.6.28 Appointment of proxies.................................................111
5.6.29 Form of proxies .............................................................112
5.6.30 Instruments of proxy .....................................................114
5.6.31 Proxy forms to accompany notice of meetings..............114
5.6.31A Person may attend and vote by attorney ........................114
5.6.32 Liquidator etc may act as proxy ....................................115
5.6.33 Voting by proxy if financially interested.......................115
5.6.34 Liquidator etc may appoint deputy ................................115
5.6.36 Time for lodging proxies ...............................................116
5.6.36A Facsimile copies of proxies ...........................................116
5.6.37 Establishing title to priority ...........................................116
5.6.39 Notice to submit particulars of debt or claim ................116
5.6.40 Preparation of a proof of debt or claim..........................117
5.6.41 Disclosure of security....................................................117
5.6.42 Discounts.......................................................................117
5.6.43 Periodical payments ......................................................117
5.6.43A Debt or claim of uncertain value—appeal to Court .......118
5.6.44 Debt discount rate (Act s 554B) ....................................118
5.6.45 Employees’ wages .........................................................118
5.6.46 Production of bill of exchange and promissory
note................................................................................119
5.6.47 Admission of debt or claim without formal proof .........119
5.6.48 Notice to creditors to submit formal proof ....................120
5.6.49 Formal proof of debt or claim .......................................120
5.6.50 Contents of formal proof of debt or claim .....................121
5.6.51 Costs of proof ................................................................121
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5.6.52 Liquidator to notify receipt of proof of debt or
claim..............................................................................121
5.6.53 Time for liquidator to deal with proofs..........................121
5.6.54 Grounds of rejection and notice to creditor ...................122
5.6.55 Revocation or amendment of decision of liquidator......123
5.6.56 Withdrawal or variation of proof of debt or claim.........124
5.6.57 Oaths .............................................................................125
5.6.58 Liquidator to make out provisional list of
contributories.................................................................125
5.6.59 Time and place for settlement of list .............................125
5.6.60 Settlement of list of contributories ................................126
5.6.61 Supplementary list .........................................................126
5.6.62 Notice to contributories .................................................126
5.6.63 Dividend payable only on admission of a debt or
claim..............................................................................127
5.6.64 Application of regulations 5.6.37 to 5.6.57 ...................128
5.6.65 Liquidator to give notice of intention to declare a
dividend.........................................................................128
5.6.66 Time allowed for dealing with formal proof of
debt or claim..................................................................129
5.6.67 Declaration and distribution of dividend .......................130
5.6.68 Rights of creditor who has not proved debt before
declaration of dividend..................................................130
5.6.69 Postponement of declaration .........................................131
5.6.70 Payment of dividend to a person named........................131
5.6.70A Prescribed rate of interest on debts and claims
from relevant date to date of payment ...........................131
5.6.70B Notice of disclaimer ......................................................131
5.6.71 Distribution of surplus in a winding up by the
Court..............................................................................132
5.6.72 Distribution of surplus as directed.................................132
5.6.73 Eligible unsecured creditor............................................132
5.6.74 Interpretation: prescribed countries ...............................133
5.6.75 Publication in the prescribed manner ............................133
Chapter 5B—Bodies corporate registered as
companies, and registrable bodies 135
Part 5B.2—Registrable bodies 135 5B.2.01 Certified copies of certificates of incorporation etc.......135
5B.2.02 Manner of certifying constituent documents .................135
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5B.2.03 Manner of sending letters (Act ss 601CC(2) and
601CL(3))......................................................................136
5B.2.04 Manner of sending notices (Act ss 601CC(3) and
601CL(4))......................................................................136
5B.2.05 Prescribed countries (Act s 601CDA(a)) .......................136
5B.2.06 Notices (Act s 601CV(1))..............................................137
Part 5B.3—Names of registrable Australian bodies and foreign
companies 138 5B.3.01 Availability of names (Act s 601DC) ............................138
5B.3.02 Consents required for use of certain letters, words
and expressions .............................................................138
5B.3.03 Exemptions from requirement to set out ARBN etc
on certain documents (Act s 601DG) ............................139
5B.3.04 Notices (Act s 601DH (1)) ............................................139
Chapter 5C—Managed investment schemes 140
Part 5C.1—Registration of managed investment schemes 140 5C.1.01 Applying for registration ...............................................140
5C.1.02 Change of name of registered schemes .........................140
5C.1.03 Modification (Act s 601QB)..........................................141
Part 5C.2—The responsible entity 142 5C.2.01 Duty of responsible entities’ agents—surveillance
checks............................................................................142
5C.2.02 Appointment of temporary responsible entities.............142
5C.2.03 Form of notices (Act ss 601FL(2) and 601FM(2)) ........142
5C.2.04 Notice of appointment of temporary responsible
entities ...........................................................................142
5C.2.05 Form of notices (Act s 601FP(3))..................................142
Part 5C.4—The compliance plan 143 5C.4.01 Agents’ authorities to be lodged ....................................143
5C.4.02 Agents to assist auditors of compliance plans ...............143
Part 5C.5—The compliance committee 144 5C.5.01 Responsible entities etc to assist compliance
committees ....................................................................144
Part 5C.9—Winding up 145 5C.9.01 Notice of commencement of winding up.......................145
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Part 5C.11—Exemptions and modifications 146
Division 1—Exemptions 146
5C.11.01 Certain schemes not managed investment schemes.......146
Division 2—Modifications 150
5C.11.02 Modifications ................................................................150
5C.11.03 Register of members of registered schemes (Act s
169(1))...........................................................................150
5C.11.03A How to work out the value of an interest.......................150
5C.11.04 Names of registered schemes (Act s 601EB(1)) ............150
5C.11.05A Schemes not required to be registered (Act s
601ED) ..........................................................................150
5C.11.06 Liability of responsible entities (Act s 601FB(4)) .........151
Chapter 5D—Licensed trustee companies 152
Part 5D.1—Preliminary 152 5D.1.01 Prescribed requirements for publication ........................152
5D.1.01A Meaning of trustee company .........................................152
5D.1.02 Meaning of traditional trustee company services
and estate management functions ..................................152
5D.1.03 Meaning of mortgage-backed security ..........................155
5D.1.04 Interaction between trustee company provisions
and State and Territory laws..........................................156
Part 5D.2—Powers etc of licensed trustee companies 158
Division 2.1—Annual Information Returns 158
5D.2.01 Obligation on licensed trustee company to provide
an annual information return if requested......................158
5D.2.02 Information to be included in annual information
return .............................................................................160
Division 2.2—Common funds 161
5D.2.03 Common funds ..............................................................161
5D.2.04 Establishment of common funds ...................................161
5D.2.05 Deciding details about common funds ..........................161
5D.2.06 Operation of common funds ..........................................162
5D.2.07 Register of investments .................................................165
5D.2.08 Financial reports............................................................166
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Part 5D.3—Regulation of fees charged by licensed trustee
companies 168 5D.3.01 Modification of section 601TAB of the Act:
disclosure to clients of changed fees .............................168
Part 5D.4—Obligations of receiving company after transfer 169 5D.4.01 Preserving rights under dispute resolution systems
and compensation arrangements....................................169
Chapter 6—Takeovers 170
Part 6.2—Exceptions to the prohibition 170 6.2.01 Prescribed circumstances (Act s 611)............................170
6.2.02 Other prescribed circumstances (Act s 611) ..................171
Part 6.5—The takeover procedure 172 6.5.01 Wholesale holder of securities—telephone
monitoring during bid period.........................................172
Part 6.6—Variation of offers 173 6.6.01 Right to withdraw acceptance........................................173
Part 6.8—Acceptances 174 6.8.01 Acceptance of offers made under off-market bid ..........174
6.8.02 Acceptances by transferees and nominees of offers
made under off-market bid ............................................174
Part 6.10—Review and intervention 175 6.10.01 Application for review of Panel decision (Act s
657EA) ..........................................................................175
Chapter 6A—Compulsory acquisitions and buy-outs 176
Part 6A.1—Compulsory acquisitions and buy-outs after
takeover bid 176 6A.1.01 Terms on which securities to be acquired......................176
Chapter 6CA—Continuous disclosure 177 6CA.1.01 Continuous disclosure: other disclosing entities............177
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Chapter 6D—Fundraising 178
Part 6D.2—Disclosure to investors about securities 178 6D.2.01 Exemption—member shares .........................................178
6D.2.02 Exemption—foreign companies ....................................178
6D.2.03 Sophisticated investors ..................................................178
6D.2.04 Simple corporate bonds—base prospectus ....................178
6D.2.05 Simple corporate bonds—offer-specific prospectus ......183
6D.2.06 Simple corporate bonds—key financial ratios
relevant to issuing body.................................................186
Part 6D.5—Fundraising—miscellaneous 188 6D.5.01 Warrants that are securities ...........................................188
6D.5.02 Modification of paragraph 708(8)(c) of the Act:
renewal period for accountants’ certificates ..................188
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Introductory Chapter 1
Miscellaneous Part 1.0
Regulation 1.0.01
Corporations Regulations 2001 1
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Note about these Regulations
These Regulations are made under the Corporations Act 2001. To assist users of
these Regulations, these Regulations follow, as far as possible, the drafting
style, structure and numbering of the Corporations Regulations 1990 that were
made under the Corporations Act 1989. Because some provisions of the
Corporations Regulations 1990 are not remade in these Regulations, some gaps
appear in the numbering of these Regulations. Also, the drafting style departs in
minor ways from that used in the Corporations Regulations 1990.
Chapter 1—Introductory
Part 1.0—Miscellaneous
1.0.01 Name of Regulations
These Regulations are the Corporations Regulations 2001.
1.0.01A Commencement
These Regulations commence on the same day as the Corporations
Act 2001.
1.0.02 Interpretation
(1) In these Regulations:
ABN (Australian Business Number) has the meaning given by
section 41 of the A New Tax System (Australian Business Number)
Act 1999.
ACH means Australian Clearing House Pty Limited.
Act means the Corporations Act 2001.
agent means a person appointed under subsection 601CG (1) of the
Act.
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Part 1.0 Miscellaneous
Regulation 1.0.02
2 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
approved deposit fund (or ADF) has the same meaning as in the
SIS Act.
approved foreign bank:
(a) in relation to a participant of a licensed market, means a
bank:
(i) established by or under the law of a foreign country; and
(ii) in relation to which there is in force an approval given
by the market licensee in accordance with its operating
rules or by ASIC under the market integrity rules; and
(b) in relation to a financial services licensee other than a
participant of a licensed market, means a bank:
(i) regulated by an overseas regulator; and
(ii) in relation to which there is in force an approval given
by ASIC for the purposes of this definition.
approved form, in relation to a provision of the Act or of these
Regulations, means the form that is approved under paragraph 350
(1)(b) of the Act for use for that provision.
associated provisions, in relation to provisions (the core
provisions) of the relevant old legislation as in force at a particular
time, include (but are not limited to):
(a) any regulations or other instruments that are or were in force
for the purposes of any of the core provisions at that time;
and
(b) any interpretation provisions that apply or applied in relation
to any of the core provisions at that time (whether or not they
also apply or applied for other purposes); and
(c) any provisions relating to liability (civil or criminal) that
apply or applied in relation to any of the core provisions at
that time (whether or not they also apply or applied for other
purposes); and
(d) any provisions that limit or limited, or that otherwise affect
or affected, the operation of any of the core provisions at that
time (whether or not they also limit or limited, or affect or
affected, the operation of other provisions).
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Introductory Chapter 1
Miscellaneous Part 1.0
Regulation 1.0.02
Corporations Regulations 2001 3
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
ASTC means ASX Settlement and Transfer Corporation Pty
Limited.
ASTC certificate cancellation provisions means the provisions of
the ASTC operating rules that deal with:
(a) the cancellation of certificates or other documents of title to
Division 4 financial products; and
(b) matters incidental to the cancellation of those certificates or
documents.
ASTC-regulated transfer means a transfer of a Division 4 financial
product:
(a) within the meaning of:
(i) Division 4 of Part 7.11 of the Act; and
(ii) regulations relating to transfer made for sections 1074A
and 1074E of the Act; and
(b) that is effected through ASTC; and
(c) that, according to the ASTC operating rules, is an
ASTC-regulated transfer.
benefit fund has the meaning given by section 16B of the Life
Insurance Act 1995.
building society has the same meaning as in section 16 of the RSA
Act.
capital guaranteed, for a superannuation product or an RSA
product, means that the contributions and accumulated earnings
may not be reduced by a negative investment return or a reduction
in the value of an asset in which the product is invested.
capital guaranteed FHSA product means an FHSA product:
(a) that is an FHSA deposit account or an FHSA life policy; and
(b) for which the balance may not be reduced other than by the
debiting of fees.
capital guaranteed fund means a public offer superannuation fund,
or a sub-fund of a public offer superannuation fund, that has the
following characteristics:
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Part 1.0 Miscellaneous
Regulation 1.0.02
4 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) its investments comprise 1 or more of the following only:
(i) deposits with an ADI;
(ii) investments in a capital guaranteed superannuation
product or RSA product;
(b) the contributions and accumulated earnings of its members
cannot be reduced by negative investment returns (within the
meaning of subregulation 5.01(1) of the SIS Regulations) or
by any reduction in the value of its assets.
capital guaranteed member means a member whose interest in a
public offer superannuation fund is fully invested in a capital
guaranteed fund.
carbon abatement contract has the same meaning as in the Carbon
Credits (Carbon Farming Initiative) Act 2011.
choice product has the same meaning as in the SIS Act.
CPI means the Consumer Price Index number (being the weighted
average of the 8 capital cities) published by the Australian Bureau
of Statistics.
Division 3 asset means:
(a) shares mentioned in paragraph 1073A(1)(a) of the Act; or
(b) debentures mentioned in paragraph 1073A(1)(b) of the Act;
or
(c) interests in a registered scheme mentioned in
paragraph 1073A(1)(c) of the Act; or
(ca) a CGS depository interest mentioned in
paragraph 1073A(1)(da) of the Act; or
(d) securities mentioned in paragraph 1073A(1)(e) of the Act.
Division 3 rights means:
(a) rights mentioned in paragraph 1073A(1)(d) of the Act; and
(b) rights related to securities mentioned in
paragraph 1073A(1)(e) of the Act.
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Division 3 securities means Division 3 assets and Division 3
rights.
Division 4 financial product has the meaning given by
regulation 7.11.03.
enduring power of attorney means an enduring power of attorney
that complies with a law of a State or Territory.
Exchange body means:
(a) Australian Stock Exchange Limited; or
(b) a subsidiary of Australian Stock Exchange Limited.
excluded ADF has the same meaning as in the SIS Act.
exempt public sector superannuation scheme (EPSSS) has the
same meaning as in the SIS Act.
FHSA deposit account means an FHSA product of a kind
mentioned in subparagraph (c)(i) of the meaning of FHSA in
section 8 of the First Home Saver Accounts Act 2008.
FHSA life policy means an FHSA product of a kind mentioned in
subparagraph (c)(ii) of the meaning of FHSA in section 8 of the
First Home Saver Accounts Act 2008.
financial business means a business that:
(a) consists of, or includes, the provision of financial services; or
(b) relates wholly or partly to the provision of financial services.
form means an approved form or a prescribed form.
friendly society has the meaning given by section 16C of the Life
Insurance Act 1995.
FSR commencement means the commencement of item 1 of
Schedule 1 to the Financial Services Reform Act 2001.
generic MySuper product: a class of beneficial interest in a
superannuation entity is a generic MySuper product if:
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(a) the superannuation entity is a regulated superannuation fund;
and
(b) the RSE licensee of the fund (within the meaning of the SIS
Act) is authorised to offer that class of beneficial interest in
the fund as a MySuper product under section 29T of the SIS
Act; and
(c) the RSE licensee of the fund (within the meaning of the SIS
Act) is not authorised to offer that class of beneficial interest
in the fund as a MySuper product because section 29TA or
29TB of the SIS Act is satisfied in relation to the class.
income stream financial product means an annuity or other
facility that is a financial product which provides an income
stream, including:
(a) an income stream that is an investment life insurance
product; or
(b) an income designated under section 9 of the Social Security
Act 1991 or section 5H of the Veterans’ Entitlements Act
1986;
but does not include any of the following:
(c) a financial product under paragraph 764A(1)(ba) of the Act;
(d) anything that is not a financial product under section 765A of
the Act;
(e) available money;
(f) deposit money;
(g) a managed investment product;
(h) a security;
(i) a loan that has not been repaid in full;
(j) gold, silver or platinum bullion.
Note: In accordance with subsections 761G(6) and (7) of the Act,
superannuation products and RSA products are not income stream
financial products.
investment-based financial product means:
(a) a financial product under section 763B of the Act; or
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(b) a financial product under paragraph 764A(1)(ba) or (j) of the
Act; or
(c) a financial product under paragraph 764A(1)(m) of the Act
that is specified to be an investment-based financial product;
or
(d) a security; or
(e) a managed investment product; or
(f) an investment life insurance product; or
(g) a deposit product; or
(ga) a carbon unit;
(gb) an Australian carbon credit unit;
(gc) an eligible international emissions unit;
but does not include any of the following:
(h) anything that is not a financial product under section 765A of
the Act;
(i) an income stream financial product.
Note: In accordance with subsections 761G(6) and (7) of the Act,
superannuation products and RSA products are not income stream
financial products.
Lloyd’s has the same meaning as in the Insurance Act 1973.
margin loan, or margin lending, means a standard margin lending
facility.
medical indemnity insurance product means an arrangement:
(a) under which medical indemnity cover is provided to:
(i) a medical practitioner as defined in section 4 of the
Medical Indemnity (Prudential Supervision and Product
Standards) Act 2003; or
(ii) a registered health professional prescribed by the
Medical Indemnity (Prudential Supervision and Product
Standards) Regulations 2003 for a provision of Part 3 of
the Medical Indemnity (Prudential Supervision and
Product Standards) Act 2003; and
(b) to which the Medical Indemnity (Prudential Supervision and
Product Standards) Act 2003 applies.
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minor fee, for a margin loan, means a fee or cost for the margin
loan that does not relate to the ordinary acquisition, operation or
closure of the loan and which is less than $10.
MySuper product has the same meaning as in the SIS Act.
non-cash payment financial product means a financial product
under section 763D of the Act, other than:
(a) a derivative; or
(b) a financial product under paragraph 764A(1)(k) of the Act; or
(c) anything that is not a financial product under section 765A of
the Act.
non-Division 3 securities means financial products to which
Division 3 or 4 of Part 7.11 of the Act applies because of a
declaration made by ASIC under paragraph 1075A(1)(b) of the
Act.
old Corporations Act means the Corporations Act 2001 as in force
immediately before the FSR commencement.
policy committee has the same meaning as in the SIS Act.
pooled superannuation trust (or PST) has the same meaning as in
the SIS Act.
pre-FSR securities means securities defined in subsection 92(3) of
the old Corporations Act.
preserved benefits means preserved benefits under:
(a) Subdivision 6.1.2 of the SIS Regulations; or
(b) Subdivision 4.1.2 of the RSA Regulations.
proper ASTC transfer means:
(a) an ASTC-regulated transfer of a Division 4 financial product
effected:
(i) through the prescribed CS facility operated by the
ASTC; and
(ii) in accordance with the operating rules of the ASTC; and
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(b) an ASTC-regulated transfer that the ASTC, in accordance
with its operating rules, determines:
(i) to comply substantially with the applicable provisions
of those operating rules; and
(ii) to be taken to be, and always to have been, a proper
ASTC transfer.
public offer entity has the same meaning as in the SIS Act.
public offer superannuation fund has the same meaning as in the
SIS Act.
qualifying gas exchange product means an arrangement for the
physical delivery of natural gas or related goods or services,
including pipeline capacity.
qualifying gas trading exchange means a facility:
(a) established by the Australian Energy Market Operator
Limited (ACN 072 010 327) exercising its functions under
subsection 91BRK(1) of the National Gas Law set out in the
Schedule to the National Gas (South Australia) Act 2008
(SA); and
(b) through which persons may elect to buy and sell natural gas
or related goods or services (including pipeline capacity).
registration number means:
(a) for a company—the number allotted to the company under
paragraph 118(1)(a) or 601BD(1)(a) of the Act; or
(b) for a registered body—the number allotted to it under
section 601CB or 601CE of the Act; or
(c) for an auditor or a liquidator (including an official liquidator
or a liquidator of a specified body corporate)—the number
allotted to a person on registration of that person as an
auditor or a liquidator.
regulated superannuation fund has the same meaning as in the
SIS Act.
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restricted non-preserved benefits means restricted non-preserved
benefits under:
(a) Subdivision 6.1.3 of the SIS Regulations; or
(b) Subdivision 4.1.3 of the RSA Regulations.
retirement savings account has the same meaning as in the RSA
Act.
risk-based financial product means:
(a) a financial product under section 763C of the Act; or
(b) a life risk insurance product;
but does not include any of the following:
(c) a derivative;
(d) anything that is not a financial product under section 765A of
the Act.
Note: In accordance with subsections 761G(5) and (7) of the Act, general
insurance products are not risk-based financial products.
RSA Act means the Retirement Savings Accounts Act 1997.
RSA Regulations means the Retirement Savings Accounts
Regulations 1997.
settlement documents, in relation to a transaction, means:
(a) if the agreement for the transaction has not been
discharged—documents the supply of which in accordance
with the agreement is sufficient to discharge the obligations
of the seller under the agreement, in so far as the obligations
relate to the supply of documents in connection with the
transaction; or
(b) if the agreement for the transaction has been discharged,
whether by performance or otherwise—documents the supply
of which in accordance with the agreement would, if the
agreement had not been discharged, be sufficient to discharge
the obligations of the seller under the agreement, in so far as
the obligations relate to the supply of documents in
connection with the transaction.
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simple managed investment scheme means a registered
management investment scheme which is or was offered because it
meets 1 of the following requirements:
(a) the scheme invests at least 80% of its assets in money in an
account with a bank on the basis that the money is available
for withdrawal:
(i) immediately during the bank’s normal business hours;
or
(ii) at the end of a fixed-term period that does not exceed 3
months;
(b) the scheme invests at least 80% of its assets in money on
deposit with a bank on the basis that the money is available
for withdrawal:
(i) immediately during the bank’s normal business hours;
or
(ii) at the end of a fixed-term period that does not exceed 3
months;
(c) the scheme invests at least 80% of its assets under 1 or more
arrangements by which the responsible entity of the scheme
can reasonably expect to realise the investment, at the market
value of the assets, within 10 days.
SIS Act means the Superannuation Industry (Supervision) Act
1993.
SIS Regulations means the Superannuation Industry (Supervision)
Regulations 1994.
sub-plan, in relation to a regulated superannuation fund, means a
segment of the fund comprising a member or members of the fund,
being a sub-plan that the trustee determines should be made.
successor fund has the same meaning as in the SIS Regulations.
superannuation entity has the same meaning as in the SIS Act.
superannuation interest has the same meaning as in the SIS Act.
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superannuation lump sum has the meaning given by
subsection 995-1(1) of the Income Tax Assessment Act 1997.
superannuation scheme means a complying superannuation fund
within the meaning of subsection 995-1(1) of the Income Tax
Assessment Act 1997.
superannuation-sourced money means money in relation to
which:
(a) the provider of a financial service knows that the money:
(i) will be paid to a person as a superannuation lump sum
by the trustee of a regulated superannuation fund; or
(ii) has been paid as an eligible termination payment (within
the meaning of these Regulations as in force
immediately before 1 July 2007) or as a superannuation
lump sum at any time during the previous 6 months; or
(b) the provider of the financial service ought reasonably to
know that fact.
trustee in relation to a superannuation scheme, includes a person
responsible for the administration and management of the scheme.
unrestricted non-preserved benefits means unrestricted
non-preserved benefits under:
(a) Subdivision 6.1.4 of the SIS Regulations; or
(b) Subdivision 4.1.4 of the RSA Regulations.
warrant means a financial product:
(a) that is:
(i) a derivative under section 761D of the Act; or
(ii) a financial product that would, apart from the effect of
paragraph 761D(3)(c) of the Act, be a derivative for
section 761D of the Act, and is excluded by that
paragraph only because:
(A) it is a security under paragraph (c) of the
definition of security in section 761A of the
Act; or
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(B) it is a legal or equitable right or interest
mentioned in subparagraph 764A(1)(b)(ii) of
the Act; or
(C) it is a legal or equitable right or interest
mentioned in subparagraph 764A(1)(ba)(ii) of
the Act; and
(b) that is transferable.
(2) In these Regulations, a reference to a form by number is a
reference to the form so numbered in Schedule 2.
1.0.02A Prescribed financial market
For the definition of prescribed financial market in section 9 of
the Act, the following financial markets are prescribed:
(a) Asia Pacific Exchange Limited;
(b) ASX Limited;
(c) Chi-X Australia Pty Ltd;
(d) National Stock Exchange of Australia Limited;
(e) SIM Venture Securities Exchange Ltd.
1.0.03 Prescribed forms (Act s 350)
(1) A form in Schedule 2 mentioned in an item in column 4 of
Schedule 1 is prescribed for the provision of the Act, or of these
Regulations, that is specified in the item in column 2.
Note: Under section 350 of the Act, a document that the Act requires to be
lodged with ASIC in a prescribed form must:
(a) if a form for the document is prescribed in these Regulations, be in that prescribed form; and
(b) if a form for the document is not prescribed in these Regulations but ASIC has approved a form for the document, be in that approved form.
(2) In a form, unless the contrary intention appears, a reference to a
Chapter, Part, Division, section, subsection, paragraph or
subparagraph is a reference to that Chapter, Part, Division, section,
subsection, paragraph or subparagraph of the Act.
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14 Corporations Regulations 2001
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1.0.03A Documents that must be in the prescribed form
A document mentioned in the table under a provision of the Act
mentioned in the table must be in the prescribed form.
Item Document Provision of the
Act
1A Certificate to the effect that all documents
accompanying a notice lodged under section 263 or 264
of the Act have been duly stamped as required by any
applicable law relating to stamp duty
Paragraph
265(4)(b)
1B Notice stating that a person other than the original
chargee has become the holder of a registrable charge on
property of a company
Subsection 268(1)
1C Notice setting out particulars of a variation in the terms
of a registrable charge on property of a company
Subsection 268(2)
1 Notice of appointment to administer a compromise or
arrangement
Subsection 415(1)
2 Notice that an order for the appointment of a receiver of
property has been obtained or of the appointment of a
receiver
Paragraph
427(1)(a)
3 Notice of the appointment of a person to enter into
possession or take control of the property of a
corporation
Paragraph
427(1A)(a)
4 Notice of entering into possession or taking control Paragraph
427(1B)(a)
5 Notice that the person has ceased to be a controller Paragraph
427(4)(a)
6 Written notice stating that a company is taken to have
passed a resolution to wind up the company
Paragraph
446A(5)(a)
7 Notice of the appointment of an administrator Paragraph
450A(1)(a)
8 Notice of failure to execute deed of company
arrangement
Paragraph 450C(a)
9 Notice of termination of deed of company arrangement Paragraph 450D(a)
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Item Document Provision of the
Act
10 Notice of filing of application to wind up a company Paragraph
470(1)(a)
11 Notice of making of order to wind up a company Paragraph
470(1)(b)
12 Notice of withdrawal or dismissal of application to wind
up a company
Paragraph
470(1)(c)
13 Return of the holding of a meeting with account attached Subsection 509(3)
or (4)
14 Statement in writing verifying an account or statement Paragraph
539(1)(a) or (b)
15 Written notice disclaiming property Subsection 568A(1)
16 Statement by a liquidator Subsection 1288(3)
or (5)
Note: Under section 350 of the Act, a document that the Act requires to be
lodged with ASIC in a prescribed form must:
(a) if a form for the document is prescribed in these Regulations, be in that prescribed form; and
(b) if a form for the document is not prescribed in these Regulations but ASIC has approved a form for the document, be in that approved form.
On 1 July 2007, forms for the documents mentioned in the table are
not prescribed in these Regulations.
1.0.03B Documents that must be lodged with ASIC
A document mentioned in an item in the table for a provision
mentioned in the item must be lodged:
(a) with ASIC; and
(b) if the document is mentioned for subsection 430(1) of the
Act—by a controller, within 7 days of the controller
receiving a report under that subsection.
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Item Document Provision of the
Act
1 Statement in writing in the prescribed form verifying a
report about the affairs of a company
Subsection 430(1)
or 475(1) or (2)
2 Report about the affairs of a company Subsection 430(1)
Note: Under section 350 of the Act, a document that the Act requires to be
lodged with ASIC in a prescribed form must:
(a) if a form for the document is prescribed in these Regulations, be in that prescribed form; and
(b) if a form for the document is not prescribed in these Regulations but ASIC has approved a form for the document, be in that approved form.
On 23 December 2004, forms for the documents mentioned in item 1
of the table are not prescribed in these Regulations.
1.0.03C Documents that must be in a form approved by ASIC
A document mentioned in the table under a provision of the Act
mentioned in the table must be in a form approved by ASIC (if a
form has been approved).
Item Document Provision of the Act
1 Statement about the company’s business, property,
affairs and financial circumstances
Subsection 438B(2)
2 Report about a company’s business, property, affairs
and financial circumstances
Paragraph
439A(4)(a)
3 Notice of termination of deed of company arrangement Paragraph 450D(b)
Note: The documents mentioned in the table are not required to be lodged
with ASIC under the Act, and are not documents to which section 350
of the Act applies.
1.0.04 Directions and instructions in forms
A form must be completed in accordance with the directions and
instructions specified in the form.
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1.0.05 Documents and information required by forms
(1) If a form requires:
(a) the lodging of a document; or
(b) the giving of information:
(i) by completing the form in the prescribed manner; or
(ii) by supplying or completing another document;
the document or information is taken to be the document or
information required for the provision of the Act or of these
Regulations for which the form is approved under
paragraph 350(1)(b) of the Act or included in Schedule 2.
(2) If the Act requires particulars to be provided by the giving of
information in a form, the particulars included in the form are
taken to be the particulars required:
(a) if the form is an approved form—for the provision of the Act
for which the form is approved under paragraph 350(1)(b) of
the Act; and
(b) if the form is a prescribed form—for the provision of the Act
for which the form is included in Schedule 2.
1.0.05A Lodgment with ASIC
(1) For the definition of lodge with ASIC in section 761A of the Act,
the definition relates to each provision of Chapter 7 of the Act that
includes the expression lodge with ASIC.
(2) For paragraph 1364(2)(c) of the Act:
(a) a statement that is to be given to ASIC in accordance with
subsection 912C(1) of the Act may be lodged with ASIC in
the prescribed form; and
(b) a report that is to be given to ASIC in accordance with
subsection 912D(1) of the Act may be lodged with ASIC in
the prescribed form; and
(c) written notice that is to be given to ASIC in accordance with
subsection 912D(2) of the Act may be lodged with ASIC in
the prescribed form; and
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(d) information that is to be given to ASIC in accordance with
subsection 912E(2) of the Act may be lodged with ASIC in
the prescribed form; and
(e) information that is to be provided to ASIC in accordance
with paragraph 913B(1)(ca) of the Act may be lodged with
ASIC in the prescribed form; and
(f) a document that is to be lodged with ASIC for Part 10.2 of
the Act must be lodged in the prescribed form.
1.0.06 Annexures accompanying forms
(1) In this regulation:
annexure includes a document that is with a form.
(2) An annexure to a form must:
(a) have an identifying mark; and
(b) be endorsed with the words:
‘This is the annexure of (insert the number of pages) pages
marked (insert an identifying mark) mentioned in the (insert
a description of the form) signed by (insert ‘me’ or ‘us’) and
dated (insert the date of signing)’; and
(c) be signed by each person signing the form to which the
document is annexed.
(3) The pages in an annexure must be numbered consecutively.
(4) If a form has a document annexed, the following particulars of the
annexure must be written on the form:
(a) the identifying mark; and
(b) the number of pages.
1.0.07 General requirements for documents
Unless ASIC otherwise approves, a document to be lodged must:
(a) be on white or light pastel colour paper:
(i) of international A4 size; and
(ii) of medium weight and good quality; and
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(b) be clearly printed or written in black or dark blue in a manner
that is permanent and will make possible a reproduction, by
photographic, computerised or other electronic means that is
satisfactory to ASIC; and
(c) not be a carbon copy or a copy reproduced by any spirit
duplication method; and
(d) subject to paragraph (h), have margins of not less than 10
millimetres on all sides; and
(e) if it comprises 2 or more sheets, be fastened together securely
in the top left-hand corner; and
(f) display on the first page of the document or, if the document
is a single sheet, on that sheet:
(i) subject to regulation 7.6.03:
(A) the ACN, ARBN or ARSN of the corporation
or managed investment scheme; or
(B) if the last 9 digits of its ABN are the same, and
in the same order, as the last 9 digits of its
ACN, ARBN or ARSN (if the corporation or
managed investment scheme has an ACN,
ARBN or ARSN)—its ABN; and
(ii) the name of the corporation or managed investment
scheme; and
(iii) the title of the document; and
(iv) the section number of the Act under which the
document is being lodged; and
(g) have the following information at the top left-hand of the first
sheet:
(i) registered agent number (if any); and
(ii) lodging party or agent name; and
(iii) address; and
(iv) telephone number; and
(v) facsimile number (if any); and
(vi) DX number and applicable suburb or city (if any); and
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20 Corporations Regulations 2001
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(h) at the top right-hand of the first sheet, have a blank space that
measures 35 millimetres from the top of the page and 65
millimetres from the right-hand side of the page; and
(j) if the document is a form relating to a no liability company,
be completed by inserting the words ‘No Liability’ in place
of the word ‘Limited’; and
(k) in the case of an unlimited company, have the word
‘Limited’ omitted; and
(l) if the document contains maps or charts on which areas have
been distinguished by colour, also distinguish those areas by
hatching, numbering or lettering.
1.0.08 Information to accompany financial documents lodged for
financial years
A document lodged under subsection 319(1) of the Act for a
financial year must be accompanied by the approved form setting
out the following information:
(a) if the disclosing entity is a company:
(i) the ACN of the company or, if the last 9 digits of its
ABN are the same, and in the same order, as the last 9
digits of its ACN, the ABN of the company; and
(ii) the dates on which the financial year to which the
document relates begins and ends; and
(iii) a statement of certification in accordance with
regulation 1.0.16; or
(b) if the disclosing entity is a body (other than a company):
(i) the ARBN of the body or, if the last 9 digits of its ABN
are the same, and in the same order, as the last 9 digits
of its ARBN, the ABN of the body; and
(ii) the dates on which the financial year to which the
document relates begins and ends; and
(iii) a statement of certification in accordance with
regulation 1.0.16; or
(c) if the disclosing entity is a registered scheme:
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(i) the ARSN of the scheme or, if the last 9 digits of its
ABN are the same, and in the same order, as the last 9
digits of its ARSN, the ABN of the scheme; and
(ii) the dates of the beginning and end of the half-year to
which the document relates; and
(iii) the name of the responsible entity of the scheme and the
name of the scheme; and
(iv) a statement of certification in accordance with
regulation 1.0.16.
1.0.09 Information to accompany financial documents etc lodged for
half-years
A document lodged under section 320 of the Act for a half-year
must be accompanied by the approved form setting out the
following information:
(a) if the disclosing entity is a company:
(i) the ACN of the company or, if the last 9 digits of its
ABN are the same, and in the same order, as the last 9
digits of its ACN, the ABN of the company; and
(ii) the dates on which the half-year to which the document
relates begins and ends; and
(iii) a statement of certification in accordance with
regulation 1.0.16; or
(b) if the disclosing entity is a body (other than a company):
(i) the ARBN of the body or, if the last 9 digits of its ABN
are the same, and in the same order, as the last 9 digits
of its ARBN, the ABN of the body; and
(ii) the dates on which the half-year to which the document
relates begins and ends; and
(iii) a statement of certification in accordance with
regulation 1.0.16; or
(c) if the disclosing entity is a registered scheme:
(i) the ARSN of the scheme or, if the last 9 digits of its
ABN are the same, and in the same order, as the last 9
digits of its ARSN, the ABN of the scheme; and
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Chapter 1 Introductory
Part 1.0 Miscellaneous
Regulation 1.0.10
22 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) the dates of the beginning and end of the half-years to
which the document relates; and
(iii) the name of the responsible entity of the scheme and the
name of the scheme; and
(iv) a statement of certification in accordance with
regulation 1.0.16.
1.0.10 Continuous disclosure notices
A document lodged under section 1001B of the Act must be
accompanied by Form 1003 setting out the following information:
(a) if the disclosing entity is a body:
(i) the ACN or ARBN of the body or, if the last 9 digits of
its ABN are the same, and in the same order, as the last
9 digits of its ACN or ARBN, the ABN of the body; and
(ii) a statement of certification in accordance with
regulation 1.0.16; or
(b) if the disclosing entity is a registered scheme:
(i) the ARSN of the scheme or, if the last 9 digits of its
ABN are the same, and in the same order, as the last 9
digits of its ARSN, the ABN of the scheme; and
(ii) the name of the responsible entity of the scheme and the
name of the scheme; and
(iii) a statement of certification in accordance with
regulation 1.0.16.
1.0.11 Certain documents to be signed by personal representatives
etc
Unless these Regulations state otherwise, a document relating to a
corporation that is a proprietary company to which section 201F of
the Act applies that does not have a director or secretary must be
signed by the personal representative or trustee mentioned in that
section.
Federal Register of Legislative Instruments F2015C00303
Introductory Chapter 1
Miscellaneous Part 1.0
Regulation 1.0.12
Corporations Regulations 2001 23
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
1.0.12 Form of notice of resolution
A copy of a resolution lodged under subsection 136(5), 157(2),
162(3), 246F(3), 254H(4), 254N(2), 256C(3), 260B(7), 461(2),
491(2), 506(1B), 507(11) or 510(1A) of the Act must be set out in,
or annexed to, a notice in accordance with the approved form.
1.0.13 Time for lodging documents
If:
(a) a document must be lodged; and
(b) the period within which the document must be lodged is not
prescribed;
the document must be lodged:
(c) if paragraph (d) does not apply—within one month; or
(d) if the document is to be lodged by a foreign company and
ASIC allows a further period because of special
circumstances—that further period;
after the happening of the event to which the document relates.
1.0.14 Address of registered office or place of business
If notice must be given under these Regulations of:
(a) the address of an office or a proposed office; or
(b) the address of a place of business;
of a corporation or a person, the notice must include:
(c) if applicable, the number of the room in which; and
(d) if applicable, the number of the floor or level on which; and
(e) the place in Australia in which;
the office or place of business is, or is to be, situated.
1.0.15 Affidavits and statements in writing
(1) An affidavit or statement in writing must be sworn or made, on
behalf of a corporation, by a director or a secretary of the
corporation.
Federal Register of Legislative Instruments F2015C00303
Chapter 1 Introductory
Part 1.0 Miscellaneous
Regulation 1.0.16
24 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) If an affidavit is sworn outside Australia, the affidavit is sufficient
if it appears to be sworn in accordance with the requirements of the
law of that place.
1.0.16 Certification and verification of certain documents
A document relating to a corporation or managed investment
scheme that is to be certified or verified must be certified or
verified in the approved form and signed by:
(a) a director or secretary of the corporation, or of the
responsible entity of the scheme, who resides in Australia or
an external territory; or
(b) an agent of the corporation or entity or, if the agent is a
company, a director or secretary of the company who resides
in Australia or an external territory.
1.0.17 Documents signed or sworn in accordance with the rules
(1) A document that is signed in accordance with the rules is taken to
have been signed in accordance with regulation 1.0.11.
(2) An affidavit or statement that is sworn or made in accordance with
the rules is taken to have been sworn or made in accordance with
regulation 1.0.15.
1.0.18 Prescribed provisions (Act s 53)
For section 53 of the Act, the following provisions of the Act are
prescribed:
(a) section 657A;
(b) paragraphs 12(2)(b) and (c) of the Act.
1.0.20 Copies of orders to be lodged
A person who obtains an order of the Court under or for:
(c) subsection 266(4); or
(d) section 274; or
(e) subsection 484(1); or
Federal Register of Legislative Instruments F2015C00303
Introductory Chapter 1
Miscellaneous Part 1.0
Regulation 1.0.21
Corporations Regulations 2001 25
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ea) paragraph 484(2)(c); or
(f) section 583; or
(g) section 585; or
(h) section 601ND; or
(j) section 1322;
of the Act, must lodge an office copy of the order with ASIC.
1.0.21 Identification of lodged orders
If an order or copy of an order of a court is lodged with ASIC, it
must be accompanied by a cover page in Form 105 identifying the
legislative provision or other law under which the order was made
and the nature of the order.
1.0.22 Territorial application of Act
For subsection 5(9) of the Act, each of the external Territories is
included in this jurisdiction for the purposes of Chapter 7 of the
Act (other than Parts 7.2 to 7.5 and Part 7.11) in relation to:
(a) a superannuation product within the meaning of section 761A
of the Act; and
(b) an RSA product within the meaning of section 761A of the
Act; and
(c) a financial service that relates to a superannuation product
within the meaning of section 761A of the Act; and
(d) a financial service that relates to an RSA product within the
meaning of section 761A of the Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 1 Introductory
Part 1.1 Prescribed amounts
Regulation 1.1.01
26 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 1.1—Prescribed amounts
1.1.01 Prescribed amounts
The amount specified in an item in column 3 of Schedule 4 is
prescribed in relation to the matter specified in the item in column
2.
Federal Register of Legislative Instruments F2015C00303
Introductory Chapter 1
Interpretation Part 1.2
General Division 1
Regulation 1.2.01
Corporations Regulations 2001 27
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 1.2—Interpretation
Division 1—General
1.2.01 Remuneration recommendations (Act s 9B)
For paragraph 9B(2)(f) of the Act, a recommendation, or advice or
information, provided in relation to one or more members of the
key management personnel for a company by an employee of a
company within the same consolidated entity, is not a remuneration
recommendation.
Federal Register of Legislative Instruments F2015C00303
Chapter 1 Introductory
Part 1.2A Disclosing entities
Regulation 1.2A.01
28 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 1.2A—Disclosing entities
1.2A.01 Securities declared not to be ED securities
For section 111AJ of the Act, the following securities are declared
not to be ED securities:
(a) securities of a body that, under the listing rules of the
Australian Stock Exchange Limited, is an exempt foreign
entity; or
(b) securities that are quoted on Australian Bloodstock Exchange
Limited.
1.2A.02 Foreign companies issuing securities under foreign scrip
offers etc exempt from disclosing entity provisions
(1) For section 111AS of the Act, a foreign company is exempt from
the disclosing entity provisions in respect of ED securities under
section 111AG of the Act if:
(a) the company issues the securities in connection with a
foreign takeover bid or foreign scheme of arrangement; and
(b) the securities issued are, at the time of issue, securities in a
class of securities quoted on an approved foreign exchange;
and
(c) the terms and conditions of the issue to citizens and
Australian permanent residents are the same as those
applying to each other person receiving securities that are in
the same class; and
(d) the same notices, documents or other information (or, where
applicable, an English translation of these) (modified, if
necessary, to include any additional information for the
purposes of complying with Chapter 6D of the Act) are given
to Australian citizens or permanent residents as are given to
each other person; and
(e) the notices, documents and other information are given to
Australian citizens and permanent residents at the same time,
Federal Register of Legislative Instruments F2015C00303
Introductory Chapter 1
Disclosing entities Part 1.2A
Regulation 1.2A.02
Corporations Regulations 2001 29
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
or as soon as practicable after, they are given to those other
persons; and
(f) in relation to the issue—the company complies with all
legislative and stock exchange requirements in the place in
which is located:
(i) the approved foreign exchange; or
(ii) if more than one—the principal approved exchange;
on which the company’s securities are quoted.
(2) In this regulation:
approved foreign exchange includes:
(a) American Stock Exchange Inc.;
(b) New York Stock Exchange Inc.;
(c) New Zealand Stock Exchange;
(d) The Stock Exchange of Hong Kong Ltd;
(e) Stock Exchange of Singapore Limited;
(f) The Amsterdam Stock Exchange;
(g) the Frankfurt Stock Exchange;
(h) The International Stock Exchange of the United Kingdom
and the Republic of Ireland Limited;
(i) the Milan Stock Exchange;
(j) the NASDAQ National Market;
(k) the Paris Bourse;
(l) the Tokyo Stock Exchange;
(m) the Toronto Stock Exchange;
(n) the Zurich Stock Exchange.
foreign scheme of arrangement means a compromise or
arrangement that is subject to court approval under
subsection 411(6) of the Act, between:
(a) a foreign company and a class of its creditors; or
(b) a foreign company and a class of its members.
foreign takeover bid means a bid to acquire some or all of the
securities of:
Federal Register of Legislative Instruments F2015C00303
Chapter 1 Introductory
Part 1.2A Disclosing entities
Regulation 1.2A.03
30 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) all holders of a class of securities of a foreign company; or
(b) all holders of those securities except the bidder or the bidder
and associates of the bidder.
1.2A.03 Foreign companies issuing securities under employee share
scheme exempt from the disclosing entity provisions
(1) For section 111AS of the Act, a foreign company is exempt from
the disclosing entity provisions in respect of an offer of shares in
the company for issue or sale:
(a) that is made to employees of the company, or of an
associated body corporate, under an employee share scheme;
and
(b) in relation to which a disclosure document is lodged with
ASIC.
(2) Subregulation (1) is not affected by any action of an employee, the
result of which is that another person who is not an employee
acquires an interest in a share issued under the employee share
scheme.
(3) For this regulation:
(a) an employee share scheme is a scheme under which a
company offers for issue or sale shares (or options over
issued shares) in the company only to a person who is a
full-time or part-time director or employee of the company or
of an associated body corporate when the offer is made; and
(b) a body corporate is an associated body corporate in relation
to a foreign company if:
(i) the body corporate is related to the company within the
meaning of section 50 of the Act; or
(ii) the body corporate is entitled to at least 20% of the
voting shares of the company; or
(iii) the company is entitled to at least 20% of the voting
shares of the body corporate.
Federal Register of Legislative Instruments F2015C00303
Registration of companies Chapter 2A
Size of partnerships or associations (Act s 115(2)) Part 2A.1
Regulation 2A.1.01
Corporations Regulations 2001 31
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 2A—Registration of companies
Part 2A.1—Size of partnerships or associations
(Act s 115(2))
2A.1.01 Size of partnerships or associations
(1) For paragraph 115(1)(b) of the Act, the number prescribed for a
kind of partnership or association is the number specified in the
following table for that kind of partnership or association:
Item Kind of partnership or association Number
1 (a) Actuaries, medical practitioners, patent
attorneys, sharebrokers, stockbrokers or
trademark attorneys
(b) Partnerships or associations of the kind specified
in subregulation (2)
50
2 Architects, pharmaceutical chemists or veterinary
surgeons
100
3 Legal practitioners 400
4 Accountants 1 000
(2) For paragraph (b) of item 1 of the table in subregulation (1), the
partnership or association is one that:
(a) has as its primary purpose collaborative scientific research;
and
(b) includes as members:
(i) at least 1 university; and
(ii) at least 1 private sector participant;
whether or not it also includes government agencies or
publicly funded research bodies.
(3) In subregulation (2):
Federal Register of Legislative Instruments F2015C00303
Chapter 2A Registration of companies
Part 2A.1 Size of partnerships or associations (Act s 115(2))
Regulation 2A.1.01
32 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
private sector participant means an entity that obtains the majority
of its revenue from sources other than Commonwealth, State or
Territory appropriations.
Federal Register of Legislative Instruments F2015C00303
Registration of companies Chapter 2A
Change of place of registration of company (Act s 119A(3)) Part 2A.2
Regulation 2A.2.01
Corporations Regulations 2001 33
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 2A.2—Change of place of registration of
company (Act s 119A(3))
2A.2.01 Approval of application for change of place of registration
(1) An application to ASIC for a change in the State or Territory in
this jurisdiction in which a company is taken to be registered must
be approved by a special resolution of the company.
(2) A copy of the special resolution must be given to ASIC within 14
days after the day on which it is passed.
2A.2.02 Special resolution may be set aside by Court order
(1) Within 28 days after the passing of a special resolution approving
an application for a change in the State or Territory in this
jurisdiction in which a company is taken to be registered, a
member, or members, of the company having at least 10% of the
votes capable of being cast on the special resolution may apply in
writing to the Court to have the resolution set aside.
(2) A member may, with the written consent of other members
mentioned in subregulation (1), apply on their behalf to the Court
under that subregulation.
(3) The Court may order the special resolution to be set aside if the
Court is satisfied that it would unfairly prejudice the applicant or
applicants if the State or Territory in which the company is taken to
be registered were changed in accordance with the resolution.
(4) The company must give ASIC a copy of the Court order within 14
days after the day on which it is made.
Federal Register of Legislative Instruments F2015C00303
Chapter 2A Registration of companies
Part 2A.2 Change of place of registration of company (Act s 119A(3))
Regulation 2A.2.03
34 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
2A.2.03 Application for change of place of registration
(1) A company may, in accordance with a special resolution of the
company, apply to ASIC for a change in the State or Territory in
this jurisdiction in which the company is taken to be registered.
(2) The application must be in accordance with the approved form.
2A.2.04 Change of place of registration
(1) On application under regulation 2A.2.03, ASIC must alter the
details of the company’s registration to show the change in the
State or Territory in this jurisdiction in which the company is taken
to be registered if:
(a) the company has passed a special resolution approving the
application for the change; and
(b) the Court has not made an order setting aside the special
resolution; and
(c) the relevant Minister of the State or Territory in which the
company is taken to be registered has approved the change
under subparagraph 119A(3)(a)(i) of the Act; and
(d) ASIC is not aware of any other reason why the change
should not be made.
(2) ASIC must not alter details of the company’s registration until 28
days after the day on which the application was made.
(3) ASIC must give the company a new certificate of registration after
it alters details of the company’s registration.
Federal Register of Legislative Instruments F2015C00303
Basic features of a company Chapter 2B
Names Part 2B.6
Regulation 2B.6.01
Corporations Regulations 2001 35
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 2B—Basic features of a company
Part 2B.6—Names
2B.6.01 Availability of names (Act s 147)
(1) For paragraphs 147(1)(a) and (b) of the Act, the rules for
ascertaining whether a name is identical with another name are the
rules set out in Part 1 of Schedule 6.
(2) For paragraph 147(1)(c) of the Act, a name is unacceptable for
registration under the regulations if it is unacceptable under the
rules set out in Part 2 of Schedule 6.
2B.6.02 Consents required for use of certain letters, words and
expressions
(1) This regulation applies to a name if:
(a) the name:
(i) is the subject of an application for registration of a name
under section 117 of the Act; or
(ii) is the subject of an application for reservation of a name
under section 152 of that Act; or
(iii) for an application for a change of name under
section 157 of the Act—is the name to which the
previous name is to be changed; and
(b) the name is, uses or includes:
(i) letters, or a word or expression, specified in column 2 of
an item in Part 4 or 5 of Schedule 6; or
(ii) other letters, or another word or expression (whether or
not in English), that is of like import to the letters, word
or expression specified in the item.
(2) In paragraph (1)(b), a reference to letters, a word or an expression
being used includes a reference to the letters, word or expression
being used:
Federal Register of Legislative Instruments F2015C00303
Chapter 2B Basic features of a company
Part 2B.6 Names
Regulation 2B.6.03
36 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) as part of another word or expression; or
(b) in combination with other words or letters, or other symbols.
(3) However, this regulation does not apply to use of the letters ADI as
part of another word.
Example: The letters adi appear in the word traditional. This regulation does not apply to use of the word traditional.
(4) If an item in Part 4 of Schedule 6 applies in relation to the name,
the application must be accompanied by the written consent of the
Minister who is specified in the item.
(5) If an item in Part 5 of Schedule 6 applies in relation to the name,
the application must be accompanied by the written consent of the
public authority, instrumentality or agency that is specified in the
item.
2B.6.03 Exemptions from requirement to set out name and ACN on
certain documents (Act s 155)
For section 155 of the Act, the exemptions provided for in
Schedule 7 apply in relation to the requirements of
subsection 153(2) of the Act.
Federal Register of Legislative Instruments F2015C00303
Registers Chapter 2C
Registers generally Part 2C.1
Location of register Division 2C.1.1
Regulation 2C.1.01
Corporations Regulations 2001 37
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 2C—Registers
Part 2C.1—Registers generally
Division 2C.1.1—Location of register
2C.1.01 Form of notice
A notice to be lodged under subsection 172(2) of the Act must be
in a form approved by ASIC (if a form has been approved).
Federal Register of Legislative Instruments F2015C00303
Chapter 2C Registers
Part 2C.1 Registers generally
Division 2C.1.2 Right to inspect and get copies of register
Regulation 2C.1.02
38 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2C.1.2—Right to inspect and get copies of register
2C.1.02 Form of register
For subsection 173(3) of the Act, a copy of a register must be
provided as a delimited text file:
(a) produced by a commercially available spreadsheet or
database application; and
(b) copied onto a CD-ROM or a USB portable memory device.
2C.1.03 Improper purposes for getting copy of register
For paragraph 173(3A)(b) of the Act, the following purposes are
prescribed:
(a) soliciting a donation from a member of a company;
(b) soliciting a member of a company by a person who is
authorised to assume or use the word stockbroker or
sharebroker in accordance with section 923B of the Act;
(c) gathering information about the personal wealth of a member
of a company;
(d) making an offer that satisfies paragraphs 1019D(1)(a) to (d)
of the Act;
(e) making an invitation that, were it an offer to purchase a
financial product, would be an offer that satisfies paragraphs
1019D(1)(a) to (d) of the Act.
Note: See subsection 1019D(1) of the Act for a description of unsolicited
offers to purchase financial products off-market.
2C.1.04 Information to be included in application for copy of
register
For paragraph 173(3A)(c) of the Act, the information that must be
contained in an application is the name and address of the
applicant.
Note: An application must also state the purpose for accessing a copy of a
register—see subsection 173(3A) of the Act.
Federal Register of Legislative Instruments F2015C00303
Registers Chapter 2C
Registers generally Part 2C.1
Use of information on registers by bodies corporate Division 2C.1.3
Regulation 2C.1.05
Corporations Regulations 2001 39
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2C.1.3—Use of information on registers by bodies
corporate
2C.1.05 Contact with members after failure to provide copy of
register
(1) This regulation applies if a body corporate mentioned in
regulation 12.8.02 has failed to give a person a copy of the part of
the register of members of the body who hold member shares:
(a) within 28 days after the person’s request for a copy; or
(b) if a longer period has been allowed by ASIC—within the
longer period.
(2) If the person:
(a) makes a statutory declaration that the person intends to use
information that is contained in that part of the register:
(i) for the purpose of contacting members of the body, or
sending material to members of the body, for a purpose
mentioned in subsection 177(1A) of the Act; and
(ii) in a way that does not contravene that subsection or
another law; and
(b) gives the statutory declaration to the body corporate; and
(c) pays the reasonable costs of contacting the members, or
sending material to the members;
the body corporate must do everything that is reasonably possible
to arrange for the members to be contacted, or for the material to
be sent to the members, on the person’s behalf by a third party
service provider nominated by the body corporate.
(3) If the body corporate believes on reasonable grounds that the
person intends to use information that is contained in that part of
the register:
(a) for a purpose that is not in accordance with
subparagraph (2)(a)(i); or
(b) in a way that is not in accordance with
subparagraph (2)(a)(ii);
Federal Register of Legislative Instruments F2015C00303
Chapter 2C Registers
Part 2C.1 Registers generally
Division 2C.1.3 Use of information on registers by bodies corporate
Regulation 2C.1.05
40 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
the body corporate is not required to arrange for the members to be
contacted or for the material to be sent to the members on the
person’s behalf, and may terminate any existing arrangement.
(4) The arrangements made by the body corporate must ensure that, to
the extent reasonably possible:
(a) the details, from the register of members, of each member to
whom material is to be sent, or with whom contact is to be
made, will be provided to the third party service provider
within 14 days after the person pays the costs mentioned in
subregulation (2); and
(b) a copy of any material that is to be sent to a member will be
provided to the third party service provider within 28 days
after the person provides the material to the body corporate;
and
(c) if material is not to be sent to a member—written details of
the contact that is to be made with a member must be
provided to the third party service provider within 28 days
after the person provides the written details to the body
corporate; and
(d) for any material that is to be sent to a member—the material
will be sent to the member within 14 days after the body
corporate provides the material to the third party service
provider; and
(e) if material is not to be sent to a member—contact will be
made with the member within 14 days after the body
corporate provides, to the third party service provider, the
written details of the contact that is to be made with the
member.
(5) An arrangement made under subregulation (2) must:
(a) allow for contact to be made, or material to be sent, for a
period of 6 months after the period mentioned in
subregulation (1); and
(b) require the person to pay the reasonable costs of contacting
the members or sending material to the members to be paid
on each occasion before the contact is made or the material is
sent.
Federal Register of Legislative Instruments F2015C00303
Registers Chapter 2C
Registers generally Part 2C.1
Use of information on registers by bodies corporate Division 2C.1.3
Regulation 2C.1.05
Corporations Regulations 2001 41
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(6) A reference in subregulation (1) to the register of members of a
body corporate who hold member shares includes a reference to:
(a) the register of members of a body corporate that is a
company limited by guarantee; and
(b) the register of members of a body corporate limited by shares
and guarantee, who do not hold shares in the body.
Federal Register of Legislative Instruments F2015C00303
Chapter 2D Officers and employees
Part 2D.2 Restrictions on indemnities, insurance and termination payments
Division 2D.2.2 Termination payments
Regulation 2D.2.01
42 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 2D—Officers and employees
Part 2D.2—Restrictions on indemnities, insurance
and termination payments
Division 2D.2.2—Termination payments
2D.2.01 Meaning of base salary
(1) For the definition of base salary in section 9 of the Act, the matters
specified in the following table are base salary.
Item Matter
1 The components of a short-term employee benefit that:
(a) are not dependent on the satisfaction of a performance condition; and
(b) are specified in paragraphs (a), (c) and (d) of column 3 of item 6 in the table
in subregulation 2M.3.03(1); and
(c) are paid during the relevant period
2 A superannuation contribution that:
(a) is not dependent on the satisfaction of a performance condition; and
(b) is paid during the relevant period
3 A share-based payment that:
(a) is not dependent on the satisfaction of a performance condition; and
(b) is specified in column 3 of item 11 in the table in subregulation 2M.3.03(1);
and
(c) is paid during the relevant period
4 A liability or prospective liability to pay tax in respect of a fringe benefit taxable
amount under:
(a) the Fringe Benefits Tax Assessment Act 1986; or
(b) the Fringe Benefits Tax Act 1986;
that relates to the provision of a matter specified in item 1, 2 or 3
(2) For subregulation (1):
Federal Register of Legislative Instruments F2015C00303
Officers and employees Chapter 2D
Restrictions on indemnities, insurance and termination payments Part 2D.2
Termination payments Division 2D.2.2
Regulation 2D.2.02
Corporations Regulations 2001 43
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) if a person has held an office in relation to a company:
(i) throughout a period of more than 12 months; or
(ii) throughout a number of periods of more than 12 months
in total;
the relevant period for that person is the last 12 months of
that period or the last 12 months of the total period; and
(b) if a person has held an office in relation to a company:
(i) throughout a period of 12 months or less; or
(ii) throughout a number of periods of 12 months or less in
total;
the relevant period for that person is that period or the total
period.
2D.2.02 Meaning of benefit
(1) For paragraph 200AB(1)(e) of the Act, each of the following things
is specified:
(a) any kind of pension, other than a pension paid from a
superannuation fund or a superannuation annuity (whether it
is paid from an Australian or a foreign fund);
(b) an amount paid as a voluntary out-of-court settlement in a
matter relating to the termination of employment;
(c) a payment:
(i) that is made as part of a restrictive covenant,
restraint-of-trade clause or non-compete clause
(however described); and
(ii) the value of which, when added to the value of all other
payments (if any) already made or payable in
connection with the person’s retirement from board or
managerial offices in the company and related bodies
corporate, exceeds the payment limit set by
section 200G of the Act.
Note: Subsection 200AB(1) of the Act provides that a benefit includes
specified things. Paragraph 200AB(1)(e) of the Act provides that a
benefit includes a thing specified in regulations. Things that are not
specified in subsection 200AB(1) of the Act or subregulation (1) may
also be benefits for the purposes of the Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 2D Officers and employees
Part 2D.2 Restrictions on indemnities, insurance and termination payments
Division 2D.2.2 Termination payments
Regulation 2D.2.02
44 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) For subsection 200AB(2) of the Act, each of the following things is
specified:
(a) a deferred bonus, including a benefit attributable to:
(i) the release of the deferred bonus from a restriction
relating to death or incapacity; or
(ii) the investment of the deferred bonus; or
(iii) another change to the value of the deferred bonus;
(b) a payment from a defined benefits superannuation scheme
that was in existence when this regulation commenced;
(c) a genuine superannuation contribution that is paid by an
employer or employee on or after the commencement of this
regulation;
(d) genuine accrued benefits that are payable under a law within
the meaning of section 200H of the Act;
(e) a payment made under a requirement imposed by a law of
another country;
(f) a reasonable payment that is made:
(i) in accordance with a policy of the company or body that
applies to all employees; and
(ii) as a result of a genuine redundancy; and
(iii) having regard to the length of a person’s service in an
office or position;
(g) a payment from a prescribed superannuation fund due to
death or incapacity.
Example for paragraph (d): A payment of annual leave, long service leave or sick leave.
Note: Subsection 200AB(2) of the Act provides that a benefit does not
include a thing specified in regulations. Things that are not specified
in subregulation (2) may also not be benefits for the purposes of the
Act.
(3) In this regulation:
deferred bonus includes an amount, or property, that:
(a) is earned by, accrued by or allocated to a person as
remuneration in respect of a period of employment before the
person’s retirement; and
Federal Register of Legislative Instruments F2015C00303
Officers and employees Chapter 2D
Restrictions on indemnities, insurance and termination payments Part 2D.2
Termination payments Division 2D.2.2
Regulation 2D.2.03
Corporations Regulations 2001 45
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) is not paid, provided or released to the person at the time at
which it is earned, accrued or allocated.
prescribed superannuation fund has the meaning given by
section 200B of the Act.
2D.2.03 When benefit given in connection with retirement from an
office or a position
(1) For subsection 200A(1A) of the Act, each of the following
circumstances is specified in relation to a benefit:
(a) circumstances in which the benefit is the automatic vesting of
share-based payments for a person on or as a result of
retirement from an office or a position;
(b) circumstances in which the benefit is the accelerated vesting
of share-based payments for a person on or as a result of
retirement from an office or a position; and
(c) circumstances in which the benefit is a payment made to a
person in lieu of the giving of notice of termination.
Note: Subsection 200A(1A) of the Act provides that a benefit is given in
connection with a person’s retirement from an office or a position if
the benefit is given in circumstances specified in regulations.
(2) For paragraph 200F(1)(b) of the Act, a benefit requires shareholder
approval:
(a) if it:
(i) is a deferred bonus under paragraph 2D.2.02(2)(a); and
(ii) is subject to automatic or accelerated vesting under
subregulation (1); and
(iii) exceeds the payment limit set by section 200G of the
Act; and
(b) if it is not a benefit attributable to the release of a deferred
bonus from a restriction due to death or incapacity.
Federal Register of Legislative Instruments F2015C00303
Chapter 2D Officers and employees
Part 2D.6 Disqualification from managing corporations
Division 2D.6.1 Automatic disqualification (Act s 206B)
Regulation 2D.6.01
46 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 2D.6—Disqualification from managing
corporations
Division 2D.6.1—Automatic disqualification (Act s 206B)
2D.6.01 Prescribed foreign jurisdictions (Act s 206B(7))
For section 206B of the Act, a foreign country, or part of a foreign
country, mentioned in the following table is prescribed.
Item Country or part of country
1 New Zealand
Federal Register of Legislative Instruments F2015C00303
Officers and employees Chapter 2D
Ban on hedging remuneration of key management personnel Part 2D.7
Regulation 2D.7.01
Corporations Regulations 2001 47
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 2D.7—Ban on hedging remuneration of key
management personnel
2D.7.01 Hedging arrangements (Act s 206J(3))
(1) For subsection 206J(3) of the Act, an arrangement in the following
table is to be treated as an arrangement that has the effect of
limiting the exposure of a member mentioned in
subsection 206J(1) of the Act to the risk mentioned in that
subsection.
Item Arrangement
1 A put option on incentive remuneration
2 A short position on shares that forms part of incentive remuneration
3 An income protection insurance contract in which the insurable risk event
affects the financial value of remuneration or equity or an equity-related
instrument for the key management personnel
(2) For subsection 206J(3) of the Act, an arrangement in the following
table is not to be treated as an arrangement that has the effect of
limiting the exposure of a member mentioned in
subsection 206J(1) of the Act to the risk mentioned in that
subsection.
Item Arrangement
1 An income protection insurance contract in which the insurable risk event is the
death, incapacity or illness of any of the key management personnel
2 A foreign currency risk arrangement
(3) In this regulation, a short position is a position in relation to shares
in a listed entity where the quantity of the shares that a person has
is less than the quantity of the shares that the person has an
obligation to deliver.
Federal Register of Legislative Instruments F2015C00303
Chapter 2D Officers and employees
Part 2D.7 Ban on hedging remuneration of key management personnel
Regulation 2D.7.01
48 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) In subregulation (3), the person has the shares if:
(a) the person is holding the shares on the person’s own behalf;
or
(b) another person is holding the shares on the person’s behalf;
or
(c) the person has entered into an agreement to buy the shares
but has not received the shares; or
(d) the person has vested title in the shares in a borrower, or in
an entity nominated by the borrower, under a securities
lending arrangement.
(5) In subregulation (3), the shares that the person has an obligation to
deliver are the shares that the person:
(a) has an obligation to deliver under a sale agreement where the
shares have not been delivered; or
(b) has an obligation to vest title in a lender under a securities
lending arrangement; or
(c) has any other non-contingent legal obligation to deliver.
Federal Register of Legislative Instruments F2015C00303
Related party transactions Chapter 2E
Regulation 2E.1.01
Corporations Regulations 2001 49
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 2E—Related party transactions
2E.1.01 Small amounts given to related entity
For subsection 213(1) of the Act, $5 000 is prescribed.
Federal Register of Legislative Instruments F2015C00303
Chapter 2G Meetings
Part 2G.2 Meetings of members of companies
Division 6 Proxies and body corporate representatives
Regulation 2G.2.01
50 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 2G—Meetings
Part 2G.2—Meetings of members of companies
Division 6—Proxies and body corporate representatives
2G.2.01 Authentication of appointment of proxy (Act s 250A)
(1) For subsection 250A(1) of the Act, an electronic authentication of
an appointment of a proxy must include:
(a) a method of identifying the member; and
(b) an indication of the member’s approval of the information
communicated.
(2) If a member appoints a proxy by e-mail or Internet-based voting:
(a) the member must be identified by personal details (for
example, the member’s name, address and date of birth); and
(b) the member’s approval of the information communicated
must be communicated by a form of security protection (for
example, the entering of a confidential identification number
such as a shareholder registration number or holder
identification number).
Federal Register of Legislative Instruments F2015C00303
Charges Chapter 2K
Registration Part 2K.2
Regulation 2K.2.01
Corporations Regulations 2001 51
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 2K—Charges
Part 2K.2—Registration
2K.2.01 Lien or charge on crop or wool, or stock mortgage, that is a
registrable security: prescribed law—subsection 262(5) of
the Act
For subsection 262(5) of the Act, each of the following laws is a
prescribed law of a State or Territory:
NEW SOUTH WALES
Parts II and III of the Liens on Crops and Wool and Stock
Mortgages Act 1898
Parts 2 and 3 (to the extent that Part 3 applies to agricultural goods
mortgages) of the Security Interests in Goods Act 2005
VICTORIA
Parts VII and VIII of the Instruments Act 1958
QUEENSLAND
Part II (being provisions that apply in relation to registration of
instruments that are stock mortgages, liens upon crops and liens on
wool) and Part IV (other than section 24) of the Bills of Sale and
Other Instruments Act 1955
The Liens on Crops of Sugar Cane Act 1931
WESTERN AUSTRALIA
Sections 7 and 8 and Parts IX, X and XI of the Bills of Sale Act
1899
Federal Register of Legislative Instruments F2015C00303
Chapter 2K Charges
Part 2K.2 Registration
Regulation 2K.2.02
52 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
SOUTH AUSTRALIA
Liens on Fruit Act, 1923
Stock Mortgages and Wool Liens Act, 1924
TASMANIA
Sections 36 of the Bills of Sale Act 1900
Stock, Wool and Crop Mortgages Act 1930
AUSTRALIAN CAPITAL TERRITORY
Parts IV and V of the Instruments Act 1933.
2K.2.02 Time period for the provisional registration of charges
For paragraph 265(5)(b) of the Act, the period in which a
certificate to the effect set out in paragraph 265(4)(b) of the Act
must be produced to ASIC is 90 days after the notice is lodged.
2K.2.03 Charge that is a registrable security: specified law—
paragraphs 273A(4)(b), 273B(3)(b) and 273C(3)(b) of the
Act
For paragraphs 273A(4)(b), 273B(3)(b) and 273C(3)(b) of the Act
the following law is a specified law of a State or Territory:
NEW SOUTH WALES
Security Interests in Goods Act 2005
Federal Register of Legislative Instruments F2015C00303
Debentures Chapter 2L
Duties of borrower Part 2L.2
Regulation 2L.2.01
Corporations Regulations 2001 53
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 2L—Debentures
Part 2L.2—Duties of borrower
2L.2.01 Register relating to trustees for debenture holders
(1) For subsection 283BCA(2) of the Act, ASIC must enter the
following details in the register in relation to a trustee for
debenture holders:
(a) the name and address of the trustee;
(b) either:
(i) if the trustee has an ACN—the trustee’s ACN; or
(ii) the trustee’s ABN;
(c) the name and address of the borrower who appointed the
trustee;
(d) the name of the trust for which the trustee has been appointed
to act;
(e) the day the trust deed was executed.
(2) If ASIC receives a notice from a borrower under
subsection 283BC(2) of the Act that the trustee has revoked the
trust deed, it must amend the register by removing the details
entered on the register in relation to the trustee.
Federal Register of Legislative Instruments F2015C00303
Chapter 2M Financial reports and audit
Part 2M.3 Financial reporting
Division 1 Annual financial reports and directors’ reports
Regulation 2M.3.01
54 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 2M—Financial reports and audit
Part 2M.3—Financial reporting
Division 1—Annual financial reports and directors’ reports
2M.3.01 Disclosures required by notes to consolidated financial
statements—annual financial reports (Act s 295)
(1) For paragraph 295(3)(a) of the Act, if paragraph 295(2)(b) of the
Act applies to a parent entity, the following disclosures are
required in the notes to the financial statements of the consolidated
entity:
(a) current assets of the parent entity;
(b) total assets of the parent entity;
(c) current liabilities of the parent entity;
(d) total liabilities of the parent entity;
(e) shareholders’ equity in the parent entity separately showing
issued capital and each reserve;
(f) profit or loss of the parent entity;
(g) total comprehensive income of the parent company;
(h) details of any guarantees entered into by the parent entity in
relation to the debts of its subsidiaries;
(i) details of any contingent liabilities of the parent entity;
(j) details of any contractual commitments by the parent entity
for the acquisition of property, plant or equipment;
(k) comparative information for the previous period for each of
paragraphs (a) to (j).
(2) The disclosures in subregulation (1) must be calculated in
accordance with accounting standards in force in the financial year
to which the disclosure relates.
(3) In this regulation:
Federal Register of Legislative Instruments F2015C00303
Financial reports and audit Chapter 2M
Financial reporting Part 2M.3
Annual financial reports and directors’ reports Division 1
Regulation 2M.3.03
Corporations Regulations 2001 55
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
parent entity means a company, registered scheme or disclosing
entity that is required by the accounting standards to prepare
financial statements in relation to a consolidated entity.
2M.3.03 Prescribed details (Act s 300A)
(1) For paragraph 300A(1)(c) of the Act, the details set out in the table
relating to a person are prescribed.
Item Condition (if any) Details
General
1 The person’s name
2 Each position held by the
person in the financial year
3 If the person has held a
position mentioned in item 2
for less than the whole
financial year
(a) The date on which the
person began holding the
position
(b) The date (if any) on which
the person ceased to hold the
position
4 If there has been a change in
the chief executive officer or a
director of the entity during
the period:
(a) starting immediately after
the reporting date; and
(b) ending immediately before
the date on which the
financial report is
authorised for issue
(a) The name of each person
involved in the change
(b) The position involved
(c) The date on which the
change occurred
Federal Register of Legislative Instruments F2015C00303
Chapter 2M Financial reports and audit
Part 2M.3 Financial reporting
Division 1 Annual financial reports and directors’ reports
Regulation 2M.3.03
56 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item Condition (if any) Details
5 If a person (other than a
director or chief executive
officer) has retired during the
period:
(a) starting immediately after
the reporting date; and
(b) ending immediately before
the date on which the
financial report is
authorised for issue
(a) The person’s name
(b) The position involved
(c) The date on which the
retirement took effect
Payments and benefits
6 Note: See
subregulation (2).
The person’s short-term
employee benefits, divided into
at least the following
components:
(a) cash salary, fees and
short-term compensated
absences;
(b) short-term cash
profit-sharing and other
bonuses;
(c) non-monetary benefits;
(d) other short-term employee
benefits
7 Note: See
subregulation (2).
The person’s post-employment
benefits, divided into at least the
following components:
(a) pension and superannuation
benefits;
(b) other post-employment
benefits
Federal Register of Legislative Instruments F2015C00303
Financial reports and audit Chapter 2M
Financial reporting Part 2M.3
Annual financial reports and directors’ reports Division 1
Regulation 2M.3.03
Corporations Regulations 2001 57
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item Condition (if any) Details
8 Note: See
subregulation (2).
The person’s long-term
employee benefits other than
benefits mentioned in items 6
and 7, separately identifying
any amount attributable to a
long-term incentive plan
9 Note: See
subregulation (2).
The person’s termination
benefits
10 For any position the person
started to hold during the
financial year
Payments (if any) made to the
person, before the person started
to hold the position, as part of
the consideration for the person
agreeing to hold the position,
including:
(a) the monetary value of the
payment; and
(b) the date of the payment
11 Note: See
subregulation (2).
Share-based payments made to
the person, divided into at least
the following components:
(a) equity-settled share-based
payment transactions,
showing separately:
(i) shares and units; and
(ii) options and rights;
(b) cash-settled share-based
payment transactions;
(c) all other forms of
share-based payment
compensation (including
hybrids)
Federal Register of Legislative Instruments F2015C00303
Chapter 2M Financial reports and audit
Part 2M.3 Financial reporting
Division 1 Annual financial reports and directors’ reports
Regulation 2M.3.03
58 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item Condition (if any) Details
Compensation
12 For each grant of a cash
bonus, performance-related
bonus or share-based payment
compensation benefit made to
a person, whether part of a
specific contract for services
or not
The terms and conditions of
each grant affecting
compensation in the reporting
period or a future reporting
period, including the following:
(a) the grant date;
(b) the nature of the
compensation granted;
(c) the service and performance
criteria used to determine
the amount of
compensation;
(d) if there has been any
alteration of the terms or
conditions of the grant since
the grant date—the date,
details and effect of each
alteration;
(e) the percentage of the bonus
or grant for the financial
year that was paid to the
person, or that vested in the
person, in the financial year;
(f) the percentage of the bonus
or grant for the financial
year that was forfeited by
the person (because the
person did not meet the
service and performance
criteria for the bonus or
grant) in the financial year;
Federal Register of Legislative Instruments F2015C00303
Financial reports and audit Chapter 2M
Financial reporting Part 2M.3
Annual financial reports and directors’ reports Division 1
Regulation 2M.3.03
Corporations Regulations 2001 59
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item Condition (if any) Details
(g) the financial years, after the
financial year to which the
report relates, for which the
bonus or grant will be
payable if the person meets
the service and performance
criteria for the bonus or
grant;
(h) estimates of the maximum
and minimum possible total
value of the bonus or grant
(other than option grants) for
financial years after the
financial year to which the
report relates
13 For each contract for services
between a person and the
disclosing entity (or any of its
subsidiaries)
Any further explanation that is
necessary in addition to those
prescribed in
paragraph 300A(1)(ba) of the
Act and item 12 to provide an
understanding of:
(a) how the amount of
compensation in the current
reporting period was
determined; and
(b) how the terms of the
contract affect compensation
in future periods
Federal Register of Legislative Instruments F2015C00303
Chapter 2M Financial reports and audit
Part 2M.3 Financial reporting
Division 1 Annual financial reports and directors’ reports
Regulation 2M.3.03
60 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item Condition (if any) Details
14 If the terms of share-based
payment transactions
(including options or rights)
granted as compensation to
key management personnel
have been altered or modified
by the issuing entity during
the reporting period
(a) The date of the alteration
(b) The market price of the
underlying equity instrument
at the date of the alteration
(c) The terms of the grant of
compensation immediately
before the alteration,
including:
(i) the number and class
of the underlying
equity instruments,
exercise price; and
(ii) the time remaining
until expiry; and
(iii) each other condition
in the terms that
affects the vesting or
exercise of an option
or other right
(d) The new terms
(e) The difference between:
(i) the total of the fair
value of the options
or other rights
affected by the
alteration
immediately before
the alteration; and
(ii) the total of the fair
value of the options
or other rights
immediately after the
alteration
Federal Register of Legislative Instruments F2015C00303
Financial reports and audit Chapter 2M
Financial reporting Part 2M.3
Annual financial reports and directors’ reports Division 1
Regulation 2M.3.03
Corporations Regulations 2001 61
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item Condition (if any) Details
15 If options and rights over an
equity instrument issued or
issuable by the disclosing
entity or any of its subsidiaries
have been provided as
compensation to a person
during the reporting period
Note: See
subregulation (3).
(a) The number of options and
the number of rights that:
(i) have been granted;
and
(ii) have vested;
during the reporting period
(b) The terms and conditions of
each grant made during the
reporting period, including:
(i) the fair value per
option or right at
grant date; and
(ii) the exercise price per
share or unit; and
(iii) the amount, if any,
paid or payable by the
recipient; and
(iv) the expiry date; and
(v) the date or dates
when the options or
rights may be
exercised; and
(vi) a summary of the
service and
performance criteria
that must be met
before the beneficial
interest vests in the
person
Federal Register of Legislative Instruments F2015C00303
Chapter 2M Financial reports and audit
Part 2M.3 Financial reporting
Division 1 Annual financial reports and directors’ reports
Regulation 2M.3.03
62 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item Condition (if any) Details
16 If an equity instrument that is
issued or issuable by the
disclosing entity or any of its
subsidiaries has been provided
as a result of the exercise
during the reporting period of
options and rights that have
been granted as compensation
to a person
Note: See
subregulation (3).
(a) The number of equity
instruments
(b) If the number of options or
rights exercised differs from
the number of equity
instruments disclosed under
paragraph (a)—the number
of options or rights
exercised
(c) The amount paid per
instrument
(d) The amount unpaid per
instrument
Remuneration disclosure
17 For any option or right over
equity instruments issued or
issuable by the disclosing
entity and any of its
subsidiaries held, whether
directly, indirectly or
beneficially, by each key
management person, or by a
close member of the family of
that person, or an entity over
which the person or the family
member has, either directly or
indirectly, control, joint
control or significant
influence, disclosure must be
made of the number of rights
and options
(a) Options and rights held at
the start of the reporting
period
(b) Options and rights granted
during the reporting period
as compensation
(c) Options and rights exercised
during the reporting period
(d) Options and rights resulting
from any other change
during the reporting period
(e) Options and rights held at
the end of the reporting
period
(f) Options and rights vested at
the end of the reporting
period
(g) Options and rights vested
and exercisable at the end of
the reporting period
(h) Options and rights vested
and unexercisable at the end
of the reporting period
Federal Register of Legislative Instruments F2015C00303
Financial reports and audit Chapter 2M
Financial reporting Part 2M.3
Annual financial reports and directors’ reports Division 1
Regulation 2M.3.03
Corporations Regulations 2001 63
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item Condition (if any) Details
18 For any equity instrument
(other than an option or a
right) held directly, indirectly
or beneficially, by each key
management person, or by a
close member of the family of
that person, or an entity over
which the person or the family
member has, either directly or
indirectly, control, joint
control or significant
influence, disclosure must be
made of the number of equity
instruments
(a) Equity instruments held at
the start of the reporting
period
(b) Equity instruments granted
during the reporting period
as compensation
(c) Equity instruments received
during the reporting period
on the exercise of an option
or right
(d) Equity instruments resulting
from any other change
during the reporting period
(e) Equity instruments held at
the end of the reporting
period
(f) Equity instruments if
included in the number
disclosed under
paragraph (e), held
nominally at the end of the
reporting period
Federal Register of Legislative Instruments F2015C00303
Chapter 2M Financial reports and audit
Part 2M.3 Financial reporting
Division 1 Annual financial reports and directors’ reports
Regulation 2M.3.03
64 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item Condition (if any) Details
19 For a transaction involving an
equity instrument, other than
share-based payment
compensation, that has
occurred between a key
management person, a close
member of the family of that
person, or an entity over
which the person or the family
member has, either directly or
indirectly, control, joint
control or significant influence
and the issuing entity during
the reporting period, if the
terms or conditions of the
transaction were more
favourable than those that it is
reasonable to expect the entity
would have adopted if dealing
at arms-length with an
unrelated person
(a) The nature of each different
type of transaction
(b) For each transaction, the
terms and conditions of the
transaction
Federal Register of Legislative Instruments F2015C00303
Financial reports and audit Chapter 2M
Financial reporting Part 2M.3
Annual financial reports and directors’ reports Division 1
Regulation 2M.3.03
Corporations Regulations 2001 65
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item Condition (if any) Details
20 For the aggregate of loans
made, guaranteed or secured,
directly or indirectly, by the
disclosing entity and any of its
subsidiaries, in the reporting
period in relation to:
(a) all key management
personnel; and
(b) close members of the
family of a member of the
key management
personnel; and
(c) an entity over which any of
the persons mentioned in
paragraphs (a) and (b)
have, directly or indirectly,
control, joint control or
significant influence
(a) The amount outstanding at
the start of the reporting
period
(b) The amount of interest paid
and payable in the reporting
period to the disclosing
entity or to any of the
entity’s subsidiaries
(c) The difference between the
amount disclosed under
paragraph (b) and the
amount of interest that
would have been charged on
an arms-length basis
(d) Each write-down and each
allowance for doubtful
receivables recognised by
the disclosing entity or by
any of the entity’s
subsidiaries
(e) The amount outstanding at
the end of the reporting
period
(f) The number of key
management personnel
included in the group
aggregate at the end of the
reporting period
(g) A summary of the terms and
conditions of the loans
Federal Register of Legislative Instruments F2015C00303
Chapter 2M Financial reports and audit
Part 2M.3 Financial reporting
Division 1 Annual financial reports and directors’ reports
Regulation 2M.3.03
66 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item Condition (if any) Details
21 If the aggregate of loans made,
guaranteed or secured, directly
or indirectly, by the disclosing
entity and any of its
subsidiaries, in the reporting
period in relation to:
(a) a particular key
management person; and
(b) close members of the
family of the key
management person; and
(c) an entity over which any of
the persons mentioned in
paragraphs (a) and (b) has,
directly or indirectly,
control, joint control or
significant influence;
is greater than $100 000
(a) The amount outstanding at
the start of the reporting
period
(b) The amount of interest paid
and payable in the reporting
period to the disclosing
entity or to any of the
entity’s subsidiaries
(c) The difference between the
amount disclosed under
paragraph (b) and the
amount of interest that
would have been charged on
an arms-length basis
(d) Each write-down and each
allowance for doubtful
receivables recognised by
the disclosing entity or by
any of the entity’s
subsidiaries
(e) The amount outstanding at
the end of the reporting
period
(f) The highest amount of the
key management person’s
indebtedness during the
reporting period
(g) A summary of the terms and
conditions of the loans
Federal Register of Legislative Instruments F2015C00303
Financial reports and audit Chapter 2M
Financial reporting Part 2M.3
Annual financial reports and directors’ reports Division 1
Regulation 2M.3.03
Corporations Regulations 2001 67
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item Condition (if any) Details
22 For a transaction during the
reporting period between the
disclosing entity, or any of its
subsidiaries, and a key
management person, a close
member of the family of that
person, or an entity over
which the key management
person or the family member
has, directly or indirectly,
control, joint control or
significant influence, other
than a transaction mentioned
in item 19, 20 or 21 or
subregulation (3B)
(a) Each type of transaction of a
different nature
(b) The terms and conditions of
each type of transaction or,
if there are different
categories of terms and
conditions within a type of
transaction, the terms and
conditions of each category
of transaction
(c) For each type of transaction
or, if there are different
categories of terms and
conditions within a type of
transaction, for each
category of transaction:
(i) the names of the
persons involved in
the transaction; and
(ii) the aggregate amount
recognised
23 For each aggregate amount
disclosed under item 22
(a) The total of amounts
recognised as revenue,
separately identifying, if
applicable, the total amounts
recognised as:
(i) interest revenue; or
(ii) dividend revenue
(b) The total of amounts
recognised as expense,
separately identifying, if
applicable, the total amounts
recognised as:
(i) interest expense; or
(ii) write-downs of
receivables and
allowances made for
doubtful receivables
Federal Register of Legislative Instruments F2015C00303
Chapter 2M Financial reports and audit
Part 2M.3 Financial reporting
Division 1 Annual financial reports and directors’ reports
Regulation 2M.3.03
68 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item Condition (if any) Details
(c) Any further disclosures
necessary to provide an
understanding of the effects
of the transactions on the
financial statements
prepared in accordance with
Australian Accounting
Standards
24 For each transaction identified
under item 22
(a) The total of all assets,
classified into current and
non-current assets, and, if
applicable, any allowance
for doubtful receivables at
the end of the reporting
period
(b) The total of all liabilities,
classified into current and
non-current liabilities
(2) For items 6, 7, 8, 9 and 11 of the table:
(a) the information of the kind described in the item for the
previous financial year must also be disclosed in the financial
year to which the item relates (to give comparative
information for the purposes of the item); but
(b) paragraph (a) does not apply in relation to the first financial
year in which paragraph 300A(1)(c) of the Act applies in
relation to a person.
Note: The effect of paragraph (b) is that no comparative information is
required in the first period of reporting on a specific individual.
(3) For items 15 and 16 of the table, a disclosure required by the item
must:
(a) be separated into each class of equity instrument; and
(b) identify each class of equity instrument by:
(i) the name of the issuing entity;
(ii) the class of equity instrument; and
Federal Register of Legislative Instruments F2015C00303
Financial reports and audit Chapter 2M
Financial reporting Part 2M.3
Annual financial reports and directors’ reports Division 1
Regulation 2M.3.03
Corporations Regulations 2001 69
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(iii) if the instrument is an option or right—the class and
number of equity instruments for which it may be
exercised.
(3A) For items 20 and 21 of the table in subregulation (1), loans do not
include loans involved in transactions in relation to options.
Example: A non-recourse loan is a loan that is a transaction in relation to an
option.
(3B) A transaction with, or an amount that is receivable from or payable
under a transaction to, a key management person, a close member
of the family of that person, or an entity over which the person or
the family member has, directly or indirectly, control, joint control
or significant influence, is excluded from the requirements of
items 22 to 24 if:
(a) the transaction occurs within a normal employee, customer or
supplier relationship on terms and conditions no more
favourable than those that it is reasonable to expect the entity
would have adopted if dealing at arms-length with an
unrelated person; or
(b) information about the transaction does not have the potential
to affect adversely decisions about the allocation of scarce
resources made by users of the financial statements, or the
discharge of accountability by the key management person;
or
(c) the transaction is trivial or domestic in nature.
(3C) Items 17 to 24 of the table in subregulation (1) apply in relation to
a directors’ report for a financial year commencing on or after
1 July 2013.
(4) For subregulation (1), a company must apply the requirements of
relevant accounting standards when disclosing the information
mentioned in the subregulation.
(5) In subregulation (1), an expression that is:
(a) used in the subregulation; and
Federal Register of Legislative Instruments F2015C00303
Chapter 2M Financial reports and audit
Part 2M.3 Financial reporting
Division 1 Annual financial reports and directors’ reports
Regulation 2M.3.03
70 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) defined in a relevant accounting standard that is applied for
the purpose of disclosing information;
has the meaning given by that accounting standard.
Federal Register of Legislative Instruments F2015C00303
Financial reports and audit Chapter 2M
Auditor Part 2M.4
Regulation 2M.4.01A
Corporations Regulations 2001 71
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 2M.4—Auditor
2M.4.01A Membership designations (Act s 324BE)
For paragraph 324BE(1)(b) of the Act, a designation mentioned in
an item of the table is prescribed for membership of the
professional accounting body mentioned in the item.
Membership designations
Item Professional accounting body Designation
1 Institute of Chartered Accountants in
Australia
CA; or
FCA
2 CPA Australia CPA; or
FCPA
3 Institute of Public Accountants FIPA; or
MIPA
2M.4.01 Notice of appointment of auditors
The responsible entity of a registered scheme must lodge a notice
in the approved form telling ASIC of the appointment by the entity
of an auditor of the scheme under section 331AB of the Act within
14 days of the appointment.
Federal Register of Legislative Instruments F2015C00303
Chapter 2M Financial reports and audit
Part 2M.4A Annual transparency reports for auditors
Regulation 2M.4A.01
72 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 2M.4A—Annual transparency reports for
auditors
2M.4A.01 Application
This Part applies in relation to annual transparency reports for:
(a) the transparency reporting year in which Schedule 1 to the
Corporations Legislation Amendment (Audit Enhancement)
Act 2012 commences; and
(b) all later transparency reporting years.
Note: For the definitions of annual transparency report and transparency
reporting year, see section 9 of the Act.
2M.4A.02 Content of annual transparency report (Act s 332B)
(1) For subsection 332B(1) of the Act, Schedule 7A sets out the
information that an annual transparency report published in
accordance with subsection 332A(2) of the Act must contain.
(2) If the report is published by an audit firm or authorised audit
company, see Part 2 of Schedule 7A.
(3) If the report is published by an individual auditor, see Part 3 of
Schedule 7A.
Federal Register of Legislative Instruments F2015C00303
Financial reports and audit Chapter 2M
Modification of the operation of Chapter 2M of the Act Part 2M.6
Regulation 2M.6.01
Corporations Regulations 2001 73
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 2M.6—Modification of the operation of
Chapter 2M of the Act
2M.6.01 Modifications (Act s 343)
For section 343 of the Act, the operation of Chapter 2M of the Act
is modified in accordance with this Part.
2M.6.05 Conduct of auditor—relevant relationships
The operation of Chapter 2M of the Act in relation to:
(a) all companies; and
(b) all registered schemes; and
(c) all disclosing entities;
is modified as set out in Schedule 5C.
Federal Register of Legislative Instruments F2015C00303
Chapter 2N Updating ASIC information about companies and registered schemes
Part 2N.2 Extract of particulars
Regulation 2N.2.01
74 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 2N—Updating ASIC information
about companies and registered
schemes
Part 2N.2—Extract of particulars
2N.2.01 Particulars ASIC may require in an extract of particulars
(Act s 346B)
(1) For section 346B of the Act, the following particulars are
prescribed for a company:
(a) ACN;
(b) name;
(c) address of registered office;
(d) address of principal place of business in this jurisdiction;
(e) for each director and company secretary:
(i) the person’s name; and
(ii) the person’s usual residential address, or, if the person is
entitled to have an alternative address under
subsection 205D(2) of the Act, that alternative address;
and
(iii) the person’s date and place of birth;
(f) the date of appointment or cessation of each director,
secretary or alternate director;
(g) for issued shares:
(i) the classes into which the shares are divided; and
(ii) for each class of share issued:
(A) the number of shares in the class; and
(B) the total amount paid up for the class; and
(C) the total amount unpaid for the class;
(h) for a proprietary company—the names and addresses of:
Federal Register of Legislative Instruments F2015C00303
Updating ASIC information about companies and registered schemes Chapter 2N
Extract of particulars Part 2N.2
Regulation 2N.2.01
Corporations Regulations 2001 75
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) if the company has 20 or fewer members—all members;
or
(ii) if the company has more than 20 members—the top 20
members in each class;
(i) for a proprietary company that has a share capital:
(i) the total number of shares in each class held by each of
the members mentioned in paragraph (h); and
(ii) whether or not the shares are fully paid; and
(iii) whether or not the shares are beneficially owned;
(j) for the ultimate holding company:
(i) its name; and
(ii) either:
(A) its ACN or ARBN if registered in this
jurisdiction; or
(B) the place at which it was incorporated or
formed if not registered in this jurisdiction.
(2) For section 346B of the Act, the following particulars are
prescribed for a registered scheme:
(a) registration number;
(b) name;
(c) name and ACN of the responsible entity;
(d) if the scheme is a managed investment scheme that is a unit
trust:
(i) issued interests in the scheme; and
(ii) the classes into which the interests are divided; and
(iii) for each class of interest issued:
(A) the number of interests in the class; and
(B) the total amount paid up for the class; and
(C) the total amount unpaid for the class;
(e) if the scheme is a managed investment scheme that is not a
unit trust:
(i) issued interests in the scheme; and
Federal Register of Legislative Instruments F2015C00303
Chapter 2N Updating ASIC information about companies and registered schemes
Part 2N.2 Extract of particulars
Regulation 2N.2.01
76 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) a description of the nature of the interests (for example,
interest in a limited partnership, right to participate in a
timesharing scheme); and
(iii) the number of the interests; and
(iv) the total amount paid for the interests; and
(v) the total amount unpaid for the interests.
Note: Under section 346B of the Act, ASIC may require a company or
responsible entity to provide a prescribed particular in response to an
extract of particulars given by ASIC under section 346A.
Federal Register of Legislative Instruments F2015C00303
Updating ASIC information about companies and registered schemes Chapter 2N
Return of particulars Part 2N.4
Regulation 2N.4.01
Corporations Regulations 2001 77
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 2N.4—Return of particulars
2N.4.01 Particulars ASIC may require in a return of particulars
(Act s 348B)
For section 348B of the Act, the following particulars are
prescribed:
(a) the personal details of a director, secretary or alternate
director mentioned in subsection 205B(3) of the Act;
(b) the date of appointment or cessation of a director, secretary
or alternate director;
(c) the date of change of name or change of address of a director,
secretary or alternate director;
(d) evidence that a specified person is (or is not) a director,
secretary or alternate director;
(e) completion of a declaration indicating that the company is a
special purpose company within the meaning of regulation 3
of the Corporations (Review Fees) Regulations 2003;
(f) the name of the ultimate holding company;
(g) the date on which a company became, or ceased to be, the
ultimate holding company;
(h) the previous name, or the new name, of the ultimate holding
company;
(i) the date of issue, cancellation, or transfer of shares;
(j) the date of any change to amounts paid on shares;
(k) a statement of whether or not shares for one or more
members are beneficially owned;
(l) the date of any change to beneficial ownership of shares;
(m) any of the following information from the share structure
table for a class of share:
(i) the share class code;
(ii) the full title of the class of share;
(iii) the total number of shares in the class that have been
issued;
Federal Register of Legislative Instruments F2015C00303
Chapter 2N Updating ASIC information about companies and registered schemes
Part 2N.4 Return of particulars
Regulation 2N.4.01
78 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(iv) the total amount paid for shares in the class;
(v) the total amount unpaid for shares in the class;
(n) the date on which a new member’s name was entered in the
register of members;
(o) a statement that the company is:
(i) a small proprietary company mentioned in
subsection 45A(2) of the Act; or
(ii) a large proprietary company mentioned in
subsection 45A(3) of the Act; or
(iii) a foreign controlled small proprietary company
mentioned in paragraph 292(2)(b) of the Act;
(p) a statement that the company is listed (or not listed) on a
financial market, and the name of the financial market (if
any);
(q) the new name of the responsible entity in relation to a
managed investment scheme;
(r) a statement of whether the company or registered scheme
complies with subsection 348C(2) or (3) of the Act;
(s) information that a company is required to provide under
subsection 142(2), 146(1), 205B(1) or (4), 254X(1) or 319(1)
of the Act.
Note 1: Under section 348B of the Act, ASIC may require a company or
responsible entity to provide a prescribed particular in response to a
return of particulars given by ASIC under section 348A.
Note 2: A member, for a managed investment scheme, includes an interest
holder or unit holder—see section 9 of the Act.
Federal Register of Legislative Instruments F2015C00303
External administration Chapter 5
Arrangements and reconstructions Part 5.1
Regulation 5.1.01
Corporations Regulations 2001 79
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 5—External administration
Part 5.1—Arrangements and reconstructions
5.1.01 Prescribed information for paragraph 411(3)(b) and
subparagraph 412(1)(a)(ii) of the Act
(1) For paragraph 411(3)(b) and subparagraph 412(1)(a)(ii) of the Act,
unless ASIC otherwise allows, the explanatory statement must:
(a) for a proposed arrangement between a Part 5.1 body and its
creditors, or a class of its creditors:
(i) state the matters set out; and
(ii) have annexed to it the reports and copies of documents
mentioned;
in Part 2 of Schedule 8; and
(b) for a proposed arrangement between a Part 5.1 body and its
members, or a class of its members, other than a proposed
arrangement mentioned in paragraph (c):
(i) state the matters set out; and
(ii) have annexed to it the reports and copies of documents
mentioned;
in Part 3 of Schedule 8; and
(c) for a proposed arrangement between a Part 5.1 body and its
members, or a class of its members, in relation to the
reconstruction of a corporation, or the amalgamation of 2 or
more corporations, if:
(i) the whole or part of the undertaking or of the property
of a corporation is to be transferred to a trustee to be
held beneficially on behalf of the unit holders of the
trust; or
(ii) the shares in the corporation that are held by members
are to be cancelled and control is to pass to a trustee to
be held on behalf of a unit holder of the trust;
Federal Register of Legislative Instruments F2015C00303
Chapter 5 External administration
Part 5.1 Arrangements and reconstructions
Regulation 5.1.02
80 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
state the matters set out and have annexed to it the documents
and, if the trustee of that business operates no other business
in relation to that trust, the reports mentioned, in Part 4 of
Schedule 8.
(2) For the purposes of Schedule 8, securities exchange means
Australian Stock Exchange Limited.
5.1.02 Giving notice under subsection 414(2) or (9) of the Act
A notice under subsection 414(2) or (9) of the Act must be given to
a person:
(a) by personal delivery; or
(b) by prepaid post to the person’s address shown in the books of
the transferor company.
Federal Register of Legislative Instruments F2015C00303
External administration Chapter 5
Receivers, and other controllers, of corporations Part 5.2
Regulation 5.2.01
Corporations Regulations 2001 81
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 5.2—Receivers, and other controllers, of
corporations
5.2.01 Controller’s notice to owner or lessor of property—how given
A notice under subsection 419A(3) of the Act must be given to the
owner or lessor, as the case may be, by personal delivery or by
prepaid post to the owner’s or lessor’s usual place of residence or
business or the place of residence or business last known to the
controller.
5.2.01 Certified copies of reports
A copy of:
(a) a report that must be lodged; and
(b) a certificate or other document annexed to that report;
must be certified in writing to be a true copy by:
(c) for a copy lodged for paragraph 429(2)(c) of the Act—the
controller of property of the corporation; or
(f) for a copy lodged for subsection 475(7) of the Act—by the
liquidator or provisional liquidator of the company.
Federal Register of Legislative Instruments F2015C00303
Chapter 5 External administration
Part 5.3A Administration of a company’s affairs with a view to executing a deed of
company arrangement
Regulation 5.3A.01
82 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 5.3A—Administration of a company’s affairs
with a view to executing a deed of company
arrangement
5.3A.01 Administrator’s notice of ending of administration
(1) If the administration of a company ends on the happening of an
event of a kind mentioned in subsection 435C(2) or (3) of the Act,
the administrator of the company or of the deed of company
arrangement (as the case may be) must lodge a notice of the
happening of the event and the ending of the administration of the
company as soon as practicable after the event.
(2) Subregulation (1) does not apply if a notice of the happening of the
event is lodged in accordance with the Act or a provision of these
regulations other than this regulation.
5.3A.02 Administrator to specify voidable transactions in statement
The administrator of a company under administration, in setting
out his or her opinions in a statement mentioned in
paragraph 439A(4)(b) of the Act, must specify whether there are
any transactions that appear to the administrator to be voidable
transactions in respect of which money, property or other benefits
may be recoverable by a liquidator under Part 5.7B of the Act.
5.3A.03 Administrator to lodge notice of appointment
If an administrator is appointed under subsection 436E(4),
subsection 444A(2), section 449B, subsection 449C(1), (4) or (6),
or subsection 449D(1) or (2), of the Act, the administrator must
lodge a notice of the appointment in the prescribed form before the
end of the next business day after the appointment.
Note: Under section 350 of the Act, a document that the Act requires to be
lodged with ASIC in a prescribed form must:
Federal Register of Legislative Instruments F2015C00303
External administration Chapter 5
Administration of a company’s affairs with a view to executing a deed of company
arrangement Part 5.3A
Regulation 5.3A.03A
Corporations Regulations 2001 83
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) if a form for the document is prescribed in these Regulations, be in that prescribed form; and
(b) if a form for the document is not prescribed in these Regulations but ASIC has approved a form for the document, be in that approved form.
On 23 December 2004, a form for the document mentioned in this
regulation is not prescribed in these Regulations.
5.3A.03A Notice of first meeting of creditors
(1) This regulation is made for paragraph 436E(3)(b) of the Act.
(2) The information about a meeting that is to be set out in a notice is
at least the following information:
(a) the name of the company;
(b) any trading name of the company;
(c) the ACN of the company;
(d) the section of the Act or, in the case of a combined notice,
the sections of the Act under which the notice is being given;
(e) the time, date and place for the meeting;
(f) the purpose for which the meeting is being convened under
that section;
(g) the time and date by which proofs of debt, and proxies for the
meeting, are to be submitted;
(h) the name and contact details of the administrator;
(i) the date on which the administrator was appointed;
(j) the section of the Act under which the administrator was
appointed.
Note: For information about telephone conference facilities in the notice of a
meeting, see regulation 5.6.13A.
5.3A.03AB Notice of meeting to decide the company’s future
(1) This regulation is made for paragraph 439A(3)(b) of the Act.
(2) The information about a meeting that is to be set out in a notice is
at least the following information:
Federal Register of Legislative Instruments F2015C00303
Chapter 5 External administration
Part 5.3A Administration of a company’s affairs with a view to executing a deed of
company arrangement
Regulation 5.3A.04
84 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the name of the company;
(b) any trading name of the company;
(c) the ACN of the company;
(d) the section of the Act under which the notice is being given;
(e) the time, date and place for the meeting;
(f) the purpose for which the meeting is being convened under
that section;
(g) the time and date by which proofs of debt, and proxies for the
meeting, are to be submitted;
(h) the name and contact details of the administrator.
5.3A.04 Notice of change of administrator’s address
An administrator of a company under administration or of a deed
of company arrangement must, within 10 business days after a
change in the location of the administrator’s office, lodge notice in
the prescribed form of the change.
Note: Under section 350 of the Act, a document that the Act requires to be
lodged with ASIC in a prescribed form must:
(a) if a form for the document is prescribed in these Regulations, be in that prescribed form; and
(b) if a form for the document is not prescribed in these Regulations but ASIC has approved a form for the document, be in that approved form.
On 23 December 2004, a form for the document mentioned in this
regulation is not prescribed in these Regulations.
5.3A.05 Administrator’s notice to owner or lessor of property—how
given
A notice under subsection 443B(3) of the Act must be given to the
owner or lessor, as the case may be, by personal delivery or by
prepaid post to the owner’s or lessor’s usual place of residence or
business or the place of residence or business last known to the
administrator.
Federal Register of Legislative Instruments F2015C00303
External administration Chapter 5
Administration of a company’s affairs with a view to executing a deed of company
arrangement Part 5.3A
Regulation 5.3A.06
Corporations Regulations 2001 85
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
5.3A.06 Provisions included in deed of company arrangement
For subsection 444A(5) of the Act, the prescribed provisions are
those set out in Schedule 8A.
5.3A.06A Notice of resolution to wind up voluntarily
(1) This regulation is made for paragraph 446A(5)(b) of the Act.
(2) The period within which a notice is to be published is 15 business
days after the day on which the company is taken to have passed
the special resolution that the company be wound up voluntarily.
5.3A.06AB Notice of meeting of creditors
(1) This regulation is made for paragraph 449C(5)(b) of the Act.
(2) The information about a meeting that is to be set out in a notice is
at least the following information:
(a) the name of the company;
(b) any trading name of the company;
(c) the ACN of the company;
(d) the section of the Act under which the notice is being given;
(e) the time, date and place for the meeting;
(f) the purpose for which the meeting is being convened under
that section;
(g) the time and date by which proofs of debt, and proxies for the
meeting, are to be submitted;
(h) the name and contact details of the administrator.
5.3A.07 Administrator becomes liquidator—additional cases
(1) For subsection 446B(1) of the Act, a company that has executed a
deed of company arrangement is taken to have passed a special
resolution under section 491 that the company be wound up
voluntarily:
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Chapter 5 External administration
Part 5.3A Administration of a company’s affairs with a view to executing a deed of
company arrangement
Regulation 5.3A.07
86 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) if the Court at a particular time makes an order under
section 445D of the Act terminating the deed of company
arrangement; or
(b) if the deed of company arrangement specifies circumstances
in which the deed is to terminate and the company is to be
wound up—if those circumstances exist at a particular time.
(2) The company is taken to have passed the special resolution:
(a) at the time mentioned in paragraph (1)(a) or (b), as the case
may be; and
(b) without a declaration having been made and lodged under
section 494 of the Act.
(3) Section 497 of the Act is taken to have been complied with in
relation to the winding up.
(5) The liquidator must:
(a) within 5 business days after the day on which the company is
taken to have passed the resolution, lodge a written notice in
the prescribed form stating that the company is taken because
of this regulation to have passed such a resolution and
specifying that day; and
(b) cause the notice to be lodged with ASIC in accordance with
subregulation 5.6.75(4) within 15 business days after that
day.
Note: Under section 350 of the Act, a document that the Act requires to be
lodged with ASIC in a prescribed form must:
(a) if a form for the document is prescribed in these Regulations, be in that prescribed form; and
(b) if a form for the document is not prescribed in these Regulations but ASIC has approved a form for the document, be in that approved form.
On 23 December 2004, a form for the document mentioned in
paragraph (5)(a) is not prescribed in these Regulations.
(6) Section 482 of the Act applies in relation to the winding up as if it
were a winding up in insolvency or by the Court.
Federal Register of Legislative Instruments F2015C00303
External administration Chapter 5
Administration of a company’s affairs with a view to executing a deed of company
arrangement Part 5.3A
Regulation 5.3A.07A
Corporations Regulations 2001 87
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Note: Section 482 of the Act empowers the Court to stay or terminate a
winding up and to give consequential directions.
(7) An application under section 482 of the Act as applying because of
subregulation (6) may be made:
(a) despite subsection 499(4) of the Act, by the company
pursuant to a resolution of the board; or
(b) by the liquidator; or
(c) by a creditor; or
(d) by a contributory.
5.3A.07A Notice of appointment of administrator
(1) This regulation is made for paragraph 450A(1)(b) of the Act.
(2) The information about an appointment that is to be set out in a
notice is at least the following information:
(a) the name of the company;
(b) any trading name of the company;
(c) the ACN of the company;
(d) the section of the Act or, in the case of a combined notice,
the sections of the Act under which the notice is being given;
(e) the name and contact details of the administrator;
(f) the date on which the administrator was appointed;
(g) the section of the Act under which the administrator was
appointed.
Note: See regulation 5.3.07A for the contents of the notice that may be
combined with the notice under this regulation, in accordance with
subsection 450A(1A) of the Act.
(3) The period within which the notice is to be published is 3 business
days after an administrator is appointed.
Federal Register of Legislative Instruments F2015C00303
Chapter 5 External administration
Part 5.4 Winding up in insolvency
Regulation 5.4.01
88 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 5.4—Winding up in insolvency
5.4.01 Application to Court for winding up—prescribed agency
The Australian Prudential Regulation Authority is a prescribed
agency for paragraph 459P(1)(g) of the Act.
5.4.01A Notice of application to wind up a company
(1) This regulation is made for paragraph 465A(c) of the Act.
(2) The information about an application that is to be set out in a
notice is at least the following information:
(a) if the court rules require particular information to be
published for the application and the court has not dispensed
with publication under the rules—that information;
(b) if the court rules do not require particular information to be
published, or the court has dispensed with publication under
the rules:
(i) the name of the company; and
(ii) any trading name of the company; and
(iii) the ACN of the company; and
(iv) the date on which the application was filed; and
(v) the identifying number allocated by the court when the
application was filed; and
(vi) the name of the applicant; and
(vii) the address for service of the applicant; and
(viii) the name and address of the court where the application
will be heard; and
(ix) the time and date of the court hearing; and
(x) the way in which documents that are filed in relation to
the application may be obtained.
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External administration Chapter 5
Winding up in insolvency Part 5.4
Regulation 5.4.02
Corporations Regulations 2001 89
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
5.4.02 Compromise of debt by liquidator—prescribed amount
For paragraph 477(2A)(a) of the Act, the amount of $100,000 is
prescribed.
Federal Register of Legislative Instruments F2015C00303
Chapter 5 External administration
Part 5.4C Winding up by ASIC
Regulation 5.4C.01
90 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 5.4C—Winding up by ASIC
5.4C.01 Notice of intention to order winding up of a company
(1) For subparagraph 489EA(6)(b)(ii) of the Act, this regulation
prescribes the manner of publishing notice of ASIC’s intention to
make an order under subsection 489EA(1), (2), (3) or (4) of the
Act.
(2) Notice is to be published on the publication website, established
under subsection 5.6.75(1), at least 10 business days before ASIC
makes the order.
Federal Register of Legislative Instruments F2015C00303
External administration Chapter 5
Voluntary winding up Part 5.5
Regulation 5.5.01
Corporations Regulations 2001 91
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 5.5—Voluntary winding up
5.5.01 Notice of resolution to wind up voluntarily
(1) This regulation is made for paragraph 491(2)(b) of the Act.
(2) The information about a resolution that is to be set out in a notice is
at least the following information:
(a) the name of the company;
(b) any trading name of the company;
(c) the ACN of the company;
(d) the section of the Act under which the notice is being given;
(e) the name and contact details of the liquidator;
(f) the date on which the resolution was passed.
(3) The period within which the notice is to be published is 21 days
after the special resolution to wind up the company voluntarily is
passed.
5.5.02 Notice of meeting of creditors
(1) This regulation is made for paragraph 497(2)(d) of the Act.
(2) The period within which a notice is to be published is not less than
7 days, but no more than 14 days, before the day that is fixed for
holding the meeting of the company’s creditors.
Federal Register of Legislative Instruments F2015C00303
Chapter 5 External administration
Part 5.6 Winding up generally
Regulation 5.6.01
92 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 5.6—Winding up generally
5.6.01 Matters for entry in liquidator’s or provisional liquidator’s
books
For section 531 of the Act, the prescribed matters are those that are
required to give a complete and correct record of the liquidator’s or
provisional liquidator’s administration of the company’s affairs.
5.6.02 Inspection of books kept under section 531 of the Act
The liquidator or provisional liquidator must ensure that the books
kept under section 531 of the Act are available at his or her office
for inspection in accordance with that section.
5.6.06 Payment into liquidator’s general account
(1) A liquidator must:
(a) unless otherwise directed by the Court or the committee of
inspection—open a bank account to be known as the
liquidator’s general account; and
(b) pay into that account all money received by the liquidator not
later than 7 days after it has been received.
(2) However, if the liquidator is the liquidator of a pooled group:
(a) subregulation (1) does not require the liquidator to open a
separate account for each company in the group; and
(b) the liquidator may open a single bank account (to be known
as the liquidator’s general account) in relation to the group
and pay into the account all money received by the liquidator
in relation to the liquidation of the companies in the group.
5.6.07 Deposit of securities
A liquidator must deposit in the bank with which the liquidator’s
general account was opened:
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External administration Chapter 5
Winding up generally Part 5.6
Regulation 5.6.08
Corporations Regulations 2001 93
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the bills; and
(b) the notes; and
(c) any other securities;
payable to the company (or to any of the companies in a pooled
group if paragraph 5.6.06(2)(b) applies) or the liquidator as soon as
possible after they are received by the liquidator.
5.6.08 Delivery of securities
All bills, notes or other securities deposited in a bank in accordance
with regulation 5.6.07 must be delivered out on the signed request
of the liquidator.
5.6.09 Special bank account
(1) The Court may give directions regarding the payment, deposit or
custody of:
(a) money; and
(b) bills, notes or other securities;
that are payable to, or into the possession of, a liquidator.
(2) If an application is made to the Court to authorise the liquidator to
make payments into and out of a special bank account, the Court
may:
(a) authorise the payments for the time and on the terms as it
thinks fit; and
(b) if the Court thinks that the account is no longer required—at
any time order it to be closed.
(3) An office copy of an order under subregulation (2) must be served
by the liquidator on the bank with which the special bank account
has been opened.
5.6.10 Payments out of liquidator’s general account
(1) A payment out of the liquidator’s general account may be made by
cheque or by electronic funds transfer.
Federal Register of Legislative Instruments F2015C00303
Chapter 5 External administration
Part 5.6 Winding up generally
Regulation 5.6.11
94 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) A cheque to which subregulation (1) refers must:
(a) have the name of the company marked or written on the face
of it; and
(b) be signed by the liquidator.
5.6.11 Application
(1) In regulations 5.6.12 to 5.6.57, unless the contrary intention
appears:
proof of debt or claim includes a statement of particulars of a debt
or claim submitted in accordance with regulation 5.6.39, as well as
a formal proof of debt or claim.
(2) Subject to subregulation (3) and subregulation 5.6.24(4),
regulations 5.6.12 to 5.6.36A apply to the convening and conduct
of, and voting at:
(a) a meeting convened under Part 5.3A, 5.4, 5.4B, 5.5 or 5.6 of
the Act that is:
(i) a meeting of members, creditors or contributories of a
company; or
(ii) a joint meeting of creditors and members of a company;
or
(iii) a meeting of a committee of inspection; or
(iv) a meeting of a committee of creditors; or
(v) a meeting of eligible employee creditors; or
(vi) a meeting, on a consolidated basis, of creditors of
companies in a group; and
(b) a meeting of creditors of a company held under a deed of
company arrangement.
(3) Regulations 5.6.12 to 5.6.36A do not apply to:
(a) a meeting of the directors of a company; or
(b) a meeting of the members of a company, other than a
meeting mentioned in paragraph (2)(a); or
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Winding up generally Part 5.6
Regulation 5.6.11A
Corporations Regulations 2001 95
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) if those regulations are inconsistent with a particular
requirement of the Act, these Regulations or the rules—a
meeting mentioned in paragraph (2)(a) or (b).
5.6.11A Electronic methods of giving or sending certain notices etc
(1) This regulation applies if a person (the notifier) is authorised or
required to give or send a notice, or other document, to a person
(the recipient) under any of the following provisions:
(a) subregulation 5.6.12(1);
(b) subregulation 5.6.16(6);
(c) paragraph 5.6.48(2)(b);
(d) subregulation 5.6.53(1);
(e) subregulation 5.6.54(1);
(f) subregulation 5.6.55(3);
(g) subregulation 5.6.59(1);
(h) subregulation 5.6.62(1);
(i) paragraph 5.6.65(1)(b);
(j) paragraph 5.6.66(1)(d);
(k) paragraph 5.6.66(3)(a).
(2) If the recipient nominates an electronic address by which the
recipient may be notified of the notice or document, the notifier
may give or send the notice or document to the recipient by
sending it to that electronic address.
(3) If the recipient nominates any other electronic means by which the
recipient may be notified of such notices or documents, the notifier
may give or send the notice or document to the recipient by using
that electronic means.
(4) If the recipient nominates:
(a) an electronic means (the nominated notification means) by
which the recipient may be notified that such notices or
documents are available; and
(b) an electronic means (the nominated access means) the
recipient may use to access such notices or documents;
Federal Register of Legislative Instruments F2015C00303
Chapter 5 External administration
Part 5.6 Winding up generally
Regulation 5.6.12
96 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
the notifier may give or send the document to the recipient by
notifying the recipient (using the nominated notification means):
(c) that the notice or document is available; and
(d) how the recipient may use the nominated access means to
access the notice or document.
(5) A notice or document sent to an electronic address, or by other
electronic means, is taken to be given or sent on the business day
after it is sent.
(6) A notice or document given or sent under subsection (4) is taken to
be given or sent on the business day after the day on which the
recipient is notified that the notice or document is available.
(7) Subregulations (2), (3) and (4) do not limit the provisions
mentioned in subsection (1).
5.6.12 Notice of meeting
(1) The convenor of a meeting must give notice in writing of the
meeting to every person appearing on the company’s books or
otherwise to be:
(a) in the case of a meeting mentioned in
subparagraph 5.6.11(2)(a)(i)—a member, creditor or
contributory of the company; or
(b) in the case of a meeting mentioned in
subparagraph 5.6.11(2)(a)(ii)—a member or creditor of the
company; or
(c) in the case of a meeting mentioned in
subparagraph 5.6.11(2)(a)(iii)—a member of the committee
of inspection; or
(d) in the case of a meeting mentioned in
subparagraph 5.6.11(2)(a)(iv)—a member of the committee
of creditors; or
(e) in the case of a meeting mentioned in
paragraph 5.6.11(2)(b)—a creditor of the company; or
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Winding up generally Part 5.6
Regulation 5.6.12
Corporations Regulations 2001 97
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(f) in the case of a meeting mentioned in
subparagraph 5.6.11(2)(a)(v)—an eligible employee creditor;
or
(g) in the case of a meeting mentioned in
subparagraph 5.6.11(2)(a)(vi)—the creditors of a company in
a group.
Note: The effect of regulation 5.6.11A is that if a recipient has, in
accordance with that provision, nominated electronic means to receive
notices, the notifier may give or send the notice mentioned in this
subregulation by the nominated electronic means.
(2) The notice must be given to a person:
(a) by delivering it personally; or
(b) by sending it to the person by prepaid post; or
(c) if the person has a facsimile transmission number to which
notices may be sent to the person—by faxing it to the person
at that number; or
(d) if the person has a document exchange number to which
notices may be sent to the person—by lodging it with the
exchange at, or for delivery to, the person’s receiving
facilities identified by that number.
(3) The notice must be given not less than 10 business days before the
day of the meeting, except:
(a) in the case of a meeting of creditors under section 436E,
439A or 445F, or subsection 449C(4), of the Act; or
(b) as provided by subregulation (4) or (5).
(4) If a liquidator thinks it appropriate, he or she may convene a
meeting of a committee of inspection by giving less than 10
business days’ notice of the meeting in accordance with
subregulations (1) and (2).
(5) If the administrator of a company under administration thinks it
appropriate, he or she may convene a meeting of a committee of
creditors or a meeting of eligible employee creditors by giving less
than 10 business days’ notice of the meeting in accordance with
subregulations (1) and (2).
Federal Register of Legislative Instruments F2015C00303
Chapter 5 External administration
Part 5.6 Winding up generally
Regulation 5.6.13
98 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(6) The notice mentioned in subregulation (1) must be:
(a) if convening a meeting of creditors under subsection 496(1)
of the Act—in accordance with Form 521; or
(b) if convening a meeting of creditors under section 436E of the
Act—in accordance with Form 529A; or
(c) in any other case—in accordance with Form 529.
(7) A notice of a joint meeting of the creditors and members of a
company must be sent to the creditors of the company at the same
time as it is sent to the members of the company.
(8) A notice to a creditor must be sent by the person convening the
meeting:
(a) to the address given by the creditor in his or her proof of debt
or claim; or
(b) if the creditor has not lodged a proof, to the address given in
the report on the affairs of the company; or
(c) to any other address known to the person.
(9) A notice of a meeting must be sent by the convenor of the meeting:
(a) to the address given in the company’s books as the address of
that person; or
(b) to any other address known to the person convening the
meeting.
5.6.13 Proof of notice
A statement in writing in accordance with Form 530 by:
(a) the person convening a meeting; or
(b) a person acting on his or her behalf;
that notice of the meeting was sent by prepaid post is, in the
absence of evidence to the contrary, sufficient proof of the notice
having been sent to a person at the address specified for that person
in that notice.
Federal Register of Legislative Instruments F2015C00303
External administration Chapter 5
Winding up generally Part 5.6
Regulation 5.6.13A
Corporations Regulations 2001 99
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
5.6.13A If telephone conference facilities are available
If telephone conference facilities are expected to be available at the
place where the meeting is to be held and the convenor of the
meeting considers that, having regard to all the circumstances, it
will be appropriate to use those facilities, the notice of the meeting
must:
(a) set out the relevant telephone number; and
(b) indicate that a person, or the proxy or attorney of a person,
who wishes to participate in the meeting by telephone must
give to the convenor, not later than the second-last working
day before the day on which the meeting is to be held, a
written statement setting out:
(i) the name of the person and of the proxy or attorney (if
any); and
(ii) an address to which notices to the person, proxy or
attorney may be sent; and
(iii) a telephone number at which the person, proxy or
attorney may be contacted; and
(iv) any facsimile transmission number to which notices to
the person, proxy or attorney may be sent; and
(c) indicate that a person, or the proxy or attorney of a person,
who participates in the meeting by telephone must pay any
costs incurred by the person, proxy or attorney in
participating and is not entitled to be reimbursed for those
costs from the assets of the company.
5.6.13B Persons, or their proxies or attorneys, participating by
telephone
(1) If a person, or a person’s proxy or attorney, who wishes to
participate in a meeting by means of telephone conference
facilities, has given the convenor of the meeting a statement in
accordance with regulation 5.6.13A, the convenor must take all
reasonable steps to ensure that the person, or the person’s proxy or
attorney, is contacted before the start of the meeting on the
telephone number provided by that person.
Federal Register of Legislative Instruments F2015C00303
Chapter 5 External administration
Part 5.6 Winding up generally
Regulation 5.6.14
100 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) If the person, proxy or attorney is contacted, the convenor must
take all reasonable steps to ensure that the person, proxy or
attorney can hear the proceedings, and can be heard, by means of
those facilities, so that the person, proxy or attorney can participate
in the meeting.
(3) A person who, or whose proxy or attorney, participates in the
meeting by telephone in accordance with this regulation is taken to
be present in person at the meeting.
5.6.14 Time and place of meeting
(1) The convenor of a meeting must convene the meeting at the time
and place that he or she thinks are most convenient for the majority
of persons entitled to receive notice of the meeting.
(2) The convenor must give not less than 5 business days’ notice of the
time and place of the meeting, except in the case of:
(a) a meeting of creditors under section 436E, 439A or 445F, or
subsection 449C(4), of the Act; or
(b) a meeting of a committee of creditors; or
(c) a meeting of a committee of inspection.
(3) Subregulation (1) does not prevent the convenor convening a
meeting to take place at separate venues provided that technology
is available at the venues to give all persons attending the meeting
a reasonable opportunity to participate.
5.6.14A Advertisement of a meeting
(1) The convenor of a meeting must lodge, with ASIC, a notice of the
meeting in accordance with subregulation 5.6.75(4).
(2) However, subregulation (1) does not apply if
(a) the meeting is convened under subsection 445F(2) of the Act;
or
(b) the meeting is a meeting of eligible employee creditors
mentioned in paragraph 444DA(2)(a) of the Act.
Federal Register of Legislative Instruments F2015C00303
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Winding up generally Part 5.6
Regulation 5.6.14B
Corporations Regulations 2001 101
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) The notice must state at least the following information:
(a) the name of the company;
(b) any trading name of the company;
(c) the ACN of the company;
(d) the section of the Act under which the notice is being given;
(e) the time, date and place for the meeting;
(f) the purpose for which the meeting is being convened under
that section;
(g) the time and date by which proofs of debt, and proxies for the
meeting, are to be submitted;
(h) the name and contact details of the convenor of the meeting.
5.6.14B Meetings not convened in accordance with regulations
A meeting may be held if all the persons who are entitled to be
present at, and to vote at, the meeting agree, even if it has not been
convened in accordance with these regulations.
5.6.15 Costs of convening meetings of creditors etc
(1) A person (other than a liquidator or administrator of a company
under administration or of a deed of company arrangement) at
whose request a meeting of creditors or contributories is convened
must:
(a) if the liquidator or administrator requires a security for the
payment of costs before the meeting is convened—deposit
with the liquidator or administrator a sum of money; and
(b) pay the costs of convening the meeting.
(2) The costs of convening a meeting of a committee of inspection or a
committee of creditors must be repaid out of the assets of the
company to the person causing it to be convened if:
(a) the Court so orders; or
(b) the committee by resolution so directs.
Federal Register of Legislative Instruments F2015C00303
Chapter 5 External administration
Part 5.6 Winding up generally
Regulation 5.6.16
102 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
5.6.16 Quorum
(1) Subject to subregulation (3), a meeting must not act for any
purpose except:
(a) the election of a chairperson; and
(b) the proving of debts; and
(c) the adjournment of the meeting;
unless a quorum is present.
(2) A quorum consists of:
(a) if the number of persons entitled to vote exceeds 2—at least
2 of those persons; or
(b) if only one person is, or 2 persons are, entitled to vote—that
person or those persons;
present in person or by proxy or attorney.
(3) A meeting is sufficiently constituted if only one person is present
in person at the meeting if the person represents personally or by
proxy or otherwise a number of persons sufficient to constitute a
quorum.
(4) If within 30 minutes after the time appointed for a meeting:
(a) a quorum is not present; or
(b) the meeting is not otherwise sufficiently constituted;
the meeting is adjourned:
(c) to the same day in the next week at the same time and place;
or
(d) to the day (not being less than 7 or more than 21 days after
the day on which the meeting is adjourned) and at the time
and place that the chairperson appoints.
(6) The convenor of the meeting, or a person nominated by the
convenor, must immediately give notice of the adjournment to the
persons to whom notice of the meeting must be given under
regulation 5.6.12.
Note: The effect of regulation 5.6.11A is that if a recipient has, in
accordance with that provision, nominated electronic means to receive
Federal Register of Legislative Instruments F2015C00303
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Winding up generally Part 5.6
Regulation 5.6.17
Corporations Regulations 2001 103
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
notices, the notifier may give or send the notice mentioned in this
subregulation by the nominated electronic means.
(7) A meeting on the date and at the place to which the meeting is
adjourned is not to be taken to be incompetent to act only because
of a failure to comply with subregulation (6) unless the Court, on
the application of the convenor of the meeting, or of a creditor or
contributory, otherwise declares.
(8) If within 30 minutes after the time appointed for the adjourned
meeting:
(a) a quorum is not present; or
(b) the meeting is not otherwise sufficiently constituted;
the adjourned meeting lapses.
5.6.17 Chairperson
(1) If a meeting is convened by:
(a) a liquidator; or
(b) a provisional liquidator; or
(c) an administrator of the company under administration or of a
deed of company arrangement; or
(d) a liquidator mentioned in paragraph 579L(1)(e) of the Act;
that person, or a person nominated by that person, must chair the
meeting.
(2) In any other case, the persons present and entitled to vote at a
meeting must elect one of their number to be chairperson of the
meeting.
5.6.18 Adjournment of meeting
(1) The chairperson of a meeting:
(a) if so directed by the meeting—must; or
(b) with the consent of the meeting—may;
adjourn the meeting from time to time and from place to place.
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Regulation 5.6.19
104 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) A meeting convened under section 439A of the Act must not be
adjourned to a day that is more than 45 business days after the first
day on which the meeting was held.
(3) An adjourned meeting must be held at the place of the original
meeting unless:
(a) the resolution for adjournment specifies another place; or
(b) the Court otherwise orders; or
(c) the liquidator or provisional liquidator, or the administrator
of a company under administration or of a deed of company
arrangement, otherwise orders; or
(d) the place of the original meeting is unavailable, in which case
the chairperson may appoint another place.
5.6.19 Voting on resolutions
(1) A resolution put to the vote of a meeting must be decided on the
voices unless, subject to subregulation (5), a poll is demanded,
before or on the declaration of the result of the voices:
(a) by the chairperson; or
(b) by at least 2 persons present in person, by proxy or by
attorney and entitled to vote at the meeting; or
(c) by a person present in person, by proxy or by attorney and
representing not less than 10% of the total voting rights of all
the persons entitled to vote at the meeting; or
(d) in the case of a meeting of members—by a member or
members holding shares in the company conferring a right to
vote at a meeting, being shares on which the total sum paid
up is not less than 10% of the total sum paid up on all the
shares conferring that right.
(2) Unless a poll is demanded, the chairperson must declare that a
resolution has been:
(a) carried; or
(b) carried unanimously; or
(c) carried by a particular majority; or
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(d) lost;
on the voices.
(3) A declaration is conclusive evidence of the result to which it refers,
without proof of the number or proportion of the votes recorded in
favour of or against the resolution, unless a poll is demanded.
(4) A demand for a poll may be withdrawn.
(5) A vote taken at a joint meeting of creditors and members of a
company must be decided on the voices.
(6) If a creditor of a company, by contract, surrenders or limits all or
some of his or her rights to vote at a meeting of creditors, then the
creditor must not vote except in accordance with the contract and
any vote which is not in accordance with the contract will not be
counted.
5.6.20 Taking a poll
(1) Subject to subregulation (2), if a poll is demanded:
(a) the manner in which it is to be taken; and
(b) the time at which it is to be taken;
must be determined by the chairperson.
(2) A poll demanded on the election of a chairperson or on a question
of adjournment must be taken at once.
5.6.21 Carrying of resolutions after a poll has been demanded at a
meeting of creditors
(1) This regulation applies to a poll taken at a meeting of creditors.
(2) A resolution is carried if:
(a) a majority of the creditors voting (whether in person, by
attorney or by proxy) vote in favour of the resolution; and
(b) the value of the debts owed by the corporation to those
voting in favour of the resolution is more than half the total
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Regulation 5.6.21
106 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
debts owed to all the creditors voting (whether in person, by
proxy or by attorney).
(3) A resolution is not carried if:
(a) a majority of creditors voting (whether in person, by proxy or
by attorney) vote against the resolution; and
(b) the value of the debts owed by the corporation to those
voting against the resolution is more than half the total debts
owed to all creditors voting (whether in person, by proxy or
by attorney).
(4) Subject to subregulation (4B), if no result is reached under
subregulation (2) or (3), then:
(a) the person presiding at the meeting may exercise a casting
vote in favour of the resolution, in which case the resolution
is carried; or
(b) the person presiding at the meeting may exercise a casting
vote against the resolution, in which case the resolution is not
carried; or
(c) if the person presiding at the meeting does not exercise a
casting vote, the resolution is not carried.
(4A) If no result is reached under subregulation (2) or (3), and the
meeting is not a meeting of eligible employee creditors, the person
presiding at the meeting must include in the minutes of the meeting
the reasons for exercising, or not exercising, as the case may be, a
casting vote under subregulation (4).
(4B) In the case of a meeting of eligible employee creditors mentioned
in paragraph 444DA(2)(a) of the Act, if no result is reached under
subregulation (2) or (3), the resolution is not carried.
(5) In this regulation
creditor includes a debenture holder.
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5.6.22 Carrying of resolution after a poll has been demanded at a
meeting of contributories or members
(1) This regulation applies to a poll taken at a meeting of
contributories or members.
(2) In counting the majority on a poll demanded on the question that a
resolution be carried, regard must be made to:
(a) the number of votes cast for or against the resolution; and
(b) the number of votes to which each member is entitled by the
Act or the articles of the company.
(3) The chairperson of the meeting has a casting vote in addition to his
or her deliberative vote.
5.6.23 Creditors who may vote
(1) A person is not entitled to vote as a creditor at a meeting of
creditors unless:
(a) his or her debt or claim has been admitted wholly or in part
by the liquidator or administrator of a company under
administration or of a deed of company arrangement; or
(b) he or she has lodged, with the chairperson of the meeting or
with the person named in the notice convening the meeting as
the person who may receive particulars of the debt or claim:
(i) those particulars; or
(ii) if required—a formal proof of the debt or claim.
(2) A creditor must not vote in respect of:
(a) an unliquidated debt; or
(b) a contingent debt; or
(c) an unliquidated or a contingent claim; or
(d) a debt the value of which is not established;
unless a just estimate of its value has been made.
(3) A creditor must not vote in respect of:
(a) a debt or a claim on or secured by:
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Regulation 5.6.23A
108 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) a bill of exchange; or
(ii) a promissory note; or
(iii) any other negotiable instrument or security;
held by the creditor unless he or she is willing:
(b) to treat the liability to him or her on the instrument or
security of a prescribed person as a security in his or her
hands; or
(c) to estimate its value; and
(d) for the purposes of voting (but not for the purposes of
dividend), to deduct it from his or her debt or claim.
(4) For paragraph 5.6.23(3)(b), a prescribed person is a person whose
liability is mentioned in paragraph 5.6.23(3)(a) who:
(a) is liable to the company directly; or
(b) may be liable to the company on the default of another
person with respect to the liability;
at the time of voting, but who is not:
(c) an insolvent under administration; or
(d) a person against whom a winding up order is in force.
5.6.23A Voting status of persons by whom money is advanced to a
company
(1) For this Part, a person by whom money is advanced to a company
as described in section 560 of the Act is entitled to one vote at a
meeting of creditors.
(2) Subregulation (1) applies whether the person has advanced money
to the company:
(a) on 1 occasion only; or
(b) on more than 1 occasion in respect of the same matter; or
(c) on 1 or more occasions in respect of more than 1 matter.
Note: Paragraph 560(c) of the Act provides that a person by whom money is
advanced to a company in specified circumstances has the same rights
as a creditor of the company in relation to matters set out in Chapter 5
of the Act. This includes voting at a meeting of creditors of the
company.
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Regulation 5.6.24
Corporations Regulations 2001 109
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5.6.24 Votes of secured creditors
(1) For the purposes of voting, a secured creditor must state in the
creditor’s proof of debt or claim:
(a) the particulars of his or her security; and
(b) the date when it was given; and
(c) the creditor’s estimate of the value of the security;
unless he or she surrenders the security.
(2) A creditor is entitled to vote only in respect of the balance, if any,
due to him or her after deducting the value of his or her security as
estimated by him or her in accordance with regulation 5.6.41.
(3) If a secured creditor votes in respect of his or her whole debt or
claim, the creditor must be taken to have surrendered his or her
security unless the Court on application is satisfied that the
omission to value the security has arisen from inadvertence.
(4) This regulation does not apply to:
(a) a meeting of creditors convened under Part 5.3A of the Act;
or
(b) a meeting held under a deed of company arrangement.
5.6.26 Admission and rejection of proofs for purposes of voting
(1) The chairperson of a meeting has power to admit or reject a proof
of debt or claim for the purposes of voting.
(2) If the chairperson is in doubt whether a proof of debt or claim
should be admitted or rejected, he or she must mark that proof as
objected to and allow the creditor to vote, subject to the vote being
declared invalid if the objection is sustained.
(3) A decision by the chairperson to admit or reject a proof of debt or
claim for the purposes of voting may be appealed against to the
Court within 10 business days after the decision.
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Regulation 5.6.27
110 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
5.6.27 Minutes of meeting
(1) The chairperson must, within the period specified in
subregulation (7):
(a) cause minutes of the proceedings to be drawn up and entered
in a record kept for the purpose; and
(b) sign the minutes after they have been entered in the record.
(1A) However, if the meeting is held on a consolidated basis,
subregulation (1) does not require the chairperson to draw up and
enter separate minutes for each of the companies to which the
meeting relates.
(2) A record of the persons present in person, by proxy or by attorney
at a meeting must be prepared and kept:
(a) if the meeting is of members or contributories—in
accordance with Form 531A; and
(b) if the meeting is of creditors, eligible employee creditors or
debenture holders—in accordance with Form 531B; and
(c) if the meeting is of a committee of inspection or a committee
of creditors—in accordance with Form 531C.
(3) The chairperson at a meeting (other than a meeting of holders of
debentures) must lodge a copy of the minutes of the meeting
certified by him or her to be a true copy within the period specified
in subregulation (7).
(3A) However, if the meeting is held on a consolidated basis,
subregulation (1) does not require the chairperson to lodge separate
copies of the minutes for each of the companies to which the
meeting relates.
(4) If the chairperson:
(a) dies without having signed the minutes as required by
subregulation (1), or without having lodged a certified copy
of the minutes as required by subregulation (3); or
(b) becomes incapable, whether through illness or other cause, of
signing the minutes as required by subregulation (1), or of
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lodging a certified copy of the minutes as required by
subregulation (3);
the convenor of the meeting, if he or she attended the meeting, or a
creditor, member or contributory who attended the meeting, may
sign the minutes as required by subregulation (1) and may certify
and lodge a copy of the minutes as required by subregulation (3).
(5) The administrator of a company under administration or of a deed
of company arrangement, after a meeting of creditors, must cause:
(a) the minutes; and
(b) the record of persons present at the meeting;
prepared in accordance with this regulation to be made available
for inspection by creditors or members at the registered office or
principal place of business of the company in this jurisdiction.
(6) The liquidator must cause:
(a) the minutes; and
(b) the record of persons present at the meeting;
prepared under this regulation to be made available at the principal
place at which he or she practises, for inspection by creditors or
contributories.
(7) For subregulations (1) and (3), the specified period is:
(a) for a meeting other than a meeting convened under
section 436E or 439A of the Act—1 month after the end of
the meeting; or
(b) for a meeting convened under section 436E or 439A of the
Act—10 business days after the end of the meeting.
5.6.28 Appointment of proxies
(1) A person entitled to attend and vote at a meeting may appoint a
natural person over the age of 18 years as his or her proxy to attend
and vote at the meeting.
(2) Subject to subregulation (3) and to regulation 5.6.30, a proxy
appointed under this regulation has the same right to speak and
vote at the meeting as the person who appointed the proxy.
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Regulation 5.6.29
112 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) If a person claims to be:
(a) the proxy of a person, appointed by an instrument of
appointment mentioned in subregulation 5.6.29(2); and
(b) entitled to attend and vote at a meeting;
the person is not entitled to speak or vote as proxy at the meeting
(except in relation to the election of a chairperson) unless:
(i) the instrument; or
(ii) a facsimile copy of the instrument; or
(iii) a copy of the instrument sent by email or similar
electronic means;
has been lodged with the person named in the notice convening the
meeting as the person who is to receive the instrument, or with the
chairperson.
(4) If a person claims to be:
(a) the proxy of a person, appointed by an instrument completed
in a way that allows it to be given by electronic means as
described in subregulation 5.6.29(3); and
(b) entitled to attend and vote at a meeting;
the person is not entitled to speak or vote as proxy at the meeting
(except in relation to the election of a chairperson) unless the
instrument has been given by electronic means to the person named
in the notice convening the meeting as the person who is to receive
the instrument, or with the chairperson.
5.6.29 Form of proxies
(1) The appointment of a person as a proxy must be by:
(a) an instrument in accordance with Form 532, completed in
hard copy in compliance with subregulation (2); or
(b) if the person convening the meeting offers an electronic
address under paragraph 5.6.31(2)(a) for the purpose of the
receipt of proxy appointments—a copy of the instrument
mentioned in paragraph (a), the copy made in a way that
allows it to be given by electronic means (such as by emain( �
or
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(c) if the person convening the meeting offers other electronic
means under paragraph 5.6.31(2)(b) by which a person may
give the proxy appointment—an electronic representation
equivalent to Form 532 (such as an on-line Form) that may
be completed and authenticated in compliance with
subregulation (3).
(2) If Form 532 is to be completed in hard copy:
(a) the person appointing the proxy must sign the instrument of
proxy, or, if incapable of writing, attach his or her mark to it;
and
(b) the proxy of a person who is blind or incapable of writing
must not be accepted unless:
(i) the person attaches his or her signature or mark to the
instrument appointing the proxy after it has been
completed; and
(ii) the instrument is read to him or her by a witness to his
or her signature or mark (not being the person
nominated as proxy) who completes the certificate of
witness set out in Form 532.
Note 1: Form 532 may be lodged by facsimile after being completed in hard
copy: see subregulation 5.6.28(3).
Note 2: Form 532 may be lodged by email or similar means, in certain
circumstances, after being completed in hard copy: see
paragraph (1)(b).
(3) If Form 532 is to be completed in a way that allows it to be given
by electronic means, the electronic authentication of the
appointment of the proxy must include:
(a) a method of identifying the person entitled to appoint a
proxy; and
(b) an indication of the person’s approval of the information
communicated.
(4) In this regulation, electronic means does not include a facsimile
transmission.
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Regulation 5.6.30
114 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
5.6.30 Instruments of proxy
An instrument appointing a proxy may specify the manner in
which the proxy is to vote on a particular resolution, and the proxy
is not entitled to vote on the resolution except as specified in the
instrument.
5.6.31 Proxy forms to accompany notice of meetings
(1) A person convening a meeting must:
(a) send a form of proxy with each notice of the meeting; and
(b) ensure that neither the name or description of any person is
printed or inserted in the body of the form of proxy before it
is sent out.
(2) The form of proxy may specify:
(a) an electronic address for the purpose of the receipt of proxy
appointments; and
(b) other electronic means by which a person may give the proxy
appointment.
5.6.31A Person may attend and vote by attorney
(1) A person entitled to attend and vote at a meeting may attend and
vote at a meeting by his or her attorney.
(2) A person claiming to be the attorney of a person entitled to attend
and vote at a meeting is not entitled to speak or vote as attorney at
the meeting (except in relation to the election of a chairperson)
unless:
(a) the instrument by which the person was appointed as attorney
has been produced to the chairperson; or
(b) the chairperson is otherwise satisfied that the person claiming
to be the attorney of the person entitled to vote is the duly
authorised attorney of that person.
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Regulation 5.6.32
Corporations Regulations 2001 115
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5.6.32 Liquidator etc may act as proxy
A person may appoint:
(a) the liquidator; or
(b) the provisional liquidator; or
(c) the administrator of a company under administration or of a
deed of company arrangement; or
(d) the chairperson of a meeting;
by name or by reference to his or her office, to act as his or her
general or special proxy.
5.6.33 Voting by proxy if financially interested
A person acting under a general proxy must not vote in favour of
any resolution which would directly or indirectly place:
(a) the person; or
(b) the person’s partner; or
(c) the person’s employer;
in a position to receive any remuneration out of assets of the
company except as a creditor rateably with the other creditors of
the company.
5.6.34 Liquidator etc may appoint deputy
If:
(a) a liquidator; or
(b) an administrator of a company under administration or of a
deed of company arrangement; or
(c) a trustee for debenture holders;
holds a proxy and cannot attend the meeting for which it is given,
he or she may in writing appoint a person as a deputy who must:
(d) use the proxy:
(i) on his or her behalf in the manner he or she directs; or
(ii) if the proxy is a special proxy—in accordance with its
terms; and
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Regulation 5.6.36
116 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(e) if the person has been appointed by a liquidator—comply
with regulation 5.6.33 as if the person were the liquidator.
5.6.36 Time for lodging proxies
A person named in a notice convening a meeting as the person who
is to receive:
(a) an instrument appointing a proxy; or
(b) any other document relating to the validity of the
appointment of a proxy;
must not require that instrument or document to be received more
than 48 hours before the meeting.
5.6.36A Facsimile copies of proxies
(1) A person who, for the purposes of a meeting, lodges a faxed copy
of an instrument appointing a proxy or of any document relating to
the validity of the appointment, must lodge the original instrument
or document in the manner mentioned in subregulation 5.6.28(3)
within 72 hours after lodging the faxed copy.
(2) A failure by a person to comply with subregulation (1) will not
invalidate the meeting or anything done at the meeting unless the
Court, on the application of the convenor of the meeting or of a
creditor, member or contributory, otherwise declares.
5.6.37 Establishing title to priority
Regulations 5.6.39 to 5.6.57 (inclusive) apply to the establishment
of a title to priority as if it were a debt or claim.
5.6.39 Notice to submit particulars of debt or claim
(1) A liquidator may from time to time fix a day, not less than 14 days
after the day on which notice is given in accordance with
subregulation (2), on or before which a creditor may submit
particulars of his or her debt or claim.
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Corporations Regulations 2001 117
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(2) The notice must be lodged with ASIC in accordance with
subregulation 5.6.75(4).
(3) The notice must state at least the following information:
(a) the name of the company;
(b) any trading name of the company;
(c) the ACN of the company;
(d) the day fixed under subregulation (1).
5.6.40 Preparation of a proof of debt or claim
(1) A proof of debt or claim may be prepared by the creditor
personally or by a person authorised by the creditor.
(2) A proof prepared by an authorised person must state his or her
authority and means of knowledge.
5.6.41 Disclosure of security
A proof of debt or claim must state:
(a) whether the creditor is or is not a secured creditor; and
(b) the value and nature of the creditor’s security (if any); and
(c) whether the debt is secured wholly or in part.
5.6.42 Discounts
In preparing a proof of debt or claim, a creditor must allow for all
discounts for which an allowance would have been made if the
company were not being wound up.
5.6.43 Periodical payments
(1) If rent or any other payment:
(a) falls due at stated times; and
(b) the relevant date is a time other than one of those times;
the person entitled to the rent or other payment may submit a proof
of debt or claim for a proportionate part of the rent or other
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Regulation 5.6.43A
118 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
payment, up to the date of the winding up order or resolution, as if
the rent or payment accrued from day to day.
(2) If the liquidator remains in control of premises rented to a
company that is being wound up, subregulation (1) does not affect
the right of the landlord of the premises to claim payment of rent
by the company or the liquidator during the period of the
company’s occupation or the liquidator’s control.
5.6.43A Debt or claim of uncertain value—appeal to Court
(1) An appeal to the Court under subsection 554A(3) of the Act must
be made:
(a) within 21 days after the person aggrieved becomes aware of
the liquidator’s estimate or, if the period is extended under
subregulation (2), within the extended period; and
(b) in accordance with the rules.
(2) On application by the person aggrieved before or after the end of
the period of 21 days mentioned in subregulation (1), the Court
may extend the period within which an appeal must be made.
5.6.44 Debt discount rate (Act s 554B)
The discount by which the amount payable on the future date is to
be reduced under section 554B of the Act is 8% a year calculated
from the declaration of the dividend to the time when the debt
would have become payable according to the terms on which it
was contracted.
5.6.45 Employees’ wages
(1) If the employees of a company make demands:
(a) for wages or salaries (whether or not earned wholly or in part
by way of commission), whether or not payable to the
employees for annual leave or long service leave; or
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(b) for retrenchment payments;
one proof of debt or claim may be prepared and submitted on
behalf of those employees.
(2) A proof of debt or claim prepared and submitted under
subregulation (1):
(a) must have annexed to it a schedule setting out the names of
the employees and the amounts due to each of them; and
(b) has the same effect as if separate proofs had been prepared
and submitted by each of the employees named in the
schedule.
5.6.46 Production of bill of exchange and promissory note
If a company is, or may become, liable on:
(a) a bill of exchange; or
(b) a promissory note; or
(c) any other negotiable instrument or security;
it must be produced to the liquidator before a proof of debt or
claim for the liability can be admitted, unless the Court otherwise
orders.
5.6.47 Admission of debt or claim without formal proof
(2) If a liquidator admits a debt or claim without formal proof, it is not
necessary for the liquidator formally to admit the debt or claim in
writing.
(3) If a creditor’s debt or claim has been admitted without formal
proof, a notice of dividend is sufficient notice of the admission.
(4) A liquidator must not reject a debt or claim without:
(a) notifying the creditor of the grounds of the liquidator’s
rejection; and
(b) requiring that a formal proof of debt or claim be submitted
for that debt or claim.
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Regulation 5.6.48
120 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
5.6.48 Notice to creditors to submit formal proof
(1) A liquidator may from time to time fix a day, not less than 14 days
after the day on which notice is given in accordance with
subregulation (2), on or before which creditors of the company
whose debts or claims have not been admitted are formally to
prove their debts or claims.
(2) A liquidator must give the notice:
(a) by lodging the notice with ASIC in accordance with
subregulation 5.6.75(4); and
(b) to every person who, to the knowledge of the liquidator,
claims to be a creditor of the company, and whose debt or
claim has not been admitted.
Note: The effect of regulation 5.6.11A is that if a recipient has, in
accordance with that provision, nominated electronic means to receive
notices, the notifier may give or send the notice mentioned in this
paragraph by the nominated electronic means.
(3) The notice must state at least the following information:
(a) the name of the company;
(b) any trading name of the company;
(c) the ACN of the company;
(d) the day fixed under subregulation (1).
(4) A creditor of the company who fails to comply with a requirement
of a liquidator under subregulation (1) is excluded:
(a) from the benefit of a distribution made before his or her debt
or claim is admitted; and
(b) from objecting to that distribution.
5.6.49 Formal proof of debt or claim
(1) A debt or claim may be formally proved by delivering or sending
by post a formal proof of debt or claim to the liquidator.
(2) A formal proof of debt or claim:
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(a) that is prepared and submitted in accordance with
regulation 5.6.45—must be in accordance with Form 536;
and
(b) in any other case—must be in accordance with Form 535.
5.6.50 Contents of formal proof of debt or claim
(1) A formal proof of debt or claim must:
(a) contain detailed particulars of the debt or claim sought to be
proved; and
(b) in the case of a debt, include a statement of account; and
(c) specify the vouchers (if any) by which the statement can be
substantiated.
(2) The liquidator may at any time call for the production of the
vouchers mentioned in subregulation (1).
5.6.51 Costs of proof
A creditor must bear the cost:
(a) of proving his or her debt or claim; or
(b) of amending a proof of debt or claim;
unless the Court otherwise orders.
5.6.52 Liquidator to notify receipt of proof of debt or claim
If a liquidator is requested to do so by the person submitting a
proof of debt or claim, the liquidator must notify that person of the
receipt of the proof and whether or not it has been admitted under
regulation 5.6.47.
5.6.53 Time for liquidator to deal with proofs
(1) A liquidator must, within:
(a) 28 days after receiving a request in writing from a creditor to
do so; or
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Regulation 5.6.54
122 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) if ASIC allows—any further period;
in writing:
(c) admit all or part of the formal proof of debt or claim
submitted by the creditor; or
(d) reject all or part of the formal proof of debt or claim; or
(e) require further evidence in support of it.
Note: The effect of regulation 5.6.11A is that if a recipient has, in
accordance with that provision, nominated electronic means to receive
notices, the notifier may give or send the notice mentioned in this
subregulation by the nominated electronic means.
(2) If the liquidator does not deal with a request under
subregulation (1) in accordance with that subregulation, the
creditor who submitted the proof may apply to the Court for a
decision in respect of it.
(3) If the liquidator gives notice in writing to a creditor that further
evidence is required in support of the formal proof of debt or claim
submitted by the creditor under subregulation (1), the period
mentioned in that subregulation is taken not to have begun to run
until the day on which the liquidator receives a sufficient written
answer to his or her notice.
5.6.54 Grounds of rejection and notice to creditor
(1) Within 7 days after the liquidator has rejected all or part of a
formal proof of debt or claim, the liquidator must:
(a) notify the creditor of the grounds for that rejection in
accordance with Form 537; and
(b) give notice to the creditor at the same time:
(i) that the creditor may appeal to the Court against the
rejection within the time specified in the notice, being
not less than 14 days after service of the notice, or such
further period as the Court allows; and
(ii) that unless the creditor appeals in accordance with
subparagraph (i), the amount of his or her debt or claim
will be assessed in accordance with the liquidator’s
endorsement on the creditor’s proof.
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Regulation 5.6.55
Corporations Regulations 2001 123
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Note: The effect of regulation 5.6.11A is that if a recipient has, in
accordance with that provision, nominated electronic means to receive
notices, the notifier may give or send the notice mentioned in this
subregulation by the nominated electronic means.
(2) A person may appeal against the rejection of a formal proof of debt
or claim within:
(a) the time specified in the notice of the grounds of rejection; or
(b) if the Court allows—any further period.
(3) The Court may extend the time for filing an appeal under
subregulation (2), even if the period specified in the notice has
expired.
(4) If the liquidator has admitted a formal proof of debt or claim, the
notice of dividend is sufficient notice of the admission.
5.6.55 Revocation or amendment of decision of liquidator
(1) If the liquidator considers that a proof of debt or claim has been
wrongly admitted, the liquidator may:
(a) revoke the decision to admit the proof and reject all of it; or
(b) amend the decision to admit the proof by increasing or
reducing the amount of the admitted debt or claim.
(2) If the liquidator considers that all of a proof of debt or claim has
been wrongly rejected, the liquidator may:
(a) revoke the decision to reject the proof of debt or claim; and
(b) admit all of the proof or admit part of it and reject part of it.
(3) If the liquidator:
(a) revokes a decision to admit a proof of debt or claim and
rejects all of it; or
(b) amends that decision by reducing the amount of the admitted
debt or claim;
the liquidator must inform the creditor by whom it was lodged, in
writing, of his or her grounds for the revocation or amendment.
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Regulation 5.6.56
124 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Note: The effect of regulation 5.6.11A is that if a recipient has, in
accordance with that provision, nominated electronic means to receive
notices, the notifier may give or send the notice mentioned in this
subregulation by the nominated electronic means.
(4) If the liquidator revokes a decision to admit a proof of debt or
claim and rejects all of it, or amends that decision by reducing the
amount of the admitted debt or claim, the creditor must at once
repay to the liquidator:
(a) the amount received as dividend for the proof; or
(b) the amount received as dividend that exceeds the amount that
the creditor would have been entitled to receive if his or her
debt or claim had been originally admitted for the reduced
amount.
(5) If the liquidator:
(a) revokes a decision to reject all of a proof of debt or claim; or
(b) amends a decision to admit part of a proof of debt or claim;
by increasing the amount of the admitted debt or claim, the creditor
by whom it was lodged is entitled to be paid, out of available
money for the time being in the hands of the liquidator:
(c) the dividend; or
(d) an additional amount of dividend;
that the creditor would have been entitled to receive if all of the
debt or claim had been originally admitted, or the increased
amount had been admitted, before the available money is applied
to pay a further dividend.
(6) The creditor is not entitled to disturb the distribution of any
dividends declared before the liquidator revoked or amended the
decision.
5.6.56 Withdrawal or variation of proof of debt or claim
A proof of debt or claim may be withdrawn, reduced or varied by a
creditor with the consent of the liquidator.
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Regulation 5.6.57
Corporations Regulations 2001 125
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5.6.57 Oaths
The liquidator in a winding up by the Court may:
(a) administer an affirmation or oath; and
(b) take an affidavit;
for the purposes of the liquidator’s duties in relation to admitting a
debt or claim.
5.6.58 Liquidator to make out provisional list of contributories
If the liquidator of a company considers it necessary to make calls
on or adjust the rights of contributories, the liquidator must, as
soon as practicable, make out a provisional list of contributories in
accordance with Form 538.
5.6.59 Time and place for settlement of list
(1) The liquidator must give to each person included in the list not less
than 14 days’ notice in writing, in accordance with Form 539, of
the time and place appointed to settle the list.
Note: The effect of regulation 5.6.11A is that if a recipient has, in
accordance with that provision, nominated electronic means to receive
notices, the notifier may give or send the notice mentioned in this
subregulation by the nominated electronic means.
(2) The liquidator or a person acting on his or her behalf must lodge a
statement in writing in the prescribed form that notice under
subregulation (1) was given to each person included in the
provisional list of contributories.
Note: Under section 350 of the Act, a document that the Act requires to be
lodged with ASIC in a prescribed form must:
(a) if a form for the document is prescribed in these Regulations, be in that prescribed form; and
(b) if a form for the document is not prescribed in these Regulations but ASIC has approved a form for the document, be in that approved form.
On 23 December 2004, a form for the document mentioned in
subregulation (2) is not prescribed in these Regulations.
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Regulation 5.6.60
126 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) A statement under subregulation (2) is evidence that the notice was
sent to a person on the list at the address shown for that person, in
the absence of evidence to the contrary.
5.6.60 Settlement of list of contributories
(1) Before settling the list of contributories, the liquidator must hear
and determine any objection by a person to being included in the
list.
(2) The liquidator must settle the list of contributories and certify it, in
accordance with Form 541, at the time and place specified in the
notice given under regulation 5.6.59.
5.6.61 Supplementary list
(1) The liquidator may at any time vary or add to the list of
contributories by:
(a) making out a provisional supplementary list of contributories
in accordance with Form 542; and
(b) settling and certifying that list in accordance with Form 543.
(2) Regulation 5.6.59 and subregulation 5.6.60(1) apply to making out,
or settling and certifying, a supplementary list by the liquidator.
5.6.62 Notice to contributories
(1) Within 14 days after the settlement of the list, or supplementary
list, of contributories, the liquidator must:
(a) notify each person included in the list, or supplementary list,
of his or her inclusion; and
(b) at the same time give each person notice that he or she may
appeal to the Court against his or her inclusion within:
(i) 21 days after service of the notice; or
(ii) if the Court allows—any further period.
Note: The effect of regulation 5.6.11A is that if a recipient has, in
accordance with that provision, nominated electronic means to receive
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Regulation 5.6.63
Corporations Regulations 2001 127
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notices, the notifier may give or send the notice mentioned in this
subregulation by the nominated electronic means.
(2) A person may appeal against his or her inclusion in the list, or
supplementary list, of contributories, within:
(a) 21 days after service on the person of the notice under
subregulation (1); or
(b) if the Court allows—any further period.
(3) The Court may extend the time for filing an appeal under
subregulation (2), even if the period of 21 days specified in
subregulation (1) has expired.
(4) A notice for subregulation (1) must be in accordance with Form
544.
(5) The liquidator, or a person acting on the liquidator’s behalf, must
lodge a statement in writing in the prescribed form that notice
under subregulation (1) was given to each person placed on the list,
or supplementary list, of contributories.
Note: Under section 350 of the Act, a document that the Act requires to be
lodged with ASIC in a prescribed form must:
(a) if a form for the document is prescribed in these Regulations, be in that prescribed form; and
(b) if a form for the document is not prescribed in these Regulations but ASIC has approved a form for the document, be in that approved form.
On 23 December 2004, a form for the document mentioned in
subregulation (5) is not prescribed in these Regulations.
(6) A statement under subregulation (5) is sufficient evidence that the
notice was sent to a person on the list at the address shown for that
person, in the absence of evidence to the contrary.
5.6.63 Dividend payable only on admission of a debt or claim
A dividend in the winding up of the affairs of a company may be
paid only to a creditor whose debt or claim has been admitted by
the liquidator at the date of the distribution of dividends.
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Regulation 5.6.64
128 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
5.6.64 Application of regulations 5.6.37 to 5.6.57
For regulations 5.6.64 to 5.6.71, regulations 5.6.37 to 5.6.57 apply:
(a) to the formal proof of a debt or claim; and
(b) to the rejection and to an appeal against the rejection of all or
part of a formal proof of a debt or claim.
5.6.65 Liquidator to give notice of intention to declare a dividend
(1) The liquidator must give notice of his or her intention to declare a
dividend not more than 2 months before the intended date:
(a) by lodging a notice with ASIC in accordance with
subregulation 5.6.75(4); and
(b) in writing, in accordance with Form 547 or, for a final
dividend, in accordance with Form 548, to any person whose
debt or claim has not been admitted and who:
(i) for a winding up by the Court—is shown as a creditor in
the report on the affairs of the company under
subsection 475(1) of the Act; or
(ii) for a members’ voluntary winding up—appears in the
company’s records to be a creditor; or
(iii) for a creditors’ voluntary winding up—is shown as a
creditor in the list of creditors prepared in accordance
with subparagraph 497(2)(b)(ii) of the Act; or
(iv) to the knowledge of the liquidator claims to be, or might
claim to be, a creditor of the company.
Note: The effect of regulation 5.6.11A is that if a recipient has, in
accordance with that provision, nominated electronic means to receive
notices, the notifier may give or send the notice mentioned in this
paragraph by the nominated electronic means.
(2) A notice in accordance with subregulation (1) must specify a date,
not less than 21 days after the date of the notice, on or before
which formal proof, in accordance with Form 535 or 536, of a debt
or claim must be submitted to participate in the distribution.
(2A) Also, the notice must state at least the following information:
(a) the name of the company;
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(b) any trading name of the company;
(c) the ACN of the company.
(3) Subject to regulation 5.6.68, a person:
(a) who claims to be a creditor; and
(b) who does not submit a formal proof of a debt or claim on or
before the date specified in the notice given under
subregulation (1);
is excluded from participating in the distribution to which that
notice relates.
5.6.66 Time allowed for dealing with formal proof of debt or claim
(1) If the liquidator has given notice in accordance with
subregulation 5.6.65(1), the liquidator must:
(a) within 14 days after the date shown in the notice; or
(b) within such further period as ASIC allows;
in writing:
(c) before the end of that period:
(i) admit a formal proof of debt or claim received by the
liquidator; or
(ii) reject it; or
(iii) admit part of it and reject part of it; or
(iv) require further evidence in support of it; and
(d) give notice of the liquidator’s decision to the creditor who
submitted the proof.
Note: The effect of regulation 5.6.11A is that if a recipient has, in
accordance with that provision, nominated electronic means to receive
notices, the notifier may give or send the notice mentioned in this
paragraph by the nominated electronic means.
(2) If, within whichever period is applicable under paragraph (1)(a) or
(b) or subregulation (3), the liquidator does not, in writing, deal
with a formal proof of debt or claim in accordance with
paragraphs (1)(c) and (d), the creditor who submitted the proof
may apply to the Court for a decision on it.
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Regulation 5.6.67
130 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) If the liquidator gives notice to a creditor that further evidence is
required in relation to a formal proof of debt or claim submitted by
the creditor:
(a) the liquidator must, in writing, deal with the formal proof of
debt or claim in accordance with paragraphs (1)(c) and (d),
within whichever period mentioned in paragraph (1)(a) or (b)
is applicable; and
Note: The effect of regulation 5.6.11A is that if a recipient has, in
accordance with that provision, nominated electronic means to receive
notices, the notifier may give or send the notice mentioned in this
paragraph by the nominated electronic means.
(b) that period must be taken not to have begun to run until the
day on which the liquidator receives a sufficient written
answer to his or her request.
5.6.67 Declaration and distribution of dividend
(1) The liquidator must, as soon as practicable, declare and distribute a
dividend among the creditors whose debts or claims have been
admitted.
(2) The liquidator must distribute as dividend all money in hand except
enough:
(a) to meet the costs of administration; or
(b) to give effect to the provisions of the Act.
(3) If the liquidator declares a dividend, he or she must send a notice
of that declaration, in accordance with Form 549, to every person
entitled to receive payment of the dividend.
5.6.68 Rights of creditor who has not proved debt before declaration
of dividend
(1) If:
(a) a creditor’s debt or claim has not been admitted before the
declaration of a dividend; and
(b) the debt or claim is admitted;
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Regulation 5.6.69
Corporations Regulations 2001 131
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the creditor is entitled to be paid dividends that the creditor has
failed to receive, out of any available money for the time being in
the hands of the liquidator, before that money is applied to the
payment of a further dividend.
(2) A creditor is not entitled to disturb the distribution of a dividend
declared before the creditor’s debt or claim was admitted.
5.6.69 Postponement of declaration
If the liquidator postpones the declaration of a dividend past the
date shown for that purpose in the notice lodged with ASIC in
accordance with subregulation 5.6.75(4), the liquidator must lodge
another notice with ASIC for publication on the publication
website of the liquidator’s intention to declare a dividend.
5.6.70 Payment of dividend to a person named
If a person to whom a dividend is payable lodges an authority in
accordance with Form 550 with the liquidator, the liquidator must
pay the dividend to the person to whom payment is directed by that
authority.
5.6.70A Prescribed rate of interest on debts and claims from
relevant date to date of payment
For section 563B of the Act, the prescribed rate of interest on the
amount paid in respect of an admitted debt or claim for the period
starting on the relevant date and ending on the day on which the
payment is made is 8% a year.
5.6.70B Notice of disclaimer
(1) This regulation is made for subsection 568A(2) of the Act.
(2) The information about a disclaimer that is to be set out in a notice
is at least the following information:
(a) the name of the company;
(b) any trading name of the company;
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Regulation 5.6.71
132 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) the ACN of the company;
(d) the paragraph of subsection 568(1) of the Act under which
the property is disclaimed;
(e) a description of the property;
(f) if the property is a contract (other than an unprofitable
contract or a lease of land)—the date on which the Court
granted leave under subsection 568(1A) of the Act;
(g) the name and contact details of the liquidator.
5.6.71 Distribution of surplus in a winding up by the Court
(1) An order in a winding up by the Court authorising the liquidator to
distribute any surplus to a person entitled to it must, unless the
Court otherwise directs, have annexed to it a schedule in
accordance with Form 551.
(2) The liquidator must send to each person to whom any surplus is
distributed a notice in accordance with Form 552.
5.6.72 Distribution of surplus as directed
If a person who receives a notice of distribution of surplus in
accordance with subregulation 5.6.71(2) lodges with the liquidator
an authority in accordance with Form 553, the liquidator must
distribute that surplus to the person to whom payment is directed
by that authority.
5.6.73 Eligible unsecured creditor
Creditors that are eligible unsecured creditors
(1) For paragraph 579Q(1)(b) of the Act, the following creditors are
specified:
(a) a creditor to which either of the following applies as a result
of a modification of the Act made under paragraph 571(1)(d)
of the Act:
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Regulation 5.6.74
Corporations Regulations 2001 133
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(i) a debt payable by a company or companies in a group to
any other company or companies in the group is not
extinguished;
(ii) a claim that a company or companies in a group has
against any other company or companies in the group is
not extinguished;
(b) a creditor that is determined by a Court to be an eligible
unsecured creditor.
Creditors that are not eligible unsecured creditors
(2) For subsection 579Q(2) of the Act, a creditor that is determined by
a Court not to be an eligible unsecured creditor is specified.
5.6.74 Interpretation: prescribed countries
For the definition of prescribed country in section 580 of the Act,
the following countries are prescribed:
(a) the Bailiwick of Jersey;
(b) Canada;
(c) the Independent State of Papua New Guinea;
(d) Malaysia;
(e) New Zealand;
(f) the Republic of Singapore;
(g) Switzerland;
(h) the United Kingdom;
(i) the United States of America.
5.6.75 Publication in the prescribed manner
(1) ASIC must establish and maintain a website (the publication
website) on which it publishes notices that have to be:
(a) published in the prescribed manner under Part 5.1, 5.3A, 5.4,
5.4B, 5.4C, 5.5, 5.6, 5.8 or 5A.1 of the Act; or
(b) lodged in accordance with this section.
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Regulation 5.6.75
134 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) ASIC is taken to have complied with a requirement to publish a
notice, or a copy of a notice, in the prescribed manner if ASIC
publishes the notice on the publication website.
(3) A person (other than ASIC) is taken to have complied with a
requirement to publish a notice, or a copy of a notice, in the
prescribed manner if the person electronically lodges the notice
with ASIC for publication by ASIC.
(4) A person electronically lodges a notice, or a copy of a notice, with
ASIC if:
(a) the person:
(i) pays the fee prescribed under the Corporations (Fees)
Regulations 2001; and
(ii) sends the notice in an electronic communication to the
portal for ASIC’s publication website, in the format
required by ASIC; and
(iii) receives an electronic communication from ASIC that
confirms the fee has been paid and the notice has been
lodged; or
(b) the notice, or a copy of the notice, appears on the publication
website.
(5) If a person lodges a notice, or a copy of a notice, in accordance
with subsection (4), ASIC must publish the notice or copy of the
notice on the publication website.
(6) In this regulation:
electronic communication has the meaning given by
subsection 5(1) of the Electronic Transactions Act 1999.
Note: This regulation is made for section 1367A of the Act.
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Registrable bodies Part 5B.2
Regulation 5B.2.01
Corporations Regulations 2001 135
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 5B—Bodies corporate registered as
companies, and registrable bodies
Part 5B.2—Registrable bodies
5B.2.01 Certified copies of certificates of incorporation etc
For paragraphs 601CB(a) and 601CE(a) of the Act, a certified copy
of a current certificate of the incorporation or registration in its
place of origin, or a document of similar effect, of:
(a) a registrable Australian body; or
(b) a foreign company;
that is lodged with an application for registration under Division 1
or 2 of Part 5B.2 of the Act, must be a copy that:
(c) within the 3 months immediately before the day on which it
is lodged; or
(d) if ASIC permits—within a longer period;
has been certified to be a true copy by a person:
(e) who has the custody of the original document under a law in
force in the place of origin of the corporation or company;
and
(f) who exercises under that law functions similar to those
exercised by ASIC.
5B.2.02 Manner of certifying constituent documents
For paragraphs 601CB(b) and 601CE(b) of the Act, a certified
copy of a constitution of:
(a) a registrable Australian body; or
(b) a foreign company;
must be a copy that:
(c) within the period of 3 months immediately preceding the day
on which it is lodged; or
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Part 5B.2 Registrable bodies
Regulation 5B.2.03
136 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(d) if ASIC permits—a longer period;
has been certified to be a true copy:
(e) by a person:
(i) to whom the custody of the original document is
committed under a law in force in the place of origin of
the corporation or company; and
(ii) who exercises under that law functions similar to those
exercised by ASIC; or
(f) by a notary public; or
(g) by a director or secretary of the body:
(i) if the body is a registrable Australian body—by a
statement in writing; or
(ii) if the body is a foreign company—by affidavit.
5B.2.03 Manner of sending letters (Act ss 601CC(2) and 601CL(3))
For subsections 601CC(2) and 601CL(3) of the Act, a letter must
be sent by post.
5B.2.04 Manner of sending notices (Act ss 601CC(3) and 601CL(4))
For subsections 601CC(3) and 601CL(4) of the Act, a notice must
be sent by prepaid certified mail.
5B.2.05 Prescribed countries (Act s 601CDA(a))
For paragraph 601CDA(a) of the Act, a country mentioned in the
following table is prescribed:
Item Country
1 New Zealand
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Regulation 5B.2.06
Corporations Regulations 2001 137
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
5B.2.06 Notices (Act s 601CV(1))
(1) A notice in writing of a change in a constitution or other document,
in accordance with paragraph 601CV(1)(b) of the Act, must be
accompanied by a copy of the instrument effecting the change or a
copy of the document as changed, being a copy that is certified to
be a true copy of that instrument or document by a person
mentioned in paragraph 5B.2.02(e), (f) or (g).
(2) A notice in writing of a change in director’s powers, in accordance
with subparagraph 601CV(1)(d)(i) of the Act, must be
accompanied by a memorandum in writing executed by or on
behalf of the foreign company after a change in those powers
stating the powers of its directors as changed.
Federal Register of Legislative Instruments F2015C00303
Chapter 5B Bodies corporate registered as companies, and registrable bodies
Part 5B.3 Names of registrable Australian bodies and foreign companies
Regulation 5B.3.01
138 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 5B.3—Names of registrable Australian bodies
and foreign companies
5B.3.01 Availability of names (Act s 601DC)
(1) For paragraphs 601DC(1)(a) and (b) of the Act, the rules for
ascertaining whether a name is identical with another name are the
rules set out in Part 1 of Schedule 6.
(2) For paragraph 601DC(1)(c) of the Act, a name is unacceptable for
registration under the regulations if the name is unacceptable under
the rules set out in Part 2 of Schedule 6.
5B.3.02 Consents required for use of certain letters, words and
expressions
(1) This regulation applies to a name if:
(a) the name:
(i) is the subject of an application for registration of a name
under section 601BC, 601CB or 601CE of the Act; or
(ii) is the subject of an application for reservation of a name
under section 601DA of that Act; or
(iii) for a notice of change of name under section 601DH of
the Act—is the name to which the previous name is to
be changed; and
(b) the name is, uses or includes:
(i) letters, or a word or expression, specified in column 2 of
an item in Part 4 or 5 of Schedule 6; or
(ii) other letters, or another word or expression (whether or
not in English), that is of like import to the letters, word
or expression specified in the item.
(2) In paragraph (1)(b), a reference to letters, a word or an expression
being used includes a reference to the letters, word or expression
being used:
Federal Register of Legislative Instruments F2015C00303
Bodies corporate registered as companies, and registrable bodies Chapter 5B
Names of registrable Australian bodies and foreign companies Part 5B.3
Regulation 5B.3.03
Corporations Regulations 2001 139
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) as part of another word or expression; or
(b) in combination with other words or letters, or other symbols.
(3) However, this regulation does not apply to use of the letters ADI as
part of another word.
Example: The letters adi appear in the word traditional. This regulation does not apply to use of the word traditional.
(4) If an item in Part 4 of Schedule 6 applies in relation to the name,
the application or notice must be accompanied by the written
consent of the Minister who is specified in the item.
(5) If an item in Part 5 of Schedule 6 applies in relation to the name,
the application or notice must be accompanied by the written
consent of the public authority, instrumentality or agency that is
specified in the item.
5B.3.03 Exemptions from requirement to set out ARBN etc on
certain documents (Act s 601DG)
For section 601DG of the Act, the exemptions provided for in
Schedule 7 apply in relation to the requirements of paragraphs
601DE(1)(b), (c) and (d) of the Act.
5B.3.04 Notices (Act s 601DH (1))
(1) A notice in writing of a change of name in accordance with
subsection 601DH(1) of the Act, must have annexed to it:
(a) a copy of the certificate of incorporation or registration of the
registered body, or a document of similar effect, being a
certificate or document evidencing the change; or
(b) if no certificate or document of that kind exists—a copy of
the instrument effecting the change;
being a copy that is certified by a person mentioned in
paragraph 5B.2.02(e), (f) or (g) to be a true copy of that certificate,
document or instrument.
Federal Register of Legislative Instruments F2015C00303
Chapter 5C Managed investment schemes
Part 5C.1 Registration of managed investment schemes
Regulation 5C.1.01
140 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 5C—Managed investment schemes
Part 5C.1—Registration of managed investment
schemes
5C.1.01 Applying for registration
(1) An application under section 601EA of the Act to register a
managed investment scheme must be in the approved form.
(2) The form must state the name of the managed investment scheme.
(3) The stated name must not be the same as the name of:
(a) another managed investment scheme that is the subject of an
application for registration that is lodged but not yet
determined; or
(b) a registered scheme.
(4) A statement made for paragraph 601EA(4)(c) of the Act must be in
the approved form.
5C.1.02 Change of name of registered schemes
(1) To change the name of a registered scheme, the responsible entity
of the scheme must lodge a notice in the approved form stating the
proposed name of the scheme.
(2) The stated name must not be the same as the name of:
(a) another managed investment scheme that is the subject of an
application for registration under section 601EB of the Act
that is lodged but not yet determined; or
(b) a registered scheme.
(3) On application in accordance with this regulation, ASIC must
amend the record of the registration of the scheme to include the
name of the scheme as proposed to be amended.
Federal Register of Legislative Instruments F2015C00303
Managed investment schemes Chapter 5C
Registration of managed investment schemes Part 5C.1
Regulation 5C.1.03
Corporations Regulations 2001 141
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
5C.1.03 Modification (Act s 601QB)
(1) For section 601QB of the Act, the operation of Chapter 5C of the
Act is modified in accordance with this regulation.
(2) If:
(a) a managed investment scheme is registered under
section 601EB of the Act; and
(b) the managed investment scheme is also registered on the
Australian Business Register; and
(c) the last 9 digits of the ABN of the registered scheme are the
same, and in the same order, as the last 9 digits of its ARSN;
and
(d) a document relating to the scheme is lodged with ASIC, and
displays that ABN;
section 601EC of the Act does not apply to the document.
Federal Register of Legislative Instruments F2015C00303
Chapter 5C Managed investment schemes
Part 5C.2 The responsible entity
Regulation 5C.2.01
142 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 5C.2—The responsible entity
5C.2.01 Duty of responsible entities’ agents—surveillance checks
The agent of a responsible entity must take all reasonable steps to
assist the entity and ASIC when ASIC is conducting a check
whether the entity is complying with the constitution and
compliance plan of a registered scheme and with the Act.
5C.2.02 Appointment of temporary responsible entities
ASIC, or a member of a registered scheme, may apply to the Court
for the appointment of a temporary responsible entity of the
scheme if ASIC or member reasonably believes that the
appointment is necessary to protect scheme property or the
interests of members of the scheme.
5C.2.03 Form of notices (Act ss 601FL(2) and 601FM(2))
A notice to be lodged under subsection 601FL(2) or 601FM(2) of
the Act must be in the approved form.
5C.2.04 Notice of appointment of temporary responsible entities
As soon as practicable after the Court appoints a temporary
responsible entity for a registered scheme on application by a
member of the scheme under section 601FN of the Act, the
member must lodge a notice in the approved form that tells ASIC
of the appointment.
5C.2.05 Form of notices (Act s 601FP(3))
A notice to be lodged under subsection 601FP(3) of the Act must
be in the approved form.
Federal Register of Legislative Instruments F2015C00303
Managed investment schemes Chapter 5C
The compliance plan Part 5C.4
Regulation 5C.4.01
Corporations Regulations 2001 143
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 5C.4—The compliance plan
5C.4.01 Agents’ authorities to be lodged
If a compliance plan, or modification of a plan, lodged with ASIC
under section 601HC or subsection 601HE(3) of the Act is signed
by an agent of the directors of the responsible entity of the
registered scheme to which the plan relates, the authority to do so,
or a copy of the authority verified by a director of the entity, must
be attached to the plan or modification.
5C.4.02 Agents to assist auditors of compliance plans
An agent of the responsible entity of a registered scheme, and an
officer of the agent, must:
(a) allow the auditor of the scheme’s compliance plan to have
access to the books of the scheme; and
(b) if the auditor requires the agent or entity to give the auditor
information or an explanation for the audit—give the
information or explanation to the auditor; and
(c) otherwise assist the conduct of the audit.
Federal Register of Legislative Instruments F2015C00303
Chapter 5C Managed investment schemes
Part 5C.5 The compliance committee
Regulation 5C.5.01
144 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 5C.5—The compliance committee
5C.5.01 Responsible entities etc to assist compliance committees
(1) This regulation applies to a person who is the responsible entity of
a registered scheme, an officer of the entity, an agent of the entity
or an officer of the agent.
(2) The person must:
(a) allow the compliance committee to have access to the books
of the scheme; and
(b) if the committee requires the person to give the committee
information or an explanation about the scheme—give the
information or explanation to the committee; and
(c) otherwise assist the committee in the performance of its
functions.
Federal Register of Legislative Instruments F2015C00303
Managed investment schemes Chapter 5C
Winding up Part 5C.9
Regulation 5C.9.01
Corporations Regulations 2001 145
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 5C.9—Winding up
5C.9.01 Notice of commencement of winding up
The responsible entity of a registered scheme must lodge a notice
in the approved form telling ASIC that winding up of the scheme
has commenced, or been completed, within 14 days of the
commencement or completion.
Federal Register of Legislative Instruments F2015C00303
Chapter 5C Managed investment schemes
Part 5C.11 Exemptions and modifications
Division 1 Exemptions
Regulation 5C.11.01
146 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 5C.11—Exemptions and modifications
Division 1—Exemptions
5C.11.01 Certain schemes not managed investment schemes
(1) For paragraph (n) of the definition of managed investment scheme
in section 9 of the Act, each of the following schemes is declared
not to be a managed investment scheme:
(a) an approved benefit fund within the meaning given by
subsection 16B (1) of the Life Insurance Act 1995;
(b) a scheme (a litigation funding scheme) that has all of the
following features:
(i) the dominant purpose of the scheme is for each of its
general members to seek remedies to which the general
member may be legally entitled;
(ii) the possible entitlement of each of its general members
to remedies arises out of:
(A) the same, similar or related transactions or
circumstances that give rise to a common issue
of law or fact; or
(B) different transactions or circumstances but the
claims of the general members can be
appropriately dealt with together;
(iii) the possible entitlement of each of its general members
to remedies relates to transactions or circumstances that
occurred before or after the first funding agreement
(dealing with any issue of interests in the scheme) is
finalised;
(iv) the steps taken to seek remedies for each of its general
members include a lawyer providing services in relation
to:
(A) making a demand for payment in relation to a
claim; or
(B) lodging a proof of debt; or
Federal Register of Legislative Instruments F2015C00303
Managed investment schemes Chapter 5C
Exemptions and modifications Part 5C.11
Exemptions Division 1
Regulation 5C.11.01
Corporations Regulations 2001 147
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(C) commencing or undertaking legal proceedings;
or
(D) investigating a potential or actual claim; or
(E) negotiating a settlement of a claim; or
(F) administering a deed of settlement or scheme of
settlement relating to a claim;
(v) a person (the funder) provides funds, indemnities or
both under a funding agreement (including an
agreement under which no fee is payable to the funder
or lawyer if the scheme is not successful in seeking
remedies) to enable the general members of the scheme
to seek remedies;
(vi) the funder is not a lawyer or legal practice that provides
a service for which some or all of the fees,
disbursements or both are payable only on success;
(c) a scheme (a litigation funding scheme) that has all of the
following features:
(i) the scheme relates to an externally-administered body
corporate;
(ii) the creditors or members of the body corporate provide
funds (including through a trust), indemnities or both to
the body corporate or external administrator;
(iii) the funds, indemnities or both enable the external
administrator or the body corporate to:
(A) conduct investigations; or
(B) seek or enforce a remedy against a third party;
or
(C) defend proceedings brought against the body
corporate in relation to the external
administration of the body corporate (other than
in relation to allegations, made by creditors or
members of the body corporate, of negligence
or non-performance of duties by the external
administrator);
(d) an arrangement (a litigation funding arrangement) that has
all of the following features:
Federal Register of Legislative Instruments F2015C00303
Chapter 5C Managed investment schemes
Part 5C.11 Exemptions and modifications
Division 1 Exemptions
Regulation 5C.11.01
148 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) the dominant purpose of the arrangement is:
(A) for a general member to seek remedies to which
the general member may be legally entitled; or
(B) proving claims made by one individual under
Division 6 of Part 5.6 of the Act (which may
include the funding of the preparation and the
lodgement of the proofs);
(ii) the steps taken to seek remedies include a lawyer
providing services in relation to:
(A) making a demand for payment in relation to a
claim; or
(B) lodging a proof of debt; or
(C) commencing or undertaking legal proceedings;
or
(D) investigating a potential or actual claim; or
(E) negotiating a settlement of a claim; or
(F) administering a deed of settlement or scheme of
settlement relating to a claim;
(iii) a person (the funder) provides funds, indemnities or
both under a funding agreement (including an
agreement under which no fee is payable to the funder
or lawyer if the arrangement is not successful in seeking
remedies) to enable the general member of the
arrangement to seek remedies;
(iv) the funder is not a lawyer or legal practice that provides
a service for which some or all of the fees,
disbursements or both are payable only on success;
(v) the arrangement is not a litigation funding scheme.
(2) In this regulation:
external administrator includes an administrator, a liquidator
(including a provisional liquidator) and a controller.
Federal Register of Legislative Instruments F2015C00303
Managed investment schemes Chapter 5C
Exemptions and modifications Part 5C.11
Exemptions Division 1
Regulation 5C.11.01
Corporations Regulations 2001 149
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
general member:
(a) in relation to a litigation funding scheme—means a member
of the scheme who:
(i) is not the funder; and
(ii) is not a lawyer providing services for the purposes of
the scheme; and
(b) in relation to a litigation funding arrangement—means the
party to the arrangement who:
(i) is not the funder; and
(ii) is not a lawyer providing services for the purposes of
the arrangement.
Federal Register of Legislative Instruments F2015C00303
Chapter 5C Managed investment schemes
Part 5C.11 Exemptions and modifications
Division 2 Modifications
Regulation 5C.11.02
150 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2—Modifications
5C.11.02 Modifications
For section 601QB of the Act, the operation of the Act is modified
in accordance with this Division.
5C.11.03 Register of members of registered schemes (Act s 169(1))
The register of members of a registered scheme need not contain
information about a member whose only interest in the scheme is
as the holder of an option.
5C.11.03A How to work out the value of an interest
If a registered scheme is quoted on 2 or more prescribed financial
markets, paragraph 253F(a) of the Act is to be applied so that the
value of an interest in the registered scheme is taken to be the last
sale price, on the market on which the scheme is listed, on the
trading day immediately before the day on which the poll is taken.
5C.11.04 Names of registered schemes (Act s 601EB(1))
ASIC must not register a managed investment scheme if the name
of the scheme stated under subregulation 5C.1.01(2) does not
comply with subregulation 5C.1.01(3).
5C.11.05A Schemes not required to be registered (Act s 601ED)
Subsection 601ED(2) of the Act has effect as if the words ‘and
Division 2 of Part 7.9 applied to the interests at that time’ were
inserted after the words ‘when the issues were made’.
Federal Register of Legislative Instruments F2015C00303
Managed investment schemes Chapter 5C
Exemptions and modifications Part 5C.11
Modifications Division 2
Regulation 5C.11.06
Corporations Regulations 2001 151
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
5C.11.06 Liability of responsible entities (Act s 601FB(4))
In determining the liability under subsection 601FB(2) of the Act
of the responsible entity of a registered scheme to the members of
the scheme for an act or omission of an agent appointed by the
entity under that subsection, the amount recovered under
subsection 601FB(4) of the Act is to be disregarded.
Federal Register of Legislative Instruments F2015C00303
Chapter 5D Licensed trustee companies
Part 5D.1 Preliminary
Regulation 5D.1.01
152 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 5D—Licensed trustee companies
Part 5D.1—Preliminary
5D.1.01 Prescribed requirements for publication
For the definition of publish in section 601RAA of the Act:
(a) a notice mentioned in paragraph 601WBH(b) of the Act is to
be published in the Gazette and on the ASIC website; and
(b) a notice mentioned in paragraph 601WDA(1)(b) or
subsection 601WDA(3) of the Act is to be published in a
national newspaper and on the transferring company’s
website.
5D.1.01A Meaning of trustee company
(1) For subsection 601RAB(1) of the Act, a company that is listed in
Schedule 8AA is a trustee company for the purpose of the Act.
(2) A company that performs the function of the Public Trustee of a
State or Territory may only be listed in Schedule 8AA if:
(a) the State or Territory requests the Minister to prescribe the
company as a trustee company; and
(b) the Minister agrees to the request.
5D.1.02 Meaning of traditional trustee company services and estate
management functions
(1) For paragraph 601RAC(3)(f) of the Act, acting in any of the
following capacities is prescribed:
(a) as trustee for the holders of debt securities of a body;
(b) as trustee of a trust established for purposes that include
issuing debt securities (including loan-backed securities and
mortgage-backed securities) or managing or servicing the
assets of the trust;
Federal Register of Legislative Instruments F2015C00303
Licensed trustee companies Chapter 5D
Preliminary Part 5D.1
Regulation 5D.1.02
Corporations Regulations 2001 153
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) as trustee for the benefit of present or future creditors of
another person when holding:
(i) mortgages, charges, guarantees, indemnities or other
rights or benefits that have been given to secure debts
owing to the creditors; and
(ii) the proceeds from the enforcement of any of the
securities mentioned in subparagraph (i);
Note: Securities is defined in section 92 of the Act.
(d) as custodian for another trustee or for the responsible entity
of a registered scheme or other commercial entity;
(e) as trustee of a managed investment scheme the main assets of
which consist of land and improvements on the land where
the trustee is not responsible for the daily management of the
land or any business conducted on the land;
Note: Managed investment scheme is defined in section 9 of the Act.
(f) as trustee for employee share or benefit schemes;
(g) as trustee for trusts the main activities of which consist of
making loans to, or otherwise investing in, companies or
other commercial entities;
(h) as an escrow agent;
(i) as a person named in a will as an executor when not actively
providing a service or function;
(j) as a person named in a power of attorney as an attorney when
not actively providing a service or function;
(k) preparing a power of attorney for a person’s medical
treatment or for guardianship of a person’s affairs;
(l) preparing a living will or advance health directive of any
kind.
(2) In this regulation:
custodian does not include a trustee establishing and operating a
common fund.
Federal Register of Legislative Instruments F2015C00303
Chapter 5D Licensed trustee companies
Part 5D.1 Preliminary
Regulation 5D.1.02
154 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
debt security means:
(a) any debenture, debenture stock, bond, note or other security
of a corporation or body; or
(b) any convertible note issued by a company or any convertible
note in a unit trust scheme issued by the trustee of a unit trust
scheme; or
(c) any right to a security mentioned in paragraph (a) or (b);
whether or not it is a charge on the assets of the corporation,
company, society or unit trust scheme.
employee share or benefit scheme means a scheme under which a
company offers for issue or sale shares (or options over issued
shares) in the company, or some other benefit in the company, only
to a director or employee of the company, or of an associated body
corporate, when the offer is made.
escrow agent means a person with whom is deposited a contract,
deed, bond or other written agreement or property for delivery to
the grantee, promisee or some other person on resolution of a
dispute or fulfilment of some condition.
loan-backed security means:
(a) an instrument or property:
(i) creating a right or interest (whether described as a unit,
bond or otherwise) for a beneficiary; or
(ii) conferring a right or interest (whether described as a
unit, bond or otherwise) on a beneficiary; or
(iii) consisting of a right or interest (whether described as a
unit, bond or otherwise) of a beneficiary;
in a scheme under which the profits, distributions of capital
or income in which beneficiaries share arise or arises from
the acquisition, holding, management or disposal of a loan or
pool of loans; or
(b) an instrument which evidences a right or interest mentioned
in paragraph (a); or
Federal Register of Legislative Instruments F2015C00303
Licensed trustee companies Chapter 5D
Preliminary Part 5D.1
Regulation 5D.1.03
Corporations Regulations 2001 155
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) a debt security:
(i) the payments under which by the person that issues or
makes the instrument are derived mainly from the
acquisition, holding, management or disposal of a loan
or pool of loans; and
(ii) that is secured by a mortgage or charge over a loan or
pool of loans.
mortgage-backed security has the meaning given in
regulation 5D.1.03.
5D.1.03 Meaning of mortgage-backed security
(1) A mortgage-backed security is:
(a) an interest in a trust that entitles the holder of, or beneficial
owner under, the interest to:
(i) the whole, or any part, of the rights or entitlements of a
mortgagee and any other rights or entitlements in
respect of a mortgage or pool of mortgages; or
(ii) any amount payable by the mortgagor or mortgagors
under a mortgage or mortgages (whether or not the
amount is payable to the holder of, or beneficial owner
under, the interest on the same terms as under the
mortgage or mortgages); or
(iii) payments that are derived mainly from the income or
receipts of a mortgage or pool of mortgages;
and that may, in addition, entitle the holder, or beneficial
owner, to a transfer or assignment of the mortgage or
mortgages; or
(b) a debt security (whether or not in writing) the payments
under which by the person who issues or makes the debt
security are derived mainly from the income or receipts of a
mortgage or pool of mortgages; or
(c) any of the following:
(i) an interest in a trust:
(A) creating a right or interest (whether described as
a unit, bond or otherwise) for a beneficiary; or
Federal Register of Legislative Instruments F2015C00303
Chapter 5D Licensed trustee companies
Part 5D.1 Preliminary
Regulation 5D.1.04
156 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(B) conferring a right or interest (whether described
as a unit, bond or otherwise) on a beneficiary;
or
(C) consisting of a right or interest (whether
described as a unit, bond or otherwise) of a
beneficiary;
in a scheme under which any profit or income in which
the beneficiaries share arises from the acquisition,
holding, management or disposal of a mortgage, pool of
mortgages or the income or receipts of a mortgage or
pool of mortgages;
(ii) any instrument that evidences a right or interest
mentioned in subparagraph (i);
(iii) a security (whether or not in writing) the payments
under which by the person who issues or makes the
security are derived mainly from the income or receipts
of a mortgage or pool of mortgages;
(iv) an interest in a trust or a debt security (whether or not in
writing);
(v) an instrument or property that creates an interest in, or
charge over an interest in, a trust;
(vi) a debt security (whether or not in writing);
(vii) any other property to which paragraph (a) or (b) or
subparagraph (i), (ii) or (iii) applies.
(2) However, a mortgage-backed security does not include an
instrument or property consisting of any of the following:
(a) a mortgage;
(b) the transfer of a mortgage;
(c) a declaration of trust.
5D.1.04 Interaction between trustee company provisions and State
and Territory laws
(1) For paragraph 601RAE(4)(a) of the Act, the trustee company
provisions are intended to apply to the exclusion of the provisions
of State or Territory laws prescribed in Schedule 8AB.
Federal Register of Legislative Instruments F2015C00303
Licensed trustee companies Chapter 5D
Preliminary Part 5D.1
Regulation 5D.1.04
Corporations Regulations 2001 157
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) For paragraph 601RAE(4)(b) of the Act, the trustee company
provisions are intended not to apply to the exclusion of the State or
Territory laws, or the provisions of State or Territory laws,
prescribed in Schedule 8AC, so far as those laws relate to an
administrator of a person’s estate.
(3) For paragraph 601RAE(4)(b) of the Act, the trustee company
provisions are intended not to apply to the exclusion of the State or
Territory laws, or the provisions of State or Territory laws,
prescribed in Schedule 8AD.
Federal Register of Legislative Instruments F2015C00303
Chapter 5D Licensed trustee companies
Part 5D.2 Powers etc of licensed trustee companies
Division 2.1 Annual Information Returns
Regulation 5D.2.01
158 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 5D.2—Powers etc of licensed trustee
companies
Division 2.1—Annual Information Returns
5D.2.01 Obligation on licensed trustee company to provide an
annual information return if requested
(1) For section 601SAB of the Act, this regulation prescribes the
obligation of a licensed trustee company to provide an annual
information return.
(2) The licensed trustee company commits an offence if:
(a) a person mentioned in subregulation (3) requests an annual
information return; and
(b) the company does not provide the return to the person in
accordance with the requirements in subregulations (5), (6)
and (8) and regulation 5D.2.02.
Penalty: 50 penalty units.
(3) A person may request an annual information return if the person is
one of the following:
(a) in the case of the estate of a deceased person:
(i) if the person died testate—a beneficiary under the
deceased person’s will; or
(ii) if the person died intestate—a person who, under a law
of a State or Territory, has, is entitled to, or claims to be
entitled to, an interest in the deceased person’s estate; or
(iii) a person who has commenced a proceeding in a court,
under a law of a State or Territory, to seek to be
included as a beneficiary of the deceased person’s
estate;
(b) in relation to a charitable trust:
(i) the settlor, or one of the settlors, of the trust; or
Federal Register of Legislative Instruments F2015C00303
Licensed trustee companies Chapter 5D
Powers etc of licensed trustee companies Part 5D.2
Annual Information Returns Division 2.1
Regulation 5D.2.01
Corporations Regulations 2001 159
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) a person who, under the terms of the trust, has power to
appoint or remove a trustee of the trust or to vary (or
cause to be varied) any of the terms of the trust; or
(iii) a person, or a person’s appointed successor, who is
named in the instrument establishing the trust as a
person who must, or may, be consulted by the trustee or
trustees before distributing or applying money or other
property for the purposes of the trust;
(c) in the case of any other trust:
(i) the settlor, or one of the settlors, of the trust; or
(ii) a person who, under the terms of the trust, has power to
appoint or remove a trustee of the trust or to vary (or
cause to be varied) any of the terms of the trust; or
(iii) a beneficiary of the trust.
(4) The person must make the request for an annual information return
in writing to the licensed trustee company and may indicate in the
request which one of the following forms of return is required:
(a) by sending it to the person’s postal address;
(b) by emailing it to a nominated email address.
(5) The annual information return must be provided within 30 days
after the request from the person is received by the licensed trustee
company, and then annually.
(6) The annual information return must be for the last financial year
that the licensed trustee company has provided a service to the
person who has requested the return.
(7) However, the licensed trustee company is not required to provide
an annual information return covering a period:
(a) before 1 July 2010; or
(b) before it provided a service to the person.
(8) The annual information return must be provided as follows:
(a) if requested in a particular form—in the form requested;
(b) in all other cases—by sending it to the person’s postal
address.
Federal Register of Legislative Instruments F2015C00303
Chapter 5D Licensed trustee companies
Part 5D.2 Powers etc of licensed trustee companies
Division 2.1 Annual Information Returns
Regulation 5D.2.02
160 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
5D.2.02 Information to be included in annual information return
The annual information return provided by a licensed trustee
company must include the following:
(a) for a person mentioned in subparagraphs 5D.2.01(3)(a)(i) and
(ii) and (c)(iii):
(i) details of income earned on the person’s interest in the
trust or estate; and
(ii) details of expenses in operating the trust or estate in
relation to the person’s interest in the trust or estate; and
(iii) the net value of the person’s interest in the trust or
estate;
(b) for any other person mentioned in subregulation 5D.2.01(3):
(i) details of income earned on the trust’s assets; and
(ii) details of expenses in operating the trust’s assets,
including remuneration, commission or other benefits
received by the trustee company; and
(iii) the net value of the trust’s assets;
(c) if required under the terms of the trust—a copy of the trust’s
audit report and financial statements for the year.
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Licensed trustee companies Chapter 5D
Powers etc of licensed trustee companies Part 5D.2
Common funds Division 2.2
Regulation 5D.2.03
Corporations Regulations 2001 161
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2.2—Common funds
5D.2.03 Common funds
This Division is made for section 601SCC of the Act.
5D.2.04 Establishment of common funds
(1) A licensed trustee company may:
(a) establish accounts within a common fund; and
(b) establish a common fund on the basis of units or another
suitable basis.
(2) If the common fund includes money that is not estate money and
that is not otherwise held in trust, the licensed trustee company is
taken to hold the money in trust for the person on whose behalf the
money is invested in the common fund.
5D.2.05 Deciding details about common funds
(1) A licensed trustee company that is establishing a common fund
commits an offence if, at the time of establishing the fund, it does
not ensure that its Board makes a decision, in writing, about the
following:
(a) any limitation on the amount of money that will form the
common fund;
(b) the investment strategy for the common fund, including the
following:
(i) the class of investments in which the common fund may
be invested;
(ii) the procedure for valuing the investments;
(iii) if the trustee company is to seek expert advice about
proposed investments—the type of expert advice to be
sought;
Federal Register of Legislative Instruments F2015C00303
Chapter 5D Licensed trustee companies
Part 5D.2 Powers etc of licensed trustee companies
Division 2.2 Common funds
Regulation 5D.2.06
162 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) the amount of fees that are to be paid by:
(i) the common fund for the provision of traditional trustee
company services; and
(ii) each account in the common fund;
(d) the manner in which a withdrawal can be made from the
common fund;
(e) the procedure for auditing the common fund;
(f) if the common fund is to have a limited life—the duration of
the common fund;
(g) if the common fund is to have a minimum amount that may
be invested in the fund on account of each estate—the
minimum amount.
Penalty: 50 penalty units.
(2) The licensed trustee company commits an offence if it does not:
(a) within 14 days of making the decision:
(i) send a copy of the decision to ASIC; and
(ii) publish a copy of the decision on its website; and
(b) if requested by a person entitled to request an annual
information return under subregulation 5D.2.01(3), make a
copy of the decision available to the person within 30 days of
the request being received.
Penalty: 50 penalty units.
5D.2.06 Operation of common funds
Compliance with the Act and regulations
(1) A licensed trustee company may, from time to time and without
liability for breach of trust, pay into or withdraw an amount from a
common fund in accordance with the Act and these Regulations.
Note: Payments into a common fund may be prohibited where this is
contrary to the conditions on which the company holds the money: see
subsection 601SCB(3) of the Act.
Federal Register of Legislative Instruments F2015C00303
Licensed trustee companies Chapter 5D
Powers etc of licensed trustee companies Part 5D.2
Common funds Division 2.2
Regulation 5D.2.06
Corporations Regulations 2001 163
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Withdrawals
(2) A licensed trustee company may do the following:
(a) withdraw an amount from a common fund for a purpose
relating to a trust or estate that is part of the fund and is
managed or administered by the company;
(b) withdraw from a common fund an amount at credit in the
fund on account of a trust matter or a managed estate and
invest the amount on the separate account of the matter or
estate.
(3) A licensed trustee company commits an offence if it pays interest
from the common fund on withdrawn amounts on or after the day
of the withdrawal.
Penalty: 50 penalty units.
Derivatives
(4) A licensed trustee company commits an offence if:
(a) when managing and administering a common fund, the
trustee company enters into a derivative; and
(b) at the time of entering into the derivative:
(i) the trustee company did not do so for the purpose of
managing a financial risk arising from:
(A) variations in the expenses of the common fund;
or
(B) variations in the revenue obtainable from
investments made by the common fund; and
(ii) the arrangement was not in accordance with the trustee
company’s equitable and other duties as a trustee under
the relevant State or Territory provisions set out in
Schedule 8AE.
Penalty: 50 penalty units.
Federal Register of Legislative Instruments F2015C00303
Chapter 5D Licensed trustee companies
Part 5D.2 Powers etc of licensed trustee companies
Division 2.2 Common funds
Regulation 5D.2.06
164 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Applying income from investment
(5) A licensed trustee company commits an offence if it applies
income from investment of a common fund other than for:
(a) payment of the company’s fee for the proper administration
and management of the fund under the Act, regulations and
terms of the common fund, proportionate to the value of the
work done or the services rendered; and
(b) allocation in accordance with subregulation (6) in relation to
the accounts from which the fund is derived.
Penalty: 50 penalty units.
(6) For paragraph (5)(b), the allocation must be made at intervals not
exceeding 6 months.
Investments
(7) A licensed trustee company commits an offence if:
(a) the trustee company invests money committed to its
administration or management; and
(b) the investment is:
(i) not in accordance with a decision of the Board made for
the purpose of regulation 5D.2.05; and
(ii) not made in a manner in which trust funds may be
invested by a trustee under the relevant State or
Territory provisions set out in Schedule 8AE.
Penalty: 50 penalty units.
Valuation of investments
(8) A licensed trustee company commits an offence if it does not
comply with the following requirements about the valuation of
investments of common funds:
(a) by the third business day of each month, the trustee company
must decide the value of the investments in each common
fund as at the first business day of the month;
Federal Register of Legislative Instruments F2015C00303
Licensed trustee companies Chapter 5D
Powers etc of licensed trustee companies Part 5D.2
Common funds Division 2.2
Regulation 5D.2.07
Corporations Regulations 2001 165
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) subject to subregulation (9), in deciding the value of
securities listed on a financial market for a month, the trustee
company must take the last sale price of the first business day
of the month published by the market operator as the value of
the listed securities;
(c) the trustee company must make withdrawals from the
common fund and further investments on the basis of the last
valuation of investments made by the company.
Penalty: 50 penalty units.
(9) The requirement in paragraph 8(b) does not apply if, in a particular
month, the licensed trustee company decides it is in the best
interests of each account in the common fund that a sale price used
for the valuation be one taken later in that month.
Realising investments
(10) A licensed trustee company may sell investments belonging to a
common fund.
(11) A licensed trustee company that has realised an investment in a
common fund commits an offence if it does not credit or debit a
profit or loss from the investment to the unit holders of the
common fund:
(a) in proportion to the amount invested in the common fund by
the unit holders at the time of the realisation; and
(b) within 14 days of the realisation.
Penalty: 50 penalty units.
5D.2.07 Register of investments
(1) A licensed trustee company commits an offence if it does not
maintain a register of investments for each common fund in
accordance with subregulation (2).
Penalty: 50 penalty units.
(2) The register must contain:
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Chapter 5D Licensed trustee companies
Part 5D.2 Powers etc of licensed trustee companies
Division 2.2 Common funds
Regulation 5D.2.08
166 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) a record identifying each investment made by the common
fund; and
(b) details of amounts held to the credit of the common fund.
Note: For other obligations relating to common funds: see section 601SCB
of the Act.
5D.2.08 Financial reports
(1) A licensed trustee company must comply with this regulation in
relation to each common fund established by the company that is
not a registered scheme.
Account keeping
(2) The licensed trustee company commits an offence if it does not
keep accounts that:
(a) correctly record and explain its transactions for the common
fund and the fund’s financial position and performance; and
(b) would enable true and fair financial statements to be prepared
and audited.
Penalty: 50 penalty units.
Auditing
(3) The licensed trustee company commits an offence if it does not:
(a) have the financial statements for a financial year for the
common fund audited by a registered company auditor; and
(b) obtain an auditor’s report for the financial statements.
Penalty: 50 penalty units.
Lodging financial statements with ASIC
(4) The licensed trustee company commits an offence if it does not
lodge the audited financial statements for the fund with ASIC
within 3 months of the end of the financial year.
Penalty: 50 penalty units.
Federal Register of Legislative Instruments F2015C00303
Licensed trustee companies Chapter 5D
Powers etc of licensed trustee companies Part 5D.2
Common funds Division 2.2
Regulation 5D.2.08
Corporations Regulations 2001 167
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Request for financial information
(5) A person who is entitled to request an annual information return
under subregulation 5D.2.01(3) may request, in writing, that the
licensed trustee company provide the information mentioned in
subregulation (7).
(6) The licensed trustee company commits an offence if it does not
provide the information mentioned in subregulation (7) to the
person within 30 days of receiving the request under
subregulation (5).
Penalty: 50 penalty units.
(7) The information that must be provided is:
(a) a copy of the common fund’s financial statements and audit
report; and
(b) the classes of investments in which the common fund is
invested and how the investment is divided between each
class; and
(c) the trustee company’s investment strategy for the common
fund.
Federal Register of Legislative Instruments F2015C00303
Chapter 5D Licensed trustee companies
Part 5D.3 Regulation of fees charged by licensed trustee companies
Regulation 5D.3.01
168 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 5D.3—Regulation of fees charged by licensed
trustee companies
5D.3.01 Modification of section 601TAB of the Act: disclosure to
clients of changed fees
For paragraph 601YAB(1)(b) of the Act, Chapter 5D of the Act
applies as if section 601TAB of the Act were modified by inserting
after subsection (3) the following subsections:
‘(4) A licensed trustee company is not required to comply with
paragraph (1)(a) or (b) or (3)(a) in relation to a client who is a lost
client, or an agent who is a lost agent.
(5) In subsection (4):
lost client means a client who, at a particular time, is
uncontactable.
lost agent means an agent who, at a particular time, is
uncontactable.
(6) In subsection (5):
uncontactable, in relation to a person who is a client or an agent of
a licensed trustee company, means:
(a) the licensed trustee company:
(i) never had an address for the person; or
(ii) sent at least 1 written communication to the person’s
last known address which was returned unclaimed and
the person has not, since the communication, given the
company a contact address; and
(b) if the person is an agent, the licensed trustee company made a
reasonable attempt to get the agent’s address from the agent’s
client or the client’s carers.’
Federal Register of Legislative Instruments F2015C00303
Licensed trustee companies Chapter 5D
Obligations of receiving company after transfer Part 5D.4
Regulation 5D.4.01
Corporations Regulations 2001 169
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 5D.4—Obligations of receiving company after
transfer
5D.4.01 Preserving rights under dispute resolution systems and
compensation arrangements
(1) This regulation applies if ASIC makes a determination under
subsection 601WBA(1) of the Act that there is to be a transfer of
estate assets and liabilities from a transferring company to a
receiving company.
(2) For section 601SAB of the Act, the obligations of the receiving
company include the provision to retail clients of access to the
receiving company’s compensation arrangements, and dispute
resolution system, in relation to a complaint arising from the
provision of traditional trustee services by the transferring
company.
(3) In this regulation:
compensation arrangements, for a receiving company, means the
arrangements the receiving company is required to have under
subsection 912B(1) of the Act.
dispute resolution system, for a receiving company, means the
dispute resolution system the receiving company is required to
have under paragraph 912A(1)(g) of the Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 6 Takeovers
Part 6.2 Exceptions to the prohibition
Regulation 6.2.01
170 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 6—Takeovers
Part 6.2—Exceptions to the prohibition
6.2.01 Prescribed circumstances (Act s 611)
For item 20 in the table in section 611 of the Act, the acquisition of
a relevant interest in voting shares in a following body corporate is
prescribed:
(a) a body corporate that is incorporated within Australia or an
external Territory and is a public authority or an
instrumentality or agency of the Crown in right of a State or
Territory;
(b) a corporation sole;
(f) a foreign company or recognised company in respect of
which an exemption from compliance with subsection 61(1)
of the Co-operation Act 1923 of New South Wales is in
force;
(g) a society within the meaning of The Co-operative and Other
Societies Act of 1967 or The Co-operative Housing Societies
Act of 1958 of Queensland;
(i) an association within the meaning of The Primary
Producers’ Co-operative Associations Act of 1923 of
Queensland;
(j) an association, society, institution or body incorporated under
the Associations Incorporation Act 1981 of Queensland;
(k) a body incorporated or deemed to be incorporated by or
under a law of South Australia other than the Corporations
Law of South Australia, the Companies Code (South
Australia) or a corresponding previous enactment of South
Australia;
(l) a society (other than a society that is a financial institution)
within the meaning of section 5 of the Building Societies Act
1976 of Western Australia;
Federal Register of Legislative Instruments F2015C00303
Takeovers Chapter 6
Exceptions to the prohibition Part 6.2
Regulation 6.2.02
Corporations Regulations 2001 171
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(n) a co-operative company registered under Part VI of the
Companies (Co-operative) Act 1943 or a corresponding
previous enactment of Western Australia;
(o) a society registered under the Co-operative and Provident
Societies Act 1903 of Western Australia;
(p) an association, society, institution or body incorporated under
the Associations Incorporation Act 1895 of Western
Australia;
(q) a trustee bank registered under the Trustee Banks Act 1984 of
Tasmania;
(r) a society (other than a society that is a financial institution)
registered under the Co-operative Industrial Societies Act
1928 of Tasmania;
(ra) a society registered under the Co-operative Housing Societies
Act 1963 of Tasmania;
(s) an association, society, institution or body incorporated under
the Associations Incorporations Act 1964 of Tasmania;
(t) a body corporate created by section 75Q of the Conveyancing
and Law of Property Act 1884 of Tasmania;
(u) a society (other than a society that is a financial institution)
registered under the Co-operative Societies Act 1939 of the
Australian Capital Territory;
(v) an association, society, institution or body incorporated under
the Associations Incorporation Act 1953 of the Australian
Capital Territory;
(w) a corporation constituted under the Unit Titles Act 1970 of
the Australian Capital Territory;
(x) a society registered under the Co-operatives Act 1997 of the
Northern Territory.
6.2.02 Other prescribed circumstances (Act s 611)
For item 20 in the table in section 611 of the Act, the acquisition
by a person of a relevant interest in voting shares in a body
corporate that results from the person holding an office specified in
Schedule 3 is prescribed.
Federal Register of Legislative Instruments F2015C00303
Chapter 6 Takeovers
Part 6.5 The takeover procedure
Regulation 6.5.01
172 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 6.5—The takeover procedure
6.5.01 Wholesale holder of securities—telephone monitoring during
bid period
(1) For paragraph 648J(4)(a) of the Act, the amount applicable in
relation to securities to which that paragraph applies is $500 000,
determined on the basis of the market value of the securities.
(2) For paragraph 648J(4)(d) of the Act, the following persons are
prescribed:
(a) a director of a recorder mentioned in subsection 648J(1) of
the Act;
(b) an executive officer of a recorder mentioned in
subsection 648J(1) of the Act.
(3) For paragraph 648J(4)(d) of the Act:
(a) an authorised representative of a financial services licensee
who is acting on behalf of the bidder or target in relation to a
takeover bid is prescribed only if the authorised
representative is not involved in a telephone call as a holder
of securities in the bidder or the target; and
(b) any other person who is acting on behalf of the bidder or
target in relation to a takeover bid is prescribed only if that
person is not involved in a telephone call as a holder of
securities in the bidder or the target.
Federal Register of Legislative Instruments F2015C00303
Takeovers Chapter 6
Variation of offers Part 6.6
Regulation 6.6.01
Corporations Regulations 2001 173
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 6.6—Variation of offers
6.6.01 Right to withdraw acceptance
(1) For paragraph 650E(3)(a) of the Act, a notice under
paragraph 650E(2)(a) of the Act relating to securities entered on a
register or subregister of a prescribed CS facility must be in a form
approved by the operating rules of that prescribed CS facility for
Part 6.6 of the Act (which may include an electronic form).
(2) For paragraph 650E(4)(a) of the Act, if securities are entered on a
register or subregister of a prescribed CS facility, a person to
whom section 650E of the Act applies must take the action that the
operating rules of the prescribed CS facility require in relation to
the return of the securities.
(3) For paragraph 650E(5)(a) of the Act, if a person withdraws an
acceptance of an offer, the bidder must take any action that the
operating rules of the prescribed CS facility require in relation to
any of the securities:
(a) to which the acceptance relates; and
(b) that are entered on a register or subregister of the prescribed
CS facility.
Federal Register of Legislative Instruments F2015C00303
Chapter 6 Takeovers
Part 6.8 Acceptances
Regulation 6.8.01
174 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 6.8—Acceptances
6.8.01 Acceptance of offers made under off-market bid
For paragraph 653A(b) of the Act, if the operating rules of a
prescribed CS facility require an acceptance of an offer to which
paragraph 653A(a) applies to be made in a particular way, to the
extent that the acceptance relates to the securities in the offer, the
acceptance must be made in that way.
6.8.02 Acceptances by transferees and nominees of offers made
under off-market bid
For paragraph 653B(4)(a) of the Act, a notice relating to securities
entered on a register or subregister of a prescribed CS facility must
be in a form approved by the operating rules of the prescribed CS
facility for Part 6.8 of the Act (which may include an electronic
form).
Federal Register of Legislative Instruments F2015C00303
Takeovers Chapter 6
Review and intervention Part 6.10
Regulation 6.10.01
Corporations Regulations 2001 175
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 6.10—Review and intervention
6.10.01 Application for review of Panel decision (Act s 657EA)
For subsection 657EA(3) of the Act, an application for review of a
decision of the Panel must not be made later than 2 business days
after the day on which the decision was made.
Federal Register of Legislative Instruments F2015C00303
Chapter 6A Compulsory acquisitions and buy-outs
Part 6A.1 Compulsory acquisitions and buy-outs after takeover bid
Regulation 6A.1.01
176 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 6A—Compulsory acquisitions and
buy-outs
Part 6A.1—Compulsory acquisitions and buy-outs
after takeover bid
6A.1.01 Terms on which securities to be acquired
For paragraph 661C(4)(a) of the Act, an election relating to
securities entered on an electronic register or subregister of a
prescribed CS facility must be in an electronic form approved by
the operating rules of the prescribed CS facility.
Federal Register of Legislative Instruments F2015C00303
Continuous disclosure Chapter 6CA
Regulation 6CA.1.01
Corporations Regulations 2001 177
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 6CA—Continuous disclosure
6CA.1.01 Continuous disclosure: other disclosing entities
For paragraph 675(2)(d) of the Act, the disclosure of information
under section 675 of the Act is not required if:
(a) a reasonable person would not expect the information to be
disclosed; and
(b) the information is confidential; and
(c) at least 1 of the following applies:
(i) the disclosure of the information would contravene a
law;
(ii) the information is about a matter of supposition;
(iii) the information is not definite enough to make
disclosure appropriate;
(iv) the information relates to an incomplete proposal or a
matter that is in the course of negotiation;
(v) the information was prepared or created for the internal
management purposes of the entity;
(vi) the information is a trade secret.
Federal Register of Legislative Instruments F2015C00303
Chapter 6D Fundraising
Part 6D.2 Disclosure to investors about securities
Regulation 6D.2.01
178 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 6D—Fundraising
Part 6D.2—Disclosure to investors about securities
6D.2.01 Exemption—member shares
Part 6D.2 of the Act does not apply to an offer of a member share
within the meaning given by regulation 12.8.03.
6D.2.02 Exemption—foreign companies
Part 6D.2 of the Act does not apply to an offer under a dividend
reinvestment plan or bonus share plan of fully-paid shares in a
foreign company to an existing holder of shares in the foreign
company.
6D.2.03 Sophisticated investors
(1) For subparagraph 708(8)(c)(i) of the Act, $2.5 million is specified.
(2) For subparagraph 708(8)(c)(ii) of the Act, $250 000 is specified.
Note: Under subsection 708(8) of the Act, an offer of a body’s securities
does not need disclosure to investors under Part 6D.2 of the Act if it
appears from a certificate given by a qualified accountant no more
than 6 months before the offer is made that the person to whom the
offer is made:
(a) has net assets of at least the amount specified in regulations made for the purposes of subparagraph 708(8)(c)(i); or
(b) has a gross income for each of the last 2 financial years of at least the amount specified in regulations made for the purposes of subparagraph 708(8)(c)(ii).
6D.2.04 Simple corporate bonds—base prospectus
(1) For subsections 713C(5) and (6) of the Act, this regulation
specifies:
(a) the information that must be contained in a base prospectus
for simple corporate bonds; and
Federal Register of Legislative Instruments F2015C00303
Fundraising Chapter 6D
Disclosure to investors about securities Part 6D.2
Regulation 6D.2.04
Corporations Regulations 2001 179
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the statements that must be set out in a base prospectus for
simple corporate bonds.
(2) Subregulation (1) does not prevent a base prospectus from
containing other material or setting out other statements.
(3) A base prospectus must contain a table of contents and sections
dealing with the following matters:
(a) Section 1: What you need to know;
(b) Section 2: About the bonds;
(c) Section 3: About the issuer;
(d) Section 4: Risks;
(e) Section 5: Other information you should consider;
(f) Section 6: Glossary.
Section 1: What you need to know
(4) The following statements, or statements to the same effect as the
following statements, must be set out in section 1 of a base
prospectus:
(a) This document will be the base prospectus for these bonds
for 3 years from the time it is lodged with the Australian
Securities and Investments Commission.
(b) There will be a separate offer-specific prospectus for each
offer of bonds during the life of this base prospectus.
(c) To make an informed investment decision about these bonds,
you should read the offer-specific prospectus and this base
prospectus before investing.
(d) This base prospectus alone is not an offer. The offer is
contained in the offer-specific prospectus, this base
prospectus and other information that is incorporated by
reference into the offer-specific prospectus and this base
prospectus.
(e) To find out more about the pros and cons of investing in
corporate bonds, visit ASIC’s MoneySmart website:
http://moneysmart.gov.au.
Federal Register of Legislative Instruments F2015C00303
Chapter 6D Fundraising
Part 6D.2 Disclosure to investors about securities
Regulation 6D.2.04
180 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Section 2: About the bonds
(5) The following information must be contained in section 2 of a base
prospectus:
(a) information on the program of the bonds (if applicable),
including any pre-planned future issues of bonds;
(b) details of the key aspects of the bonds, including information
about the following matters:
(i) the interaction between the coupon rate and yield;
(ii) the interest rate of the bonds;
(iii) the term of the bonds;
(iv) the maturity and redemption of the bonds;
(v) events that will constitute default;
(vi) guarantees in relation to the bonds and information
about any guarantors;
(vii) security and ranking.
Note: If information mentioned in this subregulation is contained in another
document that has been lodged with ASIC, a base prospectus may
refer to that lodged document instead of setting out the information
(see section 713E of the Act).
Section 3: About the issuer
(6) The following information must be contained in section 3 of a base
prospectus:
(a) brief information about the issuing body that includes a
summary of the body’s:
(i) business; and
(ii) management personnel (including directors and senior
managers); and
(iii) business strategy; and
(iv) governance arrangements;
(b) the trust deed relating to the issuing body;
(c) an explanation of the role of the trustee;
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Fundraising Chapter 6D
Disclosure to investors about securities Part 6D.2
Regulation 6D.2.04
Corporations Regulations 2001 181
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(d) additional information about the issuing body that relates to
the investment decision, and where that information can be
obtained, including:
(i) a reference to the issuing body’s annual report and
financial report; and
(ii) a reference to any half-year report that the issuing body
lodged with ASIC after it lodged an annual financial
report and before it lodged the most recent copy of the
base prospectus with ASIC; and
(e) the key financial ratios, calculated in accordance with
regulation 6D.2.06, that are relevant to the issuing body,
accompanied by:
(i) an explanation of those key financial ratios; and
(ii) information about how a change to those key financial
ratios may affect the bonds to be issued under the base
prospectus.
Note: If information mentioned in this subregulation is contained in another
document that has been lodged with ASIC, a base prospectus may
refer to that lodged document instead of setting out the information
(see section 713E of the Act).
(7) The following statements, or statements to the same effect as the
following statements, must be set out in section 3 of a base
prospectus:
A publicly listed entity must release financial reports and
continuously disclose information that may have an impact on its
share or bond price. This information is available publicly on the
relevant market exchange. You should consider this information
when making an investment decision about bonds. While this
information is important, it is not considered part of the disclosure
document for the offer of bonds using this base prospectus.
Section 4: Risks
(8) The following information must be contained in section 4 of a base
prospectus:
(a) the main risks associated with bonds and an explanation of
those risks;
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Chapter 6D Fundraising
Part 6D.2 Disclosure to investors about securities
Regulation 6D.2.04
182 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the issuing body’s main business risks;
(c) if other risks specific to bonds may be relevant to a
consumer’s investment decision—an explanation of those
other risks;
(d) if other business risks may be relevant to a consumer’s
investment decision—an explanation of those other risks.
Note: If information mentioned in this subregulation is contained in another
document that has been lodged with ASIC, a base prospectus may
refer to that lodged document instead of setting out the information
(see section 713E of the Act).
Section 5: Other information you should consider
(9) The following information must be contained in section 5 of a base
prospectus:
(a) an explanation of the consequences, relating to taxation, of
investing in bonds;
(b) information relating to privacy in general and the issuing
body’s obligations under privacy laws;
(c) any applicable selling restrictions.
Note: If information mentioned in this subregulation is contained in another
document that has been lodged with ASIC, a base prospectus may
refer to that lodged document instead of setting out the information
(see section 713E of the Act).
(10) The following statements, or statements to the same effect as the
following statements, must be set out in section 5 of a base
prospectus:
(a) More information on the tax implications associated with
investing in bonds can be found on the Australian Taxation
Office’s website: http://www.ato.gov.au.
(b) The following is a list of material referred to, but not set out
in full, in this base prospectus. However, the material (or
relevant extracts of the material) is incorporated by reference
and, as such, forms part of the offer of bonds covered by this
base prospectus.
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Fundraising Chapter 6D
Disclosure to investors about securities Part 6D.2
Regulation 6D.2.05
Corporations Regulations 2001 183
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(11) Section 5 of a base prospectus must contain a list of material
referred to, but not set out in full, in the prospectus.
Section 6: Glossary
(12) The information that section 6 of a base prospectus must contain is
information that is adequate to explain the meanings of terms
required to understand the content of:
(a) the base prospectus; or
(b) the offer-specific prospectus that is combined with the base
prospectus to create a 2-part simple corporate bonds
prospectus.
Note: See section 713B of the Act.
6D.2.05 Simple corporate bonds—offer-specific prospectus
(1) For subsections 713D(6) and (7) of the Act, this regulation
specifies:
(a) the information that must be contained in an offer-specific
prospectus for an offer of simple corporate bonds; and
(b) the statements that must be set out in an offer-specific
prospectus for an offer of simple corporate bonds.
(2) Subregulation (1) does not prevent an offer-specific prospectus
from containing other material or setting out other statements.
(3) An offer-specific prospectus for an offer of simple corporate bonds
must contain a table of contents and sections dealing with the
following matters:
(a) Section 1: What you need to know;
(b) Section 2: Key dates and offer details;
(c) Section 3: Offer-specific information you should consider.
Section 1: What you need to know
(4) The following statements, or statements to the same effect as the
following statements, must be set out in section 1 of an
offer-specific prospectus:
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Chapter 6D Fundraising
Part 6D.2 Disclosure to investors about securities
Regulation 6D.2.05
184 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) This offer-specific prospectus is not a summary of the
information contained in the base prospectus.
(b) This offer-specific prospectus is only relevant for this offer
of bonds.
(c) A base prospectus applies to this offer of bonds.
(d) This offer-specific prospectus provides offer details, key
dates and other relevant information for the offer. The base
prospectus for this offer provides additional information that
is also critical to your decision. You should take all of the
information in the base prospectus into consideration before
making your decision in relation to this offer.
(e) To find out more about the pros and cons of investing in
corporate bonds, visit ASIC’s MoneySmart website:
http://moneysmart.gov.au.
Section 2: Key dates and offer details
(5) The following information must be contained in section 2 of an
offer-specific prospectus:
(a) the terms of the offer, which must include the following:
(i) the name of the issuing body;
(ii) the size of the series, or tranche, to which the offer
relates;
(iii) the face value of the bonds;
(iv) the term of the bonds;
(v) the maturity date of the bonds;
(vi) guarantees in relation to the bonds and information
about any guarantors;
(vii) the interest rate of the bonds;
(viii) interest payment dates;
(ix) events that will constitute default;
(x) details of any existing security;
(xi) the structure of the offer;
(xii) the minimum size of an application for the bonds;
(xiii) the prescribed financial market on which the bonds will
be listed;
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Fundraising Chapter 6D
Disclosure to investors about securities Part 6D.2
Regulation 6D.2.05
Corporations Regulations 2001 185
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(b) a short explanation of the circumstances in which the bonds
can be redeemed;
(c) any fees and costs associated with the offer;
(d) either:
(i) if a provision of the base prospectus contains
information about any selling restrictions—a reference
to the provision; or
(ii) if subparagraph (i) does not apply—information about
any selling restrictions;
(e) an explanation of where investors can obtain additional
information about the offer, including:
(i) a reference to financial advisors or other professional
advisors; and
(ii) the contact details of the issuing body.
Note: If information mentioned in this subregulation is contained in another
document that has been lodged with ASIC, an offer-specific
prospectus may refer to that lodged document instead of setting out
the information (see section 713E of the Act).
Section 3: Offer-specific information you should consider
(6) The following information must be contained in section 3 of an
offer-specific prospectus:
(a) any significant information necessary to update the
information in the base prospectus;
(b) any notices that the issuing body has issued to explain
changes that have occurred to the base prospectus since it
was lodged with ASIC;
(c) the key financial ratios, calculated in accordance with
regulation 6D.2.06, that are relevant to the issuing body,
accompanied by:
(i) details of any change in those key financial ratios since
the last offer-specific prospectus was issued; or
(ii) if no offer-specific prospectus has previously been
issued—details of any change in those key financial
ratios compared with the key financial ratios at the time
the base prospectus was lodged with ASIC;
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Chapter 6D Fundraising
Part 6D.2 Disclosure to investors about securities
Regulation 6D.2.06
186 Corporations Regulations 2001
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(d) an explanation of how the issuing body will use the funds
raised by issuing the bonds;
(e) a brief summary of the effect of the offer on the issuing body;
(f) the ranking of the bonds and any other debt on issue;
(g) an explanation of any changes to the risks disclosed in the
base prospectus;
(h) the amount that anyone has paid or agreed to pay, or the
nature and value of any benefit that anyone has given or
agreed to give, to:
(i) any directors or proposed directors of the issuing body;
or
(ii) a person named in the prospectus as performing a
function in a professional, advisory or other capacity in
connection with the preparation or distribution of the
prospectus; or
(iii) a promoter of the issuing body; or
(iv) an underwriter (but not a sub-underwriter) to the issue
or sale or a financial services licensee named in the
prospectus as a financial services licensee involved in
the issue or sale.
Note: If information mentioned in this subregulation is contained in another
document that has been lodged with ASIC, an offer-specific
prospectus may refer to that lodged document instead of setting out
the information (see section 713E of the Act).
6D.2.06 Simple corporate bonds—key financial ratios relevant to
issuing body
(1) For paragraphs 6D.2.04(6)(e) and 6D.2.05(6)(c), the key financial
ratios that are relevant to an issuing body are:
(a) the gearing ratio; and
(b) the working capital ratio; and
(c) the interest cover ratio.
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Fundraising Chapter 6D
Disclosure to investors about securities Part 6D.2
Regulation 6D.2.06
Corporations Regulations 2001 187
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(2) The key financial ratios referred to in subregulation (1) must be
calculated in accordance with subregulations (3) to (5), based on
the issuing body’s most recent financial statements or, if
applicable, the issuing body’s consolidated financial statements.
(3) The gearing ratio must be calculated using the following formula:
(4) The working capital ratio must be calculated using the following
formula:
(5) The interest cover ratio must be calculated using the following
formula:
where:
EBITDA means earnings before net interest expense, taxes,
depreciation and amortisation, for the period to which the issuing
body’s most recent financial statements relate.
net interest expense means the interest expense net of interest
revenue, taking account of any related hedging arrangements
recognised in the profit and loss statements, for the period to which
the issuing body’s most recent financial statements relate.
Note: The issuing body’s most recent financial statements may relate to a
period that is less than 12 months.
Total liabilities
Total equity
Current assets
Current liabilities
EBITDA
Net interest expense
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Chapter 6D Fundraising
Part 6D.5 Fundraising—miscellaneous
Regulation 6D.5.01
188 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 6D.5—Fundraising—miscellaneous
6D.5.01 Warrants that are securities
For paragraph 742(1)(b) of the Act, a warrant that is a security is
exempted from all provisions of Chapter 6D of the Act.
6D.5.02 Modification of paragraph 708(8)(c) of the Act: renewal
period for accountants’ certificates
For paragraph 742(1)(c) of the Act, section 708 of the Act applies
as if paragraph 708(8)(c) of the Act were modified by omitting “6
months” and substituting “2 years”.
Federal Register of Legislative Instruments F2015C00303
Prepared by the Office of Parliamentary Counsel, Canberra
Corporations Regulations 2001
Statutory Rules No. 193, 2001
made under the
Corporations Act 2001
Compilation No. 113
Compilation date: 31 March 2015
Includes amendments up to: SLI No. 39, 2015
Registered: 9 April 2015
This compilation is in 7 volumes
Volume 1: regulations 1.0.01–6D.5.02
Volume 2: regulations 7.1.02–7.6.08E
Volume 3: regulations 7.7.01–8.4.02
Volume 4: regulations 9.1.01–12.9.03
Volume 5: Schedules 1, 2 and 2A
Volume 6: Schedules 3–12
Volume 7: Endnotes
Each volume has its own contents
Federal Register of Legislative Instruments F2015C00303
About this compilation
This compilation
This is a compilation of the Corporations Regulations 2001 that shows the text
of the law as amended and in force on 31 March 2015 (the compilation date).
This compilation was prepared on 31 March 2015.
The notes at the end of this compilation (the endnotes) include information
about amending laws and the amendment history of provisions of the compiled
law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the
compiled law. Any uncommenced amendments affecting the law are accessible
on ComLaw (www.comlaw.gov.au). The details of amendments made up to, but
not commenced at, the compilation date are underlined in the endnotes. For
more information on any uncommenced amendments, see the series page on
ComLaw for the compiled law.
Application, saving and transitional provisions for provisions and
amendments
If the operation of a provision or amendment of the compiled law is affected by
an application, saving or transitional provision that is not included in this
compilation, details are included in the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as
modified but the modification does not amend the text of the law. Accordingly,
this compilation does not show the text of the compiled law as modified. For
more information on any modifications, see the series page on ComLaw for the
compiled law.
Self-repealing provisions
If a provision of the compiled law has been repealed in accordance with a
provision of the law, details are included in the endnotes.
Federal Register of Legislative Instruments F2015C00303
Corporations Regulations 2001 i
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Contents
Chapter 9—Miscellaneous 1
Part 9.1—Registers and registration of documents 1 9.1.01 Prescribed registers............................................................1
9.1.02 Prescribed information ......................................................2
Part 9.2—Registration of auditors and liquidators 7
Division 2—Registration 7
9.2.01 Practical experience in auditing (Act s 1280(2)) ...............7
9.2.02 Prescribed universities and institutions (Act ss
1280(2A) and 1282(2))......................................................7
9.2.03 Prescribed courses (Act s 1280(2A)) .................................9
Division 2A—Conditions on registration 11
9.2.08 Kinds of conditions (Act s 1289A)..................................11
Part 9.2A—Authorised audit companies 12
Division 1—Registration 12
9.2A.01 Application for registration as authorised audit
company (Act s 1299A) ..................................................12
9.2A.03 Annual statements by authorised audit company
(Act s 1299G) ..................................................................13
Part 9.4—Penalty notice offences and penalties 16 9.4.01 Prescribed offences (Act s 1313).....................................16
9.4.02 Prescribed penalties (Act s 1313) ....................................16
9.4.03 Late payment of review fee—prescribed offence
and penalty (Act s 1313 and 1364) ..................................16
Part 9.4A—Register and index 18 9.4A.01 Definitions for Part 9.4A.................................................18
9.4A.02 Register and index must be kept up to date:
subsection 1306(4A) of the Act.......................................18
Part 9.5—Delegation of powers and functions under the Act 19 9.5.01 Prescribed functions (Law s 1345A(1))...........................19
Part 9.7—Unclaimed property 20 9.7.01 Entitlement to unclaimed property ..................................20
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Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 9.12—Matters relating to regulations 22 9.12.01 Exemptions from Chapter 7.............................................22
9.12.02 Exemption from provisions of Chapter 7—CLS
Bank ................................................................................22
9.12.03 Partial exemption of foreign-based market
licensees from certain notification obligations ................24
9.12.04 Exemption from provisions of Chapter 7—
compliance with ASIC exemptions .................................26
9.12.04 Exemption from provisions of Chapter 7—carbon
unit auctions ....................................................................26
9.12.05 Exemption from provisions of Chapter 7—gas
trading exchange .............................................................27
Chapter 10—Repeals 28
Part 10.1—Old Corporations Regulations 28 10.1.01 Repeal of Corporations Regulations 1990 ......................28
10.1.02 Repeal of Partnerships and Associations
Application Order 1999 (No. 1) ......................................28
Part 10.2—Transitional arrangements relating to Financial
Services Reform legislation 29
Division 1—Preliminary 29
10.2.01 Application of Part 10.2 ..................................................29
10.2.02 Definitions.......................................................................29
10.2.02A References to transition periods ......................................29
10.2.02B References to the application of Division 2 of
Part 7.9 of the Act ...........................................................30
Division 1A—Treatment of proposed markets that have not
started to operate by the FSR commencement 31
10.2.02C Proposed markets ............................................................31
Division 2—Transitional arrangements relating to business rules
or listing rules 32
Subdivision 2.1—Business rules 32
10.2.03 Amendment of business rules of securities
exchange before FSR commencement.............................32
10.2.04 Amendment of SCH business rules before FSR
commencement................................................................33
10.2.05 Amendment of SEGC business rules before FSR
commencement................................................................34
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10.2.06 Amendment of business rules of futures body
before FSR commencement ............................................35
Subdivision 2.2—Listing rules 36
10.2.07 Amendment of listing rules of securities exchange
before FSR commencement ............................................36
Division 3—Status of directions and notices 38
10.2.08 Direction to securities exchange to comply with
ongoing requirements ......................................................38
10.2.09 Notice to securities exchange of need to prohibit
trading .............................................................................38
10.2.10 Notice to securities exchange prohibiting trading ...........38
10.2.11 Direction to futures exchange—orderly market ..............39
Division 4—Assistance to ASIC 40
10.2.12 Obligations of securities exchange: disciplinary
action...............................................................................40
10.2.13 Obligations of securities exchange: particulars of
contravention...................................................................40
10.2.14 Obligations of securities exchange: information
about listed disclosing entity ...........................................41
10.2.15 Obligations of securities clearing house:
disciplinary action ...........................................................41
10.2.16 Obligations of futures body: disciplinary action..............42
10.2.17 Obligations of futures body: particulars of
contravention...................................................................42
10.2.18 Obligations of clearing house for futures
exchange: information about listed disclosing
entity................................................................................43
Division 5—Special reports 44
10.2.19 Special report by securities exchange about
compliance with ongoing requirements...........................44
10.2.20 Special report by securities exchange about
compliance with ongoing requirements: ASIC
requirements ....................................................................44
Division 5A—Transactions by holder of financial services licence
or a representative of the holder of such a licence 45
10.2.20A References to financial service licensee ..........................45
Division 5B—Obligation to pay money into account 46
10.2.20B Financial products quoted on Australian Stock
Exchange Limited ...........................................................46
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Division 6—Self-listing 48
10.2.21 Status of arrangements for self-listing.............................48
10.2.22 Status of exemption relating to self-listing ......................48
Division 7—Decisions about membership of futures exchange 49
10.2.23 Status of notice to applicant ............................................49
10.2.24 Status of notice to ASIC..................................................49
Division 8—National Guarantee Fund 50
10.2.25 Status of claim against the National Guarantee
Fund ................................................................................50
10.2.26 Entitlement to make claim against the National
Guarantee Fund ...............................................................51
10.2.27 Status of future claim against the National
Guarantee Fund ...............................................................52
10.2.27A Expenditure of excess funds from National
Guarantee Fund ...............................................................53
Division 9—Claims against fidelity funds 54
10.2.28 Status of claim against fidelity fund ................................54
10.2.29 Entitlement to make claim against fidelity fund ..............54
10.2.29A Status of incomplete claim against fidelity fund..............55
10.2.30 Status of future claim against fidelity fund......................55
Division 10—Status of netting markets 57
10.2.31 Netting markets ...............................................................57
10.2.32 Netting market approval granted before the FSR
commencement................................................................57
Division 11—Status of listed securities 59
10.2.33 Securities of exempt stock markets .................................59
Division 12—Miscellaneous 60
10.2.34 Preservation of nomination of body corporate as
SEGC ..............................................................................60
Division 13—Regulated principals 61
10.2.35 Definitions.......................................................................61
10.2.35A Streamlined licensing procedure for certain
regulated principals .........................................................62
10.2.36 Persons who are not covered by section 1433 of
the Act .............................................................................63
10.2.37 Variation of conditions on financial services
licence .............................................................................63
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10.2.38 Persons taken to be regulated principals: giving of
incidental advice and previously exempt persons............64
10.2.39 Reference to offer covered by Australian financial
services licence: section 911A of the Act ........................74
10.2.40 Reference to financial services licensee:
section 911A of the Act...................................................75
10.2.40A Need for an Australian financial services licence............75
10.2.41 Reference to second principal: section 911B of the
Act...................................................................................76
10.2.42 Reference to financial services licensee:
section 916D of the Act...................................................76
10.2.43 Status of insurance agent: section 1436A of the
Act...................................................................................76
10.2.44A Obligation to cite licence number in documents..............76
10.2.46 When Australian financial services licence may be
granted.............................................................................77
10.2.46A When Australian financial services licence may be
varied...............................................................................78
10.2.47 Dispute resolution requirements: no external
dispute resolution scheme................................................79
10.2.47A Modification of pre-FSR authority ..................................79
Division 14—Financial services disclosure 81
10.2.48 Obligation to give Financial Services Guide for
service arranged before application of Part 7.7 of
the Act .............................................................................81
10.2.48A Obligation to give a Financial Services Guide for a
custodial and depository service......................................82
10.2.49 Obligation to give Financial Services Guide in
relation to existing clients................................................83
10.2.50 Content of Financial Services Guide for an
authorised representative that is a regulated
principal or a representative of a regulated
principal ..........................................................................83
10.2.50A Treatment of arrangements under which a person
can instruct another person to acquire a financial
product ............................................................................85
Division 15—Other provisions relating to conduct etc 86
10.2.51 Sale offers that need disclosure .......................................86
10.2.52 Offers that do not need disclosure: small scale
offerings ..........................................................................86
10.2.52A Offers that do not need disclosure ...................................87
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10.2.53 Money other than loans: financial services licensee
who formerly held dealer’s licence..................................87
10.2.54 Money other than loans: financial services licensee
who formerly held futures broker’s licence .....................88
10.2.55 Money other than loans: financial services licensee
who was formerly a registered insurance broker .............89
10.2.56 Money other than loans: financial services licensee
who ceases to be licensed ................................................91
10.2.57 Loan money: financial services licensee who
formerly held dealer’s licence .........................................91
10.2.58 Other property of clients: financial services
licensee who formerly held dealer’s licence ....................92
10.2.59 Other property of clients: financial services
licensee who formerly held futures broker’s
licence .............................................................................92
10.2.60 Special provisions relating to insurance: financial
services licensee who was formerly a registered
insurance broker ..............................................................93
10.2.61 Obligation to report: financial services licensee
who formerly held a futures broker’s licence ..................94
10.2.62 Reporting in relation to dealings in derivatives:
financial services licensee who formerly held a
dealer’s licence ................................................................95
10.2.63 Financial statements of financial services licensee:
general .............................................................................96
10.2.64 Financial statements of financial services licensees
who were certain regulated principals .............................96
10.2.65 Auditors: certain financial services licensee who
formerly held dealer’s licence .........................................98
10.2.66 Auditors: certain financial services licensees who
held a futures broker’s licence.......................................100
10.2.67 Auditor’s report in certain matters: financial
services licensee who formerly held a dealer’s
licence ...........................................................................102
10.2.68 Auditor’s report on certain matters: financial
services licensee who formerly held a futures
broker’s licence .............................................................103
10.2.69 Auditor’s report on certain matters: financial
services licensee who was formerly a registered
insurance broker ............................................................104
10.2.70 Priority to clients’ orders: financial services
licensee who held a dealers licence ...............................104
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10.2.71 Sequencing of instructions to deal through
licensed markets: financial services licensee who
formerly held a futures brokers licence .........................105
10.2.72 Records relating to instructions to deal through
licensed markets: financial services licensee who
held a futures brokers licence ........................................105
10.2.73 Dealing with non-licensees: financial services
licensee who held a dealers licence ...............................106
10.2.73A Advertising for financial products .................................107
10.2.73B Freezing accounts ..........................................................108
Division 16—Product disclosure provisions for existing products
during transition period 109
10.2.74 Financial products in the same class..............................109
10.2.75 References to financial services licensee.......................111
10.2.76 References to retail client ..............................................111
10.2.77 References to issue of product.......................................112
10.2.78 References to Product Disclosure Statement: offer
previously accepted .......................................................112
10.2.79 References to Product Disclosure Statement:
managed investment products .......................................113
10.2.80 Lodgment of Product Disclosure Statement after
lodgment of notice.........................................................113
10.2.81 Ongoing disclosure........................................................113
10.2.82 Money received for financial product before the
product is issued: general ..............................................114
10.2.83 Money received for financial product before the
product is issued: requirement before application
of subsection 37(2) of Insurance (Agents and
Brokers) Act 1984..........................................................115
10.2.84 Confirmation of transactions .........................................115
10.2.85 Dispute resolution requirements: financial
products .........................................................................115
10.2.86 Dispute resolution requirements: regulated
principals .......................................................................115
10.2.87 Dispute resolution requirements: no external
dispute resolution scheme..............................................116
10.2.87A Meaning of financial product advice: exempt
document or statement...................................................116
Division 17—Arrangements relating to enforcement of matters
by ASIC 118
10.2.88 Definition ......................................................................118
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10.2.89 Financial services law ...................................................118
10.2.90 ASIC may have regard to prior conduct and events ......118
10.2.91 Power to act in relation to relevant old legislation ........119
Division 18—Specific kinds of documents in existence before
FSR commencement 121
10.2.92 Banning orders made before FSR commencement........121
10.2.93 Banning orders made under relevant old
legislation after FSR commencement............................122
10.2.94 Banning orders made under the Act after FSR
commencement..............................................................123
10.2.94A Prohibitions under paragraphs 827(1)(d) and
1192(1)(d) of the old Corporations Act made
before FSR commencement ..........................................124
10.2.94B Prohibitions under paragraphs 827(1)(d) and
1192(1)(d) of the old Corporations Act made after
FSR commencement......................................................124
10.2.95 Undertakings .................................................................125
10.2.96 Registers in existence before FSR commencement .......126
10.2.97 Registers created after FSR commencement .................127
10.2.98 Registers, documents and things kept before FSR
commencement..............................................................127
10.2.98A Licenses, registration, etc in force before FSR
commencement..............................................................128
Division 19—Extension of limitation periods 130
10.2.99 Application of items 111 and 121 of the Financial
Services Reform (Consequential Provisions) Act
2001 to amendments of the Australian Securities
and Investments Commission Act 2001 .........................130
Division 20—Rules for dealing with liability during transition
period 131
10.2.100 Application of Division 20 ............................................131
10.2.101 Definitions for Division 20............................................131
10.2.102 Liability of responsible person: general rules................132
10.2.103 Conduct by a person who operates as
representative and principal...........................................134
10.2.104 Operation of regulations 10.2.102 and 10.2.103............135
Division 21—Title and transfer 137
10.2.105 Loss or destruction of certificates..................................137
10.2.106 Instrument of transfer ....................................................137
10.2.107 Trustee etc may be registered as owner of shares ..........138
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10.2.108 Registration of transfer at request of transferor .............138
10.2.109 Notice of refusal to register transfer ..............................139
10.2.110 Duties of company with respect to issue of
certificates: allotment of shares or debentures or
making interests available .............................................139
10.2.111 Duties of company with respect to issue of
certificates: transfer of shares, debentures or
interests .........................................................................140
10.2.112 Notices relating to non-beneficial and beneficial
ownership of shares .......................................................141
10.2.113 What is a sufficient transfer of marketable
securities or marketable rights: general .........................142
10.2.114 Sufficient transfer by authorised trustee
corporation ....................................................................143
10.2.115 Determination of who holds quoted securities for
the purposes of a meeting: determination made
before FSR commencement ..........................................143
Division 22—Transitional matters under relevant old legislation:
Financial Transaction Reports Act 1988 145
10.2.116 Cash dealer ....................................................................145
10.2.117 Exempt cash transaction ................................................145
Division 23—Transitional matters under relevant old legislation:
Income Tax Assessment Act 1936 146
10.2.118 Offshore banking units ..................................................146
Division 24—Transitional matters under relevant old legislation:
Insurance Act 1973 147
10.2.119 Insurers carrying on class of insurance business ...........147
Division 24A—Transitional matters under relevant old
legislation: Insurance (Agents and Brokers) Act
1984 148
10.2.119A Debts of broker in relation to premiums etc ..................148
10.2.119B Disqualifications made before FSR
commencement..............................................................148
10.2.119C Disqualifications made after FSR commencement ........149
Division 25—Transitional matters under relevant old legislation:
Marine Insurance Act 1909 150
10.2.120 Marine policy effected through broker ..........................150
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Division 25A—Transitional matters under relevant old
legislation: Retirement Savings Accounts
Regulations 1997 151
10.2.120A Continuation of RSA Regulations during transition
period ............................................................................151
Division 25B—Transitional matters under relevant old
legislation: Superannuation Industry (Supervision)
Regulations 1994 152
10.2.120B Continuation of SIS Regulations during transition
period ............................................................................152
Division 26—Transitional matters under relevant old legislation:
Superannuation (Resolution of Complaints) Act
1993 153
10.2.121 Life insurance broker.....................................................153
Division 27—Transitional matters under the Act (other than
Chapter 7) 154
10.2.122 Solvency and insolvency ...............................................154
10.2.123 Managed investment products held by 100 or more
persons ..........................................................................154
10.2.124 When a managed investment scheme must be
registered .......................................................................154
10.2.125 Responsible entity to be a public company and
hold an Australian financial services licence.................155
10.2.126 Duties of officers of responsible entity..........................155
10.2.127 Voidable contracts.........................................................155
10.2.128 Situations not giving rise to relevant interests ...............156
10.2.129 Bidder’s statement content ............................................156
10.2.130 Continuous disclosure: other disclosing entities............157
10.2.131 Sale offers that need disclosure: securities issued
before FSR commencement ..........................................157
10.2.132 Offers that do not need disclosure: offer to
sophisticated investor through licensed dealer ..............158
10.2.133 Prospectus content: general disclosure test....................158
10.2.134 Prospectus content—specific disclosures ......................158
10.2.135 Registers........................................................................159
Division 27A—Transitional matters under other legislation 160
10.2.135A References to authorised foreign exchange dealers .......160
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Division 28—Retail clients and wholesale clients 161
10.2.136 Securities before the FSR commencement ....................161
10.2.137 Incomplete financial services ........................................162
10.2.138 Professional investors....................................................163
Division 29—Effect on definitions in old Corporations Act of
transition to licensed markets and licensed CS
facilities 165
10.2.139 Approved foreign bank..................................................165
10.2.140 Eligible exchange-traded options ..................................165
10.2.141 Futures law....................................................................165
10.2.142 Member organisation.....................................................166
10.2.143 Non-broker ....................................................................166
10.2.144 Non-dealer.....................................................................167
10.2.145 Securities law ................................................................167
10.2.146 Marketable parcel ..........................................................167
Division 30—Effect on certain conduct of transition to licensed
markets and licensed CS facilities 169
10.2.147 Own account dealings and transactions: futures
contracts ........................................................................169
10.2.148 Conditions of dealers licence.........................................169
10.2.149 Persons who are not clients ...........................................169
10.2.150 Dealings and transactions on a dealer’s own
account ..........................................................................170
10.2.151 Dealer to give priority to clients’ orders........................170
10.2.152 Dealers’ financial records..............................................170
10.2.153 Auditor to report to ASIC on certain matters ................170
10.2.154 Qualified privilege for auditor.......................................171
10.2.155 Court may freeze certain bank accounts of dealers
and former dealers .........................................................171
10.2.156 Interpretation—registers................................................171
10.2.157 Conditions of futures broker’s licence:
membership of futures organisation ..............................172
10.2.158 Futures organisation to be informed about
conditions of futures brokers licence.............................173
10.2.159 Licensee to notify breach of licence condition ..............173
10.2.160 Register of Futures Licensees........................................174
10.2.161 Excluded clients ............................................................174
10.2.162 Segregation of client money and property.....................174
10.2.163 Accounts to be kept by futures brokers .........................175
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10.2.164 Property in custody of futures broker ............................175
10.2.165 Auditor to report to ASIC in certain cases.....................176
10.2.166 Defamation....................................................................176
10.2.167 Power of Court to restrain dealings with futures
broker’s bank accounts ..................................................177
10.2.168 Power of Court to restrain dealings with futures
broker’s bank accounts ..................................................177
10.2.169 Sequence of transmission and execution of orders ........177
10.2.170 Dealings by employees of futures brokers and
futures advisers..............................................................178
Division 31—Effect on fundraising of transition to licensed
markets and licensed CS facilities 179
10.2.171 Sale offers that need disclosure .....................................179
10.2.172 Prospectus content—specific disclosures ......................179
10.2.173 Issuing or transferring the securities under a
disclosure document ......................................................180
10.2.174 Choices open to person making an offer if
disclosure document condition not met or
disclosure document defective.......................................180
10.2.175 Restrictions on advertising and publicity.......................180
Division 32—Effect on product disclosure of transition to
licensed markets and licensed CS facilities 181
10.2.176 Offers that do not need disclosure .................................181
10.2.177 Prospectus content—general disclosure test..................181
10.2.178 Prospectus content—specific disclosures ......................181
10.2.179 Futures broker to give certain information to
prospective client...........................................................182
Division 33—Effect on Corporations Regulations 2001 of
transition of financial service providers and
transition to licensed markets and licensed CS
facilities 183
10.2.180 Licence conditions—investment advice to retail
investors ........................................................................183
10.2.181 Exemption from licensing—certain dealings ................183
10.2.182 Exemption from licensing—managed investment
schemes .........................................................................183
10.2.183 Exempt dealer................................................................184
10.2.184 Exempt securities and interests......................................184
10.2.185 Transactions in prescribed circumstances......................184
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10.2.186 Exempted transaction ....................................................184
10.2.187 Charging brokerage on principal transactions ...............185
10.2.188 Exemption from subsection 844(2) of old
Corporations Act ...........................................................185
10.2.189 Exemption: Part 8.3 of old Corporations Act—
certain futures contracts.................................................185
10.2.190 Exemption of certain transactions from
subsection 1206(1) of old Corporations Act..................186
10.2.191 Exemption of certain transactions from
subsection 1207(1) of the old Corporations Act ............186
10.2.192 Which futures broker to comply with
subsection 1207(1) of old Corporations Act in
relation to certain transactions.......................................187
10.2.193 Exemption of certain transactions from paragraphs
1207(1)(g) and (h) of old Corporations Act...................187
Division 34—Effect on certain instruments of transition of
financial service providers and transition to licensed
markets and licensed CS facilities 188
10.2.194 References to certain matters.........................................188
Division 35—Streamlined licensing 190
10.2.195 Suspension or cancellation of streamlined licence ........190
Division 36—Insurance multi-agents 191
10.2.196 Application by holder of qualified licence ....................191
Division 37—Hawking of managed investment products 192
10.2.197 Hawking interest in managed investment scheme .........192
10.2.198 Hawking financial product—other arrangements ..........192
Division 38—Security bonds issued before FSR commencement 194
10.2.199 Security bonds...............................................................194
Division 39—Disclosure documents 195
10.2.200 Disclosure documents—cooling-off period...................195
Division 40—Telephone monitoring during takeovers 196
10.2.201 Telephone monitoring ...................................................196
10.2.201A References to financial services licensees .....................196
Division 41—Requirements if Product Disclosure Statement is
not in existence 197
10.2.202 Documents equivalent to Product Disclosure
Statement.......................................................................197
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Division 42—Dealing with money received for financial product
before the product is issued 198
10.2.203 Payment of money into account ....................................198
Division 43—Arrangements related to deposits with stock
exchanges 199
10.2.204 Withdrawals from trust account ....................................199
Division 44—Superannuation to which arrangements apply
under the Family Law Act 1975 200
10.2.205 Application of amendments...........................................200
Division 45—Arrangements relating to certain reporting periods 202
10.2.206 Fund information for retail clients for financial
products that have an investment component:
superannuation ..............................................................202
10.2.207 Periodic statements for retail clients for financial
products that have an investment component ................202
Division 46—Arrangements relating to passbook accounts 203
10.2.208 Periodic statements........................................................203
10.2.209 Confirmation of transactions .........................................203
Division 47—Agreements with unlicensed persons relating to the
provision of financial services 204
10.2.210 Agreements ...................................................................204
Division 48—Arrangements for Lloyd’s 205
10.2.211 Lloyd’s ..........................................................................205
Division 49—Hawking of certain financial products 206
10.2.212 Hawking of managed investment products....................206
Division 50—Warrants or options to acquire issued securities 207
10.2.213 Warrants or options to acquire issued securities............207
Division 52—Winding up of fidelity funds if market ceases to
operate 208
10.2.215 Winding up of fidelity funds if market ceases to
operate...........................................................................208
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Part 10.5—Transitional provisions relating to the Corporate
Law Economic Reform Program (Audit Reform and
Corporate Disclosure) Act 2004 209 10.5.01 Adoption of auditing standards made by
accounting profession before commencement (Act
ss 1455(1) and (3)) ........................................................209
Part 10.15—Transitional provisions relating to the
Corporations Amendment (Financial Market
Supervision) Act 2010 213 10.15.01 Application of Part 10.15 ..............................................213
10.15.02 Amendments not to apply to certain operators of
licensed markets ............................................................213
10.15.03 Transfer of documents...................................................213
10.15.04 Notifications, consents, waivers, etc..............................214
10.15.05 Notification given by participant to operator of
licensed market..............................................................215
10.15.06 Registers........................................................................216
Part 10.18—Transitional provisions relating to Corporations
Amendment (Further Future of Financial Advice
Measures) Act 2012 217
Part 10.19—Transitional matters relating to MySuper
measures 218 10.19.01 Changes to product disclosure statements and
periodic statements ........................................................218
Part 10.20—Transitional matters relating to relevant providers
and persons who control body corporate licensees 220
Division 1—Introduction 220
10.20.01 Simplified outline of this Part........................................220
10.20.02 Object of this Part..........................................................221
10.20.03 Definitions.....................................................................221
Division 2—General application provision for Schedule 8D 222
10.20.04 General application provision for Schedule 8D.............222
Division 3—Pre-existing and new relevant providers and
controllers during the transitional period 223
10.20.05 Application of this Division ..........................................223
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10.20.06 Notices under section 922D—initial lodgement of
information....................................................................224
10.20.07 Notices under section 922D—later notice about
educational qualifications and professional
memberships .................................................................225
10.20.08 Notices under section 922H—important changes
before 30 April 2015 .....................................................226
10.20.09 Notices under section 922H—other changes before
30 September 2015........................................................226
10.20.10 Notices under section 922J—pre-existing body
corporate licensees ........................................................227
10.20.11 Notices under section 922J—controllers during
transition period.............................................................227
10.20.12 Notices under section 922K—ceasing to control a
pre-existing body corporate licensees............................228
10.20.13 Change in matter within 30 business days.....................228
10.20.14 Application of regulations 10.20.06 to 10.20.13 ...........228
Division 4—Other application provisions 229
10.20.15 Application—relevant provider numbers ......................229
10.20.16 Application—register of relevant providers ..................229
10.20.17 Application—prescribed registers .................................229
Chapter 12—Financial sector reform 230
Part 12.1—Preliminary 230 12.1.01 Definitions for Chapter 12.............................................230
12.1.02 Application of this Chapter to previous governing
Codes etc .......................................................................231
12.1.03 Interpretation of applied provisions...............................231
Part 12.2—Transitional matters—general 233
Division 2—Other matters 233
12.2.08 Lodgment of certain documents with ASIC ..................233
12.2.10 Certain appointments of auditors continue ....................233
12.2.12 Converted shares ...........................................................233
Part 12.4—Notice of meetings of certain bodies corporate 234 12.4.01 Application of Part ........................................................234
12.4.02 Modification of certain provisions of Act......................234
12.4.03 Members etc may elect to be notified of meetings ........235
12.4.04 Notice of meetings to be published in press ..................236
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12.4.05 Copies of notices to be displayed ..................................237
12.4.06 Members may request notice of meetings at any
time................................................................................237
12.4.07 Records to be kept about notices ...................................237
Part 12.5—Determinations and declarations in relation to
certain instruments 239 12.5.01 Definition for Part 12.5 .................................................239
12.5.02 Application, variation, revocation and
modification ..................................................................239
12.5.03 Effect of determinations and declarations .....................240
12.5.04 Publication of determinations and declarations .............240
12.5.05 When determinations and declarations take effect ........241
12.5.06 Inspection and purchase of copies of instruments .........241
Part 12.6—Financial reporting by certain bodies corporate 242 12.6.01 Application of Part ........................................................242
12.06.01A Annual financial reporting.............................................242
12.6.02 Modification of certain provisions of Act......................242
12.6.03 Members etc may elect to receive reports .....................243
12.6.04 Copies of reports to be available to members ................244
12.6.05 Records to be kept about notices ...................................244
Part 12.7—Other disclosure 245
Division 1—Preliminary 245
12.7.01 Definitions for Part 12.7................................................245
12.7.02 Declarations by ASIC....................................................245
Division 2—Continued application of certain provisions 247
12.7.03 Continuation of certain provisions of previous
governing Codes............................................................247
12.7.04 Continuation of ASIC transitional standards .................248
12.7.05 Exemption from, and modification of, certain
provisions ......................................................................248
12.7.06 Certain provisions of the Friendly Societies Code
cease to apply to FSR licensee ......................................249
Part 12.8—Shares in certain bodies corporate 250
Division 1—Preliminary 250
12.8.02 Application of Part 12.8 ................................................250
12.8.03 What is a member share ................................................250
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12.8.04 Declarations by ASIC....................................................251
Division 2—Member shares 252
12.8.05 Notice requirements ......................................................252
12.8.06 Registers of members ....................................................252
12.8.06A Member shares—liability to pay calls ...........................254
12.8.07 Disclosure in annual returns ..........................................254
12.8.08 Member shares—numbering and certificates ................255
12.8.09 Member shares—unclaimed property............................255
Division 3—Certain shares in transferring building societies and
credit unions 256
12.8.10 Definitions for Division 3..............................................256
12.8.11 Transferring building societies may issue shares
equivalent to membership shares...................................256
12.8.12 Transferring credit unions may issue shares
equivalent to withdrawable shares.................................257
Part 12.9—Winding up and deregistration of certain
transferring financial institutions 258 12.9.01 Application of Part 12.9 ................................................258
12.9.02 Winding up....................................................................258
12.9.03 Deregistration ................................................................258
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Registers and registration of documents Part 9.1
Regulation 9.1.01
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Chapter 9—Miscellaneous
Part 9.1—Registers and registration of documents
9.1.01 Prescribed registers
For subsections 1274A(2), (3) and (4) of the Act, the following
registers are prescribed:
(a) the register of companies registered under section 118 or
601BD of the Act or the registration of which is continued by
section 1378 of the Act;
(b) the register of Disqualified Company Directors and Other
Officers kept under section 1274AA of the Act;
(c) the Australian Register of Company Charges kept under
section 265 of the Act;
(d) the register of registered Australian bodies kept under
Division 1 of Part 5B.2 of the Act;
(e) the register of foreign companies registered under Division 2
of Part 5B.2 of the Act;
(f) the register of names reserved under section 152 of the Act;
(g) the Register of Licence Holders kept under section 789 of the
Act;
(h) the register of managed investment schemes registered under
section 601EB of the Act;
(i) the Register of Futures Licensees kept under section 1155 of
the Act;
(j) the Register of Auditors kept under section 1285 of the Act;
(k) the Register of Liquidators kept under section 1286 of the
Act;
(l) the Register of Official Liquidators kept under section 1286
of the Act;
(m) the register in respect of financial services licensees
mentioned in subsection 922A(2) of the Act;
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(n) the register in respect of authorised representatives of
financial services licensees mentioned in subsection 922A(2)
of the Act;
(o) the register in respect of persons against whom a banning
order or disqualification order is made mentioned in
subsection 922A(2) of the Act;
(p) the register relating to trustees for debenture holders kept
under section 283BCA of the Act;
(q) the register of relevant providers mentioned in
regulation 7.6.06B.
9.1.02 Prescribed information
For subsections 1274A(3) and (4) of the Act, the following
information is prescribed:
(a) in relation to each company registered under section 118 or
601BD of the Act or the registration of which is continued by
section 1378 of the Act:
(i) its full name, the date of its registration and its
registration number;
(ii) whether it is a public company or a proprietary
company;
(iii) whether it is a company limited by shares, a company
limited by guarantee, a company limited by both shares
and guarantee, an unlimited company or a no liability
company;
(iv) its contact address;
(iva) its principal place of business;
(v) its registered office;
(vi) its officers;
(vii) any scheme of arrangement it has entered into with its
creditors, its placement under voluntary administration
or a deed of company arrangement or receivership or its
liquidation;
(viii) its paid-up and unpaid capital;
(ix) its deregistration;
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Regulation 9.1.02
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(x) any charges on its property that have been lodged with
ASIC or entered in the Australian Register of Company
Charges;
(b) in relation to the Register of Disqualified Company Directors
and Other Officers—orders and notices registered under
section 1274AA of the Act;
(c) in relation to the Australian Register of Company Charges—
each charge registered under subsection 265(2) of the Act;
(d) in relation to each body registered in the register of registered
Australian bodies:
(i) its full name, the date of its incorporation and its
registration number;
(ii) the class of the body in its place of origin and whether
the liability of members of the body is limited;
(iii) its contact address;
(iiia) its principal place of business;
(iv) its registered office;
(v) its registered office or principal place of business in its
place of origin;
(vi) its officers;
(vii) any scheme of arrangement it has entered into with its
creditors, its placement under voluntary administration
or a deed of company arrangement or receivership or its
liquidation;
(viii) its paid-up and unpaid capital;
(ix) its deregistration;
(x) any charges on its property that have been lodged with
ASIC or entered in the Australian Register of Company
Charges;
(e) in relation to each company entered in the register of foreign
companies:
(i) its full name, the date and place of its incorporation or
registration in its place of origin and its registration
number;
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Regulation 9.1.02
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(ii) the class of the foreign company in its place of origin
and whether the liability of its members is limited;
(iii) its contact address;
(iiia) its principal place of business;
(iv) its registered office;
(v) its registered office or principal place of business in its
place of origin;
(vi) its officers;
(vii) its agent;
(viii) any scheme of arrangement it has entered into with its
creditors, its placement under voluntary administration
or a deed of company arrangement or receivership or its
liquidation;
(ix) its paid-up and unpaid capital;
(x) its deregistration;
(xi) any charges on its property that have been lodged with
ASIC or entered in the Australian Register of Company
Charges;
(f) in relation to the register of reserved or registered names—a
name entered in that register, the number allocated to that
name and the date on which the entry was made;
(g) in relation to the Register of Licence Holders—each licence
holder registered under section 783 or 784 of the Act;
(h) in relation to each registered scheme:
(i) the ARSN of the scheme;
(ii) the name of the scheme;
(iii) the date of registration of the scheme;
(iiia) its contact address;
(iiib) its principal place of business;
(iv) the name and address of the registered office of the
responsible entity of the scheme;
(v) the name and address of the auditor of the scheme’s
compliance plan;
(vi) the date of any amendment of the constitution or
compliance plan of the scheme;
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(vii) any deregistration or winding up of the scheme;
(viii) the name and address of the auditor of the scheme;
(i) in relation to the Register of Futures Licensees—the name of
each registered futures licensee;
(j) in relation to the Register of Auditors—the name of each
registered auditor;
(k) in relation to the Register of Liquidators—the name of each
registered liquidator;
(l) in relation to the Register of Official Liquidators—the name
of each registered official liquidator;
(m) in relation to the register in respect of financial services
licensees mentioned in subsection 922A(2) of the Act:
(i) all of the information in the register which ASIC
considers appropriate for a person to search in
accordance with subsection 1274A(3) of the Act; or
(ii) all of the information in the register which ASIC
considers appropriate to make available in accordance
with subsection 1274A(4) of the Act;
(n) in relation to the register in respect of authorised
representatives of financial services licensees mentioned in
subsection 922A(2) of the Act:
(i) all of the information in the register which ASIC
considers appropriate for a person to search in
accordance with subsection 1274A(3) of the Act; or
(ii) all of the information in the register which ASIC
considers appropriate to make available in accordance
with subsection 1274A(4) of the Act;
(o) in relation to the register in respect of persons against whom
a banning order or disqualification order is made mentioned
in subsection 922A(2) of the Act:
(i) all of the information in the register which ASIC
considers appropriate for a person to search in
accordance with subsection 1274A(3) of the Act; or
(ii) all of the information in the register which ASIC
considers appropriate to make available in accordance
with subsection 1274A(4) of the Act;
Federal Register of Legislative Instruments F2015C00303
Chapter 9 Miscellaneous
Part 9.1 Registers and registration of documents
Regulation 9.1.02
6 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(p) in relation to the register relating to trustees for debenture
holders kept under section 283BCA of the Act:
(i) all of the information in the register which ASIC
considers appropriate for a person to search in
accordance with subsection 1274A(3) of the Act; or
(ii) all of the information in the register which ASIC
considers appropriate to make available in accordance
with subsection 1274A(4) of the Act;
(q) in relation to the register of relevant providers (within the
meaning of section 922C of the Act as notionally inserted by
Schedule 8D to these Regulations):
(i) all of the information in the register (other than a
relevant provider’s date and place of birth) which ASIC
considers appropriate for a person to search in
accordance with subsection 1274A(3) of the Act; or
(ii) all of the information in the register (other than a
relevant provider’s date and place of birth) which ASIC
considers appropriate to make available in accordance
with subsection 1274A(4) of the Act.
Federal Register of Legislative Instruments F2015C00303
Miscellaneous Chapter 9
Registration of auditors and liquidators Part 9.2
Registration Division 2
Regulation 9.2.01
Corporations Regulations 2001 7
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Part 9.2—Registration of auditors and liquidators
Division 2—Registration
9.2.01 Practical experience in auditing (Act s 1280(2))
For subparagraph 1280(2)(b)(ii) of the Act, each of the following is
prescribed practical experience in auditing:
(a) during the 5 years immediately before the date of the
application, at least 3 000 hours work in auditing under the
direction of a registered company auditor, including:
(i) appraising the operations of companies and forming
opinions on the matters specified in sections 307, 308
and 309 of the Act; and
(ii) at least 750 hours spent supervising audits of
companies;
(b) practical experience that, in the opinion of ASIC, is
equivalent to the practical experience mentioned in
paragraph (a);
(c) work of the kind and duration mentioned in paragraph (a)
that was done under previous laws corresponding to
sections 307, 308 and 309 of the Act.
9.2.02 Prescribed universities and institutions (Act ss 1280(2A) and
1282(2))
For paragraph 1280(2A)(a) and subparagraph 1282(2)(a)(ii) of the
Act:
(a) the universities mentioned in Part 1 of the table are
prescribed; and
(b) the institution mentioned in Part 2 of the table is prescribed.
Part 1 University
101 Australian Catholic University
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Chapter 9 Miscellaneous
Part 9.2 Registration of auditors and liquidators
Division 2 Registration
Regulation 9.2.02
8 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 1 University
102 Australian National University
103 Bond University
104 Central Queensland University
105 Charles Darwin University
106 Charles Sturt University
107 Curtin University of Technology
108 Deakin University
109 Edith Cowan University
110 Griffith University
111 Flinders University of South Australia
112 James Cook University
113 La Trobe University
114 Macquarie University
115 Monash University
116 Murdoch University
117 Queensland University of Technology
118 Royal Melbourne Institute of Technology University
119 Southern Cross University
120 Swinburne University of Technology
121 University of Adelaide
122 University of Ballarat
123 University of Canberra
124 University of Melbourne
125 University of Newcastle
126 University of New England
127 University of New South Wales
128 University of Notre Dame Australia
129 University of Queensland
130 University of South Australia
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Miscellaneous Chapter 9
Registration of auditors and liquidators Part 9.2
Registration Division 2
Regulation 9.2.03
Corporations Regulations 2001 9
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Part 1 University
131 University of Southern Queensland
132 University of Sydney
133 University of Tasmania
134 University of Technology, Sydney
135 University of the Sunshine Coast
136 University of Western Australia
137 University of Western Sydney
138 University of Wollongong
139 Victoria University
Part 2 Institution
201 Avondale College
9.2.03 Prescribed courses (Act s 1280(2A))
For paragraph 1280(2A)(c) of the Act, the courses prescribed are:
(a) the following courses conducted by The Institute of
Chartered Accountants in Australia:
(i) Audit and Assurance in the CA Program;
(ii) Financial Reporting and Assurance in the CA Program;
(iii) Accounting 2 in the Professional Year Program;
(iv) Audit and EDP Module in the Professional Year
Program;
(v) an audit module in the Professional Year Program
conducted before 1986 that is equivalent to a course
mentioned in subparagraph (i), (ii), (iii) or (iv); and
(b) the following courses in the CPA Program conducted by
CPA Australia:
(i) Assurance Services and Auditing;
(ii) Advanced Audit and Assurance; and
(c) the following courses conducted by, or on behalf of, the
National Institute of Accountants:
Federal Register of Legislative Instruments F2015C00303
Chapter 9 Miscellaneous
Part 9.2 Registration of auditors and liquidators
Division 2 Registration
Regulation 9.2.03
10 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) Issues in Auditing and Professional Practice in the
Graduate Certificate in Professional Accounting, offered
by the University of New England in conjunction with
the National Institute of Accountants;
(ii) Issues in Auditing and Professional Practice in the
Degree of Master of Commerce (Professional
Accounting), offered by the University of New England
in conjunction with the National Institute of
Accountants.
Federal Register of Legislative Instruments F2015C00303
Miscellaneous Chapter 9
Registration of auditors and liquidators Part 9.2
Conditions on registration Division 2A
Regulation 9.2.08
Corporations Regulations 2001 11
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Division 2A—Conditions on registration
9.2.08 Kinds of conditions (Act s 1289A)
For subsection 1289A(1) of the Act, the following kinds of
conditions are specified:
(a) conditions relating to the minimum amount and nature of
continuing or other professional education that must be
undertaken by a registered company auditor;
(b) conditions relating to the periodic or other review of the audit
and audit-related work of a registered company auditor as
part of a quality assurance or review program;
(c) conditions relating to having a current policy of professional
indemnity insurance for claims against a registered company
auditor in relation to audits conducted under the Act;
(d) conditions relating to establishing and maintaining a system
for resolving complaints made against a registered company
auditor by audit clients in relation to audits conducted under
the Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 9 Miscellaneous
Part 9.2A Authorised audit companies
Division 1 Registration
Regulation 9.2A.01
12 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 9.2A—Authorised audit companies
Division 1—Registration
9.2A.01 Application for registration as authorised audit company
(Act s 1299A)
For subsection 1299A(2) of the Act, the information is:
(a) the following information about the applicant:
(i) the applicant’s name;
(ii) the applicant’s ABN or ACN;
(iii) the address of the applicant’s registered office;
(iv) the address of the principal place at which the applicant
proposes to practise as an auditor;
(v) the address of each other place (if any) at which the
applicant proposes to practise as an auditor; and
(b) the following information about each director of the
applicant:
(i) the director’s name and address;
(ii) the director’s registration number as a registered
company auditor; and
(c) the following statements:
(i) a statement to the effect that none of the directors of the
applicant have been disqualified from managing a
company under Part 2D.6 of the Act;
(ii) a statement to the effect that each share in the applicant
is held and beneficially owned by an individual or by
the legal personal representative of an individual;
(iii) a statement of whether the applicant’s constitution
allows a share in the applicant to be held and
beneficially owned by a person other than an individual
or the legal personal representative of an individual;
(iv) a statement to the effect that a majority of the votes that
may be cast at a general meeting of the applicant attach
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Miscellaneous Chapter 9
Authorised audit companies Part 9.2A
Registration Division 1
Regulation 9.2A.03
Corporations Regulations 2001 13
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
to shares in the applicant that are held and beneficially
owned by individuals who are registered company
auditors;
(v) a statement to the effect that the applicant is not an
externally-administered body corporate; and
(d) the name and address of each person who performs a chief
executive officer function (within the meaning of
section 295A of the Act) in relation to the applicant; and
(e) the following details about the applicant’s professional
indemnity insurance policy for claims that may be made
against the applicant in relation to the audit of companies and
registered schemes under the Act:
(i) the insurer’s name;
(ii) the policy number;
(iii) the terms and conditions of the policy.
9.2A.03 Annual statements by authorised audit company (Act s
1299G)
(1) For subsection 1299G(1A) of the Act, the information is:
(a) whether the information about the company on the Register
of Authorised Audit Companies under section 1299E of the
Act is correct; and
(b) a statement of whether the company has, at all times in the
relevant period, met the requirements of paragraphs
1299B(a), (b), (c) and (e) of the Act; and
(c) if the company has not, at all times in the relevant period,
met the requirements of paragraphs 1299B(a), (b), (c) and (e)
of the Act—details about the way in which the company did
not meet the requirements; and
(d) the following details about the company’s professional
indemnity insurance policy for claims that may be made
against the applicant in relation to the audit of companies and
registered schemes under the Act:
(i) the insurer’s name;
(ii) the policy number;
Federal Register of Legislative Instruments F2015C00303
Chapter 9 Miscellaneous
Part 9.2A Authorised audit companies
Division 1 Registration
Regulation 9.2A.03
14 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(iii) the terms and conditions of the policy; and
(e) information about criminal proceedings (if any) that have
been taken against the company in the relevant period; and
(f) for each director of the company and each employee of the
company who is a registered company auditor, details of
criminal or disciplinary proceedings (if any) that have been
taken against the director or employee in the relevant period
(including exclusion from practice as an auditor or liquidator
or suspension of registration as an auditor or liquidator); and
(g) a statement of whether the company has resigned or been
removed from office as an auditor during the relevant period;
and
(h) if the company has resigned or been removed from office as
an auditor during the relevant period, the following details
about each resignation or removal:
(i) the name and ACN of the corporation, registered
scheme, disclosing entity or financial services licensee
being audited;
(ii) the date of the company’s resignation or removal from
office;
(iii) the reason for the company’s resignation or removal
from office; and
(i) a statement of whether a director or employee of the
company has resigned or been removed from office as a
liquidator during the relevant period; and
(j) if a director or employee of the company has resigned, or has
been removed from office as a liquidator, during the relevant
period, the following details about each resignation or
removal:
(i) the name and ACN of the corporation, registered
scheme, disclosing entity or financial services licensee
being liquidated;
(ii) the date of the resignation or removal from office;
(iii) the reason for the resignation or removal from office;
and
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Miscellaneous Chapter 9
Authorised audit companies Part 9.2A
Registration Division 1
Regulation 9.2A.03
Corporations Regulations 2001 15
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(k) a list of the 10 audits, including the approximate dollar value
of the fees, for which the company has received the highest
audit engagement fees in the relevant period.
(2) In this regulation:
relevant period means the period of 12 months to which the
statement relates under subsection 1299G(1) of the Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 9 Miscellaneous
Part 9.4 Penalty notice offences and penalties
Regulation 9.4.01
16 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 9.4—Penalty notice offences and penalties
9.4.01 Prescribed offences (Act s 1313)
For paragraph (b) of the definition of prescribed offence in
subsection 1313(8) of the Act, an offence against a provision
mentioned in Schedule 3 to the Act, to which a penalty of 5 penalty
units applies, is prescribed.
9.4.02 Prescribed penalties (Act s 1313)
For an offence prescribed by regulation 9.4.01 for which a person
may be, or has been, given a notice under subsection 1313(1) of the
Act, the amount of the penalty is:
(a) if the person is an individual—1.25 penalty units; and
(b) if the person is a body corporate—6.25 penalty units.
9.4.03 Late payment of review fee—prescribed offence and penalty
(Act s 1313 and 1364)
(1) For paragraph (b) of the definition of prescribed offence in
subsection 1313(8) of the Act, the failure to pay a review fee by the
due date specified for the fee in subsection 1351(3) of the Act is
prescribed.
Note: The failure to pay is made an offence by section 1311 of the Act.
(2) For paragraph 1364(2)(n) of the Act, the penalty for the failure to
pay a review fee is:
(a) if payment is received within 1 month after the due date—
$65; and
(b) if payment is not received within 1 month after the due
date—$270.
Note: Subsection 1351(3) of the Act provides for when a fee imposed by the
Corporations (Review Fees) Act 2003 is due.
Federal Register of Legislative Instruments F2015C00303
Miscellaneous Chapter 9
Penalty notice offences and penalties Part 9.4
Regulation 9.4.03
Corporations Regulations 2001 17
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) In this regulation:
review fee means a fee imposed by section 5 of the Corporations
(Review Fees) Act 2003.
Federal Register of Legislative Instruments F2015C00303
Chapter 9 Miscellaneous
Part 9.4A Register and index
Regulation 9.4A.01
18 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 9.4A—Register and index
9.4A.01 Definitions for Part 9.4A
In this Part, unless the contrary intention appears:
index means an instrument, prepared for subsection 1306(4) of the
Act, that is an index of members of a corporation.
issuer has the same meaning as in section 761E of the Act.
register means an instrument, prepared for subsection 1306(4) of
the Act, that is any of the following:
(a) register of members of a corporation;
(b) register of holders of debentures of a corporation;
(c) register of members of a registered scheme;
(d) register of holders of options of a corporation.
9.4A.02 Register and index must be kept up to date:
subsection 1306(4A) of the Act
(1) A corporation that is an issuer that is required to keep 1 or more
registers must ensure that its registers and index (if any) are, at any
time, not more than 20 business days out of date.
(2) If a person notifies a corporation that is an issuer that is required to
keep 1 or more registers that the person wishes to inspect a register
or index of the corporation, the corporation must ensure that, at the
beginning of the business day following the day on which it
receives the notice, the register or index that the person wishes to
inspect is not more than 5 business days out of date.
Federal Register of Legislative Instruments F2015C00303
Miscellaneous Chapter 9
Delegation of powers and functions under the Act Part 9.5
Regulation 9.5.01
Corporations Regulations 2001 19
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 9.5—Delegation of powers and functions
under the Act
9.5.01 Prescribed functions (Law s 1345A(1))
For subsection 1345A(1) of the Act, the functions and powers of
the Minister under the following provisions of the Act are
prescribed:
(a) subsection 147(2) or 601DC(2) (Names available with
Minister’s consent);
(c) Part 9.7 (Unclaimed property).
Federal Register of Legislative Instruments F2015C00303
Chapter 9 Miscellaneous
Part 9.7 Unclaimed property
Regulation 9.7.01
20 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 9.7—Unclaimed property
9.7.01 Entitlement to unclaimed property
(1) This regulation sets out how to work out the interest for
paragraph 1341(3A)(a) of the Act.
(2) If the unclaimed money is paid to ASIC in more than one payment,
the interest is to be worked out separately for each payment.
(3) The interest is to be worked out for the period (the interest period)
that:
(a) starts on the later of:
(i) 1 July 2013; and
(ii) the day when the unclaimed money was paid to ASIC;
and
(b) ends on the 14th day after ASIC last authorised the
unclaimed money to be paid under subsection 1341(1) or (2)
of the Act.
(4) The interest is to be worked out by adding together the interest for
each financial year during the interest period.
(5) The interest for each financial year is worked out using the
following formula, and rounding the result to the nearest cent:
Amount × Days interest payable × Interest rate
Days in the financial year
where:
amount means the amount of unclaimed money plus the interest (if
any) worked out for each earlier financial year for which interest is
payable.
days interest payable means the number of days in the financial
year for which interest is payable.
Federal Register of Legislative Instruments F2015C00303
Miscellaneous Chapter 9
Unclaimed property Part 9.7
Regulation 9.7.01
Corporations Regulations 2001 21
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days in the financial year means the number of days in the
financial year.
interest rate, for a financial year, means:
(a) the percentage change in the All Groups CPI between the
2 March quarters most recently published before the first day
of the financial year (rounded up to 4 decimal places); or
(b) if that percentage change is less than 0%—0%.
Federal Register of Legislative Instruments F2015C00303
Chapter 9 Miscellaneous
Part 9.12 Matters relating to regulations
Regulation 9.12.01
22 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 9.12—Matters relating to regulations
9.12.01 Exemptions from Chapter 7
Subsection 1043A(1) of the Act does not have effect in relation to
the following:
(a) the obtaining by a director of a share qualification;
(b) the application for, and acquisition under that application of,
financial products of a body corporate by, or by a trustee for,
employees of that body, or of a body corporate that is related
to the first-mentioned body under a superannuation scheme,
pension fund or other scheme established solely or primarily
for the benefit of the employees;
(c) a transaction entered into by a person in accordance with his
or her obligations under an underwriting agreement;
(d) a person holding the office of:
(i) personal representative of a deceased person; or
(ii) liquidator; or
(iii) trustee under Parts IV, X and XI of the Bankruptcy Act
1966;
in respect of a transaction entered into by the person in good
faith in the performance of the functions of the office;
(e) a sale of financial products under:
(i) a mortgage or charge of the financial products; or
(ii) a mortgage, charge, pledge or lien of documents of title
to the financial products.
9.12.02 Exemption from provisions of Chapter 7—CLS Bank
(1) For section 1368 of the Act, the following provisions of Chapter 7
of the Act do not have effect in relation to the following
transactions by participants in the facility operated CLS Bank
International:
(a) section 794E—settlement of non-cash payments between
participants;
Federal Register of Legislative Instruments F2015C00303
Miscellaneous Chapter 9
Matters relating to regulations Part 9.12
Regulation 9.12.02
Corporations Regulations 2001 23
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(b) Part 7.3—settlement of non-cash payments between
participants in relation to the provision or transfer of a
financial product mentioned in paragraph 764A(1)(a), (b),
(ba), (c), (j) or (k) of the Act.
(2) Subregulation (1) is subject to the conditions set out in this
regulation.
(3) CLS Bank International must:
(a) operate under section 25A of the Federal Reserve Act of the
United States of America; and
(b) be regulated as a bank by the Board of Governors of the
Federal Reserve System of the United States of America.
(4) An Australian entity that is a participant in the facility operated by
CLS Bank International:
(a) must be regulated by APRA; and
(b) must not use the services of CLS Bank International as a
retail client within the meaning of section 761G of the Act.
(5) CLS Bank International must tell the Reserve Bank of Australia in
writing as soon as practicable after any of the following
circumstances happen:
(a) CLS Bank International receives a request for an Australian
entity to become a participant in the facility it operates;
(b) CLS Bank International proposes approving an additional
Australian entity or Australian resident as a shareholder;
(c) CLS Bank International notifies the Board of Governors of
the Federal Reserve System of the United States of America
of a proposed change in the character or nature of the facility
or a significant change in its operations;
(d) material regulatory action is taken against CLS Bank
International in any other jurisdiction.
(6) In this regulation:
Australian entity includes:
(a) an Australian bank; or
Federal Register of Legislative Instruments F2015C00303
Chapter 9 Miscellaneous
Part 9.12 Matters relating to regulations
Regulation 9.12.03
24 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) a financial services licensee within the meaning of
section 761A of the Corporations Act 2001.
material regulatory action, for the facility operated by CLS Bank
International, means:
(a) any action by the Board of Governors of the Federal Reserve
System of the United States of America that requires CLS
Bank International to cease, suspend or vary its operations or
to take any other action in the nature of a sanction or
corrective action in relation to either the operation of the
facility or CLS Bank International; or
(b) regulatory action that is likely to affect Australian
participants in the facility or any Australian operations of
CLS Bank International.
participant, for the facility operated by CLS Bank International,
means a person who, under the facility’s operating rules, is allowed
to participate directly in the facility, with or without the authority
of another participant.
9.12.03 Partial exemption of foreign-based market licensees from
certain notification obligations
(1) This regulation sets out the extent to which, for section 1368 of the
Act, specified provisions of the Act have effect in relation to a
market licensee whose licence was granted under
subsection 795B(2) of the Act.
(2) Paragraph 792B(2)(b) of the Act has effect only to the extent that:
(a) the participant in the market against whom disciplinary
action is taken is in this jurisdiction; or
(b) the activity giving rise to the disciplinary action may
significantly affect:
(i) another participant in the market who is in this
jurisdiction; or
(ii) a client, of a participant in the market, whom the market
licensee believes to be in this jurisdiction.
Federal Register of Legislative Instruments F2015C00303
Miscellaneous Chapter 9
Matters relating to regulations Part 9.12
Regulation 9.12.03
Corporations Regulations 2001 25
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) Paragraph 792B(2)(c) of the Act has effect only to the extent that:
(a) the person suspected of the contravention or impending
contravention of the market’s operating rules or the Act is a
participant in the market who is in this jurisdiction; or
(b) the contravention or impending contravention may
significantly affect:
(i) a participant in the market who is in this jurisdiction; or
(ii) a client, of a participant in the market, whom the market
licensee believes to be in this jurisdiction.
(4) In spite of subregulation (3), paragraph 792B(2)(c) of the Act has
effect only to the extent of requiring inclusion in the notice to
ASIC of information that, under the regulatory regime applying to
financial markets in the foreign country in which the market
licensee’s principal place of business is located, it is permissible
for the market licensee to include in the notice.
(5) Subregulation (4) is subject to the conditions that:
(a) the market licensee gives notice of the contravention or
impending contravention to a body responsible for the
regulation of financial markets in the foreign country in
which the market licensee’s principal place of business is
located as soon as practicable after suspecting the
commission of the contravention, or the likelihood of the
impending contravention; and
(b) the notice to that body includes the information mentioned in
subparagraphs 792B(2)(c)(i), (ii) and (iii) of the Act; and
(c) the market licensee informs ASIC of the following:
(i) the giving of the notice mentioned in paragraph (a);
(ii) the name and address of the regulatory body to whom it
was given;
(iii) when the notice was given; and
(d) arrangements exist for that body to give notice to ASIC about
the contravention or impending contravention that includes
the information that it is not permissible for the market
licensee to include in the notice it gives to ASIC under
subregulation (4).
Federal Register of Legislative Instruments F2015C00303
Chapter 9 Miscellaneous
Part 9.12 Matters relating to regulations
Regulation 9.12.04
26 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
9.12.04 Exemption from provisions of Chapter 7—compliance with
ASIC exemptions
(1) For paragraph 1368(a) of the Act, Division 2 of Part 7.7A of the
Act does not have effect in relation to a person to whom one of the
following exemptions made by ASIC is stated to apply:
(a) ASIC Class Order [CO 05/736];
(b) ASIC Class Order [CO 05/1122];
(c) ASIC Class Order [CO 08/01];
(d) ASIC Class Order [CO 11/1227].
(2) The Division does not have effect subject to the condition that the
person complies with the conditions set out in the exemption which
applies to the person.
9.12.04 Exemption from provisions of Chapter 7—carbon unit
auctions
(1) For paragraph 1368(a) of the Act, section 791A of the Act does not
have effect in relation to a person if:
(a) the person is engaged, by the Clean Energy Regulator, to
assist in the conduct of the auction of carbon units under the
Clean Energy Act 2011; and
(b) in conducting or assisting in the conduct of the auction, the
person engages in conduct that constitutes operating a
financial market.
(2) For paragraph 1368(a) of the Act, section 820A of the Act does not
have effect in relation to a person if:
(a) the person is engaged, by the Clean Energy Regulator, to
assist in the conduct of the auction of carbon units; and
(b) in conducting or assisting in the conduct of the auction, the
person engages in conduct that constitutes operating a
clearing and settlement facility.
Federal Register of Legislative Instruments F2015C00303
Miscellaneous Chapter 9
Matters relating to regulations Part 9.12
Regulation 9.12.05
Corporations Regulations 2001 27
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
9.12.05 Exemption from provisions of Chapter 7—gas trading
exchange
(1) For paragraph 1368(a) of the Act, section 791A of the Act does not
have effect in relation to the operator of a qualifying gas trading
exchange carrying out its role of operating a market in qualifying
gas exchange products on the qualifying gas trading exchange.
(2) For paragraph 1368(a) of the Act, section 820A of the Act does not
have effect in relation to the operator of a qualifying gas trading
exchange carrying out its role in relation to clearing and settlement
arrangements for qualifying gas exchange products on the
qualifying gas trading exchange.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.1 Old Corporations Regulations
Regulation 10.1.01
28 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 10—Repeals
Part 10.1—Old Corporations Regulations
10.1.01 Repeal of Corporations Regulations 1990
The following Statutory Rules are repealed:
1990 No. 455
1991 Nos. 218, 219, 281, 341, 453, 478 and 479
1992 Nos. 230, 281, 364, 395 and 450
1993 Nos. 135, 207 and 277
1994 Nos. 35, 108, 153, 221, 251, 302 and 430
1995 Nos. 222, 344, 345 and 398
1996 Nos. 26, 51, 55, 90, 205, 218 and 343
1997 Nos. 10, 81, 102 and 142
1998 Nos. 9, 22, 109, 128, 161, 185, 186, 239 and 293
1999 Nos. 38, 47, 143, 212, 237 and 293
2000 Nos. 11, 30, 31, 50, 78, 175, 206 and 282
Note: These Regulations were made under the old Corporations Law, but are
continued in effect by section 1380 of the Corporations Act 2001 as if
made under the Act.
10.1.02 Repeal of Partnerships and Associations Application
Order 1999 (No. 1)
The Partnerships and Associations Application Order 1999 (No. 1)
is repealed.
Note: The Partnerships and Associations Application Order 1999 (No. 1)
was made under the old Corporations Law, but is continued in effect
by section 1388 of the Act.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Preliminary Division 1
Regulation 10.2.01
Corporations Regulations 2001 29
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 10.2—Transitional arrangements relating to
Financial Services Reform legislation
Division 1—Preliminary
10.2.01 Application of Part 10.2
For Part 10.2 of the Act, this Part deals with matters of a
transitional, saving or application nature relating to amendments
made by the Financial Services Reform Act 2001 and the transition
from the application of the old legislation to the application of the
new legislation.
Note: Part 10.2 contains a number of regulation-making powers that relate to
matters of a transitional, saving and application nature.
10.2.02 Definitions
In this Part:
old Corporations Regulations means these Regulations as in force
immediately before the FSR commencement.
Note: Section 9 and Part 10.2 of the Act include a number of definitions of
words and expressions that are relevant to the operation of this Part.
They have the same meanings when used in this Part.
Part 10.2 also includes several expressions that have particular
meanings in the context of particular provisions or circumstances,
including relevant old legislation, relevant new legislation and
transition period.
10.2.02A References to transition periods
In these Regulations, unless the contrary intention appears, a
reference to a transition period includes a transition period that has
been extended under section 1437 of the Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 1 Preliminary
Regulation 10.2.02B
30 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.02B References to the application of Division 2 of Part 7.9 of the
Act
In these Regulations, unless the contrary intention appears:
(a) a reference to Division 2 of Part 7.9 of the Act not applying
to or in relation to a financial product is taken to refer only to
circumstances in which that Division does not apply because
of the effect of a provision of Part 10.2 of the Act; and
(b) a reference to a financial product to which, or in relation to
which, Division 2 of Part 7.9 of the Act applies is taken to
include any financial product except a financial product to
which that Division does not apply because of the effect of a
provision of Part 10.2 of the Act.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Treatment of proposed markets that have not started to operate by the FSR
commencement Division 1A
Regulation 10.2.02C
Corporations Regulations 2001 31
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 1A—Treatment of proposed markets that have not
started to operate by the FSR commencement
10.2.02C Proposed markets
For paragraph 1412(1)(b) of the Act, the following markets are
identified:
(a) a market in futures contracts proposed to be operated by
Atriax Limited;
(b) a market in futures contracts proposed to be operated by
Hong Kong Futures Exchange Limited;
(c) a market in securities proposed to be operated by Bloomberg
L.P;
(d) a market in futures contracts proposed to be operated by The
London Metal Exchange;
(e) a market in futures contracts proposed to be operated by
Credit Suisse First Boston (Europe) Limited;
(f) a market in securities proposed to be operated by Eurex
Deutschland;
(g) a market in futures contracts proposed to be operated by
Eurex Deutschland.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 2 Transitional arrangements relating to business rules or listing rules
Regulation 10.2.03
32 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2—Transitional arrangements relating to business
rules or listing rules
Subdivision 2.1—Business rules
10.2.03 Amendment of business rules of securities exchange before
FSR commencement
(1) This regulation applies if:
(a) an amendment was made, by way of rescission, alteration or
addition, to the business rules of a securities exchange before
the FSR commencement; and
(b) written notice of the amendment was lodged in accordance
with subsection 774(1) of the old Corporations Act before the
FSR commencement; and
(c) the period of 28 days in relation to the amendment,
mentioned in subsection 774(5) of the old Corporations Act,
had not expired before the FSR commencement; and
(d) the Minister had not decided, before the FSR
commencement, whether to disallow the whole or a specified
part of the amendment under subsection 774(5) of the old
Corporations Act.
Note: The period of 28 days in paragraph (c) is the period in which the
Minister may disallow the whole or a specified part of the amendment.
(2) On and after the FSR commencement, section 793E of the Act has
effect in relation to the amendment as if the amendment were a
change to the operating rules of a licensed market mentioned in
section 793D of the Act.
(3) For subregulation (2):
(a) the securities exchange is to be treated, under sections 793D
and 793E of the Act, as a market licensee that has lodged
written notice of the change with ASIC; and
(b) ASIC is taken to have complied with its obligations to the
Minister under section 793E of the Act; and
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Transitional arrangements relating to business rules or listing rules Division 2
Regulation 10.2.04
Corporations Regulations 2001 33
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) the Minister is taken to have been given the notice of the
change on the day on which written notice of the amendment
was lodged in accordance with subsection 774(1) of the old
Corporations Act.
10.2.04 Amendment of SCH business rules before FSR
commencement
(1) This regulation applies if:
(a) an amendment was made, by way of rescission, alteration or
addition, to the SCH business rules before the FSR
commencement; and
(b) written notice of the amendment was given in accordance
with subsection 779C(1) of the old Corporations Act before
the FSR commencement; and
(c) the period of 28 days in relation to the amendment,
mentioned in subsection 779C(5) of the old Corporations
Act, had not expired before the FSR commencement; and
(d) the Minister had not decided, before the FSR
commencement, whether to disallow the whole or a specified
part of the amendment under subsection 779C(5) of the old
Corporations Act.
Note: The period of 28 days in paragraph (c) is the period in which the
Minister may disallow the whole or a specified part of the amendment.
(2) On and after the FSR commencement, section 822E of the Act has
effect in relation to the amendment as if the amendment were a
change to the operating rules of a licensed CS facility mentioned in
section 822D of the Act.
(3) For subregulation (2):
(a) the securities clearing house is to be treated, under
sections 822D and 822E of the Act, as a licensed CS facility
that has lodged written notice of the change with ASIC; and
(b) ASIC is taken to have complied with its obligations to the
Minister under section 822E of the Act; and
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 2 Transitional arrangements relating to business rules or listing rules
Regulation 10.2.05
34 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) the Minister is taken to have been given the notice of the
change on the day on which written notice of the amendment
was given in accordance with subsection 779C(1) of the old
Corporations Act.
10.2.05 Amendment of SEGC business rules before FSR
commencement
(1) This regulation applies if:
(a) a change is made to the SEGC’s operating rules before the
FSR commencement; and
(b) written notice of the amendment was given in accordance
with subsection 928(1) of the old Corporations Act before the
FSR commencement; and
(c) the period of 28 days in relation to the amendment,
mentioned in subsection 928(5) of the old Corporations Act,
had not expired before the FSR commencement; and
(d) the Minister had not decided, before the FSR
commencement, whether to disallow the whole or a specified
part of the amendment under subsection 928(5) of the old
Corporations Act.
Note: The period of 28 days in paragraph (c) is the period in which the
Minister may disallow the whole or a specified part of the amendment.
(2) On and after the FSR commencement, section 890H of the Act has
effect in relation to the amendment as if the amendment were a
change to the SEGC’s operating rules mentioned in section 890G
of the Act.
(3) For subregulation (2):
(a) the SEGC is to be treated, under sections 890G and 890H of
the Act, as having lodged written notice of the change with
ASIC; and
(b) ASIC is taken to have complied with its obligations to the
Minister under section 890H of the Act; and
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Transitional arrangements relating to business rules or listing rules Division 2
Regulation 10.2.06
Corporations Regulations 2001 35
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) the Minister is taken to have been given the notice of the
change on the day on which written notice of the amendment
was given in accordance with subsection 928(1) of the old
Corporations Act.
10.2.06 Amendment of business rules of futures body before FSR
commencement
(1) This regulation applies if:
(a) an amendment was made, by way of rescission, alteration or
addition, to the business rules of any of a futures body before
the FSR commencement; and
(b) written notice of the amendment was given in accordance
with subsection 1136(1) of the old Corporations Act before
the FSR commencement; and
(c) the period of 28 days in relation to the amendment,
mentioned in subsection 1136(5) of the old Corporations Act,
had not expired before the FSR commencement; and
(d) the Minister had not decided, before the FSR
commencement, whether to disallow the whole or a specified
part of the amendment under subsection 1136(5) of the old
Corporations Act.
Note: The period of 28 days in paragraph (c) is the period in which the
Minister may disallow the whole or a specified part of the amendment.
(2) On and after the FSR commencement, section 793E of the Act has
effect in relation to the amendment as if the amendment were a
change to the operating rules of a licensed market mentioned in
section 793D of the Act.
(3) For subregulation (2):
(a) the futures body is to be treated, under sections 793D and
793E of the Act, as a market licensee that has lodged written
notice of the change with ASIC; and
(b) ASIC is taken to have complied with its obligations to the
Minister under section 793E of the Act; and
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 2 Transitional arrangements relating to business rules or listing rules
Regulation 10.2.07
36 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) the Minister is taken to have been given the notice of the
change on the day on which written notice of the amendment
was given in accordance with subsection 1136(1) of the old
Corporations Act.
Subdivision 2.2—Listing rules
10.2.07 Amendment of listing rules of securities exchange before
FSR commencement
(1) This regulation applies if:
(a) a securities exchange made or adopted an amendment, by
way of rescission, alteration or addition, to its listing rules
before the FSR commencement; and
(b) written notice of the amendment was lodged in accordance
with subsection 774(1) of the old Corporations Act before the
FSR commencement; and
(c) the period of 28 days in relation to the amendment,
mentioned in subsection 774(5) of the old Corporations Act,
had not expired before the FSR commencement; and
(d) the Minister had not decided, before the FSR
commencement, whether to disallow the whole or a specified
part of the amendment under subsection 774(5) of the old
Corporations Act.
Note: The period of 28 days in paragraph (c) is the period in which the
Minister may disallow the whole or a specified part of the amendment.
(2) On and after the FSR commencement, section 793E of the Act has
effect in relation to the amendment as if the amendment were a
change to the operating rules of a licensed market mentioned in
section 793D of the Act.
(3) For subregulation (2):
(a) the securities exchange is to be treated, under sections 793D
and 793E of the Act, as a market licensee that has lodged
written notice of the change with ASIC; and
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Transitional arrangements relating to business rules or listing rules Division 2
Regulation 10.2.07
Corporations Regulations 2001 37
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) ASIC is taken to have complied with its obligations to the
Minister under section 793E of the Act; and
(c) the Minister is taken to have been given the notice of the
change on the day on which written notice of the amendment
was lodged in accordance with subsection 774(1) of the old
Corporations Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 3 Status of directions and notices
Regulation 10.2.08
38 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 3—Status of directions and notices
10.2.08 Direction to securities exchange to comply with ongoing
requirements
(1) This regulation applies if the Minister published a notice under
subsection 769B(1) of the old Corporations Act before the FSR
commencement, directing a securities exchange to do specified
things.
(2) On and after the FSR commencement, the notice is taken to be a
direction to a market licensee under subsection 794A(1) of the Act.
10.2.09 Notice to securities exchange of need to prohibit trading
(1) This regulation applies if ASIC gave a notice to a securities
exchange under subsection 775(1) of the old Corporations Act
before the FSR commencement, stating the Commission’s opinion
that it is necessary to prohibit trading in particular securities.
(2) On and after the FSR commencement, the notice is taken to be
written advice given to a market licensee under subsection 794D(1)
of the Act.
(3) ASIC is taken to have complied with its obligation under
subsection 794D(1) of the Act to give a statement setting out
reasons for making the direction.
10.2.10 Notice to securities exchange prohibiting trading
(1) This regulation applies if ASIC gave a notice to a securities
exchange under subsection 775(2) of the old Corporations Act
before the FSR commencement, prohibiting trading in particular
securities.
(2) On and after the FSR commencement, the notice is taken to be a
direction to a market licensee under subsection 794D(2) of the Act.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Status of directions and notices Division 3
Regulation 10.2.11
Corporations Regulations 2001 39
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) ASIC is taken to have complied with its obligation under
subsection 794D(2) of the Act to give a statement setting out
reasons for making the direction.
10.2.11 Direction to futures exchange—orderly market
(1) This regulation applies if ASIC gave a notice to a futures exchange
under subsection 1138(1) of the old Corporations Act before the
FSR commencement.
(2) On and after the FSR commencement, the notice is taken to be
written advice given to a market licensee under subsection 794D(1)
of the Act.
(3) ASIC is taken to have complied with its obligations under
section 794D of the Act in relation to the period before giving the
written advice.
(4) ASIC is taken to have complied with its obligations under
subsection 794D(5) of the Act if it complies with those obligations
as soon as practicable after the FSR commencement.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 4 Assistance to ASIC
Regulation 10.2.12
40 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4—Assistance to ASIC
10.2.12 Obligations of securities exchange: disciplinary action
(1) This regulation applies if:
(a) a securities exchange was required, before the FSR
commencement, to lodge written particulars under
subsection 776(2) of the old Corporations Act of disciplinary
action it had taken; and
(b) the securities exchange had not complied with the
requirement before the FSR commencement; and
(c) the period for compliance had not expired before the FSR
commencement.
(2) On and after the FSR commencement, the requirement is taken to
be a requirement under paragraph 792B(2)(b) of the Act.
(3) The market licensee to which subregulation (2) relates is taken to
have complied with its obligations under paragraph 792B(2)(b) of
the Act if it complies with those obligations as soon as practicable
after the FSR commencement.
10.2.13 Obligations of securities exchange: particulars of
contravention
(1) This regulation applies if:
(a) a securities exchange was required, before the FSR
commencement, to lodge a statement under
subsection 776(2A) of the old Corporations Act in relation to
a contravention of the securities exchange’s business rules or
listing rules; and
(b) the securities exchange had not complied with the
requirement before the FSR commencement; and
(c) the period for compliance had not expired before the FSR
commencement.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Assistance to ASIC Division 4
Regulation 10.2.14
Corporations Regulations 2001 41
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) On and after the FSR commencement, the requirement is taken to
be a requirement under paragraph 792B(2)(c) of the Act.
(3) The market licensee to which subregulation (2) relates is taken to
have complied with its obligations under paragraph 792B(2)(c) of
the Act if it complies with those obligations as soon as practicable
after the FSR commencement.
10.2.14 Obligations of securities exchange: information about listed
disclosing entity
(1) This regulation applies if:
(a) a securities exchange was required, before the FSR
commencement, to give ASIC a document under
subsection 776(2B) of the old Corporations Act containing
information about a listed disclosing entity; and
(b) the securities exchange had not complied with the
requirement before the FSR commencement; and
(c) the period for compliance had not expired before the FSR
commencement.
(2) On and after the FSR commencement, the requirement is taken to
be a requirement under subsection 792C(1) of the Act.
(3) The market licensee to which subregulation (2) relates is taken to
have complied with its obligations under subsection 792C(1) of the
Act if it complies with those obligations as soon as practicable
after the FSR commencement.
10.2.15 Obligations of securities clearing house: disciplinary action
(1) This regulation applies if:
(a) the securities clearing house was required under section 779E
of the old Corporations Act, before the FSR commencement,
to lodge written particulars relating to disciplinary action;
and
(b) the securities clearing house had not complied with the
requirement before the FSR commencement; and
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 4 Assistance to ASIC
Regulation 10.2.16
42 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) the period for compliance had not expired before the FSR
commencement.
(2) On and after the FSR commencement, the requirement is taken to
be a requirement under paragraph 821B(2)(b) of the Act.
10.2.16 Obligations of futures body: disciplinary action
(1) This regulation applies if:
(a) a futures body was required, before the FSR commencement,
to lodge written particulars under subsection 1139(2) of the
old Corporations Act of disciplinary action it had taken; and
(b) the futures body had not complied with the requirement
before the FSR commencement; and
(c) the period for compliance had not expired before the FSR
commencement.
(2) On and after the FSR commencement, the requirement is taken to
be a requirement under:
(a) if the futures body has become a market licensee after the
FSR commencement—paragraph 792B(2)(b) of the Act; or
(b) if the futures body has become a CS facility licensee after the
FSR commencement—paragraph 821B(2)(b) of the Act.
(3) The market licensee or CS facility licensee to which
subregulation (2) relates is taken to have complied with its
obligations under subsection 792C(1) of the Act if it complies with
those obligations as soon as practicable after the FSR
commencement.
10.2.17 Obligations of futures body: particulars of contravention
(1) This regulation applies if:
(a) a futures body was required, before the FSR commencement,
to lodge a statement under subsection 1139(2A) of the old
Corporations Act in relation to a contravention of the futures
exchange’s business rules or listing rules; and
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Assistance to ASIC Division 4
Regulation 10.2.18
Corporations Regulations 2001 43
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the futures body had not complied with the requirement
before the FSR commencement; and
(c) the period for compliance had not expired before the FSR
commencement.
(2) On and after the FSR commencement, the requirement is taken to
be a requirement under paragraph 792B(2)(c) of the Act.
(3) The market licensee to which subregulation (2) relates is taken to
have complied with its obligations under paragraph 792B(2)(c) of
the Act if it complies with those obligations as soon as practicable
after the FSR commencement.
10.2.18 Obligations of clearing house for futures exchange:
information about listed disclosing entity
(1) This regulation applies if:
(a) a clearing house for a futures exchange was required, before
the FSR commencement, to give ASIC particulars of action
under subsection 1139(3) of the old Corporations Act; and
(b) the clearing house had not complied with the requirement
before the FSR commencement; and
(c) the period for compliance had not expired before the FSR
commencement.
(2) On and after the FSR commencement, subsection 1139(4) of the
old Corporations Act, as in force immediately before the FSR
commencement, continues to have effect in relation to the clearing
house in its capacity as a market licensee.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 5 Special reports
Regulation 10.2.19
44 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5—Special reports
10.2.19 Special report by securities exchange about compliance with
ongoing requirements
(1) This regulation applies if:
(a) a securities exchange was required, before the FSR
commencement, to give ASIC a special report under
subsection 769D(1) of the old Corporations Act; and
(b) the securities exchange had not complied with the
requirement before the FSR commencement; and
(c) the period for compliance had not expired before the FSR
commencement.
(2) On and after the FSR commencement, the requirement is taken to
be a requirement under subsection 794B(1) of the Act.
10.2.20 Special report by securities exchange about compliance with
ongoing requirements: ASIC requirements
(1) This regulation applies if:
(a) a securities exchange was required, before the FSR
commencement, to give ASIC a special report under
subsection 769D(1) of the old Corporations Act; and
(b) ASIC had not complied with its obligations to the Minister
under section 769D of the old Corporations Act before the
FSR commencement; and
(c) the period for compliance had not expired before the FSR
commencement.
(2) On and after the FSR commencement, ASIC’s obligations to the
Minister are taken to be obligations under subsection 794B(1) of
the Act.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Transactions by holder of financial services licence or a representative of the holder of
such a licence Division 5A
Regulation 10.2.20A
Corporations Regulations 2001 45
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5A—Transactions by holder of financial services
licence or a representative of the holder of such a
licence
10.2.20A References to financial service licensee
(1) For section 1444 of the Act, a reference in section 1043K of the
Act to a financial services licensee includes a reference to a
regulated principal mentioned in item 1, 3 or 8 of the table in
section 1430 of the Act.
(2) Subregulation (1) ceases to apply in relation to a regulated
principal at the end of the transition period in relation to the
regulated principal.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 5B Obligation to pay money into account
Regulation 10.2.20B
46 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 5B—Obligation to pay money into account
10.2.20B Financial products quoted on Australian Stock Exchange
Limited
(1) For section 1444 of the Act, this regulation applies in relation to a
person that is:
(a) a regulated principal mentioned in item 1 of the table in
section 1430 of the Act (including a person to whom Part 7.6
of the old Corporations Act applies); and
(b) a participant of Australian Stock Exchange Limited.
(2) In addition to section 866 of the old Corporations Act, the
regulated principal must:
(a) operate a special purpose interest-bearing trust account; and
(b) designate the account to be a Special Purpose Trust Account;
and
(c) ensure that the Special Purpose Trust Account is:
(i) with an Australian ADI; or
(ii) of a kind mentioned in subregulation 7.8.01(2).
(3) The regulated principal must withdraw from an account maintained
for section 866 of the old Corporations Act an amount equal to
two-thirds of:
(a) if the regulated principal maintains 2 or more accounts for
that section—the lowest aggregate of the balances in the
accounts during the 3 months ending on the quarter day last
past; or
(b) if the regulated principal maintains 1 account for that
section—the lowest balance in the account during the 3
months ending on the quarter day last past.
(4) Subject to subregulations (5) and (6), the regulated principal must:
(a) deposit the amount mentioned in subregulation (3) into the
regulated principal’s Special Purpose Trust Account; and
(b) keep the amount on deposit.
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Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Obligation to pay money into account Division 5B
Regulation 10.2.20B
Corporations Regulations 2001 47
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(5) A deposit need not be lodged or kept for subregulation (4) if, apart
from this subregulation, the amount of the deposit would be less
than $3 000.
(6) If, because of subregulation (3), the amount of a deposit to be
lodged and kept in the regulated principal’s Special Purpose Trust
Account increases, the regulated principal must lodge the amount
of the increase within 5 business days after the relevant quarter day
that is the last day of the period by reference to which the amount
required to be lodged is calculated.
(7) An amount deposited in the Special Purpose Trust Account under
subregulation (4) is also taken to be monies held in an account
maintained by the regulated principal for section 866 of the old
Corporations Act.
(8) If money is held in an account under subregulation (4):
(a) the interest on the account is the income of SEGC; and
(b) the regulated principal must pay the interest to SEGC, less
any amount paid in relation to account establishment fees,
account keeping fees, government taxes or other duties.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 6 Self-listing
Regulation 10.2.21
48 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 6—Self-listing
10.2.21 Status of arrangements for self-listing
On and after the FSR commencement, arrangements entered into
by a securities exchange under subsection 772B(2) of the old
Corporations Act are taken to be arrangements entered into under
subsection 798C(2) of the Act.
10.2.22 Status of exemption relating to self-listing
(1) On and after the FSR commencement, an exemption given by
ASIC under paragraph 772B(6)(a) of the old Corporations Act
continues in force as if it were an exemption given under
paragraph 798D(1)(a) of the Act.
(2) On and after the FSR commencement, a declaration made by ASIC
under paragraph 772B(6)(b) of the old Corporations Act continues
in force as if it were a declaration made under
paragraph 798D(1)(b) of the Act.
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Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Decisions about membership of futures exchange Division 7
Regulation 10.2.23
Corporations Regulations 2001 49
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 7—Decisions about membership of futures
exchange
10.2.23 Status of notice to applicant
(1) This regulation applies if:
(a) a futures exchange was required, before the FSR
commencement, to give an applicant for membership of the
futures exchange a notice under subsection 1135(1) of the old
Corporations Act; and
(b) the futures exchange had not complied with the requirement
before the FSR commencement; and
(c) the period for compliance had not expired before the FSR
commencement.
(2) On and after the FSR commencement, subsection 1135(1) of the
old Corporations Act, as in force immediately before the FSR
commencement, continues to have effect in relation to the futures
exchange in its capacity as a market licensee.
10.2.24 Status of notice to ASIC
(1) This regulation applies if:
(a) a futures exchange was required, before the FSR
commencement, to give ASIC a notice under
subsection 1135(1) of the old Corporations Act; and
(b) the futures exchange had not complied with the requirement
before the FSR commencement; and
(c) the period for compliance had not expired before the FSR
commencement.
(2) On and after the FSR commencement, subsection 1135(1) of the
old Corporations Act, as in force immediately before the FSR
commencement, continues to have effect in relation to the futures
exchange in its capacity as a market licensee.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 8 National Guarantee Fund
Regulation 10.2.25
50 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 8—National Guarantee Fund
10.2.25 Status of claim against the National Guarantee Fund
(1) This regulation applies if:
(a) a person made a claim in relation to a matter, before the FSR
commencement, under a provision of any of the following
Divisions of the old Corporations Act:
(i) Division 6 of Part 7.10 (dealing with contract
guarantees);
(ii) Division 6A of Part 7.10 (dealing with securities loans
guarantees);
(iii) Division 6B of Part 7.10 (dealing with net obligations);
(iv) Division 6C of Part 7.10 (dealing with transfer service
delivery guarantees);
(v) Division 7 of Part 7.10 (dealing with unauthorised
transfer);
(vi) Division 7A of Part 7.10 (dealing with contraventions of
SCH certificate cancellation provisions);
(vii) Division 8 of Part 7.10 (dealing with insolvent
members); and
(b) the claim had not been withdrawn, or finally determined in
accordance with the old Corporations Act, before the FSR
commencement.
(2) On and after the FSR commencement:
(a) Division 1, and Divisions 6 to 9, of Part 7.10 of the old
Corporations Act continue to have effect in relation to the
claim; and
(b) regulations made for Part 7.10 of the old Corporations Act, as
in force immediately before the FSR commencement,
continue to have effect in relation to the claim; and
(c) Part 7.5 of the Act has effect in relation to a matter to which
paragraphs (a) and (b) do not apply.
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Transitional arrangements relating to Financial Services Reform legislation Part 10.2
National Guarantee Fund Division 8
Regulation 10.2.26
Corporations Regulations 2001 51
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.26 Entitlement to make claim against the National Guarantee
Fund
(1) This regulation applies if:
(a) a person could have made a claim in relation to a matter,
before the FSR commencement, under a provision of any of
the following Divisions of the old Corporations Act:
(i) Division 6 of Part 7.10 (dealing with contract
guarantees);
(ii) Division 6A of Part 7.10 (dealing with securities loans
guarantees);
(iii) Division 6B of Part 7.10 (dealing with net obligations);
(iv) Division 6C of Part 7.10 (dealing with transfer service
delivery guarantees);
(v) Division 7 of Part 7.10 (dealing with unauthorised
transfer);
(vi) Division 7A of Part 7.10 (dealing with contraventions of
SCH certificate cancellation provisions);
(vii) Division 8 of Part 7.10 (dealing with insolvent
members); and
(b) the person did not make the claim before the FSR
commencement.
(2) On and after the FSR commencement:
(a) Division 1, and Divisions 6 to 9, of Part 7.10 of the old
Corporations Act continue to have effect in relation to the
person; and
(b) regulations made for Part 7.10 of the old Corporations Act
continue to have effect in relation to the person; and
(c) Part 7.5 of the Act has effect in relation to a matter to which
paragraphs (a) and (b) do not apply.
(3) However, the person cannot make a claim under section 949 or
950, or Division 6A, 6B or 6C of Part 7.10, of the old Corporations
Act after 30 September 2005.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 8 National Guarantee Fund
Regulation 10.2.27
52 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.27 Status of future claim against the National Guarantee Fund
(1) This regulation applies if:
(a) a matter related to conduct that occurred before the FSR
commencement; and
(b) a person could, if Part 7.10 of the old Corporations Act had
not been repealed, have made a claim in relation to the matter
under any of the following Divisions of the old Corporations
Act on or after the FSR commencement:
(i) Division 6 of Part 7.10 (dealing with contract
guarantees);
(ii) Division 6A of Part 7.10 (dealing with securities loans
guarantees);
(iii) Division 6B of Part 7.10 (dealing with net obligations);
(iv) Division 6C of Part 7.10 (dealing with transfer service
delivery guarantees);
(v) Division 7 of Part 7.10 (dealing with unauthorised
transfer);
(vi) Division 7A of Part 7.10 (dealing with contraventions of
SCH certificate cancellation provisions);
(vii) Division 8 of Part 7.10 (dealing with insolvent
members).
(2) On and after the FSR commencement:
(a) Division 1, and Divisions 6 to 9, of Part 7.10 of the old
Corporations Act continue to have effect in relation to the
matter and the person; and
(b) regulations made for Part 7.10 of the old Corporations Act
continue to have effect in relation to the matter and the
person; and
(c) Part 7.5 of the Act has effect in relation to a matter to which
paragraphs (a) and (b) do not apply.
(3) However, the person cannot make a claim under section 949 or
950, or Division 6A, 6B or 6C of Part 7.10, of the old Corporations
Act after 30 September 2005.
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Transitional arrangements relating to Financial Services Reform legislation Part 10.2
National Guarantee Fund Division 8
Regulation 10.2.27A
Corporations Regulations 2001 53
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.27A Expenditure of excess funds from National Guarantee
Fund
(1) For section 1444 of the Act, this regulation applies to a purpose in
relation to a payment to be made out of a development account if:
(a) the purpose was approved under subsection 945(3) of the old
Corporations Act; and
(b) the approval was in force immediately before the FSR
commencement.
(2) The purpose is taken to be an approved purpose for
subregulation 7.5.88(1).
(3) If the purpose approved under subsection 945(3) of the old
Corporations Act included conditions relating to the payment to
which the approval related, the conditions are taken to be
conditions determined under subregulation 7.5.88(3).
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 9 Claims against fidelity funds
Regulation 10.2.28
54 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 9—Claims against fidelity funds
10.2.28 Status of claim against fidelity fund
(1) This regulation applies if:
(a) a person made a claim in relation to a matter, before the FSR
commencement, under Part 7.9 or Part 8.6 of the old
Corporations Act; and
(b) the claim had not been withdrawn, or finally determined in
accordance with the old Corporations Act, before the end of
the transition period within the meaning of
subsection 1414(2) of the Act.
(2) After the end of the transition period:
(a) Part 7.9 or Part 8.6 of the old Corporations Act (as
appropriate), as in force immediately before the FSR
commencement, continues to have effect in relation to the
claim; and
(b) regulations made for Part 7.9 or Part 8.6 of the old
Corporations Act (as appropriate), as in force immediately
before the FSR commencement, continue to have effect in
relation to the claim.
10.2.29 Entitlement to make claim against fidelity fund
(1) This regulation applies if:
(a) a person could have made a claim in relation to a matter,
before the FSR commencement, under Part 7.9 or Part 8.6 of
the old Corporations Act; and
(b) the person did not make the claim before the end of the
transition period within the meaning of subsection 1414(2) of
the Act.
(2) After the end of the transition period:
(a) Part 7.9 or Part 8.6 of the old Corporations Act (as
appropriate), as in force immediately before the FSR
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Claims against fidelity funds Division 9
Regulation 10.2.29A
Corporations Regulations 2001 55
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
commencement, continues to have effect in relation to the
claim; and
(b) regulations made for Part 7.9 or Part 8.6 of the old
Corporations Act (as appropriate), as in force immediately
before the FSR commencement, continue to have effect in
relation to the claim.
10.2.29A Status of incomplete claim against fidelity fund
(1) This regulation applies if:
(a) a person made a claim in relation to a matter, after the FSR
commencement, under Part 7.9 or Part 8.6 of the old
Corporations Act; and
(b) the claim had not been withdrawn, or finally determined in
accordance with the old Corporations Act, before the end of
the transition period within the meaning of
subsection 1414(2) of the Act.
(2) After the end of the transition period:
(a) Part 7.9 or Part 8.6 of the old Corporations Act (as
appropriate), as in force immediately before the FSR
commencement, continues to have effect in relation to the
claim; and
(b) regulations made for Part 7.9 or Part 8.6 of the old
Corporations Act (as appropriate), as in force immediately
before the FSR commencement, continue to have effect in
relation to the claim.
10.2.30 Status of future claim against fidelity fund
(1) This regulation applies if:
(a) a matter related to conduct that occurred before the FSR
commencement; and
(b) a person could, if Part 7.9 or 8.6 of the old Corporations Act
had not been repealed, have made a claim in relation to the
matter under Part 7.9 or Part 8.6 of the old Corporations Act
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 9 Claims against fidelity funds
Regulation 10.2.30
56 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
after the end of the transition period within the meaning of
subsection 1414(2) of the Act.
(2) After the end of the transition period:
(a) Part 7.9 or Part 8.6 of the old Corporations Act (as
appropriate), as in force immediately before the FSR
commencement, continues to have effect in relation to the
claim; and
(b) regulations made for Part 7.9 or Part 8.6 of the old
Corporations Act (as appropriate), as in force immediately
before the FSR commencement, continue to have effect in
relation to the claim.
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Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Status of netting markets Division 10
Regulation 10.2.31
Corporations Regulations 2001 57
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 10—Status of netting markets
10.2.31 Netting markets
(1) This regulation applies to:
(a) an approved special stock market that was, immediately
before the FSR commencement, a netting market within the
meaning of the Payment Systems and Netting Act 1998; and
(b) an exempt stock market that was, immediately before the
FSR commencement, a netting market within the meaning of
the Payment Systems and Netting Act 1998; and
(c) an exempt futures market that was, immediately before the
FSR commencement, a netting market within the meaning of
the Payment Systems and Netting Act 1998.
(2) On and after the FSR commencement, the market is taken to be a
netting market for the purposes of that Act.
(3) Subregulation (2) ceases to apply to the market if the market has
not become:
(a) the person conducting an Australian financial services
licensee; or
(b) an Australian market licensee;
by the end of the transition period.
(4) Subregulations (2) and (3) do not prevent a market mentioned in
subregulation (1) from applying for netting market approval during
the transition period in relation to the market.
Note: The transition period is explained in sections 1418 and 1421 of the
Act.
10.2.32 Netting market approval granted before the FSR
commencement
On and after the FSR commencement, a netting market approval
granted:
(a) under the Payment Systems and Netting Act 1998; and
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 10 Status of netting markets
Regulation 10.2.32
58 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) in relation to a market other than a market mentioned in
subregulation 10.2.31(1) before the FSR commencement;
is taken to continue in force.
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Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Status of listed securities Division 11
Regulation 10.2.33
Corporations Regulations 2001 59
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 11—Status of listed securities
10.2.33 Securities of exempt stock markets
(1) This regulation applies to a listed security, within the meaning of
the SIS Act, that was, immediately before the FSR commencement,
a share, unit, bond or debenture, right or other security, listed for
quotation in the official list of an exempt stock market.
(2) On and after the FSR commencement, the share, unit, bond or
debenture, right or other security is taken to be a listed security for
the purposes of the SIS Act.
(3) Subregulation (2) ceases to apply if:
(a) the person conducting the exempt stock market to which the
share, unit, bond or debenture, right or other security relates
becomes:
(i) an Australian financial services licensee; or
(ii) an Australian market licensee; or
(b) the exempt stock market to which the share, unit, bond or
debenture, right or other security relates ceases to operate.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 12 Miscellaneous
Regulation 10.2.34
60 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 12—Miscellaneous
10.2.34 Preservation of nomination of body corporate as SEGC
On and after the FSR commencement, the nomination of the SEGC
that continued to have effect in accordance with section 1390 of
the old Corporations Act continues to have effect.
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Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Regulated principals Division 13
Regulation 10.2.35
Corporations Regulations 2001 61
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Division 13—Regulated principals
10.2.35 Definitions
In this Division:
amended Corporations Act means the Act as in force after the FSR
commencement.
associate, in relation to a principal, means:
(a) if the principal is a body corporate:
(i) a director or secretary of the principal; and
(ii) a related body corporate; and
(iii) a responsible officer of the principal; and
(b) if the principal is a natural person:
(i) a person with whom the principal carries on a financial
services business in partnership; and
(ii) a director or proposed director of a body corporate:
(A) of which the principal is also a director or
proposed director; and
(B) that carries on a financial services business; and
(c) if the principal is a trustee of a trust to which
subsection 761FA(1) of the amended Corporations Act
applies—another trustee of that trust with whom the principal
carries on a financial services business.
financial services activities means:
(a) any conduct or activities that constitute:
(i) carrying on a financial services business; or
(ii) operating a financial market; or
(iii) operating a clearing and settlement facility; and
(b) any conduct or activities:
(i) that were engaged in before the FSR commencement;
and
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Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 13 Regulated principals
Regulation 10.2.35A
62 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) to which paragraph (a) would apply if they were
engaged in after the FSR commencement; and
(c) any conduct or activities:
(i) that were engaged in:
(A) after the FSR commencement; and
(B) before the relevant provisions of the amended
Corporations Act applied to the conduct or any
of the activities; and
(ii) to which paragraph (a) would apply if they were
engaged in after the relevant provisions of the amended
Corporations Act applied to the conduct or activities.
regulator means any of the following bodies:
(a) ASIC;
(b) a body that had any of the functions of ASIC before ASIC
was created;
(c) APRA;
(d) a body that had any of the functions of APRA before APRA
was created;
(e) the Australian Competition and Consumer Commission;
(f) a body that had any of the functions of the Australian
Competition and Consumer Commission before the
Australian Competition and Consumer Commission was
created.
10.2.35A Streamlined licensing procedure for certain regulated
principals
For subparagraph 1433(1)(b)(i) of the Act, each of the following is
a regulated principal to whom section 1433 of the Act applies:
(a) a regulated principal mentioned in item 14 of the table in
subregulation 10.2.38(2);
(b) a regulated principal mentioned in item 15 of the table in
subregulation 10.2.38(2).
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Regulated principals Division 13
Regulation 10.2.36
Corporations Regulations 2001 63
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10.2.36 Persons who are not covered by section 1433 of the Act
For subsection 1433(3) of the Act, a person who is a member of a
class of persons identified in an item in Schedule 10D is not
covered by section 1433 of the Act:
(a) if a period is mentioned in the item—during that period; or
(b) if there is no period mentioned in the item—while the person
remains a member of that class of persons.
10.2.37 Variation of conditions on financial services licence
(1) If:
(a) a person lodges an application for a financial services
licence; and
(b) subsection 1433(2) of the Act applies in relation to the
application;
the person may, at any time before ASIC grants or refuses to grant
the financial services licence, lodge with ASIC in the prescribed
form an application under paragraph 914A(2)(b) of the Act to vary
the conditions on the financial services licence so that the financial
services, or class of financial services, that the financial services
licence will authorise the person to provide is increased (despite
the fact that the financial services licence has not yet been granted).
(2) If:
(a) a person lodges an application for a financial services
licence; and
(b) subsection 1433(2) of the Act applies in relation to the
application; and
(c) the person has also lodged with ASIC the application under
paragraph 914A(2)(b) of the Act mentioned in
subregulation (1); and
(d) ASIC proposes to grant the financial services licence and
vary the conditions in accordance with the applications;
ASIC may, instead of issuing the licence and subsequently varying
the conditions on the licence, grant the financial services licence
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Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 13 Regulated principals
Regulation 10.2.38
64 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
subject to conditions that include the conditions that would
otherwise be mentioned in the variation.
(3) If ASIC acts under subregulation (2), ASIC is not required to
notify the licensee separately of the variation to the conditions in
accordance with subsection 914A(1) of the Act.
10.2.38 Persons taken to be regulated principals: giving of incidental
advice and previously exempt persons
(1) For item 9 of the table in section 1430 of the Act, a person is a
regulated principal if, immediately before the FSR commencement,
the person is a person described in column 2 of one of the items in
the following table.
(2) The regulated activities of that person are as specified in column 3
of that item, and the relevant old legislation is as specified in
column 4 of that item.
Regulated principals and regulated activities
Item These persons are regulated
principals
These are the regulated
principal’s regulated
activities
This is the
relevant old
legislation (if
any)
1 A person who first conducts
an activity, to which
subsection 77(5) of the old
Corporations Act would have
applied if that subsection had
not been repealed, after the
FSR commencement.
The activities to which
subsection 77(5) of the
old Corporations Act
would have applied if
that subsection had not
been repealed.
Subsection 77(5)
of the old
Corporations Act,
and any
associated
provisions.
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Regulated principals Division 13
Regulation 10.2.38
Corporations Regulations 2001 65
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Regulated principals and regulated activities
Item These persons are regulated
principals
These are the regulated
principal’s regulated
activities
This is the
relevant old
legislation (if
any)
2 A person who conducts an
exempt stock market within
the meaning of the old
Corporations Act that, if
carried on after the FSR
commencement, would be
required by the amended
Corporations Act (apart from
Subdivision D of Division 1 of
Part 10.2) to be covered by an
Australian financial services
licence.
The activities that the
declaration (as in force
immediately before the
FSR commencement)
under section 771 of the
old Corporations Act
authorised the person to
carry on.
Sections 767 and
771 of the old
Corporations Act,
and any
associated
provisions.
3 A person who conducts an
exempt futures market within
the meaning of the old
Corporations Act that, if
carried on after the FSR
commencement, would be
required by the amended
Corporations Act (apart from
Subdivision D of Division 1 of
Part 10.2) to be covered by an
Australian financial services
licence.
The activities that the
declaration (as in force
immediately before the
FSR commencement)
under section 1127 of the
old Corporations Act
authorised the person to
carry on.
Sections 1123
and 1127 of the
old Corporations
Act, and any
associated
provisions.
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Division 13 Regulated principals
Regulation 10.2.38
66 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Regulated principals and regulated activities
Item These persons are regulated
principals
These are the regulated
principal’s regulated
activities
This is the
relevant old
legislation (if
any)
4 A person who carries on an
activity, not mentioned in
item 2 or 3, that was the
subject of an exemption under
the old Corporations Act, or
any other relevant old
legislation prior to the FSR
commencement, that, if
carried on after the FSR
commencement, would be
required by the amended
Corporations Act (apart from
Subdivision D of Division 1 of
Part 10.2) to be covered by an
Australian financial services
licence.
The activities that were
covered by the
exemption.
The provision
that created the
exemption, and
any associated
provisions.
5 A holder of a futures brokers
licence within the meaning of
the old Corporations Act.
The activities that the
licence (as in force
immediately before the
FSR commencement)
authorised the person to
carry on.
Parts 8.3, 8.4
(other than
section 1210) and
8.5 of the old
Corporations Act,
sections 1266 and
1267 of the old
Corporations Act,
and any
associated
provisions.
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Regulated principals Division 13
Regulation 10.2.38
Corporations Regulations 2001 67
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Regulated principals and regulated activities
Item These persons are regulated
principals
These are the regulated
principal’s regulated
activities
This is the
relevant old
legislation (if
any)
6 A holder of a futures advisers
licence within the meaning of
the old Corporations Act.
The activities that the
licence (as in force
immediately before the
FSR commencement)
authorised the person to
carry on.
Parts 8.3 and 8.4
(other than
section 1210) of
the old
Corporations Act,
section 1267 of
the old
Corporations Act,
and any
associated
provisions.
7 A person whose licence is
suspended under
subsection 827(1) of the old
Corporations Act (whether the
suspension occurred before,
on or after the FSR
commencement)
(a) While the suspension
is in force—no
activities
(b) If the suspension
ceases to be in force
on or before
10 March 2004, and
from the time the
suspension ceases to
be in force—the
activities that the
licence (as in force
immediately before it
was suspended)
authorised the person
to carry on
All relevant old
legislation in
relation to the
kind of licence
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 13 Regulated principals
Regulation 10.2.38
68 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Regulated principals and regulated activities
Item These persons are regulated
principals
These are the regulated
principal’s regulated
activities
This is the
relevant old
legislation (if
any)
8 A person whose licence is
suspended under
subsection 1192(1) of the old
Corporations Act (whether the
suspension occurred before,
on or after 11 March 2002)
(a) While the suspension
is in force—no
activities
(b) If the suspension
ceases to be in force
on or before
10 March 2004, and
from the time the
suspension ceases to
be in force—the
activities that the
licence (as in force
immediately before it
was suspended)
authorised the person
to carry on
All relevant old
legislation in
relation to the
kind of licence
9 A person whose registration is
suspended under section 25 of
the Insurance (Agents and
Brokers) Act 1984
(a) While the suspension
is in force—no
activities
(b) If the suspension
ceases to be in force
on or before
10 March 2004, and
from the time the
suspension ceases to
be in force—the
activities that the
licence (as in force
immediately before it
was suspended)
authorised the person
to carry on
All of the
provisions of the
Insurance
(Agents and
Brokers) Act
1984 as in force
immediately
before the FSR
commencement,
and any
associated
provisions
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Regulated principals Division 13
Regulation 10.2.38
Corporations Regulations 2001 69
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Regulated principals and regulated activities
Item These persons are regulated
principals
These are the regulated
principal’s regulated
activities
This is the
relevant old
legislation (if
any)
10 A person whose registration is
suspended under section 25 of
the Insurance (Agents and
Brokers) Act 1984 who is
covered by a specification in
writing by ASIC under
subsection 25(3) of that Act
(a) While the
specification is in
force—such of the
person’s activities as
ASIC specifies in
writing under
subsection 25(3) of
the Insurance (Agents
and Brokers) Act
1984
(b) If the suspension
ceases to be in force
on or before
10 March 2004, and
from the time the
suspension ceases to
be in force—the
activities that the
registration
(immediately before
it was suspended)
authorised the person
to carry on
All of the
provisions of the
Insurance
(Agents and
Brokers) Act
1984 as in force
immediately
before the FSR
commencement,
and any
associated
provisions
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 13 Regulated principals
Regulation 10.2.38
70 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Regulated principals and regulated activities
Item These persons are regulated
principals
These are the regulated
principal’s regulated
activities
This is the
relevant old
legislation (if
any)
11 A person whose registration is
suspended under section 31H
of the Insurance (Agents and
Brokers) Act 1984
(a) While the suspension
is in force—no
activities
(b) If the suspension
ceases to be in force
on or before
10 March 2004, and
from the time the
suspension ceases to
be in force—the
activities that the
registration
(immediately before
it was suspended)
authorised the person
to carry on
All of the
provisions of the
Insurance
(Agents and
Brokers) Act
1984 as in force
immediately
before the FSR
commencement,
and any
associated
provisions
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Regulated principals Division 13
Regulation 10.2.38
Corporations Regulations 2001 71
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Regulated principals and regulated activities
Item These persons are regulated
principals
These are the regulated
principal’s regulated
activities
This is the
relevant old
legislation (if
any)
12 A person whose registration is
suspended under section 31H
of the Insurance (Agents and
Brokers) Act 1984 who is
covered by a specification in
writing by ASIC under
subsection 31H(3) of that Act
(a) While the
specification is in
force—such of the
person’s activities as
ASIC specifies in
writing under
subsection 31H(3) of
the Insurance (Agents
and Brokers) Act
1984
(b) If the suspension
ceases to be in force
on or before
10 March 2004, from
the time the
suspension ceases to
be in force—the
activities that the
registration
(immediately before
it was suspended)
authorised the person
to carry on
All of the
provisions of the
Insurance
(Agents and
Brokers) Act
1984 as in force
immediately
before the FSR
commencement,
and any
associated
provisions
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 13 Regulated principals
Regulation 10.2.38
72 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Regulated principals and regulated activities
Item These persons are regulated
principals
These are the regulated
principal’s regulated
activities
This is the
relevant old
legislation (if
any)
13 A person who was a registered
insurance broker within the
meaning of the Insurance
(Agents and Brokers) Act 1984
as in force immediately before
the FSR commencement, if:
(a) the person’s registration
under that Act expired
because of the operation of
subsection 21(3) of that
Act; and
(b) either:
(i) it is less than 8
weeks after the
registration expired;
or
(ii) the person applied
for renewal of
registration within 8
weeks after the
registration expired
The person’s business as
an insurance broker,
within the meaning of
the Insurance (Agents
and Brokers) Act 1984 as
in force immediately
before the FSR
commencement, carried
on from the date that the
registration ceased to
have effect
All the provisions
of the Insurance
(Agents and
Brokers) Act
1984 as in force
immediately
before the FSR
commencement,
and any
associated
provisions
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Regulated principals Division 13
Regulation 10.2.38
Corporations Regulations 2001 73
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Regulated principals and regulated activities
Item These persons are regulated
principals
These are the regulated
principal’s regulated
activities
This is the
relevant old
legislation (if
any)
14 A person who:
(a) conducts activities that, if
carried on after the FSR
commencement, would be
required by the amended
Corporations Act (apart
from Subdivision D of
Division 1 of Part 10.2) to
be covered by an
Australian financial
services licence; and
(b) is an Australian ADI, a life
company under the Life
Insurance Act 1995, a
general insurer under the
Insurance Act 1973 or an
approved trustee under the
Superannuation Industry
(Supervision) Act 1993
The class of activities
lawfully carried on by
the person immediately
before the FSR
commencement that, if
carried on after the FSR
commencement, would
be required by the
amended Corporations
Act (apart from
Subdivision D of
Division 1 of Part 10.2)
to be covered by an
Australian financial
services licence
For a body that
was an insurer
within the
meaning of the
Insurance
(Agents and
Brokers) Act
1984 as in force
immediately
before the FSR
commencement
—all the
provisions of that
Act as then in
force, and any
associated
provisions
In any other
case—subject to
any regulations
made for the
purposes of this
item, there is no
relevant old
legislation
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 13 Regulated principals
Regulation 10.2.39
74 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Regulated principals and regulated activities
Item These persons are regulated
principals
These are the regulated
principal’s regulated
activities
This is the
relevant old
legislation (if
any)
15 A person described in column
2 of items 1 to 5 of the table in
subsection 1430(1) of the Act,
who carries on other activities:
(a) that are not regulated
activities for the purpose
of items 1 to 5 of the table;
and
(b) that, if carried on after the
FSR commencement,
would (apart from
Subdivision D of
Division 1 of Part 10.2 of
the Act) be required by the
amended Corporations Act
to be covered by an
Australian financial
services licence
The class of activities
lawfully carried on by
the person immediately
before the FSR
commencement that
were not authorised by
the pre-FSR licence or
registration but would
(apart from Subdivision
D of Division 1 of
Part 10.2 of the Act) be
required by the amended
Corporations Act to be
covered by an Australian
financial services licence
There is no
relevant old
legislation
10.2.39 Reference to offer covered by Australian financial services
licence: section 911A of the Act
(1) For section 1444 of the Act, this regulation applies in relation to:
(a) a regulated principal; and
(b) a representative of a regulated principal within the meaning
of subsection 1436(1) of the Act.
(2) A reference in paragraph 911A(2)(b) of the Act to a financial
services licensee includes a regulated principal.
(3) A reference in paragraph 911A(2)(b) of the Act to an authorised
representative includes a representative of a regulated principal.
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Regulated principals Division 13
Regulation 10.2.40
Corporations Regulations 2001 75
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) A reference in paragraph 911A(2)(b) of the Act to an offer covered
by a financial services licensee’s Australian financial services
licence includes an offer within the regulated activities of the
regulated principal.
(5) Subregulations (2), (3) and (4) cease to apply in relation to the
regulated principal and the representative at the end of the
transition period in relation to the regulated principal.
10.2.40 Reference to financial services licensee: section 911A of the
Act
(1) This regulation applies in relation to the following provisions of
the Act:
(a) subparagraph 911A(2)(f)(viii);
(b) subparagraph 911A(2)(f)(ix);
(c) paragraph 911A(3)(a);
(d) paragraph 911A(3)(c).
(2) A reference in those provisions to a financial services licensee
includes a regulated principal.
(3) Subregulation (2) ceases to apply in relation to a regulated
principal at the end of the transition period in relation to the
regulated principal.
10.2.40A Need for an Australian financial services licence
(1) For section 1444 of the Act, paragraphs 911A(2)(ea), (eb) and (ec)
of the Act do not apply in relation to a regulated principal and its
regulated activities.
(2) For section 1444 of the Act, subparagraphs 7.6.01(1)(e)(iii) and
(iv) and subparagraph 7.6.01(1)(o)(iv) do not apply in relation to a
regulated principal and its regulated activities.
(4) This regulation ceases to apply in relation to a regulated principal
and its regulated activities at the end of the period of 2 years
starting on the FSR commencement.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 13 Regulated principals
Regulation 10.2.41
76 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.41 Reference to second principal: section 911B of the Act
(1) For section 1444 of the Act, subparagraph 911B(1)(b)(iv) of the
Act does not apply if the second principal is a regulated principal.
(2) Subregulation (1) ceases to apply in relation to a regulated
principal at the end of the transition period in relation to the
regulated principal.
10.2.42 Reference to financial services licensee: section 916D of the
Act
(1) For section 1444 of the Act, section 916D of the Act is taken to
prohibit a regulated principal from being the authorised
representative of a financial services licensee if the authorisation
would authorise the regulated principal to provide financial
services that are within the regulated principal’s regulated
activities.
(2) Subregulation (1) ceases to apply in relation to the regulated
principal at the end of the transition period in relation to the
regulated principal.
10.2.43 Status of insurance agent: section 1436A of the Act
For section 1436A of the Act, and to avoid doubt, if an insurer is:
(a) a financial services licensee; and
(b) a principal mentioned in paragraph 1436A(2)(d) in relation to
an insurance agent mentioned in paragraph 1436A(2)(a);
the insurance agent is taken not to be a representative of the insurer
under section 910A of the Act.
10.2.44A Obligation to cite licence number in documents
(1) This regulation applies if:
(a) a person who has not been granted a financial services
licence prepares any document in connection with the
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Regulated principals Division 13
Regulation 10.2.46
Corporations Regulations 2001 77
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
provision of financial services or the business of providing
financial services; and
(b) the document does not include a licence number for the
person; and
(c) the person is granted a licence after preparing the document.
(2) For section 1444 of the Act, section 912F of the Act does not apply
to the document.
(3) If the document is a periodic statement under section 1017D of the
Act, subregulation (2) ceases to apply at the end of 3 years after the
FSR commencement.
(4) If the document is not a periodic statement under section 1017D of
the Act, subregulation (2) ceases to apply at the end of 2 years after
the FSR commencement.
10.2.46 When Australian financial services licence may be granted
(1) For section 1444 of the Act, on and after the FSR commencement:
(a) section 913B of the Act is taken to authorise ASIC to specify,
in an Australian financial services licence, a date (later than
the date on which the licence is granted) from which the
licence takes effect; and
(b) the financial services licence is taken for all purposes not to
have been granted until the specified date.
(2) Paragraph (1)(a) ceases to apply 2 years after the FSR
commencement.
Note: Generally, providers of financial services (other than new entrants to
the industry) will have 2 years from the FSR commencement to obtain
a licence under the new regime. During this transition period, the
existing legislative regime (if any) will be preserved for, and will
continue to apply to, those providers.
The arrangements for the transition period are set out in Subdivision D
of Division 1 of Part 10.2 of the Corporations Act.
Therefore, there will be an individual date at which the new legislative
regime will begin to apply to those providers. The date will be some
time between the FSR commencement and the end of the transition
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Division 13 Regulated principals
Regulation 10.2.46A
78 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
period (2 years after the FSR commencement), and may be the date on
which the provider is granted an Australian financial services licence.
It may be appropriate, in some cases, for the date of effect of the
Australian financial services licence to be later than the date on which
the licence is physically granted.
This arrangement ceases to apply 2 years after the end of the FSR
commencement. However, the date of effect of a licence will not be
affected by the end of the arrangement.
10.2.46A When Australian financial services licence may be varied
(1) For section 1444 of the Act, on and after the FSR commencement:
(a) subsection 914A(1) of the Act is taken to authorise ASIC to
specify a date (later than the date on which conditions are
imposed on an Australian financial services licence) from
which the imposition of the conditions takes effect; and
(b) the conditions are taken for all purposes not to have been
imposed until the specified date.
(2) For section 1444 of the Act, on and after the FSR commencement:
(a) subsection 914A(1) of the Act is taken to authorise ASIC to
specify a date (later than the date on which additional
conditions are imposed on an Australian financial services
licence) from which the imposition of the additional
conditions takes effect; and
(b) the additional conditions are taken for all purposes not to
have been issued until the specified date.
(3) For section 1444 of the Act, on and after the FSR commencement:
(a) subsection 914A(1) of the Act is taken to authorise ASIC to
specify a date (later than the date on which conditions
imposed on an Australian financial services licence are
varied or revoked) from which the variation or revocation
takes effect; and
(b) the conditions are taken for all purposes not to have been
varied or revoked until the specified date.
(4) For section 1444 of the Act, on and after the FSR commencement:
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Regulation 10.2.47
Corporations Regulations 2001 79
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(a) subsection 915A(1) of the Act is taken to authorise ASIC to
specify a date (later than the date on which an Australian
financial services licence is varied) from which the variation
takes effect; and
(b) the financial services licence is taken for all purposes not to
have been varied until the specified date.
(5) Paragraphs (1)(a), (2)(a), (3)(a) and (4)(a) cease to apply 2 years
after the FSR commencement.
10.2.47 Dispute resolution requirements: no external dispute
resolution scheme
For section 1444 of the Act, paragraph 912A(2)(b) of the Act does
not apply in relation to a financial services licensee at any time
within 2 years after the FSR commencement unless, at that time:
(a) there is an external dispute resolution scheme in existence
that satisfies subparagraphs 912A(2)(b)(i) and (ii) of the Act;
and
(b) the external dispute resolution scheme has been in existence
for a period of at least 3 months.
10.2.47A Modification of pre-FSR authority
(1) For section 1444 of the Act, this regulation applies if a person:
(a) is a regulated principal in relation to 2 or more regulated
activities; and
(b) holds an authority under the relevant old legislation in
relation to those regulated activities; and
(c) either:
(i) becomes a financial services licensee in relation to 1 or
more of those regulated activities; or
(ii) is exempt from the requirement to hold a financial
services licence in relation to 1 or more of those
regulated activities.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 13 Regulated principals
Regulation 10.2.47A
80 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) ASIC may vary the authority to take account of the fact that the
person has become a financial services licensee, or is exempt from
the requirement to hold a financial services licence.
(3) ASIC must not vary the authority unless ASIC has given the
person an opportunity:
(a) to appear at a hearing before ASIC that takes place in private;
and
(b) to make submissions and give evidence to ASIC in relation to
the matter.
(4) ASIC must give written notice of the variation to the person.
(5) The variation takes effect when the written notice of the variation
is given to the person.
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Financial services disclosure Division 14
Regulation 10.2.48
Corporations Regulations 2001 81
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 14—Financial services disclosure
10.2.48 Obligation to give Financial Services Guide for service
arranged before application of Part 7.7 of the Act
For section 1444 of the Act, sections 941A and 941B of the Act are
taken not to require a person to give a client a Financial Services
Guide in accordance with Division 2 of Part 7.7 of the Act in
relation to a financial service (the new financial service) if, before
the person became subject to Part 7.7 of the Act in relation to the
provision of the new financial service:
(a) the person was a regulated principal, or a representative of a
regulated principal within the meaning of subsection 1436(1)
of the Act, whose regulated activities included the provision
of financial services of the same kind as the new financial
service; and
(b) the person entered into an agreement with the client, to
provide the new financial service; and
(c) the client took all of the steps necessary for the person to be
able to provide the new financial service.
Note: When Part 7.7 of the Act begins to apply to a person, the person will
be under an obligation to provide a Financial Services Guide to a retail
client to which it provides financial services. The Financial Services
Guide should be given before the financial service is provided (see
sections 941A, 941B and 941D of the Act).
However, this could create difficulties if the person, or an authorised
representative, has an existing client, and has entered into an
arrangement with the client before Part 7.7 started to apply. The
obligation to give a Financial Services Guide would arise when
Part 7.7 begins to apply, but, under the arrangement, the financial
service might have to be provided very shortly afterwards. This might
make the giving of the Financial Services Guide in accordance with
section 941D difficult.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 14 Financial services disclosure
Regulation 10.2.48A
82 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.48A Obligation to give a Financial Services Guide for a
custodial and depository service
(1) For section 1444 of the Act, sections 941A and 941B of the Act are
taken not to require a person to give a Financial Services Guide to
a client, in accordance with Division 2 of Part 7.7 of the Act, in
relation to a financial service (the new financial service), if:
(a) the new financial service constitutes:
(i) the provision of a custodial or depository service under
section 766E of the Act; or
(ii) dealing in a financial product that is held on trust for or
on behalf of the client as a necessary part of the
custodial or depository service; or
(iii) issuing, to the client, a financial product that is a
beneficial interest in a financial product held on trust for
or on behalf of the client as a necessary part of the
custodial or depository service; and
(b) the person entered into the arrangement under which the
custodial or depository service is provided, before the FSR
commencement; and
(c) the arrangement continued unaltered after the person became
subject to Part 7.7 of the Act.
(2) For paragraph (1)(c), an arrangement is taken to continue unaltered
if:
(a) the person holds, under the arrangement, financial products
that are different financial products from those held under the
arrangement before the person became subject to Part 7.7 of
the Act; and
(b) none of the different financial products is held on instruction
from the client.
(3) Subparagraph (1)(a)(ii) does not apply to dealing in a financial
product if the dealing consists of the issue of a financial product to
a person other than the client to whom the custodial or depository
service is provided.
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Financial services disclosure Division 14
Regulation 10.2.49
Corporations Regulations 2001 83
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.49 Obligation to give Financial Services Guide in relation to
existing clients
(1) For section 1444 of the Act, section 941D of the Act is taken not to
require a person to give a client a Financial Services Guide in
relation to a financial service (the new financial service) within the
period specified in that section if, in the period of 6 months ending
on the day immediately before Part 7.7 of the Act first applies to
the person in relation to the provision of financial services of the
same kind as the new financial service, the person had provided a
financial service to the client of the same kind as the new financial
service.
(2) For subregulation (1), section 941D of the Act is also taken to
require the person to give the client the Financial Services Guide:
(a) as soon as is reasonably practicable; and
(b) in any event, within the period of 14 days starting on the day
on which the person would have been required by
section 941D of the Act to provide a Financial Services
Guide if subregulation (1) did not apply.
(3) This regulation ceases to apply in relation to the person at the end
of 14 days after the day on which Part 7.7 of the Act first applies to
the person in relation to the provision of financial services of the
same kind as the new financial service.
10.2.50 Content of Financial Services Guide for an authorised
representative that is a regulated principal or a
representative of a regulated principal
(1) This regulation applies if a person:
(a) is a regulated principal, or a representative of a regulated
principal within the meaning of subsection 1436(1) of the
Act; and
(b) is also in the transition period in the capacity of:
(i) a regulated principal; or
(ii) a representative of a regulated principal; and
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 14 Financial services disclosure
Regulation 10.2.50
84 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) is also a financial services licensee or an authorised
representative of a financial services licensee.
(2) Paragraphs 942B(2)(c) and 942C(2)(d) of the Act are taken to
require the person:
(a) to provide a statement, in addition to a Financial Services
Guide, to the effect that the person is able to provide
financial services as:
(i) a regulated principal; or
(ii) a representative of a regulated principal; and
(b) to include in the statement:
(i) a brief description of the kinds of financial services
provided in that capacity; and
(ii) the name of each regulated principal (if any) on whose
behalf the financial services are provided.
(3) For subregulation (2):
(a) section 940C of the Act is taken to apply in relation to the
statement; and
(b) the following matters are also taken to apply in relation to the
person:
(i) any regulations or other instruments in force for
section 940C;
(ii) any interpretation provisions that apply for
section 940C;
(iii) any provisions relating to liability (civil or criminal) that
apply for section 940C (whether or not they also apply
or applied for other purposes);
(iv) any provisions that limit, or that otherwise affect, the
operation of section 940C (whether or not they also
limit or limited, or affect or affected, the operation of
other provisions); and
(c) for Part 7.7 of the Act, the statement:
(i) is taken not to be a part of the Financial Services Guide;
and
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Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Financial services disclosure Division 14
Regulation 10.2.50A
Corporations Regulations 2001 85
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) is taken not to be a statement that the person is required
to include in a Financial Services Guide.
(4) The person must not fail to give the statement in accordance with
this regulation.
Penalty: 50 penalty units.
10.2.50A Treatment of arrangements under which a person can
instruct another person to acquire a financial product
(1) For section 1444 of the Act, this regulation applies in relation to a
custodial arrangement (within the meaning of section 1012IA of
the Act) in which the client is the holder of a superannuation
product issued to the client by the provider.
(2) Section 1012IA of the Act does not apply to a regulated acquisition
(within the meaning of that section) that occurs under the custodial
arrangement.
(3) Subregulation (2) ceases to apply at the end of 2 years after the
FSR commencement.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 15 Other provisions relating to conduct etc
Regulation 10.2.51
86 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 15—Other provisions relating to conduct etc
10.2.51 Sale offers that need disclosure
For section 1444 of the Act:
(a) section 707 of the old Corporations Act applies in relation to
managed investment products:
(i) issued before the FSR commencement; and
(ii) sold during the transitional period in relation to the
products; and
(b) section 707 of the Act applies in relation to managed
investment products:
(i) issued on or after the FSR commencement; and
(ii) sold during the transitional period in relation to the
products; and
(c) section 1012C of the Act does not apply in relation to a
financial product that is issued before the end of the
transition period in relation to the financial product, other
than:
(i) a security that is not also a warrant; and
(ii) a managed investment product that is not also a warrant.
10.2.52 Offers that do not need disclosure: small scale offerings
(1) For section 1444 of the Act, this regulation applies in relation to
managed investment products:
(a) issued or sold before the end of the transition period in
relation to the managed investment products; and
(b) for which:
(i) a disclosure document under Chapter 6D of the old
Corporations Act was not required because of the
operation of section 708 of the old Corporations Act
(other than subsection 708(1)); or
(ii) a disclosure document was lodged with ASIC under
Chapter 6D of the old Corporations Act.
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Other provisions relating to conduct etc Division 15
Regulation 10.2.52A
Corporations Regulations 2001 87
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) A reference in subsection 1012E(8) of the Act to issues and sales
that should be disregarded includes issues or sales of the managed
investment products.
10.2.52A Offers that do not need disclosure
(1) For section 1444 of the Act, this regulation applies in relation to an
offer of a financial product if:
(a) the financial product is described in subsection 1012E(1) of
the Act; and
(b) the financial product was offered before Division 2 of
Part 7.9 of the Act applied to the product; and
(c) a disclosure document was not required under Chapter 6D of
the old Corporations Act, in the course of the offer of the
financial product; and
(d) the disclosure document was not required in accordance with
a provision of section 708 of the old Corporations Act (other
than subsection 708(1)).
(2) The offer is taken to comply with the condition set out in
paragraph 1012E(9)(c) of the Act.
10.2.53 Money other than loans: financial services licensee who
formerly held dealer’s licence
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee who is a regulated principal mentioned
in item 1 of the table in section 1430 of the Act, and whose
financial services licence covers regulated activities for a regulated
principal of that kind in relation to money:
(a) received by the person before the end of the transition period
in relation to the person in the capacity of a regulated
principal of that kind; and
(b) to which subsection 867(1) of the old Corporations Act
applied.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 15 Other provisions relating to conduct etc
Regulation 10.2.54
88 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) Sections 866 to 871 of the old Corporations Act, and any
associated provisions, continue to apply to the regulated principal,
after the end of the transition period in relation to:
(a) the person in the capacity of a regulated principal of that
kind; and
(b) the money;
as if the regulated principal were a licensee within the meaning of
Part 7.6 of the old Corporations Act.
(3) Subdivision A of Division 2 of Part 7.8 of the Act, and any
associated provisions, apply in relation to the regulated principal as
if the money were money to which that Subdivision applied.
(4) A regulated principal must choose whether to deal with the money
in accordance with the arrangements mentioned in
subregulation (2) or the arrangements mentioned in
subregulation (3).
(5) For this regulation, compliance with the arrangements chosen by a
regulated principal is also taken to be compliance with the
arrangements that the regulated principal did not choose.
10.2.54 Money other than loans: financial services licensee who
formerly held futures broker’s licence
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee who is a regulated principal mentioned
in item 3 of the table in section 1430 of the Act, and whose
financial services licence covers regulated activities for a regulated
principal of that kind, in relation to:
(a) money received by the person before the end of the transition
period in relation to the person in the capacity of a regulated
principal of that kind and to which section 1209 of the old
Corporations Act applied; and
(b) money received by the person after the end of the transition
period in relation to the person in the capacity of a regulated
principal of that kind as a result of:
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Other provisions relating to conduct etc Division 15
Regulation 10.2.55
Corporations Regulations 2001 89
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) the payment of interest, dividends or other income from
the investment of money mentioned in paragraph (1)(a);
or
(ii) the realisation of an investment of money mentioned in
paragraph (1)(a); and
(c) money received by the person under subsection 1209(5A) of
the old Corporations Act after the end of the transition period
in relation to the person in the capacity of a regulated
principal of that kind.
(2) Section 1209 of the old Corporations Act, and any associated
provisions, continue to apply in relation to the regulated principal
after the end of the transition period in relation to:
(a) the person in the capacity of a regulated principal of that
kind; and
(b) the money;
as if the regulated principal were a futures broker within the
meaning of the old Corporations Act.
(3) Subdivision A of Division 2 of Part 7.8 of the Act, and any
associated provisions, apply in relation to the regulated principal as
if the money were money to which that Subdivision applied.
(4) A regulated principal must choose whether to deal with the money
in accordance with the arrangements mentioned in
subregulation (2) or the arrangements mentioned in
subregulation (3).
(5) For this regulation, compliance with the arrangements chosen by a
regulated principal is also taken to be compliance with the
arrangements that the regulated principal did not choose.
10.2.55 Money other than loans: financial services licensee who was
formerly a registered insurance broker
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee who is a regulated principal mentioned
in item 5 of the table in section 1430 of the Act, and whose
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 15 Other provisions relating to conduct etc
Regulation 10.2.55
90 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
financial services licence covers regulated activities for a regulated
principal of that kind, in relation to:
(a) money:
(i) received by the person before the end of the transition
period in relation to the person in their capacity as a
regulated principal of that kind; and
(ii) to which section 26 of the Insurance (Agents and
Brokers) Act 1984 applied; and
(b) money received by the person after the end of the transition
period in relation to the person in the capacity of a regulated
principal of that kind as a result of:
(i) the payment of interest, dividends or other income from
the investment of money mentioned in paragraph (1)(a);
or
(ii) the realisation of an investment of money mentioned in
paragraph (1)(a).
(2) Section 26 of the Insurance (Agents and Brokers) Act 1984, and
any associated provisions, continues to apply in relation to the
regulated principal after the end of the transition period in relation
to:
(a) the person in the capacity of a regulated principal of that
kind; and
(b) the money;
as if the regulated principal were a registered insurance broker
within the meaning of the Insurance (Agents and Brokers) Act
1984.
(3) Subdivision A of Division 2 of Part 7.8 of the Act, and any
associated provisions, apply in relation to the regulated principal as
if the money were money to which that Subdivision applied.
(4) A regulated principal must choose whether to deal with the money
in accordance with the arrangements mentioned in
subregulation (2) or the arrangements mentioned in
subregulation (3).
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Regulation 10.2.56
Corporations Regulations 2001 91
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(5) For this regulation, compliance with the arrangements chosen by a
regulated principal is also taken to be compliance with the
arrangements that the regulated principal did not choose.
10.2.56 Money other than loans: financial services licensee who
ceases to be licensed
(1) For section 1444 of the Act, this regulation applies in relation to
money held by a financial services licensee in an account
maintained under any of the following provisions:
(a) section 866 of the old Corporations Act;
(b) section 1209 of the old Corporations Act;
(c) section 26 of the Insurance (Agents and Brokers) Act 1984.
(2) If any of paragraphs 981F(a) to (d) of the Act applies to the
financial services licensee, any money held by the financial
services licensee in an account mentioned in subregulation (1) is to
be dealt with as if it were held by the licensee in an account
maintained for section 981B of the Act.
10.2.57 Loan money: financial services licensee who formerly held
dealer’s licence
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee who is a regulated principal mentioned
in item 1 of the table in section 1430 of the Act, and whose
financial services licence covers regulated activities for a regulated
principal of that kind, in relation to money:
(a) received by the person before the end of the transition period
in relation to the person in the capacity of a regulated
principal of this kind; and
(b) to which section 872 of the old Corporations Act applied.
(2) Section 872 of the old Corporations Act, and any associated
provisions, continue to apply in relation to the regulated principal
after the end of the transition period in relation to:
(a) the person in the capacity of a regulated principal of that
kind; and
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Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 15 Other provisions relating to conduct etc
Regulation 10.2.58
92 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the money;
as if the person were a dealer within the meaning of the old
Corporations Act.
10.2.58 Other property of clients: financial services licensee who
formerly held dealer’s licence
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee who is a regulated principal mentioned
in item 1 of the table in section 1430 of the Act, and whose
financial services licence covers regulated activities for a regulated
principal of this kind, in relation to scrip:
(a) received by the person before the end of the transition period
in relation to the person in the capacity of a regulated
principal of that kind; and
(b) to which section 873 of the old Corporations Act applied.
(2) Section 873 of the old Corporations Act, and any associated
provisions, continue to apply in relation to the regulated principal
after the end of the transition period in relation to:
(a) the person in the capacity of a regulated principal of that
kind; and
(b) the scrip;
as if the person was still the holder of a dealers licence within the
meaning of the old Corporations Act.
10.2.59 Other property of clients: financial services licensee who
formerly held futures broker’s licence
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee who is a regulated principal mentioned
in item 3 of the table in section 1430 of the Act, and whose licence
covers regulated activities for a regulated principal of that kind, in
relation to property:
(a) received by the person before the end of the transition period
in relation to the person in the capacity of a regulated
principal of that kind; and
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Other provisions relating to conduct etc Division 15
Regulation 10.2.60
Corporations Regulations 2001 93
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) to which section 1209 or 1214 of the old Corporations Act
applied.
(2) Sections 1209 and 1214 of the old Corporations Act, and any
associated provisions, continue to apply in relation to the regulated
principal after the end of the transition period in relation to:
(a) the person in the capacity of a regulated principal of that
kind; and
(b) the property;
as if the licensee were a futures broker within the meaning of the
old Corporations Act.
10.2.60 Special provisions relating to insurance: financial services
licensee who was formerly a registered insurance broker
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee who is a regulated principal mentioned
in item 5 of the table in section 1430 of the Act, and whose
financial services licence covers regulated activities for a regulated
principal of that kind, in relation to:
(a) money:
(i) received by the person before the end of the transition
period in relation to the person in the capacity of a
regulated principal of that kind; and
(ii) to which section 27 of the Insurance (Agents and
Brokers) Act 1984 applied; and
(b) contracts of insurance arranged or effected by the person
(either directly or through another person) before the end of
the transition period in relation to the person in the capacity
of a regulated principal of that kind; and
(c) proposed contracts of insurance of the kind mentioned in
paragraph (b).
(2) Section 27 (other than subsections 27(3) and (5)) of the Insurance
(Agents and Brokers) Act 1984, and any associated provisions,
continue to apply to the regulated principal after the end of the
transition period in relation to:
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Division 15 Other provisions relating to conduct etc
Regulation 10.2.61
94 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) the person in the capacity of a regulated principal of that
kind; and
(b) the money;
as if the licensee were a registered insurance broker within the
meaning of the Insurance (Agents and Brokers) Act 1984.
(3) Subsection 27(3) of the Insurance (Agents and Brokers) Act 1984,
and any associated provisions, continue to apply to the regulated
principal after the end of the transition period in relation to the
person in the capacity of a regulated principal of that kind, in
relation to contracts of insurance mentioned in paragraph (1)(b).
(4) Subsection 27(5) of the Insurance (Agents and Brokers) Act 1984,
and any associated provisions, continue to apply to the regulated
principal after the end of the transition period in relation to the
person in the capacity of a regulated principal of that kind, in
relation to contracts of insurance, or proposed contracts of
insurance, mentioned in paragraphs (1)(b) and (c) for which:
(a) the risk or part of the risk to which the contract or proposed
contract relates is accepted by or on behalf of an insurer; and
(b) the person has not been informed of, and has not otherwise
ascertained, the amount of a premium or an instalment of a
premium to be paid in connection with the contract or
proposed contract;
as if the person was still a registered insurance broker within the
meaning of the Insurance (Agents and Brokers) Act 1984.
10.2.61 Obligation to report: financial services licensee who
formerly held a futures broker’s licence
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee whose financial services licence covers
regulated activities for a regulated principal of the kind mentioned
in item 3 of the table in section 1430 of the Act, in relation to:
(a) money that is held by the licensee in an account maintained
under section 1209 of the old Corporations Act; and
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Regulation 10.2.62
Corporations Regulations 2001 95
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(b) property that is held by the licensee under section 1209 or
1214 of the old Corporations Act.
(2) Section 1207 of the old Corporations Act, and any associated
provisions, continue to apply in relation to the regulated principal
after the end of the transition period in relation to:
(a) the person in the capacity of a regulated principal of that
kind; and
(b) the money;
as if the person were a futures broker.
10.2.62 Reporting in relation to dealings in derivatives: financial
services licensee who formerly held a dealer’s licence
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee who is a regulated principal mentioned
in item 3 of the table in section 1430 of the Act, and whose
financial services licence covers regulated activities for a regulated
principal of that kind, in relation to:
(a) a futures contract within the meaning of section 72 of the old
Corporations Act that was acquired by the licensee on behalf
of a client before the end of the transition period in relation to
the person in the capacity of a regulated principal of that
kind; and
(b) authority to operate a discretionary account within the
meaning of section 61 of the old Corporations Act that was
given to the licensee before the end of the transition period in
relation to the person in the capacity of a regulated principal
of that kind.
(2) Section 1207 of the old Corporations Act, and any associated
provisions, continue to apply in relation to the regulated principal
after the end of the transition period in relation to:
(a) the person in the capacity of a regulated principal of that
kind; and
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Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 15 Other provisions relating to conduct etc
Regulation 10.2.63
96 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) futures contracts mentioned in paragraph (1)(a) that have not
been disposed of by the end of a particular month; and
(c) discretionary accounts mentioned in paragraph (1)(b) for
which the authority remained in force during part of a
particular month;
as if the person were a futures broker.
10.2.63 Financial statements of financial services licensee: general
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee who is not a regulated principal
mentioned in any the following items of the table in section 1430
of the Act:
(a) item 1;
(b) item 3;
(c) item 5;
(d) item 7.
(2) Subdivision C of Division 6 of Part 7.8 of the Act applies in
relation to the financial services licensee as if the first day of the
first financial year in relation to the licensee, in its capacity as
licensee, commenced on:
(a) if the person prepares financial statements for the entire
financial year in which the person became a financial
services licensee—the first day of that financial year; or
(b) if paragraph (a) does not apply—the day on which the person
became a financial services licensee.
10.2.64 Financial statements of financial services licensees who were
certain regulated principals
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee who is a regulated principal mentioned
in any of the following items of the table in section 1430 of the
Act:
(a) item 1;
(b) item 3;
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Regulation 10.2.64
Corporations Regulations 2001 97
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(c) item 5;
(d) item 7.
(2) Subdivision C of Division 6 of Part 7.8 of the Act applies in
relation to the financial services licensee as if the financial services
licensee had been a financial services licensee on and from the first
day of the financial year in which the person became a financial
services licensee.
(3) If the financial services licensee was, immediately before
becoming a financial services licensee, a regulated principal
mentioned in item 1 of the table in section 1430 of the Act:
(a) section 860 of the old Corporations Act, and any associated
provisions, continue to apply in relation to the most recent
financial year that ended before the financial year in which
the licensee became a financial services licensee, as if the
licensee were a person who held a securities dealers licence
within the meaning of the old Corporations Act; and
(b) section 860 of the old Corporations Act does not apply in
relation to the licensee in relation to the financial year in
which the licensee became a financial services licensee.
(4) If the financial services licensee was, immediately before
becoming a financial services licensee, a regulated principal
mentioned in item 3 of the table in section 1430 of the Act:
(a) section 1218 of the old Corporations Act, and any associated
provisions, continue to apply in relation to the licensee in
relation to the most recent financial year that ended before
the financial year in which the licensee became a financial
services licensee as if the licensee were a futures broker
within the meaning of the old Corporations Act; and
(b) section 1218 of the old Corporations Act does not apply in
relation to the licensee in relation to the financial year in
which the licensee became a financial services licensee.
(5) If the financial services licensee was, immediately before
becoming a financial services licensee, a regulated principal
mentioned in item 5 of the table in section 1430 of the Act:
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Division 15 Other provisions relating to conduct etc
Regulation 10.2.65
98 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) section 25A of the Insurance (Agents and Brokers) Act 1984,
and any associated provisions, continue to apply in relation to
the licensee in relation to the most recent accounting period
(within the meaning of that Act) that ended before the
accounting period in which the licensee became a financial
services licensee, as if the licensee were a registered
insurance broker; and
(b) section 25A of the Insurance (Agents and Brokers) Act 1984
does not apply in relation to the licensee in relation to the
accounting period in which the licensee became a financial
services licensee.
(6) If the financial services licensee was, immediately before
becoming a financial services licensee, a regulated principal
mentioned in item 7 of the table in section 1430 of the Act:
(a) section 31J of the Insurance (Agents and Brokers) Act 1984,
and any associated provisions, continue to apply in relation to
the licensee in relation to the most recent accounting period
(within the meaning of that Act) that ended before the
accounting period in which the licensee became a financial
services licensee as if the licensee were a registered foreign
insurance agent; and
(b) section 31J of the Insurance (Agents and Brokers) Act 1984
does not apply in relation to the licensee in relation to the
accounting period in which the licensee became a financial
services licensee.
10.2.65 Auditors: certain financial services licensee who formerly
held dealer’s licence
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee who:
(a) is a regulated principal mentioned in item 1 of the table in
section 1430 of the Act, and whose financial services licence
covers regulated activities for a regulated principal of that
kind; and
(b) is not a body corporate (other than a proprietary company) to
which section 327 of the old Corporations Act applies.
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Regulation 10.2.65
Corporations Regulations 2001 99
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(2) If:
(a) there was no vacancy in the office of auditor of the regulated
principal at the end of the transition period in relation to the
person in the capacity of a regulated principal of that kind;
and
(b) an auditor of the regulated principal would be eligible to
continue to act as auditor of the financial services licensee;
the auditor of the regulated principal is taken to have been
appointed under section 990B of the Act as auditor of the licensee
when the regulated principal became a financial services licensee
in relation to the regulated activities of a regulated principal of that
kind.
(3) If:
(a) there was no vacancy in the office of auditor of the regulated
principal at the end of the transition period in relation to the
person in the capacity of a regulated principal of that kind;
and
(b) the auditor of the regulated principal would not be eligible to
continue to act as auditor of the financial services licensee;
the auditor of the regulated principal is taken to have ceased to
hold office at the time when the regulated principal became a
financial services licensee in relation to the regulated activities of a
regulated principal of that kind.
(4) If:
(a) there was no vacancy in the office of auditor of the regulated
principal at the end of the transition period in relation to the
person in the capacity of a regulated principal of that kind;
and
(b) the auditor of the regulated principal would be eligible to
continue to act as auditor of the financial services licensee;
and
(c) ASIC had previously consented to the removal or resignation
of the auditor under section 858 of the old Corporations Act
on a specified date after the regulated principal became a
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Division 15 Other provisions relating to conduct etc
Regulation 10.2.66
100 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
financial services licensee in relation to the regulated
activities of a regulated principal of that kind;
the auditor of the regulated principal is taken to have been
appointed under section 990B of the Act when the regulated
principal became a financial services licensee in relation to the
regulated activities of a regulated principal of that kind, and ASIC
is taken to have specified the date mentioned in paragraph (c)
under section 990H of the Act.
(5) If there was a vacancy in the office of the auditor of the regulated
principal mentioned in item 1 of the table in section 1430 of the
Act when the regulated principal became a financial services
licensee in relation to the regulated activities of a regulated
principal of that kind, the licensee must appoint an auditor within
14 days after the day on which the vacancy occurred in accordance
with subsections 990B(4) and (5) of the Act.
(6) Subregulation (5) does not apply to a financial services licensee in
relation to which an auditor has already been appointed under
section 990B of the Act.
10.2.66 Auditors: certain financial services licensees who held a
futures broker’s licence
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee who:
(a) is a regulated principal mentioned in item 3 of the table in
section 1430 of the Act; and
(b) whose financial services licence covers regulated activities
for a regulated principal of that kind; and
(c) is not a body corporate (other than a proprietary company) in
relation to which section 327 of the old Corporations Act
applies.
(2) If:
(a) there was no vacancy in the office of auditor of the regulated
principal at the end of the transition period in relation to the
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Corporations Regulations 2001 101
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
person in the capacity of a regulated principal of that kind;
and
(b) an auditor of the regulated principal would be eligible to
continue to act as auditor of the financial services licensee;
the auditor of the regulated principal is taken to have been
appointed under section 990B of the Act as auditor of the licensee
when the regulated principal became a financial services licensee
in relation to the regulated activities of a regulated principal of that
kind.
(3) If:
(a) there was no vacancy in the office of auditor of the regulated
principal at the end of the transition period in relation to the
person in the capacity of a regulated principal of that kind;
and
(b) the auditor of the regulated principal would not be eligible to
continue to act as auditor of the financial services licensee;
the auditor of the regulated principal is taken to have ceased to
hold office at the time when the regulated principal became a
financial services licensee in relation to the regulated activities of a
regulated principal of that kind.
(4) If:
(a) there was no vacancy in the office of auditor of the regulated
principal at the end of the transition period in relation to the
person in the capacity of a regulated principal of that kind;
and
(b) the auditor of the regulated principal would be eligible to
continue to act as auditor of the financial services licensee;
and
(c) ASIC had previously consented to the removal or resignation
of the auditor under section 1216 of the old Corporations Act
on a specified date after the regulated principal became a
financial services licensee in relation to the regulated
activities of a regulated principal of that kind;
the auditor of the regulated principal is taken to have been
appointed under section 990B of the Act when the regulated
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Regulation 10.2.67
102 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
principal became a financial services licensee in relation to the
regulated activities of a regulated principal of that kind, and ASIC
is taken to have specified the date mentioned in paragraph (c)
under section 990H of the Act.
(5) If there was a vacancy in the office of the auditor of a regulated
principal mentioned in item 3 of the table in section 1430 of the
Act when the regulated principal became a financial services
licensee in relation to the regulated activities of a regulated
principal of that kind, the licensee must appoint an auditor within
14 days after the day on which the vacancy occurred in accordance
with subsections 990B(4) and (5) of the Act.
(6) Subregulation (5) does not apply to a financial services licensee in
relation to which an auditor has already been appointed under
section 990B of the Act.
10.2.67 Auditor’s report in certain matters: financial services
licensee who formerly held a dealer’s licence
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee:
(a) who is a regulated principal mentioned in item 1 of the table
in section 1430 of the Act; and
(b) whose financial services licence covers regulated activities
for a regulated principal of that kind.
(2) Section 990K of the Act applies in relation to an auditor of a
financial services licensee mentioned in subregulation (1) as if
subsection 990K(2) required the auditor to give a report on any
matter that, in the opinion of the auditor:
(a) adversely affected the ability of the licensee to meet its
obligations as a securities dealer before the time that it
became a financial services licensee in relation to the
regulated activities mentioned in item 1 of the table in
section 1430 of the Act; or
(b) constitutes, or may constitute, a contravention of the
condition of the dealers licence held by the licensee before
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Regulation 10.2.68
Corporations Regulations 2001 103
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
the time that it became a financial services licensee in
relation to the regulated activities mentioned in item 1 of the
table in section 1430 of the Act; or
(c) constitutes, or may constitute, a contravention of section 856,
866, 867, 868, 869, 870, 871, 872 or 873, or Part 7.7 of the
old Corporations Act.
10.2.68 Auditor’s report on certain matters: financial services
licensee who formerly held a futures broker’s licence
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee:
(a) who is a regulated principal mentioned in item 3 of the table
in section 1430 of the Act; and
(b) whose financial services licence covers regulated activities
for a regulated principal of that kind.
(2) Section 990K of the Act applies in relation to an auditor of a
financial services licensee mentioned in subregulation (1) as if
subsection 990K(2) required the auditor to give a report on any
matter that, in the opinion of the auditor:
(a) adversely affected the ability of the licensee to meet its
obligations as a futures broker before the time that it became
a financial services licensee in relation to the regulated
activities mentioned in item 3 of the table in section 1430 of
the Act; or
(b) constitutes, or may constitute, a contravention of the
condition of the futures brokers licence held by the licensee
before the time that it became a financial services licensee in
relation to the regulated activities mentioned in item 3 of the
table in section 1430 of the Act; or
(c) constitutes, or may constitute, a contravention of
section 1209, 1213 or 1214 of the old Corporations Act.
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Regulation 10.2.69
104 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.69 Auditor’s report on certain matters: financial services
licensee who was formerly a registered insurance broker
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee:
(a) who is a regulated principal mentioned in item 5 of the table
in section 1430 of the Act; and
(b) whose financial services licence covers regulated activities
for a regulated principal of that kind.
(2) Section 990K of the Act applies in relation to an auditor of the
financial services licensee as if subsection 990K(2) required the
auditor to give a report on any matter that, in the opinion of the
auditor, constitutes, or may constitute, a contravention of
section 25C, 26 or 27 of the Insurance (Agents and Brokers) Act
1984.
10.2.70 Priority to clients’ orders: financial services licensee who
held a dealers licence
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee:
(a) who is a regulated principal mentioned in item 1 of the table
in section 1430 of the Act; and
(b) whose financial services licence covers regulated activities
for a regulated principal of that kind;
in relation to instructions to buy or sell securities (as defined for
the purposes of Part 7.4 of Chapter 7 of the old Corporations Act)
that were received by the licensee from a client who was not an
associate of the licensee before the end of the transition period in
relation to the person in the capacity of a regulated principal of that
kind.
(2) Section 844 of the old Corporations Act, and any associated
provisions, continue to apply in relation to the regulated principal
after the end of the transition period in relation to the person
entering into a transaction in securities of the same class as those to
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Regulation 10.2.71
Corporations Regulations 2001 105
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
which the instructions relates as if the person were a dealer within
the meaning of the old Corporations Act.
(3) This regulation applies until the regulated principal has complied
with the instructions.
10.2.71 Sequencing of instructions to deal through licensed markets:
financial services licensee who formerly held a futures
brokers licence
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee:
(a) who is a regulated principal mentioned in item 3 of the table
in section 1430 of the Act; and
(b) whose financial services licence covers regulated activities
for a regulated principal of that kind;
in relation to instructions to deal in a class of futures contracts
(within the meaning of section 72 of the old Corporations Act) that
were received by the licensee before the licensee became a
financial services licensee.
(2) Section 1266 of the old Corporations Act (other than
subsections 1266(7) and (8)), and any associated provisions,
continue to apply in relation to the regulated principal after the end
of the transition period in relation to the person entering into a
transaction in derivatives of the same class as those to which the
instructions relates as if the person were a futures broker within the
meaning of the old Corporations Act.
(3) This regulation applies until the regulated principal has complied
with the instructions.
10.2.72 Records relating to instructions to deal through licensed
markets: financial services licensee who held a futures
brokers licence
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee:
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Regulation 10.2.73
106 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) who is a regulated principal mentioned in item 3 of the table
in section 1430 of the Act; and
(b) whose financial services licence covers regulated activities
for a regulated principal of that kind;
in relation to instructions to deal in futures contracts (within the
meaning of section 72 of the old Corporations Act) that were
received by the licensee before the end of the transition period in
relation to the person in the capacity of a regulated principal of that
kind.
(2) Subsections 1266(7) and (8) of the old Corporations Act, and any
associated provisions, continue to apply in relation to the regulated
principal after the end of the transition period in relation to the
person in the capacity of a regulated principal of that kind as if the
person were a futures broker within the meaning of the old
Corporations Act.
10.2.73 Dealing with non-licensees: financial services licensee who
held a dealers licence
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee:
(a) who is a regulated principal mentioned in item 1 of the table
in section 1430 of the Act; and
(b) whose financial services licence covers regulated activities
for a regulated principal of that kind, in relation to a
transaction of sale or purchase of securities (as defined for
the purposes of Part 7.4 of the old Corporations Act) with a
non-dealer (within the meaning of the old Corporations Act)
that was entered into by the licensee, on the licensee’s own
account, before the end of the transition period (within the
meaning of subsection 1431(1) of the Act) that applied to the
person in the capacity of a regulated principal of that kind.
(2) Section 843 of the old Corporations Act, and any associated
provisions, continue to apply in relation to the regulated principal
after the end of the transition period in relation to the person in the
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Regulation 10.2.73A
Corporations Regulations 2001 107
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
capacity of a regulated principal of that kind as if the person were a
dealer within the meaning of the old Corporations Act.
10.2.73A Advertising for financial products
(1) For section 1444 of the Act, this regulation applies in relation to:
(a) a financial product; or
(b) a class of financial products that includes the financial
product;
for which a notice has been lodged with ASIC in accordance with
paragraph 1438(3)(b) of the Act.
(2) At any time in the period of 3 months ending immediately before
the date specified in the notice in accordance with
paragraph 1438(3)(b) of the Act, the issuer of the financial product
may decide to comply with Division 4 of Part 7.9 of the Act in
relation to the financial product.
(3) If the product issuer makes the decision mentioned in
subregulation (2):
(a) Division 4 of Part 7.9 of the Act applies in relation to the
financial product until the date specified in the notice; and
(b) section 734 of the old Corporations Act does not apply in
relation to the financial product.
Note: Under subsection 1438(5) of the Act, it is possible for the date
specified in accordance with paragraph 1438(3)(b) of the Act to be
changed.
(4) If the notice is lodged with ASIC less than 3 months before the
date specified in the notice in accordance with
paragraph 1438(3)(b) of the Act, subregulation (2) applies only
during the period:
(a) starting when the notice is lodged; and
(b) ending immediately before the date specified in the notice.
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Regulation 10.2.73B
108 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.73B Freezing accounts
(1) For section 1444 of the Act, this regulation applies if a person:
(a) holds or held a licence under Chapter 7 or 8 of the old
Corporations Act in relation to an activity; and
(b) the licence is revoked or suspended at any time before or
after the FSR commencement.
(2) Subsection 983A(3) of the Act applies to the person as if the
person were a person who holds, or has at any time held, an
Australian financial services licence that has been revoked or
suspended.
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Regulation 10.2.74
Corporations Regulations 2001 109
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 16—Product disclosure provisions for existing
products during transition period
10.2.74 Financial products in the same class
(1) For subsection 1410(2) of the Act, this regulation identifies what
constitutes a class of financial products for subsection 1438(1) of
the Act.
(2) Subject to subregulation (2A), a managed investment product is in
the same class as another financial product only if:
(a) the other financial product is a managed investment product;
and
(b) both products are interests in registered schemes that have
the same responsible entity; and
(c) at the FSR commencement, the responsible entity’s licence to
operate registered schemes would have authorised the
operation of both registered schemes.
(2A) A financial product that is an interest in a registered scheme is in
the same class as another financial product if the other financial
product is an interest in the same registered scheme.
(3) A derivative is in the same class as another financial product only
if:
(a) the other financial product is a derivative; and
(b) either:
(i) each of the derivatives was entered into or acquired on a
financial market; or
(ii) none of the derivatives was entered into or acquired on a
financial market.
(4) A life risk insurance product is in the same class as another
financial product only if the other financial product is a life risk
insurance product.
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Regulation 10.2.74
110 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(5) An investment life insurance product is in the same class as
another financial product only if the other financial product is an
investment life insurance product.
(6) An insurance product (other than a life risk insurance product or an
investment life product) is in the same class as another financial
product only if:
(a) the other financial product is an insurance product other than
a life risk insurance product or an investment life product;
and
(b) both products:
(i) provide the same kind of cover; or
(ii) provide cover in relation to the same kind of asset (for
example, a motor vehicle).
(7) A superannuation interest is in the same class as another financial
product only if the other financial product is a superannuation
interest.
Note: Superannuation interest is defined in subsection 10(1) of the SIS Act.
(8) An RSA product is in the same class as another financial product
only if the other financial product is an RSA product.
(9) A deposit product is in the same class as another financial product
only if the other financial product is a deposit product.
(9A) A facility for making non-cash payments that is related to a deposit
product is in the same class as another financial product only if the
other financial product is a facility for making non-cash payments
that is related to a deposit product.
Note: Non-cash payments are explained in section 763D of the Act.
(9B) In this regulation:
deposit product means a deposit-taking facility made available by
an ADI (within the meaning of the Banking Act 1959) in the course
of its banking business (within the meaning of that Act), other than
an RSA.
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Regulation 10.2.75
Corporations Regulations 2001 111
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(10) A financial product mentioned in paragraph 764A(1)(k) of the Act
is in the same class as another financial product only if the other
financial product is a financial product mentioned in
paragraph 764A(1)(k) of the Act.
(11) A warrant is in the same class as another financial product only if
the other financial product is a warrant.
10.2.75 References to financial services licensee
(1) For section 1444 of the Act, a reference in Part 7.9 of the Act to a
financial services licensee includes a regulated principal.
(2) Subregulation (1) also applies to section 761E of the Act.
(3) A reference in paragraph 761E(6)(d) of the Act to an authorised
representative includes a representative of a regulated principal.
(4) A reference in paragraph (d) of the definition of regulated person
in section 1011B of the Act to an authorised representative
includes a representative of a regulated principal.
(5) A reference in paragraph 1015C(3)(b) of the Act to an authorised
representative includes a representative of a regulated principal.
(6) A reference in paragraph 1017A(1)(c) of the Act to an authorised
representative includes a representative of a regulated principal.
(7) Subregulations (1) to (6) cease to apply in relation to the regulated
principal and the authorised representative at the end of the
transition period in relation to the regulated principal.
10.2.76 References to retail client
(1) For section 1444 of the Act, this regulation applies if a person
acquired a financial product before the FSR commencement.
(2) Subject to subregulation (3), the person is taken to have acquired
the financial product as a retail client.
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Division 16 Product disclosure provisions for existing products during transition period
Regulation 10.2.77
112 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) The person is taken to have acquired the product as a wholesale
client if:
(a) the person would not have acquired the product as a retail
client if the product had been acquired at the FSR
commencement; or
(b) the person would not have acquired the product as a retail
client if the Act had applied at the time when the product was
acquired.
10.2.77 References to issue of product
For section 1444 of the Act, a reference in subsection 1438(1) of
the Act to financial products in a class of products that are first
issued by a person after the FSR commencement does not include
financial products in a class of products if the person who is, or
will be, the product issuer first made an offer to issue a financial
product in that class of products before the FSR commencement.
10.2.78 References to Product Disclosure Statement: offer
previously accepted
(1) For section 1444 of the Act, this regulation applies:
(a) if a person:
(i) made an offer to the issuer or seller of a financial
product, before Division 2 of Part 7.9 of the Act began
to apply to the financial product, that involves the
person, or another person, acquiring the financial
product; or
(ii) accepted an offer by the issuer or seller of a financial
product, before Division 2 of Part 7.9 of the Act began
to apply to the financial product, to issue the financial
product to the person or the other person; and
(b) if the acquisition is not completed before Division 2 of
Part 7.9 of the Act began to apply to the financial product.
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Regulation 10.2.79
Corporations Regulations 2001 113
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) The legislation mentioned in section 1440 of the Act in relation to
the kind of financial product continues to apply in relation to the
financial product to the extent necessary to allow the financial
product to be acquired.
(3) Division 2 of Part 7.9 of the Act does not apply in relation to the
financial product to the extent necessary to allow the financial
product to be acquired.
10.2.79 References to Product Disclosure Statement: managed
investment products
For section 1444 of the Act, a reference in the following provisions
of the Act to a Product Disclosure Statement includes a disclosure
document under Chapter 6D of the old Corporations Act:
(a) paragraph 1012C(6)(b);
(b) paragraph 1012C(8)(c);
(c) subparagraph 1012D(2)(b)(i).
10.2.80 Lodgment of Product Disclosure Statement after lodgment
of notice
For section 1444 of the Act, if a person lodges with ASIC a notice
under paragraph 1438(3)(b) of the Act:
(a) section 1015B of the Act is taken to authorise the person to
lodge a Product Disclosure Statement before the date of
effect specified in the notice; and
(b) the period mentioned in section 1016B of the Act is taken to
start in relation to the person when the person lodges the
Product Disclosure Statement.
10.2.81 Ongoing disclosure
For section 1444 of the Act, if:
(a) the issuer of a financial product would have had an obligation
to notify the holder of a financial product of a change or
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Regulation 10.2.82
114 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
event mentioned in subsection 1017B(1A) of the Act if
Part 7.9 of the Act had applied at all times to the product; and
(b) the issuer would have been exempt from the obligation
because regulation 7.9.16G would have applied to the issuer
in relation to the product if Part 7.9 of the Act had applied at
all times to the product;
regulation 7.9.16G applies to the issuer in relation to the product
during the transition period for the product.
10.2.82 Money received for financial product before the product is
issued: general
(1) For section 1444 of the Act, this regulation applies if:
(a) money is paid to a person before the FSR commencement to
acquire a financial product (whether the money is paid by the
person who is to acquire the financial product or by another
person); and
(b) the person holds the money immediately after the FSR
commencement.
(2) The following provisions of the relevant old legislation continue to
apply in relation to the person and the money:
(a) section 722 of the old Corporations Act, and any associated
provisions;
(b) Division 5 of Part 19 of the SIS Act, and any associated
provisions;
(c) Division 6 of Part 5 of the RSA Act, and any associated
provisions;
(d) section 37 of the Insurance (Agents and Brokers) Act 1984
(other than subsection 37(2)), and any associated provisions.
(3) Section 1017E of the Act does not apply in relation to the person
and the money.
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Regulation 10.2.83
Corporations Regulations 2001 115
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.83 Money received for financial product before the product is
issued: requirement before application of subsection 37(2)
of Insurance (Agents and Brokers) Act 1984
Section 37 of the Insurance (Agents and Brokers) Act 1984 (other
than subsection 37(2)) does not apply in relation to money to
which section 1017E of the Act applies unless one of the events
mentioned in subsection 1017E(3) of the Act occurs.
10.2.84 Confirmation of transactions
(1) For section 1444 of the Act, this regulation applies in relation to a
financial product to which:
(a) section 1017F of the Act applies; and
(b) subsection 37(2) of the Insurance (Agents and Brokers) Act
1984 would, but for subregulation (2), apply after the FSR
commencement.
(2) Subsection 37(2) of the Insurance (Agents and Brokers) Act 1984
does not apply in relation to the financial product.
10.2.85 Dispute resolution requirements: financial products
(1) For section 1444 of the Act, this regulation applies in relation to
financial products (the relevant financial products) other than
financial products that are, or have been, available for acquisition
at a time at which Division 2 of Part 7.9 of the Act applies to the
financial products.
(2) A reference in section 1017G of the Act to financial products that
are, or have been, available for acquisition does not include the
relevant financial products.
10.2.86 Dispute resolution requirements: regulated principals
(1) For section 1444 of the Act, if:
(a) a regulated principal in relation to a financial product would,
but for this regulation, be required by subsection 1017G(1) of
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Regulation 10.2.87
116 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
the Act to have a dispute resolution system for the financial
product; and
(b) the issue or sale of the financial product as mentioned in
paragraph 1017G(1)(b) of the Act is within the regulated
activities of the regulated principal;
section 1017G of the Act does not apply to the regulated principal
in relation to the financial product.
(2) Subregulation (1) ceases to apply in relation to the regulated
principal at the end of the transition period in relation to the
regulated principal.
10.2.87 Dispute resolution requirements: no external dispute
resolution scheme
For section 1444 of the Act, paragraph 1017G(2)(b) of the Act
does not apply in relation to a particular activity of, or a particular
financial product offered by, an issuer or a regulated person at any
time within 2 years after the FSR commencement unless, at that
time:
(a) there is an external dispute resolution scheme in existence
that satisfies subparagraphs 1017G(2)(b)(i) and (ii) of the
Act; and
(aa) the external dispute resolution scheme applies to that activity
or financial product; and
(b) the external dispute resolution scheme has been in existence
for a period of at least 3 months.
10.2.87A Meaning of financial product advice: exempt document or
statement
(1) For subsection 1409(1) of the Act, this regulation applies to a
document or statement about a financial product during the
transition period that ceases on the earlier of:
(a) the date that Part 7.9 of the Act applies to the regulated
person; and
(b) 2 years after the FSR commencement.
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Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Product disclosure provisions for existing products during transition period Division 16
Regulation 10.2.87A
Corporations Regulations 2001 117
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) The following documents and statements are prescribed under
paragraph (b) of the definition of exempt document or statement in
subsection 766B(9) of the Act:
(a) in relation to an interest in a managed investment scheme to
which Division 2 of Part 7.9 of the Act does not apply—a
disclosure document lodged under Chapter 6D of the Act;
(b) in relation to a derivative to which Division 2 of Part 7.9 of
the Act does not apply—information mentioned in
section 1210 of the old Corporations Act;
(c) in relation to a superannuation product to which Division 2 of
Part 7.9 of the Act does not apply—information mentioned in
section 153 or 159 of the SIS Act or Part 2 of the SIS
Regulations as in force immediately before the FSR
commencement;
(d) in relation to an RSA product to which Division 2 of Part 7.9
of the Act does not apply—information mentioned in
section 56 of the RSA Act, as in force immediately before the
FSR commencement;
(e) in relation to an investment life insurance product or a life
risk insurance product—a document or statement that
contains information given in accordance with Circular G.I.1,
issued by the Insurance and Superannuation Commission in
February 1996.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 17 Arrangements relating to enforcement of matters by ASIC
Regulation 10.2.88
118 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 17—Arrangements relating to enforcement of
matters by ASIC
10.2.88 Definition
In this Division:
amended Corporations Act means the Act as in force after the FSR
commencement.
10.2.89 Financial services law
For section 761A of the Act, a provision of the relevant old
legislation is not a financial services law unless the operation of the
provision is expressly preserved or applied (with or without
modification) in relation to the matter by a provision of these
Regulations (other than this regulation).
10.2.90 ASIC may have regard to prior conduct and events
(1) For a provision of Part 7.6 of the Act mentioned in
subregulation (2), ASIC is not precluded from having regard to any
of the following matters in exercising its powers and performing its
functions under the provision:
(a) a matter that arose at any time before the FSR
commencement;
(b) a matter that arose during the transition period;
(c) a matter that arose before a person becomes subject to the
amended Corporations Act in relation to:
(i) all of the person’s business; or
(ii) a particular part of the person’s business.
(2) The provisions are:
(a) paragraph 913B(1)(b); and
(b) paragraph 913B(1)(c); and
(c) subsection 913B(2); and
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Arrangements relating to enforcement of matters by ASIC Division 17
Regulation 10.2.91
Corporations Regulations 2001 119
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(d) subsection 913B(3); and
(e) paragraph 915C(1)(a); and
(f) paragraph 915C(1)(aa); and
(g) paragraph 915C(1)(b); and
(h) paragraph 920A(1)(b); and
(i) paragraph 920A(1)(ba); and
(j) paragraph 920A(1)(e); and
(k) paragraph 920A(1)(f); and
(l) regulations made for paragraph 913B(1)(d); and
(m) subsection 912C(1); and
(n) subsection 914A(1); and
(o) paragraphs 915B(1)(a), (b), (c) and (d); and
(p) paragraphs 915B(2)(a), (b) and (c); and
(q) paragraphs 915B(3)(a), (b), (c) and (d); and
(r) paragraphs 915B(4)(a), (b) and (c); and
(s) paragraph 915C(1)(d); and
(t) paragraphs 915C(2)(a) and (b); and
(u) subsection 916G(1); and
(v) paragraph 920A(1)(bb); and
(w) paragraph 920A(1)(c); and
(x) subsection 920D(1).
10.2.91 Power to act in relation to relevant old legislation
(1) This regulation applies if an instrument or another matter continues
in force, after the FSR commencement, in accordance with the
relevant old legislation that relates to the instrument or matter.
Examples:
1 A licence.
2 A licence condition.
3 A suspension of a registration.
Note: The relevant old legislation includes the old Corporations Act,
associated provisions and, in some cases, other legislation such as the
Insurance (Agents and Brokers) Act 1984.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 17 Arrangements relating to enforcement of matters by ASIC
Regulation 10.2.91
120 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) To avoid doubt:
(a) ASIC may exercise any of the powers, and perform any of
the functions, that ASIC had immediately before the FSR
commencement in relation to:
(i) a person to whom the instrument or matter applies; and
(ii) a representative of a person mentioned in
subparagraph (i); and
(iii) any other person (including a person described in a
capacity that came into existence, or in relation to an
event that occurred, after the FSR commencement); and
(b) paragraph (a) includes the power:
(i) to issue an instrument; and
(ii) to execute an instrument.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Specific kinds of documents in existence before FSR commencement Division 18
Regulation 10.2.92
Corporations Regulations 2001 121
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 18—Specific kinds of documents in existence
before FSR commencement
10.2.92 Banning orders made before FSR commencement
(1) On and after the FSR commencement, a banning order made
before the FSR commencement under Division 5 of Part 7.3, or
Division 5 of Part 8.3, of the old Corporations Act (the relevant
Division):
(a) continues in force to the extent practicable to allow it to
apply to conduct or another matter:
(i) as it is described on and after the FSR commencement;
or
(ii) as it is regulated on and after the FSR commencement;
and
(b) is taken to be a banning order made under:
(i) the relevant Division of the old Corporations Act; and
(ii) section 920A of the Act.
(2) On and after the FSR commencement, the relevant Division of the
old Corporations Act, and associated provisions, continue to apply
to the extent necessary to allow the banning order to continue in
force.
(3) For subregulation (2), nothing in the relevant old legislation
(including the Australian Securities and Investments Commission
Act 2001) prevents ASIC from:
(a) drafting or amending the terms of a banning order; or
(b) taking any other action permitted by Division 8 of Part 7.6 of
the Act;
for the purpose of ensuring that the banning order has the same
effect under the amended Corporations Act as it had under the old
Corporations Act, or an effect equivalent to the effect it had under
the old Corporations Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 18 Specific kinds of documents in existence before FSR commencement
Regulation 10.2.93
122 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.93 Banning orders made under relevant old legislation after
FSR commencement
(1) On and after the FSR commencement, Division 5 of Part 7.3, or
Division 5 of Part 8.3, of the old Corporations Act (the relevant
Division), and associated provisions, continue to apply to the
extent necessary to allow a banning order to be made or enforced
against a person in relation to:
(a) conduct or another matter that occurred before the FSR
commencement; or
(b) conduct or another matter that:
(i) occurred after the FSR commencement; and
(ii) is regulated in accordance with section 1432 or 1436A
of the Act.
(2) A banning order made in relation to conduct or another matter
mentioned in subregulation (1) is taken to be a banning order made
under:
(a) the relevant Division of the old Corporations Act; and
(b) section 920A of the Act.
(3) Subregulation (1) does not prevent ASIC from making a banning
order under section 920A of the Act in relation to the same conduct
or matter in relation to which a banning order is made under the
relevant Division of the old Corporations Act.
(4) For subregulation (3), nothing in the Act, or the relevant old
legislation (including the Australian Securities and Investments
Commission Act 2001), prevents ASIC from:
(a) drafting or amending the terms of a banning order; or
(b) taking any other action that was permitted by the relevant
Division of the old Corporations Act before the FSR
commencement;
for the purpose of ensuring that the banning order has the same
effect under the amended Corporations Act as it had under the old
Corporations Act, or an effect equivalent to the effect it had under
the old Corporations Act.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Specific kinds of documents in existence before FSR commencement Division 18
Regulation 10.2.94
Corporations Regulations 2001 123
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.94 Banning orders made under the Act after FSR
commencement
(1) On and after the FSR commencement, Division 8 of Part 7.6 of the
Act is taken to authorise the making of a banning order in relation
to conduct or another matter that is or may be regulated under the
relevant old legislation.
(2) Subregulation (1) applies only to the extent that the relevant old
legislation would have permitted the making of an order in similar
terms in relation to the conduct or other matter.
(3) A banning order made in relation to conduct or another matter
mentioned in subregulation (1) is taken to be a banning order made
under:
(a) Division 5 of Part 7.3, or Division 5 of Part 8.3, of the old
Corporations Act (the relevant Division); and
(b) section 920A of the Act.
(4) Subregulation (1) does not prevent ASIC from making a banning
order under the relevant Division of the old Corporations Act in
relation to the same conduct or matter in relation to which a
banning order is made under Division 8 of Part 7.6 of the Act.
(5) For subregulation (4), nothing in the Act, or the relevant old
legislation (including the Australian Securities and Investments
Commission Act 2001), prevents ASIC from:
(a) drafting or amending the terms of a banning order; or
(b) taking any other action permitted by Division 8 of Part 7.6 of
the Act;
for the purpose of ensuring that the banning order has the same
effect under the amended Corporations Act as it had under the old
Corporations Act, or an effect equivalent to the effect it had under
the old Corporations Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 18 Specific kinds of documents in existence before FSR commencement
Regulation 10.2.94A
124 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.94A Prohibitions under paragraphs 827(1)(d) and 1192(1)(d) of
the old Corporations Act made before FSR
commencement
(1) For section 1444 of the Act, on and after the FSR commencement,
a prohibition under paragraph 827(1)(d) or 1192(1)(d) of the old
Corporations Act made before the FSR commencement:
(a) continues in force to the extent practicable to allow it to
apply to conduct or another matter:
(i) as it is described on and after the FSR commencement;
or
(ii) as it is regulated on and after the FSR commencement;
and
(b) is taken to be a prohibition made under paragraph 827(1)(d)
or 1192(1)(d) of the old Corporations Act.
(2) On and after the FSR commencement, paragraph 827(1)(d) or
1192(1)(d) of the old Corporations Act, and associated provisions,
continue to apply to the extent necessary to allow the prohibition to
continue in force.
(3) For subregulation (2), nothing in the relevant old legislation
(including the Australian Securities and Investments Commission
Act 2001) prevents ASIC from drafting or amending the terms of a
prohibition for the purpose of ensuring that the prohibition has the
same effect under the amended Corporations Act as it had under
the old Corporations Act, or an effect equivalent to the effect it had
under the old Corporations Act.
10.2.94B Prohibitions under paragraphs 827(1)(d) and 1192(1)(d) of
the old Corporations Act made after FSR commencement
(1) For section 1444 of the Act, on and after the FSR commencement,
paragraphs 827(1)(d) and 1192(1)(d) of the old Corporations Act,
and associated provisions, continue to apply to the extent necessary
to allow a prohibition to be made or enforced against a person in
relation to:
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Specific kinds of documents in existence before FSR commencement Division 18
Regulation 10.2.95
Corporations Regulations 2001 125
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) conduct or another matter that occurred before the FSR
commencement; or
(b) conduct or another matter that:
(i) occurred after the FSR commencement; and
(ii) is regulated in accordance with section 1432 or 1436A
of the Act.
(2) A prohibition made in relation to conduct or another matter
mentioned in subregulation (1) is taken to be a prohibition made
under paragraph 827(1)(d) or 1192(1)(d) of the old Corporations
Act.
(3) For subregulation (2), nothing in the relevant old legislation
(including the Australian Securities and Investments Commission
Act 2001) prevents ASIC from drafting or amending the terms of a
prohibition for the purpose of ensuring that the prohibition has the
same effect under the amended Corporations Act as it had under
the old Corporations Act, or an effect equivalent to the effect it had
under the old Corporations Act.
10.2.95 Undertakings
(1) This regulation applies if:
(a) an undertaking was in force under section 93AA or 93A of
the Australian Securities and Investments Commission Act
2001 immediately before the FSR commencement; and
(b) the conduct or matter to which the undertaking relates:
(i) is not described in the same terms in the amended
Corporations Act; or
(ii) is regulated in a different way under the amended
Corporations Act.
(2) On and after the FSR commencement, the undertaking continues in
force, to the extent practicable to allow it to apply in relation to the
conduct or matter:
(a) as it is described on and after the FSR commencement; and
(b) as it is regulated on and after the FSR commencement.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 18 Specific kinds of documents in existence before FSR commencement
Regulation 10.2.96
126 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) For subregulation (2), nothing in the relevant old legislation
(including the Australian Securities and Investments Commission
Act 2001) prevents ASIC from:
(a) drafting or amending the terms of an undertaking; or
(b) issuing a notice to a person; or
(c) taking any other action permitted by section 93AA or 93A of
that Act;
for the purpose of ensuring that the undertaking has the same effect
under the amended Corporations Act as it had under the old
Corporations Act, or an effect equivalent to the effect it had under
the old Corporations Act.
10.2.96 Registers in existence before FSR commencement
(1) Subject to subregulation (3), this regulation applies if:
(a) a register was in existence, or was required to be in existence,
under the relevant old legislation:
(i) before the FSR commencement; or
(ii) after the FSR commencement, but before the amended
Corporations Act began to apply to a person’s activities;
and
(b) the register:
(i) is required to be maintained, after the FSR
commencement, by a law other than this regulation; or
(ii) would have been required to be maintained, after the
FSR commencement, by a provision of the relevant old
legislation if the provision had continued in operation
after the FSR commencement.
(2) To avoid doubt:
(a) the person responsible for maintaining the register may
exercise any of the powers, and perform any of the functions,
that the person had immediately before the FSR
commencement in relation to:
(i) a person whose details appear in the register; and
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Specific kinds of documents in existence before FSR commencement Division 18
Regulation 10.2.97
Corporations Regulations 2001 127
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) any other person to whom the register relates (including
a person described in a capacity that came into existence
after the FSR commencement); and
(b) paragraph (a) includes the power:
(i) to amend the register; and
(ii) to include new information in the register; and
(c) this regulation does not impose any obligation on the person
to exercise any of the powers or perform any of the functions.
(3) The person must maintain the register for the same period of time,
and in the same manner, that would have been required if the
relevant old legislation had continued in force.
10.2.97 Registers created after FSR commencement
(1) This regulation applies to a register that:
(a) ASIC is required to create after the FSR commencement
under paragraph 922A(2)(b) or (c) of the Act; and
(b) relates to a matter for which:
(i) ASIC had responsibility before the FSR commencement
(including a matter that was described in a different way
before the FSR commencement); and
(ii) a register (an old register) was in existence under the
relevant old law before the FSR commencement.
(2) ASIC must include in the new register as much of the information
in the old register as ASIC considers appropriate.
10.2.98 Registers, documents and things kept before FSR
commencement
(1) For section 1444 of the Act, this regulation applies if:
(a) a person was required, under a provision of the relevant old
legislation, to keep a register, document or other thing for a
specified period; and
(b) the period had not ended before the FSR commencement.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 18 Specific kinds of documents in existence before FSR commencement
Regulation 10.2.98A
128 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) On and after the FSR commencement, the provision and the period
are taken to continue in force to the extent necessary to require the
person to keep the register, document or thing for the specified
period.
10.2.98A Licenses, registration, etc in force before FSR
commencement
(1) For section 1444 of the Act, this regulation applies if:
(a) a person held a licence (the old licence) under the old
Corporations Act immediately before the FSR
commencement in relation to an activity; and
(b) the person holds a financial services licence that applies to
the same activity; and
(c) ASIC identifies a matter that occurred, before the person held
a financial services licence in relation to the activity, in
relation to which ASIC would have had the power under the
old Corporations Act:
(i) to suspend or cancel the old licence; or
(ii) to impose conditions on the old licence; or
(iii) to vary or revoke a condition to which the old licence
was subject.
(2) On and after the FSR commencement, ASIC’s power under the Act
to suspend or cancel the financial services licence mentioned in
paragraph (1)(b) is taken to include the power to suspend or cancel
the financial services licence:
(a) in order to achieve an outcome that ASIC could have
achieved by the exercise of the power mentioned in
paragraph (1)(c); and
(b) in any way that was authorised under the old Act.
(3) On and after the FSR commencement, ASIC’s power under the Act
to impose conditions on the financial services licence mentioned in
paragraph (1)(b) is taken to include the power to impose
conditions:
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Specific kinds of documents in existence before FSR commencement Division 18
Regulation 10.2.98A
Corporations Regulations 2001 129
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) in order to achieve an outcome that ASIC could have
achieved by the exercise of the power mentioned in
paragraph (1)(c); and
(b) in any way that was authorised under the old Act.
(4) On and after the FSR commencement, ASIC’s power under the Act
to vary or revoke a condition to which the financial services
licence mentioned in paragraph (1)(b) is taken to include the power
to vary or revoke a condition:
(a) in order to achieve an outcome that ASIC could have
achieved by the exercise of the power mentioned in
paragraph (1)(c); and
(b) in any way that was authorised under the old Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 19 Extension of limitation periods
Regulation 10.2.99
130 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 19—Extension of limitation periods
10.2.99 Application of items 111 and 121 of the Financial Services
Reform (Consequential Provisions) Act 2001 to
amendments of the Australian Securities and Investments
Commission Act 2001
(1) This regulation applies in relation to:
(a) the amendment of subsection 12GF(2) of the Australian
Securities and Investments Commission Act 2001 made by
item 111 of Schedule 1 to the Financial Services Reform
(Consequential Provisions) Act 2001; and
(b) the amendment of subsection 12GM(5) of the Australian
Securities and Investments Commission Act 2001 made by
item 121 of Schedule 1 to the Financial Services Reform
(Consequential Provisions) Act 2001.
(2) The amendment applies in relation to conduct engaged in on or
after the commencement of that item.
(3) The amendment also applies in relation to conduct engaged in
before the commencement of that item, but only if the period that:
(a) relates to the conduct; or
(b) applied under subsection 12GF(2) or 12GM(5) before the
commencement of that item;
had not ended when that item commenced.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Rules for dealing with liability during transition period Division 20
Regulation 10.2.100
Corporations Regulations 2001 131
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 20—Rules for dealing with liability during
transition period
10.2.100 Application of Division 20
(1) This Division sets out rules for determining the liability of a
responsible person under:
(a) the relevant old legislation; or
(b) the amended Corporations Act;
in relation to conduct engaged in, during the transition period, by a
representative in respect of more than 1 principal.
Note: The Corporations Act 2001 has been amended by the Financial
Services Reform (Consequential Provisions) Act 2001. The
Consequential Provisions Act includes a two-year transition period
during which certain conduct, described in Part 10.2 of the
Corporations Act, will be regulated under either the legal regime in
force before the amendments or under the new version of the
Corporations Act.
If a person continues a business during the transition period, and is to
be regulated under the legal regime in force before the amendments,
the person will be subject to the relevant law that regulated (or would
have regulated) their conduct before the amendments. This is referred
to in section 1430 of the Corporations Act as the ‘relevant old
legislation’.
Therefore, after the commencement of the amendments, a person may
be a principal under either or both legal regime. This Division deals
with the liability of either kind of principal in relation to a client and
the conduct of a representative of that principal.
(2) Nothing in this Division is intended to apply a provision of the
relevant old legislation to a person that is not a regulated principal.
10.2.101 Definitions for Division 20
In this Division:
FSR principal means a person to whom an Australian financial
services licence has been granted.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 20 Rules for dealing with liability during transition period
Regulation 10.2.102
132 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
non-FSR principal means any person who provides financial
services as a principal, and who is not an FSR principal during the
transitional period, including the following persons:
(a) an insurer to which paragraph 1436A(2)(d) of the Act applies
(in relation to activities and insurance agents to which
section 1436A of the Act applies);
(b) a regulated principal (in relation to regulated activities to
which section 1431 of the Act applies).
principal means an FSR principal or a non-FSR principal.
representative means a person who:
(a) provides financial services on behalf of a principal; or
(b) otherwise acts on behalf of a principal;
under the relevant old legislation, the amended Corporations Act or
under any other authority.
responsible person means any person who is liable, as a principal
or a representative, for conduct in relation to the provision of a
financial service under any law.
transition period means:
(a) the period of 2 years after the FSR commencement; or
(b) if the person is subject to an exemption under section 1437 of
the Act in respect of an activity, the period starting at the
FSR commencement and ending on the earlier of:
(i) the person becoming regulated under the amended
Corporations Act in respect of the activity; and
(ii) the end of the period of the exemption in respect of the
activity.
10.2.102 Liability of responsible person: general rules
(1) If, at the time the conduct is engaged in, the person who has
engaged in the conduct is not the representative of an FSR
principal, the liability (if any) for the conduct is to be determined
in accordance with:
(a) the relevant old legislation; or
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Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Rules for dealing with liability during transition period Division 20
Regulation 10.2.102
Corporations Regulations 2001 133
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) any requirement or law, other than the relevant old
legislation, that applies to the conduct; or
(c) any provisions of the amended Corporations Act that apply to
the conduct.
Note: A number of representatives in the financial services industry
currently act:
(a) on behalf of more than one principal; or
(b) as a principal in some circumstances but as a representative in others; or
(c) in both capacities.
On this basis, it is possible that different liability regimes
simultaneously apply to the representative, depending on the kind of
conduct. These regimes include:
(a) the Corporations Act as in force before the FSR commencement; and
(b) the Corporations Act as in force after the FSR commencement; and
(c) the Australian Securities and Investments Commission Act 2001; and
(d) the Insurance (Agents and Brokers) Act 1984; and
(e) the common law.
(2) If, at the time the conduct is engaged in, each principal in respect
of which the representative acts is an FSR principal, the liability of
each person is to be determined in accordance with the amended
Corporations Act as in force from time to time after the FSR
commencement.
Note: The main liability provisions of the Act are in Division 6 of Part 7.6.
(3) Subregulations (4) and (5) apply if, at the time the conduct is
engaged in by a person:
(a) the person is a representative in respect of more than 1
principal, and
(b) at least 1 of those principals is an FSR principal; and
(c) at least 1 of those principals is a non-FSR principal.
(4) If, as a result of the conduct of the representative, 1 or more of the
principals issues, transfers, varies, or disposes of a financial
product:
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 20 Rules for dealing with liability during transition period
Regulation 10.2.103
134 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) each of those principals is jointly and severally liable for the
conduct of the representative; and
(b) the nature of the liability is to be determined in accordance
with the relevant law that applies to the conduct under the
relevant legal regime under which the particular principal is
operating.
(5) If subregulation (4) does not apply:
(a) the liability for the conduct is to be determined in accordance
with the relevant law that applies to the conduct; and
(b) section 917B and subsection 917C(4) of the Act apply in
relation to the liability of an FSR principal only if the
conduct is in a class of financial services that the FSR
principal has authorised the representative to provide.
10.2.103 Conduct by a person who operates as representative and
principal
(1) Despite anything else in this Division, or in regulation 10.2.42, if:
(a) the conduct of a representative causes a liability, loss,
damage or a similar consequence to arise; and
(b) at the time the conduct is engaged in, the representative is
also a principal that is authorised or permitted under any law
to provide financial services in the class of financial services
to which the conduct relates;
the representative is liable (whether as a principal or as a
representative) to the extent that the law under which the
representative provides the relevant financial services makes the
representative liable.
(2) Despite regulation 10.2.42, if:
(a) the conduct of a representative causes a liability, loss,
damage or a similar consequence to arise; and
(b) the representative is also a principal that is authorised or
permitted to provide financial services in the same class of
financial services as the financial service to which the
conduct relates; and
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Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Rules for dealing with liability during transition period Division 20
Regulation 10.2.104
Corporations Regulations 2001 135
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) at the time the conduct occurred, the representative’s
principal or principals:
(i) had authorised the representative to provide the same
class of financial services; and
(ii) are liable in respect of the conduct;
the representative, and the principal or principals, are jointly and
severally liable in accordance with the law under which they are
liable, to the extent that the same or similar liability exists.
Note: Under regulation 10.2.42, there are some restrictions on a person who
acts both as an authorised representative and as a regulated principal
in respect of the same activities.
For example, if a principal is liable to a person in respect of an amount
of money ($X), and the representative is also liable in respect of an
amount of money ($X + $Y) in respect of the same conduct, both of
them will be jointly and severally liable for $X, but the representative
will be liable to pay $Y.
10.2.104 Operation of regulations 10.2.102 and 10.2.103
(1) Subject to subregulations (2) and (3), and without limiting any
right or liability of a person (the client), if the effect of
regulations 10.2.102 and 10.2.103 is that different rights or
remedies are available to different clients in relation to conduct
during the transition period:
(a) to the extent that the rights or remedies available to a client
against a responsible person are identical, or substantially
identical, to some or all of the rights or remedies available
against another responsible person for the same or related
conduct, each responsible person is taken to be jointly and
severally liable as between the responsible person and the
client in respect of the client’s exercise of the right, or in
respect of the provision of the remedy, to the extent that the
law makes them liable; and
(b) to the extent that the rights or remedies available to a client
against different responsible persons in respect of conduct are
not identical or substantially identical, a client who may
exercise a right or obtain a remedy against a responsible
person is entitled to exercise the right or obtain the remedy:
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 20 Rules for dealing with liability during transition period
Regulation 10.2.104
136 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(i) under each law applicable at the time the conduct is
engaged in; and
(ii) against each responsible person against whom the right
may be exercised or the remedy obtained.
Example: If, as a result of the same conduct, Person A is liable to a client in
respect of an amount of money ($X), and Person B is also liable in
respect of an amount of money ($X + $Y), both of them will be jointly
and severally liable for $X, but only Person B will be liable to pay $Y.
(2) Subregulation (1) does not have the effect that:
(a) a particular person is liable more than once in relation to the
conduct in respect of the same or a similar remedy; or
(b) a person is entitled to recover more than the amount of any
loss or damage that the person has suffered in relation to the
conduct.
(3) Nothing in this Division is intended to reduce or otherwise affect
the liability of any person in relation to the person’s own conduct,
whether or not:
(a) the person is a principal or a representative; and
(b) the person is authorised to do a particular thing under any
licence, registration, authorisation or other authority.
(4) Nothing in this Division is intended to reduce or otherwise affect
the liability of a principal that acts under a provision of the relevant
old legislation.
(5) Nothing in this Division is intended to reduce or otherwise affect
the liability of a person for:
(a) any offence imposed by any law; or
(b) any other criminal or civil penalty imposed under any law.
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Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Title and transfer Division 21
Regulation 10.2.105
Corporations Regulations 2001 137
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 21—Title and transfer
10.2.105 Loss or destruction of certificates
(1) This regulation applies if:
(a) an application was made to a company, under section 1089 of
the old Corporations Act, for the issue of a duplicate
certificate or document of title regarding shares, debentures
or interests in a managed investment scheme; and
(b) the company did not issue a duplicate certificate or other
document of title to the shares, debentures or interests before
the FSR commencement.
(2) Section 1089 of the old Corporations Act, and any associated
provisions, continue to apply to the extent necessary to allow the
company to deal with the application.
Note: Subsections 1089(1) and (3) of the old Corporations Act included
important requirements relating to the application, including time
limits for compliance with the application.
10.2.106 Instrument of transfer
(1) This regulation applies if:
(a) the personal representative of a dead holder for section 1091
of the old Corporations Act completed all the steps necessary
to require a company:
(i) to register a transfer; and
(ii) to pay to the personal representative any dividends or
money accrued in respect of the share, debenture or
interest being transferred up to the time of execution of
the transfer; and
(b) the company:
(i) did not register the transfer before the FSR
commencement; or
(ii) did not make some or all of the payment before the FSR
commencement.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 21 Title and transfer
Regulation 10.2.107
138 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) Section 1091 of the old Corporations Act, and any associated
provisions, continue to apply to the extent necessary to allow the
company to register the transfer and make the payment.
10.2.107 Trustee etc may be registered as owner of shares
(1) This regulation applies if:
(a) a person began to hold shares in a proprietary company as
trustee for, or otherwise on behalf of or on account of, a body
corporate before the FSR commencement; and
(b) the person did not serve on the proprietary company the
notice required under subsection 1091C(11) of the old
Corporations Act before the FSR commencement; and
(c) the 1 month period mentioned in that subsection had not
expired before the FSR commencement.
(2) Section 1091C of the old Corporations Act, and any associated
provisions, continue to apply to the extent necessary to allow for:
(a) the person to serve the notice within the 1 month period; and
(b) the consequences of not serving the notice within the period.
10.2.108 Registration of transfer at request of transferor
(1) This regulation applies if:
(a) the transferor of a share in, debenture of, or interest made
available by, a company requested the company, under
subsection 1092(2) of the old Corporations Act, to carry out
the obligations under that subsection; and
(b) the company did not complete all of its obligations under that
subsection within the stated period.
(2) Section 1092 of the old Corporations Act, and any associated
provisions, continue to apply to the extent necessary to allow for:
(a) the completion of the company’s obligations within the stated
period; and
(b) the consequences of not completing the obligations within
the stated period.
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Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Title and transfer Division 21
Regulation 10.2.109
Corporations Regulations 2001 139
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.109 Notice of refusal to register transfer
(1) This regulation applies if:
(a) a company refused, under section 1093 of the old
Corporations Act, to register:
(i) a transfer of shares in the company; or
(ii) a transfer of debentures of the company; or
(iii) a transfer of interests made available by the company;
and
(b) the company did not send the transferee the notice required
under that section before the FSR commencement; and
(c) the 2 month period mentioned in that section had not expired
before the FSR commencement.
(2) Section 1093 of the old Corporations Act, and any associated
provisions, continue to apply to the extent necessary to allow for:
(a) the completion of the company’s obligations within the 2
month period; and
(b) the consequences of not completing the obligations within
the 2 month period.
10.2.110 Duties of company with respect to issue of certificates:
allotment of shares or debentures or making interests
available
(1) This regulation applies if:
(a) a company:
(i) allotted shares in, issued debentures of, or made
available interests in the company before the FSR
commencement; and
(ii) did not complete all of its obligations under
paragraph 1096(1)(a) or (b) of the old Corporations Act
(whether or not those obligations were affected by
paragraph 1096(1A)(b) of the old Corporations Act)
within the 2 month period required by
subsection 1096(1) of that Act; and
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 21 Title and transfer
Regulation 10.2.111
140 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) paragraph 1096(1A)(a) of the old Corporations Act did not
apply in relation to the company during the 2 month period.
Note: Subsection 1096(1A) of the old Corporations Act referred to the
possibility that the SCH business rules may include a provision to the
effect that:
(a) no document is required to be completed and delivered in relation to the allotment, issue or making available of a share, debenture or interest in specified circumstances; or
(b) the only document to be completed and delivered is such document as the rules require.
(2) Section 1096 of the old Corporations Act, and any associated
provisions, continue to apply to the extent necessary to allow for:
(a) the completion of the company’s obligations within the 2
month period; and
(b) a relevant person mentioned in paragraph 1096(1)(b) of the
old Corporations Act to give instructions mentioned in that
paragraph after the FSR commencement; and
(c) the operation of the arrangements mentioned in
subsections 1096(3) and (4) of the old Corporations Act after
the FSR commencement; and
(d) the consequences of not completing the obligations within
the 2 month period.
10.2.111 Duties of company with respect to issue of certificates:
transfer of shares, debentures or interests
(1) This regulation applies if:
(a) any of the following was lodged with a company:
(i) a transfer of shares in the company (other than a transfer
that the company was entitled to refuse to register and
did not register);
(ii) a transfer of debentures of the company (other than a
transfer that the company was entitled to refuse to
register and did not register);
(iii) a transfer of interests made available by the company
(other than a transfer that the company was entitled to
refuse to register and did not register); and
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Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Title and transfer Division 21
Regulation 10.2.112
Corporations Regulations 2001 141
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the company was required to complete, and have ready for
delivery, all appropriate certificates, debentures or other
documents in accordance with subsection 1096(2) of the old
Corporations Act; and
(c) the company did not complete all of its obligations under
paragraph 1096(2)(a) or (b) of the old Corporations Act
(whether or not those obligations were affected by
subsection 1096(2A) of the old Corporations Act) within the
1 month period required by subsection 1096(2) of that Act.
Note: Subsection 1096(2A) of the old Corporations Act provided that the
only document required by subsection 1096(2) of the old Corporations
Act to be completed and delivered by a company in relation to an
SCH-regulated transfer is such document (if any) as the SCH business
rules require to be so completed and delivered.
(2) Section 1096 of the old Corporations Act, and any associated
provisions, continue to apply to the extent necessary to allow for:
(a) the completion of the company’s obligations within the 1
month period; and
(b) a transferee mentioned in paragraph 1096(2)(b) of the old
Corporations Act to give instructions mentioned in that
paragraph after the FSR commencement; and
(c) the operation of the arrangements mentioned in
subsections 1096(3) and (4) of the old Corporations Act after
the FSR commencement; and
(d) the consequences of not completing the obligations within
the 1 month period.
10.2.112 Notices relating to non-beneficial and beneficial ownership
of shares
(1) This regulation applies if:
(a) a notice regarding non-beneficial or beneficial ownership of
shares was required to be given under subsection 1096A(1),
(3), (4), (5) or (6) of the old Corporations Act; and
(b) the notice was not given before the FSR commencement.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 21 Title and transfer
Regulation 10.2.113
142 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) Section 1096A of the old Corporations Act, and any associated
provisions, continue to apply to the extent necessary to allow for:
(a) the consequences of not giving the notice; and
(b) the completion of the obligation to give the notice within the
period (if any) stated in the relevant subsection; and
(c) the operation of the arrangements mentioned in
subsection 1096A(7) of the old Corporations Act after the
FSR commencement; and
(d) the operation of the arrangements mentioned in
subsection 1096A(9) of the old Corporations Act after the
FSR commencement, to the extent that the arrangements
relate to section 1096A of the old Corporations Act.
Note: The arrangements in subsection 1096A(9) of the old Corporations Act
also related to section 216B of the old Corporations Act, which no
longer exists.
10.2.113 What is a sufficient transfer of marketable securities or
marketable rights: general
(1) This regulation applies if the arrangements for the due completion
of a document, to make the document:
(a) a sufficient transfer of marketable securities under
subsection 1101(1) of the old Corporations Act; or
(b) a sufficient transfer of marketable rights under
subsection 1101(2) of the old Corporations Act;
were not completed before the FSR commencement.
(2) Section 1101 of the old Corporations Act, and any associated
provisions, continue to apply to the extent necessary to allow for
the document to be duly completed, and treated as a sufficient
transfer, in accordance with the relevant arrangements.
(3) If the document is duly completed in accordance with the relevant
arrangements, the document is also taken to be a sufficient transfer
for the purposes of the Act as in force after the FSR
commencement.
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Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Title and transfer Division 21
Regulation 10.2.114
Corporations Regulations 2001 143
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.114 Sufficient transfer by authorised trustee corporation
(1) This regulation applies if the arrangements for the completion of a
document, to make the document:
(a) a sufficient transfer of marketable securities by an authorised
trustee corporation under subsection 1102(1) of the old
Corporations Act; or
(b) a sufficient transfer of marketable rights by an authorised
trustee corporation under subsection 1102(2) of the old
Corporations Act;
were not completed before the FSR commencement.
(2) Section 1102 of the old Corporations Act, and any associated
provisions, continue to apply to the extent necessary to allow for
the document to be duly completed, and treated as a sufficient
transfer by an authorised trustee corporation, in accordance with
the relevant arrangements.
(3) If the document is duly completed in accordance with the relevant
arrangements, the document is also taken to be a sufficient transfer
by an authorised trustee corporation for the purposes of the Act as
in force after the FSR commencement.
10.2.115 Determination of who holds quoted securities for the
purposes of a meeting: determination made before FSR
commencement
(1) This regulation applies if:
(a) the convenor of a meeting made a determination under
subsection 1109N(2) of the old Corporations Act; and
(b) either:
(i) notice of the meeting was not sent before the FSR
commencement; or
(ii) the meeting was not held before the FSR
commencement.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 21 Title and transfer
Regulation 10.2.115
144 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) Section 1109N of the old Corporations Act, and any associated
provisions, continue to apply to the extent necessary to allow for:
(a) the giving of notice of the meeting; or
(b) the holding of the meeting.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Transitional matters under relevant old legislation: Financial Transaction Reports Act
1988 Division 22
Regulation 10.2.116
Corporations Regulations 2001 145
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 22—Transitional matters under relevant old
legislation: Financial Transaction Reports Act
1988
10.2.116 Cash dealer
(1) For section 1444 of the Act, the definition of cash dealer in
subsection 3(1) of the Financial Transaction Reports Act 1988 is
taken to include a reference to a regulated principal mentioned in
item 1 or 3 of the table in section 1430 of the Act.
(2) Subregulation (1) ceases to apply in relation to the regulated
principal at the end of the transition period in relation to the
regulated principal.
10.2.117 Exempt cash transaction
(1) For section 1444 of the Act, a reference in paragraph 9(4)(a) of the
Financial Transaction Reports Act 1988 to a financial services
licensee includes a regulated principal mentioned in item 3 of the
table in section 1430 of the Act.
(2) Subregulation (1) ceases to apply in relation to the regulated
principal at the end of the transition period in relation to the
regulated principal.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 23 Transitional matters under relevant old legislation: Income Tax
Assessment Act 1936
Regulation 10.2.118
146 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 23—Transitional matters under relevant old
legislation: Income Tax Assessment Act 1936
10.2.118 Offshore banking units
(1) For section 1444 of the Act, a reference in
subparagraph 128AE(2)(e)(iii) of the Income Tax Assessment Act
1936 to a financial services licensee includes a regulated principal
mentioned in item 1 or 3 of the table in section 1430 of the Act.
(2) Subregulation (1) ceases to apply in relation to the regulated
principal at the end of the transition period in relation to the
regulated principal.
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Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Transitional matters under relevant old legislation: Insurance Act 1973 Division 24
Regulation 10.2.119
Corporations Regulations 2001 147
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 24—Transitional matters under relevant old
legislation: Insurance Act 1973
10.2.119 Insurers carrying on class of insurance business
(1) For section 1444 of the Act, section 113 of the Insurance Act 1973,
as in force immediately before the FSR commencement, and any
associated provisions, continue to have effect in relation to a
regulated principal:
(a) mentioned in item 6 of the table in section 1430 of the Act;
and
(b) who carries on a class of insurance business that was
prescribed for section 113 of the Insurance Act 1973
immediately before the FSR commencement;
to the extent necessary to require the person to comply with that
section in relation to the class of insurance business.
(2) Subregulation (1) ceases to apply in relation to the regulated
principal at the end of the transition period in relation to the
regulated principal.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 24A Transitional matters under relevant old legislation: Insurance (Agents
and Brokers) Act 1984
Regulation 10.2.119A
148 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 24A—Transitional matters under relevant old
legislation: Insurance (Agents and Brokers) Act
1984
10.2.119A Debts of broker in relation to premiums etc
(1) For section 1444 of the Act, a reference in paragraph 27(1)(a) of
the Insurance (Agents and Brokers) Act 1984 to another registered
insurance broker includes a financial services licensee.
(2) For section 1444 of the Act, a reference in paragraph 27(4)(a) of
the Insurance (Agents and Brokers) Act 1984 to another registered
insurance broker includes a financial services licensee.
(3) For section 1444 of the Act, a reference in paragraph 27(5)(b) of
the Insurance (Agents and Brokers) Act 1984 to another registered
insurance broker includes a financial services licensee.
10.2.119B Disqualifications made before FSR commencement
(1) For section 1444 of the Act, on and after the FSR commencement,
a disqualification under subsection 25(5) or 31H(5) of the
Insurance (Agents and Brokers) Act 1984 made before the FSR
commencement:
(a) continues in force to the extent practicable to allow it to
apply to conduct or another matter:
(i) as it is described on and after the FSR commencement;
or
(ii) as it is regulated on and after the FSR commencement;
and
(b) is taken to be a disqualification made under subsection 25(5)
or 31H(5) of the Insurance (Agents and Brokers) Act 1984.
(2) For section 1444 of the Act, on and after the FSR commencement,
subsections 25(5) and 31H(5) of the Insurance (Agents and
Brokers) Act 1984, and associated provisions, continue to apply to
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Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Transitional matters under relevant old legislation: Insurance (Agents and Brokers) Act
1984 Division 24A
Regulation 10.2.119C
Corporations Regulations 2001 149
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
the extent necessary to allow the disqualification to continue in
force.
(3) For subregulation (2), nothing in the relevant old legislation
(including the Australian Securities and Investments Commission
Act 2001) prevents ASIC from drafting or amending the terms of a
prohibition for the purpose of ensuring that the prohibition has the
same effect under the Act as it had under the relevant old
legislation, or an effect equivalent to the effect it had under the
relevant old legislation.
10.2.119C Disqualifications made after FSR commencement
(1) For section 1444 of the Act, on and after the FSR commencement,
subsections 25(5) and 31H(5) of the Insurance (Agents and
Brokers) Act 1984, and associated provisions, continue to apply to
the extent necessary to allow a disqualification to be made or
enforced against a person in relation to:
(a) conduct or another matter that occurred before the FSR
commencement; or
(b) conduct or another matter that:
(i) occurred after the FSR commencement; and
(ii) is regulated in accordance with section 1432 or 1436A
of the Act.
(2) A disqualification made in relation to conduct or another matter
mentioned in subregulation (1) is taken to be a disqualification
made under subsection 25(5) or 31H(5) of the Insurance (Agents
and Brokers) Act 1984.
(3) For subregulation (2), nothing in the relevant old legislation
(including the Australian Securities and Investments Commission
Act 2001) prevents ASIC from drafting or amending the terms of a
prohibition for the purpose of ensuring that the prohibition has the
same effect under the amended Corporations Act as it had under
the old legislation, or an effect equivalent to the effect it had under
the old legislation.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 25 Transitional matters under relevant old legislation: Marine Insurance Act
1909
Regulation 10.2.120
150 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 25—Transitional matters under relevant old
legislation: Marine Insurance Act 1909
10.2.120 Marine policy effected through broker
For section 1444 of the Act, sections 59 and 60 of the Marine
Insurance Act 1909, and any associated provisions, continue to
have effect in relation to a marine policy effected on behalf of the
assured by a broker before the FSR commencement.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Transitional matters under relevant old legislation: Retirement Savings Accounts
Regulations 1997 Division 25A
Regulation 10.2.120A
Corporations Regulations 2001 151
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 25A—Transitional matters under relevant old
legislation: Retirement Savings Accounts
Regulations 1997
10.2.120A Continuation of RSA Regulations during transition
period
(1) For section 1444 of the Act, this regulation applies in relation to a
financial product:
(a) to which the RSA Act applied immediately before the FSR
commencement; and
(b) for which a transition period exists.
(2) The following provisions of the RSA Regulations, as in force
immediately before the FSR commencement, continue to apply in
relation to the financial product:
(a) Division 2.1;
(b) regulation 2.09;
(c) Divisions 2.3, 2.4, 2.5, 2.7 and 2.8;
(d) regulation 3.07;
(e) regulation 3.09 (other than paragraphs 3.09(a) and (c));
(f) regulation 4.32;
(g) regulation 4.33;
(h) regulation 6.12.
(3) Subregulation (2) ceases to apply in relation to the financial
product at the end of the transition period for the financial product.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 25B Transitional matters under relevant old legislation: Superannuation
Industry (Supervision) Regulations 1994
Regulation 10.2.120B
152 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 25B—Transitional matters under relevant old
legislation: Superannuation Industry
(Supervision) Regulations 1994
10.2.120B Continuation of SIS Regulations during transition period
(1) For section 1444 of the Act, this regulation applies in relation to a
financial product:
(a) to which the SIS Act applied immediately before the FSR
commencement; and
(b) for which a transition period exists.
(2) The following provisions of the SIS Regulations, as in force
immediately before the FSR commencement, continue to apply in
relation to the financial product:
(a) Divisions 2.1 and 2.3;
(b) Subdivisions 2.4.1 and 2.4.2;
(c) Divisions 2.5, 2.7 and 2.7A;
(d) Subdivisions 2.8.1, 2.8.3, 2.8.4 and 2.8.5;
(da) regulation 3.10;
(e) regulation 4.01;
(f) regulation 5.12;
(g) regulation 5.15 (other than paragraphs 5.15(a) and (c));
(h) regulations 5.17 and 5.22;
(i) regulation 6.17;
(j) regulation 6.28;
(k) regulation 6.29;
(l) subregulation 13.07(2).
(3) Subregulation (2) ceases to apply in relation to the financial
product at the end of the transition period for the financial product.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Transitional matters under relevant old legislation: Superannuation (Resolution of
Complaints) Act 1993 Division 26
Regulation 10.2.121
Corporations Regulations 2001 153
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 26—Transitional matters under relevant old
legislation: Superannuation (Resolution of
Complaints) Act 1993
10.2.121 Life insurance broker
(1) For section 1444 of the Act, a reference in the definition of life
insurance broker in subsection 3(2) of the Superannuation
(Resolution of Complaints) Act 1993 to a financial services
licensee includes a regulated principal:
(a) mentioned in item 5 of the table in section 1430 of the Act;
and
(b) who is registered under Part III of the Insurance (Agents and
Brokers) Act 1984 in respect of life insurance.
(2) Subregulation (1) ceases to apply in relation to the regulated
principal at the end of the transition period in relation to the
regulated principal.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 27 Transitional matters under the Act (other than Chapter 7)
Regulation 10.2.122
154 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 27—Transitional matters under the Act (other
than Chapter 7)
10.2.122 Solvency and insolvency
For section 1444 of the Act, a reference in the Act to solvency or
insolvency is to be read as if subsections 95A(1) and (2) of the old
Corporations Act had not been repealed on the FSR
commencement.
10.2.123 Managed investment products held by 100 or more persons
For section 1444 of the Act, a reference in section 111AFA of the
Act to people holding managed investment products in a class of
managed investment products includes a person who holds the
managed investment product as a result of an offer, relating to
securities, that gave rise to an obligation to lodge a disclosure
document with ASIC in relation to the securities under Chapter 6D
of the old Corporations Act.
10.2.124 When a managed investment scheme must be registered
For section 1444 of the Act, subsection 601ED(2) of the Act
applies in relation to a managed investment scheme as if issues of
interests that:
(a) were made before the issue of the interest was covered by
Division 2 of Part 7.9 of the Act; and
(b) were:
(i) issues made after 12 March 2000 that would not have
needed disclosure to investors under Part 6D.2 of the
old Corporations Act if the scheme were registered; or
(ii) issues mentioned in section 1477 of the Corporations
Law as in force on 14 July 2001 and as continued by
section 1408 of the Act;
were issues in relation to which a Product Disclosure Statement is
not required to be given under Division 2 of Part 7.9.
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Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Transitional matters under the Act (other than Chapter 7) Division 27
Regulation 10.2.125
Corporations Regulations 2001 155
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.125 Responsible entity to be a public company and hold an
Australian financial services licence
(1) For section 1444 of the Act, this regulation applies in relation to a
public company that is a regulated principal mentioned in item 1 of
the table in section 1430 of the Act.
(2) A reference in section 601FA of the Act to a public company that
holds an Australian financial services licence includes the
regulated principal.
(3) Subregulation (2) ceases to apply in relation to the regulated
principal at the end of the transition period in relation to the
regulated principal.
10.2.126 Duties of officers of responsible entity
(1) For section 1444 of the Act, this regulation applies in relation to a
responsible entity that is a regulated principal mentioned in item 1
of the table in section 1430 of the Act.
(2) A reference in subparagraph 601FD(1)(f)(ii) of the Act to a
responsible entity’s Australian financial services licence includes
the dealers licence of the regulated principal.
(3) Subregulation (2) ceases to apply in relation to the regulated
principal at the end of the transition period in relation to the
regulated principal.
10.2.127 Voidable contracts
(1) For section 1444 of the Act, this regulation applies in relation to a
contract if:
(a) Chapter 6D of the old Corporations Act applies in relation to
an interest in a registered scheme after the FSR
commencement; and
(b) a person (the offeror), in contravention of Chapter 6D of the
old Corporations Act, offers the interest in the registered
scheme for subscription, or issues an invitation to subscribe
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 27 Transitional matters under the Act (other than Chapter 7)
Regulation 10.2.128
156 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
for the interest in the registered scheme during the transition
period in relation to the registered scheme; and
(c) the contract is entered into by a person (other than the
offeror) to subscribe for the interest as a result of the person
accepting the offer, or of the acceptance of an offer made by
the person in response to the invitation.
(2) A reference in section 601MB of the Act to a contract includes the
contract mentioned in subregulation (1).
(3) Subregulation (2) ceases to apply in relation to the contract at the
end of the transition period in relation to the managed investment
product to which the contract mentioned in subregulation (1)
relates.
10.2.128 Situations not giving rise to relevant interests
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 1 of the table in section 1430
of the Act.
(2) A reference in subsection 609(3) of the Act to a financial services
licensee includes the regulated principal.
(3) A reference in subsection 609(3) of the Act to a financial services
business includes the securities business of the regulated principal
as defined in section 93 of the old Corporations Act.
(4) Subregulations (2) and (3) cease to apply in relation to the
regulated person at the end of the transition period in relation to the
regulated principal.
10.2.129 Bidder’s statement content
(1) For section 1444 of the Act, this regulation applies if:
(a) after the FSR commencement, a bidder offers managed
investment products as consideration under a takeover bid;
and
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Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Transitional matters under the Act (other than Chapter 7) Division 27
Regulation 10.2.130
Corporations Regulations 2001 157
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) Division 2 of Part 7.9 of the Act does not apply to the
managed investment products when the bidder lodges with
ASIC the bidder’s statement under section 636 of the Act.
(2) Paragraph 636(1)(g) of the Act applies to the bidder’s statement as
if the managed investment products were securities other than
managed investment products.
(3) Paragraph 636(1)(ga) of the Act does not apply to the bidder’s
statement.
10.2.130 Continuous disclosure: other disclosing entities
For section 1444 of the Act, a reference in
subparagraph 675(2)(c)(ii) of the Act to a Product Disclosure
Statement, or a Supplementary Product Disclosure Statement, a
copy of which has been lodged with ASIC includes:
(a) a disclosure document lodged with ASIC under Chapter 6D
of the old Corporations Act; and
(b) a supplementary disclosure document, or a replacement
disclosure document, lodged with ASIC under that Chapter.
10.2.131 Sale offers that need disclosure: securities issued before
FSR commencement
(1) For section 1444 of the Act, this regulation applies if:
(a) securities (other than managed investment products) are sold
on or after the FSR commencement; and
(b) the securities were issued before the FSR commencement.
(2) Section 707 of the old Corporations Act, and any associated
provisions, continue to apply in relation to the securities.
(3) Section 707 of the Act does not apply in relation to the securities.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 27 Transitional matters under the Act (other than Chapter 7)
Regulation 10.2.132
158 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.132 Offers that do not need disclosure: offer to sophisticated
investor through licensed dealer
(1) This regulation applies in relation to a regulated principal
mentioned in item 1 of the table in section 1430 of the Act.
(2) A reference in subsection 708(10) of the Act to a financial services
licensee includes the regulated principal.
(3) Subregulation (2) ceases to apply in relation to the regulated
principal at the end of the transition period in relation to the
regulated principal.
10.2.133 Prospectus content: general disclosure test
(1) This regulation applies in relation to a regulated principal
mentioned in item 1 of the table in section 1430 of the Act if the
regulated principal is named in a prospectus as being involved in
any way in the issue or sale of the securities to which the
prospectus applies.
(2) A reference in paragraph 710(3)(e) of the Act to a person named in
a prospectus as a financial services licensee includes the regulated
principal.
(3) Subregulation (2) ceases to apply in relation to the regulated
principal at the end of the transition period in relation to the
regulated principal.
10.2.134 Prospectus content—specific disclosures
(1) This regulation applies in relation to a regulated principal
mentioned in item 1 of the table in section 1430 of the Act if the
regulated principal is named in a prospectus as being involved in
any way in the issue or sale of the securities to which the
prospectus applies.
(2) A reference in paragraph 711(4)(e) of the Act to a person named in
a prospectus as a financial services licensee includes the regulated
principal.
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Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Transitional matters under the Act (other than Chapter 7) Division 27
Regulation 10.2.135
Corporations Regulations 2001 159
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) Subregulation (2) ceases to apply in relation to the regulated
principal at the end of the transition period in relation to the
regulated principal.
10.2.135 Registers
For section 1444 of the Act, a reference in
subparagraph 1274(2)(a)(ia) of the Act to a document lodged under
a provision of Chapter 7 of the Act (other than section 675 or
subsection 792C(1)) includes a document lodged with ASIC under
a provision of Chapter 7 (other than subsection 776(2B),
section 1001B or Part 7.13) or Chapter 8 of the old Corporations
Act (whether the document was lodged before or after the FSR
commencement).
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 27A Transitional matters under other legislation
Regulation 10.2.135A
160 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 27A—Transitional matters under other legislation
10.2.135A References to authorised foreign exchange dealers
(1) For section 1444 of the Act, this regulation applies to a reference,
in a law of the Commonwealth (within the meaning of Division 2
of Part 10.2 of the Act), to:
(a) an authorised foreign exchange dealer; or
(b) a person authorised to carry on business as a dealer in foreign
exchange.
(2) On and after the FSR commencement, the reference is taken to
include a holder of an Australian financial services licence that
authorises the holder to buy and sell foreign currency.
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Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Retail clients and wholesale clients Division 28
Regulation 10.2.136
Corporations Regulations 2001 161
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 28—Retail clients and wholesale clients
10.2.136 Securities before the FSR commencement
(1) For section 1444 of the Act, this regulation applies in relation to a
person:
(a) who:
(i) held pre-FSR securities at the FSR commencement; or
(ii) acquired the pre-FSR securities at any time after the
FSR commencement under the relevant old legislation;
and
(b) in relation to whom disclosure was not required under
section 708 of the old Corporations Act in respect of the
particular offer of the pre-FSR securities.
(2) The person is taken to be a wholesale client in relation to the
pre-FSR securities as between the person and the issuer for the
period:
(a) starting on the earlier of:
(i) the FSR commencement; and
(ii) the day on which the pre-FSR securities were acquired;
and
(b) during which the holder holds the pre-FSR securities.
(3) Subregulation (2) applies whether or not the holder would, but for
that subregulation, have become a retail client in relation to the
pre-FSR securities at some time after the FSR commencement.
Note: This regulation is meant to ensure that a person for whom disclosure
was not required under Chapter 6D of the old Corporations Act
(whether the Chapter applies before or after the FSR commencement,
or after FSR commencement in accordance with a relevant old law) is
taken to be a wholesale client in relation to those securities as between
the person and the product issuer.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 28 Retail clients and wholesale clients
Regulation 10.2.137
162 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.137 Incomplete financial services
(1) For section 1444 of the Act, this regulation applies in relation to a
person who:
(a) was provided with an incomplete financial service in relation
to pre-FSR securities before the FSR commencement; and
(b) was not a retail investor in relation to the incomplete
financial service.
(2) The old Corporations Act, and any associated provisions, continue
to apply in relation to the incomplete financial service to the extent
necessary to allow the financial service to be completed under the
old Corporations Act.
(3) The amended Corporations Act does not apply in relation to the
incomplete financial service to the extent necessary to allow the
financial service to be completed under the old Corporations Act.
(4) In this regulation:
incomplete financial service means a service:
(a) that is, or would be, a financial service under the Act,
whether it was provided before or after the FSR
commencement; and
(b) either:
(i) that commenced before the amended Corporations Act
applied to the provider in relation to the service; or
(ii) in relation to which instructions had been received by
the provider of the service from the client, or a person
acting on the client’s behalf, before the amended
Corporations Act applied to the provider in relation to
the service; and
(c) in relation to which:
(i) the provider of the service did not need to obtain from
the client any further instructions or information in
order to be authorised or able to complete the provision
of the service; or
(ii) the majority of activities that needed to be carried out:
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Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Retail clients and wholesale clients Division 28
Regulation 10.2.138
Corporations Regulations 2001 163
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(A) by the provider; or
(B) by a person acting on the instructions of the
provider; or
(C) on behalf of the provider;
occurred before the amended Corporations Act applied
to the provider in relation to the financial service; and
(d) completed within 4 weeks after the amended Corporations
Act applies to that provider in relation to the service.
retail investor means a retail investor under
subregulation 7.3.02B(10) of these Regulations, as in force
immediately before the FSR commencement.
10.2.138 Professional investors
(1) For section 1444 of the Act, this regulation applies in relation to:
(a) a regulated principal mentioned in item 1, 2, 3 or 4 of the
table in section 1430 of the Act; or
(b) a person who:
(i) at the FSR commencement, is an exempt dealer who
acts as a principal; and
(ii) is a regulated principal mentioned in item 4 of the table
in regulation 10.2.38; or
(c) a person who:
(i) at the FSR commencement, is an exempt investment
adviser who acts as a principal; and
(ii) is a regulated principal mentioned in item 4 of the table
in regulation 10.2.38.
(2) The person is taken to be a professional investor for section 9 and
paragraph 761G(7)(d) of the Act.
(3) Subject to subregulation (4), this regulation ceases to apply in
relation to the person on the earlier of:
(a) the end of the transition period in relation to the person under
subsection 1431(1) of the Act; and
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 28 Retail clients and wholesale clients
Regulation 10.2.138
164 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the day on which the person ceases to have the status that
made the person a regulated person.
(4) If:
(a) the person is subject to an exemption or modification under
section 1437 of the Act; and
(b) the exemption or modification has the effect of extending the
transition period in relation to the person (generally or in
respect of certain activities);
the person ceases to be a person mentioned in subregulation (1) at
the end of the period of the extension.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Effect on definitions in old Corporations Act of transition to licensed markets and
licensed CS facilities Division 29
Regulation 10.2.139
Corporations Regulations 2001 165
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 29—Effect on definitions in old Corporations Act
of transition to licensed markets and licensed CS
facilities
10.2.139 Approved foreign bank
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
(2) A reference in the definition of approved foreign bank in section 9
of the old Corporations Act to a member of a futures organisation
includes a participant of a licensed market for derivatives.
(3) A reference in the definition of approved foreign bank in section 9
of the old Corporations Act to an approval given by a futures
organisation in accordance with its business rules (within the
meaning of Chapter 8 of the old Corporations Act) includes an
approval given by the operator of a licensed market for derivatives
(within the meaning of section 761A of the amended Corporations
Act).
10.2.140 Eligible exchange-traded options
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
(2) A reference in the definition of eligible exchange-traded option in
section 9 of the old Corporations Act to a futures market of a
futures exchange includes a licensed market for derivatives.
10.2.141 Futures law
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 29 Effect on definitions in old Corporations Act of transition to licensed
markets and licensed CS facilities
Regulation 10.2.142
166 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) A reference in the definition of futures law in section 9 of the old
Corporations Act to Chapter 8 of the old Corporations Act includes
Chapter 7 of the amended Corporations Act.
10.2.142 Member organisation
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
(2) A reference in paragraph (a) of the definition of member
organisation in section 9 of the old Corporations Act to a
securities exchange or a stock exchange includes a licensed market
for securities.
(3) A reference in paragraph (a) of the definition of member
organisation in section 9 of the old Corporations Act to the
business rules of a securities exchange or a stock exchange
includes the operating rules of a licensed market for securities.
(4) A reference in paragraph (b) of the definition of member
organisation in section 9 of the old Corporations Act to a futures
organisation includes a licensed market for derivatives.
(5) A reference in paragraph (b) of the definition of member
organisation in section 9 of the old Corporations Act to a member
of a futures organisation includes a participant of a licensed market
for derivatives.
(6) A reference in subparagraph (b)(ii) of the definition of member
organisation in section 9 of the old Corporations Act to a
partnership that a futures organisation recognises as a member
organisation includes a partnership that a market licensee
recognises as a member organisation.
10.2.143 Non-broker
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
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Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Effect on definitions in old Corporations Act of transition to licensed markets and
licensed CS facilities Division 29
Regulation 10.2.144
Corporations Regulations 2001 167
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) A reference in the definition of non-broker in section 9 of the old
Corporations Act to a futures broker or one of 2 or more persons
who together constitute a futures broker includes:
(a) a financial services licensee; and
(b) one of 2 or more persons who together constitute a financial
services licensee.
10.2.144 Non-dealer
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
(2) A reference in the definition of non-dealer in section 9 of the old
Corporations Act to a dealer or one of 2 or more persons who
together constitute a dealer includes:
(a) a financial services licensee; and
(b) one of 2 or more persons who together constitute a financial
services licensee.
10.2.145 Securities law
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
(2) A reference in the definition of securities law in section 9 of the
old Corporations Act to Chapter 7 of the old Corporations Act
includes Chapter 7 of the amended Corporations Act.
10.2.146 Marketable parcel
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
(2) A reference in the definition of marketable parcel in section 761 of
the old Corporations Act to a stock market of a securities exchange
includes a licensed market for securities.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 29 Effect on definitions in old Corporations Act of transition to licensed
markets and licensed CS facilities
Regulation 10.2.146
168 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) A reference in the definition of marketable parcel in section 761 of
the old Corporations Act to the relevant business rules of a stock
market of a securities exchange includes the relevant operating
rules of a licensed market for securities.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Effect on certain conduct of transition to licensed markets and licensed CS facilities
Division 30
Regulation 10.2.147
Corporations Regulations 2001 169
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 30—Effect on certain conduct of transition to
licensed markets and licensed CS facilities
10.2.147 Own account dealings and transactions: futures contracts
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
(2) A reference in subsection 29(2) of the old Corporations Act to a
member of a futures exchange includes a participant of a licensed
market for derivatives.
10.2.148 Conditions of dealers licence
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 1 or 2 of the table in
section 1430 of the Act.
(2) A reference in subsection 786(8) of the old Corporations Act to a
member of a securities exchange includes a participant of a
licensed market for securities.
(3) A reference in subsection 786(8) of the old Corporations Act to a
securities exchange includes a market licensee.
(4) A reference in subsection 786(8) of the old Corporations Act to a
member firm includes a participating firm.
10.2.149 Persons who are not clients
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 1 or 2 of the table in
section 1430 of the Act.
(2) A reference in section 794 of the old Corporations Act to a dealer
or an investment adviser includes:
(a) a financial services licensee; and
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 30 Effect on certain conduct of transition to licensed markets and licensed CS
facilities
Regulation 10.2.150
170 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) one of 2 or more persons who together constitute a financial
services licensee.
10.2.150 Dealings and transactions on a dealer’s own account
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 1 of the table in section 1430
of the Act.
(2) A reference in subsection 843(5) of the old Corporations Act to a
dealer who is a member of a securities exchange includes a
participant of a licensed market for securities.
10.2.151 Dealer to give priority to clients’ orders
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 1 of the table in section 1430
of the Act.
(2) A reference in subsection 844(2) of the old Corporations Act to a
stock market of a securities exchange includes a licensed market
for securities.
10.2.152 Dealers’ financial records
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 1 of the table in section 1430
of the Act.
(2) A reference in paragraph 856(10)(c) of the old Corporations Act to
a dealer includes a financial services licensee.
10.2.153 Auditor to report to ASIC on certain matters
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 1 of the table in section 1430
of the Act.
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Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Effect on certain conduct of transition to licensed markets and licensed CS facilities
Division 30
Regulation 10.2.154
Corporations Regulations 2001 171
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) A reference in subsection 861(1) of the old Corporations Act to a
securities exchange of which a holder is a member includes a
licensed market for securities of which the regulated principal is a
participant.
10.2.154 Qualified privilege for auditor
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 1 of the table in section 1430
of the Act.
(2) A reference in paragraph 863(1)(b) of the old Corporations Act to a
securities exchange includes the operator of a licensed market for
securities.
10.2.155 Court may freeze certain bank accounts of dealers and
former dealers
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 1 of the table in section 1430
of the Act.
(2) A reference in paragraph 874(1)(b) of the old Corporations Act to
the business rules of a securities exchange of which a person is or
has been a member includes the operating rules of a licensed
market for securities of which the regulated principal is or has been
a participant.
10.2.156 Interpretation—registers
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 1 of the table in section 1430
of the Act.
(2) A reference in the definition of financial journalist in
subsection 879(1) of the old Corporations Act to a licensee
includes a financial services licensee.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 30 Effect on certain conduct of transition to licensed markets and licensed CS
facilities
Regulation 10.2.157
172 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) A reference in paragraph (b) of the definition of securities in
subsection 879(1) of the old Corporations Act to a securities
exchange includes a licensed market for securities.
(4) A reference in paragraph 879(2)(a) of the old Corporations Act to a
securities exchange includes an operator of a licensed market for
securities.
(5) A reference in paragraph 879(2)(a) of the old Corporations Act to a
member of a securities exchange that is recognised by that
securities as specialising in transactions relating to odd lots of
securities exchange includes a participant of a licensed market that
is recognised by the market licensee in relation to that licensed
market as specialising in transactions relating to odd lots of
securities.
(6) A reference in subsection 879(2) of the old Corporations Act to a
member’s relevant interests in any securities includes the interests
in securities of a participant mentioned in subregulation (5).
10.2.157 Conditions of futures broker’s licence: membership of
futures organisation
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 3 of the table in section 1430
of the Act.
(2) A reference in paragraph 1148(1)(a) of the old Corporations Act to
being a member of a futures organisation includes being a
participant of a licensed market for derivatives.
(3) A reference in subparagraph 1148(1)(b)(i) of the old Corporations
Act to being a member of no futures organisation includes being a
participant of no licensed market for derivatives.
(4) A reference in subparagraph 1148(1)(b)(ii) of the old Corporations
Act to a licensee’s being a member of a futures organisation, but
for the suspension of the licensee’s membership of the futures
organisation, includes the regulated principal’s being a participant
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
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Effect on certain conduct of transition to licensed markets and licensed CS facilities
Division 30
Regulation 10.2.158
Corporations Regulations 2001 173
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
of a licensed market for derivatives, but for the suspension of the
regulated principal’s participation in the licensed market.
(5) A reference in subsection 1148(2) of the old Corporations Act to a
licensee’s membership of a futures organisation includes the
regulated principal’s participation in a licensed market for
derivatives.
10.2.158 Futures organisation to be informed about conditions of
futures brokers licence
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 3 of the table in section 1430
of the Act.
(2) A reference in paragraph 1152(1)(a) of the old Corporations Act to
a futures organisation of which a licensee is a member includes the
operator of a licensed market for derivatives of which the regulated
principal is a participant.
(3) A reference in paragraph 1152(1)(b) of the old Corporations Act to
a corporation that is a clearing house for a futures exchange of
which a licensee is a member includes the operator of a licensed
CS facility that provides its services for the clearing and settlement
of transactions effected through a licensed market for derivatives
of which the regulated principal is a participant.
10.2.159 Licensee to notify breach of licence condition
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 3 or 4 of the table in
section 1430 of the Act.
(2) A reference in paragraph 1153(1)(b) of the old Corporations Act to
a futures organisation of which a licensee is a member includes the
operator of a licensed market for derivatives of which the regulated
principal is a participant.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 30 Effect on certain conduct of transition to licensed markets and licensed CS
facilities
Regulation 10.2.160
174 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.160 Register of Futures Licensees
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 3 or 4 of the table in
section 1430 of the Act.
(2) A reference in paragraph 1155(3)(e) of the old Corporations Act to
a futures organisation of which a licensee is a member includes the
operator of a licensed market for derivatives of which the regulated
principal is a participant.
10.2.161 Excluded clients
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 3 or 4 of the table in
section 1430 of the Act.
(2) A reference in section 1159 of the old Corporations Act to a futures
broker or a futures adviser includes:
(a) a financial services licensee; and
(b) one of 2 or more persons who together constitute a financial
services licensee.
10.2.162 Segregation of client money and property
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 3 of the table in section 1430
of the Act.
(2) A reference in subparagraph 1209(5)(d)(iv) of the old Corporations
Act to a clearing house for a futures exchange includes a CS
facility that provides its services for the clearing and settlement of
transactions effected through a licensed market for derivatives.
(3) A reference in subsection 1209(5A) of the old Corporations Act to:
(a) another broker; or
(b) a receiving broker;
includes a financial services licensee.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Effect on certain conduct of transition to licensed markets and licensed CS facilities
Division 30
Regulation 10.2.163
Corporations Regulations 2001 175
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) A reference in subsection 1209(5B) of the old Corporations Act to
the brokers concerned includes a financial services licensee.
10.2.163 Accounts to be kept by futures brokers
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 3 of the table in section 1430
of the Act.
(2) A reference in subparagraph 1213(2)(b)(vii) of the old
Corporations Act to the business rules of a futures exchange
includes the operating rules of a licensed market for derivatives.
(3) A reference in subparagraph 1213(2)(b)(vii) of the old
Corporations Act to the futures market of a futures exchange
includes a licensed market for derivatives.
(4) A reference in paragraph 1213(4)(d) of the old Corporations Act to
another futures broker includes a financial services licensee.
(5) A reference in subsection 1213(5) of the old Corporations Act to a
futures exchange includes an operator of a licensed market for
derivatives.
(6) A reference in subsection 1213(5) of the old Corporations Act to a
member includes a participant of a licensed market for derivatives.
(7) A reference in subsection 1213(5) of the old Corporations Act to
recording a matter pursuant to subsection 1270(3) of the old
Corporations Act includes recording a matter for section 1101C of
the amended Corporations Act.
10.2.164 Property in custody of futures broker
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 3 of the table in section 1430
of the Act.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 30 Effect on certain conduct of transition to licensed markets and licensed CS
facilities
Regulation 10.2.165
176 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) A reference in paragraph 1214(1)(e) of the old Corporations Act to
the business rules of a futures exchange that maintained or
provided a futures market includes the operating rules of a licensed
market for derivatives.
10.2.165 Auditor to report to ASIC in certain cases
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 3 of the table in section 1430
of the Act.
(2) A reference in subsection 1220(1) of the old Corporations Act to a
futures exchange of which a broker is a member includes:
(a) the operator of a licensed market for derivatives; and
(b) the operator of a licensed CS facility that provides its
services for the clearing and settlement of transactions
effected through that licensed market.
(3) A reference in paragraph 1220(1)(b) of the old Corporations Act to
a futures exchange of which a broker is a member includes:
(a) the operator of a licensed market for derivatives; and
(b) the operator of a licensed CS facility that provides its
services for the clearing and settlement of transactions
effected through that licensed market.
10.2.166 Defamation
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 3 of the table in section 1430
of the Act.
(2) A reference in paragraph 1222(1)(b) of the old Corporations Act to
a futures exchange, a clearing house for a futures exchange, or a
futures association includes:
(a) the operator of a licensed market for derivatives; and
(b) the operator of a licensed CS facility that provides its
services for the clearing and settlement of transactions
effected through a licensed market for derivatives.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Effect on certain conduct of transition to licensed markets and licensed CS facilities
Division 30
Regulation 10.2.167
Corporations Regulations 2001 177
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.167 Power of Court to restrain dealings with futures broker’s
bank accounts
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 3 of the table in section 1430
of the Act.
(2) A reference in section 1224 of the old Corporations Act to a
member of a futures organisation includes a participant of a
licensed market for derivatives.
(3) A reference in subsection 1224(2) of the old Corporations Act to a
futures organisation includes a market licensee.
10.2.168 Power of Court to restrain dealings with futures broker’s
bank accounts
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 3 of the table in section 1430
of the Act.
(2) A reference in section 1226 of the old Corporations Act to a futures
organisation includes the operator of a licensed market for
derivatives.
10.2.169 Sequence of transmission and execution of orders
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 3 of the table in section 1430
of the Act.
(2) A reference in subsection 1266(1) of the old Corporations Act to a
futures market includes a licensed market for derivatives.
(3) A reference in paragraph 1266(4)(c) of the old Corporations Act to
the business rules of a futures organisation of which a futures
broker is a member includes the operating rules of a licensed
market for derivatives of which the broker is a participant.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 30 Effect on certain conduct of transition to licensed markets and licensed CS
facilities
Regulation 10.2.170
178 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) A reference in subsection 1266(5) of the old Corporations Act to a
member of a futures exchange includes a participant of a licensed
market for derivatives.
(5) A reference in subsection 1266(5) of the old Corporations Act to a
trading floor of a futures exchange includes a trading floor of a
licensed market for derivatives.
(6) A reference in subsection 1266(6) of the old Corporations Act to
the business rules of a futures organisation of which a broker is a
member includes the operating rules of a licensed market of which
the broker is a participant.
10.2.170 Dealings by employees of futures brokers and futures
advisers
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 3 or 4 of the table in
section 1430 of the Act.
(2) A reference in subsection 1267(7), (9) or (10) of the old
Corporations Act to a futures exchange includes a licensed market
for derivatives.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Effect on fundraising of transition to licensed markets and licensed CS facilities
Division 31
Regulation 10.2.171
Corporations Regulations 2001 179
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 31—Effect on fundraising of transition to licensed
markets and licensed CS facilities
10.2.171 Sale offers that need disclosure
(1) For section 1444 of the Act, this regulation applies in relation to a
managed investment product.
(2) A reference in subparagraph 707(2)(b)(ii) of the old Corporations
Act to a stock market of a securities exchange includes a relevant
financial market.
(3) A reference in subparagraph 707(5)(a)(ii) of the old Corporations
Act to a stock market of a securities exchange includes a relevant
financial market on which the securities mentioned in that
subparagraph were quoted.
10.2.172 Prospectus content—specific disclosures
(1) For section 1444 of the Act, this regulation applies in relation to a
managed investment product.
(2) A reference in subsection 711(5) of the old Corporations Act to a
stock market of a securities exchange includes a financial market
(whether in Australia or elsewhere).
(3) A reference in subsection 711(5) of the old Corporations Act to a
stock market includes a financial market (whether in Australia or
elsewhere).
(4) A reference in subsection 711(5) of the old Corporations Act to a
securities exchange includes the operator of a financial market
(whether in Australia or elsewhere).
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 31 Effect on fundraising of transition to licensed markets and licensed CS
facilities
Regulation 10.2.173
180 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.173 Issuing or transferring the securities under a disclosure
document
(1) For section 1444 of the Act, this regulation applies in relation to a
managed investment product.
(2) A reference in subsection 723(3) of the old Corporations Act to a
stock market of a securities exchange (whether in Australia or
elsewhere) includes a financial market (whether in Australia or
elsewhere).
10.2.174 Choices open to person making an offer if disclosure
document condition not met or disclosure document
defective
(1) For section 1444 of the Act, this regulation applies in relation to a
managed investment product.
(2) A reference in paragraph 724(1)(b) of the old Corporations Act to a
stock market of a securities exchange (whether in Australia or
elsewhere) includes a financial market (whether in Australia or
elsewhere).
10.2.175 Restrictions on advertising and publicity
(1) For section 1444 of the Act, this regulation applies in relation to a
managed investment product.
(2) A reference in paragraph 734(7)(a) of the old Corporations Act to a
securities exchange includes a market operator.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Effect on product disclosure of transition to licensed markets and licensed CS facilities
Division 32
Regulation 10.2.176
Corporations Regulations 2001 181
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 32—Effect on product disclosure of transition to
licensed markets and licensed CS facilities
10.2.176 Offers that do not need disclosure
(1) For section 1444 of the Act, this regulation applies in relation to a
managed investment product.
(2) A reference in subsection 708(10) of the old Corporations Act to a
licensed dealer includes a financial services licensee.
(3) A reference in subsection 708(11) of the old Corporations Act to:
(a) a person who is a licensed or exempt dealer; or
(b) a person who is a licensed or exempt investment adviser;
includes a financial services licensee.
10.2.177 Prospectus content—general disclosure test
(1) For section 1444 of the Act, this regulation applies in relation to a
managed investment product.
(2) A reference in paragraph 710(3)(e) of the old Corporations Act to a
stockbroker to an issue or sale includes, in relation to a stockbroker
that participates in any way in the preparation of the prospectus for
the issue or sale, a person named in the prospectus as a financial
services licensee that is involved in the issue or sale.
10.2.178 Prospectus content—specific disclosures
(1) For section 1444 of the Act, this regulation applies in relation to a
managed investment product.
(2) A reference in paragraph 711(4)(e) of the old Corporations Act to a
stockbroker includes a financial services licensee named in the
prospectus for the issue or sale as a financial services licensee that
is involved in the issue or sale.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 32 Effect on product disclosure of transition to licensed markets and licensed
CS facilities
Regulation 10.2.179
182 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.179 Futures broker to give certain information to prospective
client
(1) For section 1444 of the Act, this regulation applies in relation to a
derivative.
(2) A reference in subsection 1210(3) of the old Corporations Act to a
futures broker includes a financial services licensee.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Effect on Corporations Regulations 2001 of transition of financial service providers and
transition to licensed markets and licensed CS facilities Division 33
Regulation 10.2.180
Corporations Regulations 2001 183
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 33—Effect on Corporations Regulations 2001 of
transition of financial service providers and
transition to licensed markets and licensed CS
facilities
10.2.180 Licence conditions—investment advice to retail investors
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
(2) A reference in subregulation 7.3.02B(8) of the old Corporations
Regulations to:
(a) the holder of a dealers licence; or
(b) the holder of an investment advisers licence;
includes a financial services licensee.
10.2.181 Exemption from licensing—certain dealings
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal mentioned in item 5 of the table in section 1430
of the Act.
(2) A reference in paragraph 7.3.10A(b) of the old Corporations
Regulations to a life insurance broker within the meaning of the
Insurance (Agents and Brokers) Act 1984 includes the regulated
principal.
10.2.182 Exemption from licensing—managed investment schemes
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal that is a body corporate.
(2) A reference in subregulation 7.3.11(3) of the old Corporations
Regulations to Chapter 6D of the Act includes Chapter 7 of the
amended Corporations Act.
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Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 33 Effect on Corporations Regulations 2001 of transition of financial service
providers and transition to licensed markets and licensed CS facilities
Regulation 10.2.183
184 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.183 Exempt dealer
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
(2) A reference in regulation 7.4.01 of the old Corporations
Regulations to a member of a securities exchange includes a
participant of a licensed market.
10.2.184 Exempt securities and interests
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
(2) A reference in regulation 7.4.02 of the old Corporations
Regulations to Chapter 6D of the Act includes Chapter 7 of the
amended Corporations Act.
10.2.185 Transactions in prescribed circumstances
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
(2) A reference in regulation 7.4.03 of the old Corporations
Regulations to a securities exchange in Australia includes a
licensed market.
(3) A reference in regulation 7.4.03 of the old Corporations
Regulations to persons who are members of a securities exchange
in Australia includes persons who are participants of a licensed
market.
10.2.186 Exempted transaction
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
(2) A reference in regulation 7.4.04 of the old Corporations
Regulations to Business Rules includes operating rules within the
meaning of section 761A of the amended Corporations Act.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Effect on Corporations Regulations 2001 of transition of financial service providers and
transition to licensed markets and licensed CS facilities Division 33
Regulation 10.2.187
Corporations Regulations 2001 185
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.2.187 Charging brokerage on principal transactions
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
(2) A reference in subregulation 7.4.04A(1) of the old Corporations
Regulations to a member of a securities exchange includes a
participant of a licensed market.
10.2.188 Exemption from subsection 844(2) of old Corporations Act
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
(2) A reference in regulation 7.4.05 of the old Corporations
Regulations to a member of a stock exchange includes a participant
of a licensed market.
(3) A reference in regulation 7.4.05 of the old Corporations
Regulations to the business rules of a stock exchange includes the
operating rules of a licensed market.
10.2.189 Exemption: Part 8.3 of old Corporations Act—certain
futures contracts
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
(2) A reference in paragraph (a) of the definition of investment
manager in subregulation 8.3.02(1) of the old Corporations
Regulations to the holder of a dealers licence includes a financial
services licensee.
(3) A reference in subparagraph 8.3.02(2)(c)(i) of the old Corporations
Regulations to a member of a futures exchange includes a
participant of a licensed market for derivatives.
(4) A reference in subparagraph 8.3.02(2)(c)(i) of the old Corporations
Regulations to the business rules of a futures exchange includes the
operating rules of a licensed market for derivatives.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 33 Effect on Corporations Regulations 2001 of transition of financial service
providers and transition to licensed markets and licensed CS facilities
Regulation 10.2.190
186 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(5) A reference in subparagraph 8.3.02(2)(c)(ii) of the old
Corporations Regulations to a member of a futures exchange
includes a participant of a licensed market for derivatives.
(6) A reference in subparagraph 8.3.02(2)(d)(i) of the old Corporations
Regulations to a dealers licence includes a financial services
licence that authorises the operation of a registered managed
investment scheme.
10.2.190 Exemption of certain transactions from subsection 1206(1)
of old Corporations Act
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
(2) A reference in paragraph 8.4.01(b) of the old Corporations
Regulations to a member of a clearing house of a futures exchange
includes a participant of a licensed CS facility that provides its
services for the clearing and settlement of transactions effected
through a licensed market for derivatives.
(3) A reference in regulation 8.4.01 of the old Corporations
Regulations to the business rules of a futures exchange includes the
operating rules of a licensed market for derivatives.
10.2.191 Exemption of certain transactions from subsection 1207(1)
of the old Corporations Act
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
(2) A reference in regulation 8.4.03 of the old Corporations
Regulations to a member of a clearing house of a futures exchange
includes a participant of a licensed CS facility that provides its
services for the clearing and settlement of transactions effected
through a licensed market for derivatives.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Effect on Corporations Regulations 2001 of transition of financial service providers and
transition to licensed markets and licensed CS facilities Division 33
Regulation 10.2.192
Corporations Regulations 2001 187
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) A reference in paragraph 8.4.03(d) of the old Corporations
Regulations to the business rules of a futures exchange includes the
operating rules of a licensed market for derivatives.
10.2.192 Which futures broker to comply with subsection 1207(1) of
old Corporations Act in relation to certain transactions
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
(2) A reference in regulation 8.4.03A of the old Corporations
Regulations to a futures broker includes a financial services
licensee.
10.2.193 Exemption of certain transactions from paragraphs
1207(1)(g) and (h) of old Corporations Act
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
(2) A reference in paragraph 8.4.04(b) of the old Corporations
Regulations to a member of a clearing house of a futures exchange
includes a participant of a licensed CS facility that provides its
services for the clearing and settlement of transactions effected
through a licensed market for derivatives.
(3) A reference in paragraph 8.4.04(d) of the old Corporations
Regulations to the business rules of a futures exchange includes the
operating rules of a licensed market for derivatives.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 34 Effect on certain instruments of transition of financial service providers
and transition to licensed markets and licensed CS facilities
Regulation 10.2.194
188 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 34—Effect on certain instruments of transition of
financial service providers and transition to
licensed markets and licensed CS facilities
10.2.194 References to certain matters
(1) For section 1444 of the Act, this regulation applies in relation to:
(a) a regulated principal; and
(b) the following instruments:
(i) an approval of a stock market under subsection 770A(2)
of the old Corporations Act;
(ii) a declaration of an exempt stock market under
subsection 771(1) of the old Corporations Act;
(iii) a declaration of an exempt futures market under
subsection 1127(1) of the old Corporations Act.
(2) A reference in an instrument to a securities dealer’s licence
includes a Australian financial service licence that authorises the
holder to deal in securities.
(3) A reference in an instrument to the business rules of a securities
exchange or a stock exchange includes the operating rules of a
licensed market for securities.
(4) A reference in an instrument to a person who is not a retail investor
within the meaning of subregulation 7.3.02B(8) of the old
Corporations Regulations includes a professional investor within
the meaning of section 9 of the Act.
(5) A reference in an instrument to:
(a) a prospectus; or
(b) a replacement prospectus;
includes a Product Disclosure Statement.
(6) A reference in an instrument to a supplementary prospectus
includes a supplementary Product Disclosure Statement.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Effect on certain instruments of transition of financial service providers and transition to
licensed markets and licensed CS facilities Division 34
Regulation 10.2.194
Corporations Regulations 2001 189
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(7) A reference in an instrument to the Commission includes ASIC.
(8) A reference in an instrument to the ASC includes ASIC.
(9) A reference in an instrument to a futures brokers licence includes
an Australian financial services licence that authorises the holder to
deal in derivatives.
(10) A reference in an instrument to a futures licensee includes a person
who holds an Australian financial services licence that authorises
the holder to deal in derivatives.
(11) A reference in an instrument to Division 2 of Part 4.1 of the old
Corporations Act includes Division 2 of Part 5B.2 of the Act.
(12) A reference in an instrument to section 345 of the old Corporations
Act includes section 601CF of the Act.
(13) A reference in an instrument to a clearing house includes a licensed
clearing and settlement facility.
(14) A reference in an instrument to an approved futures exchange
includes a licensed market operated by:
(a) Sydney Futures Exchange Limited; or
(b) SFE Corporation Limited; or
(c) ASX Futures Exchange Pty Limited.
(15) A reference in an instrument to a recognised futures exchange
includes a recognised futures exchange mentioned in Schedule 11
to the old Corporations Regulations.
(16) A reference in an instrument to a futures market of any exchange
includes a financial market in relation to derivatives operated by a
market licensee.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 35 Streamlined licensing
Regulation 10.2.195
190 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 35—Streamlined licensing
10.2.195 Suspension or cancellation of streamlined licence
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee to which the streamlined licensing
procedure in section 1433 of the Act applied when the licensee’s
Australian financial services licensee was granted.
(2) If the financial services licensee is an individual,
paragraph 915C(1)(b) of the Act applies to the financial services
licensee:
(a) as if ASIC had been satisfied in the terms of
subsection 913B(2) of the Act (dealing with whether the
financial services licensee is of good fame and character)
when the Australian financial services licence was granted;
and
(b) to the extent necessary to allow ASIC to consider whether
there is no reason to believe that the financial services
licensee is not of good fame or character.
(3) If the financial services licensee is not an individual,
paragraph 915C(1)(b) of the Act applies to the financial services
licensee:
(a) as if ASIC had been satisfied in the terms of
subsection 913B(3) of the Act (dealing with whether the
financial services licensee or its representatives are of good
fame and character) when the Australian financial services
licence was granted; and
(b) to the extent necessary to allow ASIC to consider whether
there is no reason to believe that the financial services
licensee or its representatives are not of good fame or
character.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Insurance multi-agents Division 36
Regulation 10.2.196
Corporations Regulations 2001 191
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 36—Insurance multi-agents
10.2.196 Application by holder of qualified licence
(1) For section 1444 of the Act, this regulation applies in relation to a
person if:
(a) the person is an insurance multi-agent within the meaning of
section 1434 of the Act; and
(b) the person holds an Australian financial services licence
granted in accordance with the procedures mentioned in that
section; and
(c) the person applies, at the end of the transition period in
relation to the person, under section 913A of the Act, for an
Australian financial services licence; and
(d) section 1434 of the Act does not apply in relation to the
application for an Australian financial services licence; and
(e) ASIC proposes to consider only the matters mentioned in
paragraphs 912A(1)(e) and (f) of the Act rather than all of the
matters mentioned in subsection 912A(1) of the Act.
(2) Paragraph 913B(1)(b) of the Act applies to the consideration of the
application as if the reference to obligations that will apply under
section 912A of the Act were a reference to the obligations that
will apply under paragraphs 912A(1)(e) and (f) of the Act.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 37 Hawking of managed investment products
Regulation 10.2.197
192 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 37—Hawking of managed investment products
10.2.197 Hawking interest in managed investment scheme
(1) For section 1444 of the Act, this regulation applies in relation to
interests in managed investment schemes.
(2) If Division 2 of Part 7.9 of the Act applies to an interest in a
managed investment scheme:
(a) section 992AA of the Act applies to the interest; and
(b) section 736 of the old Corporations Act does not apply to the
interest.
(3) If Division 2 of Part 7.9 of the Act does not apply to an interest in a
managed investment scheme, sections 992A and 992AA of the Act
do not apply to the interest.
10.2.198 Hawking financial product—other arrangements
(1) For section 1444 of the Act, this regulation applies in relation to a
financial product.
(2) If Division 2 of Part 7.9 of the Act does not apply to the financial
product, a reference in section 992A of the Act to a Product
Disclosure Statement in relation to the financial product includes:
(a) in relation to a derivative—information mentioned in
section 1210 of the old Corporations Act; and
(b) in relation to a superannuation product—information
mentioned in section 153 or 159 of the SIS Act, as in force
immediately before the FSR commencement; and
(c) in relation to an RSA product—information mentioned in
section 56 of the RSA Act, as in force immediately before the
FSR commencement; and
(d) in relation to a managed investment product—a disclosure
document for the product.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Hawking of managed investment products Division 37
Regulation 10.2.198
Corporations Regulations 2001 193
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) If Division 2 of Part 7.9 of the Act does not apply to the financial
product, subsection 992A(3) of the Act applies in relation to a
financial product that is not mentioned in subregulation (2) as if
paragraphs 992A(3)(c), (d) and (e) were omitted.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 38 Security bonds issued before FSR commencement
Regulation 10.2.199
194 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 38—Security bonds issued before FSR
commencement
10.2.199 Security bonds
(1) For section 1444 of the Act, this regulation applies in relation to a
financial services licensee who became a regulated principal
mentioned in item 1 or 2 of the table in section 1430 of the Act at
the FSR commencement.
(2) Regulations 7.3.04, 7.3.06 and 7.3.07 of the old Corporations
Regulations, and any associated provisions, continue to apply in
relation to the regulated principal’s regulated activities.
(3) The regulations mentioned in subregulation (2) continue to apply
after the end of the transition period for the regulated principal.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Disclosure documents Division 39
Regulation 10.2.200
Corporations Regulations 2001 195
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 39—Disclosure documents
10.2.200 Disclosure documents—cooling-off period
(1) For section 1444 of the Act, this regulation applies in relation to a
document if:
(a) the document is a prospectus or other disclosure document
for a financial product; and
(b) the issuer of the financial product is a regulated principal to
which Division 2 of Part 7.9 of the Act does not apply in
relation to the financial product; and
(c) the particular document:
(i) was publicly available; or
(ii) had been distributed to users; or
(iii) had been lodged with ASIC; or
(iv) was otherwise in existence and in use, or available for
use;
before the FSR commencement.
(2) The issuer of the financial product is not civilly or criminally liable
in relation to information about the cooling off regime applying
after the FSR commencement if:
(a) the confirmation of the transaction:
(i) provides a statement of the cooling-off regime that
applies in respect of the acquisition of that product; and
(ii) states that the information in the confirmation of the
transaction supersedes the information in that document;
or
(b) the responsible person amends the disclosure document to
include information on any cooling-off regime.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 40 Telephone monitoring during takeovers
Regulation 10.2.201
196 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 40—Telephone monitoring during takeovers
10.2.201 Telephone monitoring
(1) For section 1444 of the Act, this regulation applies in relation to a
takeover bid:
(a) for which the bid period starts before the FSR
commencement; and
(b) to which Subdivision D of Division 5 of Part 6.5 of the Act
would apply.
(2) Subdivision D of Division 5 of Part 6.5 of the Act does not apply
to the takeover bid.
10.2.201A References to financial services licensees
For section 1444 of the Act:
(a) a reference in paragraph 648J(4)(c) of the Act to a
professional investor includes the holder of a licence of any
type granted or issued under the old Corporations Act; and
(b) a reference in subregulation 6.5.01(3) to a financial services
licensee includes the holder of a licence of any type granted
or issued under the old Corporations Act.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Requirements if Product Disclosure Statement is not in existence Division 41
Regulation 10.2.202
Corporations Regulations 2001 197
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 41—Requirements if Product Disclosure
Statement is not in existence
10.2.202 Documents equivalent to Product Disclosure Statement
(1) For section 1444 of the Act, a reference in paragraph 949A(2)(c) of
the Act to a Product Disclosure Statement includes:
(a) in relation to a managed investment product to which
Division 2 of Part 7.9 of the Act does not yet apply—a
disclosure document for the product; and
(b) in relation to a derivative to which Division 2 of Part 7.9 of
the Act does not yet apply—information mentioned in
section 1210 of the old Corporations Act; and
(c) in relation to a superannuation product to which Division 2 of
Part 7.9 of the Act does not yet apply—information
mentioned in section 153 or 159 of the SIS Act, as in force
immediately before the FSR commencement; and
(d) in relation to an RSA product to which Division 2 of Part 7.9
of the Act does not yet apply—information mentioned in
section 56 of the RSA Act, as in force immediately before the
FSR commencement.
(2) For section 1444 of the Act, subsection 949A(2) of the Act applies
in relation to a financial product:
(a) to which Division 2 of Part 7.9 of the Act does not apply; and
(b) that is not mentioned in subregulation (1);
as if paragraph 949A(2)(c) were omitted.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 42 Dealing with money received for financial product before the product is
issued
Regulation 10.2.203
198 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 42—Dealing with money received for financial
product before the product is issued
10.2.203 Payment of money into account
For section 1444 of the Act, a reference in paragraph 1017E(1)(b)
of the Act to a Product Disclosure Statement for a financial product
includes a disclosure document for the product.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Arrangements related to deposits with stock exchanges Division 43
Regulation 10.2.204
Corporations Regulations 2001 199
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 43—Arrangements related to deposits with stock
exchanges
10.2.204 Withdrawals from trust account
(1) For section 1444 of the Act, this regulation applies to the extent
that section 869 of the old Corporations Act continues to apply on
and after the FSR commencement.
(2) Section 869 of the old Corporations Act continues to apply as if
paragraph 869(1)(b) were omitted.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 44 Superannuation to which arrangements apply under the Family Law Act
1975
Regulation 10.2.205
200 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 44—Superannuation to which arrangements
apply under the Family Law Act 1975
10.2.205 Application of amendments
(1) For section 1444 of the Act, this regulation applies in relation to a
regulated principal.
(2) Subject to subregulation (3), on and after the FSR commencement,
the regulated principal must deal with a matter to which the Family
Law Legislation Amendment (Superannuation) Act 2001 applies as
if:
(a) all amendments of the SIS Act enacted before the FSR
commencement were in force on the FSR commencement;
and
(b) all amendments of the SIS Regulations enacted before the
FSR commencement were in force on the FSR
commencement; and
(c) all amendments of the RSA Act enacted before the FSR
commencement were in force on the FSR commencement;
and
(d) all amendments of the RSA Regulations enacted before the
FSR commencement were in force on the FSR
commencement; and
(e) all amendments of the Family Law (Superannuation)
Regulations 2001 enacted before the FSR commencement
were in force on the FSR commencement.
(3) Subregulation (2) applies only to the extent that dealing with a
matter in accordance with that subregulation is not inconsistent
with compliance with:
(a) the following provisions, and any associated provisions:
(i) section 153, and all the provisions of Divisions 3 and 4
of Part 19, of the Superannuation Industry (Supervision)
Act 1993 as in force immediately before the FSR
commencement;
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Superannuation to which arrangements apply under the Family Law Act 1975 Division
44
Regulation 10.2.205
Corporations Regulations 2001 201
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) the version of section 153A of that Act that was
provided for in Modification Declaration no. 15 as in
force immediately before the FSR commencement,
being a declaration of modification made under
section 332 of that Act; and
(b) section 51, and all the provisions of Divisions 4 and 5 of
Part 5, of the Retirement Savings Accounts Act 1997 as in
force immediately before the FSR commencement, and any
associated provisions.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 45 Arrangements relating to certain reporting periods
Regulation 10.2.206
202 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 45—Arrangements relating to certain reporting
periods
10.2.206 Fund information for retail clients for financial products
that have an investment component: superannuation
(1) For section 1444 of the Act, this regulation applies in relation to a
fund reporting period under Subdivision 2.4.1 of the SIS
Regulations that had not ended before the FSR commencement.
(2) The fund reporting period for the financial product, worked out in
accordance with Subdivision 2.4.1, is taken to be a fund reporting
period for Subdivision 5.5 of Part 7.9 of these Regulations.
10.2.207 Periodic statements for retail clients for financial products
that have an investment component
(1) For section 1444 of the Act, this regulation applies if:
(a) a person acquired a financial product, as described in
subsection 1017D(1) of the Act; and
(b) the issuer of the financial product was a regulated principal in
relation to the financial product.
(2) The reporting period for the financial product, worked out in
accordance with the old Corporations Act, is taken to be a
reporting period for the Act.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Arrangements relating to passbook accounts Division 46
Regulation 10.2.208
Corporations Regulations 2001 203
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 46—Arrangements relating to passbook accounts
10.2.208 Periodic statements
(1) For section 1444 of the Act, this regulation applies in relation to a
basic deposit product:
(a) for which the holder of the product is provided with, and
keeps, a document commonly referred to as a ‘passbook’ into
which entries of deposits to and withdrawals from the
product are recorded by the product issuer; and
(b) that was issued before the FSR commencement.
(2) Section 1017D of the Act does not apply in relation to the basic
deposit product.
10.2.209 Confirmation of transactions
(1) For section 1444 of the Act, this regulation applies in relation to a
basic deposit product:
(a) for which the holder of the product is provided with, and
keeps, a document commonly referred to as a ‘passbook’ into
which entries of deposits to and withdrawals from the
product are recorded by the product issuer; and
(b) that was issued before the FSR commencement.
(2) Section 1017F of the Act does not apply in relation to the basic
deposit product.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 47 Agreements with unlicensed persons relating to the provision of financial
services
Regulation 10.2.210
204 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 47—Agreements with unlicensed persons relating
to the provision of financial services
10.2.210 Agreements
(1) For section 1444 of the Act, this regulation applies if:
(a) a person (person 1) enters into an agreement with another
person (person 2) in the course of an activity conducted by
person 2; and
(b) at that time, Part 7.6 of the Act does not apply to person 2 in
relation to the activity; and
(c) the activity would constitute carrying on a financial services
business if Part 7.6 of the Act applied to person 2 in relation
to the activity; and
(d) the agreement is not completed when Part 7.6 of the Act first
applies to person 2 in relation to the activity; and
(e) when Part 7.6 of the Act first applies to person 2 in relation
to the activity, person 2:
(i) does not hold an Australian financial services licence
covering the activity; and
(ii) is not exempt from the requirement to hold that licence.
(2) Division 11 of Part 7.6 of the Act applies in relation to the
agreement to the extent that that Division is not inconsistent with
Division 2 of Part 7.3 of the old Corporations Act.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Arrangements for Lloyd’s Division 48
Regulation 10.2.211
Corporations Regulations 2001 205
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 48—Arrangements for Lloyd’s
10.2.211 Lloyd’s
(1) For section 1444 of the Act, subsection 911A(1) of the Act does
not apply in relation to a financial service:
(a) that is provided by:
(i) a Lloyd’s underwriting member; or
(ii) a listed Lloyd’s syndicate of underwriting members; and
(b) to which subregulation (2) applies.
(2) The financial service must be a service in relation to which the
Lloyd’s underwriting member, or the syndicate, is regulated by
APRA at any time within 2 years after the FSR commencement.
(3) In this regulation:
Lloyd’s means the society incorporated by the Act of the United
Kingdom known as the Lloyd’s Act 1871.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 49 Hawking of certain financial products
Regulation 10.2.212
206 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 49—Hawking of certain financial products
10.2.212 Hawking of managed investment products
(1) For section 1444 of the Act, a reference in subsection 992AA(2) of
the Act to a financial services licensee includes a regulated
principal.
(2) Subregulation (1) ceases to apply in relation to a regulated
principal at the end of the transition period in relation to the
regulated principal.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Warrants or options to acquire issued securities Division 50
Regulation 10.2.213
Corporations Regulations 2001 207
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 50—Warrants or options to acquire issued
securities
10.2.213 Warrants or options to acquire issued securities
For section 1444 of the Act, if a warrant or option to acquire issued
securities by way of transfer is a financial product:
(a) to which the definition of securities in subsection 92(3) of
the old Corporations Act applied; and
(b) to which Chapter 6D of that Act applied;
Chapter 6D is taken to apply during the transition period for those
products.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 52 Winding up of fidelity funds if market ceases to operate
Regulation 10.2.215
208 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 52—Winding up of fidelity funds if market ceases
to operate
10.2.215 Winding up of fidelity funds if market ceases to operate
(1) For subsection 1416(1) of the Act, section 886B of the Act applies
in relation to a fidelity fund kept by the operator of a financial
market that, at a time in the transition period for the market, ceases
to operate (otherwise than because of a merger).
(2) For paragraph 886B(c) of the Act, subsection (3) applies if, at a
time during the transition period for a financial market on which
derivatives are traded, a person (the first person) ceases to operate
the market (other than because of a merger), and another person
(the second person) that is a related body corporate operates a
financial market:
(a) in relation to which, or a segment of which, there are
required, after the end of the transition period, to be
compensation arrangements approved in accordance with
Division 3 of Part 7.5 of the Act; and
(b) on which derivatives are also traded.
(3) The assets of the fidelity fund held by the first person for the
market it had operated may be:
(a) transferred to the fidelity fund held by the second person for
the market, or segment of the market, that it operates; or
(b) held as, or as part of, the fidelity fund held for the market, or
segment of the market, operated by the second person.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional provisions relating to the Corporate Law Economic Reform Program
(Audit Reform and Corporate Disclosure) Act 2004 Part 10.5
Regulation 10.5.01
Corporations Regulations 2001 209
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 10.5—Transitional provisions relating to the
Corporate Law Economic Reform
Program (Audit Reform and Corporate
Disclosure) Act 2004
10.5.01 Adoption of auditing standards made by accounting
profession before commencement (Act ss 1455(1) and (3))
(1) For subsections 1455(1) and (3) of the Act:
(a) a standard (as in force from time to time) mentioned in the
table has effect, for the purposes of the Act, as if it had been
made by the AUASB under section 336 of the Act on 1 July
2004; and
(b) a standard mentioned in Part 1 of the table has effect as if it
specified that it applies to a financial reporting period ending
on or after 1 July 2004; and
(c) a standard mentioned in Part 2 of the table has effect as if it
specified that it applies to a financial reporting period
beginning on or after 15 December 2004; and
(d) a standard mentioned in Part 3 of the table has effect as if it
specified that it applies to a financial reporting period
beginning on or after 15 June 2005.
Item AUS
No.
Title
Part 1
101 104 Glossary of Terms
102 202 Objective and General Principles Governing an Audit of a Financial
Report
Note: This standard was issued in July 2002.
103 204 Terms of Audit Engagements
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.5 Transitional provisions relating to the Corporate Law Economic Reform
Program (Audit Reform and Corporate Disclosure) Act 2004
Regulation 10.5.01
210 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item AUS
No.
Title
104 206 Quality Control for Audit Work
Note: This standard was issued in July 2002.
105 208 Documentation
106 210 The Auditor’s Responsibility to Consider Fraud and Error in an Audit
of a Financial Report
Note: This standard was issued in January 2002.
107 212 Other Information in Documents Containing Audited Financial
Reports
108 214 Auditing in a CIS Environment
109 218 Consideration of Laws and Regulations in an Audit of a Financial
Report
110 302 Planning
111 304 Knowledge of the Business
112 306 Materiality and Audit Adjustments
113 402 Risk Assessments and Internal Controls
Note: This standard was issued in July 2002.
114 404 Audit Implications Relating to Entities Using a Service Entity
115 502 Audit Evidence
Note: This standard was issued in October 1995.
116 504 External Confirmations
117 506 Existence and Valuation of Inventory
118 508 Inquiry Regarding Litigation and Claims
119 510 Initial Engagements - Opening Balances
120 512 Analytical Procedures
121 514 Audit Sampling & Selective Testing Procedures
122 516 Audit of Accounting Estimates
123 518 Related Parties
124 520 Management Representations
125 522 Audit Evidence Implications of Externally Managed Assets of
Superannuation, Provident or Similar Funds
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional provisions relating to the Corporate Law Economic Reform Program
(Audit Reform and Corporate Disclosure) Act 2004 Part 10.5
Regulation 10.5.01
Corporations Regulations 2001 211
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item AUS
No.
Title
126 524 The Auditor’s Use of the Work of the Actuary and the Actuary’s Use
of the Work of the Auditor in Connection with the Preparation and
Audit of a Financial Report
127 526 Auditing Fair Value Measurements & Disclosures
128 602 Using the Work of Another Auditor
129 604 Considering the Work of Internal Auditing
130 606 Using the Work of an Expert
131 702 The Audit Report on a General Purpose Financial Report
132 704 Comparatives
133 706 Subsequent Events
134 708 Going Concern
135 710 Communication with Management on Matters Arising from an Audit
136 802 The Audit Report on Financial Information Other than a General
Purpose Financial Report
137 902 Review of Financial Reports
Part 2
201 202 Objective and General Principles Governing an Audit of a Financial
Report
Note: This standard was issued in February 2004.
201A 210 The Auditor’s Responsibility to Consider Fraud and Error in an Audit
of a Financial Report
Note: This standard was issued in June 2004.
202 402 Understanding the Entity and Its Environment and Assessing the Risks
of Material Misstatements
Note: This standard was issued in February 2004.
203 406 The Auditor’s Procedures In Response to Assessed Risks
204 502 Audit Evidence
Note: This standard was issued in February 2004.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.5 Transitional provisions relating to the Corporate Law Economic Reform
Program (Audit Reform and Corporate Disclosure) Act 2004
Regulation 10.5.01
212 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Item AUS
No.
Title
Part 3
301 206 Quality Control for Audits of Historical Financial Information
Note: This standard was issued in June 2004.
(2) In this regulation:
financial reporting period, for a company, registered scheme or
disclosing entity, means a financial year or a half-year for which
the company, registered scheme or disclosing entity must prepare a
financial report.
Note: Under section 292 of the Act, a disclosing entity, public company,
large proprietary company or registered scheme must prepare a
financial report for each financial year. Under section 302 of the Act,
a disclosing entity must prepare a financial report for each half-year.
Section 323D of the Act deals with financial years and half-years.
(3) Each standard mentioned in subregulation (1) ceases to have effect
in relation to a financial reporting period that ends after 29 June
2007.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional provisions relating to the Corporations Amendment (Financial Market
Supervision) Act 2010 Part 10.15
Regulation 10.15.01
Corporations Regulations 2001 213
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 10.15—Transitional provisions relating to the
Corporations Amendment (Financial
Market Supervision) Act 2010
10.15.01 Application of Part 10.15
For subsection 1513(1) of the Act, this Part deals with matters of a
transitional, application or saving nature relating to the
amendments and repeals made by Schedule 1 to the Corporations
Amendment (Financial Market Supervision) Act 2010 (the
amending Schedule).
10.15.02 Amendments not to apply to certain operators of licensed
markets
The amendments made by the amending Schedule do not apply to
the following operators of licensed markets:
(a) BGC Partners (Australia) Pty Limited;
(b) Bloomberg Tradebook Australia Pty Ltd;
(c) Mercari Pty Ltd;
(d) Yieldbroker Pty Limited.
Note: The requirement in subsection 798H(1) of the Act for an operator of a
licensed market to comply with the market integrity rules was
introduced by one of the amendments made by the amending
Schedule.
10.15.03 Transfer of documents
(1) This regulation applies if:
(a) an operator of a licensed market, a related body corporate of
the operator, or an employee of the operator, gives
information in confidence to ASIC; and
(b) the information relates to the operation of Part 7.2 of the Act;
and
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.15 Transitional provisions relating to the Corporations Amendment (Financial
Market Supervision) Act 2010
Regulation 10.15.04
214 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) the information was requested by, or given to, ASIC to help
ASIC exercise its powers or perform its functions under
Part 7.2A of the Act.
(2) The information does not cease to be the subject of legal
professional privilege solely because the information has been
given to ASIC.
(3) The operator or employee:
(a) has qualified privilege in respect of the giving of the
information to ASIC; and
(b) is not liable to any person in relation to the giving of the
information to ASIC.
(4) The giving of the information to ASIC is not to be taken to be:
(a) a contravention of a law, including a law relating to privacy
or confidentiality; or
(b) a breach of contract or duty to a person.
10.15.04 Notifications, consents, waivers, etc
(1) This regulation applies if:
(a) an operator of a licensed market gave a written waiver,
consent, recognition, accreditation, approval, determination,
exemption or notification to a participant in the licensed
market under the operating rules of the licensed market; and
(b) the power or obligation in the operating rules to give the
waiver, consent, recognition, accreditation, approval,
determination, exemption or notification is incorporated into
the market integrity rules.
(2) The waiver, consent, recognition, accreditation, approval,
determination, exemption or notification:
(a) is taken to have been given by ASIC under the market
integrity rules; and
(b) will continue in its existing form, and continue to have the
same effect, (as given under the operating rules) unless ASIC
determines that it should be amended or revoked.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional provisions relating to the Corporations Amendment (Financial Market
Supervision) Act 2010 Part 10.15
Regulation 10.15.05
Corporations Regulations 2001 215
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) ASIC may:
(a) determine that a waiver, consent, recognition, accreditation,
approval, determination, exemption or notification is no
longer appropriate; and
(b) determine, in writing, that the waiver, consent, recognition,
accreditation, approval, determination, exemption or
notification is amended or revoked as provided in the
determination.
(4) If ASIC proposes to make a determination under subregulation (3),
ASIC must give reasonable notice to the participant before making
the determination.
10.15.05 Notification given by participant to operator of licensed
market
(1) This regulation applies if:
(a) a participant in a licensed market gave the operator of the
licensed market a written notification or certification under
the operating rules of the licensed market; and
(b) the power or obligation in the operating rules to give the
notification or certification is incorporated into the market
integrity rules.
(2) The notification or certification:
(a) is taken to have been given to ASIC by the participant under
the market integrity rules; and
(b) will continue in its existing form, and continue to have the
same effect, (as given under the operating rules) unless ASIC
otherwise determines.
(3) ASIC may:
(a) determine that a notification or certification is no longer
appropriate; and
(b) determine, in writing, that the notification or certification is
amended or revoked as provided in the determination.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.15 Transitional provisions relating to the Corporations Amendment (Financial
Market Supervision) Act 2010
Regulation 10.15.06
216 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) If ASIC proposes to make a determination under subregulation (3),
ASIC must give reasonable notice to the participant before making
the determination.
10.15.06 Registers
If:
(a) an operator of a licensed market kept a register under, or in
relation to, the operating rules of the licensed market; and
(b) the relevant operating rules are incorporated into the market
integrity rules;
the register is taken to be kept by ASIC under, or in relation to, the
market integrity rules.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional provisions relating to Corporations Amendment (Further Future of
Financial Advice Measures) Act 2012 Part 10.18
Corporations Regulations 2001 217
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 10.18—Transitional provisions relating to
Corporations Amendment (Further Future
of Financial Advice Measures) Act 2012
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.19 Transitional matters relating to MySuper measures
Regulation 10.19.01
218 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 10.19—Transitional matters relating to
MySuper measures
10.19.01 Changes to product disclosure statements and periodic
statements
(1) The amendments made by items 7 to 68 and 70 to 86 of Schedule 1
to the Superannuation Legislation Amendment (MySuper
Measures) Regulation 2013 (the amending items) apply to:
(a) Product Disclosure Statements given:
(i) for a superannuation product—on or after 31 December
2013; or
(ii) for a managed investment product—on or after 1 July
2014; and
(b) periodic statements given under section 1017D of the Act in
relation to reporting periods ending:
(i) for a superannuation product—on or after 31 December
2013; or
(ii) for a managed investment product—on or after 1 July
2014.
(2) If:
(a) a Product Disclosure Statement is given during the transition
period; and
(b) were the amendments made by the amending items to apply
during the transition period, the Product Disclosure
Statement would comply with Schedule 10 or Schedule 10D
(as the case requires);
the Product Disclosure Statement is taken to comply with
Schedule 10 or Schedule 10D (as the case requires).
(3) If:
(a) a periodic statement under section 1017D of the Act is given
during the transition period; and
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional matters relating to MySuper measures Part 10.19
Regulation 10.19.01
Corporations Regulations 2001 219
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) were the amendments made by the amending items to apply
during the transition period, the periodic statement would
comply with Schedule 10;
the periodic statement is taken to comply with the Schedule.
(4) For the purposes of this regulation, the transition period is a
period:
(a) for a superannuation product—beginning on 1 July 2013 and
ending on 30 December 2013; or
(b) for a managed investment product—beginning on 1 July
2013 and ending on 30 June 2014.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.20 Transitional matters relating to relevant providers and persons who control
body corporate licensees
Division 1 Introduction
Regulation 10.20.01
220 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 10.20—Transitional matters relating to
relevant providers and persons who control
body corporate licensees
Division 1—Introduction
10.20.01 Simplified outline of this Part
Regulation 7.6.06B establishes a register of relevant providers that
contains information that is provided under Schedule 8D to these
Regulations.
The provisions in Schedule 8D begin to apply on 9 March 2015.
However, between 9 March 2015 and 30 September 2015, this Part
changes how those provisions apply.
Initially, information is gathered on those who are relevant
providers between 1 January and 30 March 2015 (except if they
cease to be relevant providers before 9 March 2015).
A person who is required to lodge a notice under section 922D of
the Act in relation to relevant providers must choose a day in the
period between 1 January and 30 March 2015 (called the start day).
The first notice that the person lodges under section 922D must
cover all of the person’s relevant providers on the start day. The
notice must include all information, except information about
educational qualifications and professional memberships. That
information is provided in a later notice.
A person may also be required to lodge a notice under section 922J
in relation to those who control a body corporate licensee on the
start day.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional matters relating to relevant providers and persons who control body
corporate licensees Part 10.20
Introduction Division 1
Regulation 10.20.02
Corporations Regulations 2001 221
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Some of the information initially provided may change. Significant
changes (such as changes about the kinds of relevant financial
products the relevant provider may provide advice on and changes
to financial services licensees) can be notified to ASIC after 1 May
2015. Other changes can be notified to ASIC after 1 October 2015.
Persons may become relevant providers or begin to control body
corporate licensees after 30 March 2015 but before 30 September
2015. The provisions apply in a similar way to those persons.
From 1 October 2015, the provisions in Schedule 8D to these
Regulations apply as they appear in that Schedule.
10.20.02 Object of this Part
This Part provides transitional and application provisions in
relation to:
(a) Schedule 8D to these Regulations which notionally inserts
sections 922C to 922P into the Act; and
(b) the register of relevant providers established under
regulation 7.6.06B.
10.20.03 Definitions
References to sections 922C to 922P of the Act
(1) A reference in this Part to any of sections 922C to 922P (or a
provision of that section) is a reference to that section (or
provision) of the Act as notionally inserted into the Act by
Schedule 8D to these Regulations.
Meaning of start day
(2) In this Part, start day has the meaning given by
subsection 10.20.05(1).
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.20 Transitional matters relating to relevant providers and persons who control
body corporate licensees
Division 2 General application provision for Schedule 8D
Regulation 10.20.04
222 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2—General application provision for Schedule 8D
10.20.04 General application provision for Schedule 8D
The modifications of the Act in Schedule 8D apply, subject to this
Part, on and after 9 March 2015 in relation to:
(a) a person who is a relevant provider immediately before that
day; and
(b) a person who becomes a relevant provider on or after that
day; and
(c) a body corporate that is a body corporate licensee
immediately before that day; and
(d) a body corporate that becomes a body corporate licensee on
or after that day.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional matters relating to relevant providers and persons who control body
corporate licensees Part 10.20
Pre-existing and new relevant providers and controllers during the transitional period
Division 3
Regulation 10.20.05
Corporations Regulations 2001 223
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 3—Pre-existing and new relevant providers and
controllers during the transitional period
10.20.05 Application of this Division
(1) A person must choose a day (the start day) between 1 January
2015 and 30 March 2015 if, immediately before 9 March 2015, the
person is:
(a) a financial services licensee; and
(b) authorised to provide personal advice in relation to relevant
financial products to retail clients.
Pre-existing relevant providers and controllers
(2) This Division applies in relation to:
(a) a person who is a relevant provider immediately before the
start day chosen by the person who, as a result of
regulation 10.20.06, is required to lodge a notice under
section 922D in relation to the relevant provider; and
(b) a person who controls a body corporate licensee immediately
before the start day chosen by the person who, as a result of
regulation 10.20.10, is required to lodge a notice under
section 922J in relation to the body corporate licensee.
Persons who become relevant providers after initial information
gathering period but before 30 September 2015
(3) This Division also applies in relation to:
(a) a person who becomes a relevant provider:
(i) if the person (the notice lodger) who is required to
lodge a notice under section 922D in relation to the
relevant provider has chosen a start day—after the start
day for the notice lodger and before 30 September 2015;
or
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.20 Transitional matters relating to relevant providers and persons who control
body corporate licensees
Division 3 Pre-existing and new relevant providers and controllers during the
transitional period
Regulation 10.20.06
224 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(ii) otherwise—after 30 March 2015 and before
30 September 2015; and
(b) a person (the controller) who begins to control a body
corporate licensee:
(i) if the person (the notice lodger) who is required to
lodge a notice under section 922J in relation to the
controller has chosen a start day—after the start day for
the notice lodger and before 30 September 2015; or
(ii) otherwise—after 30 March 2015 and before
30 September 2015.
10.20.06 Notices under section 922D—initial lodgement of
information
(1) Section 922D applies in relation to a relevant provider referred to
in paragraph 10.20.05(2)(a) as if:
(a) subsection 922D(1) required a notice to be lodged in relation
to the relevant provider as if the relevant provider had
become a relevant provider on the start day chosen by the
person who, as a result of this subregulation, is required to
lodge the notice; and
(b) subsection 922D(1) did not require the information in
paragraph 922E(1)(g) or 922F(1)(j) (information about
educational qualifications and professional memberships) to
be included in the notice; and
(c) subsection 922L(2) required the notice to be lodged within
the period:
(i) starting on 9 March 2015; and
(ii) ending on 30 March 2015.
Note 1: This notice does not include information about the relevant provider’s
educational qualifications or professional memberships. That
information is required to be lodged in a separate notice (see
regulation 10.20.07).
Note 2: After 30 March 2015, notices can be lodged normally under
section 922D (excluding information about educational qualifications
and professional memberships).
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional matters relating to relevant providers and persons who control body
corporate licensees Part 10.20
Pre-existing and new relevant providers and controllers during the transitional period
Division 3
Regulation 10.20.07
Corporations Regulations 2001 225
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) Section 922D applies in relation to a relevant provider referred to
in paragraph 10.20.05(3)(a) who becomes a relevant provider
before 23 May 2015 as if subsection 922D(1) did not require the
information in paragraph 922E(1)(g) or 922F(1)(j) (information
about educational qualifications and professional memberships) to
be included in the notice.
10.20.07 Notices under section 922D—later notice about educational
qualifications and professional memberships
(1) This section applies in relation to:
(a) a relevant provider referred to in paragraph 10.20.05(2)(a);
and
(b) a relevant provider referred to in paragraph 10.20.05(3)(a)
who becomes a relevant provider before 23 May 2015.
(2) Section 922D also applies in relation to the relevant provider as if:
(a) subsection 922D(1) required an additional notice to be
lodged in relation to the relevant provider; and
(b) the only information required to be included in the additional
notice under subsection 922D(1) was the information in
paragraph 922E(1)(g) or 922F(1)(j) (information about
educational qualifications and professional memberships);
and
(c) subsection 922L(2) required the additional notice to be
lodged within the period:
(i) starting on 23 May 2015; and
(ii) ending on 30 May 2015.
Note: After 30 May 2015, notices can be lodged normally under
section 922D.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.20 Transitional matters relating to relevant providers and persons who control
body corporate licensees
Division 3 Pre-existing and new relevant providers and controllers during the
transitional period
Regulation 10.20.08
226 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.20.08 Notices under section 922H—important changes before
30 April 2015
(1) This regulation applies if:
(a) a notice is lodged under section 922D in relation to a relevant
provider before 30 April 2015; and
(b) there is a change in a matter for the relevant provider at any
time during the period ending on that day; and
(c) the change relates to a matter that is:
(i) referred to in paragraph 922E(1)(b) or (d) or 922F(1)(c)
or (d) or subparagraph 922F(1)(g)(ii) (information about
financial services licensees); or
(ii) referred to in paragraph 922E(1)(e) or 922F(1)(h)
(information about relevant financial products); or
(iii) the relevant provider ceasing to be a relevant provider.
(2) Section 922H applies as if subsection 922L(2) required a notice to
be lodged within the period:
(a) starting on 1 May 2015; and
(b) ending 30 business days after that day.
Note: After 30 April 2015, notices about changes referred to in
paragraph (1)(c) of this regulation can be lodged normally under
section 922H.
10.20.09 Notices under section 922H—other changes before
30 September 2015
(1) This regulation applies if:
(a) a notice is lodged under section 922D in relation to a relevant
provider before 30 September 2015; and
(b) there is a change in a matter for the relevant provider at any
time during the period ending on 30 September 2015; and
(c) the change is of a kind that is not referred to in
paragraph 10.20.08(1)(c).
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional matters relating to relevant providers and persons who control body
corporate licensees Part 10.20
Pre-existing and new relevant providers and controllers during the transitional period
Division 3
Regulation 10.20.10
Corporations Regulations 2001 227
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(2) Section 922H applies as if subsection 922L(2) required a notice to
be lodged within the period:
(a) starting on 1 October 2015; and
(b) ending 30 business days after that day.
Note: After 30 September 2015, notices can be lodged normally under
section 922H.
10.20.10 Notices under section 922J—pre-existing body corporate
licensees
Section 922J applies in relation to a body corporate licensee
referred to in paragraph 10.20.05(2)(b) as if:
(a) subsection 922J(1) required a notice to be lodged in relation
to the person who controls the licensee; and
(b) subsection 922L(2) required the notice to be lodged within
the period:
(i) starting on 9 March 2015; and
(ii) ending on 30 March 2015; and
(c) subsection 922J(1) did not require the information in
paragraph 922J(2)(d) (start day for control) to be included in
the notice.
10.20.11 Notices under section 922J—controllers during transition
period
(1) This section applies in relation to a controller referred to in
paragraph 10.20.05(3)(b).
(2) Section 922J applies as if subsection 922L(2) required a notice to
be lodged within the period:
(a) starting on 1 October 2015; and
(b) ending 30 business days after that day.
Note: After 30 September 2015, notices can be lodged normally under
section 922J.
Federal Register of Legislative Instruments F2015C00303
Chapter 10 Repeals
Part 10.20 Transitional matters relating to relevant providers and persons who control
body corporate licensees
Division 3 Pre-existing and new relevant providers and controllers during the
transitional period
Regulation 10.20.12
228 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
10.20.12 Notices under section 922K—ceasing to control a
pre-existing body corporate licensees
(1) This regulation applies if a person ceases to control a body
corporate licensee at any time during the period ending on
30 September 2015.
(2) Section 922K applies as if subsection 922L(2) required a notice to
be lodged within the period:
(a) starting on 1 October 2015; and
(b) ending 30 business days after that day.
Note: After 30 September 2015, notices about persons who cease to control
body corporate licensees can be lodged normally under section 922K.
10.20.13 Change in matter within 30 business days
Subsection 922P(2) does not apply during the period starting on
9 March 2015 and ending on 30 September 2015.
10.20.14 Application of regulations 10.20.06 to 10.20.13
To avoid doubt, regulations 10.20.06 to 10.20.13 apply for the
purposes of:
(a) section 922M; and
(b) the Corporations (Fees) Regulations 2001.
Federal Register of Legislative Instruments F2015C00303
Repeals Chapter 10
Transitional matters relating to relevant providers and persons who control body
corporate licensees Part 10.20
Other application provisions Division 4
Regulation 10.20.15
Corporations Regulations 2001 229
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 4—Other application provisions
10.20.15 Application—relevant provider numbers
Regulation 7.6.06A applies in relation to a person who is a relevant
provider on or after 31 March 2015 (whether he or she became a
relevant provider before, on or after that day).
10.20.16 Application—register of relevant providers
(1) Regulations 7.6.06B (except paragraph 7.6.06B(2)(q)) and 7.6.06C
apply on and after 31 March 2015.
(2) Paragraph 7.6.06B(2)(q) applies on and after 31 May 2015.
10.20.17 Application—prescribed registers
The amendments of regulations 9.1.01 and 9.1.02 made by the
Corporations Amendment (Register of Relevant Providers)
Regulation 2015 apply on and after 31 March 2015.
Federal Register of Legislative Instruments F2015C00303
Chapter 12 Financial sector reform
Part 12.1 Preliminary
Regulation 12.1.01
230 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Chapter 12—Financial sector reform
Part 12.1—Preliminary
12.1.01 Definitions for Chapter 12
In this Chapter:
AFIC means the Australian Financial Institutions Commission.
APRA transitional prudential standard has the meaning given by
regulation 11 of the Financial Sector Reform (Amendments and
Transitional Provisions) Regulations 1999.
Financial Institutions Code of a State or Territory has the
meaning given by clause 1 of Schedule 4 to the Act.
Financial Sector Reform Act means the Financial Sector Reform
(Amendments and Transitional Provisions) Act (No. 1) 1999.
Friendly Societies Code of a Stae or Territory has the meaning
given by clause 1 of Schedule 4 to the Act.
member share has the meaning given by regulation 12.8.03.
previous governing Code has the meaning given by clause 1 of
Schedule 4 to the Act.
replaced legislation has the meaning given by subitem 22(7) of
Schedule 8 to the Financial Sector Reform Act.
SSA (State Supervisory Authority) has the meaning given by
clause 1 of Schedule 4 to the Act.
transfer date means the date that is the transfer date for the
purposes of the Financial Sector Reform Act.
transferring financial institution of a State or Territory has the
meaning given by clause 1 of Schedule 4 to the Act.
Federal Register of Legislative Instruments F2015C00303
Financial sector reform Chapter 12
Preliminary Part 12.1
Regulation 12.1.02
Corporations Regulations 2001 231
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
transition period means the period of 18 months starting on the
transfer date.
Note: See the definition of Corporations Regulations in section 40A of the
Acts Interpretation Act 1901.
12.1.02 Application of this Chapter to previous governing Codes etc
A reference in this Chapter to:
(a) a previous governing Code; or
(b) a provision of a previous governing Code; or
(c) an instrument under a previous governing Code; or
(d) a provision of an instrument under a previous governing
Code;
that is applied by or under this Chapter includes a reference to the
Code, provision or instrument as varied or modified by or under
this Chapter.
12.1.03 Interpretation of applied provisions
(1) Subregulation (2) applies to a provision of the following
instruments:
(a) a previous governing Code that is applied by or under a
provision of this Chapter;
(b) an instrument made under a Code mentioned in paragraph (a)
that is applied by or under this Chapter;
(c) an ASIC transitional standard within the meaning of
Part 12.7 or an instrument made under a provision of the
standard.
(2) This subregulation applies if there is a reference in the provision to
any of the following:
(a) a word or expression that is defined in the Act or these
Regulations;
(b) a power exercised by AFIC or an SSA;
(c) a class of body;
(d) the rules of a body;
Federal Register of Legislative Instruments F2015C00303
Chapter 12 Financial sector reform
Part 12.1 Preliminary
Regulation 12.1.03
232 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(e) the accounts, or group accounts, of a body;
(f) a previous governing Code or a provision of the Code;
(g) an ASIC transitional standard within the meaning of
Part 12.7 or a provision of the standard;
(h) an APRA transitional prudential standard or a provision of
the standard;
(i) an instrument made under a Code, an ASIC transitional
standard, an APRA transitional prudential standard or a
provision of the instrument.
(3) A word or expression that is defined in the Act or these regulations
applies to each use of the word or expression unless the contrary
intention appears.
(4) A reference to a power exercised by AFIC or an SSA is to be read
as if it were a reference to an equivalent power exercised by ASIC
under the Act, these regulations, another Commonwealth law or an
ASIC transitional standard.
(5) A reference to a class of body is to be read as if it were the
comparable class of company after the transition date.
(6) A reference to the rules of a body is to be read as if it were a
reference to the constitution of the body.
(7) A reference to accounts, or group accounts, of a body is to be read
as if it were a reference to a financial report, or consolidated
financial statements, of the body.
(8) A reference to any matter mentioned in subregulation (2) is to be
read in a way that:
(a) is consistent with, and promotes, the transition from the
application of a previous governing Code to a transferring
financial institution of a State or Territory to the application
to the institution of the Act and these regulations; and
(b) is consistent with the duties, functions and powers of ASIC
or an SSA; and
(c) does not alter the interpretation or operation of the instrument
in which the reference appears.
Federal Register of Legislative Instruments F2015C00303
Financial sector reform Chapter 12
Transitional matters—general Part 12.2
Other matters Division 2
Regulation 12.2.08
Corporations Regulations 2001 233
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 12.2—Transitional matters—general
Division 2—Other matters
12.2.08 Lodgment of certain documents with ASIC
For clause 39 of Schedule 4 to the Act, if the Friendly Societies
Code of a State or Territory applied to a transferring financial
institution of a State or Territory immediately before the transfer
date, the transferring financial institution may lodge with ASIC a
document that had been lodged with AFIC at any time before the
transfer date under that Code.
12.2.10 Certain appointments of auditors continue
(1) For clause 39 of Schedule 4 to the Act, this regulation applies if a
person or body held an appointment, immediately before the
transfer date, under a previous governing Code or the Friendly
Societies Act 1894 of Western Australia as the auditor of a
transferring financial institution.
(2) Section 324 of the Act applies to the person or body as if the
person or body had been appointed under section 327 of the Act as
the auditor of the transferring financial institution.
12.2.12 Converted shares
(1) For clause 39 of Schedule 4 to the Act, this regulation modifies the
application of section 254K of the Act in relation to a share in a
company that is converted in accordance with regulation 12.2.04 to
a share of another kind.
(2) If the share is partly-paid, the company may redeem the share on
the same terms on which the share was redeemable before its
conversion.
Federal Register of Legislative Instruments F2015C00303
Chapter 12 Financial sector reform
Part 12.4 Notice of meetings of certain bodies corporate
Regulation 12.4.01
234 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 12.4—Notice of meetings of certain bodies
corporate
12.4.01 Application of Part
(1) This Part applies to a body corporate that is:
(a) a transferring financial institution of a State or Territory; or
(b) a company that is permitted to use the expression building
society, credit society or credit union under section 66 of the
Banking Act 1959.
(2) This Part applies in relation to the following members of the body
corporate who are entitled to vote at a meeting of members of the
body:
(a) members who hold only member shares;
(b) if the body is a company limited by guarantee—the members
of the company;
(c) if the body is a company limited by shares and guarantee—
the members of the company who do not hold shares in the
company.
(3) This Part does not apply in relation to a meeting:
(a) that is held for the purposes of Chapter 5 or 6 of the Act; or
(b) to which Part 5 of Schedule 4 to that Act applies.
12.4.02 Modification of certain provisions of Act
For clause 38 of Schedule 4 to the Act, this Part modifies the
application of subsection 249H(1), section 249J,
subsection 249P(6) and paragraph 249Z(b) of the Act in relation to
the members of the body corporate.
Federal Register of Legislative Instruments F2015C00303
Financial sector reform Chapter 12
Notice of meetings of certain bodies corporate Part 12.4
Regulation 12.4.03
Corporations Regulations 2001 235
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
12.4.03 Members etc may elect to be notified of meetings
(1) The body corporate may give notice to a member, or to an
applicant for membership, of the body corporate that he or she may
elect to receive notice under subsection 249J(1) of the Act of
meetings of members of the body corporate.
(2) The notice must include a statement to the effect that:
(a) attendance at the AGM, and other meetings of members, of
the body corporate enables the members:
(i) to participate in the governance of the body corporate;
and
(ii) to ask questions about, and comment on, the
management of the body corporate, its financial
standing and performance; and
(iii) to ask the auditor of the body corporate questions about
the conduct of the audit of the body corporate and the
preparation and content of the auditor’s report; and
(iv) to vote on any proposal to amend the constitution of the
body corporate or on any other matter in relation to the
management of the body corporate; and
(b) notice of meetings informs members about matters in relation
to which they may wish to attend a meeting; and
(c) a member of the body corporate who is entitled to attend, and
cast a vote at, a meeting may appoint a proxy to attend and
vote for the member at the meeting; and
(d) if the member does not elect to receive notice, the body
corporate is not required to give notice of its meetings to the
member; and
(e) despite a member of the body corporate electing not to
receive notice of its meetings, or not making an election, the
member may at any time request the body corporate to give
the member personal notice of the meetings.
(3) The member or applicant is taken not to have made an election if
the body corporate has not received the election within 21 days of
the notice being given in accordance with subregulation (1).
Federal Register of Legislative Instruments F2015C00303
Chapter 12 Financial sector reform
Part 12.4 Notice of meetings of certain bodies corporate
Regulation 12.4.04
236 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) If the member elects not to receive notice of meetings, or does not
make an election, subsection 249H(1), section 249J,
subsection 249P(6) and paragraph 249Z(b) of the Act do not apply
to the body corporate in relation to the member.
(5) If the applicant elects not to receive notice of meetings, or does not
make an election, subsection 249H(1), section 249J,
subsection 249P(6) and paragraph 249Z(b) of the Act do not apply
to the body corporate in relation to the applicant if he or she
becomes a member of the body corporate to whom this Part
applies.
12.4.04 Notice of meetings to be published in press
(1) If the body corporate gives notice under subregulation 12.4.03(1),
notice of a meeting of the body corporate must be given in
accordance with this regulation.
(2) The notice must be published, at least 21 days before the day on
which the meeting is to be held, in at least 1 edition of a daily
newspaper circulating generally in each State or Territory in which
the body corporate conducts its business.
(3) The notice must:
(a) set out the date and time when, and the place where, the
meeting is to be held; and
(b) state the general nature of the business proposed for the
meeting; and
(c) include a statement to the effect that a member of the body
corporate who is entitled to vote at the meeting may request
the body corporate to give the member personal notice of the
meeting; and
(d) set out information about how a member may request the
body corporate to give the member personal notice of the
meeting.
Federal Register of Legislative Instruments F2015C00303
Financial sector reform Chapter 12
Notice of meetings of certain bodies corporate Part 12.4
Regulation 12.4.05
Corporations Regulations 2001 237
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
12.4.05 Copies of notices to be displayed
If the body corporate gives notice under subregulation 12.4.03(1),
notice of a meeting of the body corporate must be displayed
conspicuously, for at least 21 days before the day on which the
meeting is to be held, at:
(a) the registered office of the body corporate; and
(b) each other place where the body corporate conducts business
that is open to the public.
12.4.06 Members may request notice of meetings at any time
(1) The member may request the body corporate to give notice of a
meeting to the member under subsection 249J(1) of the Act.
(2) The request may be a standing request or only apply to a particular
meeting.
(3) If the member makes a request under subregulation (1),
subsection 249H(1), section 249J, subsection 249P(6) and
paragraph 249Z(b) of the Act apply to the body corporate in
relation to:
(a) the member; and
(b) a meeting to which the request relates.
(4) However, if the member requests the body corporate to give notice
of a meeting within 21 days of the day on which the meeting is to
be held, the body corporate must give notice of the meeting to the
member as soon as practicable.
12.4.07 Records to be kept about notices
A body corporate must, not later than 28 days after a notice is
given under subregulation 12.4.03(1) to a member of the body
corporate, record in writing:
(a) the date on which the notice was given to the member; and
Federal Register of Legislative Instruments F2015C00303
Chapter 12 Financial sector reform
Part 12.4 Notice of meetings of certain bodies corporate
Regulation 12.4.07
238 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) whether the member elected to receive notice of meetings of
members of the body corporate.
Example of recording: An entry made in a register kept under Chapter 2C of the
Act.
Federal Register of Legislative Instruments F2015C00303
Financial sector reform Chapter 12
Determinations and declarations in relation to certain instruments Part 12.5
Regulation 12.5.01
Corporations Regulations 2001 239
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 12.5—Determinations and declarations in
relation to certain instruments
12.5.01 Definition for Part 12.5
In this Part:
relevant transitional instrument or requirement means:
(a) an instrument (as in force immediately before the transfer
date) that was made by AFIC, or an SSA, under a provision
of the replaced legislation in relation to a matter for which
ASIC is responsible for which no transitional, saving or
application provision applies on that date in:
(i) the Act, the Financial Sector Reform Act or another
Commonwealth Act; or
(ii) these regulations or any other regulations, or another
instrument, made under a Commonwealth Act; or
(b) a requirement under the provisions mentioned in
paragraph 272(1)(a) of the Financial Institutions Code of a
State or Territory; or
(c) a requirement under the provisions mentioned in
paragraph 334(1)(a) of the Friendly Societies Code of a State
or Territory; or
(d) the ASIC transitional standards within the meaning of
Part 12.7; or
(e) an instrument made under an instrument or provision
mentioned in paragraph (a), (b), (c) or (d).
12.5.02 Application, variation, revocation and modification
(2) For clause 39 of Schedule 4 to the Act, ASIC may, by declaration:
(a) vary or revoke a relevant transitional instrument or
requirement, or a determination under subregulation (1), that
applies on the day on which the determination is made; or
Federal Register of Legislative Instruments F2015C00303
Chapter 12 Financial sector reform
Part 12.5 Determinations and declarations in relation to certain instruments
Regulation 12.5.03
240 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) modify the application of a relevant transitional instrument or
requirement that applies on the day on which the
determination is made.
(3) However, ASIC must not vary or modify a relevant transitional
instrument or requirement, or a determination, in relation to an
obligation, contravention of which results in the commission of an
offence, so as to make it more difficult to comply with the
obligation.
(4) Also, ASIC must consult with APRA before:
(a) varying or revoking an ASIC transitional standard that is also
an APRA transitional prudential standard; or
(b) modifying the application of an ASIC transitional standard
that is also an APRA transitional prudential standard.
(5) A failure to comply with subregulation (4) does not affect the
action taken by ASIC.
12.5.03 Effect of determinations and declarations
A relevant transitional instrument or requirement has effect subject
to a determination or declaration that applies to the instrument or
requirement.
12.5.04 Publication of determinations and declarations
(1) If a relevant transitional instrument or requirement to which a
determination or declaration relates was, before the transfer date,
subject under a previous governing Code to a publication
requirement corresponding to publication in the Gazette, the
determination or declaration must be published in the Gazette.
(2) If a relevant transitional instrument or requirement to which a
determination or declaration applies was not, before the transfer
date, subject under a previous governing Code to a publication
requirement corresponding to publication in the Gazette, a copy of
the determination or declaration must be:
Federal Register of Legislative Instruments F2015C00303
Financial sector reform Chapter 12
Determinations and declarations in relation to certain instruments Part 12.5
Regulation 12.5.05
Corporations Regulations 2001 241
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(a) given to each transferring financial institution of a State or
Territory to which the relevant transitional instrument or
requirement applies; or
(b) otherwise made available to the institution.
12.5.05 When determinations and declarations take effect
A determination or declaration takes effect on the day stated in the
determination or declaration.
12.5.06 Inspection and purchase of copies of instruments
(1) ASIC must take reasonable steps to ensure that copies of the
current text of the following relevant transitional instruments or
requirements are available for inspection and purchase:
(a) each provision of an instrument mentioned in paragraph (b)
or (c) of the definition of relevant transitional instrument or
requirement in regulation 12.5.01 that is the subject of a
determination or declaration under subregulation 12.5.02(1)
or (2);
(b) each ASIC transitional standard.
(2) A failure to comply with subregulation (1) does not affect the
operation of a relevant transitional instrument or requirement.
Federal Register of Legislative Instruments F2015C00303
Chapter 12 Financial sector reform
Part 12.6 Financial reporting by certain bodies corporate
Regulation 12.6.01
242 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 12.6—Financial reporting by certain bodies
corporate
12.6.01 Application of Part
(1) This Part applies to a body corporate that is:
(a) a transferring financial institution of a State or Territory; or
(b) a company that is permitted to use the expression building
society, credit society or credit union under section 66 of the
Banking Act 1959.
(2) This Part applies in relation to the following members of the body
corporate:
(a) members who hold only member shares;
(b) if the body is a company limited by guarantee—the members
of the company;
(c) if the body is a company limited by shares and guarantee—
the members of the company who do not hold shares in the
company.
12.06.01A Annual financial reporting
For section 343 of the Act, the operation of Chapter 2M of the Act,
in relation to a company limited by guarantee that is mentioned in
paragraphs 12.06.01(2)(b) and (c), is modified by omitting
subsections 314(1AAA) and 316(5) and section 316A of the Act.
12.6.02 Modification of certain provisions of Act
For clause 38 of Schedule 4 to the Act, this Part modifies the
application of section 314 of the Act in relation to the members of
the body corporate.
Federal Register of Legislative Instruments F2015C00303
Financial sector reform Chapter 12
Financial reporting by certain bodies corporate Part 12.6
Regulation 12.6.03
Corporations Regulations 2001 243
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
12.6.03 Members etc may elect to receive reports
(1) The body corporate may give notice to a member, or to an
applicant for membership, of the body corporate that he or she may
elect to receive:
(a) the reports mentioned in paragraph 314(1)(a) of the Act; or
(b) if the body corporate prepares concise reports mentioned in
paragraph 314(1)(b) of the Act, those reports.
(2) The notice must include a statement to the effect that:
(a) a report mentioned in subregulation (1) sets out information
about:
(i) the financial position and performance of the body
corporate; and
(ii) the efficiency with which the body corporate is being
managed; and
(iii) the financial risks to which the body corporate is
exposed; and
(b) if the member does not elect to receive a report, the body
corporate is not required to send copies of the reports or
concise reports mentioned in subregulation (1) to the
member; and
(c) despite a member of the body corporate electing not to
receive those reports or concise reports, or not making an
election, the member may at any time elect to receive the
relevant reports.
(3) The member or applicant is taken not to have elected to receive a
report if the body corporate has not received the election within 21
days of notice being given in accordance with subregulation (1).
(4) If the member elects not to receive the reports or concise reports
mentioned in subregulation (1), or does not make an election,
section 314 of the Act does not apply to the body corporate in
relation to the member.
Federal Register of Legislative Instruments F2015C00303
Chapter 12 Financial sector reform
Part 12.6 Financial reporting by certain bodies corporate
Regulation 12.6.04
244 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(5) If the applicant elects not to receive the reports or concise reports
mentioned in subregulation (1), or does not make an election,
section 314 of the Act does not apply to the body corporate in
relation to the applicant if he or she becomes a member of the body
corporate to whom this Part applies.
12.6.04 Copies of reports to be available to members
(1) If the body corporate gives notice under subregulation 12.6.03(1),
it must make copies of the relevant reports mentioned in that
subregulation available for collection by its members at:
(a) the registered office of the body corporate; and
(b) every other place where the body corporate conducts
business that is open to the public.
(2) Copies of the reports must be made available by the body corporate
from the deadline mentioned in subsection 315(1) of the Act for
reporting to members until 1 month after the day on which its next
AGM after the end of the financial year is held.
12.6.05 Records to be kept about notices
A body corporate must, not later than 28 days after a notice is
given under subregulation 12.6.03(1) to a member of the body
corporate, record in writing:
(a) the date on which the notice was given to the member; and
(b) whether the member elected to receive the reports or concise
report mentioned in that subregulation.
Example of recording: An entry made in a register kept under Chapter 2C of the
Act.
Federal Register of Legislative Instruments F2015C00303
Financial sector reform Chapter 12
Other disclosure Part 12.7
Preliminary Division 1
Regulation 12.7.01
Corporations Regulations 2001 245
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 12.7—Other disclosure
Division 1—Preliminary
12.7.01 Definitions for Part 12.7
In this Part:
ASIC transitional standard means:
(a) a provision of a previous governing Code that is specified in
Schedule 12; or
(b) an instrument made under a provision mentioned in
paragraph (a).
relevant financial institution means the following bodies:
(a) a transferring financial institution of a State or Territory;
(b) a company that is permitted to use the expression, building
society, credit society or credit union under section 66 of the
Banking Act 1959;
(c) a friendly society;
(d) an Australian ADI to which a declaration under
regulation 12.7.02 applies.
12.7.02 Declarations by ASIC
(1) This regulation applies, in relation to an Australian ADI, on:
(a) the initiative of ASIC; or
(b) application made to ASIC in writing by the ADI or another
person.
(2) ASIC may declare that the Australian ADI conducts financial
business of the same kind as the financial business of a transferring
financial institution of a State or Territory that was, immediately
before the transfer date, registered as a Special Services Provider
under the AFIC Code of a State or Territory.
Federal Register of Legislative Instruments F2015C00303
Chapter 12 Financial sector reform
Part 12.7 Other disclosure
Division 1 Preliminary
Regulation 12.7.02
246 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(3) A declaration:
(a) must be in writing given to the Australian ADI; and
(b) takes effect when the declaration, or a copy of the
declaration, is given to that ADI.
Federal Register of Legislative Instruments F2015C00303
Financial sector reform Chapter 12
Other disclosure Part 12.7
Continued application of certain provisions Division 2
Regulation 12.7.03
Corporations Regulations 2001 247
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2—Continued application of certain provisions
12.7.03 Continuation of certain provisions of previous governing
Codes
(1) For clause 39 of Schedule 4 to the Act, this regulation applies
provisions (as modified in this regulation) of a previous governing
Code to a relevant financial institution if, immediately before the
transfer date, the provisions applied to the institution.
(2) Subsection 402(1) of the Financial Institutions Code, and
section 79 of the Friendly Societies Code, of a State or Territory
apply, as a law of the Commonwealth, to the relevant financial
institution as if:
(a) a reference to a financial body or a society were a reference
to the relevant financial institution; and
(b) a reference to applicable standards were a reference to the
ASIC transitional standards.
(3) However, subsections 255(6), (7) and (8) of the Financial
Institutions Code of a State or Territory apply in relation to a
special resolution of the relevant financial institution that amends a
provision of the constitution of the institution that would, directly
or indirectly, affect:
(a) the operation of an exempt stock market; or
(b) the timely disclosure of information to holders or potential
holders of securities traded on an exempt stock market.
(4) Subsections 255(6), (7) and (8) of the Financial Institutions Code
of a State or Territory apply for subregulation (3) as if:
(a) a reference to society were a reference to the relevant
financial institution; and
(b) a reference to financial institutions legislation were a
reference to the Act and the Corporations Regulations; and
(c) a reference to standards were a reference to the ASIC
transitional standards.
Federal Register of Legislative Instruments F2015C00303
Chapter 12 Financial sector reform
Part 12.7 Other disclosure
Division 2 Continued application of certain provisions
Regulation 12.7.04
248 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
12.7.04 Continuation of ASIC transitional standards
(1) For clause 39 of Schedule 4 to the Act and subject to this Division,
the ASIC transitional standards:
(a) continue to apply in relation to a transferring financial
institution of a State or Territory to the extent that the
standards applied to the institution immediately before the
transfer date; and
(b) apply in relation to a relevant financial institution of a kind
mentioned in paragraph (b) or (c) of the definition of that
expression in regulation 12.7.01 to the extent that the
standards applied to an institution of that kind immediately
before the transfer date; and
(c) apply in relation to an Australian ADI to which a declaration
under regulation 12.7.02 applies to the extent that the
standards applied to Australian ADIs immediately before the
transfer date.
(2) However, Prudential Standard 6.8.3, as applied by
subregulation (1), does not authorise ASIC to grant an exemption.
Note: Regulation 12.7.05 authorises ASIC to make a declaration having the
effect of an exemption to which Prudential Standard 6.8.3 relates.
12.7.05 Exemption from, and modification of, certain provisions
(1) This regulation applies, in the circumstances to which Prudential
Standard 6.8.3 referred immediately before the transfer date, on:
(a) the initiative of ASIC; or
(b) application made to ASIC in writing by a person to whom
Division 3 of Part 7.3 of the Act, or regulation 7.3.13A or
7.3.13B, applies or another person.
(2) ASIC may, by Gazette notice, declare:
(a) that Division 3 of Part 7.3 of the Act, or regulation 7.3.13A
or 7.3.13B, does not apply to a person to whom the
declaration applies; and
Federal Register of Legislative Instruments F2015C00303
Financial sector reform Chapter 12
Other disclosure Part 12.7
Continued application of certain provisions Division 2
Regulation 12.7.06
Corporations Regulations 2001 249
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) that a provision mentioned in paragraph (a) applies to a
person to whom the declaration applies as if the provision
were modified in accordance with the declaration.
(3) Division 3 of Part 7.3 of the Act, and regulations 7.3.13A and
7.3.13B, apply subject to a declaration applying in relation to that
Division or regulation.
(4) A declaration:
(a) may be made subject to a condition stated in the exemption;
and
(b) takes effect on the day on which it is published.
12.7.06 Certain provisions of the Friendly Societies Code cease to
apply to FSR licensee
(1) For clause 39 of Schedule 4 to the Act the provisions of
subclause 36(1) of Schedule 4 cease to apply to a body to which
the Schedule applies on the earlier of:
(a) 2 years after the FSR commencement; and
(b) if the body gives notice under paragraph 1438(3)(b) of the
Act that the body wants the new product disclosure
provisions to apply in relation to specified products from a
certain date—that date.
(2) Subregulation (1) takes effect from the date specified in the notice
as the date from which the new product disclosure provisions will
apply.
Federal Register of Legislative Instruments F2015C00303
Chapter 12 Financial sector reform
Part 12.8 Shares in certain bodies corporate
Division 1 Preliminary
Regulation 12.8.02
250 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 12.8—Shares in certain bodies corporate
Division 1—Preliminary
12.8.02 Application of Part 12.8
This Part applies to a body corporate that is:
(a) a transferring financial institution of a State or Territory; or
(b) a company that is permitted to use the expression building
society, credit society or credit union under section 66 of the
Banking Act 1959; or
(c) a friendly society; or
(d) a restricted access insurer within the meaning of the Private
Health Insurance Act 2007.
12.8.03 What is a member share
(1) A share in the body corporate to which subregulation (2) or (3)
applies is a member share.
(2) This subregulation applies if the share:
(a) is not an ED security; and
(b) has a fixed value; and
(c) is held by a single person, or 2 or more persons jointly; and
(d) entitles the holder, or joint holders, to use services provided
by the body corporate; and
(e) is not transferable or transmissible, or is only transferable or
transmissible to a person or body specified in the rules or
constitution of the body corporate in circumstances stated in
the rules or constitution.
(3) This subregulation applies if:
(a) the share is taken to have been issued under
paragraph 12(1)(b), (c) or (d) of the transfer provisions; or
Federal Register of Legislative Instruments F2015C00303
Financial sector reform Chapter 12
Shares in certain bodies corporate Part 12.8
Preliminary Division 1
Regulation 12.8.04
Corporations Regulations 2001 251
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) that Act applies to the share under clause 15 of Schedule 4 to
that Act; or
(c) the share is declared under regulation 12.8.04 to be a member
share; or
(d) the share is issued under regulation 12.8.11 or 12.8.12.
12.8.04 Declarations by ASIC
(1) This regulation applies, in relation to a share in the body corporate,
on:
(a) the initiative of ASIC; or
(b) application made to ASIC in writing by the body corporate or
another person.
(2) ASIC may declare in writing that shares are, or are not, member
shares of the body corporate.
(3) The declaration takes effect when the declaration, or a copy of the
declaration, is given to the body corporate.
Federal Register of Legislative Instruments F2015C00303
Chapter 12 Financial sector reform
Part 12.8 Shares in certain bodies corporate
Division 2 Member shares
Regulation 12.8.05
252 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 2—Member shares
12.8.05 Notice requirements
For clause 38 of Schedule 4 to the Act, Part 2H.6 of the Act does
not apply in relation to a member share of the body corporate.
12.8.06 Registers of members
(1) For clause 38 of Schedule 4 to the Act, the Act is modified in
accordance with this regulation.
(2) The register of members that is mentioned in subsection 169(1) of
the Act may have a separate part for members of the body
corporate who hold member shares.
(3) Section 173 of the Act is modified in relation to the body corporate
by inserting after subsection 173(1):
(1AA) However, a body corporate mentioned in regulation 12.8.02
of the Corporations Regulations may, before allowing a
person to inspect the part of the register for members of the
body corporate who hold member shares, require the person
to agree in writing with the body that the person will only:
(a) divulge information obtained by the person from
inspecting the register to a person who is, or to persons
who are, specified in the agreement; or
(b) use information obtained by the person from inspecting
the register for a purpose that is, or purposes that are,
specified in the agreement.
(1AB) Also, the body corporate mentioned in regulation 12.8.02 of
the Corporations Regulations may refuse to allow a person to
inspect the part of the register for members of the body who
hold member shares if:
(a) the body is not satisfied that the person is a member of
the body who intends to call a meeting of members, or
of particular members, of the body; or
Federal Register of Legislative Instruments F2015C00303
Financial sector reform Chapter 12
Shares in certain bodies corporate Part 12.8
Member shares Division 2
Regulation 12.8.06
Corporations Regulations 2001 253
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(b) the body is not satisfied that the person proposes to
inspect the register for a purpose that is approved in
writing by ASIC:
(i) on its own initiative; or
(ii) on the written application of the person or of
another person; or
(c) the body is not satisfied that allowing the person to
inspect that part of the register is in the interests of the
members as a whole.
(4) Section 173 of the Act is modified in relation to the body corporate
by inserting after subsection 173(3):
(3A) However, a body corporate mentioned in regulation 12.8.02
of the Corporations Regulations may, before giving a person
a copy of the part of the register for members of the body
corporate who hold member shares, require the person to
agree in writing with the body that the person will only:
(a) give the original copy, or a copy of that original, to a
person who is, or to persons who are, specified in the
agreement; or
(b) use information obtained from that part of the register
for a purpose that is, or purposes that are, specified in
the agreement.
(3B) Also, the body corporate mentioned in regulation 12.8.02 of
the Corporations Regulations may refuse to give a person a
copy of the part of the register for members of the body who
hold member shares if the body is not satisfied that:
(a) the person is a member of the body who intends to call a
meeting of members, or of particular members, of the
body; or
(b) the person proposes to use information obtained from
that part of the register for a purpose that is approved in
writing by ASIC:
(i) on its own initiative; or
(ii) on the written application of the person or of
another person; or
Federal Register of Legislative Instruments F2015C00303
Chapter 12 Financial sector reform
Part 12.8 Shares in certain bodies corporate
Division 2 Member shares
Regulation 12.8.06A
254 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(c) giving the person the copy is in the interests of the
members as a whole.
Note: If a body corporate has failed to give a person a copy of the part of the
register for members of the body who hold member shares, the body
corporate must, in certain circumstances, arrange for the members to
be contacted, or for material to be sent to the members, on the
person’s behalf—see regulation 2C.3.01 of the Corporation
Regulations.
(5) In subregulations (3) and (4), a reference to the part of the register
for members of a body corporate who hold member shares includes
a reference to:
(a) the register of members of the body corporate that is a
company limited by guarantee; and
(b) the register of members of the body corporate limited by
shares and guarantee who do not hold shares in the body.
12.8.06A Member shares—liability to pay calls
(1) For clause 38 of Schedule 4 to the Act, the operation of
subsection 254M(1) of the Act is modified in accordance with this
regulation.
(2) If a member share in the body corporate is partly-paid, the
shareholder is not liable to pay a call on the share, or on a winding
up of the body corporate, without the consent of the shareholder, to
the extent that the unpaid amount is increased as a result of the
conversion of the share in accordance with regulation 12.2.04.
12.8.07 Disclosure in annual returns
For clause 38 of Schedule 4 to the Act, item 8 in the table set out in
section 348 of the Act does not apply in relation to a member of the
body corporate holding only a member share, or member shares, in
the body.
Federal Register of Legislative Instruments F2015C00303
Financial sector reform Chapter 12
Shares in certain bodies corporate Part 12.8
Member shares Division 2
Regulation 12.8.08
Corporations Regulations 2001 255
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
12.8.08 Member shares—numbering and certificates
For clause 38 of Schedule 4 to the Act, sections 1070B and 1071H
of the Act do not apply in relation to a member share of the body
corporate.
12.8.09 Member shares—unclaimed property
(1) For clause 38 of Schedule 4 to the Act, section 1343 of the Act
does not apply in relation to a member share of the body corporate.
(2) For clause 38 of Schedule 4 to the Act, the constitution of the body
corporate may provide that if a member share is cancelled, and the
value of the share is transferred, the value of the share is to be
treated as unclaimed moneys held by the body corporate.
Federal Register of Legislative Instruments F2015C00303
Chapter 12 Financial sector reform
Part 12.8 Shares in certain bodies corporate
Division 3 Certain shares in transferring building societies and credit unions
Regulation 12.8.10
256 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Division 3—Certain shares in transferring building
societies and credit unions
12.8.10 Definitions for Division 3
In this Division:
transferring building society means a transferring financial
institution of a State or Territory mentioned in paragraph (a) of the
definition of transferring financial institution of a State or
Territory in clause 1 of Schedule 4 to the Act.
transferring credit union means a transferring financial institution
of a State or Territory mentioned in paragraph (b) of the definition
of transferring financial institution of a State or Territory in
clause 1 of Schedule 4 to the Act.
12.8.11 Transferring building societies may issue shares equivalent
to membership shares
(1) A transferring building society that is a company limited by shares
may issue a share in the company giving the holder of the share the
same rights and obligations in relation to the share as the holder of
a membership share in the building society that is taken to have
been issued on the transfer date under clause 12 of the transfer
provisions has in relation to that share.
(2) However, the transferring building society must not issue the share
if its constitution has been modified under paragraph 24(1)(c) of
the transfer provisions.
(3) The provisions of the Act that apply in relation to the issue of a
share in a company limited by shares that is not issued under this
regulation also apply to a share that is issued under this regulation
for all matters that are not dealt with in subregulations (1) and (2).
Federal Register of Legislative Instruments F2015C00303
Financial sector reform Chapter 12
Shares in certain bodies corporate Part 12.8
Certain shares in transferring building societies and credit unions Division 3
Regulation 12.8.12
Corporations Regulations 2001 257
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
(4) This regulation does not affect:
(a) the capacity of a transferring building society to issue shares
in the company otherwise than under this regulation; or
(b) a share issued otherwise than under this regulation.
12.8.12 Transferring credit unions may issue shares equivalent to
withdrawable shares
(1) A transferring credit union that is a company limited by shares may
issue a share in the company that:
(a) is redeemable on the same terms as a withdrawable share in
the credit union was withdrawable immediately before the
transfer date; and
(b) otherwise gives the same rights to, and imposes the same
obligations on, the holder of the share as the holder of a
withdrawable share in the credit union had in relation to that
share immediately before the transfer date.
(2) However, the transferring credit union must not issue the share if
its constitution has been modified under paragraph 24(1)(c) of the
transfer provisions.
(3) The provisions of the Act that apply in relation to the issue of a
share in a company limited by shares that is not issued under this
regulation also apply to a share that is issued under this regulation
for all matters that are not dealt with in subregulations (1) and (2).
(4) This regulation does not affect:
(a) the capacity of a transferring credit union to issue shares in
the company otherwise than under this regulation; or
(b) a share issued otherwise than under this regulation.
Federal Register of Legislative Instruments F2015C00303
Chapter 12 Financial sector reform
Part 12.9 Winding up and deregistration of certain transferring financial institutions
Regulation 12.9.01
258 Corporations Regulations 2001
Compilation No. 113 Compilation date: 31/3/15 Registered: 9/4/15
Part 12.9—Winding up and deregistration of
certain transferring financial institutions
12.9.01 Application of Part 12.9
For clause 39 of Schedule 4 to the Act, this Part applies if,
immediately before the transfer date, a transferring financial
institution of a State or Territory was being wound up under a law
other than the previous governing Code.
12.9.02 Winding up
(1) The Act in force in a State or Territory, before the commencement
of the previous governing Code, that applied to the winding up of
the transferring financial institution (the relevant law) continues to
so apply, as a law of the Commonwealth, on and after the transfer
date as if that Code, and the Act, had not been enacted.
(2) However, for this regulation, a reference in the relevant law to the
Registrar is read as if it were a reference to ASIC.
(3) Information about the transferring financial institution given to
ASIC in a notice mentioned in regulation 12.2.09, or under the
relevant law, is taken to be information given to ASIC in relation
to the performance of its functions or the exercise of its powers.
12.9.03 Deregistration
(1) Despite regulation 12.7.02, this regulation applies if the
transferring financial institution had not been deregistered before
the transfer date as a result of being wound up.
(2) Sections 601AB, 601AC, 601AD, 601AE, 601AF, 601AG and
601AH of the Act apply to the deregistration of the transferring
financial institution.
Federal Register of Legislative Instruments F2015C00303