Prepared by the Office of Parliamentary Counsel, Canberra
Corporations Regulations 2001
Statutory Rules No. 193, 2001
made under the
Corporations Act 2001
Compilation No. 132
Compilation date: 2 July 2017
Includes amendments up to: F2017L00595
Registered: 13 July 2017
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 3–13
Volume 7: Endnotes
Each volume has its own contents
This compilations includes commenced amendments made by F2017L00321
Authorised Version F2017C00544 registered 13/07/2017
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 2 July 2017 (the compilation date).
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 the Legislation Register
(www.legislation.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 the Legislation Register 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.
Editorial changes
For more information about any editorial changes made in this compilation, see 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 the Legislation Register 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If a provision of the compiled law has been repealed in accordance with a provision of the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. 132 Compilation date: 2/7/17 Registered: 13/7/17
Contents
Chapter 1—Introductory 1
Part 1.0—Miscellaneous 1 1.0.01 Name of Regulations................................................................................................... 1
1.0.02 Interpretation............................................................................................................... 1
1.0.02A Prescribed financial market......................................................................................... 8
1.0.03 Prescribed forms (Act s 350) ...................................................................................... 9
1.0.03A Documents that must be in the prescribed form.......................................................... 9
1.0.03B Documents that must be lodged with ASIC ...............................................................10
1.0.03C Documents that must be in a form approved by ASIC...............................................10
1.0.04 Directions and instructions in forms ..........................................................................11
1.0.05 Documents and information required by forms..........................................................11
1.0.05A Lodgment with ASIC.................................................................................................11
1.0.06 Annexures accompanying forms................................................................................12
1.0.07 General requirements for documents .........................................................................12
1.0.08 Information to accompany financial documents lodged for
financial years ............................................................................................................13
1.0.09 Information to accompany financial documents etc lodged
for half-years..............................................................................................................14
1.0.10 Continuous disclosure notices....................................................................................14
1.0.11 Certain documents to be signed by personal representatives
etc...............................................................................................................................15
1.0.12 Form of notice of resolution.......................................................................................15
1.0.13 Time for lodging documents ......................................................................................15
1.0.14 Address of registered office or place of business .......................................................15
1.0.15 Affidavits and statements in writing ..........................................................................16
1.0.16 Certification and verification of certain documents ...................................................16
1.0.17 Documents signed or sworn in accordance with the rules..........................................16
1.0.18 Prescribed provisions (Act s 53) ................................................................................16
1.0.20 Copies of orders to be lodged.....................................................................................16
1.0.21 Identification of lodged orders ...................................................................................17
1.0.22 Territorial application of Act .....................................................................................17
Part 1.1—Prescribed amounts 18 1.1.01 Prescribed amounts ....................................................................................................18
Part 1.2—Interpretation 19
Division 1—General 19
1.2.01 Remuneration recommendations (Act s 9B) ..............................................................19
Part 1.2A—Disclosing entities 20 1.2A.01 Securities declared not to be ED securities ................................................................20
1.2A.02 Foreign companies issuing securities under foreign scrip
offers etc exempt from disclosing entity provisions...................................................20
1.2A.03 Foreign companies issuing securities under employee share
scheme exempt from the disclosing entity provisions................................................21
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Chapter 2A—Registration of companies 22
Part 2A.1—Size of partnerships or associations (Act s 115(2)) 22 2A.1.01 Size of partnerships or associations ...........................................................................22
Part 2A.2—Change of place of registration of company (Act s
119A(3)) 23 2A.2.01 Approval of application for change of place of registration.......................................23
2A.2.02 Special resolution may be set aside by Court order ...................................................23
2A.2.03 Application for change of place of registration ..........................................................23
2A.2.04 Change of place of registration ..................................................................................23
Chapter 2B—Basic features of a company 25
Part 2B.6—Names 25 2B.6.01 Availability of names (Act s 147) ..............................................................................25
2B.6.02 Consents required for use of certain letters, words and
expressions.................................................................................................................25
2B.6.03 Exemptions from requirement to set out name and ACN on
certain documents (Act s 155)....................................................................................26
Chapter 2C—Registers 27
Part 2C.1—Registers generally 27
Division 2C.1.1—Location of register 27
2C.1.01 Form of notice............................................................................................................27
Division 2C.1.2—Right to inspect and get copies of register 28
2C.1.02 Form of register .........................................................................................................28
2C.1.03 Improper purposes for getting copy of register ..........................................................28
2C.1.04 Information to be included in application for copy of register ...................................28
Division 2C.1.3—Use of information on registers by bodies
corporate 29
2C.1.05 Contact with members after failure to provide copy of
register .......................................................................................................................29
Chapter 2D—Officers and employees 31
Part 2D.2—Restrictions on indemnities, insurance and
termination payments 31
Division 2D.2.2—Termination payments 31
2D.2.01 Meaning of base salary..............................................................................................31
2D.2.02 Meaning of benefit .....................................................................................................32
2D.2.03 When benefit given in connection with retirement from an
office or a position .....................................................................................................33
Part 2D.6—Disqualification from managing corporations 34
Division 2D.6.1—Automatic disqualification (Act s 206B) 34
2D.6.01 Prescribed foreign jurisdictions (Act s 206B(7))........................................................34
Part 2D.7—Ban on hedging remuneration of key management
personnel 35 2D.7.01 Hedging arrangements (Act s 206J(3)) ......................................................................35
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Chapter 2E—Related party transactions 37 2E.1.01 Small amounts given to related entity ........................................................................37
Chapter 2G—Meetings 38
Part 2G.2—Meetings of members of companies 38
Division 6—Proxies and body corporate representatives 38
2G.2.01 Authentication of appointment of proxy (Act s 250A)...............................................38
Chapter 2K—Charges 39
Part 2K.2—Registration 39 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........................................................................................................................39
2K.2.02 Time period for the provisional registration of charges .............................................40
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 .............................................................................................................................40
Chapter 2L—Debentures 41
Part 2L.2—Duties of borrower 41 2L.2.01 Register relating to trustees for debenture holders .....................................................41
Chapter 2M—Financial reports and audit 42
Part 2M.3—Financial reporting 42
Division 1—Annual financial reports and directors’ reports 42
2M.3.01 Disclosures required by notes to consolidated financial
statements—annual financial reports (Act s 295) ......................................................42
2M.3.03 Prescribed details (Act s 300A)..................................................................................42
Part 2M.4—Auditor 51 2M.4.01A.....................................................................Membership designations (Act s 324BE) 51
2M.4.01 Notice of appointment of auditors..............................................................................51
Part 2M.4A—Annual transparency reports for auditors 52 2M.4A.01...................................................................................................................Application 52
2M.4A.02.................................................... Content of annual transparency report (Act s 332B) 52
Part 2M.6—Modification of the operation of Chapter 2M of the
Act 53 2M.6.01 Modifications (Act s 343) ..........................................................................................53
2M.6.05 Conduct of auditor—relevant relationships ...............................................................53
Chapter 2N—Updating ASIC information about
companies and registered schemes 54
Part 2N.2—Extract of particulars 54 2N.2.01 Particulars ASIC may require in an extract of particulars
(Act s 346B)...............................................................................................................54
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Part 2N.4—Return of particulars 56 2N.4.01 Particulars ASIC may require in a return of particulars (Act s
348B) .........................................................................................................................56
Chapter 5—External administration 58
Part 5.1—Arrangements and reconstructions 58 5.1.01 Prescribed information for paragraph 411(3)(b) and
subparagraph 412(1)(a)(ii) of the Act ........................................................................58
5.1.02 Giving notice under subsection 414(2) or (9) of the Act............................................58
Part 5.2—Receivers, and other controllers, of corporations 59 5.2.01 Controller’s notice to owner or lessor of property—how
given ..........................................................................................................................59
5.2.02 Certified copies of reports..........................................................................................59
Part 5.3A—Administration of a company’s affairs with a view
to executing a deed of company arrangement 60 5.3A.01 Administrator’s notice of ending of administration ...................................................60
5.3A.02 Administrator to specify voidable transactions in statement ......................................60
5.3A.03 Administrator to lodge notice of appointment ...........................................................60
5.3A.03A ...............................................................................Notice of first meeting of creditors 60
5.3A.03AB..................................................... Notice of meeting to decide the company’s future 61
5.3A.05 Administrator’s notice to owner or lessor of property—how
given ..........................................................................................................................61
5.3A.06 Provisions included in deed of company arrangement ...............................................61
5.3A.06A ..................................................................Notice of resolution to wind up voluntarily 61
5.3A.06AB....................................................................................Notice of meeting of creditors 62
5.3A.07A ........................................................................Notice of appointment of administrator 62
Part 5.4—Winding up in insolvency 63 5.4.01 Application to Court for winding up—prescribed agency .........................................63
5.4.01A Notice of application to wind up a company..............................................................63
5.4.02 Compromise of debt by liquidator—prescribed amount ............................................63
Part 5.4C—Winding up by ASIC 64 5.4C.01 Notice of intention to order winding up of a company...............................................64
Part 5.5—Voluntary winding up 65 5.5.01 Notice of resolution to wind up voluntarily ...............................................................65
5.5.02 Notice of meeting of creditors....................................................................................65
Part 5.6—Winding up generally 66 5.6.01 Matters for entry in liquidator’s or provisional liquidator’s
books..........................................................................................................................66
5.6.02 Inspection of books kept under section 531 of the Act ..............................................66
5.6.06 Payment into liquidator’s general account .................................................................66
5.6.07 Deposit of securities...................................................................................................66
5.6.08 Delivery of securities .................................................................................................66
5.6.09 Special bank account..................................................................................................67
5.6.10 Payments out of liquidator’s general account ............................................................67
5.6.11 Application ................................................................................................................67
5.6.11A Electronic methods of giving or sending certain notices etc ......................................68
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5.6.12 Notice of meeting.......................................................................................................69
5.6.13 Proof of notice ...........................................................................................................70
5.6.13A If telephone conference facilities are available ..........................................................70
5.6.13B Persons, or their proxies or attorneys, participating by
telephone....................................................................................................................71
5.6.14 Time and place of meeting.........................................................................................71
5.6.14A Advertisement of a meeting .......................................................................................71
5.6.14B Meetings not convened in accordance with regulations.............................................72
5.6.15 Costs of convening meetings of creditors etc.............................................................72
5.6.16 Quorum......................................................................................................................72
5.6.17 Chairperson................................................................................................................73
5.6.18 Adjournment of meeting ............................................................................................74
5.6.19 Voting on resolutions.................................................................................................74
5.6.20 Taking a poll ..............................................................................................................75
5.6.21 Carrying of resolutions after a poll has been demanded at a
meeting of creditors ...................................................................................................75
5.6.22 Carrying of resolution after a poll has been demanded at a
meeting of contributories or members .......................................................................76
5.6.23 Creditors who may vote .............................................................................................76
5.6.23A Voting status of persons by whom money is advanced to a
company.....................................................................................................................77
5.6.24 Votes of secured creditors..........................................................................................77
5.6.26 Admission and rejection of proofs for purposes of voting .........................................78
5.6.27 Minutes of meeting ....................................................................................................78
5.6.28 Appointment of proxies .............................................................................................79
5.6.29 Form of proxies..........................................................................................................80
5.6.30 Instruments of proxy ..................................................................................................81
5.6.31 Proxy forms to accompany notice of meetings ..........................................................81
5.6.31A Person may attend and vote by attorney.....................................................................81
5.6.32 Liquidator etc may act as proxy .................................................................................81
5.6.33 Voting by proxy if financially interested ...................................................................82
5.6.34 Liquidator etc may appoint deputy ............................................................................82
5.6.36 Time for lodging proxies............................................................................................82
5.6.36A Facsimile copies of proxies........................................................................................82
5.6.37 Establishing title to priority........................................................................................83
5.6.39 Notice to submit particulars of debt or claim .............................................................83
5.6.40 Preparation of a proof of debt or claim ......................................................................83
5.6.41 Disclosure of security ................................................................................................83
5.6.42 Discounts ...................................................................................................................83
5.6.43 Periodical payments ...................................................................................................83
5.6.43A Debt or claim of uncertain value—appeal to Court....................................................84
5.6.44 Debt discount rate (Act s 554B).................................................................................84
5.6.45 Employees’ wages .....................................................................................................84
5.6.46 Production of bill of exchange and promissory note ..................................................84
5.6.47 Admission of debt or claim without formal proof......................................................85
5.6.48 Notice to creditors to submit formal proof.................................................................85
5.6.49 Formal proof of debt or claim ....................................................................................85
5.6.50 Contents of formal proof of debt or claim..................................................................86
5.6.51 Costs of proof.............................................................................................................86
5.6.52 Liquidator to notify receipt of proof of debt or claim ................................................86
5.6.53 Time for liquidator to deal with proofs ......................................................................86
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5.6.54 Grounds of rejection and notice to creditor................................................................87
5.6.55 Revocation or amendment of decision of liquidator ..................................................87
5.6.56 Withdrawal or variation of proof of debt or claim .....................................................88
5.6.57 Oaths..........................................................................................................................88
5.6.58 Liquidator to make out provisional list of contributories ...........................................88
5.6.59 Time and place for settlement of list ..........................................................................89
5.6.60 Settlement of list of contributories .............................................................................89
5.6.61 Supplementary list .....................................................................................................89
5.6.62 Notice to contributories..............................................................................................89
5.6.63 Dividend payable only on admission of a debt or claim ............................................90
5.6.64 Application of regulations 5.6.37 to 5.6.57................................................................90
5.6.65 Liquidator to give notice of intention to declare a dividend.......................................91
5.6.66 Time allowed for dealing with formal proof of debt or claim....................................91
5.6.67 Declaration and distribution of dividend....................................................................92
5.6.68 Rights of creditor who has not proved debt before
declaration of dividend ..............................................................................................92
5.6.69 Postponement of declaration ......................................................................................93
5.6.70 Payment of dividend to a person named ....................................................................93
5.6.70A Prescribed rate of interest on debts and claims from relevant
date to date of payment ..............................................................................................93
5.6.70B Notice of disclaimer ...................................................................................................93
5.6.71 Distribution of surplus in a winding up by the Court .................................................93
5.6.72 Distribution of surplus as directed .............................................................................94
5.6.73 Eligible unsecured creditor ........................................................................................94
5.6.74 Interpretation: prescribed countries............................................................................94
5.6.75 Publication in the prescribed manner .........................................................................94
Chapter 5B—Bodies corporate registered as
companies, and registrable bodies 96
Part 5B.2—Registrable bodies 96 5B.2.01 Certified copies of certificates of incorporation etc ...................................................96
5B.2.02 Manner of certifying constituent documents ..............................................................96
5B.2.03 Manner of sending letters (Act ss 601CC(2) and 601CL(3)) .....................................97
5B.2.04 Manner of sending notices (Act ss 601CC(3) and 601CL(4))....................................97
5B.2.05 Prescribed countries (Act s 601CDA(a)) ...................................................................97
5B.2.06 Notices (Act s 601CV(1)) ..........................................................................................97
Part 5B.3—Names of registrable Australian bodies and foreign
companies 98 5B.3.01 Availability of names (Act s 601DC).........................................................................98
5B.3.02 Consents required for use of certain letters, words and
expressions.................................................................................................................98
5B.3.03 Exemptions from requirement to set out ARBN etc on
certain documents (Act s 601DG)..............................................................................99
5B.3.04 Notices (Act s 601DH (1)) .........................................................................................99
Chapter 5C—Managed investment schemes 100
Part 5C.1—Registration of managed investment schemes 100 5C.1.01 Applying for registration..........................................................................................100
5C.1.02 Change of name of registered schemes ....................................................................100
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5C.1.03 Modification (Act s 601QB) ....................................................................................100
Part 5C.2—The responsible entity 102 5C.2.01 Duty of responsible entities’ agents—surveillance checks ......................................102
5C.2.02 Appointment of temporary responsible entities .......................................................102
5C.2.03 Form of notices (Act ss 601FL(2) and 601FM(2))...................................................102
5C.2.04 Notice of appointment of temporary responsible entities.........................................102
5C.2.05 Form of notices (Act s 601FP(3)) ............................................................................102
Part 5C.4—The compliance plan 103 5C.4.01 Agents’ authorities to be lodged ..............................................................................103
5C.4.02 Agents to assist auditors of compliance plans..........................................................103
Part 5C.5—The compliance committee 104 5C.5.01 Responsible entities etc to assist compliance committees ........................................104
Part 5C.9—Winding up 105 5C.9.01 Notice of commencement of winding up .................................................................105
Part 5C.11—Exemptions and modifications 106
Division 1—Exemptions 106
5C.11.01Certain schemes not managed investment schemes .................................................106
Division 2—Modifications 109
5C.11.02Modifications...........................................................................................................109
5C.11.03Register of members of registered schemes (Act s 169(1))......................................109
5C.11.03A.....................................................................How to work out the value of an interest 109
5C.11.04Names of registered schemes (Act s 601EB(1)).......................................................109
5C.11.05A.................................................Schemes not required to be registered (Act s 601ED) 109
5C.11.06Liability of responsible entities (Act s 601FB(4))....................................................109
Chapter 5D—Licensed trustee companies 110
Part 5D.1—Preliminary 110 5D.1.01 Prescribed requirements for publication...................................................................110
5D.1.01A ........................................................................................ Meaning of trustee company 110
5D.1.02 Meaning of traditional trustee company services and estate
management functions .............................................................................................110
5D.1.03 Meaning of mortgage-backed security.....................................................................112
5D.1.04 Interaction between trustee company provisions and State
and Territory laws ....................................................................................................113
Part 5D.2—Powers etc of licensed trustee companies 114
Division 2.1—Annual Information Returns 114
5D.2.01 Obligation on licensed trustee company to provide an annual
information return if requested.................................................................................114
5D.2.02 Information to be included in annual information return .........................................115
Division 2.2—Common funds 116
5D.2.03 Common funds.........................................................................................................116
5D.2.04 Establishment of common funds ..............................................................................116
5D.2.05 Deciding details about common funds .....................................................................116
5D.2.06 Operation of common funds ....................................................................................117
5D.2.07 Register of investments............................................................................................119
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5D.2.08 Financial reports ......................................................................................................119
Part 5D.3—Regulation of fees charged by licensed trustee
companies 121 5D.3.01 Modification of section 601TAB of the Act: disclosure to
clients of changed fees .............................................................................................121
Part 5D.4—Obligations of receiving company after transfer 122 5D.4.01 Preserving rights under dispute resolution systems and
compensation arrangements .....................................................................................122
Chapter 6—Takeovers 123
Part 6.2—Exceptions to the prohibition 123 6.2.01 Prescribed circumstances (Act s 611) ......................................................................123
6.2.02 Other prescribed circumstances (Act s 611).............................................................124
Part 6.5—The takeover procedure 125 6.5.01 Wholesale holder of securities—telephone monitoring
during bid period......................................................................................................125
Part 6.6—Variation of offers 126 6.6.01 Right to withdraw acceptance ..................................................................................126
Part 6.8—Acceptances 127 6.8.01 Acceptance of offers made under off-market bid.....................................................127
6.8.02 Acceptances by transferees and nominees of offers made
under off-market bid ................................................................................................127
Part 6.10—Review and intervention 128 6.10.01 Application for review of Panel decision (Act s 657EA) .........................................128
Chapter 6A—Compulsory acquisitions and buy-outs 129
Part 6A.1—Compulsory acquisitions and buy-outs after
takeover bid 129 6A.1.01 Terms on which securities to be acquired ................................................................129
Chapter 6CA—Continuous disclosure 130 6CA.1.01............................................................Continuous disclosure: other disclosing entities 130
Chapter 6D—Fundraising 131
Part 6D.2—Disclosure to investors about securities 131 6D.2.01 Exemption—member shares ....................................................................................131
6D.2.02 Exemption—foreign companies...............................................................................131
6D.2.03 Sophisticated investors.............................................................................................131
6D.2.04 Simple corporate bonds—base prospectus...............................................................131
6D.2.05 Simple corporate bonds—offer-specific prospectus.................................................134
6D.2.06 Simple corporate bonds—key financial ratios relevant to
issuing body .............................................................................................................136
Part 6D.5—Fundraising—miscellaneous 138 6D.5.01 Warrants that are securities ......................................................................................138
6D.5.02 Modification of paragraph 708(8)(c) of the Act: renewal
period for accountants’ certificates ..........................................................................138
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Introductory Chapter 1
Miscellaneous Part 1.0
Regulation 1.0.01
Corporations Regulations 2001 1
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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.
1.0.02 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.
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.
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Chapter 1 Introductory
Part 1.0 Miscellaneous
Regulation 1.0.02
2 Corporations Regulations 2001
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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).
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 fund means a public offer superannuation fund, or a sub-fund
of a public offer superannuation fund, that has the following characteristics:
(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;
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(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.
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.
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.
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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:
(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
(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;
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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.
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.
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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
(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—the number allotted to a person on registration of that
person as an auditor.
regulated superannuation fund has the same meaning as in the SIS Act.
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.
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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.
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.
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.
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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
(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.
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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.
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)
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)
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Item Document Provision of the Act
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)
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.
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)
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Item Document Provision of the Act
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.
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
(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:
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(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
(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
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(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
(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
(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:
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(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.
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), 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;
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Chapter 1 Introductory
Part 1.0 Miscellaneous
Regulation 1.0.15
16 Corporations Regulations 2001
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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.
(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
(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.
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Introductory Chapter 1
Miscellaneous Part 1.0
Regulation 1.0.21
Corporations Regulations 2001 17
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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.
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Chapter 1 Introductory
Part 1.1 Prescribed amounts
Regulation 1.1.01
18 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Introductory Chapter 1
Interpretation Part 1.2
General Division 1
Regulation 1.2.01
Corporations Regulations 2001 19
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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.
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Chapter 1 Introductory
Part 1.2A Disclosing entities
Regulation 1.2A.01
20 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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, 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;
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Introductory Chapter 1
Disclosing entities Part 1.2A
Regulation 1.2A.03
Corporations Regulations 2001 21
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(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:
(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.
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Chapter 2A Registration of companies
Part 2A.1 Size of partnerships or associations (Act s 115(2))
Regulation 2A.1.01
22 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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):
private sector participant means an entity that obtains the majority of its revenue
from sources other than Commonwealth, State or Territory appropriations.
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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 23
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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
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Chapter 2A Registration of companies
Part 2A.2 Change of place of registration of company (Act s 119A(3))
Regulation 2A.2.04
24 Corporations Regulations 2001
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(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.
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Basic features of a company Chapter 2B
Names Part 2B.6
Regulation 2B.6.01
Corporations Regulations 2001 25
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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:
(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.
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Chapter 2B Basic features of a company
Part 2B.6 Names
Regulation 2B.6.03
26 Corporations Regulations 2001
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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.
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Registers Chapter 2C
Registers generally Part 2C.1
Location of register Division 2C.1.1
Regulation 2C.1.01
Corporations Regulations 2001 27
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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).
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Chapter 2C Registers
Part 2C.1 Registers generally
Division 2C.1.2 Right to inspect and get copies of register
Regulation 2C.1.02
28 Corporations Regulations 2001
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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.
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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 29
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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);
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
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Chapter 2C Registers
Part 2C.1 Registers generally
Division 2C.1.3 Use of information on registers by bodies corporate
Regulation 2C.1.05
30 Corporations Regulations 2001
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(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.
(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.
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Officers and employees Chapter 2D
Restrictions on indemnities, insurance and termination payments Part 2D.2
Termination payments Division 2D.2.2
Regulation 2D.2.01
Corporations Regulations 2001 31
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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):
(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.
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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
32 Corporations Regulations 2001
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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.
(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.
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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 33
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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
(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.
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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
34 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
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Officers and employees Chapter 2D
Ban on hedging remuneration of key management personnel Part 2D.7
Regulation 2D.7.01
Corporations Regulations 2001 35
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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
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Chapter 2D Officers and employees
Part 2D.7 Ban on hedging remuneration of key management personnel
Regulation 2D.7.01
36 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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Related party transactions Chapter 2E
Regulation 2E.1.01
Corporations Regulations 2001 37
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Chapter 2G Meetings
Part 2G.2 Meetings of members of companies
Division 6 Proxies and body corporate representatives
Regulation 2G.2.01
38 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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).
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Charges Chapter 2K
Registration Part 2K.2
Regulation 2K.2.01
Corporations Regulations 2001 39
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
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.
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Chapter 2K Charges
Part 2K.2 Registration
Regulation 2K.2.02
40 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
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Debentures Chapter 2L
Duties of borrower Part 2L.2
Regulation 2L.2.01
Corporations Regulations 2001 41
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Chapter 2M Financial reports and audit
Part 2M.3 Financial reporting
Division 1 Annual financial reports and directors’ reports
Regulation 2M.3.01
42 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
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
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Financial reporting Part 2M.3
Annual financial reports and directors’ reports Division 1
Regulation 2M.3.03
Corporations Regulations 2001 43
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Item Condition (if any) Details
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
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
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
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Chapter 2M Financial reports and audit
Part 2M.3 Financial reporting
Division 1 Annual financial reports and directors’ reports
Regulation 2M.3.03
44 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Item Condition (if any) Details
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)
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;
(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
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Financial reporting Part 2M.3
Annual financial reports and directors’ reports Division 1
Regulation 2M.3.03
Corporations Regulations 2001 45
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Item Condition (if any) Details
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
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 disclosing entity or
any of its subsidiaries 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
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
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Chapter 2M Financial reports and audit
Part 2M.3 Financial reporting
Division 1 Annual financial reports and directors’ reports
Regulation 2M.3.03
46 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Item Condition (if any) Details
(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
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 an option or right over equity
instruments:
(a) issued or issuable by the disclosing
entity or any of its subsidiaries; and
(b) held, whether directly, indirectly or
beneficially, by any of the following:
(i) each key management person;
(ii) a close member of the family
of that person;
(iii) an entity over which the
person or the family member
has, either directly or
indirectly, control, joint control
or significant influence
The number of each of the following:
(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
18 For an equity instrument (other than an
option or a right):
(a) issued or issuable by the disclosing
entity or any of its subsidiaries; and
(b) held, whether directly, indirectly or
beneficially, by any of the following:
(i) each key management person;
(ii) a close member of the family
of that person;
(iii) an entity over which the
The number of each of the following:
(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
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Regulation 2M.3.03
Corporations Regulations 2001 47
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Item Condition (if any) Details
person or the family member
has, either directly or
indirectly, control, joint control
or significant influence
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
19 For a transaction (other than share-based
payment compensation) that:
(a) involves an equity instrument issued
or issuable by the disclosing entity or
any of its subsidiaries; and
(b) has occurred, during the reporting
period, between the disclosing entity
or any of its subsidiaries and any of
the following:
(i) a key management person;
(ii) a close member of the family
of that person;
(iii) an entity over which the
person or the family member
has, either directly or
indirectly, control, joint control
or significant influence;
if the terms or conditions of the
transaction were more favourable than
those that it is reasonable to expect the
entity would adopt 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
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
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Division 1 Annual financial reports and directors’ reports
Regulation 2M.3.03
48 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Item Condition (if any) Details
period
(g) A summary of the terms and conditions
of the loans
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
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:
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Regulation 2M.3.03
Corporations Regulations 2001 49
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Item Condition (if any) Details
(i) interest expense; or
(ii) write-downs of receivables and
allowances made for doubtful
receivables
(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 to 19 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 disclosing entity or the relevant subsidiary that issued
the equity instrument; and
(ii) the class of equity instrument; and
(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 that are in substance options, including non-recourse
loans.
(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; and
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Chapter 2M Financial reports and audit
Part 2M.3 Financial reporting
Division 1 Annual financial reports and directors’ reports
Regulation 2M.3.03
50 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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; and
(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
(b) defined in a relevant accounting standard that is applied for the purpose of
disclosing information;
has the meaning given by that accounting standard.
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Financial reports and audit Chapter 2M
Auditor Part 2M.4
Regulation 2M.4.01A
Corporations Regulations 2001 51
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Chapter 2M Financial reports and audit
Part 2M.4A Annual transparency reports for auditors
Regulation 2M.4A.01
52 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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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 53
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Chapter 2N Updating ASIC information about companies and registered schemes
Part 2N.2 Extract of particulars
Regulation 2N.2.01
54 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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.
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Updating ASIC information about companies and registered schemes Chapter 2N
Extract of particulars Part 2N.2
Regulation 2N.2.01
Corporations Regulations 2001 55
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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
(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.
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Chapter 2N Updating ASIC information about companies and registered schemes
Part 2N.4 Return of particulars
Regulation 2N.4.01
56 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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);
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Return of particulars Part 2N.4
Regulation 2N.4.01
Corporations Regulations 2001 57
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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Chapter 5 External administration
Part 5.1 Arrangements and reconstructions
Regulation 5.1.01
58 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
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.
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External administration Chapter 5
Receivers, and other controllers, of corporations Part 5.2
Regulation 5.2.01
Corporations Regulations 2001 59
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
5.2.02 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.
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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.01
60 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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;
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Administration of a company’s affairs with a view to executing a deed of company arrangement Part
5.3A
Regulation 5.3A.03AB
Corporations Regulations 2001 61
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
(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.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.
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.
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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.06AB
62 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.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.
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External administration Chapter 5
Winding up in insolvency Part 5.4
Regulation 5.4.01
Corporations Regulations 2001 63
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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Chapter 5 External administration
Part 5.4C Winding up by ASIC
Regulation 5.4C.01
64 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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External administration Chapter 5
Voluntary winding up Part 5.5
Regulation 5.5.01
Corporations Regulations 2001 65
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Chapter 5 External administration
Part 5.6 Winding up generally
Regulation 5.6.01
66 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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.
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Winding up generally Part 5.6
Regulation 5.6.09
Corporations Regulations 2001 67
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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
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(b) a meeting of the members of a company, other than a meeting mentioned in
paragraph (2)(a); or
(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;
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.
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(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
(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).
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(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.
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
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(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.
(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
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(b) the meeting is a meeting of eligible employee creditors mentioned in
paragraph 444DA(2)(a) of the Act.
(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.
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
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(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 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.
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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.
(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
(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.
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(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 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.
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(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.
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:
(i) a bill of exchange; or
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(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.
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
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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.
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:
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(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 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.
(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
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(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
(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:
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(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.
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.
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.
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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
(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.
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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.
(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 payment, up to the date of the
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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
(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;
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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.
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.
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(2) A formal proof of debt or claim:
(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
(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
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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.
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;
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the liquidator must inform the creditor by whom it was lodged, in writing, of his
or her grounds for the revocation or amendment.
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.
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.
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Regulation 5.6.59
Corporations Regulations 2001 89
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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.
(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
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(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 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.
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.
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Regulation 5.6.65
Corporations Regulations 2001 91
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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
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Part 5.6 Winding up generally
Regulation 5.6.67
92 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
(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;
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.
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Regulation 5.6.69
Corporations Regulations 2001 93
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(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;
(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.
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Regulation 5.6.72
94 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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
Corporations Regulations 2001 95
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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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Chapter 5B Bodies corporate registered as companies, and registrable bodies
Part 5B.2 Registrable bodies
Regulation 5B.2.01
96 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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.
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Registrable bodies Part 5B.2
Regulation 5B.2.03
Corporations Regulations 2001 97
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
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.
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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
98 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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.
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Names of registrable Australian bodies and foreign companies Part 5B.3
Regulation 5B.3.03
Corporations Regulations 2001 99
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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Chapter 5C Managed investment schemes
Part 5C.1 Registration of managed investment schemes
Regulation 5C.1.01
100 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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
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Regulation 5C.1.03
Corporations Regulations 2001 101
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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Chapter 5C Managed investment schemes
Part 5C.2 The responsible entity
Regulation 5C.2.01
102 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Managed investment schemes Chapter 5C
The compliance plan Part 5C.4
Regulation 5C.4.01
Corporations Regulations 2001 103
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Chapter 5C Managed investment schemes
Part 5C.5 The compliance committee
Regulation 5C.5.01
104 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Winding up Part 5C.9
Regulation 5C.9.01
Corporations Regulations 2001 105
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Chapter 5C Managed investment schemes
Part 5C.11 Exemptions and modifications
Division 1 Exemptions
Regulation 5C.11.01
106 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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:
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Exemptions and modifications Part 5C.11
Exemptions Division 1
Regulation 5C.11.01
Corporations Regulations 2001 107
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(i) the scheme relates to a Chapter 5 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:
(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.
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Part 5C.11 Exemptions and modifications
Division 1 Exemptions
Regulation 5C.11.01
108 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Exemptions and modifications Part 5C.11
Modifications Division 2
Regulation 5C.11.02
Corporations Regulations 2001 109
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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’.
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.
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Chapter 5D Licensed trustee companies
Part 5D.1 Preliminary
Regulation 5D.1.01
110 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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
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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.
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
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Regulation 5D.1.03
112 Corporations Regulations 2001
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(b) an instrument which evidences a right or interest mentioned in
paragraph (a); or
(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
(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;
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(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.
(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.
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Chapter 5D Licensed trustee companies
Part 5D.2 Powers etc of licensed trustee companies
Division 2.1 Annual Information Returns
Regulation 5D.2.01
114 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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.
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Powers etc of licensed trustee companies Part 5D.2
Annual Information Returns Division 2.1
Regulation 5D.2.02
Corporations Regulations 2001 115
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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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Chapter 5D Licensed trustee companies
Part 5D.2 Powers etc of licensed trustee companies
Division 2.2 Common funds
Regulation 5D.2.03
116 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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
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Powers etc of licensed trustee companies Part 5D.2
Common funds Division 2.2
Regulation 5D.2.06
Corporations Regulations 2001 117
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(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.
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.
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Part 5D.2 Powers etc of licensed trustee companies
Division 2.2 Common funds
Regulation 5D.2.06
118 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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
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Common funds Division 2.2
Regulation 5D.2.07
Corporations Regulations 2001 119
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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:
(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.
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Part 5D.2 Powers etc of licensed trustee companies
Division 2.2 Common funds
Regulation 5D.2.08
120 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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Regulation of fees charged by licensed trustee companies Part 5D.3
Regulation 5D.3.01
Corporations Regulations 2001 121
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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.’
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Chapter 5D Licensed trustee companies
Part 5D.4 Obligations of receiving company after transfer
Regulation 5D.4.01
122 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Takeovers Chapter 6
Exceptions to the prohibition Part 6.2
Regulation 6.2.01
Corporations Regulations 2001 123
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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;
(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;
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Chapter 6 Takeovers
Part 6.2 Exceptions to the prohibition
Regulation 6.2.02
124 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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Takeovers Chapter 6
The takeover procedure Part 6.5
Regulation 6.5.01
Corporations Regulations 2001 125
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Chapter 6 Takeovers
Part 6.6 Variation of offers
Regulation 6.6.01
126 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Takeovers Chapter 6
Acceptances Part 6.8
Regulation 6.8.01
Corporations Regulations 2001 127
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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).
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Chapter 6 Takeovers
Part 6.10 Review and intervention
Regulation 6.10.01
128 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Compulsory acquisitions and buy-outs Chapter 6A
Compulsory acquisitions and buy-outs after takeover bid Part 6A.1
Regulation 6A.1.01
Corporations Regulations 2001 129
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Chapter 6CA Continuous disclosure
Regulation 6CA.1.01
130 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Fundraising Chapter 6D
Disclosure to investors about securities Part 6D.2
Regulation 6D.2.01
Corporations Regulations 2001 131
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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.
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Part 6D.2 Disclosure to investors about securities
Regulation 6D.2.04
132 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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;
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Disclosure to investors about securities Part 6D.2
Regulation 6D.2.04
Corporations Regulations 2001 133
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(c) an explanation of the role of the trustee;
(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;
(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.
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Part 6D.2 Disclosure to investors about securities
Regulation 6D.2.05
134 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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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Disclosure to investors about securities Part 6D.2
Regulation 6D.2.05
Corporations Regulations 2001 135
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(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;
(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.
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Part 6D.2 Disclosure to investors about securities
Regulation 6D.2.06
136 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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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Regulation 6D.2.06
Corporations Regulations 2001 137
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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
138 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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”.
Authorised Version F2017C00544 registered 13/07/2017
Prepared by the Office of Parliamentary Counsel, Canberra
Corporations Regulations 2001
Statutory Rules No. 193, 2001
made under the
Corporations Act 2001
Compilation No. 132
Compilation date: 2 July 2017
Includes amendments up to: F2017L00595
Registered: 13 July 2017
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 3–13
Volume 7: Endnotes
Each volume has its own contents
This compilations includes commenced amendments made by F2017L00321
Authorised Version F2017C00544 registered 13/07/2017
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 2 July 2017 (the compilation date).
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 the Legislation Register
(www.legislation.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 the Legislation Register 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.
Editorial changes
For more information about any editorial changes made in this compilation, see 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 the Legislation Register 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.
Authorised Version F2017C00544 registered 13/07/2017
Corporations Regulations 2001 i
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 2
7.7.02 Situations in which Financial Services Guide is not required ..................................... 2
7.7.02A Situations when Financial Services Guide is not required .......................................... 5
7.7.03 Financial Services Guide given by financial services
licensee: description of documents ............................................................................. 6
7.7.03A Financial Services Guide given by financial services
licensee: compensation arrangements ......................................................................... 7
7.7.04 Financial Services Guide given by financial services
licensee: remuneration, commission and benefits ....................................................... 7
7.7.04A Financial services guide given by financial services licensee:
more detailed information about remuneration etc...................................................... 9
7.7.04AAFinancial Services Guide given by financial services licensee: non-monetary benefit that is not conflicted remuneration 9
7.7.04ABFinancial Services Guide given by authorised representative: non-monetary benefit that is not conflicted remuneration 9
7.7.05 Record of advice given by financial services licensee ...............................................10
7.7.05A Financial Services Guide given by authorised representative
of financial services licensee: authorised representative
number .......................................................................................................................10
7.7.05B Personalised Financial Services Guide ......................................................................10
7.7.05C Exemption from providing certain information in a Financial
Services Guide ...........................................................................................................11
7.7.06 Financial Services Guide given by authorised representative
of financial services licensee: description of documents............................................12
7.7.06A Financial Services Guide given by authorised representative
of financial services licensee—licence number .........................................................13
7.7.06B Financial Services Guide given by authorised representative
of financial services licensee: compensation arrangements .......................................13
7.7.07 Financial Services Guide given by authorised representative
of financial services licensee: remuneration, commission and
benefits.......................................................................................................................13
7.7.07A Financial services guide given by authorised representative:
more detailed information about remuneration etc.....................................................15
7.7.08 Record of advice given by authorised representative of
financial services licensee ..........................................................................................16
Division 2A—Combined Financial Services Guide and Product
Disclosure Statement 17
7.7.08A Combined Financial Services Guide and Product Disclosure
Statement ...................................................................................................................17
Division 2AA—Combined Financial Services Guide and credit
guide 19
7.7.08B Modification of section 942DA of the Act.................................................................19
Division 2B—Record of small investment advice 20
7.7.08C Record of small investment advice—content requirements .......................................20
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ii Corporations Regulations 2001
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Division 3—Statement of Advice 21
7.7.09 Situations in which statement of advice is not required:
further advice .............................................................................................................21
7.7.09A Situations in which Statement of Advice is not required:
small investments threshold .......................................................................................21
7.7.09AA .................................................. Statement of Advice from financial services licensee 24
7.7.09AB............................................................. Modification of subsection 947B(4) of the Act 24
7.7.09B Statement of Advice from providing entity—information not
included in the Statement ...........................................................................................24
7.7.09BA.....................................................Statement of Advice from authorised representative 25
7.7.09BB............................................................. Modification of subsection 947C(4) of the Act 26
7.7.09BCStatement of Advice given by financial services licensee: non-monetary benefit that is not conflicted remuneration 26
7.7.09BDStatement of Advice given by authorised representative: non-monetary benefit that is not conflicted remuneration 26
7.7.09C Requirement to keep Statement of Advice and other
documents ..................................................................................................................27
7.7.10 Products for which a Statement of Advice is not required .........................................27
7.7.10AA .................. Obligation on authorised representative to give a financial services guide 27
7.7.10AAARecord of advice without a recommendation to purchase or sell—content requirements 27
7.7.10AB................................................................. Financial services guide—contents of guide 28
7.7.10AC................................................................................................ Financial services guide 29
7.7.10AD ............................................................................................... Financial services guide 29
7.7.10AE.................................................. Situations in which Statement of Advice not required 30
7.7.10AFVarious consequential amendments to Division 7 of Part 7.7 concerning situations where Financial Services Guides do not have to be given 32
7.7.10AG ...................................... Various consequential amendments to Division 7 of Part 7.7 33
7.7.10AH ............................................................................................................... Business days 35
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...........................................................................................................35
7.7.10A Statements of Advice—requirement to state information as
amounts in dollars ......................................................................................................36
7.7.10B Insertion of definition—further advice.......................................................................36
7.7.10C Omission of definition—further market-related advice .............................................37
7.7.10D Additional information in Statement of Advice .........................................................37
7.7.10E Additional information in Statement of Advice .........................................................37
7.7.11 Statement of Advice given by financial services licensee..........................................37
7.7.11A Statement of Advice given by authorised representative of
financial services licensee—licence number..............................................................38
7.7.11B Statement of Advice—disclosure of dollar amounts..................................................38
7.7.12 Statement of Advice given by authorised representative of
financial services licensee ..........................................................................................38
7.7.13 Statement of Advice provided by authorised representative—
disclosure of dollar amounts ......................................................................................39
7.7.13A Additional information about charges or benefits—
disclosure of dollar amounts ......................................................................................40
7.7.13B Additional information about charges or benefits—
disclosure of dollar amounts ......................................................................................40
Division 4—General advice provided to a retail client 42
7.7.14 Product Disclosure Statement not required ................................................................42
Division 5—Other disclosure requirements 43
7.7.20 General advice to retail client—no obligation to warn client.....................................43
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7.7.20A Extension of disclosure requirements to wholesale clients
dealing with certain unauthorised insurers .................................................................43
Division 6—Exemptions from application of Part 7.7 of the Act 45
7.7.21 Exemption from application of Part 7.7 of the Act ....................................................45
Part 7.7A—Best interests obligations and remuneration 46
Division 2—Best interests obligations 46
7.7A.05 Best interests duty—basic banking products etc. .......................................................46
7.7A.06 Best interests duty—general insurance products........................................................46
7.7A.07 Best interests duty—basic banking products..............................................................46
Division 3—Charging ongoing fees to clients 47
7.7A.10 Arrangements that are not ongoing fee arrangements ................................................47
7.7A.11 Fee disclosure statements: product fee.......................................................................47
Division 4—Conflicted remuneration 48
Subdivision 1—Monetary benefits 48
7.7A.12 What subdivision is about ..........................................................................................48
7.7A.12A ......................................................................................... Life risk insurance products 48
7.7A.12B................................................................................................................ Stamping fees 48
7.7A.12C...................................................................................................Time-sharing schemes 49
7.7A.12D ..............................................................................................................Brokerage fees 49
7.7A.12E....................................................................... Fees paid by clients for dealing services 51
7.7A.12EAApplication of ban on conflicted remuneration—purchase or sale of financial advice business 51
Subdivision 2—Monetary or non-monetary benefits 51
7.7A.12F ............................................................................................. What subdivision is about 51
7.7A.12G .........................................................................................................General insurance 52
7.7A.12H ............................................................. Basic banking and general insurance products 52
7.7A.12I Mixed benefits ...........................................................................................................52
7.7A.13 Non-monetary benefit given in certain circumstances not
conflicted remuneration: prescribed amount ..............................................................53
7.7A.14 Non-monetary benefit given in certain circumstances not
conflicted remuneration: education or training course ...............................................53
7.7A.15 Non-monetary benefit given in certain circumstances not
conflicted remuneration: other education and training benefit ...................................54
7.7A.15ANon-monetary benefit given in certain circumstances not conflicted remuneration—education and training in conducting a financial services business 54
7.7A.15BApplication of ban on conflicted remuneration—non-platform operator (Division 4 of Part 7.7A of Chapter 7 of the Act does not apply) 54
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)...........................................................................................................55
7.7A.16AApplication of ban on conflicted remuneration—platform operator (Division 4 of Part 7.7A of Chapter 7 of the Act applies) 55
7.7A.16BApplication of ban on conflicted remuneration—person other than platform operator (Division 4 of Part 7.7A of Chapter 7 of the Act applies) 56
7.7A.16BA.......................................................................................................... Sale of business 58
7.7A.16CApplication of ban on conflicted remuneration—employer and employee (Division 4 of Part 7.7A of Chapter 7 of the Act does not apply) 58
7.7A.16DApplication 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)59
7.7A.16EApplication 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) 60
7.7A.16FApplication of ban on conflicted remuneration—benefit is a pass through of a grandfathered benefit (benefit is not conflicted remuneration) 60
Subdivision 3—Asset-based fees on borrowed amounts 61
7.7A.17 Financial services licensees .......................................................................................61
7.7A.18 Authorised representatives.........................................................................................61
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Division 6—Exemptions from application of Part 7.7A of the Act 62
7.7A.40 Exemption from application of Part 7.7A of the Act .................................................62
Part 7.8—Other provisions relating to conduct etc connected
with financial products and financial services, other
than financial product disclosure 63 7.8.01A Wholesale client money.............................................................................................63
7.8.01 Obligation to pay money into an account...................................................................63
7.8.02 Accounts maintained for section 981B of the Act......................................................66
7.8.03 How money to be dealt with if licensee ceases to be licensed
etc...............................................................................................................................68
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................................................................................................................70
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 ........................................................................................................................70
7.8.06 Statement setting out terms of loan etc ......................................................................71
7.8.06A Property exempt from Division 3 of Part 7.8 of the Act ............................................71
7.8.06B Wholesale client property ..........................................................................................71
7.8.07 How property to which Division 3 of Part 7.8 of the Act to
be dealt with...............................................................................................................71
7.8.08 Debts of financial services licensee in relation to premiums
etc...............................................................................................................................73
7.8.08A Limit of margin lending facility taken to be increased...............................................77
7.8.08B Exemption from requirement to make unsuitability
assessment..................................................................................................................78
7.8.09 Reasonable inquiries etc about retail client: inquiries ................................................79
7.8.09A Modification of section 985G of the Act....................................................................80
7.8.10 Circumstances in which margin lending facility is unsuitable ...................................80
7.8.10A Margin lending facility taken not to be unsuitable .....................................................80
7.8.11 Particular categories of information to be shown in records ......................................80
7.8.11A Particular categories of information to be shown in records:
records of non-monetary benefit that is not conflicted
remuneration ..............................................................................................................81
7.8.12 Requirements in relation to financial records of financial
services licensees .......................................................................................................82
7.8.12A Modification of section 989B of the Act....................................................................82
7.8.13 Auditor’s report with annual profit and loss statement and
balance sheet ..............................................................................................................84
7.8.13A Compliance certificate with profit and loss statement and
balance sheet ..............................................................................................................84
7.8.14 Contents of annual profit and loss statement and balance
sheet and applicable accounting procedures ..............................................................85
7.8.14A Lodgement of annual profit and loss statement and balance
sheet ...........................................................................................................................85
7.8.14B Modification of section 990B of the Act....................................................................85
7.8.15 Appointment of auditor by financial services licensee...............................................87
7.8.16 When person is ineligible to act as auditor of financial
services licensee.........................................................................................................88
7.8.17 Priority to clients’ orders............................................................................................90
7.8.18 Instructions to deal through licensed markets ............................................................90
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7.8.19 Records of instructions to deal on licensed markets and
foreign markets ..........................................................................................................92
7.8.20 Dealings with non-licensees.......................................................................................93
7.8.20A Dealings involving employees of financial service
licensees—risk insurance products ............................................................................95
7.8.21 Dealings involving employees of financial services licensees ...................................95
7.8.21A Anti-hawking provisions if no Product Disclosure Statement
is required ..................................................................................................................96
7.8.21B Anti-hawking provisions if no Product Disclosure Statement
is required—carbon units, Australian carbon credit units and
eligible international emissions units .........................................................................97
7.8.22 Hours for hawking certain financial products ............................................................97
7.8.22A Modification of Part 7.8 .............................................................................................98
7.8.23 Return of financial product: transfer between superannuation
entities or RSAs .........................................................................................................98
7.8.24 Right of return not to apply........................................................................................98
7.8.25 Variation of amount to be repaid ...............................................................................99
7.8.26 Exemption from application of section 992A of the Act............................................99
Part 7.9—Financial product disclosure and other provisions
relating to issue and sale of financial products 100
Division 1—Preliminary 100
7.9.01 Interpretation............................................................................................................100
7.9.02 Sub-plans .................................................................................................................102
7.9.02A Alternative ways of giving Statement ......................................................................103
7.9.02B Product Disclosure Statement in electronic form.....................................................103
Division 2—Arrangements for Product Disclosure Statements in
relation to superannuation products and RSA
products 105
Subdivision 2.1—Preliminary 105
7.9.03 Application of Division 2.........................................................................................105
Subdivision 2.2—Late provision of Product Disclosure Statement
for certain members of regulated superannuation
fund, public offer superannuation fund or
successor fund 105
7.9.04 Product Disclosure Statement to be provided later ..................................................105
Subdivision 2.3—Product Disclosure Statement for retirement
savings account 106
7.9.05 Situation in which Product Disclosure Statement is not
required....................................................................................................................106
Subdivision 2.4—Additional obligations for eligible rollover funds 106
7.9.06A Relevant superannuation entities..............................................................................106
7.9.06B Application forms ....................................................................................................106
Subdivision 2.5—Product Disclosure Statement for insurance
options 106
7.9.07 Modification of Act: Product Disclosure Statement in
relation to insurance options ....................................................................................106
Division 2A—Product Disclosure Statement for warrants 107
7.9.07A Warrants...................................................................................................................107
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Division 2B—Product Disclosure Statement for market-traded
derivatives 109
7.9.07B Product Disclosure Statements for certain market-traded
derivatives................................................................................................................109
7.9.07C Remedies for Product Disclosure Statements for certain
market-traded derivatives.........................................................................................110
Division 2BA—Product Disclosure Statement for discretionary
mutual funds 111
7.9.07CA.............Extension of Product Disclosure Statement requirements to wholesale clients 111
Division 2C—Situations where a Product Disclosure Statement
is not required 112
7.9.07D Product Disclosure Statement not required for offers of
bundled contracts of insurance.................................................................................112
7.9.07E Product Disclosure Statement not required if offer of
financial product is declined ....................................................................................112
7.9.07F Product Disclosure Statement not required if the client is not
contactable ...............................................................................................................112
7.9.07FA .................... Product Disclosure Statement not required for certain specified products 113
7.9.07FBProduct Disclosure Statement not required if client not in
this jurisdiction ........................................................................................................114
7.9.07FCProduct Disclosure Statement not required general insurance
situation....................................................................................................................114
Division 2D—Preparation and content of Product Disclosure
Statements 116
7.9.07J Only 1 responsible person for a Product Disclosure
Statement .................................................................................................................116
7.9.07K Definition of defective: Product Disclosure Statement,
Short-Form PDS or Replacement Product Disclosure
Statement .................................................................................................................116
Division 2E—Obligation to make information publicly available:
registrable superannuation entities 117
Subdivision 2E.1—Obligation to make product dashboard
publicly available 117
7.9.07L Modification of Act..................................................................................................117
7.9.07M Source of power for this Subdivision.......................................................................117
7.9.07N Definitions ...............................................................................................................117
7.9.07P Meaning of MySuper product dashboard reporting
standards..................................................................................................................118
7.9.07Q Product dashboard—how information must be set out ............................................118
7.9.07R Product dashboard—return target ............................................................................118
7.9.07S Product dashboard—return ......................................................................................119
7.9.07T Product dashboard—comparison between return target and
return........................................................................................................................119
7.9.07U Comparison to be set out as a graph.........................................................................120
7.9.07V Product dashboard—level of investment risk...........................................................121
7.9.07W Product dashboard—statement of fees and other costs ............................................121
Division 3—Dealing with money received for financial product
before the product is issued 122
7.9.08 Accounts ..................................................................................................................122
7.9.08A Dealing with interest ................................................................................................122
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7.9.08B Crediting of payments before money is received .....................................................123
7.9.08C Money held in trust for a superannuation product or RSA
product .....................................................................................................................123
7.9.08D Statutory funds under the Life Insurance Act 1995 ..................................................124
Division 4—Content of Product Disclosure Statements 125
Subdivision 4.1—Preliminary 125
7.9.09 Application of Division 4.........................................................................................125
Subdivision 4.1A—No Product Disclosure Statement for carbon
units, Australian carbon credit units and eligible
international emissions units 125
7.9.09A Application of Subdivision ......................................................................................125
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 ....................................................................................125
7.9.09C Modification of Act..................................................................................................126
Subdivision 4.2A—Form and content of Product Disclosure
Statement for margin loan 126
7.9.11 Application of Subdivision 4.2A..............................................................................126
7.9.11A Provisions of Part 7.7 of Act that do not apply in relation to
margin loan ..............................................................................................................126
7.9.11B Definitions for Subdivision 4.2A .............................................................................126
7.9.11C Modification of Act—margin loan...........................................................................127
7.9.11D Form and content of Product Disclosure Statement for
margin loan ..............................................................................................................127
7.9.11E Requirements for references to incorporated information for
margin loan ..............................................................................................................127
7.9.11F Retention of copies of Product Disclosure Statement for
margin loan ..............................................................................................................128
7.9.11G Requirement to provide copy of Product Disclosure
Statement for margin loan free of charge.................................................................129
7.9.11H Notification about change to Approved Securities List or
current interest rate for margin loan.........................................................................129
Subdivision 4.2B—Content of Product Disclosure Statement for
superannuation product 129
7.9.11K Application of Subdivision 4.2B..............................................................................129
7.9.11L Provisions of Part 7.7 of Act that do not apply in relation to
superannuation product ............................................................................................130
7.9.11LAAttribution of accrued default amount to MySuper product—exemption from significant event notice requirements 130
7.9.11LBAttribution of accrued default amount to MySuper product—modification of significant event notice requirements 130
7.9.11M Provisions of Part 7.9 of Act that do not apply in relation to
superannuation product ............................................................................................131
7.9.11N Modification of Act—superannuation product ........................................................131
7.9.11O Form and content of Product Disclosure Statement for
superannuation product ............................................................................................131
7.9.11P Requirements for references to incorporated information for
superannuation product ............................................................................................132
7.9.11Q Retention of copies of Product Disclosure Statement for
superannuation product ............................................................................................133
7.9.11R Requirement to provide copy of Product Disclosure
Statement for superannuation product free of charge...............................................134
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Subdivision 4.2C—Content of Product Disclosure Statement for
simple managed investment scheme 134
7.9.11S Application of Subdivision 4.2C..............................................................................134
7.9.11T Provisions of Part 7.7 of Act that do not apply in relation to
simple managed investment scheme ........................................................................135
7.9.11U Provisions of Part 7.9 of Act that do not apply in relation to
simple managed investment scheme ........................................................................135
7.9.11V Modification of Act—simple managed investment scheme.....................................135
7.9.11W Form and content of Product Disclosure Statement for
simple managed investment scheme ........................................................................136
7.9.11X Requirements for references to incorporated information for
simple managed investment scheme ........................................................................136
7.9.11Y Retention of copies of Product Disclosure Statement for
simple managed investment scheme ........................................................................137
7.9.11Z Requirement to provide copy of Product Disclosure
Statement for simple managed investment scheme free of
charge.......................................................................................................................138
Subdivision 4.3—Other arrangements for Product Disclosure
Statements and application forms 138
7.9.12 Modification of Act: Product Disclosure Statements and
application forms for standard employer-sponsors and
successor funds ........................................................................................................138
7.9.13 Offer of superannuation interest without application or
eligible application...................................................................................................138
7.9.14 Remedies for person acquiring financial product under
defective Product Disclosure Statement: superannuation and
RSAs........................................................................................................................139
7.9.14A Treatment of arrangements under which a person can instruct
another person to acquire a financial product...........................................................140
Subdivision 4.4—Product information for certain insurance
products 140
7.9.14B Product information .................................................................................................140
Division 4A—General 142
7.9.14C Labour standards and environmental, social and ethical
considerations ..........................................................................................................142
7.9.14D Further statements required in Product Disclosure
Statement—financial claims scheme .......................................................................142
7.9.15 More detailed information in Product Disclosure Statement:
unauthorised foreign insurer ....................................................................................143
7.9.15A Product Disclosure Statements—requirement to state
information as amounts in dollars ............................................................................144
7.9.15B Product Disclosure Statements—disclosure of dollar
amounts....................................................................................................................144
7.9.15C Product Disclosure Statements—disclosure of dollar
amounts....................................................................................................................145
7.9.15CA..............Less information in Product Disclosure Statement—financial claims scheme 146
7.9.15D Less information in product disclosure statement: general
insurance product .....................................................................................................146
7.9.15DA .................. Statement or information not included in a Product Disclosure Statement 146
7.9.15DB.... Requirement to keep record of Product Disclosure Statement and other documents 147
7.9.15DCRequirement to lodge documents mentioned in a Product Disclosure Statement with ASIC 148
7.9.15E More detailed information in product disclosure statement:
general insurance product ........................................................................................148
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7.9.15F Product disclosure statement: general insurance product .........................................148
7.9.15FA ..................... Transitional arrangements for regulations 7.9.15D, 7.9.15E and 7.9.15F 148
7.9.15G Business days...........................................................................................................149
7.9.15H New section 1012G: product disclosure statement may
sometimes be provided later ....................................................................................149
7.9.15I Modification of section 1012IA...............................................................................151
7.9.16 More detailed information in Product Disclosure Statement:
consumer credit insurance product...........................................................................151
7.9.16A Small scale offerings of managed investment and other
prescribed financial products (20 issues or sales in 12
months) ....................................................................................................................152
Division 4B—Ongoing disclosure 153
7.9.16G Ongoing disclosure of material changes and significant
events .......................................................................................................................153
Division 4C—Fee Disclosure for certain financial products 154
Subdivision 4C.1—Application 154
7.9.16J Application of Division 4C to financial products.....................................................154
7.9.16JA Application of Division 4C to financial products—temporary
arrangements............................................................................................................154
7.9.16K Application of Division 4C to periodic statements and
Product Disclosure Statements.................................................................................154
Subdivision 4C.2—Product Disclosure Statements 155
7.9.16L More detailed information about fees and costs.......................................................155
7.9.16M Modification of section 1015C of the Act................................................................155
7.9.16N Presentation, structure and format of fees and costs in
Product Disclosure Statements.................................................................................155
Subdivision 4C.3—Periodic statements 155
7.9.16O Presentation, structure and format of fees and charges in
periodic statements...................................................................................................155
Division 4D—Other requirements relating to Product Disclosure
Statements and Supplementary Product Disclosure
Statements 157
Subdivision 4D.1—Requirement to lodge a notice with ASIC 157
7.9.16T Variation of paragraph 1015D(2)(b) of the Act .......................................................157
Division 5—Ongoing requirements for product disclosure after
person becomes a member 158
Subdivision 5.1—Preliminary 158
7.9.17 Application of Division 5.........................................................................................158
Subdivision 5.2—Periodic statements for retail clients for
financial products that have an investment
component: regulated superannuation funds,
ADFs and RSAs 158
7.9.18 Application of Subdivision 5.2 ................................................................................158
7.9.19 Specific requirements for periodic statements:
superannuation funds (other than self managed
superannuation funds) and RSAs .............................................................................158
7.9.19A Withdrawal benefit—fees, charges or expenses.......................................................159
7.9.19B Withdrawal benefit—fees, charges and expenses ....................................................160
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7.9.20 Specific requirements for certain periodic statements:
superannuation funds (other than self managed
superannuation funds) ..............................................................................................160
7.9.20AASpecific requirements for certain periodic statements: superannuation funds (other than self managed superannuation funds)—long-term returns 162
7.9.20A Details of other significant benefits—disclosure of fees,
charges or expenses..................................................................................................164
7.9.20B Other significant benefits—disclosure of fees, charges or
expenses...................................................................................................................165
7.9.21 Specific requirements in particular cases: member (other
than capital guaranteed member) of fund other than a self
managed superannuation fund..................................................................................166
7.9.22 Specific requirements: capital guaranteed funds and RSAs .....................................166
7.9.23 Information for capital guaranteed fund: benefits reach
$10 000 ....................................................................................................................167
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 ....................................................167
Subdivision 5.3—Periodic statements for retail clients for
financial products that have an investment
component: information for RSAs 167
7.9.25 Application of Subdivision 5.3 ................................................................................167
7.9.26 Specific requirements where applicable: RSAs .......................................................168
7.9.27 Modification of Act: periodic statements for RSA holders ......................................169
7.9.28 Information for RSA: amount reaches $10 000 .......................................................169
Subdivision 5.4—Periodic statements for retail clients for
financial products that have an investment
component: additional information for
superannuation entities and RSA providers 169
7.9.29 Application of Subdivision 5.4 ................................................................................169
7.9.30 Additional information for change to choices ..........................................................169
Subdivision 5.4A—Periodic statements for retail clients for
financial products that have an investment
component: additional information for margin
lending facilities 170
7.9.30A Application of Subdivision 5.4A..............................................................................170
7.9.30B Details to be included in periodic statements for margin
lending facilities.......................................................................................................170
Subdivision 5.5—Fund information for retail clients for financial
products that have an investment component:
superannuation 171
7.9.31 Application of Subdivision 5.5 ................................................................................171
7.9.32 Reporting periods: general .......................................................................................171
7.9.33 Use of more than 1 document ..................................................................................172
Subdivision 5.6—Fund information for retail clients for financial
products that have an investment component:
fund information for regulated superannuation
funds and ADFs 172
7.9.34 Application of Subdivision 5.6 ................................................................................172
7.9.35 General requirement.................................................................................................172
7.9.36 Specific requirements in all cases ............................................................................172
7.9.37 Specific requirements in particular cases .................................................................172
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7.9.38 Specific information in particular case: self managed
superannuation fund.................................................................................................175
7.9.39 Benefits determined by life insurance products .......................................................175
Subdivision 5.7—Fund information for retail clients for financial
products that have an investment component:
fund information for pooled superannuation trusts 176
7.9.40 Application of Subdivision 5.7 ................................................................................176
7.9.41 Specific requirements in all cases ............................................................................176
7.9.42 Specific requirements in particular cases .................................................................176
Subdivision 5.8—Ongoing disclosure of material changes and
significant events 177
7.9.43 Modification of Act: disclosure of material changes and
significant events in relation to superannuation products and
RSA products...........................................................................................................177
7.9.44 Benefits to be paid to eligible rollover fund.............................................................178
Subdivision 5.9—Information on request: members 179
7.9.45 Regulated superannuation funds, ADFs and pooled
superannuation trusts ...............................................................................................179
7.9.46 RSAs........................................................................................................................179
Subdivision 5.10—Information on request: payments 180
7.9.47 Modification of Act: charges for information requested ..........................................180
Subdivision 5.11—Information about complaints 180
7.9.48 Source of power for this Subdivision.......................................................................180
7.9.48A Definitions ...............................................................................................................180
7.9.48B Complaints—general ...............................................................................................180
7.9.48C Complaints about benefits other than death benefits—
decision made ..........................................................................................................181
7.9.48D Complaints about benefits other than death benefits—no
decision made ..........................................................................................................181
7.9.48A Definitions ...............................................................................................................181
7.9.48B Complaints—general ...............................................................................................182
Subdivision 5.12—Periodic report when product holder ceases to
hold product: superannuation products and RSA
products 182
7.9.49 Application of Subdivision 5.12 ..............................................................................182
7.9.50 Exit reporting period ................................................................................................183
7.9.51 Time for compliance ................................................................................................183
7.9.52 General requirement.................................................................................................183
7.9.53 Information on death of product holder ...................................................................183
7.9.54 Specific requirements in all cases ............................................................................183
7.9.55 Specific requirements in particular cases .................................................................184
7.9.56 Exceptions to exit reporting period provisions:
superannuation products and RSA products ............................................................184
7.9.57 Exception—members subject to compulsory protection of
small amounts ..........................................................................................................184
7.9.58 Information to be given in cases other than death of RSA
holder .......................................................................................................................185
7.9.59 Information to be given where applicable................................................................185
7.9.60 Modification of Act: exceptions to exit reporting period
provisions.................................................................................................................185
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Division 5AA—General requirements for financial disclosure 186
7.9.60A Modification of Act: disclosure ...............................................................................186
7.9.60B Disclosure of transactions in periodic statements ....................................................186
Division 5AB—Short-Form Product Disclosure Statements 188
7.9.61AA .......................... Modification of the Act: Short-Form Product Disclosure Statements 188
Division 5A—Dealing with money received for financial product
before the product is issued 190
7.9.61A Lost application money............................................................................................190
7.9.61B Issue of substitute insurance product .......................................................................190
7.9.61C Cheques....................................................................................................................191
Division 5B—Confirming transactions 192
7.9.61D Transactions involving superannuation products .....................................................192
Division 5C—CGS depository interests 193
7.9.61E CGS depository interest information website ..........................................................193
Division 6—Confirmation of transactions 194
7.9.62 Confirmation of transaction: superannuation products and
RSAs........................................................................................................................194
7.9.63 Confirmation of transactions: precise costs of transaction not
known ......................................................................................................................196
7.9.63A Persons who must confirm transactions ...................................................................196
7.9.63B Content of confirmation of transactions—general ...................................................197
7.9.63C Confirmation of transaction—multiple transactions ................................................198
7.9.63D Confirmation of transaction—information about cooling-off
period .......................................................................................................................199
7.9.63E Confirmation of transaction—facility that provides written
confirmation.............................................................................................................200
7.9.63F Confirmation of transaction—acquisition of financial
product .....................................................................................................................200
7.9.63G Confirmation of transaction—disposal of financial product ....................................200
7.9.63H Certain product issuers and regulated persons must meet
appropriate dispute resolution requirements—self managed
superannuation funds ...............................................................................................200
7.9.63I Confirmation of transaction in electronic form ........................................................200
Division 7—Cooling-off periods 202
7.9.64 Cooling-off periods not to apply ..............................................................................202
7.9.64A Notification of exercise of right of return—risk insurance
products....................................................................................................................203
7.9.65 Return of financial product: general.........................................................................203
7.9.66 Return of financial product: superannuation and RSAs ...........................................203
7.9.67 Variation of amount to be repaid .............................................................................204
7.9.68 Modification of section 1019B of the Act: client includes
standard employer-sponsor ......................................................................................206
7.9.69 Modification of provisions of Division 5 of Part 7.9 of the
Act: terms of contract...............................................................................................207
7.9.70 Modification of provisions of Division 5 of Part 7.9 of the
Act: distributions......................................................................................................208
Division 8—Other requirements 209
7.9.71 Modification of section 1017D of the Act: use of more than
1 document...............................................................................................................209
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7.9.71A Periodic statements—exemption for passbook accounts..........................................209
7.9.72 Modification of section 1017D of the Act: information
already given............................................................................................................209
7.9.73 Reporting periods: general .......................................................................................209
7.9.74 Form of application..................................................................................................209
7.9.74A Periodic statements—requirement to state information as
amounts in dollars ....................................................................................................210
7.9.75 Content of periodic statements: costs of transactions...............................................211
7.9.75A Ways of giving information .....................................................................................213
7.9.75B Information in electronic form .................................................................................213
7.9.75BA............................................................. Fund information made available on a website 214
7.9.75C Periodic statements—disclosure of amounts............................................................214
7.9.75D Periodic statements—disclosure of amounts............................................................215
7.9.76 Consents to certain statements .................................................................................216
7.9.77 Alternative dispute resolution requirements—product issuer
that is not a financial services licensee.....................................................................216
7.9.78 Additional statement: trustee required to provide benefits.......................................217
7.9.80B Short selling of certain warrants ..............................................................................217
Division 9—Additional requirements for transfer of lost
members and lost RSA holders 219
7.9.81 Lost members...........................................................................................................219
7.9.82 Lost RSA holders.....................................................................................................219
Division 11—Superannuation to which arrangements apply
under the Family Law Act 1975 220
7.9.84 Definitions for Division 11 ......................................................................................220
7.9.85 Application of Division 11.......................................................................................221
7.9.86 Acquisition of financial product...............................................................................221
7.9.87 Modification of Act: Product Disclosure Statement in
relation to superannuation interest under Family Law Act ......................................221
7.9.88 Statement content in relation to superannuation interest
under Family Law Act: superannuation fund...........................................................222
7.9.89 Statement content in relation to superannuation interest
under Family Law Act: RSA ...................................................................................223
7.9.90 Information for existing holders of superannuation products
and RSA products in relation to superannuation interest .........................................223
7.9.91 Periodic statements for retail clients for financial products
that have an investment component—general..........................................................224
7.9.92 Periodic statements for retail clients for financial products
that have an investment component—superannuation interest
other than percentage-only interest ..........................................................................224
7.9.93 Trustees of superannuation entities—additional obligation to
provide information in relation to superannuation interest.......................................225
7.9.94 Division 5 of Part 7.9 of the Act not to apply in relation to
non-member spouse .................................................................................................225
Division 12—Medical indemnity insurance 226
7.9.95 Medical indemnity insurance—exemption from product
disclosure provisions................................................................................................226
Division 13—Unsolicited offers to purchase financial products
off market 227
7.9.96 Percentage increase or decrease in the market value of a
product .....................................................................................................................227
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7.9.97 Off-market trading by professional investors etc .....................................................227
7.9.97A Information in offer document if payment is to be made in
instalments ...............................................................................................................227
Division 14—Exemptions from Parts 7.7, 7.8 and 7.9 of the Act 229
7.9.98 Certain providers of financial services exempted from the
requirements of Parts 7.7, 7.8 and 7.9 of the Act .....................................................229
7.9.98A Exemption from application of Part 7.9 of the Act ..................................................229
Division 15—Disclosure in relation to short sales covered by
securities lending arrangement of listed
section 1020B products 230
7.9.99 Interpretation............................................................................................................230
7.9.100 Seller disclosure.......................................................................................................230
7.9.100ASeller disclosure of existing short position...............................................................232
7.9.101 Licensee disclosure ..................................................................................................232
7.9.102 Public disclosure of information ..............................................................................232
Part 7.10—Market misconduct and other prohibited conduct
relating to financial products and financial services 234 7.10.01 Division 3 financial products ...................................................................................234
7.10.02 Professional standards schemes ...............................................................................234
7.10.03 Exemption for market participants of qualifying gas trading
exchange ..................................................................................................................236
Part 7.11—Title and transfer 237
Division 1—Preliminary 237
7.11.01 Definitions ...............................................................................................................237
7.11.03 Arrangements about Division 4 financial products ..................................................238
7.11.04 Arrangements for forms ...........................................................................................239
7.11.05 Document duly completed in accordance with a particular
form .........................................................................................................................240
7.11.06 Stamping of documents............................................................................................240
7.11.07 Application of Division 3 of Part 7.11 of the Act to certain
bodies.......................................................................................................................241
7.11.08 Interests in registered schemes.................................................................................241
Division 2—Application of Part 7.11 242
7.11.09 Application ..............................................................................................................242
Division 3—Transfer of Division 3 securities effected otherwise
than through a prescribed CS facility 243
7.11.10 Application of Division 3.........................................................................................243
7.11.11 Sufficient transfer: general.......................................................................................243
7.11.12 Sufficient transfer of Division 3 assets: licensed trustee
company or Public Trustee of a State or Territory ...................................................243
7.11.13 Sufficient transfer of Division 3 rights: licensed trustee
company or Public Trustee of a State or Territory ...................................................244
7.11.14 Sufficient transfer ....................................................................................................244
7.11.15 Transferee’s execution of transfer of Division 3 assets............................................244
7.11.16 Transferee’s execution of transfer of Division 3 rights ............................................244
7.11.17 Transfer document that purports to bear stamp of transferor's
broker.......................................................................................................................245
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7.11.18 Warranties by market licensee if transfer document purports
to bear its stamp .......................................................................................................246
7.11.19 Indemnities by market licensee and broker if transfer
document purports to bear their stamps ...................................................................247
7.11.20 Joint and several warranties and liabilities...............................................................247
7.11.21 Registration of certain instruments ..........................................................................248
7.11.22 Details to be included in instrument of transfer .......................................................248
Division 4—Transfer of Division 4 financial products effected
through prescribed CS facility 249
7.11.23 Application of Division 4.........................................................................................249
7.11.24 Application of ASTC operating rules.......................................................................249
7.11.25 Participant’s authority to enter into transaction continues
despite client’s death................................................................................................249
7.11.26 Authority to enter into transaction gives authority to transfer..................................249
7.11.27 Effect of proper ASTC transfer on transferee: Division 4
financial products other than rights..........................................................................250
7.11.28 Effect of proper ASTC transfer on transferee: rights ...............................................251
7.11.29 Warranties by participant if identification code is included in
transfer document ....................................................................................................252
7.11.30 Indemnities in respect of warranted matters: transfer not
effected by the participant........................................................................................253
7.11.31 Indemnities in respect of warranted matters: transferor not
legally entitled or authorised to transfer Division 4 financial
products....................................................................................................................253
7.11.32 Indemnities in respect of warranted matters: participant not
authorised to effect transfer......................................................................................254
7.11.33 Joint and several warranties and liabilities...............................................................255
7.11.34 ASTC entitled to assume its operating rules complied with.....................................255
7.11.35 ASTC-regulated transfer not to be registered unless proper
ASTC transfer ..........................................................................................................255
7.11.36 Issuer not to refuse to register proper ASTC transfer...............................................256
7.11.37 Determination of who holds Division 4 financial products for
the purposes of meeting ...........................................................................................256
7.11.38 Determination of who holds Division 4 financial products in
class of Division 4 financial products for the purposes of
meeting ....................................................................................................................256
7.11.39 Determination of who holds Division 4 financial products for
the purposes of conferring security benefits.............................................................257
Division 5—Offences 258
7.11.40 Stamping of broker’s stamp on sufficient transfer ...................................................258
7.11.41 Inclusion of identification codes in proper ASTC transfers .....................................259
7.11.42 Contravention by participant of the ASTC certificate
cancellation provisions relating to use of cancellation stamps .................................259
Division 6—Civil liability 260
7.11.43 Contravention by participant of the ASTC certificate
cancellation provisions.............................................................................................260
Part 7.12—Miscellaneous 261 7.12.01 Destruction of records by ASIC...............................................................................261
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Chapter 8—Mutual recognition of securities offers 262
Part 8.1—Preliminary 262 8.1.01 Prescribed foreign recognition scheme (Act s 1200A(1)) ........................................262
8.1.02 Prescribed offeror (Act s 1200A(1)) ........................................................................262
8.1.03 Prescribed recognised jurisdiction (Act s 1200A(1)) ...............................................262
Part 8.2—Foreign offers that are recognised in this jurisdiction 263
Division 1—Recognised offers 263
8.2.01 Prescribed offer (Act s 1200C(4))............................................................................263
8.2.02 Prescribed warning statements (Act s 1200E)..........................................................263
8.2.03 Prescribed details to be given in warning statements (Act s
1200E(b)).................................................................................................................264
8.2.04 Prescribed home regulators (Act s 1200G(13) and (14)) .........................................265
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) 266
8.4.01 Modification of Part 7.9 of the Act—New Zealand offer
documents replace Product Disclosure Statements ..................................................266
8.4.02 Modification of Part 6D.2 of the Act and Part 7.9 of the
Act—certain disclosure obligations not to apply .....................................................266
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Preliminary Division 1
Regulation 7.7.01
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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
(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.
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Division 2 Financial Services Guide
Regulation 7.7.02
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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.
(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.
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:
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(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
(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.
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Part 7.7 Financial service disclosure
Division 2 Financial Services Guide
Regulation 7.7.02
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(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
(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:
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
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(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:
“(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
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(c) meet the requirements of subsections 942B(3) and (6A) or
subsections 942C(3) and (6A) (as the case may be).”
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.
(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.
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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.
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
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(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
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 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.
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Corporations Regulations 2001 9
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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%.
(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.
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Division 2 Financial Services Guide
Regulation 7.7.05
10 Corporations Regulations 2001
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(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.
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
(ii) a statement setting out, in general terms, the individual’s role and
capacity in providing the financial service.
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Regulation 7.7.05C
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(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
(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.
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Division 2 Financial Services Guide
Regulation 7.7.06
12 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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
(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:
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(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.
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:
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(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
(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.
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
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Corporations Regulations 2001 15
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(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
(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.
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Division 2 Financial Services Guide
Regulation 7.7.08
16 Corporations Regulations 2001
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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.
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Combined Financial Services Guide and Product Disclosure Statement Division 2A
Regulation 7.7.08A
Corporations Regulations 2001 17
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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.
(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
(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
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Division 2A Combined Financial Services Guide and Product Disclosure Statement
Regulation 7.7.08A
18 Corporations Regulations 2001
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(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
(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.
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Combined Financial Services Guide and credit guide Division 2AA
Regulation 7.7.08B
Corporations Regulations 2001 19
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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
(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.’
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Part 7.7 Financial service disclosure
Division 2B Record of small investment advice
Regulation 7.7.08C
20 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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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;
(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.
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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.
(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:
(a) the value to the client of the total divestment; and
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(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.
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.
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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:
(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
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(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 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
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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:
‘(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.
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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.
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).
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.”
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;
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(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”.
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”.
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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:
(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)).”
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:
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(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
(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
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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 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)).
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;
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(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”
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”
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Column 1 Column 2 Column 3 Column 4
Item provision of Act is modified by… and…
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 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.”
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:
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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),”
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
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Column 1 Column 2 Column 3
Item provision of Act is modified by…
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
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 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:
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(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.
(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.”
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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).
(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.
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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;
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.
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(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 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 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:
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(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.
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;
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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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Division 4 General advice provided to a retail client
Regulation 7.7.14
42 Corporations Regulations 2001
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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.
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Regulation 7.7.20
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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
(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:
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(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.
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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 45
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 2 Best interests obligations
Regulation 7.7A.05
46 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Part 7.7A—Best interests obligations and remuneration
Note: Regulations 7.7A.01 to 7.7A.04 are reserved for future use.
Division 2—Best interests obligations
7.7A.05 Best interests duty—basic banking products etc.
(1) This regulation:
(a) is made for paragraph 961B(5)(b) of the Act; and
(b) prescribes a circumstance in which the provider is not required to prove
that he or she has taken the steps mentioned in paragraphs 961B(2)(d), (e),
(f) and (g) of the Act in relation to advice that relates to a basic banking
product or general insurance product.
(2) The provider is not required to prove that he or she has taken the steps if:
(a) the provider is:
(i) an agent or employee of an Australian ADI; or
(ii) otherwise acting by arrangement with an Australian ADI under the
name of the Australian ADI; and
(b) the subject matter of the advice sought by the client relates only to the
following:
(i) a basic banking product;
(ii) a general insurance product;
(iii) consumer credit insurance;
(iv) a combination of any of those products.
7.7A.06 Best interests duty—general insurance products
(1) This regulation:
(a) is made for paragraph 961B(5)(b) of the Act; and
(b) prescribes a circumstance in which the provider is not required to prove
that he or she has taken the steps mentioned in paragraphs 961B(2)(d), (e),
(f) and (g) of the Act.
(2) The provider is not required to prove that he or she has taken the steps to the
extent that the subject matter of the advice sought by the client is a general
insurance product.
7.7A.07 Best interests duty—basic banking products
For paragraph 961F(e) of the Act, a facility for making non-cash payments (see
section 763D of the Act) that is not related to a basic deposit product is a basic
banking product.
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Best interests obligations and remuneration Part 7.7A
Charging ongoing fees to clients Division 3
Regulation 7.7A.10
Corporations Regulations 2001 47
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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.
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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.12
48 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 1: The definition of financial product advice is in subsection 766B(1) of the Act.
Note 2: A reference in this Division to giving a benefit includes a reference to causing or
authorising it to be given (see section 52 of the Act).
Note 3: Under the governing rules of some regulated superannuation funds, a member may
seek advice on the basis that the trustee of the fund will pay the licensee or
representative for the advice and then recover the amount paid from the assets of the
fund attributed to that member. In that case, the member has caused or authorised the
amount to be paid to the licensee or representative. If the operation of section 52 of the
Act and these regulations means that the payment is not conflicted remuneration, the
trustee’s obligations under section 62 of the Superannuation Industry (Supervision) Act
1993 (which deals with the purposes for which a trustee may act in maintaining a
regulated superannuation fund) will not be affected.
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:
approved capital raising means:
(a) an offer to issue an approved financial product; or
(b) an offer to sell an approved financial product;
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Regulation 7.7A.12C
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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.
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
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Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.12D
50 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
licensee that is not a trading participant in respect of dealings undertaken
by a retail client through a specified service; and
(b) each of those trades is executed by the trading participant on behalf of the
retail client; and
(c) the fee is a percentage, not exceeding 100%, of a brokerage fee paid
directly or indirectly by the retail client; and
(d) no portion of the benefit is paid to a person other than the trading
participant or the licensee that is not a trading participant.
(2) In this regulation:
brokerage fee means a fee that a retail client pays to a provider in relation to a
transaction in which the provider, on behalf of the retail client, deals in a
financial product that is traded on:
(a) a prescribed financial market; or
(aa) the market known as the ASX24; or
(b) a prescribed foreign financial market.
Note 1: Regulations 7.7A.17 and 7.7A.18 relate to exemptions in relation to the charging of
asset-based fees on borrowed amounts.
Note 2: The ASX24 is the financial market operated by Australian Securities Exchange Limited
that was formerly known as the Sydney Futures Exchange.
prescribed foreign financial market means a financial market that:
(a) has its principal place of business in a foreign country; and
(b) has been authorised by an authority in that country that is a signatory to the
International Organization of Securities Commissions’ Multilateral
Memorandum of Understanding Concerning Consultation and Cooperation
and the Exchange of Information of May 2002.
specified service means a service which:
(a) is provided for retail clients under the name or brand name of:
(i) the financial services licensee that is not a trading participant; or
(ii) the trading participant and the financial services licensee that is not a
trading participant; and
(b) relates to the dealing, on behalf of the retail client, in a financial product
traded on:
(i) a prescribed financial market; or
(ii) a prescribed foreign financial market; and
(c) is provided in either or both of the following ways:
(i) by direct electronic access;
(ii) by telephone, but only if:
(A) direct electronic access is not available for a temporary
period, or the retail client expresses a preference that the
service be provided by telephone; and
(B) neither the trading participant nor the financial services
licensee that is not a trading participant is to provide financial
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Conflicted remuneration Division 4
Regulation 7.7A.12E
Corporations Regulations 2001 51
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product advice to the retail client by telephone in relation to
the dealing undertaken on the retail client’s behalf; and
(d) is provided in circumstances in which neither the trading participant nor the
financial services licensee that is not a trading participant provides personal
advice to the retail client in relation to the dealing undertaken on the retail
client’s behalf.
trading participant of a prescribed financial market or the market known as the
ASX24 means a person who:
(a) is a participant of the market admitted under the market’s operating rules;
and
(b) is allowed, under the market’s operating rules, to deal in one or more of the
financial products that are able to be traded on the market.
Note: The ASX24 is the financial market operated by Australian Securities Exchange Limited
that was formerly known as the Sydney Futures Exchange.
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
(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
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Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.12G
52 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
(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) consumer credit insurance;
(iv) a combination of any of those 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:
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Regulation 7.7A.13
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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.
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.
(5) In this regulation:
education or training course includes a conference or seminar.
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Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.15
54 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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.
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Conflicted remuneration Division 4
Regulation 7.7A.16
Corporations Regulations 2001 55
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(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 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.
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Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.16B
56 Corporations Regulations 2001
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(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.
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:
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(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
(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
(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
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Division 4 Conflicted remuneration
Regulation 7.7A.16BA
58 Corporations Regulations 2001
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(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.
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.
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Regulation 7.7A.16D
Corporations Regulations 2001 59
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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.
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
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Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.16E
60 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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.
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
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(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.
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.
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Part 7.7A Best interests obligations and remuneration
Division 6 Exemptions from application of Part 7.7A of the Act
Regulation 7.7A.40
62 Corporations Regulations 2001
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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.
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Regulation 7.8.01A
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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
7.8.01A Wholesale client money
For the purposes of paragraph 981A(4)(a) of the Act, money paid as mentioned
in subsection 981A(1) of the Act is exempt from Subdivision A of Division 2 of
Part 7.8 of the Act at a time if:
(a) at that time the licensee has the client’s written agreement to the money
being dealt with other than in accordance with that Subdivision; and
Note 1: It is not necessary for the agreement to mention that Subdivision explicitly.
Note 2: If the licensee obtains the agreement after the money is paid, that Subdivision ceases to apply to the money when the licensee obtains the agreement.
(b) either:
(i) the financial service referred to in subparagraph 981A(1)(a)(i) of the
Act is or relates to a dealing in a derivative; or
(ii) the financial product referred to in subparagraph 981A(1)(a)(ii) of the
Act is a derivative; and
(c) the entry into of the derivative was not or will not be cleared through a
clearing and settlement facility; and
(d) the financial service or product would have been provided to the client as a
wholesale client if:
(i) the service or product were provided to the client when the money
was paid; and
(ii) section 761GA of the Act (about sophisticated investors) did not
apply.
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.
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Regulation 7.8.01
64 Corporations Regulations 2001
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(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 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:
(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
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Regulation 7.8.01
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(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.
(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.
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Regulation 7.8.02
66 Corporations Regulations 2001
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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:
(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;
(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.
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Regulation 7.8.02
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(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.
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
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Regulation 7.8.03
68 Corporations Regulations 2001
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(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
(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).
(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:
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(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.
(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;
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Regulation 7.8.04
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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.
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:
(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.
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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.
7.8.06B Wholesale client property
For the purposes of paragraph 984A(2)(a) of the Act, property given as
mentioned in subsection 984A(1) of the Act is exempt from Division 3 of
Part 7.8 of the Act at a time if:
(a) at that time the licensee has the client’s written agreement to the property
being dealt with other than in accordance with that Division; and
Note 1: It is not necessary for the agreement to mention that Division explicitly.
Note 2: If the licensee obtains the agreement after the property is given, that Division ceases to apply to the property when the licensee obtains the agreement.
(b) either:
(i) the financial service referred to in subparagraph 984A(1)(a)(i) of the
Act is or relates to a dealing in a derivative; or
(ii) the financial product referred to in subparagraph 984A(1)(a)(ii) of the
Act is a derivative; and
(c) the entry into of the derivative was not or will not be cleared through a
clearing and settlement facility; and
(d) the financial service or product would have been provided to the client as a
wholesale client if:
(i) the service or product were provided to the client when the property
was given; and
(ii) section 761GA of the Act (about sophisticated investors) did not
apply.
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:
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(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.
(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
(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):
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(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
(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:
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(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;
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:
(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
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(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 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:
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(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
(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 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
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(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), 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):
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(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
(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 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:
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(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.
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.
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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:
‘(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;
(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
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(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.
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).
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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.
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.
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:
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(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.
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.
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Regulation 7.8.13
84 Corporations Regulations 2001
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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.”.
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
(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.
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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.’.
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.”.
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Regulation 7.8.14B
86 Corporations Regulations 2001
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(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:
(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.”.
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7.8.15 Appointment of auditor by financial services licensee
(1) For subsections 990B(7) and (8) of the Act, this regulation:
(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
(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.
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Regulation 7.8.16
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(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
(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:
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(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.
(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
(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:
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(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
(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 that the market integrity rules, or the
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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;
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:
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Regulation 7.8.19
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(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
(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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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 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:
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94 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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 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;
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(ii) the date and time of receipt of the instructions for the financial
products transaction;
(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
(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
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96 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
(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):
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Regulation 7.8.21B
Corporations Regulations 2001 97
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“(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.
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
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Regulation 7.8.22A
98 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
‘(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).’.
7.8.23 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;
(b) a financial product the acquisition of which is an additional contribution
required by an existing agreement or contract;
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(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.
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Division 1 Preliminary
Regulation 7.9.01
100 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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.
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Regulation 7.9.01
Corporations Regulations 2001 101
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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.
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.
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Regulation 7.9.02
102 Corporations Regulations 2001
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superannuation provider means any of the following:
(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.
(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.
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Regulation 7.9.02A
Corporations Regulations 2001 103
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(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;
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.
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Division 1 Preliminary
Regulation 7.9.02B
104 Corporations Regulations 2001
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(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.
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Arrangements for Product Disclosure Statements in relation to superannuation products and RSA
products Division 2
Regulation 7.9.03
Corporations Regulations 2001 105
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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;
(c) a superannuation interest issued by the trustee of a successor fund in
relation to the transfer of benefits in the fund;
(d) a superannuation interest issued by the trustee of a regulated
superannuation fund as a result of complying with a commutation authority
issued to the trustee under Subdivision 136-B in Schedule 1 to the Taxation
Administration Act 1953.
(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.
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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 2 Arrangements for Product Disclosure Statements in relation to superannuation products and
RSA products
Regulation 7.9.05
106 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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.
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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
Product Disclosure Statement for warrants Division 2A
Regulation 7.9.07A
Corporations Regulations 2001 107
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
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.
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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 2A Product Disclosure Statement for warrants
Regulation 7.9.07A
108 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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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
Product Disclosure Statement for market-traded derivatives Division 2B
Regulation 7.9.07B
Corporations Regulations 2001 109
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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.
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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 2B Product Disclosure Statement for market-traded derivatives
Regulation 7.9.07C
110 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Financial product disclosure and other provisions relating to issue and sale of financial products Part
7.9
Product Disclosure Statement for discretionary mutual funds Division 2BA
Regulation 7.9.07CA
Corporations Regulations 2001 111
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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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 7.9.07D
112 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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:
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7.9
Situations where a Product Disclosure Statement is not required Division 2C
Regulation 7.9.07FA
Corporations Regulations 2001 113
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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 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
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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
114 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(iii) information about the financial claims scheme can be obtained from
the APRA website at 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
(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.
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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 115
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.”
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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 2D Preparation and content of Product Disclosure Statements
Regulation 7.9.07J
116 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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’.
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7.9
Obligation to make information publicly available: registrable superannuation entities Division 2E
Regulation 7.9.07L
Corporations Regulations 2001 117
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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
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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 7.9.07P
118 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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7.9
Obligation to make information publicly available: registrable superannuation entities Division 2E
Regulation 7.9.07S
Corporations Regulations 2001 119
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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
(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:
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Division 2E Obligation to make information publicly available: registrable superannuation entities
Regulation 7.9.07U
120 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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
(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.
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Regulation 7.9.07V
Corporations Regulations 2001 121
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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.
(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.
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products
Division 3 Dealing with money received for financial product before the product is issued
Regulation 7.9.08
122 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
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;
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Regulation 7.9.08B
Corporations Regulations 2001 123
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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:
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Division 3 Dealing with money received for financial product before the product is issued
Regulation 7.9.08D
124 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(a) subsection 1017E(2A) of the Act does not apply in relation to the money;
and
(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.
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7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.09
Corporations Regulations 2001 125
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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.
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:
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Division 4 Content of Product Disclosure Statements
Regulation 7.9.09C
126 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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 4.2A—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.
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.
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Regulation 7.9.11C
Corporations Regulations 2001 127
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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
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Regulation 7.9.11F
128 Corporations Regulations 2001
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(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
(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
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Regulation 7.9.11G
Corporations Regulations 2001 129
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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:
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Regulation 7.9.11L
130 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
(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;
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Regulation 7.9.11M
Corporations Regulations 2001 131
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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
(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.
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Regulation 7.9.11P
132 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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
(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.
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Regulation 7.9.11Q
Corporations Regulations 2001 133
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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.
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Division 4 Content of Product Disclosure Statements
Regulation 7.9.11R
134 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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
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Regulation 7.9.11T
Corporations Regulations 2001 135
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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.
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Division 4 Content of Product Disclosure Statements
Regulation 7.9.11W
136 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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:
(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.
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Regulation 7.9.11Y
Corporations Regulations 2001 137
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
(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.
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Division 4 Content of Product Disclosure Statements
Regulation 7.9.11Z
138 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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
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Regulation 7.9.14
Corporations Regulations 2001 139
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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).
(4) Strict liability applies to subregulation (2).
Note: For strict liability, see section 6.1 of the Criminal Code.
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.
(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:
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Division 4 Content of Product Disclosure Statements
Regulation 7.9.14A
140 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
(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.
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Regulation 7.9.14B
Corporations Regulations 2001 141
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.’.
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Division 4A General
Regulation 7.9.14C
142 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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:
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Regulation 7.9.15
Corporations Regulations 2001 143
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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
(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 Act 1973, and, if the insurer
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Regulation 7.9.15A
144 Corporations Regulations 2001
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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.
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.
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General Division 4A
Regulation 7.9.15C
Corporations Regulations 2001 145
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
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:
(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
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Regulation 7.9.15CA
146 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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);
(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
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Regulation 7.9.15DB
Corporations Regulations 2001 147
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
(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 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
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Regulation 7.9.15DC
148 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
(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
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Regulation 7.9.15G
Corporations Regulations 2001 149
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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 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:
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Regulation 7.9.15H
150 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
(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).”
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General Division 4A
Regulation 7.9.15I
Corporations Regulations 2001 151
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.”
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
(g) a statement of the commission paid or payable in relation to the provision
of the consumer credit insurance product.
(2) In this regulation:
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Division 4A General
Regulation 7.9.16A
152 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Ongoing disclosure Division 4B
Regulation 7.9.16G
Corporations Regulations 2001 153
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Division 4C Fee Disclosure for certain financial products
Regulation 7.9.16J
154 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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.
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Fee Disclosure for certain financial products Division 4C
Regulation 7.9.16L
Corporations Regulations 2001 155
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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:
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Division 4C Fee Disclosure for certain financial products
Regulation 7.9.16O
156 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(a) in the manner specified in Part 3 of Schedule 10; and
(b) using the terminology used in Part 3 of Schedule 10.
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Other requirements relating to Product Disclosure Statements and Supplementary Product Disclosure
Statements Division 4D
Regulation 7.9.16T
Corporations Regulations 2001 157
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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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Division 5 Ongoing requirements for product disclosure after person becomes a member
Regulation 7.9.17
158 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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;
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Ongoing requirements for product disclosure after person becomes a member Division 5
Regulation 7.9.19A
Corporations Regulations 2001 159
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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;
(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.
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Division 5 Ongoing requirements for product disclosure after person becomes a member
Regulation 7.9.19B
160 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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).
(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.
(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;
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(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 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;
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Regulation 7.9.20AA
162 Corporations Regulations 2001
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(m) the net amount of Government co-contribution received during the
reporting period;
(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; and
(c) the amount of low income superannuation tax offsets 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 tax offset.
(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).
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.
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Corporations Regulations 2001 163
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(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 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
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164 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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 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 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
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Corporations Regulations 2001 165
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(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
(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
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Regulation 7.9.21
166 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(b) published in the Gazette.
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;
(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:
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Corporations Regulations 2001 167
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(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.
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.
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.
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Regulation 7.9.26
168 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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.
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Regulation 7.9.27
Corporations Regulations 2001 169
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(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.
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.
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
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Regulation 7.9.30A
170 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
(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
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Regulation 7.9.31
Corporations Regulations 2001 171
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(iii) the current LVR;
(f) a summary of all transactions affecting the margin lending facility during
the reporting period.
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 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.
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Division 5 Ongoing requirements for product disclosure after person becomes a member
Regulation 7.9.33
172 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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;
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Corporations Regulations 2001 173
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(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, 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;
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;
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Regulation 7.9.37
174 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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;
(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
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Corporations Regulations 2001 175
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(ii) the contact details of the eligible rollover fund; and
(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.
(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.
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Regulation 7.9.40
176 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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;
(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;
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Corporations Regulations 2001 177
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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 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.
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.
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Regulation 7.9.44
178 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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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Regulation 7.9.45
Corporations Regulations 2001 179
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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.
(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.
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Division 5 Ongoing requirements for product disclosure after person becomes a member
Regulation 7.9.47
180 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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:
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Regulation 7.9.48C
Corporations Regulations 2001 181
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(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
(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
(ii) if the Regulator gives the decision-maker an extension—within the
extended period.
7.9.48A Definitions
In this Subdivision:
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Regulation 7.9.48B
182 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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.
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Regulation 7.9.50
Corporations Regulations 2001 183
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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:
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Regulation 7.9.55
184 Corporations Regulations 2001
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(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:
(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
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7.9
Ongoing requirements for product disclosure after person becomes a member Division 5
Regulation 7.9.58
Corporations Regulations 2001 185
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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) 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.
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.
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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
186 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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.
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General requirements for financial disclosure Division 5AA
Regulation 7.9.60B
Corporations Regulations 2001 187
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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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
188 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.”
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.
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7.9
Short-Form Product Disclosure Statements Division 5AB
Regulation 7.9.61AA
Corporations Regulations 2001 189
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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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 5A Dealing with money received for financial product before the product is issued
Regulation 7.9.61A
190 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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:
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7.9
Dealing with money received for financial product before the product is issued Division 5A
Regulation 7.9.61C
Corporations Regulations 2001 191
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.’.
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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
192 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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’.
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7.9
CGS depository interests Division 5C
Regulation 7.9.61E
Corporations Regulations 2001 193
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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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
194 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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;
(d) crediting an amount to a basic deposit 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;
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Regulation 7.9.62
Corporations Regulations 2001 195
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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
(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
(b) the transaction involves the use of a facility for making non-cash payments
that is linked to the basic deposit product; and
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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
196 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
(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:
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Regulation 7.9.63B
Corporations Regulations 2001 197
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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.
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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
198 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
(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
(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
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Regulation 7.9.63D
Corporations Regulations 2001 199
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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 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.
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Division 6 Confirmation of transactions
Regulation 7.9.63E
200 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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.
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Regulation 7.9.63I
Corporations Regulations 2001 201
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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Division 7 Cooling-off periods
Regulation 7.9.64
202 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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.
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Regulation 7.9.64A
Corporations Regulations 2001 203
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
(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.
7.9.66 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;
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Regulation 7.9.67
204 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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
(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
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Regulation 7.9.67
Corporations Regulations 2001 205
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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 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
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Regulation 7.9.68
206 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(b) do not exceed the true cost of an arms’ length transaction.
Financial product issued for specific period
(8) If:
(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.
(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.
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Regulation 7.9.69
Corporations Regulations 2001 207
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
(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
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(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).
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.
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Regulation 7.9.71
Corporations Regulations 2001 209
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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
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Regulation 7.9.74A
210 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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:
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(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).
(5) A determination under subregulation (3) or (4) must be:
(a) in writing; and
(b) published in the Gazette.
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
(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
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Regulation 7.9.75
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(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
(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:
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(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.
(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 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
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Regulation 7.9.75BA
214 Corporations Regulations 2001
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(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.
(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.
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Regulation 7.9.75D
Corporations Regulations 2001 215
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(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
(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).
(4) If subregulation (3) applies, the periodic statement must include:
(a) a statement informing the product holder that the amount is applicable; and
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Regulation 7.9.76
216 Corporations Regulations 2001
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(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
(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
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(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
(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
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Division 8 Other requirements
Regulation 7.9.80B
218 Corporations Regulations 2001
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Act and is excluded from that paragraph 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.
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7.9
Additional requirements for transfer of lost members and lost RSA holders Division 9
Regulation 7.9.81
Corporations Regulations 2001 219
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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 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.
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Division 11 Superannuation to which arrangements apply under the Family Law Act 1975
Regulation 7.9.84
220 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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Superannuation to which arrangements apply under the Family Law Act 1975 Division 11
Regulation 7.9.85
Corporations Regulations 2001 221
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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.
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.’.
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Division 11 Superannuation to which arrangements apply under the Family Law Act 1975
Regulation 7.9.88
222 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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.
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Superannuation to which arrangements apply under the Family Law Act 1975 Division 11
Regulation 7.9.89
Corporations Regulations 2001 223
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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’.
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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
224 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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;
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7.9
Superannuation to which arrangements apply under the Family Law Act 1975 Division 11
Regulation 7.9.93
Corporations Regulations 2001 225
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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 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.
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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 12 Medical indemnity insurance
Regulation 7.9.95
226 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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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 7.9.96
Corporations Regulations 2001 227
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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
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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 13 Unsolicited offers to purchase financial products off market
Regulation 7.9.97A
228 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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7.9
Exemptions from Parts 7.7, 7.8 and 7.9 of the Act Division 14
Regulation 7.9.98
Corporations Regulations 2001 229
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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.
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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 15 Disclosure in relation to short sales covered by securities lending arrangement of listed
section 1020B products
Regulation 7.9.99
230 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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:
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7.9
Disclosure in relation to short sales covered by securities lending arrangement of listed section 1020B
products Division 15
Regulation 7.9.100
Corporations Regulations 2001 231
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
(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.
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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 15 Disclosure in relation to short sales covered by securities lending arrangement of listed
section 1020B products
Regulation 7.9.100A
232 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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 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
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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 233
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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.
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Chapter 7 Financial services and markets
Part 7.10 Market misconduct and other prohibited conduct relating to financial products and financial
services
Regulation 7.10.01
234 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 CPA Australia Limited Professional Standards Scheme,
published in the New South Wales Government Gazette
No. 124, 4 October 2013, including as modified by:
(a) the amendments made by instrument published in the New
South Wales Government Gazette No. 13, 31 January
2014; and
(b) the amendments made by instrument published in the New
South Wales Government Gazette No. 116, 5 December
2014; and
(c) the extension published in the New South Wales
Government Gazette No. 50, 17 June 2016
The scheme, and the
amendments mentioned in
paragraphs (a) and (b)—
19 June 2015
The extension mentioned in
paragraph (c)—the day the
Treasury Laws Amendment
(Professional Standards
Schemes) Regulations 2017
commence
2 Chartered Accountants Australia and New Zealand
Professional Standards Scheme (NSW), including as modified
by amendments published in the New South Wales
Government Gazette No. 72, 28 August 2015
Note: This Scheme was formerly the Institute of Chartered Accountants in Australia Professional Standards Scheme (NSW) published in the New South Wales Government Gazette No. 70, 22 August 2014.
The scheme—1 December
2014
The amendments—
27 February 2016
3 The Law Society of New South Wales Scheme, published in
the New South Wales Government Gazette No. 78, 27 July
2012
1 March 2013
4 The New South Wales Bar Association Scheme, published in
the New South Wales Government Gazette No. 17, 5 March
2015
13 August 2015
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Part 7.10
Regulation 7.10.02
Corporations Regulations 2001 235
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Prescribed professional standards schemes
Item Column 1
Scheme
Column 2
Date prescribed
5 Chartered Accountants Australia and New Zealand
Professional Standards Scheme (Victoria), including as
modified by amendments published in the Victoria
Government Gazette No. S 246, 28 August 2015
Note: This Scheme was formerly the Institute of Chartered Accountants in Australia Professional Standards Scheme (Victoria) published in the Victoria Government Gazette No. S 264, 5 August 2014.
The scheme—1 December
2014
The amendments—
27 February 2016
6 The Law Institute of Victoria Limited Scheme, published in
the Victoria Government Gazette No. G 16, 21 April 2016
Note: This Scheme was formerly the Law Institute of Victoria Limited Scheme, published in the Victoria Government Gazette No. G 10, 11 March 2010.
The day the Treasury Laws
Amendment (Professional
Standards Schemes)
Regulations 2017 commence
7 The Victorian Bar Professional Standards Scheme, published
in the Victoria Government Gazette No. S 134, 24 April 2014
14 June 2014
8 The Bar Association of Queensland Scheme, published in the
Queensland Government Gazette No. 40, 24 June 2013
15 March 2014
9 Chartered Accountants Australia and New Zealand
Professional Standards Scheme (Queensland), including as
modified by amendments notified by the Queensland
Government on 11 December 2015
Note: This Scheme was formerly the Institute of Chartered Accountants in Australia Professional Standards Scheme (Queensland) notified by the Queensland Government on, 29 August 2014.
The scheme—1 December
2014
The amendments—
27 February 2016
10 The Queensland Law Society Professional Standards Scheme,
approved as described in the Professional Standards
(Queensland Law Society Professional Standards Scheme)
Notice 2016 (Qld), 30 June 2016
Note: This Scheme was formerly the Queensland Law Society Scheme, published in the Queensland Government Gazette No. 64, 25 June 2010.
The day the Treasury Laws
Amendment (Professional
Standards Schemes)
Regulations 2017 commence
11 Chartered Accountants Australia and New Zealand
Professional Standards Scheme (WA), including as modified
by amendments published in the Western Australian
Government Gazette No. 135, 1 September 2015
Note: This Scheme was formerly the Institute of Chartered Accountants in Australia Professional Standards Scheme (WA) published in the Western Australian Government Gazette No. 122, 8 August 2014.
The scheme—1 December
2014
The amendments—
27 February 2016
12 The Law Society of Western Australia Scheme, published in
the Western Australian Government Gazette No. 54, 11 April
2014
14 June 2014
13 The Western Australian Bar Association Scheme, published
in the Western Australian Government Gazette No. 57,
14 June 2014
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Chapter 7 Financial services and markets
Part 7.10 Market misconduct and other prohibited conduct relating to financial products and financial
services
Regulation 7.10.03
236 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Prescribed professional standards schemes
Item Column 1
Scheme
Column 2
Date prescribed
17 April 2014
14 Chartered Accountants Australia and New Zealand
Professional Standards Scheme (SA), including as modified
by amendments published in the South Australian
Government Gazette No. 59, 22 October 2015
Note: This Scheme was formerly the Institute of Chartered Accountants in Australia Professional Standards Scheme (SA) published in the South Australian Government Gazette No. 63, 21 August 2014.
The scheme—1 December
2014
The amendments—
27 February 2016
15 The Law Society of South Australia Professional Standards
Scheme, published in the South Australian Government
Gazette No. 76, 3 November 2011, including as modified by
the extension published in the South Australian Government
Gazette No. 41, 14 July 2016
The scheme—1 March 2013
The extension—the day the
Treasury Laws Amendment
(Professional Standards
Schemes) Regulations 2017
commence
16 The South Australian Bar Association Inc Scheme, published
in the South Australian Government Gazette No. 76,
3 November 2011, including as modified by the extension
published in the South Australian Government Gazette
No. 77, 1 December 2016
The scheme—1 March 2013
The extension—the day the
Treasury Laws Amendment
(Professional Standards
Schemes) Regulations 2017
commence
17 Chartered Accountants Australia and New Zealand
Professional Standards Scheme (ACT), including as modified
by amendments notified by the ACT Government on
25 August 2015
Note: This Scheme was formerly the Institute of Chartered Accountants in Australia Professional Standards Scheme (ACT) approved on 14 July 2014.
The scheme—1 December
2014
The amendments—
27 February 2016
18 Chartered Accountants Australia and New Zealand
Professional Standards Scheme (NT), including as modified
by amendments published in the Northern Territory
Government Gazette No. S109, 30 November 2015
Note: This Scheme was formerly the Institute of Chartered Accountants in Australia Professional Standards Scheme (NT) published in the Northern Territory Government Gazette No. S84, 17 September 2014.
The scheme—1 December
2014
The amendments—
27 February 2016
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.
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Financial services and markets Chapter 7
Title and transfer Part 7.11
Preliminary Division 1
Regulation 7.11.01
Corporations Regulations 2001 237
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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Part 7.11 Title and transfer
Division 1 Preliminary
Regulation 7.11.03
238 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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Regulation 7.11.04
Corporations Regulations 2001 239
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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;
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.
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Division 1 Preliminary
Regulation 7.11.05
240 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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.
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Regulation 7.11.07
Corporations Regulations 2001 241
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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Division 2 Application of Part 7.11
Regulation 7.11.09
242 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Division 2—Application of Part 7.11
7.11.09 Application
This Part applies to conduct engaged in in this jurisdiction or otherwise.
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Regulation 7.11.10
Corporations Regulations 2001 243
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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Division 3 Transfer of Division 3 securities effected otherwise than through a prescribed CS facility
Regulation 7.11.13
244 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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:
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(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.
(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.
(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
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Regulation 7.11.18
246 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
(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.
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Regulation 7.11.19
Corporations Regulations 2001 247
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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.
(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.
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Division 3 Transfer of Division 3 securities effected otherwise than through a prescribed CS facility
Regulation 7.11.21
248 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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Transfer of Division 4 financial products effected through prescribed CS facility Division 4
Regulation 7.11.23
Corporations Regulations 2001 249
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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:
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Regulation 7.11.27
250 Corporations Regulations 2001
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(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 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:
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Regulation 7.11.28
Corporations Regulations 2001 251
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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:
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Part 7.11 Title and transfer
Division 4 Transfer of Division 4 financial products effected through prescribed CS facility
Regulation 7.11.29
252 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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;
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Regulation 7.11.30
Corporations Regulations 2001 253
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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
(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.
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.
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Division 4 Transfer of Division 4 financial products effected through prescribed CS facility
Regulation 7.11.32
254 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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
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Regulation 7.11.33
Corporations Regulations 2001 255
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
(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.
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Part 7.11 Title and transfer
Division 4 Transfer of Division 4 financial products effected through prescribed CS facility
Regulation 7.11.36
256 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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
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Regulation 7.11.39
Corporations Regulations 2001 257
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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.
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Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 5 Offences
Regulation 7.11.40
258 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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:
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Regulation 7.11.41
Corporations Regulations 2001 259
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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
(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.
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Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 6 Civil liability
Regulation 7.11.43
260 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Miscellaneous Part 7.12
Regulation 7.12.01
Corporations Regulations 2001 261
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Chapter 8 Mutual recognition of securities offers
Part 8.1 Preliminary
Regulation 8.1.01
262 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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 comprise a foreign recognition scheme.
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, 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.
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.
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Recognised offers Division 1
Regulation 8.2.01
Corporations Regulations 2001 263
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 an offer of a security is a prescribed offer in
relation to New Zealand if a disclosure document (as defined in the Financial
Markets Conduct Act 2013 of New Zealand) must be prepared in accordance
with:
(a) the Financial Markets Conduct Act 2013 of New Zealand; or
(b) 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 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 paragraph 1200E(a) of the Act, the following statements are prescribed:
(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;
(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;
(c) 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;
(d) 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;
(e) 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;
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Part 8.2 Foreign offers that are recognised in this jurisdiction
Division 1 Recognised offers
Regulation 8.2.03
264 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(f) the taxation treatment of New Zealand securities and financial products is
not the same as that for Australian securities and products;
(g) 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 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
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Foreign offers that are recognised in this jurisdiction Part 8.2
Recognised offers Division 1
Regulation 8.2.04
Corporations Regulations 2001 265
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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
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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
266 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
Authorised Version F2017C00544 registered 13/07/2017
Prepared by the Office of Parliamentary Counsel, Canberra
Corporations Regulations 2001
Statutory Rules No. 193, 2001
made under the
Corporations Act 2001
Compilation No. 132
Compilation date: 2 July 2017
Includes amendments up to: F2017L00595
Registered: 13 July 2017
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 3–13
Volume 7: Endnotes
Each volume has its own contents
This compilations includes commenced amendments made by F2017L00321
Authorised Version F2017C00544 registered 13/07/2017
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 2 July 2017 (the compilation date).
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 the Legislation Register
(www.legislation.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 the Legislation Register 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.
Editorial changes
For more information about any editorial changes made in this compilation, see 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 the Legislation Register 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.
Authorised Version F2017C00544 registered 13/07/2017
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Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 2
7.7.02 Situations in which Financial Services Guide is not required ..................................... 2
7.7.02A Situations when Financial Services Guide is not required .......................................... 5
7.7.03 Financial Services Guide given by financial services
licensee: description of documents ............................................................................. 6
7.7.03A Financial Services Guide given by financial services
licensee: compensation arrangements ......................................................................... 7
7.7.04 Financial Services Guide given by financial services
licensee: remuneration, commission and benefits ....................................................... 7
7.7.04A Financial services guide given by financial services licensee:
more detailed information about remuneration etc...................................................... 9
7.7.04AAFinancial Services Guide given by financial services licensee: non-monetary benefit that is not conflicted remuneration 9
7.7.04ABFinancial Services Guide given by authorised representative: non-monetary benefit that is not conflicted remuneration 9
7.7.05 Record of advice given by financial services licensee ...............................................10
7.7.05A Financial Services Guide given by authorised representative
of financial services licensee: authorised representative
number .......................................................................................................................10
7.7.05B Personalised Financial Services Guide ......................................................................10
7.7.05C Exemption from providing certain information in a Financial
Services Guide ...........................................................................................................11
7.7.06 Financial Services Guide given by authorised representative
of financial services licensee: description of documents............................................12
7.7.06A Financial Services Guide given by authorised representative
of financial services licensee—licence number .........................................................13
7.7.06B Financial Services Guide given by authorised representative
of financial services licensee: compensation arrangements .......................................13
7.7.07 Financial Services Guide given by authorised representative
of financial services licensee: remuneration, commission and
benefits.......................................................................................................................13
7.7.07A Financial services guide given by authorised representative:
more detailed information about remuneration etc.....................................................15
7.7.08 Record of advice given by authorised representative of
financial services licensee ..........................................................................................16
Division 2A—Combined Financial Services Guide and Product
Disclosure Statement 17
7.7.08A Combined Financial Services Guide and Product Disclosure
Statement ...................................................................................................................17
Division 2AA—Combined Financial Services Guide and credit
guide 19
7.7.08B Modification of section 942DA of the Act.................................................................19
Division 2B—Record of small investment advice 20
7.7.08C Record of small investment advice—content requirements .......................................20
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Division 3—Statement of Advice 21
7.7.09 Situations in which statement of advice is not required:
further advice .............................................................................................................21
7.7.09A Situations in which Statement of Advice is not required:
small investments threshold .......................................................................................21
7.7.09AA .................................................. Statement of Advice from financial services licensee 24
7.7.09AB............................................................. Modification of subsection 947B(4) of the Act 24
7.7.09B Statement of Advice from providing entity—information not
included in the Statement ...........................................................................................24
7.7.09BA.....................................................Statement of Advice from authorised representative 25
7.7.09BB............................................................. Modification of subsection 947C(4) of the Act 26
7.7.09BCStatement of Advice given by financial services licensee: non-monetary benefit that is not conflicted remuneration 26
7.7.09BDStatement of Advice given by authorised representative: non-monetary benefit that is not conflicted remuneration 26
7.7.09C Requirement to keep Statement of Advice and other
documents ..................................................................................................................27
7.7.10 Products for which a Statement of Advice is not required .........................................27
7.7.10AA .................. Obligation on authorised representative to give a financial services guide 27
7.7.10AAARecord of advice without a recommendation to purchase or sell—content requirements 27
7.7.10AB................................................................. Financial services guide—contents of guide 28
7.7.10AC................................................................................................ Financial services guide 29
7.7.10AD ............................................................................................... Financial services guide 29
7.7.10AE.................................................. Situations in which Statement of Advice not required 30
7.7.10AFVarious consequential amendments to Division 7 of Part 7.7 concerning situations where Financial Services Guides do not have to be given 32
7.7.10AG ...................................... Various consequential amendments to Division 7 of Part 7.7 33
7.7.10AH ............................................................................................................... Business days 35
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...........................................................................................................35
7.7.10A Statements of Advice—requirement to state information as
amounts in dollars ......................................................................................................36
7.7.10B Insertion of definition—further advice.......................................................................36
7.7.10C Omission of definition—further market-related advice .............................................37
7.7.10D Additional information in Statement of Advice .........................................................37
7.7.10E Additional information in Statement of Advice .........................................................37
7.7.11 Statement of Advice given by financial services licensee..........................................37
7.7.11A Statement of Advice given by authorised representative of
financial services licensee—licence number..............................................................38
7.7.11B Statement of Advice—disclosure of dollar amounts..................................................38
7.7.12 Statement of Advice given by authorised representative of
financial services licensee ..........................................................................................38
7.7.13 Statement of Advice provided by authorised representative—
disclosure of dollar amounts ......................................................................................39
7.7.13A Additional information about charges or benefits—
disclosure of dollar amounts ......................................................................................40
7.7.13B Additional information about charges or benefits—
disclosure of dollar amounts ......................................................................................40
Division 4—General advice provided to a retail client 42
7.7.14 Product Disclosure Statement not required ................................................................42
Division 5—Other disclosure requirements 43
7.7.20 General advice to retail client—no obligation to warn client.....................................43
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7.7.20A Extension of disclosure requirements to wholesale clients
dealing with certain unauthorised insurers .................................................................43
Division 6—Exemptions from application of Part 7.7 of the Act 45
7.7.21 Exemption from application of Part 7.7 of the Act ....................................................45
Part 7.7A—Best interests obligations and remuneration 46
Division 2—Best interests obligations 46
7.7A.05 Best interests duty—basic banking products etc. .......................................................46
7.7A.06 Best interests duty—general insurance products........................................................46
7.7A.07 Best interests duty—basic banking products..............................................................46
Division 3—Charging ongoing fees to clients 47
7.7A.10 Arrangements that are not ongoing fee arrangements ................................................47
7.7A.11 Fee disclosure statements: product fee.......................................................................47
Division 4—Conflicted remuneration 48
Subdivision 1—Monetary benefits 48
7.7A.12 What subdivision is about ..........................................................................................48
7.7A.12A ......................................................................................... Life risk insurance products 48
7.7A.12B................................................................................................................ Stamping fees 48
7.7A.12C...................................................................................................Time-sharing schemes 49
7.7A.12D ..............................................................................................................Brokerage fees 49
7.7A.12E....................................................................... Fees paid by clients for dealing services 51
7.7A.12EAApplication of ban on conflicted remuneration—purchase or sale of financial advice business 51
Subdivision 2—Monetary or non-monetary benefits 51
7.7A.12F ............................................................................................. What subdivision is about 51
7.7A.12G .........................................................................................................General insurance 52
7.7A.12H ............................................................. Basic banking and general insurance products 52
7.7A.12I Mixed benefits ...........................................................................................................52
7.7A.13 Non-monetary benefit given in certain circumstances not
conflicted remuneration: prescribed amount ..............................................................53
7.7A.14 Non-monetary benefit given in certain circumstances not
conflicted remuneration: education or training course ...............................................53
7.7A.15 Non-monetary benefit given in certain circumstances not
conflicted remuneration: other education and training benefit ...................................54
7.7A.15ANon-monetary benefit given in certain circumstances not conflicted remuneration—education and training in conducting a financial services business 54
7.7A.15BApplication of ban on conflicted remuneration—non-platform operator (Division 4 of Part 7.7A of Chapter 7 of the Act does not apply) 54
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)...........................................................................................................55
7.7A.16AApplication of ban on conflicted remuneration—platform operator (Division 4 of Part 7.7A of Chapter 7 of the Act applies) 55
7.7A.16BApplication of ban on conflicted remuneration—person other than platform operator (Division 4 of Part 7.7A of Chapter 7 of the Act applies) 56
7.7A.16BA.......................................................................................................... Sale of business 58
7.7A.16CApplication of ban on conflicted remuneration—employer and employee (Division 4 of Part 7.7A of Chapter 7 of the Act does not apply) 58
7.7A.16DApplication 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)59
7.7A.16EApplication 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) 60
7.7A.16FApplication of ban on conflicted remuneration—benefit is a pass through of a grandfathered benefit (benefit is not conflicted remuneration) 60
Subdivision 3—Asset-based fees on borrowed amounts 61
7.7A.17 Financial services licensees .......................................................................................61
7.7A.18 Authorised representatives.........................................................................................61
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Division 6—Exemptions from application of Part 7.7A of the Act 62
7.7A.40 Exemption from application of Part 7.7A of the Act .................................................62
Part 7.8—Other provisions relating to conduct etc connected
with financial products and financial services, other
than financial product disclosure 63 7.8.01A Wholesale client money.............................................................................................63
7.8.01 Obligation to pay money into an account...................................................................63
7.8.02 Accounts maintained for section 981B of the Act......................................................66
7.8.03 How money to be dealt with if licensee ceases to be licensed
etc...............................................................................................................................68
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................................................................................................................70
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 ........................................................................................................................70
7.8.06 Statement setting out terms of loan etc ......................................................................71
7.8.06A Property exempt from Division 3 of Part 7.8 of the Act ............................................71
7.8.06B Wholesale client property ..........................................................................................71
7.8.07 How property to which Division 3 of Part 7.8 of the Act to
be dealt with...............................................................................................................71
7.8.08 Debts of financial services licensee in relation to premiums
etc...............................................................................................................................73
7.8.08A Limit of margin lending facility taken to be increased...............................................77
7.8.08B Exemption from requirement to make unsuitability
assessment..................................................................................................................78
7.8.09 Reasonable inquiries etc about retail client: inquiries ................................................79
7.8.09A Modification of section 985G of the Act....................................................................80
7.8.10 Circumstances in which margin lending facility is unsuitable ...................................80
7.8.10A Margin lending facility taken not to be unsuitable .....................................................80
7.8.11 Particular categories of information to be shown in records ......................................80
7.8.11A Particular categories of information to be shown in records:
records of non-monetary benefit that is not conflicted
remuneration ..............................................................................................................81
7.8.12 Requirements in relation to financial records of financial
services licensees .......................................................................................................82
7.8.12A Modification of section 989B of the Act....................................................................82
7.8.13 Auditor’s report with annual profit and loss statement and
balance sheet ..............................................................................................................84
7.8.13A Compliance certificate with profit and loss statement and
balance sheet ..............................................................................................................84
7.8.14 Contents of annual profit and loss statement and balance
sheet and applicable accounting procedures ..............................................................85
7.8.14A Lodgement of annual profit and loss statement and balance
sheet ...........................................................................................................................85
7.8.14B Modification of section 990B of the Act....................................................................85
7.8.15 Appointment of auditor by financial services licensee...............................................87
7.8.16 When person is ineligible to act as auditor of financial
services licensee.........................................................................................................88
7.8.17 Priority to clients’ orders............................................................................................90
7.8.18 Instructions to deal through licensed markets ............................................................90
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7.8.19 Records of instructions to deal on licensed markets and
foreign markets ..........................................................................................................92
7.8.20 Dealings with non-licensees.......................................................................................93
7.8.20A Dealings involving employees of financial service
licensees—risk insurance products ............................................................................95
7.8.21 Dealings involving employees of financial services licensees ...................................95
7.8.21A Anti-hawking provisions if no Product Disclosure Statement
is required ..................................................................................................................96
7.8.21B Anti-hawking provisions if no Product Disclosure Statement
is required—carbon units, Australian carbon credit units and
eligible international emissions units .........................................................................97
7.8.22 Hours for hawking certain financial products ............................................................97
7.8.22A Modification of Part 7.8 .............................................................................................98
7.8.23 Return of financial product: transfer between superannuation
entities or RSAs .........................................................................................................98
7.8.24 Right of return not to apply........................................................................................98
7.8.25 Variation of amount to be repaid ...............................................................................99
7.8.26 Exemption from application of section 992A of the Act............................................99
Part 7.9—Financial product disclosure and other provisions
relating to issue and sale of financial products 100
Division 1—Preliminary 100
7.9.01 Interpretation............................................................................................................100
7.9.02 Sub-plans .................................................................................................................102
7.9.02A Alternative ways of giving Statement ......................................................................103
7.9.02B Product Disclosure Statement in electronic form.....................................................103
Division 2—Arrangements for Product Disclosure Statements in
relation to superannuation products and RSA
products 105
Subdivision 2.1—Preliminary 105
7.9.03 Application of Division 2.........................................................................................105
Subdivision 2.2—Late provision of Product Disclosure Statement
for certain members of regulated superannuation
fund, public offer superannuation fund or
successor fund 105
7.9.04 Product Disclosure Statement to be provided later ..................................................105
Subdivision 2.3—Product Disclosure Statement for retirement
savings account 106
7.9.05 Situation in which Product Disclosure Statement is not
required....................................................................................................................106
Subdivision 2.4—Additional obligations for eligible rollover funds 106
7.9.06A Relevant superannuation entities..............................................................................106
7.9.06B Application forms ....................................................................................................106
Subdivision 2.5—Product Disclosure Statement for insurance
options 106
7.9.07 Modification of Act: Product Disclosure Statement in
relation to insurance options ....................................................................................106
Division 2A—Product Disclosure Statement for warrants 107
7.9.07A Warrants...................................................................................................................107
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Division 2B—Product Disclosure Statement for market-traded
derivatives 109
7.9.07B Product Disclosure Statements for certain market-traded
derivatives................................................................................................................109
7.9.07C Remedies for Product Disclosure Statements for certain
market-traded derivatives.........................................................................................110
Division 2BA—Product Disclosure Statement for discretionary
mutual funds 111
7.9.07CA.............Extension of Product Disclosure Statement requirements to wholesale clients 111
Division 2C—Situations where a Product Disclosure Statement
is not required 112
7.9.07D Product Disclosure Statement not required for offers of
bundled contracts of insurance.................................................................................112
7.9.07E Product Disclosure Statement not required if offer of
financial product is declined ....................................................................................112
7.9.07F Product Disclosure Statement not required if the client is not
contactable ...............................................................................................................112
7.9.07FA .................... Product Disclosure Statement not required for certain specified products 113
7.9.07FBProduct Disclosure Statement not required if client not in
this jurisdiction ........................................................................................................114
7.9.07FCProduct Disclosure Statement not required general insurance
situation....................................................................................................................114
Division 2D—Preparation and content of Product Disclosure
Statements 116
7.9.07J Only 1 responsible person for a Product Disclosure
Statement .................................................................................................................116
7.9.07K Definition of defective: Product Disclosure Statement,
Short-Form PDS or Replacement Product Disclosure
Statement .................................................................................................................116
Division 2E—Obligation to make information publicly available:
registrable superannuation entities 117
Subdivision 2E.1—Obligation to make product dashboard
publicly available 117
7.9.07L Modification of Act..................................................................................................117
7.9.07M Source of power for this Subdivision.......................................................................117
7.9.07N Definitions ...............................................................................................................117
7.9.07P Meaning of MySuper product dashboard reporting
standards..................................................................................................................118
7.9.07Q Product dashboard—how information must be set out ............................................118
7.9.07R Product dashboard—return target ............................................................................118
7.9.07S Product dashboard—return ......................................................................................119
7.9.07T Product dashboard—comparison between return target and
return........................................................................................................................119
7.9.07U Comparison to be set out as a graph.........................................................................120
7.9.07V Product dashboard—level of investment risk...........................................................121
7.9.07W Product dashboard—statement of fees and other costs ............................................121
Division 3—Dealing with money received for financial product
before the product is issued 122
7.9.08 Accounts ..................................................................................................................122
7.9.08A Dealing with interest ................................................................................................122
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7.9.08B Crediting of payments before money is received .....................................................123
7.9.08C Money held in trust for a superannuation product or RSA
product .....................................................................................................................123
7.9.08D Statutory funds under the Life Insurance Act 1995 ..................................................124
Division 4—Content of Product Disclosure Statements 125
Subdivision 4.1—Preliminary 125
7.9.09 Application of Division 4.........................................................................................125
Subdivision 4.1A—No Product Disclosure Statement for carbon
units, Australian carbon credit units and eligible
international emissions units 125
7.9.09A Application of Subdivision ......................................................................................125
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 ....................................................................................125
7.9.09C Modification of Act..................................................................................................126
Subdivision 4.2A—Form and content of Product Disclosure
Statement for margin loan 126
7.9.11 Application of Subdivision 4.2A..............................................................................126
7.9.11A Provisions of Part 7.7 of Act that do not apply in relation to
margin loan ..............................................................................................................126
7.9.11B Definitions for Subdivision 4.2A .............................................................................126
7.9.11C Modification of Act—margin loan...........................................................................127
7.9.11D Form and content of Product Disclosure Statement for
margin loan ..............................................................................................................127
7.9.11E Requirements for references to incorporated information for
margin loan ..............................................................................................................127
7.9.11F Retention of copies of Product Disclosure Statement for
margin loan ..............................................................................................................128
7.9.11G Requirement to provide copy of Product Disclosure
Statement for margin loan free of charge.................................................................129
7.9.11H Notification about change to Approved Securities List or
current interest rate for margin loan.........................................................................129
Subdivision 4.2B—Content of Product Disclosure Statement for
superannuation product 129
7.9.11K Application of Subdivision 4.2B..............................................................................129
7.9.11L Provisions of Part 7.7 of Act that do not apply in relation to
superannuation product ............................................................................................130
7.9.11LAAttribution of accrued default amount to MySuper product—exemption from significant event notice requirements 130
7.9.11LBAttribution of accrued default amount to MySuper product—modification of significant event notice requirements 130
7.9.11M Provisions of Part 7.9 of Act that do not apply in relation to
superannuation product ............................................................................................131
7.9.11N Modification of Act—superannuation product ........................................................131
7.9.11O Form and content of Product Disclosure Statement for
superannuation product ............................................................................................131
7.9.11P Requirements for references to incorporated information for
superannuation product ............................................................................................132
7.9.11Q Retention of copies of Product Disclosure Statement for
superannuation product ............................................................................................133
7.9.11R Requirement to provide copy of Product Disclosure
Statement for superannuation product free of charge...............................................134
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Subdivision 4.2C—Content of Product Disclosure Statement for
simple managed investment scheme 134
7.9.11S Application of Subdivision 4.2C..............................................................................134
7.9.11T Provisions of Part 7.7 of Act that do not apply in relation to
simple managed investment scheme ........................................................................135
7.9.11U Provisions of Part 7.9 of Act that do not apply in relation to
simple managed investment scheme ........................................................................135
7.9.11V Modification of Act—simple managed investment scheme.....................................135
7.9.11W Form and content of Product Disclosure Statement for
simple managed investment scheme ........................................................................136
7.9.11X Requirements for references to incorporated information for
simple managed investment scheme ........................................................................136
7.9.11Y Retention of copies of Product Disclosure Statement for
simple managed investment scheme ........................................................................137
7.9.11Z Requirement to provide copy of Product Disclosure
Statement for simple managed investment scheme free of
charge.......................................................................................................................138
Subdivision 4.3—Other arrangements for Product Disclosure
Statements and application forms 138
7.9.12 Modification of Act: Product Disclosure Statements and
application forms for standard employer-sponsors and
successor funds ........................................................................................................138
7.9.13 Offer of superannuation interest without application or
eligible application...................................................................................................138
7.9.14 Remedies for person acquiring financial product under
defective Product Disclosure Statement: superannuation and
RSAs........................................................................................................................139
7.9.14A Treatment of arrangements under which a person can instruct
another person to acquire a financial product...........................................................140
Subdivision 4.4—Product information for certain insurance
products 140
7.9.14B Product information .................................................................................................140
Division 4A—General 142
7.9.14C Labour standards and environmental, social and ethical
considerations ..........................................................................................................142
7.9.14D Further statements required in Product Disclosure
Statement—financial claims scheme .......................................................................142
7.9.15 More detailed information in Product Disclosure Statement:
unauthorised foreign insurer ....................................................................................143
7.9.15A Product Disclosure Statements—requirement to state
information as amounts in dollars ............................................................................144
7.9.15B Product Disclosure Statements—disclosure of dollar
amounts....................................................................................................................144
7.9.15C Product Disclosure Statements—disclosure of dollar
amounts....................................................................................................................145
7.9.15CA..............Less information in Product Disclosure Statement—financial claims scheme 146
7.9.15D Less information in product disclosure statement: general
insurance product .....................................................................................................146
7.9.15DA .................. Statement or information not included in a Product Disclosure Statement 146
7.9.15DB.... Requirement to keep record of Product Disclosure Statement and other documents 147
7.9.15DCRequirement to lodge documents mentioned in a Product Disclosure Statement with ASIC 148
7.9.15E More detailed information in product disclosure statement:
general insurance product ........................................................................................148
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7.9.15F Product disclosure statement: general insurance product .........................................148
7.9.15FA ..................... Transitional arrangements for regulations 7.9.15D, 7.9.15E and 7.9.15F 148
7.9.15G Business days...........................................................................................................149
7.9.15H New section 1012G: product disclosure statement may
sometimes be provided later ....................................................................................149
7.9.15I Modification of section 1012IA...............................................................................151
7.9.16 More detailed information in Product Disclosure Statement:
consumer credit insurance product...........................................................................151
7.9.16A Small scale offerings of managed investment and other
prescribed financial products (20 issues or sales in 12
months) ....................................................................................................................152
Division 4B—Ongoing disclosure 153
7.9.16G Ongoing disclosure of material changes and significant
events .......................................................................................................................153
Division 4C—Fee Disclosure for certain financial products 154
Subdivision 4C.1—Application 154
7.9.16J Application of Division 4C to financial products.....................................................154
7.9.16JA Application of Division 4C to financial products—temporary
arrangements............................................................................................................154
7.9.16K Application of Division 4C to periodic statements and
Product Disclosure Statements.................................................................................154
Subdivision 4C.2—Product Disclosure Statements 155
7.9.16L More detailed information about fees and costs.......................................................155
7.9.16M Modification of section 1015C of the Act................................................................155
7.9.16N Presentation, structure and format of fees and costs in
Product Disclosure Statements.................................................................................155
Subdivision 4C.3—Periodic statements 155
7.9.16O Presentation, structure and format of fees and charges in
periodic statements...................................................................................................155
Division 4D—Other requirements relating to Product Disclosure
Statements and Supplementary Product Disclosure
Statements 157
Subdivision 4D.1—Requirement to lodge a notice with ASIC 157
7.9.16T Variation of paragraph 1015D(2)(b) of the Act .......................................................157
Division 5—Ongoing requirements for product disclosure after
person becomes a member 158
Subdivision 5.1—Preliminary 158
7.9.17 Application of Division 5.........................................................................................158
Subdivision 5.2—Periodic statements for retail clients for
financial products that have an investment
component: regulated superannuation funds,
ADFs and RSAs 158
7.9.18 Application of Subdivision 5.2 ................................................................................158
7.9.19 Specific requirements for periodic statements:
superannuation funds (other than self managed
superannuation funds) and RSAs .............................................................................158
7.9.19A Withdrawal benefit—fees, charges or expenses.......................................................159
7.9.19B Withdrawal benefit—fees, charges and expenses ....................................................160
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7.9.20 Specific requirements for certain periodic statements:
superannuation funds (other than self managed
superannuation funds) ..............................................................................................160
7.9.20AASpecific requirements for certain periodic statements: superannuation funds (other than self managed superannuation funds)—long-term returns 162
7.9.20A Details of other significant benefits—disclosure of fees,
charges or expenses..................................................................................................164
7.9.20B Other significant benefits—disclosure of fees, charges or
expenses...................................................................................................................165
7.9.21 Specific requirements in particular cases: member (other
than capital guaranteed member) of fund other than a self
managed superannuation fund..................................................................................166
7.9.22 Specific requirements: capital guaranteed funds and RSAs .....................................166
7.9.23 Information for capital guaranteed fund: benefits reach
$10 000 ....................................................................................................................167
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 ....................................................167
Subdivision 5.3—Periodic statements for retail clients for
financial products that have an investment
component: information for RSAs 167
7.9.25 Application of Subdivision 5.3 ................................................................................167
7.9.26 Specific requirements where applicable: RSAs .......................................................168
7.9.27 Modification of Act: periodic statements for RSA holders ......................................169
7.9.28 Information for RSA: amount reaches $10 000 .......................................................169
Subdivision 5.4—Periodic statements for retail clients for
financial products that have an investment
component: additional information for
superannuation entities and RSA providers 169
7.9.29 Application of Subdivision 5.4 ................................................................................169
7.9.30 Additional information for change to choices ..........................................................169
Subdivision 5.4A—Periodic statements for retail clients for
financial products that have an investment
component: additional information for margin
lending facilities 170
7.9.30A Application of Subdivision 5.4A..............................................................................170
7.9.30B Details to be included in periodic statements for margin
lending facilities.......................................................................................................170
Subdivision 5.5—Fund information for retail clients for financial
products that have an investment component:
superannuation 171
7.9.31 Application of Subdivision 5.5 ................................................................................171
7.9.32 Reporting periods: general .......................................................................................171
7.9.33 Use of more than 1 document ..................................................................................172
Subdivision 5.6—Fund information for retail clients for financial
products that have an investment component:
fund information for regulated superannuation
funds and ADFs 172
7.9.34 Application of Subdivision 5.6 ................................................................................172
7.9.35 General requirement.................................................................................................172
7.9.36 Specific requirements in all cases ............................................................................172
7.9.37 Specific requirements in particular cases .................................................................172
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7.9.38 Specific information in particular case: self managed
superannuation fund.................................................................................................175
7.9.39 Benefits determined by life insurance products .......................................................175
Subdivision 5.7—Fund information for retail clients for financial
products that have an investment component:
fund information for pooled superannuation trusts 176
7.9.40 Application of Subdivision 5.7 ................................................................................176
7.9.41 Specific requirements in all cases ............................................................................176
7.9.42 Specific requirements in particular cases .................................................................176
Subdivision 5.8—Ongoing disclosure of material changes and
significant events 177
7.9.43 Modification of Act: disclosure of material changes and
significant events in relation to superannuation products and
RSA products...........................................................................................................177
7.9.44 Benefits to be paid to eligible rollover fund.............................................................178
Subdivision 5.9—Information on request: members 179
7.9.45 Regulated superannuation funds, ADFs and pooled
superannuation trusts ...............................................................................................179
7.9.46 RSAs........................................................................................................................179
Subdivision 5.10—Information on request: payments 180
7.9.47 Modification of Act: charges for information requested ..........................................180
Subdivision 5.11—Information about complaints 180
7.9.48 Source of power for this Subdivision.......................................................................180
7.9.48A Definitions ...............................................................................................................180
7.9.48B Complaints—general ...............................................................................................180
7.9.48C Complaints about benefits other than death benefits—
decision made ..........................................................................................................181
7.9.48D Complaints about benefits other than death benefits—no
decision made ..........................................................................................................181
7.9.48A Definitions ...............................................................................................................181
7.9.48B Complaints—general ...............................................................................................182
Subdivision 5.12—Periodic report when product holder ceases to
hold product: superannuation products and RSA
products 182
7.9.49 Application of Subdivision 5.12 ..............................................................................182
7.9.50 Exit reporting period ................................................................................................183
7.9.51 Time for compliance ................................................................................................183
7.9.52 General requirement.................................................................................................183
7.9.53 Information on death of product holder ...................................................................183
7.9.54 Specific requirements in all cases ............................................................................183
7.9.55 Specific requirements in particular cases .................................................................184
7.9.56 Exceptions to exit reporting period provisions:
superannuation products and RSA products ............................................................184
7.9.57 Exception—members subject to compulsory protection of
small amounts ..........................................................................................................184
7.9.58 Information to be given in cases other than death of RSA
holder .......................................................................................................................185
7.9.59 Information to be given where applicable................................................................185
7.9.60 Modification of Act: exceptions to exit reporting period
provisions.................................................................................................................185
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Division 5AA—General requirements for financial disclosure 186
7.9.60A Modification of Act: disclosure ...............................................................................186
7.9.60B Disclosure of transactions in periodic statements ....................................................186
Division 5AB—Short-Form Product Disclosure Statements 188
7.9.61AA .......................... Modification of the Act: Short-Form Product Disclosure Statements 188
Division 5A—Dealing with money received for financial product
before the product is issued 190
7.9.61A Lost application money............................................................................................190
7.9.61B Issue of substitute insurance product .......................................................................190
7.9.61C Cheques....................................................................................................................191
Division 5B—Confirming transactions 192
7.9.61D Transactions involving superannuation products .....................................................192
Division 5C—CGS depository interests 193
7.9.61E CGS depository interest information website ..........................................................193
Division 6—Confirmation of transactions 194
7.9.62 Confirmation of transaction: superannuation products and
RSAs........................................................................................................................194
7.9.63 Confirmation of transactions: precise costs of transaction not
known ......................................................................................................................196
7.9.63A Persons who must confirm transactions ...................................................................196
7.9.63B Content of confirmation of transactions—general ...................................................197
7.9.63C Confirmation of transaction—multiple transactions ................................................198
7.9.63D Confirmation of transaction—information about cooling-off
period .......................................................................................................................199
7.9.63E Confirmation of transaction—facility that provides written
confirmation.............................................................................................................200
7.9.63F Confirmation of transaction—acquisition of financial
product .....................................................................................................................200
7.9.63G Confirmation of transaction—disposal of financial product ....................................200
7.9.63H Certain product issuers and regulated persons must meet
appropriate dispute resolution requirements—self managed
superannuation funds ...............................................................................................200
7.9.63I Confirmation of transaction in electronic form ........................................................200
Division 7—Cooling-off periods 202
7.9.64 Cooling-off periods not to apply ..............................................................................202
7.9.64A Notification of exercise of right of return—risk insurance
products....................................................................................................................203
7.9.65 Return of financial product: general.........................................................................203
7.9.66 Return of financial product: superannuation and RSAs ...........................................203
7.9.67 Variation of amount to be repaid .............................................................................204
7.9.68 Modification of section 1019B of the Act: client includes
standard employer-sponsor ......................................................................................206
7.9.69 Modification of provisions of Division 5 of Part 7.9 of the
Act: terms of contract...............................................................................................207
7.9.70 Modification of provisions of Division 5 of Part 7.9 of the
Act: distributions......................................................................................................208
Division 8—Other requirements 209
7.9.71 Modification of section 1017D of the Act: use of more than
1 document...............................................................................................................209
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7.9.71A Periodic statements—exemption for passbook accounts..........................................209
7.9.72 Modification of section 1017D of the Act: information
already given............................................................................................................209
7.9.73 Reporting periods: general .......................................................................................209
7.9.74 Form of application..................................................................................................209
7.9.74A Periodic statements—requirement to state information as
amounts in dollars ....................................................................................................210
7.9.75 Content of periodic statements: costs of transactions...............................................211
7.9.75A Ways of giving information .....................................................................................213
7.9.75B Information in electronic form .................................................................................213
7.9.75BA............................................................. Fund information made available on a website 214
7.9.75C Periodic statements—disclosure of amounts............................................................214
7.9.75D Periodic statements—disclosure of amounts............................................................215
7.9.76 Consents to certain statements .................................................................................216
7.9.77 Alternative dispute resolution requirements—product issuer
that is not a financial services licensee.....................................................................216
7.9.78 Additional statement: trustee required to provide benefits.......................................217
7.9.80B Short selling of certain warrants ..............................................................................217
Division 9—Additional requirements for transfer of lost
members and lost RSA holders 219
7.9.81 Lost members...........................................................................................................219
7.9.82 Lost RSA holders.....................................................................................................219
Division 11—Superannuation to which arrangements apply
under the Family Law Act 1975 220
7.9.84 Definitions for Division 11 ......................................................................................220
7.9.85 Application of Division 11.......................................................................................221
7.9.86 Acquisition of financial product...............................................................................221
7.9.87 Modification of Act: Product Disclosure Statement in
relation to superannuation interest under Family Law Act ......................................221
7.9.88 Statement content in relation to superannuation interest
under Family Law Act: superannuation fund...........................................................222
7.9.89 Statement content in relation to superannuation interest
under Family Law Act: RSA ...................................................................................223
7.9.90 Information for existing holders of superannuation products
and RSA products in relation to superannuation interest .........................................223
7.9.91 Periodic statements for retail clients for financial products
that have an investment component—general..........................................................224
7.9.92 Periodic statements for retail clients for financial products
that have an investment component—superannuation interest
other than percentage-only interest ..........................................................................224
7.9.93 Trustees of superannuation entities—additional obligation to
provide information in relation to superannuation interest.......................................225
7.9.94 Division 5 of Part 7.9 of the Act not to apply in relation to
non-member spouse .................................................................................................225
Division 12—Medical indemnity insurance 226
7.9.95 Medical indemnity insurance—exemption from product
disclosure provisions................................................................................................226
Division 13—Unsolicited offers to purchase financial products
off market 227
7.9.96 Percentage increase or decrease in the market value of a
product .....................................................................................................................227
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7.9.97 Off-market trading by professional investors etc .....................................................227
7.9.97A Information in offer document if payment is to be made in
instalments ...............................................................................................................227
Division 14—Exemptions from Parts 7.7, 7.8 and 7.9 of the Act 229
7.9.98 Certain providers of financial services exempted from the
requirements of Parts 7.7, 7.8 and 7.9 of the Act .....................................................229
7.9.98A Exemption from application of Part 7.9 of the Act ..................................................229
Division 15—Disclosure in relation to short sales covered by
securities lending arrangement of listed
section 1020B products 230
7.9.99 Interpretation............................................................................................................230
7.9.100 Seller disclosure.......................................................................................................230
7.9.100ASeller disclosure of existing short position...............................................................232
7.9.101 Licensee disclosure ..................................................................................................232
7.9.102 Public disclosure of information ..............................................................................232
Part 7.10—Market misconduct and other prohibited conduct
relating to financial products and financial services 234 7.10.01 Division 3 financial products ...................................................................................234
7.10.02 Professional standards schemes ...............................................................................234
7.10.03 Exemption for market participants of qualifying gas trading
exchange ..................................................................................................................236
Part 7.11—Title and transfer 237
Division 1—Preliminary 237
7.11.01 Definitions ...............................................................................................................237
7.11.03 Arrangements about Division 4 financial products ..................................................238
7.11.04 Arrangements for forms ...........................................................................................239
7.11.05 Document duly completed in accordance with a particular
form .........................................................................................................................240
7.11.06 Stamping of documents............................................................................................240
7.11.07 Application of Division 3 of Part 7.11 of the Act to certain
bodies.......................................................................................................................241
7.11.08 Interests in registered schemes.................................................................................241
Division 2—Application of Part 7.11 242
7.11.09 Application ..............................................................................................................242
Division 3—Transfer of Division 3 securities effected otherwise
than through a prescribed CS facility 243
7.11.10 Application of Division 3.........................................................................................243
7.11.11 Sufficient transfer: general.......................................................................................243
7.11.12 Sufficient transfer of Division 3 assets: licensed trustee
company or Public Trustee of a State or Territory ...................................................243
7.11.13 Sufficient transfer of Division 3 rights: licensed trustee
company or Public Trustee of a State or Territory ...................................................244
7.11.14 Sufficient transfer ....................................................................................................244
7.11.15 Transferee’s execution of transfer of Division 3 assets............................................244
7.11.16 Transferee’s execution of transfer of Division 3 rights ............................................244
7.11.17 Transfer document that purports to bear stamp of transferor's
broker.......................................................................................................................245
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7.11.18 Warranties by market licensee if transfer document purports
to bear its stamp .......................................................................................................246
7.11.19 Indemnities by market licensee and broker if transfer
document purports to bear their stamps ...................................................................247
7.11.20 Joint and several warranties and liabilities...............................................................247
7.11.21 Registration of certain instruments ..........................................................................248
7.11.22 Details to be included in instrument of transfer .......................................................248
Division 4—Transfer of Division 4 financial products effected
through prescribed CS facility 249
7.11.23 Application of Division 4.........................................................................................249
7.11.24 Application of ASTC operating rules.......................................................................249
7.11.25 Participant’s authority to enter into transaction continues
despite client’s death................................................................................................249
7.11.26 Authority to enter into transaction gives authority to transfer..................................249
7.11.27 Effect of proper ASTC transfer on transferee: Division 4
financial products other than rights..........................................................................250
7.11.28 Effect of proper ASTC transfer on transferee: rights ...............................................251
7.11.29 Warranties by participant if identification code is included in
transfer document ....................................................................................................252
7.11.30 Indemnities in respect of warranted matters: transfer not
effected by the participant........................................................................................253
7.11.31 Indemnities in respect of warranted matters: transferor not
legally entitled or authorised to transfer Division 4 financial
products....................................................................................................................253
7.11.32 Indemnities in respect of warranted matters: participant not
authorised to effect transfer......................................................................................254
7.11.33 Joint and several warranties and liabilities...............................................................255
7.11.34 ASTC entitled to assume its operating rules complied with.....................................255
7.11.35 ASTC-regulated transfer not to be registered unless proper
ASTC transfer ..........................................................................................................255
7.11.36 Issuer not to refuse to register proper ASTC transfer...............................................256
7.11.37 Determination of who holds Division 4 financial products for
the purposes of meeting ...........................................................................................256
7.11.38 Determination of who holds Division 4 financial products in
class of Division 4 financial products for the purposes of
meeting ....................................................................................................................256
7.11.39 Determination of who holds Division 4 financial products for
the purposes of conferring security benefits.............................................................257
Division 5—Offences 258
7.11.40 Stamping of broker’s stamp on sufficient transfer ...................................................258
7.11.41 Inclusion of identification codes in proper ASTC transfers .....................................259
7.11.42 Contravention by participant of the ASTC certificate
cancellation provisions relating to use of cancellation stamps .................................259
Division 6—Civil liability 260
7.11.43 Contravention by participant of the ASTC certificate
cancellation provisions.............................................................................................260
Part 7.12—Miscellaneous 261 7.12.01 Destruction of records by ASIC...............................................................................261
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Chapter 8—Mutual recognition of securities offers 262
Part 8.1—Preliminary 262 8.1.01 Prescribed foreign recognition scheme (Act s 1200A(1)) ........................................262
8.1.02 Prescribed offeror (Act s 1200A(1)) ........................................................................262
8.1.03 Prescribed recognised jurisdiction (Act s 1200A(1)) ...............................................262
Part 8.2—Foreign offers that are recognised in this jurisdiction 263
Division 1—Recognised offers 263
8.2.01 Prescribed offer (Act s 1200C(4))............................................................................263
8.2.02 Prescribed warning statements (Act s 1200E)..........................................................263
8.2.03 Prescribed details to be given in warning statements (Act s
1200E(b)).................................................................................................................264
8.2.04 Prescribed home regulators (Act s 1200G(13) and (14)) .........................................265
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) 266
8.4.01 Modification of Part 7.9 of the Act—New Zealand offer
documents replace Product Disclosure Statements ..................................................266
8.4.02 Modification of Part 6D.2 of the Act and Part 7.9 of the
Act—certain disclosure obligations not to apply .....................................................266
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Financial service disclosure Part 7.7
Preliminary Division 1
Regulation 7.7.01
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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
(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.
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Part 7.7 Financial service disclosure
Division 2 Financial Services Guide
Regulation 7.7.02
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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.
(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.
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:
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Financial Services Guide Division 2
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(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
(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.
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Part 7.7 Financial service disclosure
Division 2 Financial Services Guide
Regulation 7.7.02
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(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
(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:
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
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(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:
“(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
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(c) meet the requirements of subsections 942B(3) and (6A) or
subsections 942C(3) and (6A) (as the case may be).”
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.
(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.
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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.
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
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(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
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 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.
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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%.
(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.
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(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.
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
(ii) a statement setting out, in general terms, the individual’s role and
capacity in providing the financial service.
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(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
(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.
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(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.
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
(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:
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(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.
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:
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(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
(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.
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
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(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
(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.
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Part 7.7 Financial service disclosure
Division 2 Financial Services Guide
Regulation 7.7.08
16 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Financial service disclosure Part 7.7
Combined Financial Services Guide and Product Disclosure Statement Division 2A
Regulation 7.7.08A
Corporations Regulations 2001 17
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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
(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
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Part 7.7 Financial service disclosure
Division 2A Combined Financial Services Guide and Product Disclosure Statement
Regulation 7.7.08A
18 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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
(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.
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Financial service disclosure Part 7.7
Combined Financial Services Guide and credit guide Division 2AA
Regulation 7.7.08B
Corporations Regulations 2001 19
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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.’
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Part 7.7 Financial service disclosure
Division 2B Record of small investment advice
Regulation 7.7.08C
20 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Statement of Advice Division 3
Regulation 7.7.09
Corporations Regulations 2001 21
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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.
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Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.09A
22 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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:
(a) the value to the client of the total divestment; and
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Regulation 7.7.09A
Corporations Regulations 2001 23
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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.
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Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.09AA
24 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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
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(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 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
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Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.09BB
26 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
‘(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.
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Regulation 7.7.09C
Corporations Regulations 2001 27
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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).
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.”
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;
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Regulation 7.7.10AB
28 Corporations Regulations 2001
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(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”.
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”.
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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:
(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)).”
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:
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(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
(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
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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 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)).
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;
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(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”
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”
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Column 1 Column 2 Column 3 Column 4
Item provision of Act is modified by… and…
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 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.”
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:
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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),”
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
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Column 1 Column 2 Column 3
Item provision of Act is modified by…
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
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 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:
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(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.
(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.”
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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).
(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.
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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;
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.
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(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 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 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:
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Part 7.7 Financial service disclosure
Division 3 Statement of Advice
Regulation 7.7.13A
40 Corporations Regulations 2001
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(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.
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;
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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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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
42 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Financial service disclosure Part 7.7
Other disclosure requirements Division 5
Regulation 7.7.20
Corporations Regulations 2001 43
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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
(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:
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Part 7.7 Financial service disclosure
Division 5 Other disclosure requirements
Regulation 7.7.20A
44 Corporations Regulations 2001
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(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.
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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 45
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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.
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Chapter 7 Financial services and markets
Part 7.7A Best interests obligations and remuneration
Division 2 Best interests obligations
Regulation 7.7A.05
46 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Part 7.7A—Best interests obligations and remuneration
Note: Regulations 7.7A.01 to 7.7A.04 are reserved for future use.
Division 2—Best interests obligations
7.7A.05 Best interests duty—basic banking products etc.
(1) This regulation:
(a) is made for paragraph 961B(5)(b) of the Act; and
(b) prescribes a circumstance in which the provider is not required to prove
that he or she has taken the steps mentioned in paragraphs 961B(2)(d), (e),
(f) and (g) of the Act in relation to advice that relates to a basic banking
product or general insurance product.
(2) The provider is not required to prove that he or she has taken the steps if:
(a) the provider is:
(i) an agent or employee of an Australian ADI; or
(ii) otherwise acting by arrangement with an Australian ADI under the
name of the Australian ADI; and
(b) the subject matter of the advice sought by the client relates only to the
following:
(i) a basic banking product;
(ii) a general insurance product;
(iii) consumer credit insurance;
(iv) a combination of any of those products.
7.7A.06 Best interests duty—general insurance products
(1) This regulation:
(a) is made for paragraph 961B(5)(b) of the Act; and
(b) prescribes a circumstance in which the provider is not required to prove
that he or she has taken the steps mentioned in paragraphs 961B(2)(d), (e),
(f) and (g) of the Act.
(2) The provider is not required to prove that he or she has taken the steps to the
extent that the subject matter of the advice sought by the client is a general
insurance product.
7.7A.07 Best interests duty—basic banking products
For paragraph 961F(e) of the Act, a facility for making non-cash payments (see
section 763D of the Act) that is not related to a basic deposit product is a basic
banking product.
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Best interests obligations and remuneration Part 7.7A
Charging ongoing fees to clients Division 3
Regulation 7.7A.10
Corporations Regulations 2001 47
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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.
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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.12
48 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 1: The definition of financial product advice is in subsection 766B(1) of the Act.
Note 2: A reference in this Division to giving a benefit includes a reference to causing or
authorising it to be given (see section 52 of the Act).
Note 3: Under the governing rules of some regulated superannuation funds, a member may
seek advice on the basis that the trustee of the fund will pay the licensee or
representative for the advice and then recover the amount paid from the assets of the
fund attributed to that member. In that case, the member has caused or authorised the
amount to be paid to the licensee or representative. If the operation of section 52 of the
Act and these regulations means that the payment is not conflicted remuneration, the
trustee’s obligations under section 62 of the Superannuation Industry (Supervision) Act
1993 (which deals with the purposes for which a trustee may act in maintaining a
regulated superannuation fund) will not be affected.
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:
approved capital raising means:
(a) an offer to issue an approved financial product; or
(b) an offer to sell an approved financial product;
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Regulation 7.7A.12C
Corporations Regulations 2001 49
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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.
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
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Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.12D
50 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
licensee that is not a trading participant in respect of dealings undertaken
by a retail client through a specified service; and
(b) each of those trades is executed by the trading participant on behalf of the
retail client; and
(c) the fee is a percentage, not exceeding 100%, of a brokerage fee paid
directly or indirectly by the retail client; and
(d) no portion of the benefit is paid to a person other than the trading
participant or the licensee that is not a trading participant.
(2) In this regulation:
brokerage fee means a fee that a retail client pays to a provider in relation to a
transaction in which the provider, on behalf of the retail client, deals in a
financial product that is traded on:
(a) a prescribed financial market; or
(aa) the market known as the ASX24; or
(b) a prescribed foreign financial market.
Note 1: Regulations 7.7A.17 and 7.7A.18 relate to exemptions in relation to the charging of
asset-based fees on borrowed amounts.
Note 2: The ASX24 is the financial market operated by Australian Securities Exchange Limited
that was formerly known as the Sydney Futures Exchange.
prescribed foreign financial market means a financial market that:
(a) has its principal place of business in a foreign country; and
(b) has been authorised by an authority in that country that is a signatory to the
International Organization of Securities Commissions’ Multilateral
Memorandum of Understanding Concerning Consultation and Cooperation
and the Exchange of Information of May 2002.
specified service means a service which:
(a) is provided for retail clients under the name or brand name of:
(i) the financial services licensee that is not a trading participant; or
(ii) the trading participant and the financial services licensee that is not a
trading participant; and
(b) relates to the dealing, on behalf of the retail client, in a financial product
traded on:
(i) a prescribed financial market; or
(ii) a prescribed foreign financial market; and
(c) is provided in either or both of the following ways:
(i) by direct electronic access;
(ii) by telephone, but only if:
(A) direct electronic access is not available for a temporary
period, or the retail client expresses a preference that the
service be provided by telephone; and
(B) neither the trading participant nor the financial services
licensee that is not a trading participant is to provide financial
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Regulation 7.7A.12E
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product advice to the retail client by telephone in relation to
the dealing undertaken on the retail client’s behalf; and
(d) is provided in circumstances in which neither the trading participant nor the
financial services licensee that is not a trading participant provides personal
advice to the retail client in relation to the dealing undertaken on the retail
client’s behalf.
trading participant of a prescribed financial market or the market known as the
ASX24 means a person who:
(a) is a participant of the market admitted under the market’s operating rules;
and
(b) is allowed, under the market’s operating rules, to deal in one or more of the
financial products that are able to be traded on the market.
Note: The ASX24 is the financial market operated by Australian Securities Exchange Limited
that was formerly known as the Sydney Futures Exchange.
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
(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
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Division 4 Conflicted remuneration
Regulation 7.7A.12G
52 Corporations Regulations 2001
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(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:
(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) consumer credit insurance;
(iv) a combination of any of those 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:
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Regulation 7.7A.13
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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.
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.
(5) In this regulation:
education or training course includes a conference or seminar.
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Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.15
54 Corporations Regulations 2001
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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
(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.
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Conflicted remuneration Division 4
Regulation 7.7A.16
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(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 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.
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Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.16B
56 Corporations Regulations 2001
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(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.
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:
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(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
(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
(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
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Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.16BA
58 Corporations Regulations 2001
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(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.
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.
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Regulation 7.7A.16D
Corporations Regulations 2001 59
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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.
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
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Part 7.7A Best interests obligations and remuneration
Division 4 Conflicted remuneration
Regulation 7.7A.16E
60 Corporations Regulations 2001
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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 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.
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
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(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.
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.
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Part 7.7A Best interests obligations and remuneration
Division 6 Exemptions from application of Part 7.7A of the Act
Regulation 7.7A.40
62 Corporations Regulations 2001
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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.
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Other provisions relating to conduct etc connected with financial products and financial services, other
than financial product disclosure Part 7.8
Regulation 7.8.01A
Corporations Regulations 2001 63
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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
7.8.01A Wholesale client money
For the purposes of paragraph 981A(4)(a) of the Act, money paid as mentioned
in subsection 981A(1) of the Act is exempt from Subdivision A of Division 2 of
Part 7.8 of the Act at a time if:
(a) at that time the licensee has the client’s written agreement to the money
being dealt with other than in accordance with that Subdivision; and
Note 1: It is not necessary for the agreement to mention that Subdivision explicitly.
Note 2: If the licensee obtains the agreement after the money is paid, that Subdivision ceases to apply to the money when the licensee obtains the agreement.
(b) either:
(i) the financial service referred to in subparagraph 981A(1)(a)(i) of the
Act is or relates to a dealing in a derivative; or
(ii) the financial product referred to in subparagraph 981A(1)(a)(ii) of the
Act is a derivative; and
(c) the entry into of the derivative was not or will not be cleared through a
clearing and settlement facility; and
(d) the financial service or product would have been provided to the client as a
wholesale client if:
(i) the service or product were provided to the client when the money
was paid; and
(ii) section 761GA of the Act (about sophisticated investors) did not
apply.
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.
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Regulation 7.8.01
64 Corporations Regulations 2001
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(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 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:
(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
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Regulation 7.8.01
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(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.
(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.
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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 7.8.02
66 Corporations Regulations 2001
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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:
(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;
(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.
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Regulation 7.8.02
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(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.
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
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(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
(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).
(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:
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(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.
(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;
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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.
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:
(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.
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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.
7.8.06B Wholesale client property
For the purposes of paragraph 984A(2)(a) of the Act, property given as
mentioned in subsection 984A(1) of the Act is exempt from Division 3 of
Part 7.8 of the Act at a time if:
(a) at that time the licensee has the client’s written agreement to the property
being dealt with other than in accordance with that Division; and
Note 1: It is not necessary for the agreement to mention that Division explicitly.
Note 2: If the licensee obtains the agreement after the property is given, that Division ceases to apply to the property when the licensee obtains the agreement.
(b) either:
(i) the financial service referred to in subparagraph 984A(1)(a)(i) of the
Act is or relates to a dealing in a derivative; or
(ii) the financial product referred to in subparagraph 984A(1)(a)(ii) of the
Act is a derivative; and
(c) the entry into of the derivative was not or will not be cleared through a
clearing and settlement facility; and
(d) the financial service or product would have been provided to the client as a
wholesale client if:
(i) the service or product were provided to the client when the property
was given; and
(ii) section 761GA of the Act (about sophisticated investors) did not
apply.
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:
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(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.
(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
(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):
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(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
(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:
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(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;
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:
(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
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(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 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:
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(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
(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 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
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(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), 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):
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(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
(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 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:
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(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.
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.
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80 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
‘(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;
(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
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(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.
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).
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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.
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.
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:
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(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.
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.
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Regulation 7.8.13
84 Corporations Regulations 2001
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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.”.
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
(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.
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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.’.
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.”.
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Regulation 7.8.14B
86 Corporations Regulations 2001
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(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:
(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.”.
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7.8.15 Appointment of auditor by financial services licensee
(1) For subsections 990B(7) and (8) of the Act, this regulation:
(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
(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.
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Regulation 7.8.16
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(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
(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:
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(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.
(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
(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:
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Regulation 7.8.17
90 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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
(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 that the market integrity rules, or the
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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;
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:
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(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
(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
Corporations Regulations 2001 93
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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 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:
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Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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 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;
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(ii) the date and time of receipt of the instructions for the financial
products transaction;
(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
(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
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96 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
(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):
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“(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.
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
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Regulation 7.8.22A
98 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
‘(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).’.
7.8.23 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;
(b) a financial product the acquisition of which is an additional contribution
required by an existing agreement or contract;
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(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.
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Division 1 Preliminary
Regulation 7.9.01
100 Corporations Regulations 2001
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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
(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.
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Regulation 7.9.01
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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.
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.
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Division 1 Preliminary
Regulation 7.9.02
102 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
superannuation provider means any of the following:
(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.
(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.
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Preliminary Division 1
Regulation 7.9.02A
Corporations Regulations 2001 103
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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;
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.
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Part 7.9 Financial product disclosure and other provisions relating to issue and sale of financial
products
Division 1 Preliminary
Regulation 7.9.02B
104 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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7.9
Arrangements for Product Disclosure Statements in relation to superannuation products and RSA
products Division 2
Regulation 7.9.03
Corporations Regulations 2001 105
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(c) a superannuation interest issued by the trustee of a successor fund in
relation to the transfer of benefits in the fund;
(d) a superannuation interest issued by the trustee of a regulated
superannuation fund as a result of complying with a commutation authority
issued to the trustee under Subdivision 136-B in Schedule 1 to the Taxation
Administration Act 1953.
(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.
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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
106 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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.
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7.9
Product Disclosure Statement for warrants Division 2A
Regulation 7.9.07A
Corporations Regulations 2001 107
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
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.
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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
108 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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7.9
Product Disclosure Statement for market-traded derivatives Division 2B
Regulation 7.9.07B
Corporations Regulations 2001 109
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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.
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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 7.9.07C
110 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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7.9
Product Disclosure Statement for discretionary mutual funds Division 2BA
Regulation 7.9.07CA
Corporations Regulations 2001 111
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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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 7.9.07D
112 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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:
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Situations where a Product Disclosure Statement is not required Division 2C
Regulation 7.9.07FA
Corporations Regulations 2001 113
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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 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
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Part 7.9 Financial product disclosure and other provisions relating to issue and sale of financial
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Division 2C Situations where a Product Disclosure Statement is not required
Regulation 7.9.07FB
114 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(iii) information about the financial claims scheme can be obtained from
the APRA website at 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
(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.
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Situations where a Product Disclosure Statement is not required Division 2C
Regulation 7.9.07FC
Corporations Regulations 2001 115
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.”
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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
116 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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’.
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7.9
Obligation to make information publicly available: registrable superannuation entities Division 2E
Regulation 7.9.07L
Corporations Regulations 2001 117
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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
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Regulation 7.9.07P
118 Corporations Regulations 2001
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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.
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.
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Regulation 7.9.07S
Corporations Regulations 2001 119
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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
(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:
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Regulation 7.9.07U
120 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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
(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.
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Regulation 7.9.07V
Corporations Regulations 2001 121
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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.
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products
Division 3 Dealing with money received for financial product before the product is issued
Regulation 7.9.08
122 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
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;
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Regulation 7.9.08B
Corporations Regulations 2001 123
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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:
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Division 3 Dealing with money received for financial product before the product is issued
Regulation 7.9.08D
124 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(a) subsection 1017E(2A) of the Act does not apply in relation to the money;
and
(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.
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7.9
Content of Product Disclosure Statements Division 4
Regulation 7.9.09
Corporations Regulations 2001 125
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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.
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:
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Division 4 Content of Product Disclosure Statements
Regulation 7.9.09C
126 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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 4.2A—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.
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.
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Regulation 7.9.11C
Corporations Regulations 2001 127
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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
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Regulation 7.9.11F
128 Corporations Regulations 2001
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(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
(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
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Regulation 7.9.11G
Corporations Regulations 2001 129
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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:
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Regulation 7.9.11L
130 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
(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;
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Regulation 7.9.11M
Corporations Regulations 2001 131
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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
(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.
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Division 4 Content of Product Disclosure Statements
Regulation 7.9.11P
132 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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
(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.
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Content of Product Disclosure Statements Division 4
Regulation 7.9.11Q
Corporations Regulations 2001 133
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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.
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Division 4 Content of Product Disclosure Statements
Regulation 7.9.11R
134 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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
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Regulation 7.9.11T
Corporations Regulations 2001 135
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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.
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products
Division 4 Content of Product Disclosure Statements
Regulation 7.9.11W
136 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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:
(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.
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Regulation 7.9.11Y
Corporations Regulations 2001 137
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
(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.
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Division 4 Content of Product Disclosure Statements
Regulation 7.9.11Z
138 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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
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Regulation 7.9.14
Corporations Regulations 2001 139
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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).
(4) Strict liability applies to subregulation (2).
Note: For strict liability, see section 6.1 of the Criminal Code.
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.
(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:
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Division 4 Content of Product Disclosure Statements
Regulation 7.9.14A
140 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
(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.
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Content of Product Disclosure Statements Division 4
Regulation 7.9.14B
Corporations Regulations 2001 141
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.’.
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products
Division 4A General
Regulation 7.9.14C
142 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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:
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General Division 4A
Regulation 7.9.15
Corporations Regulations 2001 143
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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
(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 Act 1973, and, if the insurer
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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.
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.
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General Division 4A
Regulation 7.9.15C
Corporations Regulations 2001 145
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
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:
(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
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Regulation 7.9.15CA
146 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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);
(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
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Regulation 7.9.15DB
Corporations Regulations 2001 147
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
(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 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
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Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
(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
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Regulation 7.9.15G
Corporations Regulations 2001 149
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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 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:
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150 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
(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).”
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General Division 4A
Regulation 7.9.15I
Corporations Regulations 2001 151
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.”
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
(g) a statement of the commission paid or payable in relation to the provision
of the consumer credit insurance product.
(2) In this regulation:
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Division 4A General
Regulation 7.9.16A
152 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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7.9
Ongoing disclosure Division 4B
Regulation 7.9.16G
Corporations Regulations 2001 153
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Division 4C Fee Disclosure for certain financial products
Regulation 7.9.16J
154 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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.
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Fee Disclosure for certain financial products Division 4C
Regulation 7.9.16L
Corporations Regulations 2001 155
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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:
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Division 4C Fee Disclosure for certain financial products
Regulation 7.9.16O
156 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(a) in the manner specified in Part 3 of Schedule 10; and
(b) using the terminology used in Part 3 of Schedule 10.
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7.9
Other requirements relating to Product Disclosure Statements and Supplementary Product Disclosure
Statements Division 4D
Regulation 7.9.16T
Corporations Regulations 2001 157
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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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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 7.9.17
158 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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;
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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 7.9.19A
Corporations Regulations 2001 159
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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;
(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.
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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 7.9.19B
160 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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).
(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.
(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;
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7.9
Ongoing requirements for product disclosure after person becomes a member Division 5
Regulation 7.9.20
Corporations Regulations 2001 161
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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 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;
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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 7.9.20AA
162 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(m) the net amount of Government co-contribution received during the
reporting period;
(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; and
(c) the amount of low income superannuation tax offsets 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 tax offset.
(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).
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.
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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 7.9.20AA
Corporations Regulations 2001 163
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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 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
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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 7.9.20A
164 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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 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 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
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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 7.9.20B
Corporations Regulations 2001 165
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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
(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
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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 7.9.21
166 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(b) published in the Gazette.
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;
(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:
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Regulation 7.9.23
Corporations Regulations 2001 167
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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.
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.
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Division 5 Ongoing requirements for product disclosure after person becomes a member
Regulation 7.9.26
168 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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.
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Regulation 7.9.27
Corporations Regulations 2001 169
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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.
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
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170 Corporations Regulations 2001
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(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.
(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
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(iii) the current LVR;
(f) a summary of all transactions affecting the margin lending facility during
the reporting period.
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 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.
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Regulation 7.9.33
172 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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;
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Corporations Regulations 2001 173
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(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, 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;
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;
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174 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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;
(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
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(ii) the contact details of the eligible rollover fund; and
(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.
(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.
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Regulation 7.9.40
176 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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;
(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;
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(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 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.
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.
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Regulation 7.9.44
178 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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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Regulation 7.9.45
Corporations Regulations 2001 179
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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.
(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.
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Division 5 Ongoing requirements for product disclosure after person becomes a member
Regulation 7.9.47
180 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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:
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(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
(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
(ii) if the Regulator gives the decision-maker an extension—within the
extended period.
7.9.48A Definitions
In this Subdivision:
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Regulation 7.9.48B
182 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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.
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Regulation 7.9.50
Corporations Regulations 2001 183
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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:
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Division 5 Ongoing requirements for product disclosure after person becomes a member
Regulation 7.9.55
184 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
(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
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Regulation 7.9.58
Corporations Regulations 2001 185
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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) 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.
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.
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Division 5AA General requirements for financial disclosure
Regulation 7.9.60A
186 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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.
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General requirements for financial disclosure Division 5AA
Regulation 7.9.60B
Corporations Regulations 2001 187
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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Division 5AB Short-Form Product Disclosure Statements
Regulation 7.9.61AA
188 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.”
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.
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Short-Form Product Disclosure Statements Division 5AB
Regulation 7.9.61AA
Corporations Regulations 2001 189
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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products
Division 5A Dealing with money received for financial product before the product is issued
Regulation 7.9.61A
190 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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:
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Dealing with money received for financial product before the product is issued Division 5A
Regulation 7.9.61C
Corporations Regulations 2001 191
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.’.
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Division 5B Confirming transactions
Regulation 7.9.61D
192 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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’.
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CGS depository interests Division 5C
Regulation 7.9.61E
Corporations Regulations 2001 193
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Division 6 Confirmation of transactions
Regulation 7.9.62
194 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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;
(d) crediting an amount to a basic deposit 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;
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Regulation 7.9.62
Corporations Regulations 2001 195
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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
(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
(b) the transaction involves the use of a facility for making non-cash payments
that is linked to the basic deposit product; and
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Division 6 Confirmation of transactions
Regulation 7.9.63
196 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
(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:
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Regulation 7.9.63B
Corporations Regulations 2001 197
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(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.
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.
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Division 6 Confirmation of transactions
Regulation 7.9.63C
198 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
(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
(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
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Regulation 7.9.63D
Corporations Regulations 2001 199
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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 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.
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Division 6 Confirmation of transactions
Regulation 7.9.63E
200 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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.
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Regulation 7.9.63I
Corporations Regulations 2001 201
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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Division 7 Cooling-off periods
Regulation 7.9.64
202 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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.
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Regulation 7.9.64A
Corporations Regulations 2001 203
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
(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.
7.9.66 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;
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Regulation 7.9.67
204 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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
(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
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Regulation 7.9.67
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Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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 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
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Regulation 7.9.68
206 Corporations Regulations 2001
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(b) do not exceed the true cost of an arms’ length transaction.
Financial product issued for specific period
(8) If:
(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.
(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.
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Regulation 7.9.69
Corporations Regulations 2001 207
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
(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
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Regulation 7.9.70
208 Corporations Regulations 2001
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(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).
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.
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Other requirements Division 8
Regulation 7.9.71
Corporations Regulations 2001 209
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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
(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
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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:
(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:
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(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).
(5) A determination under subregulation (3) or (4) must be:
(a) in writing; and
(b) published in the Gazette.
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
(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
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(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
(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:
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(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.
(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 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
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Regulation 7.9.75BA
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(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.
(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.
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(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
(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).
(4) If subregulation (3) applies, the periodic statement must include:
(a) a statement informing the product holder that the amount is applicable; and
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Regulation 7.9.76
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(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
(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
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(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
(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
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Regulation 7.9.80B
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Act and is excluded from that paragraph 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.
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Additional requirements for transfer of lost members and lost RSA holders Division 9
Regulation 7.9.81
Corporations Regulations 2001 219
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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 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.
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Division 11 Superannuation to which arrangements apply under the Family Law Act 1975
Regulation 7.9.84
220 Corporations Regulations 2001
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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.
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.
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Regulation 7.9.85
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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.
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.’.
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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 11 Superannuation to which arrangements apply under the Family Law Act 1975
Regulation 7.9.88
222 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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.
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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 7.9.89
Corporations Regulations 2001 223
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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’.
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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 11 Superannuation to which arrangements apply under the Family Law Act 1975
Regulation 7.9.91
224 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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;
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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 225
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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 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.
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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 12 Medical indemnity insurance
Regulation 7.9.95
226 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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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
Unsolicited offers to purchase financial products off market Division 13
Regulation 7.9.96
Corporations Regulations 2001 227
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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
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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 13 Unsolicited offers to purchase financial products off market
Regulation 7.9.97A
228 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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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 229
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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.
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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 15 Disclosure in relation to short sales covered by securities lending arrangement of listed
section 1020B products
Regulation 7.9.99
230 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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:
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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
Disclosure in relation to short sales covered by securities lending arrangement of listed section 1020B
products Division 15
Regulation 7.9.100
Corporations Regulations 2001 231
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
(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.
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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 15 Disclosure in relation to short sales covered by securities lending arrangement of listed
section 1020B products
Regulation 7.9.100A
232 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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 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
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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 233
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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.
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Chapter 7 Financial services and markets
Part 7.10 Market misconduct and other prohibited conduct relating to financial products and financial
services
Regulation 7.10.01
234 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 CPA Australia Limited Professional Standards Scheme,
published in the New South Wales Government Gazette
No. 124, 4 October 2013, including as modified by:
(a) the amendments made by instrument published in the New
South Wales Government Gazette No. 13, 31 January
2014; and
(b) the amendments made by instrument published in the New
South Wales Government Gazette No. 116, 5 December
2014; and
(c) the extension published in the New South Wales
Government Gazette No. 50, 17 June 2016
The scheme, and the
amendments mentioned in
paragraphs (a) and (b)—
19 June 2015
The extension mentioned in
paragraph (c)—the day the
Treasury Laws Amendment
(Professional Standards
Schemes) Regulations 2017
commence
2 Chartered Accountants Australia and New Zealand
Professional Standards Scheme (NSW), including as modified
by amendments published in the New South Wales
Government Gazette No. 72, 28 August 2015
Note: This Scheme was formerly the Institute of Chartered Accountants in Australia Professional Standards Scheme (NSW) published in the New South Wales Government Gazette No. 70, 22 August 2014.
The scheme—1 December
2014
The amendments—
27 February 2016
3 The Law Society of New South Wales Scheme, published in
the New South Wales Government Gazette No. 78, 27 July
2012
1 March 2013
4 The New South Wales Bar Association Scheme, published in
the New South Wales Government Gazette No. 17, 5 March
2015
13 August 2015
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Market misconduct and other prohibited conduct relating to financial products and financial services
Part 7.10
Regulation 7.10.02
Corporations Regulations 2001 235
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Prescribed professional standards schemes
Item Column 1
Scheme
Column 2
Date prescribed
5 Chartered Accountants Australia and New Zealand
Professional Standards Scheme (Victoria), including as
modified by amendments published in the Victoria
Government Gazette No. S 246, 28 August 2015
Note: This Scheme was formerly the Institute of Chartered Accountants in Australia Professional Standards Scheme (Victoria) published in the Victoria Government Gazette No. S 264, 5 August 2014.
The scheme—1 December
2014
The amendments—
27 February 2016
6 The Law Institute of Victoria Limited Scheme, published in
the Victoria Government Gazette No. G 16, 21 April 2016
Note: This Scheme was formerly the Law Institute of Victoria Limited Scheme, published in the Victoria Government Gazette No. G 10, 11 March 2010.
The day the Treasury Laws
Amendment (Professional
Standards Schemes)
Regulations 2017 commence
7 The Victorian Bar Professional Standards Scheme, published
in the Victoria Government Gazette No. S 134, 24 April 2014
14 June 2014
8 The Bar Association of Queensland Scheme, published in the
Queensland Government Gazette No. 40, 24 June 2013
15 March 2014
9 Chartered Accountants Australia and New Zealand
Professional Standards Scheme (Queensland), including as
modified by amendments notified by the Queensland
Government on 11 December 2015
Note: This Scheme was formerly the Institute of Chartered Accountants in Australia Professional Standards Scheme (Queensland) notified by the Queensland Government on, 29 August 2014.
The scheme—1 December
2014
The amendments—
27 February 2016
10 The Queensland Law Society Professional Standards Scheme,
approved as described in the Professional Standards
(Queensland Law Society Professional Standards Scheme)
Notice 2016 (Qld), 30 June 2016
Note: This Scheme was formerly the Queensland Law Society Scheme, published in the Queensland Government Gazette No. 64, 25 June 2010.
The day the Treasury Laws
Amendment (Professional
Standards Schemes)
Regulations 2017 commence
11 Chartered Accountants Australia and New Zealand
Professional Standards Scheme (WA), including as modified
by amendments published in the Western Australian
Government Gazette No. 135, 1 September 2015
Note: This Scheme was formerly the Institute of Chartered Accountants in Australia Professional Standards Scheme (WA) published in the Western Australian Government Gazette No. 122, 8 August 2014.
The scheme—1 December
2014
The amendments—
27 February 2016
12 The Law Society of Western Australia Scheme, published in
the Western Australian Government Gazette No. 54, 11 April
2014
14 June 2014
13 The Western Australian Bar Association Scheme, published
in the Western Australian Government Gazette No. 57,
14 June 2014
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Part 7.10 Market misconduct and other prohibited conduct relating to financial products and financial
services
Regulation 7.10.03
236 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Prescribed professional standards schemes
Item Column 1
Scheme
Column 2
Date prescribed
17 April 2014
14 Chartered Accountants Australia and New Zealand
Professional Standards Scheme (SA), including as modified
by amendments published in the South Australian
Government Gazette No. 59, 22 October 2015
Note: This Scheme was formerly the Institute of Chartered Accountants in Australia Professional Standards Scheme (SA) published in the South Australian Government Gazette No. 63, 21 August 2014.
The scheme—1 December
2014
The amendments—
27 February 2016
15 The Law Society of South Australia Professional Standards
Scheme, published in the South Australian Government
Gazette No. 76, 3 November 2011, including as modified by
the extension published in the South Australian Government
Gazette No. 41, 14 July 2016
The scheme—1 March 2013
The extension—the day the
Treasury Laws Amendment
(Professional Standards
Schemes) Regulations 2017
commence
16 The South Australian Bar Association Inc Scheme, published
in the South Australian Government Gazette No. 76,
3 November 2011, including as modified by the extension
published in the South Australian Government Gazette
No. 77, 1 December 2016
The scheme—1 March 2013
The extension—the day the
Treasury Laws Amendment
(Professional Standards
Schemes) Regulations 2017
commence
17 Chartered Accountants Australia and New Zealand
Professional Standards Scheme (ACT), including as modified
by amendments notified by the ACT Government on
25 August 2015
Note: This Scheme was formerly the Institute of Chartered Accountants in Australia Professional Standards Scheme (ACT) approved on 14 July 2014.
The scheme—1 December
2014
The amendments—
27 February 2016
18 Chartered Accountants Australia and New Zealand
Professional Standards Scheme (NT), including as modified
by amendments published in the Northern Territory
Government Gazette No. S109, 30 November 2015
Note: This Scheme was formerly the Institute of Chartered Accountants in Australia Professional Standards Scheme (NT) published in the Northern Territory Government Gazette No. S84, 17 September 2014.
The scheme—1 December
2014
The amendments—
27 February 2016
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.
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Preliminary Division 1
Regulation 7.11.01
Corporations Regulations 2001 237
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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Part 7.11 Title and transfer
Division 1 Preliminary
Regulation 7.11.03
238 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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;
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.
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Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 1 Preliminary
Regulation 7.11.05
240 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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.
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Preliminary Division 1
Regulation 7.11.07
Corporations Regulations 2001 241
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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Chapter 7 Financial services and markets
Part 7.11 Title and transfer
Division 2 Application of Part 7.11
Regulation 7.11.09
242 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Division 2—Application of Part 7.11
7.11.09 Application
This Part applies to conduct engaged in in this jurisdiction or otherwise.
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Transfer of Division 3 securities effected otherwise than through a prescribed CS facility Division 3
Regulation 7.11.10
Corporations Regulations 2001 243
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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Part 7.11 Title and transfer
Division 3 Transfer of Division 3 securities effected otherwise than through a prescribed CS facility
Regulation 7.11.13
244 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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:
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Regulation 7.11.17
Corporations Regulations 2001 245
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
(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.
(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
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Division 3 Transfer of Division 3 securities effected otherwise than through a prescribed CS facility
Regulation 7.11.18
246 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
(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.
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Transfer of Division 3 securities effected otherwise than through a prescribed CS facility Division 3
Regulation 7.11.19
Corporations Regulations 2001 247
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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.
(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.
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Part 7.11 Title and transfer
Division 3 Transfer of Division 3 securities effected otherwise than through a prescribed CS facility
Regulation 7.11.21
248 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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Regulation 7.11.23
Corporations Regulations 2001 249
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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:
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Regulation 7.11.27
250 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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 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:
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Regulation 7.11.28
Corporations Regulations 2001 251
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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:
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Division 4 Transfer of Division 4 financial products effected through prescribed CS facility
Regulation 7.11.29
252 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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;
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Regulation 7.11.30
Corporations Regulations 2001 253
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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
(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.
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.
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Regulation 7.11.32
254 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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
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Regulation 7.11.33
Corporations Regulations 2001 255
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
(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.
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Part 7.11 Title and transfer
Division 4 Transfer of Division 4 financial products effected through prescribed CS facility
Regulation 7.11.36
256 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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
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Regulation 7.11.39
Corporations Regulations 2001 257
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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.
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Part 7.11 Title and transfer
Division 5 Offences
Regulation 7.11.40
258 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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:
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Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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
(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.
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Part 7.11 Title and transfer
Division 6 Civil liability
Regulation 7.11.43
260 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Miscellaneous Part 7.12
Regulation 7.12.01
Corporations Regulations 2001 261
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Chapter 8 Mutual recognition of securities offers
Part 8.1 Preliminary
Regulation 8.1.01
262 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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 comprise a foreign recognition scheme.
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, 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.
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.
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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 263
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 an offer of a security is a prescribed offer in
relation to New Zealand if a disclosure document (as defined in the Financial
Markets Conduct Act 2013 of New Zealand) must be prepared in accordance
with:
(a) the Financial Markets Conduct Act 2013 of New Zealand; or
(b) 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 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 paragraph 1200E(a) of the Act, the following statements are prescribed:
(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;
(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;
(c) 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;
(d) 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;
(e) 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;
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Part 8.2 Foreign offers that are recognised in this jurisdiction
Division 1 Recognised offers
Regulation 8.2.03
264 Corporations Regulations 2001
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(f) the taxation treatment of New Zealand securities and financial products is
not the same as that for Australian securities and products;
(g) 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 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
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Foreign offers that are recognised in this jurisdiction Part 8.2
Recognised offers Division 1
Regulation 8.2.04
Corporations Regulations 2001 265
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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
(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
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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
266 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.
Authorised Version F2017C00544 registered 13/07/2017
Prepared by the Office of Parliamentary Counsel, Canberra
Corporations Regulations 2001
Statutory Rules No. 193, 2001
made under the
Corporations Act 2001
Compilation No. 132
Compilation date: 2 July 2017
Includes amendments up to: F2017L00595
Registered: 13 July 2017
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 3–13
Volume 7: Endnotes
Each volume has its own contents
This compilations includes commenced amendments made by F2017L00321
Authorised Version F2017C00544 registered 13/07/2017
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 2 July 2017 (the compilation date).
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 the Legislation Register
(www.legislation.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 the Legislation Register 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.
Editorial changes
For more information about any editorial changes made in this compilation, see 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 the Legislation Register 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.
Authorised Version F2017C00544 registered 13/07/2017
Corporations Regulations 2001 i
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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................................................................................................ 1
Part 9.2—Registration of auditors 5
Division 2—Registration 5
9.2.01 Practical experience in auditing (Act s 1280(2)) ......................................................... 5
9.2.02 Prescribed universities and institutions (Act ss 1280(2A)) ......................................... 5
9.2.03 Prescribed courses (Act s 1280(2A)) .......................................................................... 6
Division 2A—Conditions on registration 8
9.2.08 Kinds of conditions (Act s 1289A) ............................................................................. 8
Part 9.2A—Authorised audit companies 9
Division 1—Registration 9
9.2A.01 Application for registration as authorised audit company
(Act s 1299A).............................................................................................................. 9
9.2A.03 Annual statements by authorised audit company (Act s
1299G) .......................................................................................................................10
Part 9.4—Penalty notice offences and penalties 12 9.4.01 Prescribed offences (Act s 1313) ...............................................................................12
9.4.02 Prescribed penalties (Act s 1313)...............................................................................12
9.4.03 Late payment of review fee—prescribed offence and penalty
(Act s 1313 and 1364)................................................................................................12
Part 9.4A—Register and index 13 9.4A.01 Definitions for Part 9.4A............................................................................................13
9.4A.02 Register and index must be kept up to date:
subsection 1306(4A) of the Act .................................................................................13
Part 9.5—Delegation of powers and functions under the Act 14 9.5.01 Prescribed functions (Law s 1345A(1)) .....................................................................14
Part 9.7—Unclaimed property 15 9.7.01 Entitlement to unclaimed property.............................................................................15
Part 9.12—Matters relating to regulations 16 9.12.01 Exemptions from Chapter 7 .......................................................................................16
9.12.02 Exemption from provisions of Chapter 7—CLS Bank ..............................................16
9.12.03 Partial exemption of foreign-based market licensees from
certain notification obligations...................................................................................17
9.12.04 Exemption from provisions of Chapter 7—compliance with
ASIC exemptions.......................................................................................................18
9.12.04 Exemption from provisions of Chapter 7—carbon unit
auctions......................................................................................................................19
9.12.05 Exemption from provisions of Chapter 7—gas trading
exchange ....................................................................................................................19
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Chapter 10—Repeals, transitional matters and
application provisions 20
Part 10.2—Transitional arrangements relating to Financial
Services Reform legislation 20
Division 1—Preliminary 20
10.2.01 Application of Part 10.2 .............................................................................................20
10.2.02 Definitions .................................................................................................................20
10.2.02AReferences to transition periods .................................................................................20
10.2.02BReferences to the application of Division 2 of Part 7.9 of the
Act .............................................................................................................................20
Division 1A—Treatment of proposed markets that have not
started to operate by the FSR commencement 21
10.2.02CProposed markets .......................................................................................................21
Division 2—Transitional arrangements relating to business rules
or listing rules 22
Subdivision 2.1—Business rules 22
10.2.03 Amendment of business rules of securities exchange before
FSR commencement ..................................................................................................22
10.2.04 Amendment of SCH business rules before FSR
commencement ..........................................................................................................22
10.2.05 Amendment of SEGC business rules before FSR
commencement ..........................................................................................................23
10.2.06 Amendment of business rules of futures body before FSR
commencement ..........................................................................................................24
Subdivision 2.2—Listing rules 24
10.2.07 Amendment of listing rules of securities exchange before
FSR commencement ..................................................................................................24
Division 3—Status of directions and notices 26
10.2.08 Direction to securities exchange to comply with ongoing
requirements ..............................................................................................................26
10.2.09 Notice to securities exchange of need to prohibit trading ..........................................26
10.2.10 Notice to securities exchange prohibiting trading ......................................................26
10.2.11 Direction to futures exchange—orderly market .........................................................26
Division 4—Assistance to ASIC 27
10.2.12 Obligations of securities exchange: disciplinary action .............................................27
10.2.13 Obligations of securities exchange: particulars of
contravention .............................................................................................................27
10.2.14 Obligations of securities exchange: information about listed
disclosing entity .........................................................................................................27
10.2.15 Obligations of securities clearing house: disciplinary action .....................................28
10.2.16 Obligations of futures body: disciplinary action ........................................................28
10.2.17 Obligations of futures body: particulars of contravention ..........................................28
10.2.18 Obligations of clearing house for futures exchange:
information about listed disclosing entity ..................................................................29
Division 5—Special reports 30
10.2.19 Special report by securities exchange about compliance with
ongoing requirements.................................................................................................30
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10.2.20 Special report by securities exchange about compliance with
ongoing requirements: ASIC requirements ................................................................30
Division 5A—Transactions by holder of financial services licence
or a representative of the holder of such a licence 31
10.2.20AReferences to financial service licensee.....................................................................31
Division 5B—Obligation to pay money into account 32
10.2.20BFinancial products quoted on Australian Stock Exchange
Limited.......................................................................................................................32
Division 6—Self-listing 34
10.2.21 Status of arrangements for self-listing .......................................................................34
10.2.22 Status of exemption relating to self-listing.................................................................34
Division 7—Decisions about membership of futures exchange 35
10.2.23 Status of notice to applicant .......................................................................................35
10.2.24 Status of notice to ASIC.............................................................................................35
Division 8—National Guarantee Fund 36
10.2.25 Status of claim against the National Guarantee Fund.................................................36
10.2.26 Entitlement to make claim against the National Guarantee
Fund ...........................................................................................................................36
10.2.27 Status of future claim against the National Guarantee Fund ......................................37
10.2.27AExpenditure of excess funds from National Guarantee Fund .....................................38
Division 9—Claims against fidelity funds 39
10.2.28 Status of claim against fidelity fund...........................................................................39
10.2.29 Entitlement to make claim against fidelity fund.........................................................39
10.2.29AStatus of incomplete claim against fidelity fund ........................................................39
10.2.30 Status of future claim against fidelity fund ................................................................40
Division 10—Status of netting markets 41
10.2.31 Netting markets..........................................................................................................41
10.2.32 Netting market approval granted before the FSR
commencement ..........................................................................................................41
Division 11—Status of listed securities 42
10.2.33 Securities of exempt stock markets ............................................................................42
Division 12—Miscellaneous 43
10.2.34 Preservation of nomination of body corporate as SEGC............................................43
Division 13—Regulated principals 44
10.2.35 Definitions .................................................................................................................44
10.2.35AStreamlined licensing procedure for certain regulated
principals....................................................................................................................45
10.2.36 Persons who are not covered by section 1433 of the Act ...........................................45
10.2.37 Variation of conditions on financial services licence .................................................45
10.2.38 Persons taken to be regulated principals: giving of incidental
advice and previously exempt persons.......................................................................46
10.2.39 Reference to offer covered by Australian financial services
licence: section 911A of the Act ................................................................................51
10.2.40 Reference to financial services licensee: section 911A of the
Act .............................................................................................................................51
10.2.40ANeed for an Australian financial services licence ......................................................52
10.2.41 Reference to second principal: section 911B of the Act.............................................52
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10.2.42 Reference to financial services licensee: section 916D of the
Act .............................................................................................................................52
10.2.43 Status of insurance agent: section 1436A of the Act..................................................52
10.2.44AObligation to cite licence number in documents ........................................................52
10.2.46 When Australian financial services licence may be granted ......................................53
10.2.46AWhen Australian financial services licence may be varied ........................................53
10.2.47 Dispute resolution requirements: no external dispute
resolution scheme ......................................................................................................54
10.2.47AModification of pre-FSR authority.............................................................................54
Division 14—Financial services disclosure 56
10.2.48 Obligation to give Financial Services Guide for service
arranged before application of Part 7.7 of the Act .....................................................56
10.2.48AObligation to give a Financial Services Guide for a custodial
and depository service................................................................................................56
10.2.49 Obligation to give Financial Services Guide in relation to
existing clients ...........................................................................................................57
10.2.50 Content of Financial Services Guide for an authorised
representative that is a regulated principal or a representative
of a regulated principal ..............................................................................................57
10.2.50ATreatment of arrangements under which a person can instruct
another person to acquire a financial product.............................................................58
Division 15—Other provisions relating to conduct etc 59
10.2.51 Sale offers that need disclosure..................................................................................59
10.2.52 Offers that do not need disclosure: small scale offerings ...........................................59
10.2.52AOffers that do not need disclosure..............................................................................59
10.2.53 Money other than loans: financial services licensee who
formerly held dealer’s licence ....................................................................................60
10.2.54 Money other than loans: financial services licensee who
formerly held futures broker’s licence .......................................................................60
10.2.55 Money other than loans: financial services licensee who was
formerly a registered insurance broker.......................................................................61
10.2.56 Money other than loans: financial services licensee who
ceases to be licensed ..................................................................................................62
10.2.57 Loan money: financial services licensee who formerly held
dealer’s licence ..........................................................................................................62
10.2.58 Other property of clients: financial services licensee who
formerly held dealer’s licence ....................................................................................63
10.2.59 Other property of clients: financial services licensee who
formerly held futures broker’s licence .......................................................................63
10.2.60 Special provisions relating to insurance: financial services
licensee who was formerly a registered insurance broker ..........................................63
10.2.61 Obligation to report: financial services licensee who
formerly held a futures broker’s licence.....................................................................64
10.2.62 Reporting in relation to dealings in derivatives: financial
services licensee who formerly held a dealer’s licence ..............................................65
10.2.63 Financial statements of financial services licensee: general.......................................65
10.2.64 Financial statements of financial services licensees who were
certain regulated principals ........................................................................................66
10.2.65 Auditors: certain financial services licensee who formerly
held dealer’s licence...................................................................................................67
10.2.66 Auditors: certain financial services licensees who held a
futures broker’s licence ..............................................................................................68
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10.2.67 Auditor’s report in certain matters: financial services
licensee who formerly held a dealer’s licence............................................................70
10.2.68 Auditor’s report on certain matters: financial services
licensee who formerly held a futures broker’s licence ...............................................70
10.2.69 Auditor’s report on certain matters: financial services
licensee who was formerly a registered insurance broker ..........................................71
10.2.70 Priority to clients’ orders: financial services licensee who
held a dealers licence .................................................................................................71
10.2.71 Sequencing of instructions to deal through licensed markets:
financial services licensee who formerly held a futures
brokers licence ...........................................................................................................71
10.2.72 Records relating to instructions to deal through licensed
markets: financial services licensee who held a futures
brokers licence ...........................................................................................................72
10.2.73 Dealing with non-licensees: financial services licensee who
held a dealers licence .................................................................................................72
10.2.73AAdvertising for financial products .............................................................................73
10.2.73BFreezing accounts ......................................................................................................73
Division 16—Product disclosure provisions for existing products
during transition period 74
10.2.74 Financial products in the same class ..........................................................................74
10.2.75 References to financial services licensee ...................................................................75
10.2.76 References to retail client...........................................................................................76
10.2.77 References to issue of product ...................................................................................76
10.2.78 References to Product Disclosure Statement: offer previously
accepted .....................................................................................................................76
10.2.79 References to Product Disclosure Statement: managed
investment products ...................................................................................................77
10.2.80 Lodgment of Product Disclosure Statement after lodgment of
notice .........................................................................................................................77
10.2.81 Ongoing disclosure ....................................................................................................77
10.2.82 Money received for financial product before the product is
issued: general............................................................................................................77
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 .................................................................78
10.2.84 Confirmation of transactions......................................................................................78
10.2.85 Dispute resolution requirements: financial products ..................................................78
10.2.86 Dispute resolution requirements: regulated principals ...............................................78
10.2.87 Dispute resolution requirements: no external dispute
resolution scheme ......................................................................................................79
10.2.87AMeaning of financial product advice: exempt document or
statement ....................................................................................................................79
Division 17—Arrangements relating to enforcement of matters
by ASIC 80
10.2.88 Definition...................................................................................................................80
10.2.89 Financial services law ................................................................................................80
10.2.90 ASIC may have regard to prior conduct and events ...................................................80
10.2.91 Power to act in relation to relevant old legislation .....................................................81
Division 18—Specific kinds of documents in existence before
FSR commencement 82
10.2.92 Banning orders made before FSR commencement ....................................................82
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10.2.93 Banning orders made under relevant old legislation after
FSR commencement ..................................................................................................82
10.2.94 Banning orders made under the Act after FSR
commencement ..........................................................................................................83
10.2.94AProhibitions under paragraphs 827(1)(d) and 1192(1)(d) of
the old Corporations Act made before FSR commencement .....................................84
10.2.94BProhibitions under paragraphs 827(1)(d) and 1192(1)(d) of
the old Corporations Act made after FSR commencement ........................................84
10.2.95 Undertakings..............................................................................................................85
10.2.96 Registers in existence before FSR commencement....................................................85
10.2.97 Registers created after FSR commencement..............................................................86
10.2.98 Registers, documents and things kept before FSR
commencement ..........................................................................................................86
10.2.98ALicenses, registration, etc in force before FSR
commencement ..........................................................................................................86
Division 19—Extension of limitation periods 88
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 ...........................................................................................................................88
Division 20—Rules for dealing with liability during transition
period 89
10.2.100 Application of Division 20.........................................................................................89
10.2.101 Definitions for Division 20 ........................................................................................89
10.2.102 Liability of responsible person: general rules ............................................................90
10.2.103 Conduct by a person who operates as representative and
principal .....................................................................................................................91
10.2.104 Operation of regulations 10.2.102 and 10.2.103 ........................................................92
Division 21—Title and transfer 93
10.2.105 Loss or destruction of certificates ..............................................................................93
10.2.106 Instrument of transfer.................................................................................................93
10.2.107 Trustee etc may be registered as owner of shares ......................................................93
10.2.108 Registration of transfer at request of transferor..........................................................94
10.2.109 Notice of refusal to register transfer...........................................................................94
10.2.110 Duties of company with respect to issue of certificates:
allotment of shares or debentures or making interests
available.....................................................................................................................94
10.2.111 Duties of company with respect to issue of certificates:
transfer of shares, debentures or interests ..................................................................95
10.2.112 Notices relating to non-beneficial and beneficial ownership
of shares .....................................................................................................................96
10.2.113 What is a sufficient transfer of marketable securities or
marketable rights: general ..........................................................................................96
10.2.114 Sufficient transfer by authorised trustee corporation .................................................97
10.2.115 Determination of who holds quoted securities for the
purposes of a meeting: determination made before FSR
commencement ..........................................................................................................97
Division 22—Transitional matters under relevant old legislation:
Financial Transaction Reports Act 1988 98
10.2.116 Cash dealer.................................................................................................................98
10.2.117 Exempt cash transaction.............................................................................................98
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Division 23—Transitional matters under relevant old legislation:
Income Tax Assessment Act 1936 99
10.2.118 Offshore banking units...............................................................................................99
Division 24—Transitional matters under relevant old legislation:
Insurance Act 1973 100
10.2.119 Insurers carrying on class of insurance business......................................................100
Division 24A—Transitional matters under relevant old
legislation: Insurance (Agents and Brokers) Act
1984 101
10.2.119A ................................................................ Debts of broker in relation to premiums etc 101
10.2.119B....................................................Disqualifications made before FSR commencement 101
10.2.119C.......................................................Disqualifications made after FSR commencement 101
Division 25—Transitional matters under relevant old legislation:
Marine Insurance Act 1909 103
10.2.120 Marine policy effected through broker.....................................................................103
Division 25A—Transitional matters under relevant old
legislation: Retirement Savings Accounts
Regulations 1997 104
10.2.120A .........................................Continuation of RSA Regulations during transition period 104
Division 25B—Transitional matters under relevant old
legislation: Superannuation Industry (Supervision)
Regulations 1994 105
10.2.120B............................................Continuation of SIS Regulations during transition period 105
Division 26—Transitional matters under relevant old legislation:
Superannuation (Resolution of Complaints) Act
1993 106
10.2.121 Life insurance broker ...............................................................................................106
Division 27—Transitional matters under the Act (other than
Chapter 7) 107
10.2.122 Solvency and insolvency..........................................................................................107
10.2.123 Managed investment products held by 100 or more persons ...................................107
10.2.124 When a managed investment scheme must be registered.........................................107
10.2.125 Responsible entity to be a public company and hold an
Australian financial services licence ........................................................................107
10.2.126 Duties of officers of responsible entity ....................................................................108
10.2.127 Voidable contracts ...................................................................................................108
10.2.128 Situations not giving rise to relevant interests..........................................................108
10.2.129 Bidder’s statement content.......................................................................................109
10.2.130 Continuous disclosure: other disclosing entities ......................................................109
10.2.131 Sale offers that need disclosure: securities issued before FSR
commencement ........................................................................................................109
10.2.132 Offers that do not need disclosure: offer to sophisticated
investor through licensed dealer...............................................................................109
10.2.133 Prospectus content: general disclosure test ..............................................................110
10.2.134 Prospectus content—specific disclosures.................................................................110
10.2.135 Registers ..................................................................................................................110
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Division 27A—Transitional matters under other legislation 111
10.2.135A ..................................................... References to authorised foreign exchange dealers 111
Division 28—Retail clients and wholesale clients 112
10.2.136 Securities before the FSR commencement...............................................................112
10.2.137 Incomplete financial services ...................................................................................112
10.2.138 Professional investors ..............................................................................................113
Division 29—Effect on definitions in old Corporations Act of
transition to licensed markets and licensed CS
facilities 115
10.2.139 Approved foreign bank ............................................................................................115
10.2.140 Eligible exchange-traded options.............................................................................115
10.2.141 Futures law...............................................................................................................115
10.2.142 Member organisation ...............................................................................................115
10.2.143 Non-broker...............................................................................................................116
10.2.144 Non-dealer ...............................................................................................................116
10.2.145 Securities law...........................................................................................................116
10.2.146 Marketable parcel.....................................................................................................117
Division 30—Effect on certain conduct of transition to licensed
markets and licensed CS facilities 118
10.2.147 Own account dealings and transactions: futures contracts .......................................118
10.2.148 Conditions of dealers licence ...................................................................................118
10.2.149 Persons who are not clients......................................................................................118
10.2.150 Dealings and transactions on a dealer’s own account ..............................................118
10.2.151 Dealer to give priority to clients’ orders ..................................................................118
10.2.152 Dealers’ financial records ........................................................................................119
10.2.153 Auditor to report to ASIC on certain matters ...........................................................119
10.2.154 Qualified privilege for auditor .................................................................................119
10.2.155 Court may freeze certain bank accounts of dealers and
former dealers ..........................................................................................................119
10.2.156 Interpretation—registers ..........................................................................................119
10.2.157 Conditions of futures broker’s licence: membership of
futures organisation..................................................................................................120
10.2.158 Futures organisation to be informed about conditions of
futures brokers licence .............................................................................................120
10.2.159 Licensee to notify breach of licence condition.........................................................121
10.2.160 Register of Futures Licensees ..................................................................................121
10.2.161 Excluded clients.......................................................................................................121
10.2.162 Segregation of client money and property ...............................................................121
10.2.163 Accounts to be kept by futures brokers ....................................................................122
10.2.164 Property in custody of futures broker.......................................................................122
10.2.165 Auditor to report to ASIC in certain cases ...............................................................122
10.2.166 Defamation ..............................................................................................................123
10.2.167 Power of Court to restrain dealings with futures broker’s
bank accounts...........................................................................................................123
10.2.168 Power of Court to restrain dealings with futures broker’s
bank accounts...........................................................................................................123
10.2.169 Sequence of transmission and execution of orders...................................................123
10.2.170 Dealings by employees of futures brokers and futures
advisers ....................................................................................................................124
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Division 31—Effect on fundraising of transition to licensed
markets and licensed CS facilities 125
10.2.171 Sale offers that need disclosure................................................................................125
10.2.172 Prospectus content—specific disclosures.................................................................125
10.2.173 Issuing or transferring the securities under a disclosure
document..................................................................................................................125
10.2.174 Choices open to person making an offer if disclosure
document condition not met or disclosure document
defective...................................................................................................................125
10.2.175 Restrictions on advertising and publicity .................................................................126
Division 32—Effect on product disclosure of transition to
licensed markets and licensed CS facilities 127
10.2.176 Offers that do not need disclosure............................................................................127
10.2.177 Prospectus content—general disclosure test ............................................................127
10.2.178 Prospectus content—specific disclosures.................................................................127
10.2.179 Futures broker to give certain information to prospective
client ........................................................................................................................127
Division 33—Effect on Corporations Regulations 2001 of
transition of financial service providers and
transition to licensed markets and licensed CS
facilities 128
10.2.180 Licence conditions—investment advice to retail investors ......................................128
10.2.181 Exemption from licensing—certain dealings ...........................................................128
10.2.182 Exemption from licensing—managed investment schemes .....................................128
10.2.183 Exempt dealer ..........................................................................................................128
10.2.184 Exempt securities and interests ................................................................................128
10.2.185 Transactions in prescribed circumstances ................................................................129
10.2.186 Exempted transaction...............................................................................................129
10.2.187 Charging brokerage on principal transactions..........................................................129
10.2.188 Exemption from subsection 844(2) of old Corporations Act ...................................129
10.2.189 Exemption: Part 8.3 of old Corporations Act—certain futures
contracts...................................................................................................................129
10.2.190 Exemption of certain transactions from subsection 1206(1)
of old Corporations Act ...........................................................................................130
10.2.191 Exemption of certain transactions from subsection 1207(1)
of the old Corporations Act......................................................................................130
10.2.192 Which futures broker to comply with subsection 1207(1) of
old Corporations Act in relation to certain transactions ...........................................131
10.2.193 Exemption of certain transactions from paragraphs
1207(1)(g) and (h) of old Corporations Act .............................................................131
Division 34—Effect on certain instruments of transition of
financial service providers and transition to licensed
markets and licensed CS facilities 132
10.2.194 References to certain matters ...................................................................................132
Division 35—Streamlined licensing 134
10.2.195 Suspension or cancellation of streamlined licence ...................................................134
Division 36—Insurance multi-agents 135
10.2.196 Application by holder of qualified licence ...............................................................135
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Division 37—Hawking of managed investment products 136
10.2.197 Hawking interest in managed investment scheme....................................................136
10.2.198 Hawking financial product—other arrangements ....................................................136
Division 38—Security bonds issued before FSR commencement 137
10.2.199 Security bonds..........................................................................................................137
Division 39—Disclosure documents 138
10.2.200 Disclosure documents—cooling-off period .............................................................138
Division 40—Telephone monitoring during takeovers 139
10.2.201 Telephone monitoring..............................................................................................139
10.2.201A ................................................................... References to financial services licensees 139
Division 41—Requirements if Product Disclosure Statement is
not in existence 140
10.2.202 Documents equivalent to Product Disclosure Statement..........................................140
Division 42—Dealing with money received for financial product
before the product is issued 141
10.2.203 Payment of money into account ...............................................................................141
Division 43—Arrangements related to deposits with stock
exchanges 142
10.2.204 Withdrawals from trust account ...............................................................................142
Division 44—Superannuation to which arrangements apply
under the Family Law Act 1975 143
10.2.205 Application of amendments .....................................................................................143
Division 45—Arrangements relating to certain reporting periods 144
10.2.206 Fund information for retail clients for financial products that
have an investment component: superannuation ......................................................144
10.2.207 Periodic statements for retail clients for financial products
that have an investment component .........................................................................144
Division 46—Arrangements relating to passbook accounts 145
10.2.208 Periodic statements ..................................................................................................145
10.2.209 Confirmation of transactions....................................................................................145
Division 47—Agreements with unlicensed persons relating to the
provision of financial services 146
10.2.210 Agreements ..............................................................................................................146
Division 48—Arrangements for Lloyd’s 147
10.2.211 Lloyd’s .....................................................................................................................147
Division 49—Hawking of certain financial products 148
10.2.212 Hawking of managed investment products ..............................................................148
Division 50—Warrants or options to acquire issued securities 149
10.2.213 Warrants or options to acquire issued securities ......................................................149
Division 52—Winding up of fidelity funds if market ceases to
operate 150
10.2.215 Winding up of fidelity funds if market ceases to operate.........................................150
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Part 10.5—Transitional provisions relating to the Corporate
Law Economic Reform Program (Audit Reform and
Corporate Disclosure) Act 2004 151 10.5.01 Adoption of auditing standards made by accounting
profession before commencement (Act ss 1455(1) and (3)) ....................................151
Part 10.15—Transitional provisions relating to the
Corporations Amendment (Financial Market
Supervision) Act 2010 154 10.15.01 Application of Part 10.15 .........................................................................................154
10.15.02 Amendments not to apply to certain operators of licensed
markets.....................................................................................................................154
10.15.03 Transfer of documents .............................................................................................154
10.15.04 Notifications, consents, waivers, etc ........................................................................155
10.15.05 Notification given by participant to operator of licensed
market ......................................................................................................................155
10.15.06 Registers ..................................................................................................................156
Part 10.18—Transitional provisions relating to Corporations
Amendment (Further Future of Financial Advice
Measures) Act 2012 157
Part 10.19—Transitional matters relating to MySuper
measures 158 10.19.01 Changes to product disclosure statements and periodic
statements ................................................................................................................158
Part 10.21—Application provisions relating to the
Corporations Amendment (Central Clearing and
Single-Sided Reporting) Regulation 2015 159 10.21.01 First application of 7.5A.73—existing phase 3 reporting
entities......................................................................................................................159
Part 10.22—Application provisions related to the Corporations
Amendment (Financial Services Information
Lodgement Periods) Regulation 2015 160 10.22.01 Application of amendment of paragraph 7.6.04(1)(c)..............................................160
10.22.02 Application of modification of subsections 916F(1) and (3)....................................160
Part 10.23—Application provisions relating to the
Corporations Amendment (Remuneration Disclosures)
Regulation 2016 161 10.23.01 Application—remuneration disclosures ...................................................................161
Part 10.24—Application provisions relating to the Financial
Services Legislation Amendment (Wholesale
Margining) Regulation 2016 162 10.24.01 Application of regulations 7.8.01A and 7.8.06B......................................................162
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Part 10.25—Transition to Part 3 of the Insolvency Practice
Schedule (Corporations) 163 10.25.01 Transition to Part 3 of the Insolvency Practice Schedule
(Corporations)..........................................................................................................163
10.25.02 Application of certain amendments relating to the enactment
of the Insolvency Practice Schedule (Corporations) ................................................163
Part 10.25—Application provisions relating to the Treasury
Laws Amendment (Fair and Sustainable
Superannuation) Regulations 2017 165 10.25.01 Application of amendment of subregulation 7.9.04(1).............................................165
Chapter 12—Financial sector reform 166
Part 12.1—Preliminary 166 12.1.01 Definitions for Chapter 12 .......................................................................................166
12.1.02 Application of this Chapter to previous governing Codes etc ..................................166
12.1.03 Interpretation of applied provisions .........................................................................167
Part 12.2—Transitional matters—general 169
Division 2—Other matters 169
12.2.08 Lodgment of certain documents with ASIC.............................................................169
12.2.10 Certain appointments of auditors continue...............................................................169
12.2.12 Converted shares......................................................................................................169
Part 12.4—Notice of meetings of certain bodies corporate 170 12.4.01 Application of Part...................................................................................................170
12.4.02 Modification of certain provisions of Act ................................................................170
12.4.03 Members etc may elect to be notified of meetings...................................................170
12.4.04 Notice of meetings to be published in press.............................................................171
12.4.05 Copies of notices to be displayed.............................................................................172
12.4.06 Members may request notice of meetings at any time .............................................172
12.4.07 Records to be kept about notices..............................................................................172
Part 12.5—Determinations and declarations in relation to
certain instruments 173 12.5.01 Definition for Part 12.5 ............................................................................................173
12.5.02 Application, variation, revocation and modification ................................................173
12.5.03 Effect of determinations and declarations ................................................................174
12.5.04 Publication of determinations and declarations........................................................174
12.5.05 When determinations and declarations take effect ...................................................174
12.5.06 Inspection and purchase of copies of instruments ....................................................174
Part 12.6—Financial reporting by certain bodies corporate 175 12.6.01 Application of Part...................................................................................................175
12.06.01A ...........................................................................................Annual financial reporting 175
12.6.02 Modification of certain provisions of Act ................................................................175
12.6.03 Members etc may elect to receive reports ................................................................175
12.6.04 Copies of reports to be available to members ..........................................................176
12.6.05 Records to be kept about notices..............................................................................176
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Part 12.7—Other disclosure 177
Division 1—Preliminary 177
12.7.01 Definitions for Part 12.7...........................................................................................177
12.7.02 Declarations by ASIC ..............................................................................................177
Division 2—Continued application of certain provisions 178
12.7.03 Continuation of certain provisions of previous governing
Codes .......................................................................................................................178
12.7.04 Continuation of ASIC transitional standards............................................................178
12.7.05 Exemption from, and modification of, certain provisions ........................................179
12.7.06 Certain provisions of the Friendly Societies Code cease to
apply to FSR licensee...............................................................................................179
Part 12.8—Shares in certain bodies corporate 180
Division 1—Preliminary 180
12.8.02 Application of Part 12.8 ...........................................................................................180
12.8.03 What is a member share ...........................................................................................180
12.8.04 Declarations by ASIC ..............................................................................................180
Division 2—Member shares 182
12.8.05 Notice requirements .................................................................................................182
12.8.06 Registers of members...............................................................................................182
12.8.06AMember shares—liability to pay calls......................................................................183
12.8.07 Disclosure in annual returns.....................................................................................183
12.8.08 Member shares—numbering and certificates ...........................................................184
12.8.09 Member shares—unclaimed property ......................................................................184
Division 3—Certain shares in transferring building societies and
credit unions 185
12.8.10 Definitions for Division 3 ........................................................................................185
12.8.11 Transferring building societies may issue shares equivalent
to membership shares...............................................................................................185
12.8.12 Transferring credit unions may issue shares equivalent to
withdrawable shares.................................................................................................185
Part 12.9—Winding up and deregistration of certain
transferring financial institutions 187 12.9.01 Application of Part 12.9 ...........................................................................................187
12.9.02 Winding up ..............................................................................................................187
12.9.03 Deregistration...........................................................................................................187
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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;
(m) the register in respect of financial services licensees mentioned in
subsection 922A(2) of the Act;
(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 maintained under section 922Q of the
Act.
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;
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(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;
(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;
(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;
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(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;
(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;
(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:
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(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;
(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 910A of the Act):
(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.
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Part 9.2—Registration of auditors
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))
For paragraph 1280(2A)(a) 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
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
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Part 1 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
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
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(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:
(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.
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Chapter 9 Miscellaneous
Part 9.2 Registration of auditors
Division 2A Conditions on registration
Regulation 9.2.08
8 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Miscellaneous Chapter 9
Authorised audit companies Part 9.2A
Registration Division 1
Regulation 9.2A.01
Corporations Regulations 2001 9
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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 a Chapter 5 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.
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Chapter 9 Miscellaneous
Part 9.2A Authorised audit companies
Division 1 Registration
Regulation 9.2A.03
10 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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
(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.
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Authorised audit companies Part 9.2A
Registration Division 1
Regulation 9.2A.03
Corporations Regulations 2001 11
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(2) In this regulation:
relevant period means the period of 12 months to which the statement relates
under subsection 1299G(1) of the Act.
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Chapter 9 Miscellaneous
Part 9.4 Penalty notice offences and penalties
Regulation 9.4.01
12 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(3) In this regulation:
review fee means a fee imposed by section 5 of the Corporations (Review Fees)
Act 2003.
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Miscellaneous Chapter 9
Register and index Part 9.4A
Regulation 9.4A.01
Corporations Regulations 2001 13
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Chapter 9 Miscellaneous
Part 9.5 Delegation of powers and functions under the Act
Regulation 9.5.01
14 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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).
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Unclaimed property Part 9.7
Regulation 9.7.01
Corporations Regulations 2001 15
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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%.
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Chapter 9 Miscellaneous
Part 9.12 Matters relating to regulations
Regulation 9.12.01
16 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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
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Regulation 9.12.03
Corporations Regulations 2001 17
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(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
(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
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Chapter 9 Miscellaneous
Part 9.12 Matters relating to regulations
Regulation 9.12.04
18 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(ii) a client, of a participant in the market, whom the market licensee
believes to be in this jurisdiction.
(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).
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].
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Regulation 9.12.04
Corporations Regulations 2001 19
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(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.
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.
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Chapter 10 Repeals, transitional matters and application provisions
Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 1 Preliminary
Regulation 10.2.01
20 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Chapter 10—Repeals, transitional matters and
application provisions
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.
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.
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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 21
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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.
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Chapter 10 Repeals, transitional matters and application provisions
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
22 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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
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Transitional arrangements relating to Financial Services Reform legislation Part 10.2
Transitional arrangements relating to business rules or listing rules Division 2
Regulation 10.2.05
Corporations Regulations 2001 23
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(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
(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
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Division 2 Transitional arrangements relating to business rules or listing rules
Regulation 10.2.06
24 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(b) ASIC is taken to have complied with its obligations to the Minister under
section 890H 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 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
(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
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(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
(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.
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Division 3 Status of directions and notices
Regulation 10.2.08
26 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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.
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Regulation 10.2.12
Corporations Regulations 2001 27
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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.
(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.
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Regulation 10.2.15
28 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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
(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
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Regulation 10.2.18
Corporations Regulations 2001 29
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(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.
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Division 5 Special reports
Regulation 10.2.19
30 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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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 31
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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.
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Division 5B Obligation to pay money into account
Regulation 10.2.20B
32 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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
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Regulation 10.2.20B
Corporations Regulations 2001 33
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(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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Division 6 Self-listing
Regulation 10.2.21
34 Corporations Regulations 2001
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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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Decisions about membership of futures exchange Division 7
Regulation 10.2.23
Corporations Regulations 2001 35
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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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Division 8 National Guarantee Fund
Regulation 10.2.25
36 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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Regulation 10.2.27
Corporations Regulations 2001 37
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(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.
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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Division 8 National Guarantee Fund
Regulation 10.2.27A
38 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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).
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Claims against fidelity funds Division 9
Regulation 10.2.28
Corporations Regulations 2001 39
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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 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:
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Regulation 10.2.30
40 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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 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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Status of netting markets Division 10
Regulation 10.2.31
Corporations Regulations 2001 41
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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
(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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Division 11 Status of listed securities
Regulation 10.2.33
42 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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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Miscellaneous Division 12
Regulation 10.2.34
Corporations Regulations 2001 43
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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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Division 13 Regulated principals
Regulation 10.2.35
44 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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;
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(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).
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 11 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 subject to
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Regulation 10.2.38
46 Corporations Regulations 2001
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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.
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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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.
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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Regulation 10.2.38
48 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
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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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
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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Regulation 10.2.38
50 Corporations Regulations 2001
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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)
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
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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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.
(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).
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Regulation 10.2.40A
52 Corporations Regulations 2001
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(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.
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:
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(a) a person who has not been granted a financial services licence prepares any
document in connection with the 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 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
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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:
(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:
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(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.
(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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Regulation 10.2.48
56 Corporations Regulations 2001
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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.
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
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(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.
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
(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:
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(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
(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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Regulation 10.2.51
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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.
(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)).
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Regulation 10.2.53
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(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.
(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:
(i) the payment of interest, dividends or other income from the
investment of money mentioned in paragraph (1)(a); or
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(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 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).
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(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).
(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:
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(a) the person in the capacity of a regulated principal of that kind; and
(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
(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
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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:
(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:
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(a) money that is held by the licensee in an account maintained under
section 1209 of the old Corporations Act; and
(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
(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.
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66 Corporations Regulations 2001
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(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;
(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.
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(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:
(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.
(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.
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Regulation 10.2.66
68 Corporations Regulations 2001
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(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 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.
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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 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 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.
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Regulation 10.2.67
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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 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
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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 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;
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Regulation 10.2.72
72 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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.
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(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 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.
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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Division 16 Product disclosure provisions for existing products during transition period
Regulation 10.2.74
74 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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.
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Regulation 10.2.75
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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.
(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.
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Division 16 Product disclosure provisions for existing products during transition period
Regulation 10.2.76
76 Corporations Regulations 2001
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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.
(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.
(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.
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Regulation 10.2.79
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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 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;
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Regulation 10.2.83
78 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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 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.
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Regulation 10.2.87
Corporations Regulations 2001 79
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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.
(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.
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Division 17 Arrangements relating to enforcement of matters by ASIC
Regulation 10.2.88
80 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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
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Regulation 10.2.91
Corporations Regulations 2001 81
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(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.
(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.
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Division 18 Specific kinds of documents in existence before FSR commencement
Regulation 10.2.92
82 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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Regulation 10.2.94
Corporations Regulations 2001 83
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(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.
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.
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Regulation 10.2.94A
84 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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.
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Regulation 10.2.95
Corporations Regulations 2001 85
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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.
(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
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Regulation 10.2.97
86 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
(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
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Regulation 10.2.98A
Corporations Regulations 2001 87
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(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:
(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.
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Division 19 Extension of limitation periods
Regulation 10.2.99
88 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Regulation 10.2.100
Corporations Regulations 2001 89
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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.
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.
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Division 20 Rules for dealing with liability during transition period
Regulation 10.2.102
90 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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:
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(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
(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 $Y.
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Division 20 Rules for dealing with liability during transition period
Regulation 10.2.104
92 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
10.2.104 Operation of regulations 10.2.102 and 10.2.103
(1) Subject to subregulations (2) and (3), and without limiting any right or liability
of a person (the client), if the effect of regulations 10.2.102 and 10.2.103 is that
different rights or remedies are available to different clients in relation to conduct
during the transition period:
(a) to the extent that the rights or remedies available to a client against a
responsible person are identical, or substantially identical, to some or all of
the rights or remedies available against another responsible person for the
same or related conduct, each responsible person is taken to be jointly and
severally liable as between the responsible person and the client in respect
of the client’s exercise of the right, or in respect of the provision of the
remedy, to the extent that the law makes them liable; and
(b) to the extent that the rights or remedies available to a client against
different responsible persons in respect of conduct are not identical or
substantially identical, a client who may exercise a right or obtain a remedy
against a responsible person is entitled to exercise the right or obtain the
remedy:
(i) under each law applicable at the time the conduct is engaged in; and
(ii) against each responsible person against whom the right may be
exercised or the remedy obtained.
Example: If, as a result of the same conduct, Person A is liable to a client in respect of an amount
of money ($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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Regulation 10.2.105
Corporations Regulations 2001 93
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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.
(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
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Regulation 10.2.108
94 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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:
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(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
(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
(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
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Regulation 10.2.112
96 Corporations Regulations 2001
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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.
(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
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(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.
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.
(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.
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Division 22 Transitional matters under relevant old legislation: Financial Transaction Reports Act
1988
Regulation 10.2.116
98 Corporations Regulations 2001
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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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Transitional matters under relevant old legislation: Income Tax Assessment Act 1936 Division 23
Regulation 10.2.118
Corporations Regulations 2001 99
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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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Division 24 Transitional matters under relevant old legislation: Insurance Act 1973
Regulation 10.2.119
100 Corporations Regulations 2001
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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.
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24A
Regulation 10.2.119A
Corporations Regulations 2001 101
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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 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:
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1984
Regulation 10.2.119C
102 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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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Transitional matters under relevant old legislation: Marine Insurance Act 1909 Division 25
Regulation 10.2.120
Corporations Regulations 2001 103
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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.
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Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 25A Transitional matters under relevant old legislation: Retirement Savings Accounts
Regulations 1997
Regulation 10.2.120A
104 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Transitional matters under relevant old legislation: Superannuation Industry (Supervision) Regulations
1994 Division 25B
Regulation 10.2.120B
Corporations Regulations 2001 105
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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.
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Division 26 Transitional matters under relevant old legislation: Superannuation (Resolution of
Complaints) Act 1993
Regulation 10.2.121
106 Corporations Regulations 2001
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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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Transitional matters under the Act (other than Chapter 7) Division 27
Regulation 10.2.122
Corporations Regulations 2001 107
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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.
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.
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Division 27 Transitional matters under the Act (other than Chapter 7)
Regulation 10.2.126
108 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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.
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Transitional matters under the Act (other than Chapter 7) Division 27
Regulation 10.2.129
Corporations Regulations 2001 109
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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
(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.
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.
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Division 27 Transitional matters under the Act (other than Chapter 7)
Regulation 10.2.133
110 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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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Transitional matters under other legislation Division 27A
Regulation 10.2.135A
Corporations Regulations 2001 111
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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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Division 28 Retail clients and wholesale clients
Regulation 10.2.136
112 Corporations Regulations 2001
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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.
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:
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Retail clients and wholesale clients Division 28
Regulation 10.2.138
Corporations Regulations 2001 113
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(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:
(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:
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Regulation 10.2.138
114 Corporations Regulations 2001
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(a) the end of the transition period in relation to the person under
subsection 1431(1) of the Act; and
(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.
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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 115
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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.
(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
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Regulation 10.2.143
116 Corporations Regulations 2001
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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.
(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.
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Division 29
Regulation 10.2.146
Corporations Regulations 2001 117
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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.
(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.
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Division 30 Effect on certain conduct of transition to licensed markets and licensed CS facilities
Regulation 10.2.147
118 Corporations Regulations 2001
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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
(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.
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Regulation 10.2.152
Corporations Regulations 2001 119
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(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.
(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.
(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.
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Regulation 10.2.157
120 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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 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
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Regulation 10.2.159
Corporations Regulations 2001 121
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
(4) A reference in subsection 1209(5B) of the old Corporations Act to the brokers
concerned includes a financial services licensee.
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Regulation 10.2.163
122 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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
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Regulation 10.2.166
Corporations Regulations 2001 123
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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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Regulation 10.2.170
124 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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Regulation 10.2.171
Corporations Regulations 2001 125
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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).
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).
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Division 31 Effect on fundraising of transition to licensed markets and licensed CS facilities
Regulation 10.2.175
126 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Regulation 10.2.176
Corporations Regulations 2001 127
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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Regulation 10.2.180
128 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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Regulation 10.2.185
Corporations Regulations 2001 129
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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Regulation 10.2.190
130 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
(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.
(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.
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Regulation 10.2.192
Corporations Regulations 2001 131
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Regulation 10.2.194
132 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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.
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Regulation 10.2.194
Corporations Regulations 2001 133
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 35 Streamlined licensing
Regulation 10.2.195
134 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Insurance multi-agents Division 36
Regulation 10.2.196
Corporations Regulations 2001 135
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 37 Hawking of managed investment products
Regulation 10.2.197
136 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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.
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Security bonds issued before FSR commencement Division 38
Regulation 10.2.199
Corporations Regulations 2001 137
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Division 39 Disclosure documents
Regulation 10.2.200
138 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Telephone monitoring during takeovers Division 40
Regulation 10.2.201
Corporations Regulations 2001 139
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Division 41 Requirements if Product Disclosure Statement is not in existence
Regulation 10.2.202
140 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Dealing with money received for financial product before the product is issued Division 42
Regulation 10.2.203
Corporations Regulations 2001 141
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 43 Arrangements related to deposits with stock exchanges
Regulation 10.2.204
142 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Superannuation to which arrangements apply under the Family Law Act 1975 Division 44
Regulation 10.2.205
Corporations Regulations 2001 143
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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.
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Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 45 Arrangements relating to certain reporting periods
Regulation 10.2.206
144 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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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 145
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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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
146 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Arrangements for Lloyd’s Division 48
Regulation 10.2.211
Corporations Regulations 2001 147
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Part 10.2 Transitional arrangements relating to Financial Services Reform legislation
Division 49 Hawking of certain financial products
Regulation 10.2.212
148 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Warrants or options to acquire issued securities Division 50
Regulation 10.2.213
Corporations Regulations 2001 149
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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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
150 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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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 151
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
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.
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Reform and Corporate Disclosure) Act 2004
Regulation 10.5.01
152 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Item AUS
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Title
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
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
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Regulation 10.5.01
Corporations Regulations 2001 153
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Item AUS
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Title
Note: This standard was issued in February 2004.
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.
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Part 10.15 Transitional provisions relating to the Corporations Amendment (Financial Market
Supervision) Act 2010
Regulation 10.15.01
154 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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
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Transitional provisions relating to the Corporations Amendment (Financial Market Supervision) Act
2010 Part 10.15
Regulation 10.15.04
Corporations Regulations 2001 155
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
(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
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Part 10.15 Transitional provisions relating to the Corporations Amendment (Financial Market
Supervision) Act 2010
Regulation 10.15.06
156 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(b) determine, in writing, that the notification or certification 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.
10.15.06 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.
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Measures) Act 2012 Part 10.18
Corporations Regulations 2001 157
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Part 10.18—Transitional provisions relating to Corporations
Amendment (Further Future of Financial Advice
Measures) Act 2012
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Part 10.19 Transitional matters relating to MySuper measures
Regulation 10.19.01
158 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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.
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Application provisions relating to the Corporations Amendment (Central Clearing and Single-Sided
Reporting) Regulation 2015 Part 10.21
Regulation 10.21.01
Corporations Regulations 2001 159
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Part 10.21—Application provisions relating to the
Corporations Amendment (Central Clearing and
Single-Sided Reporting) Regulation 2015
10.21.01 First application of 7.5A.73—existing phase 3 reporting entities
Main rule
(1) Subject to subregulations (2) and (3), for the purposes of regulations 7.5A.71 and
7.5A.72, regulation 7.5A.73 first applies to an entity that was a phase 3 reporting
entity on 30 September 2015, in relation to an OTC derivative transaction or an
OTC derivative position, at all times during a period:
(a) starting on 1 October 2015; and
(b) ending at the end of the quarter day that next follows 2 successive
disqualifying quarter days for the entity, counting disqualifying quarter
days on or after 30 June 2015.
Entities with disqualifying quarter days on 31 March 2015 and 30 June 2015
(2) Subregulation (3) applies in relation to an entity that was a phase 3 reporting
entity on 30 September 2015, if:
(a) the entity became a phase 3 reporting entity on or before 31 March 2015;
and
(b) 31 March 2015 and 30 June 2015 were disqualifying quarter days for the
entity.
(3) For the purposes of regulations 7.5A.71 and 7.5A.72, regulation 7.5A.73 first
applies to the entity, in relation to an OTC derivative transaction or an OTC
derivative position, at all times during a period:
(a) starting on the day after the quarter day that next follows 2 successive
qualifying quarter days for the entity, counting qualifying quarter days on
or after 30 September 2015; and
(b) ending at the end of the quarter day that next follows 2 successive
disqualifying quarter days for the entity.
Interpretation
(4) A term used in this regulation has the same meaning as in regulation 7.5A.73.
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Part 10.22 Application provisions related to the Corporations Amendment (Financial Services
Information Lodgement Periods) Regulation 2015
Regulation 10.22.01
160 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Part 10.22—Application provisions related to the
Corporations Amendment (Financial Services
Information Lodgement Periods) Regulation 2015
10.22.01 Application of amendment of paragraph 7.6.04(1)(c)
Paragraph 7.6.04(1)(c), as amended by the Corporations Amendment (Financial
Services Information Lodgement Periods) Regulation 2015, applies in relation to:
(a) an Australian financial services licence granted before, on or after the
commencement of that regulation; and
(b) a change mentioned in paragraph 7.6.04(1)(c) that occurs on or after
19 August 2015.
10.22.02 Application of modification of subsections 916F(1) and (3)
(1) Subsection 916F(1) of the Act, as modified by the Corporations Amendment
(Financial Services Information Lodgement Periods) Regulation 2015, applies in
relation to an authorisation of a representative to provide a financial service as
mentioned in section 916A or 916B of the Act if the authorisation occurs on or
after 19 August 2015.
(2) Subsection 916F(3) of the Act, as modified by the Corporations Amendment
(Financial Services Information Lodgement Periods) Regulation 2015, applies in
relation to each of the following events, if the event occurs on or after 19 August
2015:
(a) a change in any details relating to the representative that are required to be
included in a notice under subsection 916F(2) of the Act;
(b) the revocation of an authorisation to which subsection 916F(1) of the Act
applied.
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Application provisions relating to the Corporations Amendment (Remuneration Disclosures)
Regulation 2016 Part 10.23
Regulation 10.23.01
Corporations Regulations 2001 161
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Part 10.23—Application provisions relating to the
Corporations Amendment (Remuneration
Disclosures) Regulation 2016
10.23.01 Application—remuneration disclosures
The amendments made by items 1 to 6 of Schedule 1 to the Corporations
Amendment (Remuneration Disclosures) Regulation 2016 apply in relation to
financial years ending on or after the day that instrument commences.
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Part 10.24 Application provisions relating to the Financial Services Legislation Amendment
(Wholesale Margining) Regulation 2016
Regulation 10.24.01
162 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Part 10.24—Application provisions relating to the Financial
Services Legislation Amendment (Wholesale
Margining) Regulation 2016
10.24.01 Application of regulations 7.8.01A and 7.8.06B
(1) Regulation 7.8.01A, as inserted by the Financial Services Legislation
Amendment (Wholesale Margining) Regulation 2016, applies in relation to a
client’s written agreement obtained on or after the commencement of this
regulation, whether the money was paid to the licensee as mentioned in
subsection 981A(1) of the Act before, on or after that commencement.
(2) Regulation 7.8.06B, as inserted by the Financial Services Legislation
Amendment (Wholesale Margining) Regulation 2016, applies in relation to a
client’s written agreement obtained on or after the commencement of this
regulation, whether the property was given to the licensee as mentioned in
subsection 984A(1) of the Act before, on or after that commencement.
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Transition to Part 3 of the Insolvency Practice Schedule (Corporations) Part 10.25
Regulation 10.25.01
Corporations Regulations 2001 163
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Part 10.25—Transition to Part 3 of the Insolvency Practice
Schedule (Corporations)
10.25.01 Transition to Part 3 of the Insolvency Practice Schedule (Corporations)
(1) For the purposes of subsection 1634(1) of the Act, Part 10.25 of Chapter 10 of
the Act applies as if the references in Divisions 3 and 5 of that Part to the
commencement day were a reference to 1 September 2017.
(2) For the purposes of subsection 1634(1) of the Act, Part 10.25 of Chapter 10 of
the Act applies as if the definition of ongoing external administration in
section 1551 of the Act were omitted and the following definition were
substituted for the purposes of Divisions 3 and 5 of that Part:
ongoing external administration of a company means an external administration
of a company that started before 1 September 2017 and ends after that day.
(3) For the purposes of subsection 1634(2) of the Act, Part 10.25 of Chapter 10 of
the Act applies as if Divisions 1, 2 and 3 of that Part were modified as set out in
Schedule 13.
10.25.02 Application of certain amendments relating to the enactment of the
Insolvency Practice Schedule (Corporations)
(1) This section is made for the purposes of subsection 1634(1) of the Act.
(2) The amendments of sections 546-10 and 546-20 of the Corporations (Aboriginal
and Torres Strait Islander) Act 2006 made by Part 2 of Schedule 2 to the
Insolvency Law Reform Act 2016 apply in relation to deregistrations that occur
on or after 1 September 2017.
(3) The amendments made by the following items of Part 2 of Schedule 2 to the
Insolvency Law Reform Act 2016 apply in relation to external administrations on
and after 1 September 2017:
(a) item 65;
(b) item 66;
(c) item 79;
(d) item 80;
(e) item 82;
(f) item 84;
(g) items 91 to 140;
(h) items 143 to 172;
(i) items 177 to 208;
(j) item 213;
(k) item 245;
(l) item 246;
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Part 10.25 Transition to Part 3 of the Insolvency Practice Schedule (Corporations)
Regulation 10.25.02
164 Corporations Regulations 2001
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(m) item 251 (to the extent that it inserts paragraphs 1317C(n) and (o) of the
Act);
(n) item 253;
(o) items 258 to 260;
(p) items 262 to 264.
(4) The amendments made by items 89 and 90 of Part 2 of Schedule 2 to the
Insolvency Law Reform Act 2016 apply in relation to Part 5.1 bodies on and after
1 September 2017.
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Application provisions relating to the Treasury Laws Amendment (Fair and Sustainable
Superannuation) Regulations 2017 Part 10.25
Regulation 10.25.01
Corporations Regulations 2001 165
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Part 10.25—Application provisions relating to the Treasury
Laws Amendment (Fair and Sustainable
Superannuation) Regulations 2017
10.25.01 Application of amendment of subregulation 7.9.04(1)
The amendment made by item 1 of Schedule 1 to the Treasury Laws Amendment
(Fair and Sustainable Superannuation) Regulations 2017 applies in relation to
superannuation interests issued on or after 1 July 2017.
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Chapter 12 Financial sector reform
Part 12.1 Preliminary
Regulation 12.1.01
166 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 State 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.
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
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Regulation 12.1.03
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(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;
(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
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Regulation 12.1.03
168 Corporations Regulations 2001
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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.
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Transitional matters—general Part 12.2
Other matters Division 2
Regulation 12.2.08
Corporations Regulations 2001 169
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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.
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Chapter 12 Financial sector reform
Part 12.4 Notice of meetings of certain bodies corporate
Regulation 12.4.01
170 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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
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Regulation 12.4.04
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(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).
(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.
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Part 12.4 Notice of meetings of certain bodies corporate
Regulation 12.4.05
172 Corporations Regulations 2001
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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
(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.
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Determinations and declarations in relation to certain instruments Part 12.5
Regulation 12.5.01
Corporations Regulations 2001 173
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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
(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.
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Chapter 12 Financial sector reform
Part 12.5 Determinations and declarations in relation to certain instruments
Regulation 12.5.03
174 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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.
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Financial sector reform Chapter 12
Financial reporting by certain bodies corporate Part 12.6
Regulation 12.6.01
Corporations Regulations 2001 175
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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
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Chapter 12 Financial sector reform
Part 12.6 Financial reporting by certain bodies corporate
Regulation 12.6.04
176 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
(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.
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Financial sector reform Chapter 12
Other disclosure Part 12.7
Preliminary Division 1
Regulation 12.7.01
Corporations Regulations 2001 177
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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.
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Chapter 12 Financial sector reform
Part 12.7 Other disclosure
Division 2 Continued application of certain provisions
Regulation 12.7.03
178 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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
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Financial sector reform Chapter 12
Other disclosure Part 12.7
Continued application of certain provisions Division 2
Regulation 12.7.05
Corporations Regulations 2001 179
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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
(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.
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Chapter 12 Financial sector reform
Part 12.8 Shares in certain bodies corporate
Division 1 Preliminary
Regulation 12.8.02
180 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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.
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Shares in certain bodies corporate Part 12.8
Preliminary Division 1
Regulation 12.8.04
Corporations Regulations 2001 181
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(3) The declaration takes effect when the declaration, or a copy of the declaration, is
given to the body corporate.
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Chapter 12 Financial sector reform
Part 12.8 Shares in certain bodies corporate
Division 2 Member shares
Regulation 12.8.05
182 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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,
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Financial sector reform Chapter 12
Shares in certain bodies corporate Part 12.8
Member shares Division 2
Regulation 12.8.06A
Corporations Regulations 2001 183
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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.
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Chapter 12 Financial sector reform
Part 12.8 Shares in certain bodies corporate
Division 2 Member shares
Regulation 12.8.08
184 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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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 12.8.10
Corporations Regulations 2001 185
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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).
(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.
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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 12.8.12
186 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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Financial sector reform Chapter 12
Winding up and deregistration of certain transferring financial institutions Part 12.9
Regulation 12.9.01
Corporations Regulations 2001 187
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
Authorised Version F2017C00544 registered 13/07/2017
Prepared by the Office of Parliamentary Counsel, Canberra
Corporations Regulations 2001
Statutory Rules No. 193, 2001
made under the
Corporations Act 2001
Compilation No. 132
Compilation date: 2 July 2017
Includes amendments up to: F2017L00595
Registered: 13 July 2017
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 3–13
Volume 7: Endnotes
Each volume has its own contents
This compilations includes commenced amendments made by F2017L00321
Authorised Version F2017C00544 registered 13/07/2017
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 2 July 2017 (the compilation date).
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 the Legislation Register
(www.legislation.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 the Legislation Register 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.
Editorial changes
For more information about any editorial changes made in this compilation, see 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 the Legislation Register 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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Contents
Schedule 1—List of forms in Schedule 2 1
Schedule 2—Forms 5
Form 314 10
Form 501 12
Form 502 14
Form 503 16
Form 509A 17
Form 509B 18
Form 509C 19
Form 509E 20
Form 509H 21
Form 521 26
Form 5249 27
Form 527 29
Form 529A 32
Form 529B 33
Form 530 34
Form 531A 35
Form 531B 36
Form 531C 37
Form 532 38
Form 535 39
Form 536 41
Form 537 43
Form 538 44
Form 539 46
Form 541 48
Form 542 51
Form 543 52
Form 544 53
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Form 547 55
Form 548 56
Form 549 57
Form 550 58
Form 551 59
Form 552 61
Form 553 62
Form 701 63
Form 719 77
Form 719A 79
Form 719B 81
Form 720 83
Form 721 84
Form 905 85
Form 910 88
Schedule 2A—Forms of transfer of Division 3
securities 91
Form 1 91
Form 2 93
Form 3 95
Form 4 97
Form 5 98
Form 6 100
Form 7 102
Form 8 104
Form 9 105
Form 10 106
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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
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 509A
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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
company to the administrator
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
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 534
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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
of debt or claim
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
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
93 Subregulation 5.6.71(1) Schedule of contributories or
other persons to whom a
distribution of surplus is to be
paid
551
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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
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
154A Subsection 1302(4) Notice of change of address 909
155 Section 1313 Penalty notice 910
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Schedule 2—Forms (regulations 1.0.02 and 1.0.03)
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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.
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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.
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:
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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.
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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.
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:
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(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.
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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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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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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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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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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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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:
(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
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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):
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:
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(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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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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Form 5249
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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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Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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Schedule 2 Forms
32 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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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Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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. 132 Compilation date: 2/7/17 Registered: 13/7/17
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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Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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. 132 Compilation date: 2/7/17 Registered: 13/7/17
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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Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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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Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 negotiable securities are held, show them in a schedule in the
following form).
Date Drawer Acceptor Amount Due Date
$ c
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*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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Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
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
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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. 132 Compilation date: 2/7/17 Registered: 13/7/17
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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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
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
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Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Dated
Signature of liquidator
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46 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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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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48 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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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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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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
Signature of liquidator
Date
DIRECTION FOR COMPLETING FORM 551
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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 at 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.
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Licensees lodging by email must lodge with APRA:
(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.
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
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(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.
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:
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(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.)
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)
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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.
(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
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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)
*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:
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*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
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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
(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.
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*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.
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Forms of transfer of Division 3 securities Schedule 2A
Form 1
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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)
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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:
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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
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
Authorised Version F2017C00544 registered 13/07/2017
Schedule 2A Forms of transfer of Division 3 securities
Form 2
94 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
Authorised Version F2017C00544 registered 13/07/2017
Forms of transfer of Division 3 securities Schedule 2A
Form 3
Corporations Regulations 2001 95
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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)
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,
Authorised Version F2017C00544 registered 13/07/2017
Schedule 2A Forms of transfer of Division 3 securities
Form 3
96 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
Authorised Version F2017C00544 registered 13/07/2017
Forms of transfer of Division 3 securities Schedule 2A
Form 4
Corporations Regulations 2001 97
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
Authorised Version F2017C00544 registered 13/07/2017
Schedule 2A Forms of transfer of Division 3 securities
Form 5
98 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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)
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.
Authorised Version F2017C00544 registered 13/07/2017
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Form 5
Corporations Regulations 2001 99
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
[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:
Authorised Version F2017C00544 registered 13/07/2017
Schedule 2A Forms of transfer of Division 3 securities
Form 6
100 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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)
Authorised Version F2017C00544 registered 13/07/2017
Forms of transfer of Division 3 securities Schedule 2A
Form 6
Corporations Regulations 2001 101
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
Authorised Version F2017C00544 registered 13/07/2017
Schedule 2A Forms of transfer of Division 3 securities
Form 7
102 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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:
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Form 7
Corporations Regulations 2001 103
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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:
Authorised Version F2017C00544 registered 13/07/2017
Schedule 2A Forms of transfer of Division 3 securities
Form 8
104 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
Authorised Version F2017C00544 registered 13/07/2017
Forms of transfer of Division 3 securities Schedule 2A
Form 9
Corporations Regulations 2001 105
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
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Form 10
106 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
Authorised Version F2017C00544 registered 13/07/2017
Prepared by the Office of Parliamentary Counsel, Canberra
Corporations Regulations 2001
Statutory Rules No. 193, 2001
made under the
Corporations Act 2001
Compilation No. 132
Compilation date: 2 July 2017
Includes amendments up to: F2017L00595
Registered: 13 July 2017
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 3–13
Volume 7: Endnotes
Each volume has its own contents
This compilations includes commenced amendments made by F2017L00321
Authorised Version F2017C00544 registered 13/07/2017
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 2 July 2017 (the compilation date).
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 the Legislation Register
(www.legislation.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 the Legislation Register 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.
Editorial changes
For more information about any editorial changes made in this compilation, see 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 the Legislation Register 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.
Authorised Version F2017C00544 registered 13/07/2017
Corporations Regulations 2001 i
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Contents
Schedule 3—Specified offices 1
Schedule 4—Prescribed amounts 3
Schedule 5C—Conduct of auditor—relevant
relationships 5 1 Money owed—debt..................................................................................................... 5
2 Money owed—deposit account................................................................................... 5
3 Public company auditor (annual appointments at AGMs to
fill vacancies) .............................................................................................................. 6
Schedule 6—Availability of names 7
Part 1—Rules for ascertaining whether names are identical 7
Part 2—Names unacceptable for registration 8
Part 3—Restricted words and phrases 10
Part 4—Consent required to use restricted words and phrases 11
Part 5—Names relating to financial institutions for use of
which consent is required 12
Schedule 7—Exemptions from requirements to set out
certain corporate particulars 13 7001 Definitions for Schedule 7 .........................................................................................13
7002 Exemption for certain IATA documents ....................................................................13
7003 Exemption for bills of lading and sea waybills ..........................................................13
7004 Exemptions—quotation of ACNs and ARBNs ..........................................................14
Schedule 7A—Content of annual transparency report 15
Part 1—Interpretation for Schedule 7A 15 7A101 Interpretation..............................................................................................................15
Part 2—Prescribed information for audit firm or authorised
audit company 16
Part 3—Prescribed information for individual auditor 17
Schedule 8—Schemes of arrangement under Part 5.1
of the Act 18
Chapter 5—External administration 18
Part 1—Interpretation and application 18
Part 2—Prescribed information relating to proposed
compromise or arrangement with creditors or class
of creditors 19
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Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Part 3—Prescribed information relating to proposed
compromise or arrangement with members or a
class of members 20
Part 4—Prescribed information relating to proposed
compromise or arrangement with members or class
of members for transfer to a trustee 24
Schedule 8A—Deed of company arrangement—
prescribed provisions 25 1 Administrator deemed agent of company ..................................................................25
2 Powers of administrator .............................................................................................25
3 Termination of deed where arrangement fails............................................................27
4 Priority .......................................................................................................................27
5 Discharge of debts......................................................................................................27
6 Claims extinguished...................................................................................................27
7 Bar to creditors’ claims ..............................................................................................27
8 Making claims............................................................................................................28
10 Lodging of accounts...................................................................................................28
11 Committee of inspection ............................................................................................28
12 Termination of deed where arrangement achieves purpose .......................................29
Schedule 8AA—Trustee companies 30
Schedule 8AB—Prescribed State and Territory
provisions for paragraph 601RAE (4)(a)
of the Act 31
Schedule 8AC—Prescribed State and Territory laws
and provisions for
paragraph 601RAE(4)(b) of the Act—
estate administration 32
Schedule 8AD—Prescribed State and Territory laws
and provisions for
paragraph 601RAE(4)(b) of the Act 33
Schedule 8AE—Relevant State and Territory
provisions 35
Schedule 8B—Option contract—prescribed indexes 36
Schedule 8C—Modifications of Part 7.5 of the Act—
compensation regimes 38
Schedule 9—Companies authorised to effect transfers
under Part 7.11 of the Act 42
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Schedule 10—Disclosure of fees and other costs 43
Part 1—Interpretation 43 101 Definitions .................................................................................................................43
102 Management costs......................................................................................................45
103 Transactional and operational costs ...........................................................................46
104 Indirect cost ratio .......................................................................................................46
Part 2—Fees and Costs Template, example of annual fees and
costs and Consumer Advisory Warning for Product
Disclosure Statements 47
Division 1—The fees and costs template for superannuation
products 47
201 Template for superannuation products .......................................................................47
Division 2—The fees and costs template for managed investment
products 48
202 Template for a multiple fee structure—managed investment
products......................................................................................................................48
202A Template for single fee structure—managed investment
products......................................................................................................................49
Division 3—How to fill in the template 51
203 The preamble .............................................................................................................51
204 Column 2—presentation of amounts..........................................................................51
205 Column 2—include information for each MySuper product
or investment option ..................................................................................................51
206 Presentation of multiple fee payment options ............................................................52
207 Column 3—how and when fees and costs are payable ..............................................52
208 Other material to be included in the template ............................................................52
Division 4—Additional explanation of fees and costs 53
209 Matters to be included as additional explanation of fees and
costs ...........................................................................................................................53
Division 4A—Defined fees for superannuation products 55
209A Defined fees for superannuation products..................................................................55
Division 5—Example of annual fees and costs 57
210 Example of annual fees and costs ..............................................................................57
211 Superannuation products—Example of annual fees and costs
for a MySuper product ...............................................................................................57
212 Managed investment products—Example of annual fees and
costs for a balanced investment option ......................................................................57
213 Defined benefit funds.................................................................................................58
Division 6—How to fill in the example of annual fees and costs 59
214 Fees and costs must be ongoing amounts...................................................................59
214A Example of annual fees and costs for a MySuper product—
lifecycle MySuper product.........................................................................................59
215 Minimum entry balance rule ......................................................................................59
216 Exit fees .....................................................................................................................59
217 Contribution fees........................................................................................................59
218 Administration fees and investment fees for a
superannuation product ..............................................................................................60
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218A Management costs for a managed investment product...............................................60
219 Withdrawal fees and exit fees ....................................................................................61
220 If there is no generic MySuper product or balanced
investment option.......................................................................................................61
Division 7—Consumer Advisory Warning 62
221 Consumer advisory warning ......................................................................................62
222 Where to place the Consumer Advisory Warning......................................................62
Part 3—Fees and costs in periodic statements 63
Division 1—Other Management Costs 63
301 Indirect costs related to investment and administration of
accounts .....................................................................................................................63
Division 2—Total fees 64
302 Total of fees in the periodic statement .......................................................................64
Division 3—Additional Explanation of Fees and Costs 65
303 Matters to be included as additional explanation of fees and
costs ...........................................................................................................................65
Schedule 10A—Modifications of Part 7.9 of the Act 66
Part 1—Modifications relating to sub-plans 66
Part 2—Modifications relating to Product Disclosure
Statements for RSA products 67
Part 3—Modifications relating to insurance options under
contract associated with superannuation interest 68
Part 5A—Modifications for margin loan 69
Part 5B—Modifications for superannuation products to which
Subdivision 4.2B of Division 4 of Part 7.9 applies 71
Part 5C—Modifications for simple managed investment
scheme 73
Part 6—Modifications relating to application forms and
Product Disclosure Statements for standard
employer-sponsor arrangements and successor funds 75
Part 6A—Modifications relating to MySuper measures 76
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 77
Part 8—Modifications relating to periodic statements for RSA
providers 79
Part 9—Modifications relating to periodic statements for
superannuation entities and RSA providers 81
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Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Part 10—Modifications relating to ongoing disclosure of
material changes and significant events in relation to
superannuation products and RSAs 82
Part 11—Modifications relating to charges for information
requested 84
Part 12—Modifications relating to information when member
leaves a fund 85
Part 13—Modifications relating to exceptions to exit reporting
period provisions 86
Part 14—Modifications relating to obligation to give
information about financial products 87
Part 15—Modifications for confirmation of transactions 89
Part 16—Modifications relating to reporting periods 90
Part 17—Modifications relating to application forms for
specified superannuation products 91
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 92
Part 19—Modifications for carbon units, Australian carbon
credit units and eligible international emissions units 93
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 104
Part 1—Modification of Part 6D.2 of the Act—disclosure to
investors not required for recognised offer under
Chapter 8 104
Part 2—Modification of Part 7.9 of the Act—disclosure to
investors not required for recognised offer under
Chapter 8 105
Schedule 10BA—Modifications of the Act relating to
Short-Form Product Disclosure
Statements 107
Part 1—Modifications of Part 7.7 of the Act 107
Part 2—Modifications of Part 7.8 of the Act 108
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Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Part 3—Modifications of Part 7.9 of the Act 109
Schedule 10C—Form and content of Product
Disclosure Statement—margin loan 118 1 Length and font size for Product Disclosure Statement for
margin loan ..............................................................................................................118
2 Minimum content of Product Disclosure Statement for
margin loan ..............................................................................................................118
3 Contents of section 1 (About [name of provider of the
margin loan] and [name of margin loan product]) ...................................................119
4 Contents of section 2 (Benefits of [name of margin loan
product]) ..................................................................................................................120
5 Contents of section 3 (How [name of margin loan product]
works) ......................................................................................................................120
6 Contents of section 4 (What is a margin call?).........................................................121
7 Contents of section 5 (The risk of losing money) ....................................................122
8 Contents of section 6 (The costs) .............................................................................122
9 Contents of section 7 (How to apply).......................................................................123
Schedule 10D—Form and content of Product
Disclosure Statement—superannuation
product to which Subdivision 4.2B of
Division 4 of Part 7.9 applies 124 1 Length and font size for Product Disclosure Statement for
superannuation product ............................................................................................124
2 Minimum content of Product Disclosure Statement for
superannuation product ............................................................................................124
3 Contents of section 1 (About [name of superannuation
product]) ..................................................................................................................125
4 Contents of section 2 (How super works) ................................................................126
5 Contents of section 3 (Benefits of investing with [name of
superannuation product]) .........................................................................................126
6 Contents of section 4 (Risks of super) .....................................................................127
7 Contents of section 5 (How we invest your money) ................................................127
8 Contents of section 6 (Fees and costs) .....................................................................129
9 Contents of section 7 (How super is taxed)..............................................................131
10 Contents of section 8 (Insurance in your super) .......................................................131
11 Contents of section 9 (How to open an account)......................................................133
Schedule 10E—Form and content of Product
Disclosure Statement—simple managed
investment scheme 134 1 Length and font size for Product Disclosure Statement for
simple managed investment scheme ........................................................................134
2 Minimum content of Product Disclosure Statement for
simple managed investment scheme ........................................................................134
3 Contents of section 1 (About [name of responsible entity]).....................................135
4 Contents of section 2 (How [name of simple managed
investment scheme] works)......................................................................................136
5 Contents of section 3 (Benefits of investing in [name of
simple managed investment scheme])......................................................................136
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Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
6 Contents of section 4 (Risks of managed investment
schemes) ..................................................................................................................136
7 Contents of section 5 (How we invest your money) ................................................137
8 Contents of section 6 (Fees and costs) .....................................................................139
9 Contents of section 7 (How managed investment schemes
are taxed) .................................................................................................................141
10 Contents of section 8 (How to apply).......................................................................141
Schedule 11—Persons who are not covered by
section 1433 of the Act 142
Schedule 12—ASIC transitional standards 144
Schedule 13—Transition to Part 3 of the Insolvency
Practice Schedule (Corporations) 145
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Specified offices Schedule 3
Corporations Regulations 2001 1
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
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
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Schedule 3 Specified offices
2 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Column 1 Column 2 Column 3 Column 4
Item Office Law Jurisdiction
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
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
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Prescribed amounts Schedule 4
Corporations Regulations 2001 3
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Schedule 4—Prescribed amounts (regulation 1.1.01)
Column 1 Column 2 Column 3
Item Matter Amount ($)
1 Inspection of registers for the purposes of:
(a) subsection 173(2) or subsection 672DA (7):
(i) if a register is not kept on a computer—for each
inspection 5.00
(ii) if a register is kept on a computer—for each
inspection a reasonable amount
that does not exceed
the marginal cost to
the company of
providing an
inspection
1AA Supply of copies for subsection 173(3)
In addition:
250.00
(a) for each member about whom information is provided in
excess of 5 000 members and up to 19 999 members 0.05
(b) for each member about whom information is provided at
20 000 members or more 0.01
1A Inspection of registers or records for:
(a) subsection 271(3)
(b) subsection 668A(3);
for each inspection 5.00
2 Supply under section 139 by a company to a member of the
company of a copy of the company’s constitution
10.00
3 Supply of copies for subsection 672DA (8):
(a) if a register is not kept on a computer—for each page, or
part of a page, not exceeding international sheet size A4
of the copy supplied or, at the option of the supplier, for
each 100 words or part of 100 words
0.50
(b) if a register is kept on a computer—for each inspection a reasonable amount
that does not exceed
the marginal cost to
the company of
providing a copy
3A Supply of copies for:
(a) subsection 246G (3)
(b) subsection 251B (4)
(ba) subsection 253N (4)
(c) subsection 271(4)
(d) subsection 812(3)
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Schedule 4 Prescribed amounts
4 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Column 1 Column 2 Column 3
Item Matter Amount ($)
(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
(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
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Conduct of auditor—relevant relationships Schedule 5C
Clause 1
Corporations Regulations 2001 5
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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:
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Schedule 5C Conduct of auditor—relevant relationships
Clause 3
6 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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,”.
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Availability of names Schedule 6
Rules for ascertaining whether names are identical Part 1
Corporations Regulations 2001 7
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 &
7 Incorporated Inc
8 Corporation Corp
9 Australian Company Number ACN
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Schedule 6 Availability of names
Part 2 Names unacceptable for registration
8 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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:
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Names unacceptable for registration Part 2
Corporations Regulations 2001 9
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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Schedule 6 Availability of names
Part 3 Restricted words and phrases
10 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 11
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
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Schedule 6 Availability of names
Part 5 Names relating to financial institutions for use of which consent is required
12 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 13
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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;
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Schedule 7 Exemptions from requirements to set out certain corporate particulars
14 Corporations Regulations 2001
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(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
(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.
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Content of annual transparency report Schedule 7A
Interpretation for Schedule 7A Part 1
Corporations Regulations 2001 15
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Schedule 7A Content of annual transparency report
Part 2 Prescribed information for audit firm or authorised audit company
16 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
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
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Content of annual transparency report Schedule 7A
Prescribed information for individual auditor Part 3
Corporations Regulations 2001 17
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
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Schedule 8 Schemes of arrangement under Part 5.1 of the Act
Chapter 5 External administration
Part 1 Interpretation and application
18 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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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 creditors or class of
creditors Part 2
Corporations Regulations 2001 19
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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 an endorsement 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;
(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.
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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
20 Corporations Regulations 2001
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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:
(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
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External administration Chapter 5
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members Part 3
Corporations Regulations 2001 21
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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.
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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
22 Corporations Regulations 2001
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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:
(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
(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.
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External administration Chapter 5
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members Part 3
Corporations Regulations 2001 23
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(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.
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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
24 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Corporations Regulations 2001 25
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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;
(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;
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(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;
(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.
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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.
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
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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.
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 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;
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(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
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.
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Schedule 8AA Trustee companies
30 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
6A Australian Unity Trustees 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
28 The Trust Company (UTCCL) Limited
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Corporations Regulations 2001 31
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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
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Act—estate administration
32 Corporations Regulations 2001
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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)
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8AD
Corporations Regulations 2001 33
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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
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
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Act
34 Corporations Regulations 2001
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Item State or Territory law and provisions
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
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
Authorised Version F2017C00544 registered 13/07/2017
Relevant State and Territory provisions Schedule 8AE
Corporations Regulations 2001 35
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
Authorised Version F2017C00544 registered 13/07/2017
Schedule 8B Option contract—prescribed indexes
36 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
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
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Corporations Regulations 2001 37
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
Authorised Version F2017C00544 registered 13/07/2017
Schedule 8C Modifications of Part 7.5 of the Act—compensation regimes
38 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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
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Modifications of Part 7.5 of the Act—compensation regimes Schedule 8C
Corporations Regulations 2001 39
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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.
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Schedule 8C Modifications of Part 7.5 of the Act—compensation regimes
40 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
7 Subsection 885J(1)
omit
adequate,
insert
adequate for the market, or segment of the market, for which the arrangements apply,
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.
11 Paragraph 892K(1)(a)
after
report
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Modifications of Part 7.5 of the Act—compensation regimes Schedule 8C
Corporations Regulations 2001 41
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
insert
for a set of compensation arrangements
Authorised Version F2017C00544 registered 13/07/2017
Schedule 9 Companies authorised to effect transfers under Part 7.11 of the Act
42 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
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Disclosure of fees and other costs Schedule 10
Interpretation Part 1
Clause 101
Corporations Regulations 2001 43
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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.
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Part 1 Interpretation
Clause 101
44 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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Disclosure of fees and other costs Schedule 10
Interpretation Part 1
Clause 102
Corporations Regulations 2001 45
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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;
(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;
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Schedule 10 Disclosure of fees and other costs
Part 1 Interpretation
Clause 103
46 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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.
Authorised Version F2017C00544 registered 13/07/2017
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 47
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
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”.]
Authorised Version F2017C00544 registered 13/07/2017
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
48 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
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
Authorised Version F2017C00544 registered 13/07/2017
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 49
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
[Name of managed investment product]
Type of fee or cost Amount How and when paid
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”.]
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
Authorised Version F2017C00544 registered 13/07/2017
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
50 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
[Name of managed investment product]
Type of fee or cost Amount How and when paid
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”.]
Authorised Version F2017C00544 registered 13/07/2017
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 51
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
Authorised Version F2017C00544 registered 13/07/2017
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 206
52 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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.
Authorised Version F2017C00544 registered 13/07/2017
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 53
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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:
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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
54 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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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 55
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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.
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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
56 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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.
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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 57
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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).
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
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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 213
58 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
Note: Defined benefit fund is defined in subregulation 1.03(1) of the SIS Regulations.
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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 214
Corporations Regulations 2001 59
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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
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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 218
60 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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.
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.
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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 61
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(3) Management costs that are not deducted directly from a product holder’s account
must be calculated using the indirect cost ratio for 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
(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.
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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 7 Consumer Advisory Warning
Clause 221
62 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Fees and costs in periodic statements Part 3
Other Management Costs Division 1
Clause 301
Corporations Regulations 2001 63
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Schedule 10 Disclosure of fees and other costs
Part 3 Fees and costs in periodic statements
Division 2 Total fees
Clause 302
64 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Disclosure of fees and other costs Schedule 10
Fees and costs in periodic statements Part 3
Additional Explanation of Fees and Costs Division 3
Clause 303
Corporations Regulations 2001 65
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Schedule 10A Modifications of Part 7.9 of the Act
Part 1 Modifications relating to sub-plans
66 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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, 7.9.11C, 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.
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Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to Product Disclosure Statements for RSA products Part 2
Corporations Regulations 2001 67
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Schedule 10A Modifications of Part 7.9 of the Act
Part 3 Modifications relating to insurance options under contract associated with superannuation
interest
68 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Modifications of Part 7.9 of the Act Schedule 10A
Modifications for margin loan Part 5A
Corporations Regulations 2001 69
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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.
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Schedule 10A Modifications of Part 7.9 of the Act
Part 5A Modifications for margin loan
70 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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
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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 71
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
(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.
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Part 5B Modifications for superannuation products to which Subdivision 4.2B of Division 4 of Part
7.9 applies
72 Corporations Regulations 2001
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(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
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
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Modifications of Part 7.9 of the Act Schedule 10A
Modifications for simple managed investment scheme Part 5C
Corporations Regulations 2001 73
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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.
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Part 5C Modifications for simple managed investment scheme
74 Corporations Regulations 2001
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(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
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
Authorised Version F2017C00544 registered 13/07/2017
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 75
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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Schedule 10A Modifications of Part 7.9 of the Act
Part 6A Modifications relating to MySuper measures
76 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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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 77
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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.
(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
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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
78 Corporations Regulations 2001
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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.
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.
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Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to periodic statements for RSA providers Part 8
Corporations Regulations 2001 79
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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:
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Part 8 Modifications relating to periodic statements for RSA providers
80 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
(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 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.
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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 81
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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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
82 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
(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.
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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 83
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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.
(11) This section does not apply to a change or event in relation to a superannuation
product or an RSA product if the change or event happens because of a transfer
in accordance with paragraph 6.29(1)(ba) of the Superannuation Industry
(Supervision) Regulations 1994 in respect of the product.
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Schedule 10A Modifications of Part 7.9 of the Act
Part 11 Modifications relating to charges for information requested
84 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to information when member leaves a fund Part 12
Corporations Regulations 2001 85
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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.
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Schedule 10A Modifications of Part 7.9 of the Act
Part 13 Modifications relating to exceptions to exit reporting period provisions
86 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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.
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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 87
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
(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.
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Part 14 Modifications relating to obligation to give information about financial products
88 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
(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.
(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.
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Modifications of Part 7.9 of the Act Schedule 10A
Modifications for confirmation of transactions Part 15
Corporations Regulations 2001 89
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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Part 16 Modifications relating to reporting periods
90 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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;
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Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to application forms for specified superannuation products Part 17
Corporations Regulations 2001 91
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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.
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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
92 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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.
(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.
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Modifications for carbon units, Australian carbon credit units and eligible international emissions units
Part 19
Corporations Regulations 2001 93
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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.
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
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94 Corporations Regulations 2001
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(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.
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
Clean Energy Regulator as mentioned in section 61 of the Australian National
Registry of Emissions Units Act 2011.
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Part 19
Corporations Regulations 2001 95
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
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
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emissions units
96 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
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
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Part 19
Corporations Regulations 2001 97
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published on the website of the Clean Energy Regulator as mentioned in
section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011;
or
(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)).
(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).
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Part 19 Modifications for carbon units, Australian carbon credit units and eligible international
emissions units
98 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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).
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),
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Part 19
Corporations Regulations 2001 99
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19.15 Subparagraph 1018A(1)(c)(ii)
omit
to which section 1012C applies or 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
19.16 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,
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
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emissions units
100 Corporations Regulations 2001
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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
19.19 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 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
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(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
(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
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
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Part 19 Modifications for carbon units, Australian carbon credit units and eligible international
emissions units
102 Corporations Regulations 2001
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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 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
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Part 19
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(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 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
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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
Part 1 Modification of Part 6D.2 of the Act—disclosure to investors not required for recognised offer
under Chapter 8
104 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
(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.
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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 105
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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.
(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 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.
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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
Part 2 Modification of Part 7.9 of the Act—disclosure to investors not required for recognised offer
under Chapter 8
106 Corporations Regulations 2001
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(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.
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Modifications of Part 7.7 of the Act Part 1
Corporations Regulations 2001 107
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Schedule 10BA—Modifications of the Act relating to
Short-Form Product Disclosure Statements (regulation 7.9.61AA)
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)
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Part 2 Modifications of Part 7.8 of the Act
108 Corporations Regulations 2001
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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
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Modifications of Part 7.9 of the Act Part 3
Corporations Regulations 2001 109
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Part 3—Modifications of Part 7.9 of the Act
3.1 After Division 3 of Part 7.9
insert
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:
(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.
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Part 3 Modifications of Part 7.9 of the Act
110 Corporations Regulations 2001
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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.
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:
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(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
(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;
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112 Corporations Regulations 2001
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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
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:
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(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,
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
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Part 3 Modifications of Part 7.9 of the Act
114 Corporations Regulations 2001
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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
(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
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3.16 After subparagraph 1021H(1)(b)(ii)
insert
(iii) if it is a Supplementary Short-Form PDS—section 1013G, 1017M or
1017N; and
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
insert
disclosure statement
3.22 Paragraph 1021L(1)(a)
omit
or a Supplementary Product Disclosure Statement
insert
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Part 3 Modifications of Part 7.9 of the Act
116 Corporations Regulations 2001
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, 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
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
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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
, 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
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Schedule 10C Form and content of Product Disclosure Statement—margin loan
Clause 1
118 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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:
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.
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(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:
(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
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required under the terms of the margin loan to provide notice to the
borrower of its intention to sell; and
(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:
(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:
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(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:
(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
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(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 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).
(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;
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(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
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.
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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 (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.
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.
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(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
(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:
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(i) the product dashboard for each MySuper product and choice product
in the entity; and
(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.
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.
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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;
(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.
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(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
(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
(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
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(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:
(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:
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(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 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:
(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
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(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.
(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:
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(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
(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:
(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;
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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
(b) may provide that information 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 (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.
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
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(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
(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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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:
(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:
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(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;
(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
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reasonably believes has the least volatile underlying assets (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.
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):
(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:
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(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.
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
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[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).].
(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:
(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:
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(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;
(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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Schedule 11 Persons who are not covered by section 1433 of the Act
142 Corporations Regulations 2001
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Schedule 11—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 a Chapter 5 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;
(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
5 years after the cancellation,
suspension or revocation
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Item Person Period
of the actions of, a regulator
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
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Schedule 12 ASIC transitional standards
144 Corporations Regulations 2001
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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;
(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.
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Schedule 13—Transition to Part 3 of the Insolvency
Practice Schedule (Corporations) Note: See subregulation 10.25.01(3).
Corporations Act 2001
1 Section 1550 (paragraph relating to Part 3)
Omit “that starts on or after the commencement of Part 1 of Schedule 2 to the
Insolvency Law Reform Act 2016”, substitute “that starts on or after 1 September
2017”.
2 After section 1554
Insert:
1554A Saving of Register of Official Liquidators
(1) This section applies to the Register of Official Liquidators kept in accordance
with subsection 1286(2) of the old Act.
(2) Despite the repeal of sections 1283 and 1286 by Schedule 2 to the Insolvency
Law Reform Act 2016, the Register of Official Liquidators continues in
existence, and may be dealt with, as if those repeals had not happened.
3 Section 1578 (paragraph relating to new external administrations)
Omit “the commencement of the Insolvency Law Reform Act 2016 (called new
external administrations)”, substitute “1 September 2017”.
4 Section 1579
Repeal the section, substitute:
1579 Application of Part 3 of the Insolvency Practice Schedule (Corporations)—
general rules
(1) Part 3 of the Insolvency Practice Schedule (Corporations) applies in relation to
an external administration of a company that starts on or after 1 September 2017.
(2) Part 3 of the Insolvency Practice Schedule (Corporations) applies in relation to
an ongoing external administration of a company in accordance with this
Division.
5 Sections 1581 and 1582
Repeal the sections, substitute:
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1581 Old Act continues to apply in relation to remuneration for administrators
already appointed or appointed during transition period
(1) Despite the repeal of sections 449E and 473 and the repeal and substitution of
subsections 499(3) to (7) of the old Act by Schedule 2 to the Insolvency Law
Reform Act 2016, the old Act continues to apply in relation to the remuneration
of an external administrator of a company who is appointed:
(a) before the start time; or
(b) during the transition period.
(2) Despite subsection (1), if, under Subdivision F of this Division, Division 75 of
the Insolvency Practice Schedule (Corporations) rather than the old Act would
apply to a meeting that deals with the remuneration of an external administrator
of a company who is appointed before the start time or during the transition
period, Division 75 of the Insolvency Practice Schedule (Corporations) applies to
that meeting.
(3) In this section:
start time means the commencement of Schedule 1 to the Insolvency Law
Reform Act 2016.
transition period means the period:
(a) starting immediately after the start time; and
(b) ending at the end of 31 August 2017.
1582 Duties of administrators relating to remuneration and other benefits
(1) Section 60-20 of the Insolvency Practice Schedule (Corporations) applies on and
after 1 September 2017 in relation to an external administrator of an ongoing
external administration of a company regardless of when the administrator was
appointed.
(2) However, that section does not apply in relation to arrangements made before
1 September 2017.
6 Subsection 1582(1)
After “applies”, insert “on and after 1 September 2017”.
7 Section 1584
Omit all the words after “applies”, substitute “on and after 1 September 2017
regardless of when the vacancy in the office of the liquidator arose”.
8 At the end of section 1586
Add “on and after 1 September 2017”.
9 Subsection 1588(2) (heading)
Repeal the heading, substitute:
Authorised Version F2017C00544 registered 13/07/2017
Transition to Part 3 of the Insolvency Practice Schedule (Corporations) Schedule 13
Corporations Regulations 2001 147
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Old regulations continue to apply to money received before 1 September 2017
10 Subsection 1590(2) (heading)
Repeal the heading, substitute:
Old regulations continue to apply to securities received before 1 September 2017
11 At the end of section 1591
Add “on and after 1 September 2017”.
12 Section 1592
Repeal the section, substitute:
1592 Transitional rules for annual administration returns
(1) Section 70-5 of the Insolvency Practice Schedule (Corporations) applies in
relation to a person if the person first began to be an external administrator of a
company on or after 1 September 2017.
(2) Section 70-5 of the Insolvency Practice Schedule (Corporations) also applies in
relation to a person if the person first began to be an external administrator of a
company before 1 September 2017 as if the reference in that section to an
administration return year for the administrator were a reference to:
(a) the first full year starting on or after 1 September 2017 that is an
anniversary of when the person first began to be the external administrator
of the company; and
(b) each subsequent period of 12 months.
(3) Despite the repeal of the old return provisions by Schedule 2 to the Insolvency
Law Reform Act 2016, those provisions continue to apply to an external
administrator of a company appointed before 1 September 2017:
(a) if the end of the 6-month period referred to in the old return provisions
occurs before 1 March 2018—in relation to that period; and
(b) if the end of that period is not an anniversary of the administrator’s
appointment—in relation to the subsequent 6-month period.
(4) To avoid doubt, despite the repeal of the old return provisions by Schedule 2 to
the Insolvency Law Reform Act 2016, audits may be continued in relation to
accounts lodged under those provisions as if the old Act continued to apply.
(5) In this section:
old return provisions means the following provisions of the old Act:
(a) subsection 438E(1);
(b) subsection 445J(1);
(c) subsection 539(1), other than the extent to which it relates to a liquidator
ceasing to act as liquidator.
Authorised Version F2017C00544 registered 13/07/2017
Schedule 13 Transition to Part 3 of the Insolvency Practice Schedule (Corporations)
148 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
1592A Transitional rules for end of administration returns
(1) Section 70-6 of the Insolvency Practice Schedule (Corporations) applies in
relation to external administrations that end on or after 1 September 2017.
(2) Despite the repeal of the old return provisions by Schedule 2 to the Insolvency
Law Reform Act 2016, those provisions continue to apply, in relation to an
external administrator of a company, if the external administrator ceases to act as
an external administrator for the company before 1 September 2017.
(3) To avoid doubt, despite the repeal of the old return provisions by Schedule 2 to
the Insolvency Law Reform Act 2016, audits may be continued in relation to
accounts lodged under those provisions as if the old Act continued to apply.
(4) In this section:
old return provisions means the following provisions of the old Act, as in force
before their repeal by Schedule 2 to the Insolvency Law Reform Act 2016:
(a) subsection 438E(2);
(b) subsection 445J(2);
(c) subsection 539(1), to the extent to which it relates to a liquidator ceasing to
act as liquidator.
13 Section 1594
After “apply”, insert “on and after 1 September 2017”.
14 Subsection 1596(1)
After “applies”, insert “on and after 1 September 2017”.
15 Sections 1597, 1598 and 1599
After “applies”, insert “on and after 1 September 2017”.
16 At the end of section 1601
Add “on and after 1 September 2017”.
17 Section 1604
Omit “2017”, insert “2018”.
18 Section 1606
After “apply”, insert “on and after 1 September 2017”.
19 Section 1606
Omit “the commencement day”, substitute “that day”.
20 Section 1612
After “apply”, insert “on and after 1 September 2017”.
Authorised Version F2017C00544 registered 13/07/2017
Transition to Part 3 of the Insolvency Practice Schedule (Corporations) Schedule 13
Corporations Regulations 2001 149
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
21 Section 1612
Omit “the commencement day”, substitute “that day”.
22 Section 1613
After “applies”, insert “on and after 1 September 2017”.
23 Section 1615
After “applies”, insert “on and after 1 September 2017”.
24 Section 1615
Omit “the commencement day”, substitute “that day”.
25 Subsection 1618(2)
After “apply”, insert “on and after 1 September 2017”.
26 Subsection 1618(2)
Omit “the commencement day”, substitute “that day”.
27 Subsection 1618(3)
After “applies”, insert “on and after 1 September 2017”.
28 Subsection 1618(3)
Omit “the commencement day”, substitute “that day”.
29 Subsection 1618(4)
After “applies”, insert “on and after 1 September 2017”.
30 Subsection 1618(4)
Omit “the commencement day”, substitute “that day”.
31 Subsection 1618(6)
After “applies”, insert “on and after 1 September 2017”.
32 Subsection 1618(6)
Omit “the commencement day”, substitute “that day”.
33 Subsection 1619(2)
After “apply”, insert “on and after 1 September 2017”.
34 Subsection 1619(2)
Omit “the commencement day”, substitute “that day”.
35 Subsection 1619(4)
After “applies”, insert “on and after 1 September 2017”.
Authorised Version F2017C00544 registered 13/07/2017
Schedule 13 Transition to Part 3 of the Insolvency Practice Schedule (Corporations)
150 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
36 Subsection 1619(4)
Omit “the commencement day”, substitute “that day”.
37 Section 1620
After “applies”, insert “on and after 1 September 2017”.
38 Section 1620
Omit “the commencement day”, substitute “that day”.
39 Section 1623
Repeal the section, substitute:
1623 Transitional rules for controller returns
(1) Section 422A, as inserted by Schedule 2 to the Insolvency Law Reform Act 2016,
applies in relation to a person if the person first began to be a controller of the
property of a corporation on or after 1 September 2017.
(2) Section 422A, as inserted by Schedule 2 to the Insolvency Law Reform Act 2016,
also applies in relation to a person if the person first began to be the controller of
the property of a corporation before 1 September 2017 as if the reference in that
section to a control return year for the controller were a reference to:
(a) the first full year starting on or after 1 September 2017 that is an
anniversary of when the person first began to be the controller of the
property of a corporation; and
(b) each subsequent period of 12 months.
(3) Despite the repeal of subsections 432(1) and (1A) of the old Act by Schedule 2 to
the Insolvency Law Reform Act 2016, those subsections continue to apply, in
relation to a controller of a corporation appointed before 1 September 2017:
(a) if the end of the 6-month period referred to in paragraph 432(1)(a) occurs
before 1 March 2018—in relation to that period; and
(b) if the end of that period is not an anniversary of the administrator’s
appointment—in relation to the subsequent 6-month period.
(4) To avoid doubt, despite the repeal of subsections 432(1) and (1A) of the old Act
by Schedule 2 to the Insolvency Law Reform Act 2016, audits may be continued
in relation to accounts lodged under those provisions as if the old Act continued
to apply.
1623A Transitional rules for end of control returns
(1) Section 422B, as inserted by Schedule 2 to the Insolvency Law Reform Act 2016,
applies in relation to a control of the property of a corporation that ends on or
after 1 September 2017.
(2) Despite the repeal of subsections 432(1) and (1A) of the old Act by Schedule 2 to
the Insolvency Law Reform Act 2016, those subsections continue to apply, in
Authorised Version F2017C00544 registered 13/07/2017
Transition to Part 3 of the Insolvency Practice Schedule (Corporations) Schedule 13
Corporations Regulations 2001 151
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
relation to controllers that cease to be a controller of property of a corporation, if
the cessation occurs before 1 September 2017.
40 Subsection 1627(3)
After “apply”, insert “on and after 1 September 2017”.
Authorised Version F2017C00544 registered 13/07/2017
Prepared by the Office of Parliamentary Counsel, Canberra
Corporations Regulations 2001
Statutory Rules No. 193, 2001
made under the
Corporations Act 2001
Compilation No. 132
Compilation date: 2 July 2017
Includes amendments up to: F2017L00595
Registered: 13 July 2017
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 3–13
Volume 7: Endnotes
Each volume has its own contents
This compilations includes commenced amendments made by F2017L00321
Authorised Version F2017C00544 registered 13/07/2017
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 2 July 2017 (the compilation date).
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 the Legislation Register
(www.legislation.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 the Legislation Register 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.
Editorial changes
For more information about any editorial changes made in this compilation, see 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 the Legislation Register 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.
Authorised Version F2017C00544 registered 13/07/2017
Corporations Regulations 2001 i
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Contents
Endnotes 1
Endnote 1—About the endnotes 1
Endnote 2—Abbreviation key 2
Endnote 3—Legislation history 3
Endnote 4—Amendment history 12
Endnote 5—Miscellaneous 73
Authorised Version F2017C00544 registered 13/07/2017
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 1—About the endnotes
Corporations Regulations 2001 1
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
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.
Editorial changes
The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and
presentational changes to a compiled law in preparing a compilation of the law for
registration. The changes must not change the effect of the law. Editorial changes take effect
from the compilation registration date.
If the compilation includes editorial changes, the endnotes include a brief outline of the
changes in general terms. Full details of any changes can be obtained from the Office of
Parliamentary Counsel.
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 abbreviation “(md not
incorp)” is added to the details of the amendment included in the amendment history.
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 2—Abbreviation key
2 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Endnote 2—Abbreviation key
ad = added or inserted o = order(s)
am = amended Ord = Ordinance
amdt = amendment orig = original
c = clause(s) par = paragraph(s)/subparagraph(s)
C[x] = Compilation No. x /sub-subparagraph(s)
Ch = Chapter(s) pres = present
def = definition(s) prev = previous
Dict = Dictionary (prev…) = previously
disallowed = disallowed by Parliament Pt = Part(s)
Div = Division(s) r = regulation(s)/rule(s)
ed = editorial change reloc = relocated
exp = expires/expired or ceases/ceased to have renum = renumbered
effect rep = repealed
F = Federal Register of Legislation rs = repealed and substituted
gaz = gazette s = section(s)/subsection(s)
LA = Legislation Act 2003 Sch = Schedule(s)
LIA = Legislative Instruments Act 2003 Sdiv = Subdivision(s)
(md) = misdescribed amendment can be given SLI = Select Legislative Instrument
effect SR = Statutory Rules
(md not incorp) = misdescribed amendment Sub-Ch = Sub-Chapter(s)
cannot be given effect SubPt = Subpart(s)
mod = modified/modification underlining = whole or part not
No. = Number(s) commenced or to be commenced
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 3—Legislation history
Corporations Regulations 2001 3
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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 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 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))
—
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 —
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 3—Legislation history
4 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Number and year FRLI Registration or
gazettal
Commencement Application, saving
and transitional
provisions
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
—
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 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 —
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 Sch 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 —
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 3—Legislation history
Corporations Regulations 2001 5
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Number and year FRLI Registration or
gazettal
Commencement Application, saving
and transitional
provisions
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
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, 2007 29 June 2007
(F2007L01899)
r 1–3 and Sch 1: 1 July 2007
Remainder: 1 Sept 2007 (r 2(b))
—
199, 2007 29 June 2007
(F2007L01898)
1 Sept 2007 (r 2) —
227, 2007 24 July 2007
(F2007L02255)
25 July 2007 (r 2) —
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 —
94, 2008 3 June 2008
(F2008L01827)
13 June 2008 (r 2) —
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Endnotes
Endnote 3—Legislation history
6 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Number and year FRLI Registration or
gazettal
Commencement Application, saving
and transitional
provisions
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) —
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) —
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Endnotes
Endnote 3—Legislation history
Corporations Regulations 2001 7
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Number and year FRLI Registration or
gazettal
Commencement Application, saving
and transitional
provisions
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) —
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) —
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 3—Legislation history
8 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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) —
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)
—
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 3—Legislation history
Corporations Regulations 2001 9
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Number and year FRLI Registration or
gazettal
Commencement Application, saving
and transitional
provisions
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)
—
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)
repealed before commencing (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) —
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 3—Legislation history
10 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Number and year FRLI Registration or
gazettal
Commencement Application, saving
and transitional
provisions
24, 2015 12 Mar 2015
(F2015L00287)
13 Mar 2015 (s 2) —
39, 2015 30 Mar 2015
(F2015L00367)
Sch 3 (item 1): 31 Mar 2015 (s 2
item 4)
—
91, 2015 18 June 2015
(F2015L00840)
Sch 1 (items 11–29, 40–45): 1 July
2015 (s 2(1) item 2)
Sch 1 (items 40–45)
92, 2015 18 June 2015
(F2015L00841)
Sch 1 (item 3): 19 June 2015 (s 2(1)
item 1)
—
108, 2015 29 June 2015
(F2015L00969)
1 July 2015 (s 2(1) item 1) —
134, 2015 12 Aug 2015
(F2015L01262)
Sch 1 (item 3): 13 Aug 2015 (s 2 (1)
item 1)
—
135, 2015 13 Aug 2015
(F2015L01270)
14 Aug 2015 (s 2(1) item 1) —
157, 2015 8 Sept 2015
(F2015L01411)
Sch 1 (items 6, 7): 1 Oct 2015
(s 2(1) item 3)
Sch 1 (items 8, 9): 5 Mar 2016
(s 2(1) item 4)
Remainder: 9 Sept 2015 (s 2(1)
items 1, 2)
—
Name Registration Commencement Application, saving
and transitional
provisions
Treasury Laws Amendment
(2016 Measures No. 1)
Regulation 2016
26 Feb 2016
(F2016L00156)
Sch 2 (items 19–25): 27 Feb 2016 (s
2(1) item 1)
—
Corporations Amendment
(Remuneration Disclosures)
Regulation 2016
15 Apr 2016
(F2016L00514)
16 Apr 2016 (s 2(1) item 1) —
Tax and Superannuation
Laws Amendment (2016
Measures No. 2)
Regulation 2016
9 May 2016
(F2016L00710)
Sch 1 (item 1): 10 May 2016 (s 2(1)
item 2)
—
Financial Services Legislation
Amendment (Wholesale
Margining) Regulation 2016
28 Oct 2016
(F2016L01657)
Sch 1: 29 Oct 2016 (s 2(1) item 1) —
Corporations Amendment
(Trustee Companies)
Regulation 2016
12 Dec 2016
(F2016L01902)
13 Dec 2016 (s 2(1) item 1) —
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 3—Legislation history
Corporations Regulations 2001 11
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Name Registration Commencement Application, saving
and transitional
provisions
Corporations and Other
Legislation Amendment
(Insolvency Law Reform)
Regulation 2016
13 Dec 2016
(F2016L01926)
Sch 1 (items 30–45) and Sch 2: 1
Mar 2017 (s 2(1) items 2, 4)
Sch 1 (items 77–102): 1 Sept 2017
(s 2(1) item 3)
—
Corporations Legislation
Amendment (Professional
Standards of Financial
Advisers) Regulations 2017
13 Feb 2017
(F2017L00117)
Sch 1 (items 15–20): 15 Mar 2017
(s 2(1) item 1)
—
Corporations Amendment
(Life Insurance Remuneration
Arrangements)
Regulations 2017
14 Mar 2017
(F2017L00212)
1 Jan 2018 (s 2(1) item 1) —
Treasury Laws Amendment
(Fair and Sustainable
Superannuation)
Regulations 2017
27 Mar 2017
(F2017L00321)
Sch 1 (item 1) and Sch 10 (item 1):
28 Mar 2017 (s 2(1) items 2, 7)
Sch 4 (items 1, 2): 2 July 2017
(s 2(1) item 3)
—
Treasury Laws Amendment
(Professional Standards
Schemes) Regulations 2017
24 May 2017
(F2017L00595)
Sch 1 (items 29–39): 25 May 2017
(s 2(1) item 1)
—
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
12 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Endnote 4—Amendment history
Provision affected How affected
Chapter 1
Part 1.0
r 1.0.01A........................................ rep LA s 48D
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; No 91, 2015; F2016L01926
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; F2016L01926 (Sch 1 item 77)
r. 1.0.03B....................................... ad. 2004 No. 399
r 1.0.03C........................................ ad 2004 No 399
am F2016L01926
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 1.0.12 .......................................... am F2016L01926
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
Chapter 2A
Part 2A.1
r. 2A.1.01....................................... am. 2003 No. 85
rs. 2006 No. 41
Chapter 2C
Part 2C.1
Part 2C.1 heading .......................... ad. 2007 No. 227
rs. 2010 No. 332
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 13
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
Part 2C.2 heading .......................... 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
Part 2C.3 heading .......................... rep. 2010 No. 332
Division 2C.1.3 heading ................ ad. 2010 No. 332
r. 2C.3.01....................................... ad. 2007 No. 227
renumbered r. 2C.1.05 ................... 2010 No. 332
Chapter 2D
Chapter 2D .................................... rep. 2001 No. 319
ad. 2009 No. 51
r. 2D.1.02....................................... rep. 2001 No. 319
Part 2D.2
Part 2D.2 ....................................... 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
Chapter 2E..................................... ad. 2007 No. 198
r. 2E 1.01 ....................................... ad. 2007 No. 198
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
14 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
Chapter 2G
Chapter 2G .................................... ad. 2004 No. 208
Part 2G.2
Division 6
r. 2G.2.01....................................... ad. 2004 No. 208
Chapter 2K
r. 2K.2.01....................................... am. 2006 No. 57
r. 2K.2.03....................................... ad. 2006 No. 57
Chapter 2L
Chapter 2L..................................... ad. 2010 No. 54
Part 2L.2
r. 2L.2.01 ....................................... ad. 2010 No. 54
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; F2016L00514
Division 9 ...................................... 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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 15
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
r. 2M.6.05...................................... ad. 2006 No. 126
Chapter 2N
Chapter 2N .................................... ad. 2003 No. 194
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 5.2
r 5.2.01 (second occurring)............ renum F2016L01926
r 5.2.02 (prev r 5.2.01 second
occurring)
Part 5.3A
r 5.3A.01........................................ rep F2016L01926
r 5.3A.02........................................ rep F2016L01926
r 5.3A.03........................................ am No 399, 2004
rep F2016L01926
r 5.3A.03A..................................... ad No 114, 2012
am F2016L01926
r 5.3A.03AB .................................. ad No 114, 2012
rep F2016L01926
r 5.3A.04........................................ am No 399, 2004; No 325, 2007
rep F2016L01926
r 5.3A.06A..................................... ad No 114, 2012
am F2016L01926
r 5.3A.06AB .................................. ad No 114, 2012
rep F2016L01926
r 5.3A.07........................................ am No 399, 2004; No 325, 2007; No 114, 2012
rep F2016L01926
r 5.3A.07A..................................... ad No 114, 2012
am F2016L01926
r. 5.3A.08....................................... rep. 2007 No. 325
r. 5.3A.09....................................... rep. 2007 No. 325
Part 5.4
r 5.4.01A........................................ ad No 114, 2012
am F2016L01926
r 5.4.01B........................................ ad F2016L01926
r. 5.4.02 ......................................... ad. 2007 No. 325
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
16 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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 No 114, 2012
am F2016L01926
r 5.5.02 .......................................... ad No 114, 2012
rep F2016L01926
Part 5.6
r 5.6.01 .......................................... rep F2016L01926
r 5.6.02 .......................................... rep F2016L01926
r 5.6.06 .......................................... am No 325, 2007
rep F2016L01926
r 5.6.07 .......................................... am No 325, 2007
rep F2016L01926
r 5.6.08 .......................................... rep F2016L01926
r 5.6.09 .......................................... rep F2016L01926
r 5.6.10 .......................................... am No 325, 2007
rep F2016L01926
r 5.6.11 .......................................... am No 325, 2007
am F2016L01926
r 5.6.11A........................................ ad No 325, 2007
am F2016L01926
r 5.6.12 .......................................... am No 325, 2007
rep F2016L01926
r 5.6.13 .......................................... rep F2016L01926
r 5.6.13A........................................ rep F2016L01926
r 5.6.13B........................................ rep F2016L01926
r 5.6.14 .......................................... am No 325, 2007
rep F2016L01926
r 5.6.14A........................................ rs No 325, 2007
am No 114, 2012
rep F2016L01926
r 5.6.14B........................................ rep F2016L01926
r 5.6.15 .......................................... rep F2016L01926
r 5.6.16 .......................................... am No 325, 2007
rep F2016L01926
r 5.6.17 .......................................... am No 325, 2007
rep F2016L01926
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 17
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
r 5.6.18 .......................................... am No 325, 2007
rep F2016L01926
r 5.6.19 .......................................... rep F2016L01926
r 5.6.20 .......................................... rep F2016L01926
r 5.6.21 .......................................... am No 325, 2007
rep F2016L01926
r 5.6.22 .......................................... rep F2016L01926
r 5.6.23 .......................................... rep F2016L01926
r 5.6.23A........................................ ad No 325, 2007
rep F2016L01926
r 5.6.24 .......................................... am No 325, 2007
rep F2016L01926
r 5.6.26 .......................................... am No 325, 2007
rep F2016L01926
r 5.6.27 .......................................... am No 325, 2007
rep F2016L01926
r 5.6.28 .......................................... am No 325, 2007
rep F2016L01926
r 5.6.29 .......................................... rs No 325, 2007
rep F2016L01926
r 5.6.30 .......................................... rep F2016L01926
r 5.6.31 .......................................... am No 325, 2007
rep F2016L01926
r 5.6.31A........................................ rep F2016L01926
r 5.6.32 .......................................... rep F2016L01926
r 5.6.33 .......................................... rs No 325, 2007
rep F2016L01926
r 5.6.34 .......................................... rep F2016L01926
r 5.6.36 .......................................... rep F2016L01926
r 5.6.36A........................................ rep F2016L01926
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; F2016L01926
r 5.6.66 .......................................... am 2007 No. 325
r. 5.6.69 ......................................... am. 2012 No. 114
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
18 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
r. 5.6.70B....................................... ad. 2012 No. 114
r. 5.6.73 ......................................... ad. 2007 No. 325
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
am F2016L01926
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
Division 2.2 ................................... ad. 2010 No 88
r. 5D.2.03....................................... ad. 2010 No. 88
r. 5D.2.04....................................... ad. 2010 No. 88
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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 19
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
Chapter 6A .................................... ad. 2001 No. 319
Part 6A.1
r. 6A.1.01....................................... ad. 2001 No. 319
Chapter 6CA
Chapter 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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
20 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
Chapter 7
Chapter 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
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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 21
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
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
r. 7.1.21 ......................................... ad. 2001 No. 319
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
22 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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 7.1.28AA..................................... ad No 108, 2015
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
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
Division 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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 23
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
Division 5 ...................................... ad. 2003 No. 126
r. 7.1.40 ......................................... ad. 2003 No. 126
am. 2003 No. 368; 2005 No. 31; 2012 No. 42
Division 6
Division 6 ...................................... 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
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
Division 6 of Part 7.2..................... ad. 2002 No. 41
r. 7.2.16 ......................................... ad. 2002 No. 41
am. 2002 No. 126
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
24 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 25
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
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
am. 2002 No. 16
r. 7.5.10 ......................................... ad. 2001 No. 319
r. 7.5.11 ......................................... ad. 2001 No. 319
rep. 2005 No. 38
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
26 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 27
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
r. 7.5.31 ......................................... ad. 2001 No. 319
rep. 2005 No. 38
r. 7.5.32 ......................................... ad. 2001 No. 319
rep. 2002 No. 282
Subdivision 4.4.............................. 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
rep. 2002 No. 282
Subdivision 4.5.............................. 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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
28 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
Subdivision 4.6.............................. 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
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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 29
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
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
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
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))
am No 157, 2015
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
30 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
r 7.5A.50........................................ ad No 191, 2013
am No 185, 2014; No 157, 2015
Subdivision 2.1A
Subdivision 2.1A........................... ad No 157, 2015
r 7.5A.60........................................ ad No 157, 2015
r 7.5A.61........................................ ad No 157, 2015
r 7.5A.62........................................ ad No 157, 2015
r 7.5A.63........................................ ad No 157, 2015
am No 157, 2015
r 7.5A.64........................................ ad No 157, 2015
r 7.5A.65........................................ ad No 157, 2015
Subdivision 2.1B
Subdivision 2.1B ........................... ad No 157, 2015
r 7.5A.70........................................ ad No 157, 2015
r 7.5A.71........................................ ad No 157, 2015
r 7.5A.72........................................ ad No 157, 2015
r 7.5A.73........................................ ad No 157, 2015
r 7.5A.74........................................ ad No 157, 2015
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
rs No 185, 2014
r 7.5A.150B................................... ad No 88, 2014
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 31
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
ed C125
r. 7.6.01AAA................................. ad. 2010 No. 89
r. 7.6.01AA.................................... ad. 2008 No. 158
rep No 91, 2015
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); No 108, 2015
r. 7.6.02AC.................................... ad. 2005 No. 324
am No 102, 2014 (disallowed); No 108, 2015
r. 7.6.02AD.................................... ad. 2005 No. 324
am No 102, 2014 (disallowed); No 108, 2015
r. 7.6.02AE .................................... ad. 2005 No. 324
am No 102, 2014 (disallowed); No 108, 2015
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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
32 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
rep F2017L00117
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 No 319, 2001
am No 16, 2002; No 41; 2002; No 101, 2013; No 155, 2013; No 135, 2015
r 7.6.04AA..................................... ad No 135, 2015
r. 7.6.04A....................................... ad. 2003 No. 369
am. 2005 No. 324; 2008 No. 158; No 91, 2015
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
rep F2017L00117
r 7.6.06B........................................ ad No 3, 2015
rep F2017L00117
r 7.6.06C........................................ ad No 3, 2015
am F2017L00117
r. 7.6.07 ......................................... ad. 2001 No. 319
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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 33
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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; No 91, 2015
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
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
Division 2A ................................... ad. 2003 No. 369
r. 7.7.08A....................................... ad. 2003 No. 369
am. 2008 No. 158; 2010 No. 135; No 91, 2015
Division 2AA
Division 2AA ................................ ad. 2010 No. 89
r. 7.7.08B....................................... ad. 2010 No. 89
Division 2B
Division 2B ................................... ad. 2007 No. 324
r. 7.7.08C....................................... ad. 2007 No. 324
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
34 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
Division 3
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
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; No 91, 2015
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
am No 202, 2003; No 149, 2004
r. 7.7.13 ......................................... ad. 2004 No. 149
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 35
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
Division 6 ...................................... 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
am No 108, 2015
Division 2
Division 2 ...................................... ad. 2012 No. 268
Subdivision 1 heading ................... rep No 102, 2014 (disallowed); No 108, 2015
r. 7.7A.1......................................... ad. 2012 No. 268
rep No 102, 2014 (disallowed); No 108, 2015
r 7.7A.05........................................ ad No 108, 2015
r 7.7A.06........................................ ad No 108, 2015
r 7.7A.07........................................ ad No 108, 2015
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)
Division 3
Division 3 ...................................... 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
Division 4 ...................................... ad. 2012 No. 170
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
36 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
Subdivision 1
Subdivision 1................................. ad F2017L00212
r 7.7A.11A..................................... ad F2017L00212
r 7.7A.11B..................................... ad F2017L00212
r 7.7A.11C..................................... ad F2017L00212
r 7.7A.11D..................................... ad F2017L00212
Subdivision 2
Subdivision 1 heading ................... ad. 2012 No. 268
rs and renum F2017L00212
Subdivision 2 heading (prev
Subdivision 1 heading)
r. 7.7A.12....................................... ad. 2012 No. 170
rs. 2012 No. 268
am No 102, 2014 (disallowed); No 108, 2015
r. 7.7A.12A.................................... ad. 2012 No. 268
rep F2017L00212
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
Subdivision 3
Subdivision 3................................. ad F2017L00212
r 7.7A.12EB................................... ad No 102, 2014 (disallowed); F2017L00212
r 7.7A.12EC................................... ad No 102, 2014 (disallowed); F2017L00212
Subdivision 4
Subdivision 2 heading ................... rs and renum F2017L00212
Subdivision 4 heading (prev
Subdivision 2 heading)
Subdivision 2................................. 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); No 108, 2015
r. 7.7A.12I ..................................... ad. 2012 No. 268
am No 102, 2014 (disallowed)
r 7.7A.12J ...................................... ad No 102, 2014 (disallowed)
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 37
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
Subdivision 5
Subdivision 5 heading ................... ad F2017L00212
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 6
Subdivision 6................................. ad F2017L00212
r 7.7A.16G..................................... ad F2017L00212
r 7.7A.16H..................................... ad F2017L00212
Subdivision 7
Subdivision 3 heading ................... rs and renum F2017L00212
Subdivision 7 heading (prev
Subdivision 3 heading)
Subdivision 3................................. ad. No. 115, 2013
r. 7.7A.17....................................... ad. No. 115, 2013
r. 7.7A.18....................................... ad. No. 115, 2013
Division 6
Division 6 ...................................... ad. No. 83, 2013
r. 7.7A.40....................................... ad. No. 83, 2013
Part 7.8
r 7.8.01A........................................ ad F2016L01657
r. 7.8.01 ......................................... ad. 2001 No. 319
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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
38 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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 7.8.06B........................................ ad F2016L01657
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
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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 39
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
rep No 91, 2015
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
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; F2017L00321
Subdivision 2.3
r. 7.9.05 ......................................... ad. 2001 No. 319
Subdivision 2.4
Subdivision 2.4 heading ................ rs. 2002 No. 16
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
40 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
Subdivision 2.6.............................. rep. 2004 No. 145
r. 7.9.07AA.................................... ad. 2002 No. 145
rep. 2004 No. 145
Division 2A
Division 2A ................................... ad. 2002 No. 16
r. 7.9.07A....................................... ad. 2002 No. 16
Division 2B
Division 2B ................................... 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
Division 2C ................................... ad. 2003 No. 31
r. 7.9.07D....................................... ad. 2003 No. 31
am 2003 No. 282
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
Division 2D ................................... 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
Division 2E.................................... ad. No. 155, 2013
Subdivision 2E.1
r. 7.9.07L....................................... ad. No. 155, 2013
r. 7.9.07M...................................... ad. No. 155, 2013
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 41
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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 ................................... ad. 2008 No. 194
rep No 91, 2015
r. 7.9.08E....................................... ad. 2008 No. 194
rep No 91, 2015
Division 4
Subdivision 4.1
r. 7.9.09 ......................................... ad. 2001 No. 319
am. 2002 No. 16; 2008 No. 158; 2010 No. 135; No 91, 2015
Subdivision 4.1A
Subdivision 4.1A........................... 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
Subdivision 4.2.............................. ad. 2008 No. 158
rep No 91, 2015
r. 7.9.10 ......................................... ad No 319, 2001 (Sch 1 item 15 disallowed)
rs No 16, 2002 (Sch 1 item 78 disallowed)
ad No 158, 2008
rep No 91, 2015
r. 7.9.10A....................................... ad. 2008 No. 158
am 2011 No 66
rep No 91, 2015
r. 7.9.10B....................................... ad. 2008 No. 158
rep No 91, 2015
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
42 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
r. 7.9.10C....................................... ad. 2008 No. 158
rep No 91, 2015
r. 7.9.10D....................................... ad. 2008 No. 158
rs. 2008 No. 194
rep No 91, 2015
r. 7.9.10E....................................... ad. 2008 No. 158
am. 2008 No. 194
rep No 91, 2015
Subdivision 4.2A
Subdivision 4.2A........................... ad. 2010 No. 135
r. 7.9.11 ......................................... ad No 319, 2001 (Sch 1 item 15 disallowed)
am No 16, 2002 (Sch 1 items 79–82 disallowed)
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
Subdivision 4.2B
Subdivision 4.2B ........................... 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
Subdivision 4.2C ........................... ad. 2010 No. 135
r. 7.9.11S ....................................... ad. 2010 No. 135
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 43
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
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
rep No 91, 2015
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
Subdivision 4.4 heading ................ rs. 2002 No. 16
r. 7.9.14B....................................... ad. 2002 No. 16
Division 4A
Division 4A heading...................... 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
r. 7.9.15DA.................................... ad. 2007 No. 259
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
44 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
Division 4B ................................... ad. 2003 No. 369
r. 7.9.16G....................................... ad. 2003 No. 369
am. No. 26, 2013
Division 4C
Division 4C ................................... 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
Subdivision 4C.3
r. 7.9.16O....................................... ad. 2005 No. 31
Division 4D
Division 4D ................................... 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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 45
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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; F2017L00321
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
am. 2002 No. 16
Subdivision 5.4
Subdivision 5.4 heading ................ 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
Subdivision 5.4A........................... 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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
46 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
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
r. 7.9.58 ......................................... ad. 2001 No. 319
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 47
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
r. 7.9.59 ......................................... ad. 2001 No. 319
r. 7.9.60 ......................................... ad. 2001 No. 319
Subdivision 5.13 heading .............. rep. 2003 No. 368
Division 5AA
Division 5AA heading................... 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
Division 5AB................................. ad. 2005 No. 324
r. 7.9.61AA.................................... ad. 2005 No. 324
Division 5A
Division 5A ................................... 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
Division 5B ................................... ad. 2002 No. 16
r. 7.9.61D....................................... ad. 2002 No. 16
am. 2002 No. 41; 2003 No. 202
Division 5C
Division 5C ................................... 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; No 91, 2015
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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
48 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
rep No 91, 2015
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
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
rep No 91, 2015
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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 49
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
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
Division 9 ...................................... ad. 2002 No. 16
r. 7.9.81 ......................................... ad. 2002 No. 16
r. 7.9.82 ......................................... ad. 2002 No. 16
Division 10 .................................... ad. 2002 No. 16
rep. 2003 No. 369
r. 7.9.83 ......................................... ad. 2002 No. 16
rep. 2003 No. 369
Division 11
Division 11 .................................... 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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
50 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
r. 7.9.93 ......................................... ad. 2002 No. 16
am. 2003 No. 368
r. 7.9.94 ......................................... ad. 2002 No. 16
Division 12
Division 12 .................................... ad. 2003 No. 127
r. 7.9.95 ......................................... ad. 2003 No. 127
Division 13
Division 13 .................................... 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
Division 14 .................................... ad. 2005 No. 324
r. 7.9.98 ......................................... ad. 2005 No. 324
r. 7.9.98A....................................... ad. No. 172, 2012
Division 15
Division 15 .................................... 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 No 102, 2006
am No 247, 2012 ; No 25, 2013; No 33, 2014; No 88, 2014
rs No 185, 2014; No 92, 2015
am No 134, 2015; F2016L00156; F2017L00595
r 7.10.03 ........................................ ad No 33, 2014
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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 51
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
52 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
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
Chapter 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 301, 2010 (md not incorp); No 175, 2014
r. 8.2.02 ......................................... rep. 2001 No. 319
ad. 2008 No. 94
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 53
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
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; F2016L01926; F2017L00117
r 9.1.02 .......................................... am No 319, 2001; No 198, 2007; No 325, 2007; No 54, 2010; No 3, 2015; F2016L01926;
F2017L00117
Part 9.2
Part 9.2 heading............................. rs F2016L01926
Division 2
Division 2 heading......................... ad. 2004 No. 208
r. 9.2.01 ......................................... rs. 2004 No. 208
r 9.2.02 .......................................... rs No 208, 2004
am F2016L01926
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
Division 2A ................................... ad. 2004 No. 208
r. 9.2.08 ......................................... ad. 2004 No. 208
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
54 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
Part 9.2A
Part 9.2A ....................................... ad. 2004 No. 208
Division 1
r 9.2A.01........................................ ad No 208, 2004
am F2016L01926
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 No 41, 2002
rep No 145, 2002
ad No 59, 2013
r 9.12.05 ........................................ ad No 33, 2014
Chapter 10
Chapter 10 heading........................ rs No 135, 2015
Part 10.1 ........................................ rep LA s 48C
r 10.1.01 ........................................ rep LA s 48C
r 10.1.02 ........................................ rep LA s 48C
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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 55
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
Division 1A ................................... 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
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
Division 5A ................................... ad. 2002 No. 53
r. 10.2.20A..................................... ad. 2002 No. 53
Division 5B
Division 5B ................................... ad. 2002 No. 126
r. 10.2.20B..................................... ad. 2002 No. 126
Division 6
r. 10.2.21 ....................................... ad. 2001 No. 319
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
56 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
Division 8 ...................................... 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
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 No 319, 2001
rs No 31, 2003
am F2016L01926 (amdt never applied (Sch 1 item 96))
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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 57
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
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
Division 14 .................................... 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
r. 10.2.53 ....................................... ad. 2001 No. 319
am. 2002 No. 16
r. 10.2.54 ....................................... ad. 2001 No. 319
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
58 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 59
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
60 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
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
Division 24A ................................. 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
Division 25 .................................... ad. 2001 No. 319
r. 10.2.120 ..................................... ad. 2001 No. 319
Division 25A
Division 25A ................................. ad. 2002 No. 16
r. 10.2.120A................................... ad. 2002 No. 16
Division 25B
Division 25B ................................. 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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 61
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
r. 10.2.123 ..................................... ad. 2001 No. 319
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
Division 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
Division 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
r. 10.2.146 ..................................... ad. 2002 No. 16
am. 2002 No. 41
Division 30
Division 30 of Part 10.2................. ad. 2002 No. 16
r. 10.2.147 ..................................... ad. 2002 No. 16
r. 10.2.148 ..................................... ad No. 16, 2002
am No. 41, 2002
r. 10.2.149 ..................................... ad. 2002 No. 16
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
62 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
am. 2002 No. 41
r. 10.2.170 ..................................... ad. 2002 No. 16
Division 31
Division 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
Division 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
Division 33 of Part 10.2................. ad. 2002 No. 16
r. 10.2.180 ..................................... ad. 2002 No. 16
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 63
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
Division 34
Division 34 of Part 10.2................. ad. 2002 No. 16
r. 10.2.194 ..................................... ad. 2002 No. 16
Division 35
Division 35 of Part 10.2................. ad. 2002 No. 16
r. 10.2.195 ..................................... ad. 2002 No. 16
Division 36
Division 36 of Part 10.2................. ad. 2002 No. 16
r. 10.2.196 ..................................... ad. 2002 No. 16
Division 37
Division 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
Division 38 of Part 10.2................. ad. 2002 No. 16
r. 10.2.199 ..................................... ad. 2002 No. 16
Division 39
Division 39 of Part 10.2................. ad. 2002 No. 16
r. 10.2.200 ..................................... ad. 2002 No. 16
am. 2002 No. 41
Division 40
Division 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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
64 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
Division 41
Division 41 of Part 10.2................. ad. 2002 No. 16
r. 10.2.202 ..................................... ad. 2002 No. 16
am. 2003 No. 368
Division 42
Division 42 of Part 10.2................. ad. 2002 No. 16
r. 10.2.203 ..................................... ad. 2002 No. 16
Division 43
Division 43 of Part 10.2................. ad. 2002 No. 16
r. 10.2.204 ..................................... ad. 2002 No. 16
Division 44
Division 44 of Part 10.2................. ad. 2002 No. 16
r. 10.2.205 ..................................... ad. 2002 No. 16
Division 45
Division 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
Division 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
Division 47 of Part 10.2................. ad. 2002 No. 41
r. 10.2.210 ..................................... ad. 2002 No. 41
Division 48
Division 48 of Part 10.2................. ad. 2002 No. 41
r. 10.2.211 ..................................... ad. 2002 No. 41
Division 49
Division 49 of Part 10.2................. ad. 2002 No. 41
r. 10.2.212 ..................................... ad. 2002 No. 41
Division 50
Division 50 of Part 10.2................. ad. 2003 No. 85
r. 10.2.213 ..................................... ad. 2003 No. 85
Division 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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 65
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
Division 52
Division 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 r 10.14.02) ........... 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))
Part 10.19
Part 10.19 ...................................... ad No 155, 2013
r 10.19.01 ...................................... ad No 155, 2013
Part 10.20 ...................................... ad No 3, 2015
rep F2017L00117
r 10.20.01 ...................................... ad No 3, 2015
rep F2017L00117
r 10.20.02 ...................................... ad No 3, 2015
rep F2017L00117
r 10.20.03 ...................................... ad No 3, 2015
rep F2017L00117
r 10.20.04 ...................................... ad No 3, 2015
rep F2017L00117
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
66 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
r 10.20.05 ...................................... ad No 3, 2015
rep F2017L00117
r 10.20.06 ...................................... ad No 3, 2015
rep F2017L00117
r 10.20.07 ...................................... ad No 3, 2015
rep F2017L00117
r 10.20.08 ...................................... ad No 3, 2015
rep F2017L00117
r 10.20.09 ...................................... ad No 3, 2015
rep F2017L00117
r 10.20.10 ...................................... ad No 3, 2015
rep F2017L00117
r 10.20.11 ...................................... ad No 3, 2015
rep F2017L00117
r 10.20.12 ...................................... ad No 3, 2015
rep F2017L00117
r 10.20.13 ...................................... ad No 3, 2015
rep F2017L00117
r 10.20.14 ...................................... ad No 3, 2015
rep F2017L00117
r 10.20.15 ...................................... ad No 3, 2015
rep F2017L00117
r 10.20.16 ...................................... ad No 3, 2015
rep F2017L00117
r 10.20.17 ...................................... ad No 3, 2015
rep F2017L00117
Part 10.21
Part 10.21 ...................................... ad No 157, 2015
r 10.21.01 ...................................... ad No 157, 2015
Part 10.22
Part 10.22 ...................................... ad No 135, 2015
r 10.22.01 ...................................... ad No 135, 2015
r 10.22.02 ...................................... ad No 135, 2015
Part 10.23
Part 10.23 ...................................... ad F2016L00514
r 10.23.01 ...................................... ad F2016L00514
Part 10.24
Part 10.24 ...................................... ad F2016L01657
r 10.24.01 ...................................... ad F2016L01657
Part 10.25
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 67
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
Part 10.25 ...................................... ad F2016L01926
r 10.25.01 ...................................... ad F2016L01926
r 10.25.02 ...................................... ad F2016L01926
Part 10.25
Part 10.25 (second occurring)........ ad F2017L00321
r 10.25.01 (second occurring) ........ ad F2017L00321
Chapter 12
Part 12.6
r 12.1.01 ........................................ ed C124
r 12.06.01A.................................... ad No 184, 2010
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; F2016L01926
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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
68 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
Form 507A .................................... rep No 399, 2004
Form 508 ....................................... rep No 399, 2004
Form 509 ....................................... rep No 399, 2004
Form 509C .................................... rep F2016L01926
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 521 ....................................... rep F2016L01926
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 529A .................................... rep F2016L01926
Form 529B .................................... rep F2016L01926
Form 530 ....................................... rep F2016L01926
Form 531A .................................... rep F2016L01926
Form 531B .................................... am No 325, 2007
rep F2016L01926
Form 531C .................................... rep F2016L01926
Form 532 ....................................... rep F2016L01926
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 551 ....................................... ed C124
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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 69
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
Form 711 ....................................... rep No 319, 2001
Form 712 ....................................... rep No 319, 2001
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
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
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
70 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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
am No 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
ed C124
Schedule 8A
Schedule 8A .................................. am No 325, 2007
Schedule 8AA
Schedule 8AA ............................... ad No 88, 2010
am No 43, 2012; F2016L01902
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................................ ad No 88, 2010
Schedule 8B
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
Corporations Regulations 2001 71
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
Schedule 8B................................... ad No 15, 2002
Schedule 8C
Schedule 8C................................... ad No 26, 2004
am No 70., 2009
am No 190, 2013
Schedule 8D .................................. ad No 3, 2015
rep F2017L00117
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
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;
No 91, 2015; F2016L00710
Schedule 10AA
Schedule 10AA.............................. ad No 94, 2008
am No 301, 2010; No 175, 2014
Schedule 10B heading ................... am No 16, 2002
rep No 31, 2005
ad No 158, 2008
rep No 91, 2015
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
rep No 91, 2015
Schedule 10BA
Schedule 10BA.............................. ad No 324, 2005 (md)
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 4—Amendment history
72 Corporations Regulations 2001
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Provision affected How affected
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 ................................ ad No 135, 2010
am No 155, 2013
Schedule 10E
Schedule 10E................................. ad No 135, 2010
am No 274, 2011
Schedule 11
Schedule 11 ................................... am No 208, 2001
rep No 319, 2001
Schedule 10D heading...................
(second occurring)
rs and renum F2016L01926
Schedule 10D ................................
(second occurring)
ad No 319, 2001
am No 31, 2003; F2016L01926
Schedule 11 (prev Schedule 10D
second occurring)
Schedule 13
Schedule 13 ................................... ad F2016L01926
Authorised Version F2017C00544 registered 13/07/2017
Endnotes
Endnote 5—Miscellaneous
Corporations Regulations 2001 73
Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17
Endnote 5—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.
Authorised Version F2017C00544 registered 13/07/2017