Corporations Act 2001
Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .
View history note
Hide history noteCCH note - modifying legislative instruments: The application of Pt 7.7 is affected by the following legislative instruments that commenced or were amended on or after 1 January 2022: Class Order 14/1262: Relief for 31 Day Notice Term Deposits; the ASIC Corporations (Disclosure of Lack of Independence) Instrument 2021/125 (as amended by ASIC Corporations (Amendment) Instrument 2024/554); and the ASIC Corporations (Investor Directed Portfolio Services) Instrument 2023/669 (as amended by ASIC Corporations (Amendment) Instrument 2024/554).
For other legislative instruments or class orders that affect the application of Pt 7.7, please consult the legislative instruments or class orders directly. These are reproduced in the regulatory-resources section of the company-law practice area in CCH iKnowConnect.
CCH Note: Division 4 is modified by the ASIC Corporations (Superannuation Calculators and Retirement Estimates) Instrument 2022/603 and the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716.
CCH Note: Section 949B is modified by the ASIC Corporations (Superannuation Calculators and Retirement Estimates) Instrument 2022/603 and the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716.
The regulations may impose disclosure requirements, or additional disclosure requirements, to be complied with in any of the following situations:
(a) a financial service related to a risk insurance product or an investment life insurance product is provided to a person as a retail client by a financial services licensee, or an authorised representative of a financial services licensee, acting under a binder;
(b) a financial services licensee, or an authorised representative of a financial services licensee, arranges for a person ' s instructions to be carried out through a financial market or a clearing and settlement facility (whether inside or outside Australia) that is not a licensed market or a licensed CS facility;
[ CCH Note: There is no paragraph 949B(1)(c).]
(d) a financial service is provided by a person who does not need an Australian financial services licence because the person is covered by an exemption under paragraph 911A(2)(k) or (l);
(e) a financial service is provided to a person as a wholesale client.
949B(2)
A person to whom regulations made for the purposes of subsection (1) apply must comply with any applicable requirements in those regulations.
Note: Failure to comply with this subsection is an offence (see subsection 1311(1) ).
949B(3)
In any proceedings against an authorised representative of a financial services licensee for an offence based on subsection (2), it is a defence if:
(a) the licensee had provided the authorised representative with information or instructions about the requirements to be complied with in relation to the matter dealt with in the requirement in the regulations; and
(b) the representative ' s failure to comply with the requirement in the regulations occurred because the representative was acting in reliance on that information or those instructions; and
(c) the representative ' s reliance on that information or those instructions was reasonable.
Note: A defendant bears an evidential burden in relation to the matters in subsection (3). See subsection 13.3(3) of the Criminal Code .
949B(4)
A financial services licensee must take reasonable steps to ensure that an authorised representative of the licensee complies with subsection (2).
Note: Failure to comply with this subsection is an offence (see subsection 1311(1) ).
[ CCH Note: The next Division is Div 6.]
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