Financial Sector Reform (Hayne Royal Commission Response - Better Advice) Act 2021 (115 of 2021)

Schedule 2   Later amendments

Corporations Act 2001

1   Division 8C of Part 7.6

Repeal the Division, substitute:

Division 8C - Registration for the purpose of providing personal advice

921Y Unregistered relevant providers not to provide personal advice

A relevant provider must not provide personal advice to retail clients in relation to relevant financial products unless a registration of the relevant provider under subsection 921ZC(1) is in force.

Note 1: This section is a restricted civil penalty provision (see sections 921Q and 1317E).

Note 2: See also Division 2 (requirement to be licensed or authorised) and Subdivision AA of Division 8A (limitations on authorisation to provide personal advice).

921ZA Application for registration

(1) A person may apply to the Registrar to be registered under subsection 921ZC(1).

(2) The application must:

(a) meet any requirements of the data standards; and

(b) include the following declarations by the person:

(i) that the person is a fit and proper person to provide personal advice to retail clients in relation to relevant financial products;

(ii) if subsection 921BA(1) applies to the person - that the person has met the education and training standard in subsection 921B(2);

(iii) if subsection 921BA(2) applies to the person - that the person has met the education and training standard in subsection 921B(3);

(iv) if subsection 921BA(3) applies to the person - that the person has met the education and training standard in subsection 921B(4);

(v) if the person provides, or is to provide, a tax (financial) advice service and a determination is in force under subsection 921BB(1) - that the person meets each requirement set out in the determination that is of a kind mentioned in any of paragraphs (a) to (d) of that subsection.

Note: A person may commit an offence or contravene a civil penalty provision if the person gives false or misleading information (see section 1308 of this Act and section 137.1 of the Criminal Code).

(3) Subject to Part VIIC of the Crimes Act 1914, the person must have regard to the matters specified in section 921U (other than the matters specified in paragraphs (h) and (l) of that section) for the purposes of making a declaration mentioned in subparagraph (2)(b)(i) of this section.

Note: Part VIIC of the Crimes Act 1914 includes provisions that, in certain circumstances, relieve persons from the requirement to disclose spent convictions and require persons aware of such convictions to disregard them.

921ZC Registration

(1) Subject to subsections (2) and (3), if:

(a) a person makes an application in accordance with section 921ZA or 921ZD; and

(b) the Registrar is satisfied that the person's identity has been established;

the Registrar must register the person by recording in the records maintained under section 922A that the person is registered under this subsection.

Refusal to register person

(2) The Registrar must refuse to register the person if:

(a) a banning order is in force against the person that has the effect that the person is prohibited from providing personal advice to retail clients in relation to relevant financial products; or

(b) a disqualification order under Division 8 is in force against the person that has the effect of disqualifying the person from providing personal advice to retail clients in relation to relevant financial products.

(3) If a registration prohibition order is in force against the person, the Registrar must refuse to register the person until after the prohibition end day specified in the order.

Notice of new registration

(4) If the person made an application in accordance with section 921ZA and the Registrar registers the person under subsection (1), the Registrar must give the person a written notice of the registration as soon as practicable after doing so.

Notice of refusal to register person

(5) If the Registrar refuses to register the person, the Registrar must, within 5 business days after the refusal, give the person a written notice of the refusal.

(6) The notice must specify which of the following provisions apply in relation to the person:

(a) paragraph (2)(a) or (b);

(b) subsection (3).

921ZD Application for registration renewal

(1) If a person is registered under subsection 921ZC(1), and the registration is in force, the person may apply to the Registrar to renew (or further renew) that registration.

(2) Subsections 921ZA(2) and (3) apply in relation to an application under subsection (1) of this section in the same manner as they apply in relation to an application under subsection 921ZA(1).

921ZE Period of registration

(1) If a person makes an application in accordance with section 921ZA, and the Registrar registers the person under subsection 921ZC(1), the registration:

(a) comes into force when the Registrar records in the records maintained under section 922A that the person is registered under subsection 921ZC(1); and

(b) remains in force until the earliest of the following:

(i) the cancellation time specified in a registration prohibition order in force against the person;

(ii) the time when a banning order against the person takes effect;

(iii) the end of the financial year in which the person was registered.

(2) If a person makes an application under subsection 921ZD(1), and the Registrar registers the person under subsection 921ZC(1), the registration:

(a) comes into force immediately after the end of the financial year in which the application is made; and

(b) remains in force until the earliest of the following:

(i) the cancellation time specified in a registration prohibition order in force against the person;

(ii) the time when a banning order against the person takes effect;

(iii) the end of the next financial year.