Corporations Regulations 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.7 - FINANCIAL SERVICE DISCLOSURE  

Division 2 - Financial Services Guide  

REGULATION 7.7.07   FINANCIAL SERVICES GUIDE GIVEN BY AUTHORISED REPRESENTATIVE OF FINANCIAL SERVICES LICENSEE: REMUNERATION, COMMISSION AND BENEFITS  

7.7.07(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.

Note: This regulation is also relevant to website disclosure information made available in accordance with Division 2A of Part 7.7 of the Act (see paragraph 943J(b) of the Act).

7.7.07(2)   Overview of regulation.  

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) .

7.7.07(3)   If remuneration is ascertainable at the time FSG is given.  

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.

7.7.07(4)   If remuneration is not ascertainable at the time FSG is given and personal advice will be given.  

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.

7.7.07(5)   If remuneration is not ascertainable at the time FSG is given and personal advice will not be given.  

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.

Note: If website disclosure information is made available in accordance with Division 2A of Part 7.7 of the Act, the statement required by subparagraph (d)(ii) of this subregulation must set out that the client may request particulars of the remuneration (including commissions) or other benefits but that the request must be made before any financial service identified in the website disclosure information is provided to the client.