Corporations Amendment Regulations 2004 (No. 3) (26 of 2004)

Schedule 2   Amendments commencing on 11 March 2004

[47]   After regulation 7.6.02

insert

7.6.02AA Modification of section 912B of the Act: professional indemnity insurance and security instead of compensation arrangements

(1) For paragraph 926B (1) (c) of the Act, Part 7.6 of the Act applies as if section 912B of the Act were modified by substituting that section with the following:

' 912B Financial services provided to persons as retail clients - requirements in certain circumstances

(1) Subsection (2) applies in relation to a financial services licensee if the licensee's financial services licence authorises the licensee to carry on an activity:

(a) to which paragraph 19 (1) (b) or subparagraph 31B (1) (a) (ii) or (b) (ii) of the Insurance (Agents and Brokers) Act 1984 (the repealed Act ) would have applied if that Act were not repealed; and

(b) for which the licensee would have been required under those provisions to have in force an acceptable contract of professional indemnity insurance.

(2) The repealed Act, and any associated provisions, continue to apply in relation to the licensee to the extent necessary to require the licensee to have in force an acceptable contract of professional indemnity insurance in relation to the activity.

(3) Subsections (4) and (5) apply in relation to a financial services licensee if the licensee's financial services licence authorises the licensee to carry on an activity:

(a) to which Part 7.3 of the old Corporations Act would have applied if that Part were not repealed; and

(b) for which the licensee would have been required under that Part to have a dealers licence or investment advisers licence that could have been subject to the condition specified in paragraph 786 (2) (d) of the old Corporations Act.

(4) Section 914A of the Act is taken to authorise ASIC to impose the condition specified in paragraph 786 (2) (d) of the old Corporations Act as a condition of the licensee's financial services licence.

(5) If ASIC acts under subsection (4), Part 7.3 of the old Corporations Act, and any associated provisions, continue to apply to the extent necessary to specify the content of the condition specified in paragraph 786 (2) (d) of the old Corporations Act.'

(6) In this section:

associated provisions , in relation to provisions (the core provisions ) of a particular Act as in force at a particular time, include (but are not limited to):

(a) any regulations or other instruments that are or were in force for the purposes of any of the core provisions at that time; and

(b) any interpretation provisions that apply or applied in relation to any of the core provisions at that time (whether or not they also apply or applied for other purposes); and

(c) any provisions relating to liability (civil or criminal) that apply or applied in relation to any of the core provisions at that time (whether or not they also apply or applied for other purposes); and

(d) any provisions that limit or limited, or that otherwise affect or affected, the operation of any of the core provisions at that time (whether or not they also limit or limited, or affect or affected, the operation of other provisions).

old Corporations Act means this Act as in force immediately before the FSR commencement.'.

(2) This regulation ceases to apply at the end of 10 March 2005.