Corporations Act 2001
CHAPTER 10
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TRANSITIONAL PROVISIONS
PART 10.18
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TRANSITIONAL AND APPLICATION PROVISIONS RELATING TO THE FUTURE OF FINANCIAL ADVICE MEASURES
Division 1
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Provisions relating to the Corporations Amendment (Further Future of Financial Advice Measures) Act 2012
SECTION 1526
DEFINITIONS
1526(1)
In this Part:
1526(2)
The definition of custodial arrangement in subsection 1012IA(1) is to be read as if the reference in that definition to an instruction included a reference to:
(a) a direction of the kind mentioned in paragraph 58(2)(d) or (da) of the Superannuation Industry (Supervision) Act 1993 that will involve the acquisition of a particular financial product, or a financial product of a particular kind; and
(b) a direction of the kind mentioned in subsection 52B(4) ofthe Superannuation Industry (Supervision) Act 1993 that will involve the acquisition of a particular financial product, or a financial product of a particular kind.
SECTION 1527 APPLICATION OF BEST INTERESTS OBLIGATIONS 1527(1)
The following apply in relation to the provision of personal advice to a person as a retail client on or after the application day (whether or not the advice was sought before that day):
(a) Division 2 of Part 7.7A , as inserted by item 23 of Schedule 1 to the amending Act;
(b) the amendments made by items 6, 7, 8, 9 and 34 of Schedule 1 to the amending Act.
1527(2)
In this section:
(a) if the financial services licensee has lodged notice with ASIC in accordance with subsection 967(1) that the obligations and prohibitions imposed under Part 7.7A are to apply to the licensee and persons acting as representatives of the licensee on and from the day specified in the notice - the day specified in the notice; or
(b) if the person has not lodged such a notice - 1 July 2013.
SECTION 1528
APPLICATION OF BAN ON CONFLICTED REMUNERATION
1528(1)
Subject to subsections (1A) and (2) , Division 4 of Part 7.7A , as inserted by item 24 of Schedule 1 to the amending Act, applies to a benefit given to a financial services licensee, or a representative of a financial services licensee, if: (a) the benefit is given under an arrangement entered into on or after the application day; or (b) the benefit is given by a platform operator.
1528(1A)
Subject to subsection (2), Division 4 of Part 7.7A , as inserted by item 24 of Schedule 1 to the amending Act, applies to a benefit given on or after 1 January 2021 to a financial services licensee, or a representative of a financial services licensee, if the benefit is given under an arrangement entered into before, on or after the application day.
1528(2)
The regulations may prescribe circumstances in which that Division applies, or does not apply, to a benefit given to a financial services licensee or a representative of a financial services licensee.
1528(3)
Section 1350 does not apply in relation to the operation of that Division in respect of a benefit given to a financial services licensee, or a representative of a financial services licensee.
1528(4)
In this section:
(a) in relation to a financial services licensee or a person acting as a representative of a financial services licensee, means:
(b) in relation to any other person who would be subject to an obligation or prohibition under Division 4 of Part 7.7A if it applied, means:
SECTION 1529
APPLICATION OF BAN ON OTHER REMUNERATION
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VOLUME-BASED SHELF-SPACE FEES
1529(1)
Subject to subsections (1A) and (2), Subdivision A of Division 5 of Part 7.7A , as inserted by item 24 of Schedule 1 to the amending Act, applies to a benefit given to a financial services licensee, or an RSE licensee, under an arrangement entered into on or after the application day.
1529(1A)
Subject to subsection (2), Subdivision A of Division 5 of Part 7.7A , as inserted by item 24 of Schedule 1 to the amending Act, applies to a benefit given on or after 1 January 2021 to a financial services licensee, or an RSE licensee, under an arrangement entered into before, on or after the application day.
1529(2)
The regulations may prescribe circumstances in which that Subdivision applies to a benefit given to a financial services licensee, or an RSE licensee, under an arrangement entered into before the application day.
1529(2A)
Section 1350 does not apply in relation to the operation of that Subdivision in respect of a benefit given to a financial services licensee, or an RSE licensee.
1529(3)
In this section:
(a) in relation to a financial services licensee or a person acting as a representative of a financial services licensee, means:
(b) in relation to any other person who would be subject to an obligation or prohibition under Subdivision A of Division 5 of Part 7.7A if it applied, means:
SECTION 1530
1530
SECTION 1350 DOES NOT APPLY TO REGULATIONS MADE FOR THE PURPOSES OF SUBSECTION 1528(2) OR 1529(2)
Section 1350 does not apply in relation to regulations made for the purposes of subsection 1528(2) or 1529(2) .
SECTION 1531
APPLICATION OF BAN ON OTHER REMUNERATION
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ASSET-BASED FEES ON BORROWED AMOUNTS
1531(1)
Subject to subsection (1A) , Subdivision B of Division 5 of Part 7.7A , as inserted by item 24 of Schedule 1 to the amending Act, applies to asset-based fees charged on or after the application day on borrowed amounts, but only to the extent that those amounts are used or to be used to acquire financial products on or after that day.
1531(1A)
Subdivision B of Division 5 of Part 7.7A , as inserted by item 24 of Schedule 1 to the amending Act, applies to asset-based fees charged on or after 1 January 2021 on borrowed amounts, where those amounts have been used, are used or are to be used, to any extent, to acquire financial products before, on or after the application day.
1531(2)
Section 1350 does not apply in relation to the operation of that Subdivision in respect of an asset-based fee.
1531(3)
In this section:
(a) if the financial services licensee has lodged notice with ASIC in accordance with subsection 967(1) that the obligations and prohibitions imposed under Part 7.7A are to apply to the licensee and persons acting as representatives of the licensee on and from the day specified in the notice - the day specified in the notice; or
(b) if the person has not lodged such a notice - 1 July 2013.
Division 2
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Provisions relating to the Corporations Amendment (Financial Advice Measures) Act 2016
SECTION 1531A
1531A
DEFINITIONS
In this Division:
SECTION 1531B
1531B
BEST INTERESTS OBLIGATION
The amendments made by items 12, 14A and 16 of Schedule 1 to the Corporations Amendment (Financial Advice Measures) Act 2016 apply in relation to the provision of personal advice to a person as a retail client on or after the commencement day.
SECTION 1531C
RENEWAL NOTICES (OPT-IN REQUIREMENT)
1531C(1)
The amendment made by item 21 of Schedule 1 to the Corporations Amendment (Financial Advice Measures) Act 2016 applies in relation to an ongoing fee arrangement for those renewal notice days for the arrangement that occur on or after the commencement day.
1531C(2)
In this item:
The amendments made by items 20A, 20B and 22 of Schedule 1 to the Corporations Amendment (Financial Advice Measures) Act 2016 apply in relation to an ongoing fee arrangement for those disclosure days for the arrangement that occur on or after the commencement day.
SECTION 1531E
1531E
CONFLICTED REMUNERATION
The amendments made by items 23 to 35 of Schedule 1 to the Corporations Amendment (Financial Advice Measures) Act 2016 apply in relation to a benefit if:
(a) the benefit is one to which Division 4 of Part 7.7A applies under section 1528 ; and
(b) the benefit is given on or after the commencement day.
View history note
Hide history noteIn this Part:
amending Act
means the
Corporations Amendment (Further Future of Financial Advice Measures) Act 2012
.
custodial arrangement
has the same meaning as it has in subsection
1012IA(1)
, subject to subsection (2).
platform operator
means the provider of a custodial arrangement, or custodial arrangements.
provider
, in relation to a custodial arrangement, has the same meaning as in subsection
1012IA(1)
.
1526(2)
The definition of custodial arrangement in subsection 1012IA(1) is to be read as if the reference in that definition to an instruction included a reference to:
(a) a direction of the kind mentioned in paragraph 58(2)(d) or (da) of the Superannuation Industry (Supervision) Act 1993 that will involve the acquisition of a particular financial product, or a financial product of a particular kind; and
(b) a direction of the kind mentioned in subsection 52B(4) ofthe Superannuation Industry (Supervision) Act 1993 that will involve the acquisition of a particular financial product, or a financial product of a particular kind.
SECTION 1527 APPLICATION OF BEST INTERESTS OBLIGATIONS 1527(1)
The following apply in relation to the provision of personal advice to a person as a retail client on or after the application day (whether or not the advice was sought before that day):
(a) Division 2 of Part 7.7A , as inserted by item 23 of Schedule 1 to the amending Act;
(b) the amendments made by items 6, 7, 8, 9 and 34 of Schedule 1 to the amending Act.
1527(2)
In this section:
application day
, in relation to a financial services licensee or a person acting as a representative of a financial services licensee, means:
(a) if the financial services licensee has lodged notice with ASIC in accordance with subsection 967(1) that the obligations and prohibitions imposed under Part 7.7A are to apply to the licensee and persons acting as representatives of the licensee on and from the day specified in the notice - the day specified in the notice; or
(b) if the person has not lodged such a notice - 1 July 2013.
Subject to subsections (1A) and (2) , Division 4 of Part 7.7A , as inserted by item 24 of Schedule 1 to the amending Act, applies to a benefit given to a financial services licensee, or a representative of a financial services licensee, if: (a) the benefit is given under an arrangement entered into on or after the application day; or (b) the benefit is given by a platform operator.
1528(1A)
Subject to subsection (2), Division 4 of Part 7.7A , as inserted by item 24 of Schedule 1 to the amending Act, applies to a benefit given on or after 1 January 2021 to a financial services licensee, or a representative of a financial services licensee, if the benefit is given under an arrangement entered into before, on or after the application day.
1528(2)
The regulations may prescribe circumstances in which that Division applies, or does not apply, to a benefit given to a financial services licensee or a representative of a financial services licensee.
1528(3)
Section 1350 does not apply in relation to the operation of that Division in respect of a benefit given to a financial services licensee, or a representative of a financial services licensee.
1528(4)
In this section:
(a) in relation to a financial services licensee or a person acting as a representative of a financial services licensee, means:
(i) if the financial services licensee has lodged notice with ASIC in accordance with subsection 967(1) that the obligations and prohibitions imposed under Part 7.7A are to apply to the licensee and persons acting as representatives of the licensee on and from a day specified in the notice - the day specified in the notice; or
(ii) in any other case - 1 July 2013; and
(b) in relation to any other person who would be subject to an obligation or prohibition under Division 4 of Part 7.7A if it applied, means:
(i) if a notice has been lodged with ASIC in accordance with subsection 967(3) that the obligations and prohibitions imposed under Part 7.7A are to apply to the person on and from a day specified in the notice - the day specified in the notice; or
(ii) in any other case - 1 July 2013.
Subject to subsections (1A) and (2), Subdivision A of Division 5 of Part 7.7A , as inserted by item 24 of Schedule 1 to the amending Act, applies to a benefit given to a financial services licensee, or an RSE licensee, under an arrangement entered into on or after the application day.
1529(1A)
Subject to subsection (2), Subdivision A of Division 5 of Part 7.7A , as inserted by item 24 of Schedule 1 to the amending Act, applies to a benefit given on or after 1 January 2021 to a financial services licensee, or an RSE licensee, under an arrangement entered into before, on or after the application day.
1529(2)
The regulations may prescribe circumstances in which that Subdivision applies to a benefit given to a financial services licensee, or an RSE licensee, under an arrangement entered into before the application day.
1529(2A)
Section 1350 does not apply in relation to the operation of that Subdivision in respect of a benefit given to a financial services licensee, or an RSE licensee.
1529(3)
In this section:
(a) in relation to a financial services licensee or a person acting as a representative of a financial services licensee, means:
(i) if the financial services licensee has lodged notice with ASIC in accordance with subsection 967(1) that the obligations and prohibitions imposed under Part 7.7A are to apply to the licensee and persons acting as representatives of the licensee on and from a day specified in the notice - the day specified in the notice; or
(ii) in any other case - 1 July 2013; and
(b) in relation to any other person who would be subject to an obligation or prohibition under Subdivision A of Division 5 of Part 7.7A if it applied, means:
(i) if a notice has been lodged with ASIC in accordance with subsection 967(3) that the obligations and prohibitions imposed under Part 7.7A are to apply to the person on and from the day specified in the notice - the day specified in the notice; or
(ii) in any other case - 1 July 2013.
Section 1350 does not apply in relation to regulations made for the purposes of subsection 1528(2) or 1529(2) .
Subject to subsection (1A) , Subdivision B of Division 5 of Part 7.7A , as inserted by item 24 of Schedule 1 to the amending Act, applies to asset-based fees charged on or after the application day on borrowed amounts, but only to the extent that those amounts are used or to be used to acquire financial products on or after that day.
1531(1A)
Subdivision B of Division 5 of Part 7.7A , as inserted by item 24 of Schedule 1 to the amending Act, applies to asset-based fees charged on or after 1 January 2021 on borrowed amounts, where those amounts have been used, are used or are to be used, to any extent, to acquire financial products before, on or after the application day.
1531(2)
Section 1350 does not apply in relation to the operation of that Subdivision in respect of an asset-based fee.
1531(3)
In this section:
application day
, in relation to a financial services licensee or a person acting as a representative of a financial services licensee, means:
(a) if the financial services licensee has lodged notice with ASIC in accordance with subsection 967(1) that the obligations and prohibitions imposed under Part 7.7A are to apply to the licensee and persons acting as representatives of the licensee on and from the day specified in the notice - the day specified in the notice; or
(b) if the person has not lodged such a notice - 1 July 2013.
In this Division:
commencement day
means the day on which Schedule 1 to the
Corporations Amendment (Financial Advice Measures) Act 2016
commences.
The amendments made by items 12, 14A and 16 of Schedule 1 to the Corporations Amendment (Financial Advice Measures) Act 2016 apply in relation to the provision of personal advice to a person as a retail client on or after the commencement day.
The amendment made by item 21 of Schedule 1 to the Corporations Amendment (Financial Advice Measures) Act 2016 applies in relation to an ongoing fee arrangement for those renewal notice days for the arrangement that occur on or after the commencement day.
1531C(2)
In this item:
renewal notice day
for an ongoing fee arrangement has the same meaning as it has in Part
7.7A
, as in force immediately before the commencement day.
SECTION 1531D
1531D
DISCLOSURE STATEMENTS
The amendments made by items 20A, 20B and 22 of Schedule 1 to the Corporations Amendment (Financial Advice Measures) Act 2016 apply in relation to an ongoing fee arrangement for those disclosure days for the arrangement that occur on or after the commencement day.
The amendments made by items 23 to 35 of Schedule 1 to the Corporations Amendment (Financial Advice Measures) Act 2016 apply in relation to a benefit if:
(a) the benefit is one to which Division 4 of Part 7.7A applies under section 1528 ; and
(b) the benefit is given on or after the commencement day.