Corporations Act 2001

CHAPTER 10 - TRANSITIONAL PROVISIONS  

PART 10.23A - TRANSITIONAL PROVISIONS RELATING TO THE CORPORATIONS AMENDMENT (PROFESSIONAL STANDARDS OF FINANCIAL ADVISERS) ACT 2017  

Division 1 - Definitions  

SECTION 1546A  

1546A   DEFINITIONS  

In this Part:

amending Act
means the Corporations Amendment (Professional Standards of Financial Advisers) Act 2017 .

commencement
means the start of the day Part 1 of Schedule 1 to the amending Act commences.

education and training standards
has the meaning given by section 921B .

existing provider
means:

(a) a person who:

(i) is a relevant provider at any time between 1 January 2016 and 1 January 2019; and

(ii) is not banned or disqualified under Division 8 of Part 7.6 on 1 January 2019; and

(iii) is not, on that day, subject to an enforceable undertaking under section 93AA of the ASIC Act to not provide financial product advice or a financial service; or

(b) a person who:

(i) at any time between 1 January 2016 and 1 January 2019, provides personal advice in a foreign country to retail clients in relation to relevant financial products; and

(ii) is not prohibited under the law of the foreign country from providing such advice on 1 January 2019.

foreign country
includes a region, where:

(a) the region is a colony, territory or protectorate of a foreign country; or

(b) the region is part of a foreign country; or

(c) the region is under the protection of a foreign country; or

(d) a foreign country exercises jurisdiction or control over the region; or

(e) a foreign country is responsible for the region ' s international relations.

relevant financial products
has the meaning given by section 910A .

relevant provider
has the meaning given by section 910A .

Division 2 - Application and transitional provisions  

SECTION 1546B  

1546B   EXISTING PROVIDERS TO MEET CERTAIN EDUCATION AND TRAINING STANDARDS  
(Repealed by No 115 of 2021, s 3, Sch 1[92] (effective 1 January 2022).)

SECTION 1546C   APPLICATION OF LIMITATION ON AUTHORISATION TO PROVIDE PERSONAL ADVICE AND OFFENCE  

Limitation on authorisation to provide personal advice

1546C(1)    
Section 921C , as inserted by the amending Act, applies in relation to:

(a)    

any Australian financial services licence granted on or after 1 January 2019 to a person who is not an existing provider; and

(b)    

any authorisation given on or after that day to a person who is not an existing provider.

Note: Section 921C provides that a person cannot be granted a licence, or be authorised, to provide certain financial advice unless the person meets certain conditions.

1546C(2) - (4)    
(Repealed by No 115 of 2021, s 3, Sch 1[93] (effective 1 January 2022).)

Restriction on use of terms " financial adviser " and " financial planner "

1546C(5)    
The following provisions, as inserted by the amending Act, apply on and after 1 January 2019:

(a)    section 923C ;

(b)    items 269AAA and 269AAB of the table in Schedule 3 .

Note: Those provisions relate to offences for using the terms " financial adviser " and " financial planner " .

SECTION 1546D  

1546D   APPLICATION OF REQUIREMENTS RELATING TO PROVISIONAL RELEVANT PROVIDERS  

Section 921F , as inserted by the amending Act, applies in relation to any authorisation given on or after 1 January 2019 to a person who is not an existing provider.

Note: Section 921F sets out the requirements in relation to a person who is a provisional relevant provider.

SECTION 1546E   APPLICATION OF CONTINUING PROFESSIONAL DEVELOPMENT STANDARD FOR RELEVANT PROVIDERS  

1546E(1)    
Sections 921D and 922HA , as inserted by the amending Act, apply on and after 1 January 2019.

Note: Section 921D provides that certain relevant providers must meet the continuing professional development standard. Section 922HA requires ASIC to be notified of the day on which a financial services licensee ' s CPD year is to begin.

1546E(2)    
Sections 922HB and 922HC , as inserted by the amending Act, apply in relation to any CPD year of a financial services licensee that begins on or after 1 January 2019.

Note: Section 922HB requires ASIC to be notified if relevant providers do not comply with the continuing professional development standard. Section 922HC requires a financial services licensee to retain evidence of the continuing professional development of relevant providers.

1546E(3)    
Section 922N , as inserted by the amending Act, applies in relation to a request made of a person on or after 1 January 2019 for the purposes of subparagraph 922N(1)(c)(iii) .

Note: Among other things, section 922N allows a financial services licensee to ask a person to provide information relating to whether the licensee must lodge a notice under section 922HB .

1546E(4)    
Subsection (5) applies if:

(a)    the first CPD year of a financial services licensee commences after 1 January 2019; and

(b)    before the start of the licensee ' s first CPD year:

(i) the licensee is a relevant provider; or

(ii) a relevant provider is authorised to provide personal advice to retail clients, on behalf of the licensee, in relation to relevant financial products.

1546E(5)    
Sections 922HB , 922HC and 922Q , as inserted by the amending Act, apply as if a reference in those sections to a financial services licensee ' s CPD year included a reference to the period:

(a)    beginning on the later of 1 January 2019 and:

(i) if subparagraph (4)(b)(i) applies - the day the licensee is granted an Australian financial services licence that covers the provision of personal advice to retail clients in relation to relevant financial products; and

(ii) if subparagraph (4)(b)(ii) applies - the first day the relevant provider is authorised to provide personal advice to retail clients, on behalf of the licensee, in relation to relevant financial products; and

(b)    ending on the day before the licensee ' s first CPD year.

Note: Among other things, section 922Q requires failures of relevant providers to comply with the continuing education standard to be entered on the Register.

SECTION 1546F  

1546F   APPLICATION OF CODE OF ETHICS TO RELEVANT PROVIDERS  

Sections 921E and 922HD , as inserted by the amending Act, apply on and after 1 January 2020.

Note: Section 921E requires a relevant provider to comply with the Code of Ethics. Section 922HD requires ASIC to be notified of failures to comply with the Code of Ethics.

SECTION 1546G   APPLICATION OF OBLIGATIONS IN RELATION TO COMPLIANCE SCHEMES  

1546G(1)    
Section 921H , as inserted by the amending Act, applies on and after 15 November 2019:

(a) in relation to a person who becomes a financial services licensee on or after that day; and

(b) for a person who becomes a financial services licensee before that day:

(i) in relation to a person who becomes a relevant provider on or after that day; and

(ii) in relation to a person who becomes a relevant provider before that day as if subsection 921H(2) required the scheme to cover the relevant provider by 1 January 2020.

Note: Section 921H requires a financial services licensee to ensure that a compliance scheme covers each of its relevant providers.

1546G(2)    
Section 921J , as inserted by the amending Act, applies on and after 15 November 2019.

Note: Section 921J sets out when a compliance scheme covers a relevant provider.

1546G(3)    
Sections 921K , 921Q , 921R and 921T , as inserted by the amending Act, apply on and after the day this section commences.

Note: Section 921K provides that a monitoring body for a compliance scheme may apply to ASIC for approval of the scheme. Section 921Q provides that ASIC may request information about a compliance scheme from the monitoring body for the scheme. Section 921R provides that a monitoring body may propose to modify a scheme in certain circumstances. Section 921T requires a monitoring body to notify ASIC of certain reductions in the body ' s resources or expertise.

1546G(4)    
Sections 921L , 921M , 921N , 921P and 921S , as inserted by the amending Act, apply on and after 1 January 2020.

Note: Sections 921L to 921N include provisions about investigations by monitoring bodies. Section 921P provides for compliance schemes to be made publicly available. Section 921S provides for the review of compliance schemes.

1546G(5)    
Paragraphs 922E(1)(i) and 922F(1)(n) , as inserted by the amending Act, apply on and after 15 November 2019 in relation to notices lodged under section 922D on or after that day.

Note: Paragraphs 922E(1)(i) and 922F(1)(n) require notices lodged under section 922D in relation to a relevant provider to include the name of the compliance scheme that is to cover the relevant provider.

SECTION 1546H   APPLICATION OF OBLIGATION FOR STANDARDS BODY TO PUBLISH ANNUAL REPORT  

1546H(1)    
Section 921ZC , as inserted by the amending Act, applies on and after 1 July 2017.

1546H(2)    
If the declaration of a body corporate to be the standards body under section 921X takes effect at a time during a financial year, the first annual report published by the standards body must cover the period beginning at that time and ending at the end of the next financial year as if that period were a financial year.

SECTION 1546J  

1546J   APPLICATION OF OBLIGATION TO NOTIFY ASIC ABOUT A PERSON WHO BECOMES A RELEVANT PROVIDER  

Sections 922D , 922E and 922F , as inserted by the amending Act, apply (subject to subsection 1546G(5) and sections 1546K to 1546N ) in relation to a person who becomes a relevant provider if:

(a) the person becomes a relevant provider after commencement; or

(b) both of the following apply:

(i) the person becomes a relevant provider before commencement;

(ii) immediately before commencement, a notice has not been lodged in accordance with section 922D , as notionally inserted into this Act by Schedule 8D to the Corporations Regulations 2001 .

Note: Section 922D requires ASIC to be notified if a person becomes a relevant provider.

SECTION 1546K  

1546K   APPLICATION OF REQUIREMENTS RELATING TO INFORMATION ABOUT RELEVANT PROVIDER ' S PRINCIPAL PLACE OF BUSINESS  

Paragraphs 922E(1)(b) and 922F(1)(b) , as inserted by the amending Act, apply on and after 15 November 2019 in relation to notices lodged under section 922D on or after that day.

Note: Paragraphs 922E(1)(b) and 922F(1)(b) require notices lodged under section 922D in relation to a relevant provider to include the address of the relevant provider ' s principal place of business.

SECTION 1546L  

1546L   APPLICATION OF REQUIREMENTS RELATING TO INFORMATION ABOUT MEMBERSHIP OF PROFESSIONAL ASSOCIATIONS WHERE RELEVANT PROVIDER IS LICENSEE  

Section 922E , as inserted by the amending Act, applies until the start of 15 November 2019 as if paragraph 922E(1)(h) were replaced with the following:

(h) information about both of the following:

(i) the educational qualifications of, and any training courses completed by, the relevant provider;

(ii) the relevant provider ' s membership (if any) of professional bodies;

to the extent that the qualifications, training courses or memberships are relevant to the provision of financial services (and if the relevant provider has more than 5 memberships, the 5 memberships that the person lodging the notice believes, on reasonable grounds, are most relevant to the provision of financial services);

SECTION 1546M  

1546M   APPLICATION OF REQUIREMENTS RELATING TO INFORMATION ABOUT MEMBERSHIP OF PROFESSIONAL ASSOCIATIONS WHERE RELEVANT PROVIDER IS NOT LICENSEE  

Section 922F , as inserted by the amending Act, applies until the start of 15 November 2019 as if paragraph 922F(1)(m) were replaced with the following:

(m) information about both of the following:

(i) the educational qualifications of, and any training courses completed by, the relevant provider;

(ii) the relevant provider ' s membership (if any) of professional bodies;

to the extent that the qualifications, training courses or memberships are relevant to the provision of financial services (and if the relevant provider has more than 5 memberships, the 5 memberships that the person lodging the notice believes, on reasonable grounds, are most relevant to the provision of financial services);

SECTION 1546N  

1546N   APPLICATION OF REQUIREMENTS RELATING TO INFORMATION ABOUT PROVISIONAL RELEVANT PROVIDER ' S WORK AND TRAINING  

Paragraphs 922F(1)(f) and (g), as inserted by the amending Act, apply in relation to notices lodged under section 922D on or after 1 January 2019.

Note: Paragraphs 922F(1)(f) and (g) require notices lodged under section 922D to include information in relation to provisional relevant providers and their work and training.

SECTION 1546P  

1546P   APPLICATION OF ONGOING OBLIGATION TO NOTIFY ASIC WHEN THERE IS A CHANGE IN A MATTER FOR A RELEVANT PROVIDER  

Paragraph 922H(1)(a) , as inserted by the amending Act, applies in relation to a change in a matter if:

(a) the change occurs after commencement; or

(b) both of the following apply:

(i) the change occurs before commencement;

(ii) immediately before commencement, a notice has not been lodged in accordance with section 922H , as notionally inserted into this Act by Schedule 8D to the Corporations Regulations 2001 .

SECTION 1546Q  

1546Q   APPLICATION OF OBLIGATION TO NOTIFY ASIC ABOUT A PERSON WHO STARTS TO HAVE CONTROL OF A BODY CORPORATE LICENSEE  

Section 922J , as inserted by the amending Act, applies in relation to a person who starts to have control of a body corporate licensee if:

(a)    the person starts to have control of the licensee after commencement; or

(b)    both of the following apply:

(i) the person starts to have control of the licensee before commencement;

(ii) immediately before commencement, a notice has not been lodged in accordance with section 922J , as notionally inserted into this Act by Schedule 8D to the Corporations Regulations 2001 .

SECTION 1546R  

1546R   APPLICATION OF OBLIGATION TO NOTIFY ASIC ABOUT A PERSON WHO CEASES TO HAVE CONTROL OF A BODY CORPORATE LICENSEE  

Section 922K , as inserted by the amending Act, applies in relation to a personwho ceases to have control of a body corporate licensee if:

(a)    the person ceases to have control of the licensee after commencement; or

(b)    both of the following apply:

(i) the person ceases to have control of the licensee before commencement;

(ii) immediately before commencement, a notice has not been lodged in accordance with section 922K , as notionally inserted into this Act by Schedule 8D to the Corporations Regulations 2001 .

SECTION 1546S  

1546S   APPLICATION OF OBLIGATION FOR RELEVANT PROVIDERS TO PROVIDE INFORMATION TO FINANCIAL SERVICES LICENSEES  

Section 922N , as inserted by the amending Act, applies in relation to a request made of a person if:

(a) both of the following apply:

(i) the request is made of the person for the purposes of subparagraph 922N(1)(c)(i) or (ii);

(ii) the request is made after commencement (whether the person becomes a relevant provider before or after commencement); or

(b) both of the following apply:

(i) the request (as mentioned in paragraph 922N(1)(c) , as notionally inserted into this Act by Schedule 8D to the Corporations Regulations 2001 ) is made before commencement;

(ii) immediately before commencement, the person has not provided the information requested.

SECTION 1546T   APPLICATION OF REQUIREMENTS RELATING TO REGISTER OF RELEVANT PROVIDERS  

1546T(1)    
Paragraphs 922Q(2)(b) , (r), and (v), as inserted by the amending Act, apply on and after 1 January 2020.

1546T(2)    
Subparagraph 922Q(2)(j)(ii) and paragraph 922Q(2)(m) , as inserted by the amending Act, apply on and after 1 January 2019.

1546T(3)    
Section 922Q , as inserted by the amending Act, applies until the start of 1 January 2020 as if subparagraph 922Q(2)(u)(ii) were replaced with the following:

(ii) the relevant provider ' s membership (if any) of professional associations, to the extent that the memberships are relevant to the provision of financial services;

1546T(4)    
Otherwise, sections 922Q and 922S , as inserted by the amending Act, apply on and after commencement.

SECTION 1546U  

1546U   RELEVANT PROVIDER NUMBERS GIVEN BEFORE COMMENCEMENT  

For the purposes of this Act, a number given by ASIC to a person in accordance with regulation 7.6.06A of the Corporations Regulations 2001 is taken to have been given in accordance with section 922R of this Act, as inserted by the amending Act.

SECTION 1546V  

1546V   CONTINUATION OF REGISTER OF RELEVANT PROVIDERS  

The repeal of regulation 7.6.06B of the Corporations Regulations 2001 by the Corporations Amendment (Professional Standards of Financial Advisers) Regulations 2017 does not affect the continuity of the register of relevant providers established under that regulation.

Division 3 - Transitional notices  

SECTION 1546W   OBLIGATION TO NOTIFY ASIC OF CERTAIN INFORMATION  

1546W(1)    
A notice must be lodged under this section, in the prescribed form, if, before 15 November 2019, a notice was lodged in relation to a relevant provider under:

(a)    section 922D , as inserted by the amending Act; or

(b)    section 922D , as notionally inserted into this Act by Schedule 8D to the Corporations Regulations 2001 .

1546W(2)    
The notice must include:

(a) the address of the relevant provider ' s principal place of business; and

(b) the name of the compliance scheme that is to cover the relevant provider.

1546W(3)    
The notice must be lodged before 1 January 2020 by:

(a)    if the relevant provider is a financial services licensee - the licensee; or

(b)    otherwise - the financial services licensee on whose behalf the relevant provider is authorised to provide personal advice to retail clients in relation to relevant financial products.

1546W(4)    
Subsection 921J(2) applies, subject to this section, as if the reference in that subsection to section 922D included a reference to this section.

SECTION 1546X   OBLIGATION TO NOTIFY ASIC OF CPD YEAR  

1546X(1)    
A notice must be lodged under this section, in the prescribed form, if, before 1 January 2019, ASIC granted an applicant an Australian financial services licence that covers the provision of personal advice to retail clients in relation to relevant financial products.

1546X(2)    
The notice must include the day of the year on which the relevant financial services licensee ' s CPD year begins.

1546X(3)    
The notice must be lodged by the licensee before 1 January 2019.

1546X(4)    
Subsection 922HA(3) applies as if a reference in that subsection to subsection 922HA(1) or (3) included a reference to this section.

SECTION 1546Y  

1546Y   OBLIGATION TO NOTIFY THE REGISTRAR WHEN EXAMS PASSED  
(Repealed by No 115 of 2021, s 3, Sch 1[96] (effective 1 January 2022).)

SECTION 1546Z  

1546Z   OBLIGATION TO NOTIFY ASIC OF CERTAIN INFORMATION AFTER BANNING ORDER  
(Repealed by No 49 of 2019, s 3, Sch 4[117] (effective 1 January 2019).)

SECTION 1546ZA  

1546ZA   OFFENCE FOR FAILING TO LODGE TRANSITIONAL NOTICES  

Section 922M applies as if a reference in that section to a notice provision included a reference to a notice given under this Division.

Note: Section 922M provides that a person commits an offence if a person does not lodge certain notices.

Division 4 - Review