Corporations Act 2001

CHAPTER 10 - TRANSITIONAL PROVISIONS  

PART 10.78 - PROVISIONS RELATING TO SCHEDULE 1 TO THE TREASURY LAWS AMENDMENT (DELIVERING BETTER FINANCIAL OUTCOMES AND OTHER MEASURES) ACT 2024  

Division 1 - Ongoing fee arrangements  

SECTION 1708  

1708   DEFINITIONS  

In this Part:

amending Part
means Part 2 of Schedule 1 to the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024 .

start day
means the day that is 6 months after the commencement of the amending Part.

transition day
for an ongoing fee arrangement means the first anniversary day (within the meaning of this Act as in force immediately before the commencement of the amending Part) for the arrangement to occur after the start day.

SECTION 1708A  

1708A   APPLICATION - NEW ONGOING FEE ARRANGEMENTS  

The amendments made by the amending Part apply in relation to an ongoing fee arrangement entered into on or after the start day.

SECTION 1708B   APPLICATION - EXISTING ONGOING FEE ARRANGEMENTS  

1708B(1)    
This section applies in relation to an ongoing fee arrangement that is in force immediately before the start day.

1708B(2)    
Subject to this section, the amendments made by the amending Part apply in relation to the ongoing fee arrangement on and after the transition day for the arrangement.

Modified period for giving consent to ongoing fee arrangements

1708B(3)    
Section 962F applies in relation to the ongoing fee arrangement as if paragraph (1)(a) of that section instead required the client to have given a written consent that meets the requirements in section 962G in relation to the arrangement in the period that:

(a)    starts at the later of:

(i) the start day; and

(ii) 60 days before the transition day for the arrangement; and

(b)    ends 150 days after the transition day for the arrangement.

Changes relating to deductions of fees from accounts apply from 150 days after transition day

1708B(4)    
The repeal of section 962FA and the amendments of Subdivision C of Division 3 of Part 7.7A made by the amending Part apply in relation to the ongoing fee arrangement on and after the period of 150 days after the transition day for the arrangement.

Form requirements

1708B(5)    
The amendments of Subdivision D of Division 3 of Part 7.7A made by the amending Part apply in relation to consents being given for the purposes of that Division as amended by the amending Part.

Certain contraventions apply from the start day

1708B(6)    
The following apply in relation to conduct occurring wholly on or after the start day:

(a)    the repeal of section 962P ;

(b)    the repeal of subsections 962U(3) and 962V(3) ;

(c)    the insertion of section 962Z .

Division 2 - Conflicted remuneration  

SECTION 1708C  

1708C   BENEFITS GIVEN BY A RETAIL CLIENT  

The amendments made by Part 4 of Schedule 1 to the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024 apply to benefits given on or after the commencement of that Part.

SECTION 1708D   BENEFITS FOR EMPLOYEES OF ADIs  

1708D(1)    
The repeal of section 963D by item 91 of Part 4 of Schedule 1 to the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024 applies to a benefit given to a financial services licensee, or a representative of a financial services licensee, under an arrangement if:

(a)    the arrangement was entered into on or after the day (the deferred start day ) that is 6 months after the commencement of that Part; or

(b)    all of the following apply:

(i) the arrangement was varied on or after the deferred start day;

(ii) the variation related to the giving of benefits under the arrangement;

(iii) the benefit is given on or after the deferred start day.

1708D(2)    
The repeal of that section also applies to a benefit if:

(a)    the benefit is given to a financial services licensee, or a representative of a financial services licensee, otherwise than under an arrangement; and

(b)    the benefit is given on or after the deferred start day.