Corporations Amendment Regulations 2004 (No. 6)

(149 of 2004)

Dated 24 June 2004

Corporations Act 2001

1 Name of Regulations

These Regulations are theCorporations Amendment Regulations 2004 (No. 6).

2 Commencement

These Regulations commence as follows:

(a) on 1 July 2004 - regulations 1 to 3 and Schedule 1;

(b) on 1 January 2005 - Schedule 2.

3 Amendment of Corporations Regulations 2001

Schedules 1 and 2 amend theCorporations Regulations 2001as amended by theCorporations Amendment Regulations 2003 (No. 8).

Schedule 1 Amendments commencing on 1 July 2004

[1] After regulation 7.7.10

insert

7.7.10A Statements of Advice - requirement to state information as amounts in dollars

(1) For paragraph 951C (1) (c) of the Act, Part 7.7 of the Act applies as if paragraph 947B (2) (h) of the Act were modified to read as follows:

'(h) unless in accordance with the regulations and a determination by ASIC, information to be disclosed in accordance with paragraph (d) and subparagraph (e) (i) must be stated as amounts in dollars.'.

(2) For paragraph 951C (1) (a) of the Act, a providing entity does not have to provide the information mentioned in paragraph 947B (2) (h) of the Act, in the form required by that paragraph, in a Statement of Advice prepared before 1 January 2005.

(3) For paragraph 951C (1) (c) of the Act, Part 7.7 of the Act applies as if paragraph 947C (2) (i) of the Act were modified to read as follows:

'(i) unless in accordance with the regulations and a determination by ASIC, information to be disclosed in accordance with paragraph (e) and subparagraph (f) (i) must be stated as amounts in dollars.'.

(4) For paragraph 951C (1) (a) of the Act, a providing entity does not have to provide the information mentioned in paragraph 947C (2) (i)of the Act, in the form required by that paragraph, in a Statement of Advice prepared before 1 January 2005.

(5) For paragraph 951C (1) (c) of the Act, Part 7.7 of the Act applies as if paragraph 947D (2) (d) of the Act were modified to read as follows:

'(d) unless in accordance with the regulations and a determination by ASIC, information to be disclosed in accordance with paragraph (a) must be stated as amounts in dollars.'.

(6) For paragraph 951C (1) (a) of the Act, a providing entity does not have to provide the information mentioned in paragraph 947D (2) (d) of the Act, in the form required by that paragraph, in a Statement of Advice prepared before 1 January 2005.

[2] Subregulations 7.7.11 (2) and (3)

substitute

(2) For paragraph 947B (2) (h) of the Act, if ASIC determines that, for a compelling reason, it is not possible to state information to be disclosed in accordance with paragraph 947B (2) (d) or subparagraph 947B (2) (e) (i) as an amount in dollars, the information may be set out as a description of the amount as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate).

(3) For paragraph 947B (2) (h) of the Act, if ASIC determines that, for a compelling reason, it is not possible to state information to be disclosed in accordance with paragraph 947B (2) (d) or subparagraph 947B (2) (e) (i) as an amount in dollars, or to describe the amount as a percentage, the information may be set out as a description of the method of calculating the remuneration, benefits or interests (including worked dollar examples, unless that is inappropriate).

(4) A determination under subregulation (2) or (3) must be:

(a) in writing; and

(b) published in the Gazette.

(5) The statements and descriptions must be presented in a manner that is easy for the client to understand.

[3] After regulation 7.7.11A

insert

7.7.11B Statement of Advice - disclosure of dollar amounts

(1) For paragraph 947B (2) (h) of the Act, if ASIC determines that, for a compelling reason based on the nature of a financial product or service, or the nature of the information, to state the information as an amount in dollars:

(a) would impose an unreasonable burden on a providing entity, or a class of providing entities; or

(b) would impose an unreasonable burden on a providing entity, or a class of providing entities, within a period specified in the determination; or

the information may be set out as a description of the amount as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate).

(2) For paragraph 947B (2) (h) of the Act, if ASIC determines that, for a compelling reason, based on the nature of a financial product or service, or the nature of the information, to state the information as an amount in dollars, or to describe the amount as a percentage:

(a) would impose an unreasonable burden on a providing entity, or a class of providing entities; or

(b) would impose an unreasonable burden on a providing entity, or a class of providing entities, within a period specified in the determination; or

the information may be set out as a description of the method of calculating the remuneration, benefits or interests (including worked dollar examples, unless that is inappropriate).

(3) A determination under subregulation (1) or (2) must be:

(a) in writing; and

(b) published in the Gazette.

[4] Subregulations 7.7.12 (2) and (3)

substitute

(2) For paragraph 947C (2) (i) of the Act, if ASIC determines that, for a compelling reason, it is not possible to state information to be disclosed in accordance with paragraph 947C (2) (e) or subparagraph 947C (2) (f) (i) as an amount in dollars, the information may be set out as a description of the amount as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate).

(3) For paragraph 947C (2) (i) of the Act, if ASIC determines that, for a compelling reason, it is not possible to state information to be disclosed in accordance with paragraph 947C (2) (e) or subparagraph 947C (2) (f) (i) as an amount in dollars, or to describe the amount as a percentage, the information may be set out as a description of the method of calculating the remuneration, benefits or interests (including worked dollar examples, unless that is inappropriate).

(4) A determination under subregulation (1) or (2) must be:

(a) in writing; and

(b) published in the Gazette.

(5) The statements and descriptions must be presented in a manner that is easy for the client to understand.

[5] After regulation 7.7.12

insert in Division 3

7.7.13 Statement of Advice provided by authorised representative - disclosure of dollar amounts

(1) For paragraph 947C (2) (i) of the Act, if ASIC determines that, for a compelling reason based on the nature of a financial product or service, or the nature of the information, to state the information as an amount in dollars:

(a) would impose an unreasonable burden on a providing entity, or a class of providing entities; or

(b) would impose an unreasonable burden on a providing entity, or a class of providing entities, within a period specified in the determination; or

the information may be set out as a description of the amount as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate).

(2) For paragraph 947C (2) (i) of the Act, if ASIC determines that, for a compelling reason, based on the nature of a financial product or service, or the nature of the information, to state the information as an amount in dollars, or to describe the amount as a percentage:

(a) would impose an unreasonable burden on a providing entity, or a class of providing entities; or

(b) would impose an unreasonable burden on a providing entity, or a class of providing entities, within a period specified in the determination; or

the information may be set out as a description of the method of calculating the remuneration, benefits or interests (including worked dollar examples, unless that is inappropriate).

(3) A determination under subregulation (1) or (2) must be:

(a) in writing; and

(b) published in the Gazette.

7.7.13A Additional information about charges or benefits - disclosure of dollar amounts

(1) For paragraph 947D (2) (d) of the Act, if ASIC determines that, for a compelling reason, it is not possible to state information to be disclosed in accordance with paragraph 947D (2) (a) as an amount in dollars, the information may be set out as a description of the amount as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate).

(2) For paragraph 947D (2) (d) of the Act, if ASIC determines that, for a compelling reason, it is not possible to state information to be disclosed in accordance with paragraph 947D (2) (a) as an amount in dollars, or to describe the amount as a percentage, the information may be set out as a description of the method of calculating the charge or benefit (including worked dollar examples, unless that is inappropriate).

(3) A determination under subregulation (1) or (2) must be:

(a) in writing; and

(b) published in the Gazette.

7.7.13B Additional information about charges or benefits - disclosure of dollar amounts

(1) For paragraph 947D (2) (d) of the Act, if ASIC determines that, for a compelling reason based on the nature of a financial product or service, or the nature of the information, to state the information as an amount in dollars:

(a) would impose an unreasonable burden on a providing entity, or a class of providing entities; or

(b) would impose an unreasonable burden on a providing entity, or a class of providing entities, within a period specified in the determination; or

the information may be set out as a description of the amount as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate).

(2) For paragraph 947D (2) (d) of the Act, if ASIC determines that, for a compelling reason, based on the nature of a financial product or service, or the nature of the information, to state the information as an amount in dollars, or to describe the amount as a percentage:

(a) would impose an unreasonable burden on a providing entity, or a class of providing entities; or

(b) would impose an unreasonable burden on a providing entity, or a class of providing entities, within a period specified in the determination; or

the information may be set out as a description of the method of calculating the charge or benefit (including worked dollar examples, unless that is inappropriate).

(3) A determination under subregulation (1) or (2) must be:

(a) in writing; and

(b) published in the Gazette.

[6] After regulation 7.9.15

insert

7.9.15A Product Disclosure Statements - requirement to state information as amounts in dollars

(1) For paragraph 1020G (1) (c) of the Act, Part 7.9 of the Act applies as if paragraph 1013D (1) (m) of the Act were modified to read as follows:

'(m) unless, in accordance with the regulations and a determination by ASIC, information to be disclosed in accordance with paragraphs (b), (d) and (e) must be stated as amounts in dollars.'.

(2) For paragraph 1020G (1) (a) of the Act, an issuer of a financial product does not have to provide the information mentioned in paragraph 1013D (1) (m) of the Act in the form required by that paragraph, in a Product Disclosure Statement prepared before 1 January 2005.

7.9.15B Product Disclosure Statements - disclosure of dollar amounts

(1) For paragraph 1013D (1) (m) of the Act, if ASIC determines that, for a compelling reason, it is not possible to state information to be disclosed in accordance with paragraph 1013D (1) (b), (d) or (e) as an amount in dollars, the information may be set out as a description of the benefit, cost, amount or payment as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate).

(2) For paragraph 1013D (1) (m) of the Act, if ASIC determines that, for a compelling reason, it is not possible to state information to be disclosed in accordance with paragraph 1013D (1) (b), (d) or (e) as an amount in dollars, or to describe the amount as a percentage, the information may be set out as a description of the method of calculating the benefit, cost, amount or payment (including worked dollar examples, unless that is inappropriate).

(3) A determination under subregulation (1) or (2) must be:

(a) in writing; and

(b) published in the Gazette.

7.9.15C Product Disclosure Statements - disclosure of dollar amounts

(1) For paragraph 1013D (1) (m) of the Act, if ASIC determines that, for a compelling reason based on the nature of a financial product or service, or the nature of the information, to state the information as an amount in dollars:

(a) would impose an unreasonable burden on a product issuer, or a class of product issuers; or

(b) would impose an unreasonable burden on a product issuer, or a class of product issuers, within a period specified in the determination; or

the information may be set out as a description of the amount as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate).

(2) For paragraph 1013D (1) (m) of the Act, if ASIC determines that, for a compelling reason, based on the nature of a financial product or service, or the nature of the information, to state the information as an amount in dollars, or to describe the amount as a percentage:

(a) would impose an unreasonable burden on a product issuer, or a class of product issuers; or

(b) would impose an unreasonable burden on a product issuer, or a class of product issuers, within a period specified in the determination; or

the information may be set out as a description of the method of calculating the charge or benefit (including worked dollar examples, unless that is inappropriate).

(3) A determination under subregulation (1) or (2) must be:

(a) in writing; and

(b) published in the Gazette.

[7] Subregulation 7.9.19 (1)

omit

[8] Subregulation 7.9.19 (2)

omit everything before paragraph (a), insert

For paragraph 1017D (5) (g) of the Act, a periodic statement for a superannuation product, given to a member of a superannuation fund (other than a self-managed superannuation fund) or an RSA product given to an RSA holder must include the following details:

[9] Paragraph 7.9.72 (b)

omit

5.3;

insert

5.3; and

[10] After paragraph 7.9.72 (b)

insert

[11] After regulation 7.9.74

insert

7.9.74A Periodic statements - requirement to state information as amounts in dollars

(1) For paragraph 1020G (1) (c) of the Act, Part 7.9 of the Act applies as if subsection 1017D (5A) were modified to read as follows:

'(5A) Unless in accordance with the regulations and a determination by ASIC:

(a) information to be disclosed in accordance with paragraphs (5) (a), (b), (c), (d) and (e) must be stated as amounts in dollars; and

(b) any other information in relation to amounts paid by the holder of the financial product during the period must be stated as amounts in dollars.'.

(2) For paragraph 1020G (1) (a) of the Act, the issuer of a financial product does not have to provide the information mentioned in subsection 1017D (5A) of the Act in the form required by that subsection, in a periodic statement prepared before 1 January 2005.

(3) For subsection 1017D (5A) of the Act, as modified in accordance with subregulation (1), if ASIC determines that, for a compelling reason based on the nature of a financial product or service, or the nature of the information, to state information to be disclosed in accordance with paragraphs 1017D (5) (a), (b), (c), (d) and (e) of the Act as an amount in dollars:

(a) would impose an unreasonable burden on a product issuer, or a class of product issuers; or

(b) would impose an unreasonable burden on a product issuer, or a class of product issuers, within a period specified in the determination; or

the information may be set out as a description of the amount as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate).

(4) For subsection 1017D (5A) of the Act, as modified in accordance with subregulation (1), if ASIC determines that, for a compelling reason, based on the nature of a financial product or service, or the nature of the information, to state information to be disclosed in accordance with paragraphs 1017D (5) (a), (b), (c), (d) and (e) of the Act as an amount in dollars, or to describe the amount as a percentage:

(a) would impose an unreasonable burden on a product issuer, or a class of product issuers; or

(b) would impose an unreasonable burden on a product issuer, or a class of product issuers, within a period specified in the determination; or

the information may be set out as a description of the method of calculating the charge or benefit (including worked dollar examples, unless that is inappropriate).

(5) A determination under subregulation (3) or (4) must be:

(a) in writing; and

(b) published in the Gazette.

[12] After subregulation 7.9.75 (2)

insert

(3) For paragraph 1017D (5A) (a) of the Act, subregulations (4) and (5) apply in relation to a financial product that has:

(a) an opening or closing balance mentioned in paragraph 1017D (5) (a) of the Act; or

(b) the termination value mentioned in paragraph 1017D (5) (b) of the Act; or

(d) a return on investment mentioned in paragraph 1017D (5) (e) of the Act.

(4) If ASIC determines that, for a compelling reason, it is not possible to state the amount in dollars, the amount may be described as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate).

(5) If ASIC determines that, for a compelling reason, it is not possible to state the amount in dollars, or to describe the amount as a percentage, the periodic statement must include:

(a) a statement informing the holder of the product that the amount is applicable; and

(b) details of the means by which a product holder is able to gain access to information relating to the amount.

(6) A determination under subregulation (4) or (5) must be:

(a) in writing; and

(b) published in the Gazette.

[13] After regulation 7.9.75B

insert

7.9.75C Periodic statements - disclosure of amounts

(1) For paragraph 1017D (5A) (b) of the Act, this regulation applies to a periodic statement prepared on or after 1 January 2005 in relation to an amount mentioned in paragraph 7.9.75 (1) (a) or (b) of these Regulations.

(2) If ASIC determines that, for a compelling reason, it is not possible to state the amount in dollars the amount may be described as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate).

(3) If ASIC determines that, for a compelling reason, it is not possible to state the amount in dollars, or to describe the amount as a percentage, the periodic statement must include:

(a) a statement informing the holder of the product that the amount is applicable; and

(b) details of the means by which a product holder is able to gain access to information relating to the amount.

(4) A determination under subregulation (2) or (3) must be:

(a) in writing; and

(b) published in the Gazette.

7.9.75D Periodic statements - disclosure of amounts

(2) If ASIC determines that, for a compelling reason based on the nature of a financial product or service, or the nature of the information, to state the amount of the deduction in dollars:

(a) would impose an unreasonable burden on a product issuer, or a class of product issuers; or

(b) would impose an unreasonable burden on a product issuer, or a class of product issuers, within a period specified in the determination; or

the information may be set out as a description of the amount as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate).

(3) If ASIC determines that, for a compelling reason, based on the nature of a financial product or service, or the nature of the information, to state the amount of a deduction in dollars, or to describe the amount as a percentage:

(a) would impose an unreasonable burden on a product issuer, or a class of product issuers; or

(b) would impose an unreasonable burden on a product issuer, or a class of product issuers, within a period specified in the determination; or

the periodic statement must include the information in subregulation (4).

(4) If subregulation (3) applies, the periodic statement must include:

(a) a statement informing the product holder that the amount is applicable; and

(b) details of the means by which a product holder is able to gain access to information relating to the amount.

(5) A determination under subregulation (2) or (3) must be:

(a) in writing; and

(b) published in the Gazette.

Schedule 2 Amendments commencing on 1 January 2005

[1] Paragraph 7.9.19 (f)

omit

benefits.

insert

benefits;

[2] After paragraph 7.9.19 (f)

insert

(g) if, in providing details of the amount of the withdrawal benefit at the end of the reporting period, a deduction for fees, charges or expenses has been made or might be made - details of the deduction;

(h) if relevant, a statement informing the product holder that:

(i) the information about the withdrawal benefit for the product holder at the end of the reporting period is based on notional amounts that would have been attributable to the product holder if the product holder had disposed of his or her interest in the product on the date shown in the statement; and

(ii) the amounts on which that information is based might change; and

(iii) before disposing of that product, the product holder should seek information from the product issuer on the withdrawal benefit at that time;

(i) a statement informing the product holder that the product issuer is obliged to provide a member with any information that he or she reasonably requires to understand his or her benefit entitlements;

(j) a statement of the way in which a product holder is able to gain access to information in relation to his or her investment in the financial product.

[3] After regulation 7.9.19

insert

7.9.19A Withdrawal benefit - fees, charges or expenses

(1) For subsection 1017D (5A) of the Act, in providing details of a deduction for fees, charges or expenses in accordance with paragraph 7.9.19 (g), the amount must be stated in dollars.

(2) If ASIC determines that, for a compelling reason, it is not possible to state the amount of a deduction in dollars the amount of the deduction may be set out as a description of the fees, charges or expenses as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate).

(3) If ASIC determines that, for a compelling reason, it is not possible to state the amount of a deduction in dollars, or to set out the amount as a percentage, the product issuer may provide:

(a) a statement informing the holder of the product that amounts for fees, charges or expenses are applicable; and

(b) if information about access to the information about the amount of the deduction is not provided in the statement mentioned in paragraph 7.9.19 (h) - details of the means by which a product holder can gain access to information relating to the amount of the deduction.

(4) A determination under subregulation (2) or (3) must be:

(a) in writing; and

(b) published in the Gazette.

7.9.19B Withdrawal benefit - fees, charges and expenses

(1) For subsection 1017D (5A) of the Act, this regulation applies to details of a deduction for fees, charges or expenses in accordance with paragraph 7.9.19 (g).

(2) If ASIC determines that, for a compelling reason based on the nature of a financial product or service, or the nature of the information, to state the information as an amount in dollars:

(a) would impose an unreasonable burden on a product issuer, or a class of product issuers; or

(b) would impose an unreasonable burden on a product issuer, or a class of product issuers, within a period specified in the determination; or

the information may be set out as a description of the amount as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate).

(3) If ASIC determines that, for a compelling reason, based on the nature of a financial product or service, or the nature of the information, to state the information as an amount in dollars, or to describe the amount as a percentage:

(a) would impose an unreasonable burden on a product issuer, or a class of product issuers; or

(b) would impose an unreasonable burden on a product issuer, or a class of product issuers, within a period specified in the determination; or

the product issuer must provide the information in subregulation (4).

(4) If subregulation (3) applies, the product issuer must provide:

(a) a statement informing the product holder that amounts for fees, charges or expenses are applicable; and

(b) if information about access to the information is not provided in the statement mentioned in paragraph 7.9.19 (i) - details of the means by which a product holder can gain access to information relating to the amount of the deduction.

(5) A determination under subregulation (2) or (3) must be:

(a) in writing; and

(b) published in the Gazette.

[4] After paragraph 7.9.20 (1) (ka)

insert

(kb) if, in providing details of other significant benefits for a reporting period, a deduction for fees, charges or expenses has been made or might be made - details of the deduction;

[5] After regulation 7.9.20

insert

7.9.20A Details of other significant benefits - disclosure of fees, charges or expenses

(1) For subsection 1017D (5A) of the Act, in providing details of a deduction for fees, charges or expenses in accordance with paragraph 7.9.20 (1) (kb):

(a) the amount must be stated in dollars; or

(b) if ASIC determines that, for a compelling reason, it is not possible to state the amount of a deduction in dollars the amount of the deduction may be set out as a description of the fees, charges or expenses as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate); or

(c) if ASIC determines that, for a compelling reason, it is not possible to state the amount of a deduction in dollars, or to set out the amount as a percentage, the product issuer may provide:

(i) a statement informing the holder of the product that amounts for fees, charges or expenses are applicable; and

(ii) if information about the deduction is not provided in the statement mentioned in sub-subparagraph 7.9.20 (1) (ka) (ii) (B) - details of the means by which a product holder can gain access to information relating to the amount.

(2) A determination under paragraph (1) (b) or (c) must be:

(a) in writing; and

(b) published in the Gazette.

7.9.20B Other significant benefits - disclosure of fees, charges or expenses

(1) For subsection 1017D (5A) of the Act, this regulation applies to details of a deduction for fees, charges or expenses mentioned in paragraph 7.9.20 (1) (kb).