Division 4 Conflicted remuneration

7.7A.12 Monetary benefit given in certain circumstances not conflicted remuneration: prescribed benefit

(1) This regulation is made for paragraph 963B (1) (e) of the Act.

(2) A benefit given to a financial services licensee, or a representative of a financial services licensee, for advice that relates to an interest in a time-sharing scheme is a prescribed benefit.

Note Under subsection 963B (1) of the Act, if a monetary benefit is a prescribed benefit, the benefit is not conflicted remuneration.

7.7A.13 Non-monetary benefit given in certain circumstances not conflicted remuneration: prescribed amount

For subparagraph 963C (b) (i) of the Act, the amount is $300 for each financial services licensee, or each representative of a financial services licensee, who is the final recipient of a non-monetary benefit.

Note Under paragraph 963C (b) of the Act, if a non-monetary benefit is given to a financial services licensee, or a representative of a financial services licensee, who provides financial advice, is less than the prescribed amount and identical or similar benefits are not given on a frequent or regular basis, the benefit is not conflicted remuneration.

7.7A.14 Non-monetary benefit given in certain circumstances not conflicted remuneration: education or training course

(1) This regulation is made for subparagraph 963C (c) (iii) of the Act.

(2) This regulation sets out requirements if a non-monetary benefit to which subparagraphs 963C (c) (i) and (ii) of the Act apply is the provision of an education or training course to a financial services licensee, or a representative of a financial services licensee.

Note Under paragraph 963C (c) of the Act, if certain non-monetary benefits have a genuine education or training purpose, are relevant to the provision of financial product advice to retail clients and comply with the regulations, the benefits are not conflicted remuneration.

(3) Education or training activities for the professional development of the participants in the course must take up at least:

(a) 75% of the time spent on the course; or

(b) 6 hours a day;

whichever is the lesser.

(4) The participant, or the participant’s employer or licensee, must pay for the costs of:

(a) travel and accommodation relating to the course; and

(b) events and functions held in conjunction with the course.

Example

The cost of day trips or dinners.

(5) In this regulation:

education or training course includes a conference or seminar.

7.7A.15 Non-monetary benefit given in certain circumstances not conflicted remuneration: other education and training benefit

(1) This regulation is made for subparagraph 963C (c) (iii) of the Act.

(2) This regulation sets out a requirement if a non-monetary benefit to which subparagraphs 963C (c) (i) and (ii) of the Act apply is not the provision of an education or training course to which regulation 7.7A.13 applies.

Note Under paragraph 963C (c) of the Act, if certain non-monetary benefits have a genuine education or training purpose, are relevant to the provision of financial product advice to retail clients and comply with the regulations, the benefits are not conflicted remuneration.

(3) The dominant purpose of the non-monetary benefit must be education and training.

[4]   After regulation 7.8.11

insert

7.8.11A Particular categories of information to be shown in records: records of non-monetary benefit that is not conflicted remuneration

(1) This regulation is made for paragraph 988E (g) and section 988F of the Act.

(2) The following table sets out matters in relation to a non-monetary benefit that:

(a) is given to a financial services licensee or a representative of a financial services licensee; and

(b) either:

(i) is not conflicted remuneration in accordance with paragraph 963C (b) of the Act, and is over $100; or

(ii) is not conflicted remuneration in accordance with paragraph 963C (c) or (d) of the Act; or

Note Particulars of the matters must be shown in the records kept by the financial services licensee.

(3) At the request of a person, a financial services licensee must give the person the particulars in its records relating to the matters in items 1 to 4 of the table for the last financial year.

(4) The licensee may require the person making the request to pay a charge for obtaining the particulars.

(5) The amount of the charge must not exceed the reasonable costs that the licensee incurs that are reasonably related to giving the particulars (including any costs incurred in photocopying the document containing the particulars).

Note This would include the costs of collating the information.

(6) The licensee must give the particulars to the person as soon as practicable, and no later than one month after the person makes the request to the licensee.

[5]   After Part 10.15

insert

Part 10.18 Transitional provisions relating to Corporations Amendment (Further Future of Financial Advice Measures) Act 2012

10.18.01 Ban on conflicted remuneration does not apply in certain circumstances

(1) This regulation is made for subsection 1528 (2) of the Act.

(2) A circumstance in which Division 4 of Part 7.7A of the Act does not apply to a benefit given to a financial service licensee, or a representative of a financial services licensee, is that the benefit relates to:

(a) a group life policy for members of a superannuation entity; or

(b) a life policy for a member of a default superannuation fund.

Note For the definitions of group life policy for members of a superannuation entity and life policy for a member of a default superannuation fund: see section 963B of the Act.

(3) This regulation expires on 1 July 2013 as if the regulation had been repealed by another legislative instrument.