Corporations Act 2001

CHAPTER 8B - CORPORATE COLLECTIVE INVESTMENT VEHICLES  

PART 8B.7 - CONTROL, FINANCIAL SERVICES AND DISCLOSURE  

Division 4 - Financial services and markets  

SECTION 1241J   AGREEMENTS WITH CERTAIN UNLICENSED PERSONS  

1241J(1)    

Subdivision B of Division 11 of Part 7.6 also applies to an agreement entered into by:

(a)    

a CCIV (in that Subdivision called the non-licensee); and

(b)    

another person (in that Subdivision called the client) who is not a financial services licensee;

that constitutes, or relates to, the provision of a financial service by the corporate director of the CCIV (in that Subdivision called the corporate director) if:

(c)    the agreement is entered into in the course of a financial services business carried on by the corporate director; and

(d)    the corporate director does not hold an Australian financial services licence covering the provision of the financial service; and

(e)    the corporate director is not exempt from the requirement to hold such a licence.

Note 1: A CCIV does not need to be licensed to provide a financial service, instead the CCIV ' s corporate director needs to be (see subsection 1241B(1) ). This means section 924A will work appropriately only if the agreement mentioned in that section is between the corporate director and the client.

Note 2: This section works similarly to section 924A to ensure that the appropriate result happens if the agreement mentioned in section 924A is instead between the CCIV and the client.

Note 3: This section applies whether the financial service is provided to the client as a wholesale client or as a retail client.

1241J(2)    
Subdivision B of Division 11 of Part 7.6 applies to the agreement whether or not anyone else is a party to the agreement.

1241J(3)    
That Subdivision applies to the agreement as if subsections 925A(4) and (5) were replaced by the following:

" (4)
The client is not entitled to give a notice under this section if, within a reasonable period before the agreement was entered into, the non-licensee informed the client (whether or not in writing) that the corporate director did not hold an Australian financial services licence.

(5)
If, at a time when an Australian financial services licence held by the corporate director was suspended, the non-licensee informed the client that the licence was suspended, the non-licensee is to be taken for the purposes of subsection (4) to have informed the client at that time that the corporate director did not hold the licence. " .