Financial Services Reform Amendment Act 2003 (141 of 2003)

Schedule 2   Other amendments of the Corporations Act 2001

46A   Subsections 946B(1) and (2)

Repeal the subsections, substitute:

Further market-related advice

(1) The providing entity does not have to give the client a Statement of Advice for particular advice (the further market-related advice ) if:

(a) the providing entity is a participant in a licensed market, or is an authorised representative of a participant in a licensed market; and

(b) the providing entity has previously given the client a Statement of Advice that set out the client’s relevant personal circumstances in relation to the advice (the previous advice ) set out in that Statement; and

(c) the further market-related advice recommends that the client:

(i) acquire or dispose of, or not acquire or dispose of; or

(ii) accept or refuse an offer or invitation which, if accepted, would result in the client acquiring or disposing of, or offering to acquire or dispose of;

securities, managed investment products or derivatives that are able to be traded on a licensed market; and

(d) the following conditions are satisfied:

(ia) the providing entity has, either immediately before the further market-related advice is given, or within the preceding 12 months, checked with the client whether the client’s objectives, financial situation and needs have changed since the last time the providing entity checked with the client about those matters; and

(i) the client’s relevant personal circumstances in relation to the further market-related advice (determined having regard to the client’s objectives, financial situation and needs as currently known to the providing entity) are not significantly different from the client’s relevant personal circumstances in relation to the previous advice; and

(ii) so far as the basis on which advice is given relates to other matters - the basis on which the further market-related advice is given is not significantly different from the basis on which the previous advice was given; and

(e) the providing entity has a reasonable belief that:

(i) the client requires the further market-related advice to be provided promptly; or

(ii) it is in the client’s interests that the further market-related advice be provided promptly; and

(f) either:

(i) the further market-related advice does not contain any other kind of financial product advice; or

(ii) the only other kind of financial product advice contained in the further market-related advice is cash management facility advice; and

(g) the further market-related advice is given:

(i) by telephone; or

(ii) by fax; or

(iii) by e-mail; or

(iv) by another kind of electronic communication specified in regulations made for the purposes of this subparagraph.

Note: Paragraphs 947B(2)(b) and 947C(2)(b) require a Statement of Advice to include information about the basis on which the advice is or was given, which may include the client’s relevant personal circumstances, in which case paragraph (b) of this subsection would be satisfied.

(2) For the purposes of subsection (1):

able to be traded on a licensed market means:

(a) in relation to securities or managed investment products - either:

(i) the securities or products are admitted to quotation on a licensed market and their admission to quotation is not suspended; or

(ii) the securities or products are not admitted to quotation on a licensed market, but are further securities or products of a kind that are already admitted to quotation on the market and whose admission to quotation is not suspended; and

(b) in relation to derivatives:

(i) the standard terms of the arrangement that constitutes the derivative are set out in the operating rules of a licensed market; and

(ii) under the operating rules of that market, the derivatives are able to be dealt with on the market.

cash management facility means:

(a) an interest in a registered scheme of a kind commonly known as a cash common fund or a cash management trust; or

(b) a basic deposit product; or

(c) a bank accepted bill.

cash management facility advice means advice about the use (but not the establishment) of a cash management facility in connection with an acquisition or disposal of securities, managed investment products or derivatives to which the further market-related advice relates.