Superannuation Industry (Supervision) Regulations 1994

PART 3 - MATTERS PRESCRIBED OR SPECIFIED IN RELATION TO PUBLIC OFFER ENTITIES

REGULATION 3.10 COMMISSION AND BROKERAGE

3.10(1) [Requirements for payment]

For the purposes of subsection 154(1) of the Act, the requirements set out in this regulation apply in relation to a payment by the trustee of a public offer entity of commission or brokerage (including commission or brokerage in the form of remuneration or other benefits) of a kind mentioned in that subsection.

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3.10(2) [Payment for applying or procuring applications]

The trustee of a public offer entity may make a payment of commission or brokerage to a person in consideration of the person:

(a) applying or agreeing to apply for the issue of an interest in the entity; or

(b) procuring or agreeing to procure applications for the issue of an interest in the entity;

if, and only if:

(c) the payment is not prohibited by the entity's trust deed; and

(d) where an interest is issued, the applicant for the issue of the interest has, before the issue occurred, been notified in writing of the amount or rate of the proposed payment of commission or brokerage.

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3.10(3) [Trustee of public offer]

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The trustee of a public offer entity must not make a payment of commission or brokerage to a person (the provider ) for the provision of a financial service by the provider in respect of issuing an interest in the entity unless the provider is:

(a) a financial services licensee that is authorised to deal in superannuation products; or

(b) an authorised representative of a financial services licensee that is authorised to deal in superannuation products; or

(c) exempt from the requirement to hold an Australian financial services licence; or

(d) the provider of the financial service on behalf of another person who is exempt.

View history note

History

Reg 3.10(3) substituted by SR No 21 of 2002, reg 3 and Sch 1 item 30, effective 11 March 2002. Reg 3.10(3) formerly read:

3.10(3)
The trustee of a public offer entity must not make a payment of commission or brokerage to a person in respect of issuing an interest in the entity unless the person is:

(a) the holder of a dealers licence granted under Part 7.3 of the Corporations Law; or

(b) the holder of a proper authority within the meaning of the Corporations Law; or

(c) an exempt dealer within the meaning of the Corporations Law; or

(d) any of the following:

(i) the holder of an investment advisers licence granted under Part 7.3 of the Corporations Law;

(ii) an accountant or solicitor whose principal business or profession is not the giving of advice about securities;

(iii) an employee of an accountant or solicitor whose principal business or profession is not the giving of advice about securities; or

(iv) a company providing accountancy or legal services whose principal business is not the giving of advice about securities;

(v) a director or employee of a company of that kind;
if the person has told the trustee in writing that the total amount of the commission or brokerage will be rebated to the applicant for the issue; or

(e) a registered insurance broker within the meaning of the Insurance (Agents and Brokers) Act 1984 ; or

(f) a life insurance company.

Reg 3.10 amended by SR No 193 of 1998.

3.10(4) [Reference to a solicitor or accountant]

A reference in subregulation (3) to a solicitor or accountant includes a reference to a firm of solicitors or accountants, or to a partner in such a firm, as the case requires.

3.10(5) [Accounts to be kept]

The trustee of an entity must keep an account of amounts of commission and brokerage paid by the entity.

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