Corporations Regulations 2001
View history note
Hide history note[ CCH Note: Pursuant to the Corporations Amendment Regulations 2001 (No 4) (SR 2001 No 319) effective 11 March 2002, Chapter 7 (Securities) comprising reg 7.1.01 - 7.15.01 and Chapter 8 (The futures industry) comprising reg 8.1.01 - 8.7.03 are replaced by a new Chapter 7 (Financial services and markets) comprising reg 7.1.01 - 7.12.01. As the subject matter of the new Chapter 7 relates to the new financial services reform regime, " inserted " has been used in the history notes for each provision, and all references to the former provisions have been removed.]
For subsection 761G(10) of the Act if, at any time, the holder of a financial product is a wholesale client in relation to the product because of paragraph 761G(7) (a) of the Act:
(a) the holder is taken, on and after that time, to be a wholesale client in relation to the product as between the holder and:
(i) the issuer of the product; or
for the period during which the holder holds the product; and
(ii) if a related body corporate of the issuer of the product provides a custodial or depository service to the holder of the product in relation to the product - the related body corporate;
(b) paragraph (a) applies whether or not the holder would, but for that paragraph, have otherwise been or become a retail client in relation to that product at some time.
For subsection 761G(10) of the Act, if:
(a) a person is a wholesale client in relation to the product because of paragraph 761G(7) (a) or paragraph (1)(a); and
(b) another person becomes a holder of the financial product; and
(c) the issuer did not know, and could not reasonably be expected to have known:
(i) whether another person had become the holder of the financial product; or
(ii) whether any subsequent holder of the financial product was a retail client or a wholesale client;
the issuer is taken not to be guilty of any offence, or to be liable under civil penalty or civil liability provisions under the Act, merely because the issuer has not treated any subsequent holder of that financial product as a retail client.
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