Corporations Regulations 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.6 - LICENSING OF PROVIDERS OF FINANCIAL SERVICES  

REGULATION 7.6.04   CONDITIONS ON AUSTRALIAN FINANCIAL SERVICES LICENCE  

7.6.04(1)    
For subsection 914A(8) of the Act, an Australian financial services licence is subject to the following conditions:

(a)    

subject to subregulation (1A) - a condition that, if any event occurs that may make a material adverse change to the financial position of the financial services licensee by comparison with its financial position:

(i) at the time of the application for the Australian financial services licence; or

(ii) as described in documents lodged with ASIC after the application for the Australian financial services licence;

the financial services licensee must lodge with ASIC in the prescribed form a notice setting out particulars of the event as soon as practicable, and in any case not later than 3 business days, after the financial services licensee becomes aware of the event;

(b)    a condition that, if:

(i) there is a change in a matter particulars of which are entered in a register of financial services licensees; and

(ii) the change is not a direct consequence of an act by ASIC;

the financial services licensee must lodge with ASIC in the prescribed form particulars of the change within 10 business days after the change;

(c)    

a condition that, if:

(i) there is a change in a matter particulars of which are entered in a register of authorised representatives of financial services licensees; and

(ii) the change is not required to be reported in accordance with section 916F of the Act; and

(iii) the change is not a direct consequence of an act by ASIC;

the financial services licensee must ensure that particulars of the change are lodged with ASIC in the prescribed form within 30 business days after the change;

(ca)    a condition that the financial services licensee must ensure that each representative of the financial services licensee that may give an authorisation to another representative is aware of the requirements in subsections 916F(1) and (3) of the Act;

(d)    a condition that the financial services licensee must maintain a record of the training (relevant to the provision of financial services) that each of its representatives has undertaken, including:

(i) training undertaken after the representative became a representative of the licensee; and

(ii) any training undertaken before the representative became a representative of the licensee to the extent that the financial services licensee is able to obtain the information by reasonable inquiry;

(e)    a condition that the financial services licensee must ensure that, before:

(i) the financial services licensee authorises a person to provide a financial service on its behalf as mentioned in section 916A of the Act; or

(ii) a body corporate that is an authorised representative of the financial services licensee authorises an individual to provide a financial service on behalf of the financial services licensee as mentioned in section 916B of the Act;

reasonable inquiries are made to establish:

(iii) the person ' s identity; and

(iv) whether the person has already been allocated a number by ASIC as an authorised representative;

(f)    a condition that the financial services licensee must ensure that, if:

(i) ASIC has allocated a number to an authorised representative; and

(ii) the financial services licensee, or a body corporate that has authorised an individual to provide a financial service on behalf of the financial services licensee as mentioned in section 916B of the Act, lodges a document with ASIC that refers to the authorised representative;

the document refers to the number.

(g)    a condition that the financial services licensees must provide a copy of an authorisation of any of its authorised representatives:

(i) on request by any person; and

(ii) free of charge; and

(iii) as soon as practicable after receiving the request and, in any event, within 10 business days after the day on which it received the request;

(h)    a condition that the financial services licensees must take reasonable steps to ensure that each of its authorised representatives supplies a copy of its authorisation by the financial services licensee:

(i) on request by any person; and

(ii) free of charge; and

(iii) as soon as practicable after receiving the request and, in any event, within 10 business days after the day on which it received the request;

(i)    a condition that, if a financial services licensee becomes aware of any change in control of the financial services licensee, the financial services licensee must lodge with ASIC, in the prescribed form, particulars of the change not later than 10 business days after the change;

(j)    a condition that, on the request of any person, the financial services licensee must make available a copy of its financial services licence within a reasonable time for inspection by that person;

(k)    

if the financial services licensee is a limited licensee - a condition that the licensee must, within 3 years from the date on which the licence is granted and if requested in writing by ASIC, demonstrate to the satisfaction of ASIC that:

(i) if the licensee is an individual - the licensee has:

(A) knowledge of the licensee ' s obligations under the Act and these Regulations; and

(B) the competence to provide the financial services covered by the licence; or

(ii) if the licensee is a partnership or corporation - each recognised accountant that supervises and has responsibility for the provision of financial services covered by the licence has:

(A) knowledge of the licensee ' s obligations under the Act and these Regulations; and

(B) the competence to provide the financial services covered by the licence.

(l) (Repealed)

7.6.04(1A)    

Paragraph (1)(a) does not apply to a body regulated by APRA, unless the body is an RSE licensee that is also:

(a)    the responsible entity of a registered scheme; or

(b)    the corporate director of a CCIV.

7.6.04(2)    

For paragraph (1)(i) :

(a)    a change in control , in relation to a financial services licensee, includes a transaction, or a series of transactions in a 12 month period, that results in a person having control of the financial services licensee (either alone or together with associates of the person); and

(b)     control , in relation to a financial services licensee, means:

(i) if the financial services licensee is a body corporate:

(A) having the capacity to cast, or control the casting of, more than one-half of the maximum number of votes that might be cast at a general meeting of the financial services licensee; or

(B) directly or indirectly holding more than one half of the issued share capital of the financial services licensee (not including any part of the issued share capital that carries no right to participate beyond a specified amount in a distribution of either profits or capital); or

(ii) the capacity to control the composition of the financial services licensee ' s board or governing body; or

(iii) the capacity to determine the outcome of decisions about the licensee ' s financial and operating policies; and

(c)    for subparagraph (b)(iii), the following matters must be taken into account in determining whether a person has the capacity to determine the outcome of decisions about a financial services licensee ' s financial and operating policies:

(i) the practical influence the person can exert (rather than the rights it can enforce);

(ii) any practice or pattern of behaviour affecting the financial services licensee ' s financial or operating policies is to be taken into account (whether or not it involves a breach of an agreement or a breach of trust).

7.6.04(2A)    
(Repealed by FRLI No F2022L01614, Sch 1[19] (effective 10 December 2022).)

7.6.04(3)    

In this regulation:

class of product advice
(Repealed by FRLI No F2023L01458, Sch 1 [ 183] (effective 1 November 2023).)

limited financial services
means the following financial services:

(a) financial product advice on self-managed superannuation funds;

(b) financial product advice on superannuation products in relation to a person ' s existing holding in a superannuation product but only to the extent required for:

(i) making a recommendation that the person establish a self managed superannuation fund; or

(ii) providing advice to the person on contributions or pensions under a superannuation product;

(c) class of product advice on the following:

(i) superannuation products;

(ii) securities;

(iii) simple managed investment schemes;

(iv) general insurance products;

(v) life risk insurance products;

(vi) basic deposit products;

(d) arrange to deal in an interest in a self managed superannuation fund.

Note 1: (Repealed)

Note 2: See subregulation 1.0.02(1) for the meaning of simple managed investment scheme .

Note 3: Financial product advice on self managed superannuation funds includes advice about acquiring or disposing of an interest in a self managed superannuation fund.

limited licensee
means a financial services licensee that:

(a) is:

(i) a recognised accountant; or

(ii) a corporation that has one or more recognised accountants that supervise and have responsibility for the provision of financial services covered by its licence; or

(iii) a partnership that has one or more recognised accountants that supervise and have responsibility for the provision of financial services covered by its licence; and

(b) applied for the financial services licence between 1 July 2013 and 30 June 2016; and

(c) is only licensed to provide one or more limited financial services.

recognised accountant
means:

(a) a member of CPA Australia who:

(i) holds a Public Practice Certificate issued by CPA Australia Ltd; and

(ii) is entitled to use the letters " CPA " or " FCPA " ; and

(iii) is subject to, and complies with, CPA Australia ' s continuing professional education requirements; or

(b) a member of The Institute of Chartered Accountants in Australia ( ICAA ) who:

(i) holds a Certificate of Public Practice issued by ICAA; and

(ii) is entitled to use the letters " ACA " , " CA " or " FCA " ; and

(iii) is subject to, and complies with, ICAA ' s continuing professional education requirements; or

(c) a member of the Institute of Public Accountants ( IPA ) who:

(i) holds a Public Practice Certificate issued by IPA; and

(ii) is entitled to use the letters " FIPA " or " MIPA " ; and

(iii) is subject to, and complies with, IPA ' s continuing professional education requirements.