Treasury Laws Amendment (Rationalising ASIC Instruments) Regulations 2022 (F2022L01629)

Schedule 1   Licensing exemptions for financial counselling agencies and financial capability service providers

Corporations Regulations 2001

1   At the end of subregulation 7.6.01(1)

Add:

(za) the provision of financial product advice to a client by a financial capability service provider as part of the provision of a financial capability service in the following circumstances:

(i) the advice relates to a basic deposit product;

(ii) no fees or charges (however described) are payable by or on behalf of the client in relation to the financial capability service;

(iii) no remuneration (whether by way of commission or otherwise) is payable to, or for the benefit of, the financial capability service provider, its representatives or its associates in relation to any action by or on behalf of the client arising from the financial capability service (including the advice);

(iv) the financial capability service provider does not carry on or otherwise participate in a financial services business involving the provision of a financial service, other than a financial service of the kind to which this paragraph applies;

(v) the financial capability service provider takes all reasonable steps to ensure that none of its representatives provides or participates in the provision of a financial service, other than a financial service of the kind to which this paragraph applies;

(vi) the financial capability service provider takes all reasonable steps to ensure that each person who provides the financial capability service (including the advice) on its behalf has undertaken appropriate training to ensure that they have adequate skills and knowledge to satisfactorily provide that service (including that advice);

(zb) the provision of financial product advice to a client by a financial counselling agency as part of the provision of a financial counselling service if the advice:

(i) relates to a deposit product, a facility for making non-cash payments (within the meaning of subsection 763D(1) of the Act), an insurance product, an RSA product or a superannuation product; or

(ii) is to the effect that the client should or may dispose of a security, a financial product referred to in paragraph 764A(1)(b) or (ba) of the Act, or a debenture, stock or bond issued by a government;

and the following circumstances apply:

(iii) no fees or charges (however described) are payable by or on behalf of the client in relation to the financial counselling service, other than any fees or charges payable on behalf of the client by the Commonwealth, a State or a Territory;

(iv) no remuneration (whether by way of commission or otherwise) is payable to, or for the benefit of, the financial counselling agency, its representatives or its associates in relation to any action by or on behalf of the client arising from the financial counselling service (including the advice);

(v) the financial counselling agency does not carry on or otherwise participate in a financial services business involving the provision of a financial service, other than a financial service of the kind to which this paragraph applies or a claims handling and settling service;

(vi) the financial counselling agency takes all reasonable steps to ensure that none of its representatives provides or participates in the provision of a financial service, other than a financial service of the kind to which this paragraph applies or a claims handling and settling service;

(vii) the financial counselling agency takes all reasonable steps to ensure that each person who provides the financial counselling service (including the advice) on its behalf is a member of, or is eligible to be a member of, a financial counselling association;

(viii) the financial counselling agency takes all reasonable steps to ensure that each person who provides the financial counselling service (including the advice) on its behalf has undertaken appropriate training to ensure that they have adequate skills and knowledge to satisfactorily provide that service (including that advice).


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