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CORPORATIONS ACT 2001 - SECT 742 Exemptions and modifications by regulations

CORPORATIONS ACT 2001 - SECT 742

Exemptions and modifications by regulations

  (1)   The regulations may:

  (a)   exempt a person or class of persons from all or specified provisions of this Chapter; or

  (b)   exempt a security or class of securities from all or specified provisions of this Chapter; or

  (c)   provide that this Chapter applies as if specified provisions were omitted, modified or varied as specified in the regulations.

  (2)   Without limiting subsection   (1), regulations made for the purposes of this section may:

  (a)   declare that provisions of this Chapter are modified so that they apply (with or without further modifications) in relation to persons, securities, financial products or situations to which they would not otherwise apply; or

  (b)   declare that provisions of this Chapter are modified so that they apply (whether with or without further modifications) in a way that changes the person by whom or to whom a document or information is required to be given by a provision of this Chapter.

  (3)   For the purpose of this section, the provisions of this Chapter include:

  (a)   definitions in this Act, or in the regulations, as they apply to references in this Chapter; and

  (b)   any provisions of Part   10.2 (transitional provisions) that relate to provisions of this Chapter.

 

Commonwealth Coat of Arms of Australia

Corporations Act 2001

No.   50, 2001

Compilation No.   128

Compilation date:   1 January 2024

Includes amendments:   Act No. 69, 2023

Registered:   24 January 2024

This compilation is in 7 volumes

Volume 1:   sections   1-260E

Volume 2:   sections   283AA-600K

Volume 3:   sections   601-742

Volume 4:   sections   760A-994Q

Volume 5:   sections   1010A-1243A

Volume 6:   sections   1272-1701

Volume 7:   Schedules

  Endnotes

Each volume has its own contents

About this compilation

This compilation

This is a compilation of the Corporations Act 2001 that shows the text of the law as amended and in force on 1 January 2024 (the compilation date ).

The notes at the end of this compilation (the endnotes ) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.

Self - repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

 

 

 

Contents

Chapter   7--Financial services and markets

Part   7.1--Preliminary

Division   1--Object of Chapter and outline of Chapter

760A   Object of Chapter

760B   Outline of Chapter

Division   2--Meaning of some terms relating to financial services and markets

761A   Meaning of some terms relating to financial services and markets

761B   Meaning of arrangement

761CAA   Meaning of claimant intermediary

761CA   Meaning of class and kind of financial products and financial services

761D   Meaning of derivative

761DA   Meaning of insurance claims manager

761E   Meaning of acquire , issue and provide

761EA   Meaning of margin lending facility , margin call and associated expressions

761F   Meaning of person --generally includes a partnership

761FA   Meaning of person --generally includes multiple trustees

761G   Meaning of retail client and wholesale client

761GA   Meaning of retail client --sophisticated investors

761H   References to this Chapter include references to regulations or other instruments made for the purposes of this Chapter

Division   3--Meaning of financial product and related terms

Subdivision A--Preliminary

762A   Overview of approach to defining what a financial product is

762B   What if a financial product is part of a broader facility?

762C   Meaning of facility

Subdivision B--The general definition

763A   Meaning of financial product

763B   Meaning of makes a financial investment

763C   Meaning of manages financial risk

763D   Meaning of makes non - cash payments

763E   What if a financial product is only incidental?

Subdivision C--Specific inclusions

764A   Specific things that are financial products (subject to Subdivision D)

Subdivision D--Specific exclusions

765A   Specific things that are not financial products

Division   4--Meaning of financial service and related terms

766A   Meaning of financial service

766B   Meaning of financial product advice , personal advice and general advice

766C   Meaning of dealing

766D   Meaning of makes a market

766E   Meaning of custodial or depository service

766F   Meaning of crowd - funding service

766G   Meaning of claims handling and settling service

766H   Meaning of superannuation trustee service

Division   5--Meaning of financial market

767A   Meaning of financial market

Division   6--Meaning of clearing and settlement facility

768A   Meaning of clearing and settlement facility

Division   7--General provisions relating to civil and criminal liability

769A   Part   2.5 of Criminal Code does not apply

769B   People are generally responsible for the conduct of their agents, employees etc.

769C   Representations about future matters taken to be misleading if made without reasonable grounds

Part   7.2--Licensing of financial markets

Division   1--Preliminary

790A   Meaning of clearing and settlement arrangements

Division   2--Requirement to be licensed

791A   Need for a licence

791B   Other prohibitions on holding out

791C   Exemptions by Minister

791D   Meaning of operated in this jurisdiction --financial market

Division   3--Regulation of market licensees

Subdivision A--Licensee's obligations

792A   General obligations

792B   Obligation to notify ASIC of certain matters

792C   Giving ASIC information about a listed disclosing entity

792D   Obligation to assist ASIC

792E   Obligation to give ASIC access to market facilities

792F   Annual report

792G   Obligations to notify people about clearing and settlement arrangements in certain circumstances

792H   Change of country by foreign licensee

792I   Making information about compensation arrangements publicly available

Subdivision B--The market's operating rules and procedures

793A   Content of the operating rules and procedures

793B   Legal effect of operating rules

793C   Enforcement of operating rules

793D   Changing the operating rules

793E   Disallowance of changes to operating rules

Subdivision C--Powers of the Minister and ASIC

794A   Minister's power to give directions

794B   Minister's power to require special report

794C   ASIC assessment of licensee's compliance

794D   ASIC's power to give directions

794E   Additional directions to clearing and settlement facilities

Division   4--The Australian market licence

Subdivision A--How to get a licence

795A   How to apply for a licence

795B   When a licence may be granted

795C   Publication of notice of licence grant

795D   More than one licence in the same document

795E   More than one market covered by the same licence

Subdivision B--The conditions on the licence

796A   The conditions on the licence

Subdivision C--When a licence can be varied, suspended or cancelled

797A   Varying licences

797B   Immediate suspension or cancellation

797C   Suspension or cancellation following hearing and report

797D   Effect of suspension

797E   Variation or revocation of suspension

797F   Publication of notice of licence suspension or cancellation

797G   Suspension and cancellation only in accordance with this Subdivision

Division   5--Other matters

798A   Matters to be taken into account by the Minister

798B   ASIC may give advice to Minister

798C   Market licensee or related body corporate etc. listing on market

798D   Exemptions and modifications for self - listing licensees or related bodies corporate etc.

798DA   Market licensee, related body corporate etc. or competitor participating in market

798E   Other potential conflict situations

Part   7.2A--Supervision of financial markets

798F   ASIC to supervise financial markets

798G   Market integrity rules

798H   Complying with market integrity rules

798J   Directions by ASIC

798K   Alternatives to civil proceedings

798L   Exemptions and modifications by regulations

798M   Exemptions by Minister

Part   7.3--Licensing of clearing and settlement facilities

Division   1--Requirement to be licensed

820A   Need for a licence

820B   Other prohibitions on holding out

820C   Exemptions by Minister

820D   Meaning of operated in this jurisdiction-- clearing and settlement facility

Division   2--Regulation of CS facility licensees

Subdivision A--Licensee's obligations

821A   General obligations

821B   Obligation to notify ASIC of certain matters

821BA   Obligation to notify Reserve Bank of certain matters

821C   Obligation to assist

821D   Obligation to give ASIC access to the facility

821E   Annual report

821F   Change of country by foreign licensee

Subdivision B--The facility's operating rules and procedures

822A   Content of the operating rules and procedures

822B   Legal effect of operating rules

822C   Enforcement of operating rules

822D   Changing the operating rules

822E   Disallowance of changes to operating rules

Subdivision C--Powers of the Minister, ASIC and the Reserve Bank in relation to licensees

823A   Minister's power to give directions

823B   Minister's power to require special report

823C   ASIC assessment of licensee's compliance

823CA   Reserve Bank assessment of licensee's compliance

823D   Directions power--protecting dealings in financial products and ensuring fair and effective provision of services by CS facilities

823E   Directions power--reduction of systemic risk

Division   3--The Australian CS facility licence

Subdivision A--How to get a licence

824A   How to apply for a licence

824B   When a licence may be granted

824C   Publication of notice of licence grant

824D   More than one licence in the same document

824E   More than one CS facility covered by the same licence

Subdivision B--The conditions on the licence

825A   The conditions on the licence

Subdivision C--When a licence can be varied, suspended or cancelled

826A   Varying licences

826B   Immediate suspension or cancellation

826C   Suspension or cancellation following hearing and report

826D   Effect of suspension

826E   Variation or revocation of suspension

826F   Publication of notice of licence suspension or cancellation

826G   Suspension and cancellation only in accordance with this Subdivision

Division   4--Other matters

827A   Matters to be taken into account by the Minister

827B   ASIC may give advice to Minister

827C   Reserve Bank may give advice to Minister

827D   Reserve Bank may determine financial stability standards

Part   7.3A--CS services

Division   1--Preliminary

828   Meaning of CS service

Division   2--Regulation of CS services: CS services rules

Subdivision A--Power to make CS services rules

828A   CS services rules

828B   CS services in relation to which rules may impose requirements

Subdivision B--Compliance with CS services rules

828C   Obligation to comply with CS services rules

828D   Obligation to notify ASIC in respect of breach

828E   Alternatives to civil proceedings

828F   Failure to comply with CS services rules does not invalidate transaction etc.

Subdivision C--Power of ASIC to give directions etc.

828G   ASIC's power to give directions to person not complying with obligations

Subdivision D--The process of making CS services rules

828H   Matters to which ASIC must have regard when making rules

828J   ASIC to consult before making rules

828K   Ministerial consent to rules required

828L   Emergency rules: consultation and consent not required

828M   Amendment and revocation of CS services rules

Division   3--Other provisions

828N   ASIC may give advice to Minister

828P   ACCC may give advice to Minister

828Q   Reserve Bank of Australia may give advice to Minister

828R   Exemptions by the regulations or by ASIC

Part   7.4--Limits on involvement with licensees

Division   1--Limit on control of certain licensees

Subdivision A--15% voting power limit

850A   Meaning of widely held market body

850B   Meaning of unacceptable control situation

850C   Acquisitions of shares

850D   Orders to remedy unacceptable control situation

850E   Injunctions

Subdivision B--Approval to exceed 15% voting power limit

851A   Application for approval to exceed 15% voting power limit

851B   Approval of application

851C   Duration of approval

851D   Conditions of approval

851E   Varying percentage approved

851F   Revoking an approval

851G   Further information about applications

851H   Time limit for Minister's decision

851I   Preservation of voting power in relation to bodies specified in regulations made for paragraph   850A(b)

Subdivision C--Other matters

852A   Acquisition of property

852B   Anti - avoidance

Division   2--Individuals who are not fit and proper are disqualified

853A   Meaning of disqualified individual

853B   Meaning of involved --in some licensees or applicants for a licence

853C   Declaration by ASIC

853D   Procedure for declaration

853E   Revoking a declaration

853F   Obligations on disqualified individuals

853G   Notification by ASIC

Division   3--Miscellaneous

854A   Record - keeping and giving of information

854B   Exemptions and modifications by regulations

Part   7.5--Compensation regimes for financial markets

Division   1--Preliminary

880A   Part does not apply to markets licensed under special provisions about overseas markets

880B   Meaning of some terms relating to compensation regimes for financial markets

Division   2--When there must be a compensation regime

881A   Licensed markets through which participants provide services for retail clients must generally have a compensation regime

881B   Additional requirements for the licence application

881C   What happens if an application contains information in accordance with paragraph   881B(2)(c)

881D   What happens if an application contains a statement in accordance with paragraph   881B(2)(d)

Division   3--Approved compensation arrangements

Subdivision A--Approval of compensation arrangements

882A   How to get compensation arrangements approved with grant of licence

882B   How to get compensation arrangements approved after licence is granted

882C   Revocation of approval

882D   Minister's power to give directions

Subdivision B--Effect of compensation rules forming part of Division   3 arrangements

883A   Legal effect of compensation rules

883B   Enforcement of compensation rules

883C   Other sources of funds for compensation

883D   Payment of levies

Subdivision C--Changing Division   3 arrangements

884A   Division   3 arrangements must generally only be changed in accordance with this Subdivision

884B   Changing Division   3 arrangements--matters required to be dealt with in the compensation rules

884C   Changing Division   3 arrangements--matters not required to be dealt with in the compensation rules

Subdivision D--Are compensation arrangements adequate?

885A   Purpose of this Subdivision

885B   Requirements to be complied with for arrangements to be adequate

885C   The losses to be covered

885D   Certain losses that are not Division   3 losses

885E   The amount of compensation

885F   Method of payment of compensation

885G   Making and determination of claims

885H   The source of funds--general

885I   Administration and monitoring

885J   The losses to be covered--other matters to be taken into account

Subdivision E--Other provisions about Division   3 arrangements

886A   Only one claim in respect of the same loss

886B   Regulations relating to fidelity funds

Division   4--NGF Compensation regime

Subdivision A--Application of Division

887A   Markets to which this Division applies

Subdivision B--Claims for and payment of compensation

888A   The situations in which compensation may be claimed

888B   Kinds of compensation available

888C   Amount of compensation payable

888D   Payment of compensation

888E   Making and determination of claims

888F   The SEGC has power to determine claims

888G   Allowing a claim does not constitute an admission of any other liability

888H   Claimant may apply to Court if claim disallowed

888I   Non - NGF property of the SEGC not available to meet claims

888J   The SEGC may enter into contracts of insurance or indemnity

888K   NGF may be used to acquire financial products to be transferred as compensation

Subdivision C--The NGF

889A   Continuation of the National Guarantee Fund

889B   Compensation to be provided out of the NGF

889C   The SEGC to keep the NGF

889D   What the NGF consists of

889E   Power to borrow etc. for purposes of the NGF

889F   Money borrowed and paid to the SEGC

889G   Money borrowed and not paid to the SEGC

889H   Payments out of the NGF

889I   Minimum amount of the NGF

889J   Levy by the SEGC

889K   Levy by market operator

Subdivision D--The SEGC

890A   Minister to nominate the SEGC

890B   The SEGC's functions and powers

890C   Delegation

890D   Operating rules of the SEGC

890E   Legal effect of the SEGC's operating rules

890F   Enforcement of the SEGC's operating rules

890G   Changing the SEGC's operating rules

890H   Disallowance of changes to the SEGC's operating rules

Subdivision E--Other provisions relating to compensation under this Division

891A   Payment out of the NGF to prescribed body with arrangements covering clearing and settlement facility support

891B   Markets operated by bodies corporate that become members of the SEGC--regulations may deal with transitional provisions and other matters

891C   Regulations may make different provision in respect of different markets etc.

Division   5--Provisions common to both kinds of compensation arrangements

892A   Meaning of Part   7.5 authority and Part   7.5 regulated fund

892B   How Part   7.5 regulated funds are to be kept

892C   Money in a Part   7.5 regulated fund may be invested

892D   Powers of Part   7.5 authority to require production or delivery of documents or statements

892E   Power to require assistance for purpose of dealing with a claim

892F   Part   7.5 authority's right of subrogation if compensation is paid

892G   Excess money in Part   7.5 regulated funds

892H   Accounting and reporting

892I   Division   3 arrangements--reporting in situations where compensation does not come out of a Part   7.5 regulated fund

892J   Regulations may provide for qualified privilege in respect of certain matters

892K   Risk assessment report

Division   6--Miscellaneous

893A   Exemptions and modifications by regulations

893B   Exemptions by Minister

Part   7.5A--Regulation of derivative transactions and derivative trade repositories

Division   1--Application of Part

900A   Derivatives and transactions etc. to which this Part applies

Division   2--Regulation of derivative transactions: derivative transaction rules

Subdivision A--Power to make derivative transaction rules

901A   ASIC may make derivative transaction rules

901B   Derivatives in relation to which rules may impose requirements

901C   Regulations may limit the transactions in relation to which rules may impose requirements

901D   Regulations may limit the persons on whom requirements may be imposed

Subdivision B--Compliance with derivative transaction rules

901E   Obligation to comply with derivative transaction rules

901F   Alternatives to civil proceedings

901G   Failure to comply with derivative transaction rules does not invalidate transaction etc.

Subdivision C--The process of making derivative transaction rules

901H   Matters to which ASIC must have regard when making rules

901J   ASIC to consult before making rules

901K   Ministerial consent to rules required

901L   Emergency rules: consultation and consent not required

901M   Amendment and revocation of derivative transaction rules

Division   3--Regulation of licensed derivative trade repositories: supervision by ASIC

902A   ASIC to supervise licensed derivative trade repositories

Division   4--Regulation of licensed derivative trade repositories: derivative trade repository rules

Subdivision A--Power to make derivative trade repository rules

903A   ASIC may make derivative trade repository rules

903B   Rules may only impose requirements on operators and officers of licensed derivative trade repositories

903C   Regulations may limit how rules may deal with matters related to derivative trade data

Subdivision B--Compliance with derivative trade repository rules

903D   Obligation to comply with derivative trade repository rules

903E   Alternatives to civil proceedings

Subdivision C--The process of making derivative trade repository rules

903F   Matters to which ASIC has regard when making rules

903G   ASIC to consult before making rules

903H   Ministerial consent to rules required

903J   Emergency rules: consultation and consent not required

903K   Amendment and revocation of derivative trade repository rules

Division   5--Regulation of licensed derivative trade repositories: other obligations and powers

Subdivision A--Obligations

904A   General obligations

904B   Obligations relating to derivative trade data

904C   Obligation to notify ASIC of certain matters

904D   Obligation to assist ASIC, APRA and the Reserve Bank

904E   Obligation to give ASIC access to derivative trade repository facilities

Subdivision B--Powers of Minister and ASIC to give directions etc.

904F   Minister's power to give directions to licensee not complying with obligations

904G   ASIC's power to give directions to licensee not complying with obligations

904H   ASIC's power to give directions requiring special reports

904J   ASIC may assess licensee's compliance

904K   Directions relating to derivative trade data if repository ceases to be licensed

Division   6--Regulation of licensed derivative trade repositories: licensing

Subdivision A--Requirement for some trade repositories to be licensed

905A   Regulations may identify derivative trade repositories as being required to be licensed

Subdivision B--Granting of licences

905B   How to apply for a licence

905C   When a licence may be granted

905D   Publication of notice of licence grant

905E   More than one derivative trade repository covered by the same licence

Subdivision C--The conditions on a licence

905F   The conditions on the licence

Subdivision D--When a licence can be varied, suspended or cancelled

905G   Varying licences

905H   Immediate suspension or cancellation

905J   Suspension or cancellation following hearing and report

905K   Effect of suspension

905L   Variation or revocation of suspension

905M   Publication of notice of licence suspension or cancellation

905N   Suspension and cancellation only in accordance with this Subdivision

Subdivision E--Other matters

905P   Matters to be taken into account by ASIC

Division   7--Regulation of prescribed derivative trade repositories

906A   Regulations may impose obligations and confer powers

Division   8--Other matters

907A   Other prohibitions on holding out

907B   Making provision by reference to instruments as in force from time to time

907C   Compliance with requirements to provide derivative trade data or other information: protection from liability

907D   Exemptions by ASIC

907E   Exemptions and modifications by regulations

Part   7.5B--Regulation of financial benchmarks

Division   1--Preliminary

908AA   Simplified outline of this Part

908AB   Meaning of financial benchmark

908AC   Meaning of significant financial benchmark

908AD   Emergency declarations: consultation and consent not required

908AE   Notifying administrator about declarations

908AF   ASIC to supervise financial benchmarks that are specified in benchmark administrator licences

908AG   Extraterritorial application

Division   2--Licensing of financial benchmarks

Subdivision A--Requirement to be licensed

908BA   Administrators of significant financial benchmarks must be licensed

908BB   Other prohibitions on holding out

Subdivision B--Granting licences

908BC   When a licence may be granted

908BD   Applying for a licence

908BE   More than one financial benchmark may be specified in the same licence

908BF   Publishing details of licences

Subdivision C--Conditions on licences

908BG   Conditions, including varying and revoking conditions

Subdivision D--When a licence can be varied, suspended or cancelled

908BH   Varying licences

908BI   Immediate suspension or cancellation

908BJ   Suspension or cancellation following hearing and report

908BK   Effect of suspension

908BL   Varying or revoking a suspension

908BM   Publishing details of suspensions or cancellations of licences

908BN   Variations, suspensions or cancellations only in accordance with this Subdivision

Subdivision E--Matters to which ASIC must have regard

908BO   Matters to which ASIC must have regard

Subdivision F--Other obligations of licensees

908BP   General obligations

908BQ   Obligation to notify ASIC of certain matters

908BR   Obligation to assist ASIC, APRA and the Reserve Bank

908BS   Obligation to give ASIC access to licensee's facilities

Subdivision G--Directions to licensees

908BT   ASIC's power to give directions to licensee not complying with obligations

908BU   Minister may disallow all or part of an ASIC direction etc.

908BV   ASIC's power to give directions requiring reports

Subdivision H--Other matters

908BW   ASIC may assess licensee's compliance

908BX   Basis of licences

Division   3--Financial benchmark rules and compelled financial benchmark rules

Subdivision A--Power to make financial benchmark rules

908CA   ASIC may make financial benchmark rules

908CB   Main permitted matters that may be dealt with in the rules

908CC   Other permitted matters that may be dealt with in the rules

Subdivision B--Power to make compelled financial benchmark rules

908CD   ASIC may make compelled financial benchmark rules

908CE   Permitted powers and matters that may be dealt with in the rules

Subdivision C--Compliance with each set of rules etc.

908CF   Obligation to comply with each set of rules

908CG   Alternatives to civil proceedings

908CH   Infringement notices

908CI   Enforceable undertakings

908CJ   Protection from liability for compliance in good faith

Subdivision D--Matters relating to the making of each set of rules

908CK   Matters to which ASIC has regard when making rules

908CL   ASIC to consult before making rules

908CM   Ministerial consent to rules required

908CN   Emergency rules: consultation and consent not required

908CO   Requirements

908CP   Regulations may limit how rules may deal with certain matters

908CQ   Varying or revoking the rules

Division   4--Offences and civil penalties relating to manipulation of financial benchmarks

908DA   Manipulation of financial benchmarks

908DB   False or misleading statements or information that could affect financial benchmarks

908DC   Penalties for offences against this Division

908DD   Geographical scope of offences and civil penalty provisions

Division   5--Other provisions

908EA   Making provision by referring to instruments as in force from time to time

908EB   Exemptions by the regulations or by ASIC

Part   7.6--Licensing of providers of financial services

Division   1--Preliminary

910A   Meaning of some terms relating to licensing of providers of financial services

910B   Meaning of control

910C   Meaning of linked to a refusal or failure to give effect to a determination made by AFCA

910D   Insurance fulfilment providers taken to be acting on behalf of financial services licensees

Division   2--Requirement to be licensed or authorised

911A   Need for an Australian financial services licence

911B   Providing financial services on behalf of a person who carries on a financial services business

911C   Prohibition on holding out

911D   When a financial services business is taken to be carried on in this jurisdiction

Division   3--Obligations of financial services licensees

Subdivision A--General obligations

912A   General obligations

912B   Arrangements for compensation if financial services provided to persons as retail clients

Subdivision B--Providing information and assistance to ASIC

912C   Direction to provide a statement

912CA   Regulations may require information to be provided

912D   Meaning of reportable situation

912DAA   Obligation to lodge a report--reportable situations in relation to the financial services licensee

912DAB   Obligation to lodge a report--reportable situations in relation to other financial services licensees

912DAC   Obligation to give notice--participants in licensed market or licensed CS facility

912DAD   ASIC must publish details of certain reports

912DA   Obligation to notify ASIC of change in control

912DB   Obligation to notify ASIC if licensee does not provide financial service

912E   Surveillance checks by ASIC

Subdivision C--Notifying and remediating clients affected by reportable situations

912EA   Reporting to clients affected by a reportable situation

912EB   Obligation to investigate reportable situations that may affect clients

912EC   Obligation to keep records of compliance

Subdivision D--Miscellaneous

912F   Obligation to cite licence number in documents

Division   4--Australian financial services licences

Subdivision A--How to get a licence

913A   Applying for a licence

913B   When a licence may be granted

913BA   Fit and proper person test

913BB   Fit and proper person test--matters to which ASIC must have regard

913C   Licence numbers

Subdivision B--The conditions on the licence

914A   The conditions on the licence

914B   ASIC may request information etc. in relation to an application for conditions to be varied

Subdivision C--When a licence can be varied, suspended or cancelled

915A   Varying licences

915B   Immediate suspension or cancellation

915C   Suspension or cancellation after offering a hearing

915D   Effect of suspension

915E   Revocation of suspension

915F   Date of effect and publication of cancellation or suspension

915G   Statement of reasons

915H   ASIC may allow licence to continue in effect

915I   Special procedures for APRA - regulated bodies

915J   Variation, suspension and cancellation only under this Subdivision

Division   5--Authorised representatives

916A   How representatives are authorised

916B   Sub - authorisations

916C   Authorised representative of 2 or more licensees

916D   Licensees cannot authorise other licensees

916E   Licensees acting under a binder

916F   Obligation to notify ASIC etc. about authorised representatives

916G   ASIC may give licensee information about representatives

Division   6--Liability of financial services licensees for representatives

917A   Application of Division

917B   Responsibility if representative of only one licensee

917C   Representatives of multiple licensees

917D   Exception if lack of authority is disclosed to client

917E   Responsibility extends to loss or damage suffered by client

917F   Effect of Division

Division   8--Banning or disqualification of persons from providing financial services

Subdivision A--Banning orders

920A   ASIC's power to make a banning order

920B   What a banning order prohibits

920C   Effect of banning orders

920D   Variation or cancellation of banning orders

920E   Date of effect and publication of banning order, variation or cancellation

920F   Statement of reasons

Subdivision B--Disqualification by the Court

921A   Disqualification by the Court

Division   8A--Professional standards for relevant providers etc.

Subdivision A--Education and training standards

921B   Meaning of education and training standards

921BA   Relevant providers to meet education and training standards

921BB   Additional requirements for relevant providers who provide tax (financial) advice services

921BC   Exemptions for certain relevant providers

Subdivision AA--Limitations on authorisation to provide personal advice

921C   Limitation on authorisation to provide personal advice unless conditions met

Subdivision B--Ethical standards

921E   Code of Ethics

Subdivision C--Provisional relevant providers

921F   Requirements relating to provisional relevant providers

Subdivision D--Other matters

921G   Approval of foreign qualifications

921GA   Approval of domestic qualifications

921H   Modifications of Part   in relation to continuing professional development

Division   8B--Action against relevant providers

Subdivision A--Action by Financial Services and Credit Panels

921K   Power of Financial Services and Credit Panels to take action against relevant providers

921L   Instruments that Financial Services and Credit Panels may make in relation to relevant providers

921M   Copy of instrument to be given to affected person etc.

921N   Variation or revocation of instruments made in relation to relevant providers

Subdivision B--Proposed action notices etc.

921P   Proposed action notice

921Q   Recommendations to ASIC in relation to restricted civil penalty provisions

921R   Notices to Tax Practitioners Board about qualified tax relevant providers who are registered tax agents

Subdivision C--Warnings and reprimands

921S   Warnings and reprimands by ASIC

921T   Warnings and reprimands by Financial Services and Credit Panels

Subdivision D--Fit and proper person test

921U   Fit and proper person test for relevant providers

Subdivision E--Review of decisions made under this Division etc.

921V   Review of decisions etc.

Subdivision F--Electronic communication

921W   Electronic communication of documents given by Financial Services and Credit Panels etc.

921X   Electronic communication of documents given to Financial Services and Credit Panels etc.

Division   8C--Registration of relevant providers

Subdivision A--Requirement for relevant providers to be registered

921Y   Unregistered relevant providers not to provide personal advice

921Z   Financial services licensees not to continue to authorise unregistered relevant providers to provide personal advice

Subdivision B--Applications for registration

921ZA   Application for registration--relevant providers who are financial services licensees applying to be registered

921ZB   Application for registration--financial services licensees applying to register relevant providers

Subdivision C--Registration and period of registration

921ZC   Registration of relevant providers

921ZD   Period of registration--relevant providers who are financial services licensees

921ZE   Period of registration--relevant providers who are registered in relation to financial services licensees

921ZF   Assisted decision making

Division   9--Registers relating to financial services

Subdivision A--Registers generally

922A   Registers relating to financial services

922B   Fees for searching registers

Subdivision B--Notice requirements relating to the Register of Relevant Providers

922D   Obligation to notify ASIC about a person who becomes a relevant provider

922E   Information about a relevant provider who is a financial services licensee

922F   Information about a relevant provider who is not a financial services licensee

922G   Meaning of recent advising history

922H   Ongoing obligation to notify ASIC when there is a change in a matter for a relevant provider

922HA   Obligation to notify ASIC of financial services licensee's CPD year

922HB   Obligation to notify ASIC of non - compliance with CPD provisions

922HC   Requirement to retain information

922J   Obligation to notify ASIC about a person who starts to have control of a body corporate licensee

922K   Obligation to notify ASIC about a person who ceases to have control of a body corporate licensee

922L   Requirement for notice to be lodged

922M   Failing to comply with obligation to notify ASIC

922N   Obligation for relevant providers to provide information to financial services licensees

922P   Change in matter within 30 business days

Subdivision C--Register of Relevant Providers

922Q   Register of Relevant Providers

922R   Relevant provider number

922S   Correcting the Register

Division   10--Restrictions on use of terminology

923A   Restriction on use of certain words or expressions

923B   Restriction on use of certain words or expressions unless authorised in licence conditions

923C   Restriction on use of terms "financial adviser" and "financial planner"

Division   11--Agreements with unlicensed persons relating to the provision of financial services

Subdivision A--Agreements affected

924A   Agreements with certain unlicensed persons

Subdivision B--Effect on agreements

925A   Client may give notice of rescission

925B   Effect of notice under section   925A

925C   Client may apply to Court for partial rescission

925D   Court may make consequential orders

925E   Agreement unenforceable against client

925F   Non - licensee not entitled to recover commission

925G   Onus of establishing non - application of section   925E or 925F

925H   Client may recover commission paid to non - licensee

925I   Remedies under this Division additional to other remedies

Division   12--Miscellaneous

926A   Exemptions and modifications by ASIC

926B   Exemptions and modifications by regulations

Part   7.7--Financial services disclosure

Division   1--Preliminary

940A   How Part applies if a financial services licensee is acting as authorised representative

940B   What if there is no reasonable opportunity to give a document, information or statement required by this Part?

940C   How documents, information and statements are to be given

940D   General approach to offence provisions

Division   2--Person provided with financial service as retail client to be given a Financial Services Guide

Subdivision A--Requirement for a Financial Services Guide to be given

941A   Obligation on financial services licensee to give a Financial Services Guide if financial service provided to person as a retail client

941B   Obligation on authorised representative to give a Financial Services Guide if financial service provided to person as a retail client

941C   Situations in which a Financial Services Guide is not required

941D   Timing of giving Financial Services Guide

941E   Information must be up to date

941F   Obligation to give updated Financial Services Guide

Subdivision B--Content and authorisation of Financial Services Guide

942A   Title of Financial Services Guide

942B   Financial Services Guide given by financial services licensee--main requirements

942C   Financial Services Guide given by authorised representative--main requirements

942D   Financial Services Guide may consist of 2 or more separate documents given at same time

942DA   Combining a Financial Services Guide and a Product Disclosure Statement in a single document

942E   Altering a Financial Services Guide after its preparation and before giving it to a person

Subdivision C--Supplementary Financial Services Guides

943A   What a Supplementary Financial Services Guide is

943B   Title of Supplementary Financial Services Guide

943C   Form of Supplementary Financial Services Guide

943D   Effect of giving a person a Supplementary Financial Services Guide

943E   Situation in which only a Supplementary Financial Services Guide need be given

943F   Altering a Supplementary Financial Services Guide after its preparation and before giving it to a person

Division   3--Additional requirements for personal advice provided to a retail client

Subdivision A--When this Division applies

944A   Situation in which Division applies

Subdivision C--Requirement for a Statement of Advice to be given

946A   Obligation to give client a Statement of Advice

946AA   Small investments--Statement of Advice not required

946B   Other situations in which a Statement of Advice is not required

946C   Timing of giving Statement of Advice

Subdivision D--Content of Statement of Advice

947A   Title of Statement of Advice

947B   Statement of Advice given by financial services licensee--main requirements

947C   Statement of Advice given by authorised representative--main requirements

947D   Additional requirements when advice recommends replacement of one product with another

947E   Statement of Advice not to be combined with Financial Services Guide or Product Disclosure Statement

Subdivision E--Other matters

948A   Qualified privilege if providing entity complies with this Division

Division   3A--Cash Settlement Fact Sheet

Subdivision A--When this Division applies

948B   Situation in which this Division applies

Subdivision B--Requirement for a Cash Settlement Fact Sheet to be given

948C   Obligation to give client a Cash Settlement Fact Sheet

948D   Timing for giving a Cash Settlement Fact Sheet

Subdivision C--Contents of a Cash Settlement Fact Sheet

948E   Title of Cash Settlement Fact Sheet

948F   Content of Cash Settlement Fact Sheet

Division   4--Other disclosure requirements

949A   General advice provided to retail client--obligation to warn client that advice does not take account of client's objectives, financial situation or needs

949B   Regulations may impose disclosure requirements in certain situations

Division   6--Miscellaneous

951A   Part   cannot be contracted out of

951B   Exemptions and modifications by ASIC

951C   Exemptions and modifications by regulations

Division   7--Enforcement

Subdivision A--Offences

952A   Overview

952B   Meaning of defective and disclosure document or statement

952C   Offence of failing to give a disclosure document or statement

952D   Offence of giving a disclosure document or statement knowing it to be defective

952E   Giving a defective disclosure document or statement (whether or not known to be defective)

952F   Offences of financial services licensee knowingly providing defective disclosure material to an authorised representative

952G   Offences of financial services licensee providing disclosure material to an authorised representative (whether or not known to be defective)

952H   Financial services licensee failing to ensure authorised representative gives disclosure documents or statements as required

952I   Offences if a Financial Services Guide (or Supplementary FSG) does not comply with certain requirements

952J   Offence if a Statement of Advice does not comply with certain requirements

952JA   Offence if a Cash Settlement Fact Sheet does not comply with certain requirements

952K   Offence if authorised representative gives out unauthorised Financial Services Guide (or Supplementary FSG)

952L   Offences if financial services licensee or authorised representative becomes aware that a Financial Services Guide (or Supplementary FSG) is defective

952M   Offence of unauthorised alteration of Financial Services Guide or Supplementary Financial Services Guide

Subdivision B--Civil liability

953A   Meaning of defective and disclosure document or statement

953B   Civil action for loss or damage

953C   Additional powers of court to make orders

Part   7.7A--Best interests obligations and remuneration

Division   1--Preliminary

960A   No contracting out

960B   Obligations under this Part   in addition to other obligations

Division   2--Best interests obligations

Subdivision A--Preliminary

961   Application of this Division

961A   Application to a financial services licensee acting as an authorised representative

Subdivision B--Provider must act in the best interests of the client

961B   Provider must act in the best interests of the client

961C   Meaning of reasonably apparent

961D   Meaning of reasonable investigation

961E   What would reasonably be regarded as in the best interests of the client?

961F   Meaning of basic banking product

Subdivision C--Resulting advice must be appropriate to the client

961G   Resulting advice must be appropriate to the client

Subdivision D--Where resulting advice still based on incomplete or inaccurate information

961H   Resulting advice still based on incomplete or inaccurate information

Subdivision E--Provider to give priority to the client's interests

961J   Conflict between client's interests and those of provider, licensee, authorised representative or associates

Subdivision F--Responsibilities of licensees under this Division

961K   Civil penalty provision--sections   961B, 961G, 961H and 961J

961L   Licensees must ensure compliance

961M   Civil action for loss or damage

961N   Additional powers of Court to make orders

961P   Meaning of responsible licensee

Subdivision G--Responsibilities of authorised representatives under this Division

961Q   Civil penalty provision--sections   961B, 961G, 961H and 961J

Division   3--Charging ongoing fees to clients

Subdivision A--Preliminary

962   Application of this Division

962A   Meaning of ongoing fee arrangement

962B   Meaning of ongoing fee

962C   Meaning of fee recipient

Subdivision B--Termination, disclosure and renewal

962E   Client may terminate arrangement at any time

962F   Arrangement terminates if this Subdivision not complied with

962FA   Arrangement terminates if Subdivision C not complied with

962G   Annual requirement to give fee disclosure statement

962H   Fee disclosure statements

962L   Meaning of renewal period

962M   If client notifies fee recipient that client does not wish to renew

962N   If client does not notify fee recipient that client wishes to renew

962P   Civil penalty provision--charging ongoing fees after arrangement terminated

962Q   Effect of termination

Subdivision C--Consent required for deduction of ongoing fees from accounts

962R   Fee recipient must not deduct ongoing fees without consent

962S   Fee recipient must not arrange for deduction of ongoing fees without consent or accept such deductions

962T   Requirements relating to consent

962U   Variation or withdrawal of consent

962V   When consent ceases to have effect

962W   Conditions requiring consent to be given are void

Subdivision D--Records of compliance

962X   Obligation to keep records of compliance

Division   4--Conflicted remuneration

Subdivision A--Preliminary

963   Application to a financial services licensee acting as an authorised representative

Subdivision B--Meaning of conflicted remuneration

963A   Meaning of conflicted remuneration --general

963AA   Benefits given in relation to life risk insurance products

963B   Monetary benefit given in certain circumstances not conflicted remuneration

963BA   Meaning of benefit ratio requirements and clawback requirements

963C   Non - monetary benefit given in certain circumstances not conflicted remuneration

963D   Benefits for employees etc. of ADIs

Subdivision C--Ban on conflicted remuneration

963E   Licensee must not accept conflicted remuneration

963F   Licensee must ensure compliance

963G   Authorised representative must not accept conflicted remuneration

963H   Other representatives must not accept conflicted remuneration

963J   Employer must not give employees conflicted remuneration

963K   Product issuer or seller must not give conflicted remuneration

963L   Volume - based benefits presumed to be conflicted remuneration

Subdivision D--Rebate of conflicted remuneration

963M   Person covered by this section in relation to conflicted remuneration

963N   Regulations may provide for rebate of conflicted remuneration

963P   Person covered by section   963M must pay amount etc. in accordance with regulations

Division   5--Other banned remuneration

Subdivision A--Volume - based shelf - space fees

964   Application

964A   Platform operator must not accept volume - based shelf - space fees

Subdivision B--Asset - based fees on borrowed amounts

964B   Application

964C   Application to a financial services licensee acting as an authorised representative

964D   Financial services licensees must not charge asset - based fees on borrowed amounts

964E   Authorised representatives must not charge asset - based fees on borrowed amounts

964F   Meaning of asset - based fee

964G   Meaning of borrowed

964H   Meaning of reasonably apparent

Division   6--Anti - avoidance

965   Anti - avoidance

Part   7.8--Other provisions relating to conduct etc. connected with financial products and financial services, other than financial product disclosure

Division   1--Preliminary

980A   Matters covered by this Part

980B   General approach to offence provisions

Division   2--Dealing with clients' money

Subdivision A--Money other than loans

981A   Money to which Subdivision applies

981B   Obligation to pay money into an account

981C   Regulations may deal with various matters relating to accounts maintained for the purposes of section   981B

981D   Money related to derivatives may be used for general margining etc. purposes

981E   Protection of money from attachment etc.

981F   Regulations may deal with how money to be dealt with if licensee ceases to be licensed etc.

981G   Account provider not liable merely because of licensee's contravention

981H   Money to which Subdivision applies taken to be held in trust

Subdivision AA--Client money reporting rules

981J   Client money reporting rules

981K   Matters that may be dealt with in client money reporting rules

981L   ASIC to consult before making rules

981M   Complying with client money reporting rules

981N   Alternatives to civil proceedings

981P   Compliance with requirements to provide data or other information to ASIC: protection from liability

Subdivision B--Loan money

982A   Money to which this Subdivision applies

982B   Obligation to pay money into an account

982C   Licensee to give client statement setting out terms of loan etc.

982D   Permitted use of loan

Subdivision C--Powers of Court

983A   Court may freeze certain accounts

983B   Interim order freezing accounts

983C   Duty of person to whom order directed to make full disclosure

983D   Further orders and directions

983E   Power of Court to make order relating to payment of money

Division   3--Dealing with other property of clients

984A   Property to which Division applies

984B   How property to which this Division applies is to be dealt with

Division   4--Special provisions relating to insurance

985A   Meaning of contract of insurance and insured

985B   Status of amounts paid to financial services licensees in respect of contracts of insurance

985C   Regulations may impose other requirements etc. if financial services licensee is not the insurer

985D   Financial services licensees etc. not to deal in general insurance products from unauthorised insurers etc.

Division   4A--Special provisions relating to margin lending facilities

Subdivision A--Responsible lending conduct for margin lending facilities

985EA   Application of this Subdivision

985E   Requirements before issuing etc. margin lending facility

985F   Assessment of unsuitability of margin lending facility

985G   Reasonable inquiries etc. about the retail client

985H   When margin lending facility must be assessed as unsuitable

985J   Giving the retail client the assessment

985K   Unsuitable margin lending facilities

Subdivision B--Notice of margin calls under margin lending facilities

985L   Issue of margin lending facility must not be conditional on agreement to receive communications through agent

985M   Notification of margin calls

Division   5--Obligations to report

986A   Reporting in relation to money to which Subdivision A or B of Division   2 applies or property to which Division   3 applies

986B   Reporting in relation to dealings in derivatives

Division   6--Financial records, statements and audit

Subdivision A--Preliminary

987A   Application of Division

Subdivision B--Financial records of financial services licensees

988A   Obligation to keep financial records

988B   Records to be kept so that profit and loss statements and balance sheet can be prepared and audited

988C   Language of records

988D   Location of records

988E   Particular categories of information to be shown in records

988F   Regulations may impose additional requirements

988G   Records taken to be made with licensee's authority

Subdivision C--Financial statements of financial services licensees

989B   Financial services licensee to prepare and lodge annual profit and loss statement and balance sheet

989C   Requirements as to contents and applicable accounting principles

989CA   Audit to be conducted in accordance with auditing standards

989D   Time of lodgment

Subdivision D--Appointment etc. of auditors

990A   Sections   990B to 990H not to apply to public companies

990B   Appointment of auditor by licensee

990C   When a person or firm is ineligible to act as auditor

990D   Ineligible person or firm must not consent to act or disqualify themselves etc.

990E   Duration of appointment of auditors

990F   Removal of auditors

990G   Resignation of auditors--requirements for resignation

990H   Resignation of auditors--when resignation takes effect

990I   Auditor's right of access to records, information etc.

990J   Auditor's fees and expenses

990K   Auditor to report on certain matters

990L   Qualified privilege for auditor etc.

Division   7--Other rules about conduct

991A   Financial services licensee not to engage in unconscionable conduct

991B   Financial services licensee to give priority to clients' orders

991C   Regulations may deal with various matters relating to instructions to deal through licensed markets

991D   Regulations may require records to be kept in relation to instructions to deal on licensed markets and foreign markets

991E   Obligations of financial services licensee in relation to dealings with non - licensees

991F   Dealings involving employees of financial services licensees

Division   8--Miscellaneous

992A   Prohibition on hawking of financial products

992AA   Right of return and refund for hawked financial products

992B   Exemptions and modifications by ASIC

992C   Exemptions and modifications by regulations

Division   9--Enforcement

993A   Overview

993B   Offence of failing to pay client money into an account as required

993C   Offence of failing to comply with requirements relating to client money account

993D   Failing to pay loan money into an account as required

Part   7.8A--Design and distribution requirements relating to financial products for retail clients

Division   1--Preliminary

994A   Meaning of some terms relating to design and distribution requirements

994AA   Meaning of financial product --Part   7.8A

Division   2--Target market determinations for financial products

994B   Target market determinations for financial products

994C   Target market determinations to be reviewed

994D   Prohibition on engaging in retail product distribution conduct unless target market determination made

Division   3--Distribution of financial products

994E   Reasonable steps to ensure consistency with target market determinations

994F   Record keeping and notification obligations

994G   Notice to ASIC

Division   4--ASIC powers

994H   Information to be provided to ASIC

994J   Stop orders

Division   5--Exemptions and modifications

994L   Exemptions and modifications by ASIC

Division   6--Miscellaneous

994M   Civil liability

994N   Additional powers of court to make orders

994P   Orders to redress loss or damage suffered by non - party consumers etc.

994Q   Kinds of orders that may be made to redress loss or damage suffered by non - party consumers etc.

Note:   This Chapter applies to a CCIV in a modified form: see Division   4 of Part   8B.7.

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