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CORPORATIONS AMENDMENT (FUTURE OF FINANCIAL ADVICE) BILL 2012E CORPORATIONS AMENDMENT (FURTHER FUTURE OF FINANCIAL ADVICE MEASURES) BILL 2012

Order of the day read for the adjourned debate on the motion of the Parliamentary Secretary for School Education and Workplace Relations (Senator Collins)—That these bills be now read a second time—and on the amendment moved by Senator Cormann:

 At the end of the motion, add "but that further consideration of these bills be an order of the day for the first sitting day after the Government has tabled, for these bills, a regulatory impact statement which has been assessed by the Office of Best Practice Regulation as compliant with its requirements".

Debate resumed.

Limitation of debate: The time allotted for the consideration of these bills expired.

Proposed suspension of standing orders: Senator Cormann, at the request of the Leader of the Opposition in the Senate (Senator Abetz) and pursuant to contingent notice, moved—That so much of standing order 142 be suspended as would prevent further consideration of the bills without limitation of time.

Closure: Senator Collins moved—That the question be now put.


Question—That the question be now put—put.

The Senate divided—

AYES, 34

Senators—

Bilyk

Bishop

Brown (Teller)

Cameron

Carr, Kim

Collins

Conroy

Crossin

Di Natale

Farrell

Faulkner

Feeney

Furner

Gallacher

Hanson-Young

Hogg

Ludlam

Ludwig

Lundy

Marshall

McEwen

McLucas

Milne

Moore

Polley

Pratt

Rhiannon

Singh

Stephens

Sterle

Thistlethwaite

Urquhart

Wong

Wright

NOES, 29

Senators—

Abetz

Bernardi

Birmingham

Boswell

Boyce

Brandis

Bushby

Cash

Colbeck

Cormann

Edwards

Eggleston

Fawcett

Fierravanti-Wells

Fifield

Heffernan

Humphries

Kroger

Macdonald

Madigan

Mason

McKenzie

Parry

Payne

Ronaldson

Ryan

Sinodinos

Smith

Williams (Teller)

Question agreed to.

Question—That the motion to suspend standing orders be agreed to—put.

The Senate divided—

AYES,29


Senators—
AbetzColbeckHumphriesRonaldson
BernardiCormannKrogerRyan
BirminghamEdwardsMacdonaldSinodinos
BoswellEgglestonMadiganSmith
BoyceFawcettMasonWilliams (Teller)
BrandisFierravanti-WellsMcKenzie
BushbyFifieldParry
CashHeffernanPayne

NOES, 34


Senators—
BilykFarrellLundySingh
BishopFaulknerMarshallStephens
Brown (Teller)FeeneyMcEwenSterle
CameronFurnerMcLucasThistlethwaite
Carr, KimGallacherMilneUrquhart
CollinsHanson-YoungMooreWong
ConroyHoggPolleyWright
CrossinLudlamPratt
Di NataleLudwigRhiannon

Question negatived.


Question—That the amendment moved by Senator Cormann be agreed to—put.

The Senate divided—

AYES,29


Senators—
AbetzColbeckHumphriesRonaldson
BernardiCormannKrogerRyan
BirminghamEdwardsMacdonaldSinodinos
BoswellEgglestonMadiganSmith
BoyceFawcettMasonWilliams (Teller)
BrandisFierravanti-WellsMcKenzie
BushbyFifieldParry
CashHeffernanPayne

NOES, 34


Senators—
BilykFarrellLundySingh
BishopFaulknerMarshallStephens
Brown (Teller)FeeneyMcEwenSterle
CameronFurnerMcLucasThistlethwaite
Carr, KimGallacherMilneUrquhart
CollinsHanson-YoungMooreWong
ConroyHoggPolleyWright
CrossinLudlamPratt
Di NataleLudwigRhiannon

Question negatived.

Question—That these bills be now read a second time—put.

The Senate divided—

AYES,34


Senators—
BilykFarrellLundySingh
BishopFaulknerMarshallStephens
Brown (Teller)FeeneyMcEwenSterle
CameronFurnerMcLucasThistlethwaite
Carr, KimGallacherMilneUrquhart
CollinsHanson-YoungMooreWong
ConroyHoggPolleyWright
CrossinLudlamPratt
Di NataleLudwigRhiannon

NOES, 29


Senators—
AbetzColbeckHumphriesRonaldson
BernardiCormannKrogerRyan
BirminghamEdwardsMacdonaldSinodinos
BoswellEgglestonMadiganSmith
BoyceFawcettMasonWilliams (Teller)
BrandisFierravanti-WellsMcKenzie
BushbyFifieldParry
CashHeffernanPayne

Question agreed to.

Bills read a second time.


The following amendments in respect of the Corporations Amendment (Future of Financial Advice) Bill 2012 circulated by the Government were considered:

 Schedule 1, item 10, page 9 (line 5), omit "the commencing day", substitute "the application day".

 Schedule 1, item 10, page 9 (line 8), omit "a representative", substitute "a person acting as a representative".

 Schedule 1, item 10, page 9 (line 11), omit "a representative", substitute "a person acting as a representative".

 Schedule 1, item 10, page 9 (line 15), omit "the commencing day", substitute "the application day".

 Schedule 1, item 10, page 9 (lines 16 and 17), omit subsection 962D(2), substitute:

  (2) In this section:

   application day means:

 (a) where:

 (i) the client enters into the ongoing fee arrangement with a financial services licensee, or a person acting as a representative of a financial services licensee; and

 (ii) the financial services licensee has lodged notice with ASIC in accordance with subsection 967(1) that the obligations and prohibitions under this Part are to apply to the licensee and persons acting as representatives of the licensee, on and from a day specified in the notice;

  the day specified in the notice; or

 (b) in any other case—1 July 2013.

 Schedule 1, item 10, page 13 (line 24), omit "This Subdivision applies", substitute "(1) This Subdivision applies, on and from the application day,".

 Schedule 1, item 10, page 13 (after line 25), at the end of section 962R, add:

  (2) In this section:

   application day means:

 (a) where:

 (i) the client has entered into the ongoing fee arrangement with a financial services licensee, or a person acting as a representative of a financial services licensee; and

 (ii) that licensee or representative is the fee recipient in relation to the arrangement on 1 July 2012; and

 (iii) the financial services licensee has lodged notice with ASIC in accordance with subsection 967(1) that the obligations and prohibitions under this Part are to apply to the licensee and persons acting as representatives of the licensee, on and from a day specified in the notice;

  the day specified in the notice; or

 (b) where:

 (i) the client has entered into the ongoing fee arrangement with a financial services licensee, or a person acting as a representative of a financial services licensee; and


 (ii) because the rights of the licensee or representative under the arrangement have been assigned, another person is the fee recipient in relation to the arrangement on 1 July 2012; and

 (iii) a notice has been lodged with ASIC in accordance with subsection 967(1) or (3) that the obligations and prohibitions under this Part are to apply to the other person, on and from a day specified in the notice;

  the day specified in the notice; or

 (c) in any other case—1 July 2013.

 Schedule 1, item 10, page 14 (after line 23), at the end of Part 7.7A, add:

  

Division 7—Transition

 

966Transition period

   In this Division:

   transition period means the period beginning on 1 July 2012 and ending on 30 June 2013.

 

967 Best interests obligations and remuneration provisions to apply during transition period

  (1) A financial services licensee may, during the transition period, lodge notice in the prescribed form with ASIC that the obligations and prohibitions imposed under this Part are to apply to the licensee, and any person acting as a representative of the licensee, on and from a day that:

 (a) falls on or after the day on which the notice is lodged with ASIC; and

 (b) is specified in the notice.

  (2) If a notice is lodged with ASIC in accordance with subsection (1), ASIC must, on its website:

 (a) publish the name of the financial services licensee who lodged the notice; and

 (b) include a statement that the obligations and prohibitions imposed under this Part are to apply to the licensee, and any person acting as a representative of the licensee; and

 (c) state the day on and from which those obligations and prohibitions are to apply.

  (3) A person:

 (a) who would be subject to an obligation or prohibition under this Part, if it applied; and

 (b) who would not be subject to the obligation or prohibition as a financial services licensee, or a person acting as a representative of a financial services licensee;

   may, during the transition period, lodge notice in the prescribed form with ASIC that the obligations and prohibitions imposed under this Part are to apply to the person on and from a day that:

 (c) falls on or after the day on which the notice is lodged with ASIC; and

 (d) is specified in the notice.


 (4) If a notice is lodged with ASIC in accordance with subsection (3), ASIC must, on its website:

 (a) publish the name of the person who lodged the notice; and

 (b) include a statement that the obligations and prohibitions imposed under this Part are to apply to the person; and

 (c) state the day on and from which those obligations and prohibitions are to apply.

 

968 Notice to clients in transition period

  (1) A financial services licensee who lodges a notice with ASIC in accordance with subsection 967(1) must ensure that any person in relation to whom the licensee, or a person acting as a representative of the licensee, has an obligation or is subject to a prohibition under this Part during the transition period (the client) is given a notice that complies with this section.

  (2) The notice:

 (a) must be in writing; and

 (b) must be given to the client on or before the notice day for the client; and

 (c) must state that the obligations and prohibitions imposed under this Part begin to apply to the licensee, and any person acting as a representative of the licensee, on a day specified in the notice given to the client.

  (3) The day specified in the notice given to the client must be the same as the day specified in the notice lodged with ASIC in accordance with subsection 967(1).

  (4) The notice day for a person to whom the licensee, or a person acting as a representative of the licensee, is obliged to give a fee disclosure statement during the transition period is:

 (a) unless paragraph (b) applies—the disclosure day for the arrangement in relation to which the fee disclosure statement is to be given that falls within the transition period; and

 (b) if a fee disclosure statement is given before the end of a period of 30 days beginning on that disclosure day—the day on which it is given.

Question—That the amendments be agreed to—put.

The Senate divided—

AYES,34


Senators—
BilykFarrellLundySingh
BishopFaulknerMarshallStephens
Brown (Teller)FeeneyMcEwenSterle
CameronFurnerMcLucasThistlethwaite
Carr, KimGallacherMilneUrquhart
CollinsHanson-YoungMooreWong
ConroyHoggPolleyWright
CrossinLudlamPratt
Di NataleLudwigRhiannon

NOES, 28



Senators—
AbetzCashFifieldMcKenzie
BernardiColbeckHeffernanParry
BirminghamCormannHumphriesPayne
BoswellEdwardsKrogerRonaldson
BoyceEgglestonMacdonaldRyan
BrandisFawcettMadiganSmith
BushbyFierravanti-WellsMasonWilliams (Teller)

Question agreed to.

The following amendments in respect of the Corporations Amendment (Future of Financial Advice) Bill 2012 circulated by the Opposition were considered:

 Clause 2, page 2 (table item 2), omit the item, substitute:

2. Schedule 11 July 2013.1 July 2013

Schedule 1, item 10, page 5 (line 14), omit the definition of renewal notice.

Schedule 1, item 10, page 5 (line 15), omit the definition of renewal notice day.

Schedule 1, item 10, page 5 (line 16), omit the definition of renewal period.

Schedule 1, item 10, page 9 (line 1), omit "Termination, disclosure and renewal", substitute "Termination and disclosure".

Schedule 1, item 10, page 9 (line 32), omit "or section 962K (the renewal notice obligation)".

Schedule 1, item 10, page 10 (lines 4 and 5), omit "or section 962K".

Schedule 1, item 10, page 10 (line 7), omit "or section 962K".

Schedule 1, item 10, page 14 (line 5), omit "subsection (2)", substitute "subsections (2) and (3)".

Schedule 1, item 10, page 14 (after line 23), at the end of section 965, add:

  (3) Subsection (1) does not apply to a scheme if any part of the scheme was entered into, begun to be carried out, or carried out, before the day on which this Part commences.

 Schedule 1, item 11, page 14 (lines 28 and 29), omit paragraph (jaad).

 Schedule 1, item 12, page 15 (lines 9 and 10), omit subparagraph (1E)(b)(ii).

 Schedule 1, item 12, page 15 (line 14), omit "or (ii)".

Question—That the amendments be agreed to—put.

The Senate divided—

AYES, 28

Senators—

Abetz

Bernardi

Birmingham

Boswell

Boyce

Brandis

Bushby

Cash

Colbeck

Cormann

Edwards

Eggleston

Fawcett

Fierravanti-Wells

Fifield

Heffernan

Humphries

Kroger

Macdonald

Madigan

Mason

McKenzie

Parry

Payne

Ronaldson

Ryan

Smith

Williams (Teller)


NOES, 34

Senators—

Bilyk

Bishop

Brown (Teller)

Cameron

Carr, Kim

Collins

Conroy

Crossin

Di Natale

Farrell

Faulkner

Feeney

Furner

Gallacher

Hanson-Young

Hogg

Ludlam

Ludwig

Lundy

Marshall

McEwen

McLucas

Milne

Moore

Polley

Pratt

Rhiannon

Singh

Stephens

Sterle

Thistlethwaite

Urquhart

Wong

Wright

Question negatived.

Question—That Schedule 1, item 10, sections 962CA and 962K to 962N, and Subdivision C of the Corporations Amendment (Future of Financial Advice) Bill 2012 stand as printed—put.

The Senate divided—

AYES,34


Senators—
BilykFarrellLundySingh
BishopFaulknerMarshallStephens
Brown (Teller)FeeneyMcEwenSterle
CameronFurnerMcLucasThistlethwaite
Carr, KimGallacherMilneUrquhart
CollinsHanson-YoungMooreWong
ConroyHoggPolleyWright
CrossinLudlamPratt
Di NataleLudwigRhiannon

NOES, 29


Senators—
AbetzColbeckHumphriesRonaldson
BernardiCormannKrogerRyan
BirminghamEdwardsMacdonaldSinodinos
BoswellEgglestonMadiganSmith
BoyceFawcettMasonWilliams (Teller)
BrandisFierravanti-WellsMcKenzie
BushbyFifieldParry
CashHeffernanPayne

Sections and Subdivision agreed to.

The following amendments in respect of the Corporations Amendment (Further Future of Financial Advice Measures) Bill 2012 circulated by the Government were considered:

 Schedule 1, page 25 (after line 10), after item 25, insert:

 25A Subsection 968(4)

  Repeal the subsection, substitute:

  (4) The notice day is:

 (a) for a person (the client) in relation to whom the licensee, or a person acting as a representative of the licensee, has an obligation or is subject to a prohibition under Division 2 of this Part in relation to personal advice provided on or after a day that
falls in the transition period—the first day on which personal advice is provided to the client during the transition period; and

 (b) for a person to whom the licensee, or a person acting as a representative of the licensee, is obliged to give a fee disclosure statement during the transition period:

 (i) unless subparagraph (ii) applies—the disclosure day for the arrangement in relation to which the fee disclosure statement is to be given that falls within the transition period; and

 (ii) if a fee disclosure statement is given before the end of a period of 30 days beginning on that disclosure day—the day on which it is given; and

 (c) for a person (the client) in relation to whom the licensee, or a person acting as a representative of the licensee, has an obligation or is subject to a prohibition under Subdivision B of Division 5 of this Part in relation to the charging of an asset-based fee during the transition period—the first day on which the client is charged an asset-based fee during the transition period; and

 (d) for a person in relation to whom more than one of paragraphs (a), (b) and (c) is satisfied—the earliest of the days specified as the notice day under the paragraphs that are satisfied for that person.

 Schedule 1, item 33, page 29 (lines 5 to 10), omit section 1527, substitute:

  

1527 Application of best interests obligations

  (1) The following apply in relation to the provision of personal advice to a person as a retail client on or after the application day (whether or not the advice was sought beforethat day):

 (a) Division 2 of Part 7.7A, as inserted by item 23 of Schedule 1 to the amending Act;

 (b) the amendments made by items 6, 7, 8, 9 and 34 of Schedule 1 to the amending Act.

  (2) In this section:

   application day , in relation to a financial services licensee or a person acting as a representative of a financial services licensee, means:

 (a) if the financial services licensee has lodged notice with ASIC in accordance with subsection 967(1) that the obligations and prohibitions imposed under Part 7.7A are to apply to the licensee and persons acting as representatives of the licensee on and from the day specified in the notice—the day specified in the notice; or

 (b) if the person has not lodged such a notice—1 July 2013.

 Schedule 1, item 33, page 29 (line 17), omit "the day on which that item commences", substitute "the application day".


 Schedule 1, item 33, page 29 (after line 28), at the end of section 1528, add:

  (4) In this section:

   application day :

 (a) in relation to a financial services licensee or a person acting as a representative of a financial services licensee, means:

 (i) if the financial services licensee has lodged notice with ASIC in accordance with subsection 967(1) that the obligations and prohibitions imposed under Part 7.7A are to apply to the licensee and persons acting as representatives of the licensee on and from a day specified in the notice—the day specified in the notice; or

 (ii) in any other case—1 July 2013; and

 (b) in relation to any other person who would be subject to an obligation or prohibition under Division 4 of Part 7.7A if it applied, means:

 (i) if a notice has been lodged with ASIC in accordance with subsection 967(3) that the obligations and prohibitions imposed under Part 7.7A are to apply to the person on and from a day specified in the notice—the day specified in the notice; or

 (ii) in any other case—1 July 2013.

 Schedule 1, item 33, page 30 (line 2), omit "the day on which that item commences", substitute "the application day".

 Schedule 1, item 33, page 30 (line 6), omit "the day on which that item commences", substitute "the application day".

 Schedule 1, item 33, page 30 (after line 6), at the end of section 1529, add:

  (3) In this section:

   application day :

 (a) in relation to a financial services licensee or a person acting as a representative of a financial services licensee, means:

 (i) if the financial services licensee has lodged notice with ASIC in accordance with subsection 967(1) that the obligations and prohibitions imposed under Part 7.7A are to apply to the licensee and persons acting as representatives of the licensee on and from a day specified in the notice—the day specified in the notice; or

 (ii) in any other case—1 July 2013; and

 (b) in relation to any other person who would be subject to an obligation or prohibition under Subdivision A of Division 5 of Part 7.7A if it applied, means:

 (i) if a notice has been lodged with ASIC in accordance with subsection 967(3) that the obligations and prohibitions imposed under Part 7.7A are to apply to the person on and from the day specified in the notice—the day specified in the notice; or

 (ii) in any other case—1 July 2013.

 Schedule 1, item 33, page 30 (line 19), omit "the day on which that item commences", substitute "the application day".


 Schedule 1, item 33, page 30 (lines 23 and 24), omit "the day on which that item commences", substitute "the application day".

 Schedule 1, item 33, page 30 (after line 28), at the end of section 1531, add:

  (3) In this section:

   application day , in relation to a financial services licensee or a person acting as a representative of a financial services licensee, means:

 (a) if the financial services licensee has lodged notice with ASIC in accordance with subsection 967(1) that the obligations and prohibitions imposed under Part 7.7A are to apply to the licensee and persons acting as representatives of the licensee on and from the day specified in the notice—the day specified in the notice; or

 (b) if the person has not lodged such a notice—1 July 2013.

Question—That the amendments be agreed to—put.

The Senate divided—

AYES,33


Senators—
BilykFaulknerMarshallStephens
BishopFeeneyMcEwenSterle
Brown (Teller)FurnerMcLucasThistlethwaite
CameronGallacherMilneUrquhart
Carr, KimHanson-YoungMooreWong
CollinsHoggPolleyWright
CrossinLudlamPratt
Di NataleLudwigRhiannon
FarrellLundySingh

NOES, 28


Senators—
AbetzCashFifieldParry
BernardiColbeckHumphriesPayne
BirminghamCormannKrogerRonaldson
BoswellEdwardsMacdonaldRyan
BoyceEgglestonMadiganSinodinos
BrandisFawcettMasonSmith
BushbyFierravanti-WellsMcKenzieWilliams (Teller)

Question agreed to.

The following amendments in respect of the Corporations Amendment (Further Future of Financial Advice Measures) Bill 2012 circulated by the Opposition were considered:

 Schedule 1, items 14 and 15, page 4 (lines 14 to 21), omit the items, substitute:

 14 Section 960

  Insert:

   life risk insurance superannuation product has the meaning given by subsection 963B(2).

 15 Section 960

  Insert:

   MySuper product has the meaning given by subsection 963B(3).


 Schedule 1, page 4 (after line 21), after item 15, insert:

 15A Section 960

  Insert:

   personal intra-fund superannuation advice has the meaning given by section 964N.

 Schedule 1, item 21, page 5 (lines 18 and 19), omit "a meaning affected by section 964A", substitute "the meaning given by subsection 964A(2)".

 Schedule 1, item 23, page 7 (line 6), after "identified", insert "through instructions, so far as is reasonably possible in the circumstances".

 Schedule 1, item 23, page 7 (line 30), omit "circumstances;", substitute "circumstances.".

 Schedule 1, item 23, page 7 (lines 31 to 33), omit paragraph 961B(2)(g).

 Schedule 1, item 24, page 16 (after line 10), before paragraph 963B(1)(a), insert:

 (aa) the benefit is given to the licensee or representative solely in relation to the provision of general advice;

 Schedule 1, item 24, page 16 (lines 13 to 18), omit paragraph 963B(1)(b), substitute:

 (b) the benefit is given to the licensee or representative solely in relation to a life risk insurance product, other than a life risk insurance superannuation product (see subsection (2));

 (ba) each of the following is satisfied:

 (i) the benefit is given to the licensee or representative solely in relation to a life risk insurance superannuation product;

 (ii) the product is not issued to an RSE licensee of a registrable superannuation entity, or a custodian in relation to a registrable superannuation entity, in relation to a MySuper product (see subsection (3));

 (iii) the benefit is given by, or on behalf of, a person to whom the licensee or representative provided advice in relation to the life risk insurance superannuation product;

 Schedule 1, item 24, page 16 (lines 23 to 26), omit subparagraph 963B(1)(c)(ii), substitute:

 (ii) the benefit is not for financial product advice in relation to the product, or products of that class, given to the person as a retail client by that licensee or representative ;

 Schedule 1, item 24, page 16 (after line 32), after paragraph 963B(1)(d), insert:

 (da) the benefit is given to the licensee or representative by an authorised representative of the licensee (the purchaser) in relation to the sale of a financial services business by the licensee to the purchaser;

 Schedule 1, item 24, page 16 (line 35) to page 17 (line 18), omit subsections 963B(2) and (3), substitute:

  (2) A life risk insurance product is a life risk insurance superannuation product if the product is issued to an RSE licensee of a registrable superannuation entity, or a custodian in relation to a registrable superannuation entity, for the benefit of a class of members of the entity or for one or more members of the entity.


  (3) MySuper product has the same meaning as in the Superannuation Industry (Supervision) Act 1993, as in force on and after the commencement of item 6 of Schedule 1 to the Superannuation Legislation Amendment (MySuper Core Provisions) Act 2012.

 Schedule 1, item 24, page 17 (lines 34 and 35), omit "the provision of financial product advice to persons as retail clients", substitute "carrying on a financial services business".

 Schedule 1, item 24, page 17 (line 37), at the end of subparagraph 963C(c)(iii), add ", which must not require the benefit, or the education or training, to be provided in Australia".

 Schedule 1, item 24, page 18 (lines 4 to 6), omit all the words from and including "in relation to" to the end of subparagraph 963C(d)(ii).

 Schedule 1, item 24, page 18 (after line 14), after paragraph 963C(e), insert:

 (ea) the benefit provider is the employer of the licensee or representative;

 Schedule 1, item 24, page 21 (line 21), omit "a financial services licensee or an RSE licensee", substitute "the responsible entity of a registered scheme, an RSE licensee or the issuer of a managed investment product".

 Schedule 1, item 24, page 22 (lines 11 to 29), omit subsections 964A(2) and (3), substitute:

  (2) A volume-based shelf-space fee is a monetary product access payment which is not administrative in nature paid by a funds manager to the platform operator.

  (3) To the extent that the benefit is not a volume-based shelf-space fee, a platform operator may accept an investment management fee scale discount on an amount payable or a rebate of an amount paid to the funds manager.

 Schedule 1, item 24, page 25 (after line 7), at the end of Division 5, add:

  

Subdivision C—Fees for personal intra-fund superannuation advice

 

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

   If a financial services licensee is acting as an authorised representative of another financial services licensee in relation to the provision of personal intra-fund superannuation advice, this Subdivision applies to the first licensee in relation to the advice in that licensee's capacity as an authorised representative (rather than in the capacity of licensee).

    

964K Financial services licensees must not accept fees for personal intra-fund superannuation advice other than from member to whom advice provided

  (1) A financial services licensee that is a trustee of a regulated superannuation fund must not accept a fee in relation to the provision of personal intra-fund superannuation advice to a member of the fund, other than from that member.

   Note: This subsection is a civil penalty provision (see section 1317E).


 (2) A financial services licensee contravenes this subsection if:

 (a) the licensee is a trustee of a regulated superannuation fund; and

 (b) a representative, other than an authorised representative, of the licensee accepts a fee in relation to the provision of personal intra-fund superannuation advice to a member of the fund, other than from that member; and

 (c) the licensee is the, or a, responsible licensee in relation to the contravention.

   Note: This subsection is a civil penalty provision (see section 1317E).

  (3) The regulations may provide that subsections (1) and (2) do not apply in prescribed circumstances.

   

964L Licensee must ensure compliance

   A financial services licensee that is a trustee of a regulated superannuation fund must take reasonable steps to ensure that representatives of the licensee do not accept a fee in relation to the provision of personal intra-fund superannuation advice to a member of the fund, other than from that member.

   Note: This subsection is a civil penalty provision (see section 1317E).

    

964M Authorised representatives must not accept fees for personal intra-fund superannuation advice other than from member to whom advice provided

  (1) An authorised representative, of a financial services licensee that is a trustee of a regulated superannuation fund, must not accept a fee in relation to the provision of personal intra-fund superannuation advice to a member of the fund, other than from that member.

   Note: This subsection is a civil penalty provision (see section 1317E).

  (2) The regulations may provide that subsection (1) does not apply in prescribed circumstances.

   

964N What is personal intra-fund superannuation advice?

  (1) Advice is personal intra-fund superannuation advice if:

 (a) the advice is personal advice; and

 (b) the advice is provided by a trustee of a regulated superannuation fund, or an authorised representative of the trustee, to a member of the fund as a retail client; and

 (c) the trustee holds an Australian financial services licence that covers the provision of personal advice in relation to superannuation products; and

 (d) the advice relates to the member's interest in the fund and does not also relate to:

 (i) any other financial product (except eligible insurance (see subsection (2)) in relation to the member's interest in the fund); or

 (ii) anything mentioned in subsection 765A(1) that would be a financial product but for that subsection (except eligible insurance in relation to the member's interest in the fund); or


 (iii) any other matter specified in the regulations for the purposes of this subparagraph; and

 (e) the fund is not a self-managed superannuation fund (within the meaning of section 17A of the Superannuation Industry (Supervision) Act 1993).

  (2) For the purposes of subparagraphs (1)(d)(i) and (ii), eligible insurance is insurance of a kind that the trustee maintains in relation to the members of the fund for the purpose of financing benefits to the members that are within the scope of the Superannuation Industry (Supervision) Act 1993.

   

964P Meaning of trustee and member of a regulated superannuation fund

   The following expressions have the same meaning when used in this Subdivision as they have in the Superannuation Industry (Supervision) Act1993:

 (a) member;

 (b) regulated superannuation fund;

 (c) trustee.

 Schedule 1, item 28, page 26 (after line 26), after paragraph (jaap), insert:

 (jaapa) subsections 964K(1) and (2) (financial services licensee responsible for breach of fees accepted for personal intra-fund superannuation advice);

 (jaapb) section 964L (financial services licensee to ensure compliance with duty about accepting fees for personal intra-fund superannuation advice);

 (jaapc) subsection 964M(1) (authorised representative must not accept fee for personal intra-fund superannuation advice other than from relevant member);

 Schedule 1, item 30, page 27 (after line 30), after subparagraph (1E)(b)(xiii), insert:

 (xiiia) subsections 964K(1) and (2) (financial services licensee responsible for breach of fees accepted for personal intra-fund superannuation advice);

 (xiiib) section 964L (financial services licensee to ensure compliance with duty about accepting fees for personal intra-fund superannuation advice);

 (xiiic) subsection 964M(1) (authorised representative must not accept fee for personal intra-fund superannuation advice other than from relevant member);

 Schedule 1, item 33, page 29 (lines 15 to 18), omit all the words from and including "if:" to the end of subsection 1528(1), substitute "if the benefit is given under an arrangement entered into before the day on which that item commences".

 Schedule 1, item 33, page 29 (line 33) to page 30 (line 1), omit "a financial services licensee, or an RSE licensee", substitute "the responsible entity of a registered scheme, an RSE licensee or the issuer of a managed investment product".

 Schedule 1, item 33, page 30 (lines 4 and 5), omit "a financial services licensee, or an RSE licensee", substitute "the responsible entity of a registered scheme, an RSE licensee or the issuer of a managed investment product".


 Schedule 1, item 33, page 30 (after line 28), at the end of Part 10.18, add:

  

1532 Application of ban on other remuneration—fees for personal intra-fund superannuation advice

  (1) Subdivision C of Division 5 of Part 7.7A, as inserted by item 24 of Schedule 1 to the amending Act, applies in relation to the provision of personal intra-fund superannuation advice on or after the day on which that item commences (whether or not the advice was sought before that day).

  (2) Despite subsection (1), that Subdivision does not apply in relation to the provision of personal intra-fund superannuation advice to the extent that the operation of that Subdivision would result in an acquisition of property (within the meaning of paragraph 51(xxxi) of the Constitution) from a person otherwise than on just terms (within the meaning of that paragraph of the Constitution).

Question—That the amendments be agreed to—put.

The Senate divided—

AYES,28


Senators—
AbetzCashFifieldParry
BernardiColbeckHumphriesPayne
BirminghamCormannKrogerRonaldson
BoswellEdwardsMacdonaldRyan
BoyceEgglestonMadiganSinodinos
BrandisFawcettMasonSmith
BushbyFierravanti-WellsMcKenzieWilliams (Teller)

NOES, 33


Senators—
BilykFaulknerMarshallStephens
BishopFeeneyMcEwenSterle
Brown (Teller)FurnerMcLucasThistlethwaite
CameronGallacherMilneUrquhart
Carr, KimHanson-YoungMooreWong
CollinsHoggPolleyWright
CrossinLudlamPratt
Di NataleLudwigRhiannon
FarrellLundySingh

Question negatived.

Question—That Schedule 1, item 23, section 961E of the Corporations Amendment (Further Future of Financial Advice Measures) Bill 2012 stand as printed—put.


The Senate divided—

AYES,33


Senators—
BilykFaulknerMarshallStephens
BishopFeeneyMcEwenSterle
Brown (Teller)FurnerMcLucasThistlethwaite
CameronGallacherMilneUrquhart
Carr, KimHanson-YoungMooreWong
CollinsHoggPolleyWright
CrossinLudlamPratt
Di NataleLudwigRhiannon
FarrellLundySingh

NOES, 28


Senators—
AbetzCashFifieldParry
BernardiColbeckHumphriesPayne
BirminghamCormannKrogerRonaldson
BoswellEdwardsMacdonaldRyan
BoyceEgglestonMadiganSinodinos
BrandisFawcettMasonSmith
BushbyFierravanti-WellsMcKenzieWilliams (Teller)

Section agreed to.

Statement by leave: Senator Cormann, by leave, made a statement relating to the matter.

Question—That the remaining stages of these bills be agreed to and these bills, as amended, be now passed—put and passed.

Bills read a third time.