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Corporations Amendment (Future of Financial Advice) Bill 2012

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2010-2011-2012

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

Corporations Amendment (Future of Financial Advice) Bill 2012

 

 

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

[election to commence on or after 1 July 2012]

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

[election to commence on or after 1 July 2012]

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

[election to commence on or after 1 July 2012]

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

[election to commence on or after 1 July 2012]

( 5 )     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.

[election to commence on or after 1 July 2012]

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

[election to commence on or after 1 July 2012]

( 7 )     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.

[election to commence on or after 1 July 2012]

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

Division 7 Transition

966   Transition 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.

[election to commence on or after 1 July 2012]