Corporations Amendment (Streamlining Future of Financial Advice) Regulation 2014 (102 of 2014)

Schedule 1  

Corporations Regulations 2001

19   After regulation 7.7A.12F

Insert:

7.7A.12FA General advice

(1) A monetary benefit given to a person who gives general advice to a retail client on behalf of a financial services licensee is not conflicted remuneration if:

(a) the person gives the general advice as:

(i) an employee of the licensee, or a related body corporate of the licensee; or

(ii) an employee of an authorised representative of the licensee; or

(iii) an individual who has been sub-authorised under section 916B of the Act by an authorised representative of the licensee to give general advice on behalf of the licensee of the kind given; and

(b) the person gives the general advice under the name of the licensee, a trade mark of the licensee or a business name of the licensee; and

(c) the benefit is neither:

(i) a recurring payment made because the person has given the general advice; nor

(ii) a payment made solely because a financial product of a class in relation to which the general advice was given has been issued or sold to the client;

(payments commonly referred to as commissions); and

(d) during the 12 months immediately before the benefit was given, the person did not give financial product advice to a retail client, other than:

(i) general advice; or

(ii) personal advice in relation to basic banking products, general insurance products, consumer credit insurance or a combination of those products; or

(iii) a combination of the advice mentioned in subparagraphs (i) and (ii); and

(e) the financial product in relation to which the general advice is given is either:

(i) a product issued or sold by the licensee or a related body corporate of the licensee; or

(ii) a product issued or sold by another entity under the name of the licensee, a trade mark of the licensee or a business name of the licensee.

(2) In this regulation:

business name of a licensee means a business name that is registered to the licensee under the Business Names Registration Act 2011.

trade mark of a licensee means a trade mark of which the licensee is the registered owner under the Trade Marks Act 1995.