Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.7A - BEST INTERESTS OBLIGATIONS AND REMUNERATION  

Division 5 - Other banned remuneration  

Subdivision B - Asset-based fees on borrowed amounts  

SECTION 964E   AUTHORISED REPRESENTATIVES MUST NOT CHARGE ASSET-BASED FEES ON BORROWED AMOUNTS  

964E(1)  
The authorised representative of the financial services licensee must not charge an asset-based fee on a borrowed amount used or to be used to acquire financial products by or on behalf of the client.

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

Exceptions

964E(2)  
Subsection (1) does not apply in relation to a borrowed amount if it is not reasonably apparent that the amount has been borrowed.

964E(3)  
The regulations may provide that subsection (1) does not apply in prescribed circumstances. Duty to make reasonable inquiries

964E(4)  
Nothing in this section affects the duty of the authorised representative under section 961B to make reasonable inquiries to obtain complete and accurate information.