Corporations Amendment Regulations 2002 (No. 2) (16 of 2002)
Schedule 1 Amendments commencing at 12.01 am (in the Australian Capital Territory) on 11 March 2002
[115] After regulation 7.9.63
insert
7.9.63A Persons who must confirm transactions
(1) For paragraph 1017F (9) (a) of the Act, this regulation modifies subsection 1017F (2) of the Act to change the person required to provide confirmation of a transaction.
(2) A transaction:
(a) that is not the issue of a financial product (other than a derivative that is not a warrant); and
(b) in which a financial services licensee deals in the financial product on behalf of the holder of the financial product; and
(c) by which the holder acquires or disposes of all or part of the financial product;
must be confirmed by the financial services licensee.
(3) A transaction:
(a) to which subregulation (2) does not apply; and
(b) by which a financial product is issued to a holder;
must be confirmed by the issuer of the financial product.
(4) A transaction:
(a) that is a sale pursuant to an offer to which section 1012C of the Act applies; and
(b) to which subregulation (2) does not apply; and
(c) by which a holder acquires a financial product;
must be confirmed by the seller of the financial product.
(5) A transaction:
(a) to which subregulation (2) does not apply; and
(b) by which the holder of the financial product disposes of all or part of the financial product to the issuer of the financial product;
must be confirmed by the issuer of the financial product.
(6) A transaction that:
(a) relates to a financial product held by a particular holder; and
(b) occurs while that holder holds the financial product; and
(c) is not the acquisition or a disposal of all or part of the financial product;
must be confirmed by the issuer of the financial product.
7.9.63B Content of confirmation of transactions - general
(1) For paragraph 1017F (8) (d) of the Act, this regulation applies in relation to a transaction that is the acquisition or disposal of a financial product.
(2) The confirmation of the transaction must identify:
(a) the financial product; and
(b) the number or amount of financial products that are the subject of the transaction.
(3) If the transaction takes place in the ordinary course of business on a licensed financial market, the confirmation of the transaction must also identify each licensed financial market of which the responsible person is a participant.
(4) If the responsible person is dealing on their own behalf with a person who is not a financial services licensee, the confirmation of the transaction must also state that the responsible person is dealing in that way.
(5) Subregulation (4) does not apply if:
(a) the transaction is the issue of a product; and
(b) the responsible person is the product issuer.
(6) If:
(a) the financial product is able to be traded on a market; and
(b) the transaction did not take place in the ordinary course of business on a licensed market;
the confirmation of the transaction must also include a statement to that effect.
(7) If the transaction took place in the ordinary course of business of a licensed market, the confirmation of the transaction must also include the name by which that market is generally known.
(8) If the transaction involves more than one financial product, the confirmation of the transaction must also include the price per unit of the financial products.
(9) For paragraph 1017F (9) (c) of the Act, paragraph 1017F (8) (a) of the Act is modified in its application to a transaction involving a basic deposit product (other than an acquisition or disposal of the product) by omitting 'and the holder'.
7.9.63C Confirmation of transaction - multiple transactions
(1) For paragraph 1017F (9) (b) of the Act, subregulation (2) applies in relation to a transaction if:
(a) the responsible person is a participant of a licensed market; and
(b) the transaction takes place in accordance with the operating rules of the licensed market; and
(c) the transaction forms part of a series of transactions made to complete an order placed with a financial services licensee; and
(d) the holder of the product has given to the financial services licensee, in relation to that order or all orders (or all orders included in a class in which that order is included) placed with the financial services licensee by the holder, prior authorisation to give to the client a single confirmation in respect of a series of transactions carried out under the order instead of an individual confirmation in respect of each transaction in the series.
(2) Subsection 1017F (5) of the Act is taken to be satisfied if, in respect of the transaction:
(a) the financial services licensee gives to the holder a single confirmation in respect of the series of transactions in which the transaction is included that:
(i) is in accordance with the authorisation; and
(ii) subject to subregulation (4), complies with the Act; and
(b) the confirmation is given:
(i) as soon as practicable; or
(ii) otherwise as permitted by the operating rules of that licensed market.
(3) For paragraph 1017F (9) (c) of the Act, subregulation (4) applies in relation to a transaction if:
(a) the responsible person is a participant of a licensed market; and
(b) the transaction takes place in accordance with the operating rules of the licensed market; and
(c) the transaction forms part of a series of transactions made to complete an order placed with a financial services licensee; and
(d) the holder of the product has given to the financial services licensee, in relation to that order or all orders (or all orders included in a class in which that order is included) placed with the financial services licensee by the holder, prior authorisation to give to the client a single confirmation in respect of the series of transactions that specifies the average price per unit of financial products acquired or disposed of in the series of transactions, instead of an individual confirmation in respect of each transaction in the series, that specifies the price per unit of the financial products acquired or disposed of in the transaction to which each confirmation relates.
(4) Subregulation 7.9.63B (7) is taken to be satisfied if, in respect of the transaction:
(a) the financial services licensee gives the confirmation to the holder in accordance with the authorisation; and
(b) unless otherwise provided by the operating rules of the licensed market, the financial services licensee, if requested to do so by the client, also gives to the holder a document that specifies the price per unit of the financial products sold or bought in each transaction in the series.
(5) For this regulation, an authorisation given by a person to a financial services licensee:
(a) must be given orally, or in writing, by the person; and
(b) is effective until it is revoked, either orally or in writing, by the person.
(6) If a person gives an oral authorisation to a financial services licensee, or revokes an authorisation orally, the financial services licensee must:
(a) make a written record of the authorisation or revocation; and
(b) send a copy of the written record to the person.
(7) In this regulation:
order means an instruction, or a series of instructions, to acquire or dispose of financial products.
7.9.63D Confirmation of transaction - information about cooling-off period
(1) For paragraph 1017F (8) (d) of the Act, this regulation applies in relation to a transaction:
(a) that is the acquisition of a financial product to which:
(i) regulation 7.9.14, 7.9.66 or 7.9.68 applies; and
(ii) to which regulation 7.9.64 does not apply; or
(b) relating to an RSA product to which subsection 1012I (2) of the Act applies, other than:
(i) an acquisition to which subsection 52 (5) of the RSA Act applies; or
(ii) a transaction in which the product holder disposes of the holder's interest in the product before the time that confirmation of the acquisition is required under section 1017F of the Act.
(2) The confirmation of the transaction must identify information about any cooling-off regime that applies in respect of acquisitions of the product (whether the regime is provided for by a law or otherwise).
7.9.63E Confirmation of transaction - facility that provides written confirmation
For paragraph 1020G (1) (c) of the Act, Part 7.9 of the Act applies to all financial products and transactions as if subsection 1017F (5) of the Act were modified by omitting:
'An arrangement under which the holder may request or require another person to provide a confirmation does not count as a facility that satisfies paragraph (b).'
and inserting:
'An arrangement under which the holder may request or require another person (other than the responsible person or a person acting on behalf of the responsible person) to provide a confirmation does not count as a facility that satisfies paragraph (b).'.