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

[14]   After regulation 7.1.29

insert

7.1.30 Information and advice about voting

For paragraph 766A (2) (b) of the Act, a circumstance in which a person is taken not to provide a financial service within the meaning of paragraph 766A (1) (a) of the Act is that:

(a) the service provided by the person consists only of advising another person in relation to the manner in which:

(i) voting rights attaching to securities; or

(ii) voting rights attaching to interests in managed investment schemes;

may or should be exercised; and

(b) the advice is not intended to influence any decision in relation to financial products other than a decision about voting; and

(c) the advice could not be reasonably be regarded as intended to influence a decision in relation to financial products, other than a decision about voting; and

(d) the advice does not relate to a vote that relates to a dealing in financial products.

Note A service that includes advice which is intended to influence the decision to acquire securities in another company would be not provided in circumstances covered by this regulation.

7.1.31 Passing on prepared documents

For paragraph 766A (2) (b) of the Act, a circumstance in which a person ( person 1 ) is taken not to provide a financial service within the meaning of paragraph 766A (1) (a) of the Act is that:

(a) person 1 provides a service to a person; and

(b) the service consists only of passing on, publishing, distributing or otherwise disseminating a document that contains financial product advice; and

(c) the document was provided by another person ( person 2 ); and

(d) person 2 is not acting on behalf of person 1; and

(e) person 1 is not the holder of a financial services licence that authorises person 1 to provide financial product advice; and

(f) person 1 does not select the content of the document, modify the content of the document or otherwise exercise control over the content of the document; and

(g) a reasonable person would not consider that person 1 provided, endorsed or otherwise assumed responsibility for the financial product advice contained in the document.

7.1.32 Remuneration packages

For paragraph 766A (2) (b) of the Act, a circumstance in which a person ( person 1 ) is taken not to provide a financial service within the meaning of paragraph 766A (1) (a) of the Act is that:

(a) person 1 provides advice to another person; and

(b) the advice relates only to the structuring of remuneration packages for the other person's employees.

Division 4 Dealings in financial products

7.1.34 Enforcement of rights

For subsection 766C (7) of the Act, conduct that:

(a) is the enforcement of rights by a person under a credit facility; and

(b) is carried on by a person acting as an attorney in accordance with a power of attorney;

is not dealing in a financial product.