Corporations Amendment Regulations 2010 (No. 4) (89 of 2010)

Schedule 1   Amendments

[12]   Chapter 7, Part 7.9, Division 5, after Subdivision 5.4

insert

Subdivision 5.4A Periodic statements for retail clients for financial products that have an investment component: additional information for margin lending facilities

7.9.30A Application of Subdivision 5.4A

(1) This Subdivision applies in relation to the provider of a margin lending facility within the meaning of subsection 761EA (1) of the Act.

(2) For the purposes of this Subdivision, subsection 1017D (5) of the Act is modified to omit paragraphs (a) to (f).

Note Paragraph 1020G (1) (c) of the Act provides that the regulations may provide that Part 7.9 of the Act applies as if specified provisions were omitted, modified or varied as specified in the regulations.

7.9.30B Details to be included in periodic statements for margin lending facilities

For paragraph 1017D (5) (g) of the Act, a periodic statement for a holder of a financial product must include the following details about the margin lending facility:

(a) the outstanding loan amount;

(b) the loan credit limit;

(c) the current interest rate, and any changes to the interest rate since the last statement was provided;

(d) an itemised list of the property by which the credit is secured, including:

(i) the value of each item used for calculating the current LVR; and

(ii) the loan to value ratio (if any) of each property item listed;

(e) a summary of the loan to security ratios, showing separately:

(i) the allowable loan to security ratio; and

(ii) the maximum loan to security ratio, including any buffer allowed under the terms of the facility; and

(iii) the current LVR;

(f) a summary of all transactions affecting the margin lending facility during the reporting period.