CORPORATIONS ACT 2001

CHAPTER 10 - TRANSITIONAL PROVISIONS  

PART 10.2 - TRANSITIONAL PROVISIONS RELATING TO THE FINANCIAL SERVICES REFORM ACT 2001  

Division 1 - Transitional provisions relating to the phasing-in of the new financial services regime  

Subdivision D - Treatment of people who carry on financial services businesses and their representatives  

SECTION 1430   MEANING OF REGULATED PRINCIPAL , REGULATED ACTIVITIES AND RELEVANT OLD LEGISLATION  

1430(1)   [ ``regulated principal''; ``regulated activities''; ``relevant old legislation'']  

For the purposes of this Subdivision, a person is a regulated principal if, immediately before the FSR commencement, the person is a person described in column 2 of one of the items in the following table. The regulated activities of that person are as specified in column 3 of that item, and the relevant old legislation are as specified in column 4 of that item.


Regulated principals and regulated activities
Regulated principals and regulated activities
Regulated principals and regulated activities
Item These persons are regulated principals These are the regulated principal's regulated activities This is the relevant old legislation (if any)
1 A holder of a dealers licence within the meaning of the old Corporations Act. The activities that the licence (as in force immediately before the FSR commencement) authorised the person to carry on. Parts 7.3, 7.4 (other than Division 2), 7.5, 7.6 and 7.7 of the old Corporations Act, and any associated provisions.
2 A holder of an investment advisers licence within the meaning of the old Corporations Act. The activities that the licence (as in force immediately before the FSR commencement) authorised the person to carry on. Parts 7.3, 7.4 (other than Division 2) and 7.7 of the old Corporations Act, and any associated provisions.
3 A holder of a futures brokers licence within the meaning of the old Corporations Act. The activities that the licence (as in force immediately before the FSR commencement) authorised the person to carry on. Parts 8.3, 8.4 (other than section 1210) and 8.5 of the old Corporations Act, and any associated provisions.
4 A holder of a futures advisers licence within the meaning of the old Corporations Act. The activities that the licence (as in force immediately before the FSR commencement) authorised the person to carry on. Parts 8.3 and 8.4 (other than section 1210) of the old Corporations Act, and any associated provisions.
5 A registered insurance broker within the meaning of the Insurance (Agents and Brokers) Act 1984 as in force immediately before the FSR commencement. The person's business as an insurance broker within the meaning of the Insurance (Agents and Brokers) Act 1984 as in force immediately before the FSR commencement. All the provisions of the Insurance (Agents and Brokers) Act 1984 as in force immediately before the FSR commencement, and any associated provisions.
6 A body regulated by APRA carrying on activities that, if carried on after the FSR commencement, would (apart from this Subdivision) be required by the amended Corporations Act to be covered by an Australian financial services licence. The class of activities carried on by the person immediately before the FSR commencement that, if carried on after the FSR commencement, would (apart from this Subdivision) be required by the amended Corporations Act to be covered by an Australian financial services licence. For a body regulated by APRA that was an insurer within the meaning of the Insurance (Agents and Brokers) Act 1984 as in force immediately before the FSR commencement - all the provisions of that Act as then in force, and any associated provisions.
In any other case - subject to any regulations made for the purposes of this item, there is no relevant old legislation.
7 A person who is a registered foreign insurance agent of an unauthorised foreign insurer within the meaning of the Insurance (Agents and Brokers) Act 1984 as in force immediately before the FSR commencement. The person's business as a foreign insurance agent. All the provisions of the Insurance (Agents and Brokers) Act 1984 as in force immediately before the FSR commencement, and any associated provisions.
8 A holder of a general authority under regulation 38A of the Banking (Foreign Exchange) Regulations as in force immediately before the FSR commencement. The activities the authority authorises its holder to carry on. Regulations 38A and 39 of the Banking (Foreign Exchange) Regulations as in force immediately before the FSR commencement.
9 A person included in a class of persons specified in regulations made for the purposes of this item. For a person in a class so specified, the activities identified in, or in accordance with, the regulations as being the regulated activities of a person in that class. The provisions (if any) identified in, or in accordance with, the regulations as being the relevant old legislation for a person in that class, and any associated provisions.
10 A person who carries on any other activities (that is, activities that are not regulated activities for the purposes of any of items 1 to 9) that, if carried on after the FSR commencement, would (apart from this Subdivision) be required by the amended Corporations Act to be covered by an Australian financial services licence, except to the extent that subsection (2) excludes this item from applying. The class of activities so carried on by the person immediately before the FSR commencement that, if carried on after the FSR commencement, would (apart from this Subdivision) be required by the amended Corporations Act to be covered by an Australian financial services licence. There is no relevant old legislation.

1430(2)   [ Item 10 of table not applying]  

Item 10 of the table in subsection (1) does not apply to a person and activities they carry on to the extent that the person's carrying on of any of those activities is in contravention of any of the provisions of the relevant old legislation for any of the other categories of regulated principals.

1430(3)   [ Regulated principal of two or more different kinds]  

If a person is a regulated principal of 2 or more different kinds, this Subdivision applies separately in relation to the person in their capacity as a regulated principal of each of those kinds.

Note: This may result (depending on what action the regulated principal takes) in a regulated principal having to comply with the relevant new legislation (within the meaning of subsection 1431(1)) in respect of their activities as a regulated principal of one kind, but, at the same time, having to comply with the relevant old legislation in respect of their activities as a regulated principal of another kind.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.