Corporations Act 2001
Subdivision B of Division 5 of Part 7.7A , as inserted by item 24 of Schedule 1 to the amending Act, applies to asset-based fees charged on or after the application day on borrowed amounts, but only to the extent that those amounts are used or to be used to acquire financial products on or after that day.
[ CCH Note: S 1531(1) will be amended by No 87 of 2019, s 3, Sch 1, by inserting " Subject to subsection (1A), " before " Subdivision B " , (effective 1 January 2021).]
[ CCH Note: S 1531(1A) will be inserted by No 87 of 2019, s 3, Sch 1 (effective 1 January 2021). S 1531(1A) will read:
Subdivision B of Division 5 of Part 7.7A , as inserted by item 24 of Schedule 1 to the amending Act, applies to asset-based fees charged on or after 1 January 2021 on borrowed amounts, where those amounts have been used, are used or are to be used, to any extent, to acquire financial products before, on or after the application day.]
Despite subsection (1), that Subdivision does not apply to an asset-based fee charged on or after the application day, to the extent that the operation of that Subdivision would result in an acquisition of property (within the meaning of paragraph 51(xxxi) of the Constitution) from a person otherwise than on just terms (within the meaning of that paragraph of the Constitution).
[ CCH Note: S 1531(2) will be substituted by No 87 of 2019, s 3, Sch 1 (effective 1 January 2021). S 1531(2) will read:
Section 1350 does not apply in relation to the operation of that Subdivision in respect of an asset-based fee.]
In this section:
(a) if the financial services licensee has lodged notice with ASIC in accordance with subsection 967(1) that the obligations and prohibitions imposed under Part 7.7A are to apply to the licensee and persons acting as representatives of the licensee on and from the day specified in the notice - the day specified in the notice; or
(b) if the person has not lodged such a notice - 1 July 2013.
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