Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .

PART 7.7A - BEST INTERESTS OBLIGATIONS AND REMUNERATION  

Division 4 - Conflicted remuneration  

Subdivision D - Rebate of conflicted remuneration  

SECTION 963N   REGULATIONS MAY PROVIDE FOR REBATE OF CONFLICTED REMUNERATION  

963N(1)  
The regulations may provide for a scheme under which a person covered by section 963M in relation to conflicted remuneration must, in the circumstances set out in subsection (2) , pay amounts based on that conflicted remuneration, or provide monetary benefits based on that conflicted remuneration, to persons (the product holders ) described in subsection (3) .

963N(2)  
The circumstances are as follows:

(a)  a financial services licensee, or a representative of a financial services licensee:


(i) provided financial product advice to one or more persons as retail clients, in connection with the conflicted remuneration; or

(ii) is or was legally obliged to provide financial product advice to one or more persons as retail clients, in connection with the conflicted remuneration; and

(b)  the financial product advice relates to a particular financial product or class of financial products.

963N(3)  
A person is a product holder mentioned in subsection (1) if:

(a)  the person holds the particular financial product mentioned in paragraph (2)(b) , or a financial product in the class mentioned in that paragraph; or

(b)  another person holds the particular financial product mentioned in that paragraph, or a financial product in the class mentioned in that paragraph, on behalf of the person.

963N(4)  
Without limiting the scope of regulations made for the purposes of subsection (1) , those regulations may make different provision in respect of any of the following:

(a)  different classes of person covered by section 963M ;

(b)  different classes of financial product;

(c)  different classes of product holder;

(d)  different classes of conflicted remuneration;

(e)  different classes of circumstances in which conflicted remuneration arises.

963N(5)  
Without limiting the scope of regulations made for the purposes of subsection (1) , those regulations may provide that a person covered by section 963M need not pay amounts mentioned in subsection (1) , nor provide monetary benefits mentioned in that subsection, to one or more specified classes of product holder.

963N(6)  
Without limiting the scope of regulations made for the purposes of subsection (1) , those regulations may provide for any of the following matters:

(a)  the identification of product holders;

(b)  the timeframe for making payments or providing monetary benefits;

(c)  a method or methods of determining amounts of payments, or amounts of monetary benefits;

(d)  a method or methods of making payments or providing monetary benefits.


 

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