Corporations Act 2001
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
(b) the financial product advice relates to a particular financial product or class of financial products. 963N(3)
(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
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.
[ CCH Note: The next section is s 963P.]
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.