CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.7A - BEST INTERESTS OBLIGATIONS AND REMUNERATION  

Division 5 - Other banned remuneration  

Subdivision A - Volume-based shelf-space fees  

SECTION 964A   PLATFORM OPERATOR MUST NOT ACCEPT VOLUME-BASED SHELF-SPACE FEES  

964A(1)  
The platform operator must not accept the benefit if it is a volume-based shelf-space fee.

Note: This subsection is a civil penalty provision (see section 1317E ).

964A(2)  
Subject to subsection (3), the benefit is a volume-based shelf-space fee if:


(a) access to the benefit, or the value of the benefit, is wholly or partly dependent on the total value or number of financial products of a particular class, or particular classes, in relation to which the platform operator provides custodial arrangements; and


(b) because of the nature of the benefit or the circumstances in which the benefit is given, it could reasonably be expected to influence the platform operator:


(i) to increase the total number or value of the funds manager ' s financial products in relation to which the platform operator is prepared to provide custodial arrangements; or

(ii) to give preferential treatment to the funds manager ' s financial products in providing custodial arrangements.

964A(3)  
If all or part of the benefit is of a kind specified in one of the following paragraphs, then, to the extent that the benefit is of that kind, it is not a volume-based shelf-space fee :


(a) a reasonable fee for a service provided to the funds manager by the platform operator or another person;


(b) a discount on an amount payable, or a rebate of an amount paid, to the funds manager by the platform operator, that can reasonably be attributed to economies of scale that are gained, or could reasonably be expected to be gained, because of the number or value of the funds manager ' s financial products in relation to which the platform operator provides custodial arrangements;


(c) the benefit is for providing a custodial arrangement in relation to a general insurance product or a life risk insurance product;


(d) the benefit is for providing a custodial arrangement in relation to a basic banking product.


 

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