Corporations Act 2001
Sections and provisions with full text and the judgments that cite each one.
Section 962ZA — Effect of termination
To avoid doubt, if, under an ongoing fee arrangement, the continued provision of a service to the client by the fee recipient in relation to the arrangement is dependent on the continued payment of…
Section 962B — Meaning of ongoing fee
A fee that is payable under an ongoing fee arrangement is referred to in this Division as an ongoing fee.
Section 962C — Meaning of fee recipient
(1) Where: (a) a financial services licensee enters into an ongoing fee arrangement; and (b) the rights of the licensee under the arrangement have not been assigned to another person; the licensee is…
Section 962F — Ongoing fee arrangement terminates without consent
(1) It is a condition of an ongoing fee arrangement that the arrangement terminates if: (a) the client has not given a written consent in relation to the arrangement that complies with the…
Section 962G — Requirements for consent
(1) A written consent given in relation to an ongoing fee arrangement complies with the requirements in this section if: (a) before obtaining the consent, the fee recipient disclosed to the client,…
Section 962H — When consent ceases to have effect
(1) A consent given in relation to an ongoing fee arrangement for the purposes of this Subdivision ceases to have effect: (a) unless paragraph (b) applies—at the end of the period of 150 days after…
Section 962J — Client may terminate ongoing fee arrangement at any time
(1) It is a condition of the ongoing fee arrangement that the client may terminate the arrangement at any time. (2) A client may terminate the ongoing fee arrangement by giving notice to the fee…
Section 962R — Fee recipient must not deduct ongoing fees without consent
(1) This section applies if: (a) an ongoing fee is, or will be, payable to a fee recipient under an ongoing fee arrangement; and (b) a person (the account holder) holds an account with the fee…
Section 962S — Fee recipient must not arrange for deduction of ongoing fees without consent or accept such deductions
(1) This section applies if: (a) an ongoing fee is, or will be, payable to a fee recipient under an ongoing fee arrangement; and (b) a person (the account holder) holds an account with another person…
Section 962T — Requirements for consent—deduction of fees from accounts
The requirements for the consent are: (a) before obtaining the consent, the fee recipient disclosed to the account holder, in writing, the matters set out in subsection 962G(2); and (b) the consent…
Section 962U — Variation or withdrawal of consent
(1) If a person (the account holder) who holds an account gives consent to a fee recipient under section 962R or 962S for the purposes of this Subdivision, the account holder may: (a) withdraw the…
Section 962V — When consent ceases to have effect
(1) A consent given in relation to an ongoing fee arrangement for the purposes of this Subdivision ceases to have effect: (a) unless paragraph (b) or (c) applies—at the end of the period of 150 days…
Section 962W — Conditions requiring consent to be given are void
Any condition of the ongoing fee arrangement, or any other arrangement, that requires the client to do either or both of the following is void: (a) to give consent under this Subdivision in relation…
Section 962X — Obligation to keep records of compliance
(1) A fee recipient in relation to an ongoing fee arrangement must keep records sufficient to enable the fee recipient’s compliance with this Division in relation to the ongoing fee arrangement to be…
Section 962Y — Form for consents
(1) For the purposes of this Division, the Minister may approve one or more forms for giving consent in relation to one or more of the following: (a) entering into an ongoing fee arrangement; (b)…
Section 962Z — Civil penalty provision—charging ongoing fees after arrangement terminated
If an ongoing fee arrangement terminates for any reason, the fee recipient must not charge a fee that purports to be an ongoing fee under the arrangement. Note: This section is a civil penalty…
Section 963 — Application to a financial services licensee acting as an authorised representative
If a financial services licensee is acting as an authorised representative of another financial services licensee in relation to financial product advice, this Division applies to the first licensee…
Section 963A — Meaning of conflicted remuneration—general
(1) Conflicted remuneration means any benefit, whether monetary or non-monetary, given to a financial services licensee, or a representative of a financial services licensee, who provides financial…
Section 963AA — Benefits given in relation to life risk insurance products
The regulations may prescribe circumstances, in addition to those set out in section 963A, in which a benefit given to a financial services licensee, or a representative of a financial services…
Section 963BA — Meaning of benefit ratio requirements and clawback requirements
Benefit ratio requirements (1) The benefit ratio requirements are satisfied in relation to a benefit given to a financial services licensee, or a representative of a financial services licensee, in…
Section 963B — Monetary benefit given in certain circumstances not conflicted remuneration
(1) A monetary benefit given to a financial services licensee, or a representative of a financial services licensee, who provides financial product advice to persons as retail clients is not…
Section 963BB — Informed consent for certain insurance commissions
(1) If a financial services licensee or a representative of a financial services licensee provides, or is likely to provide, personal advice to a retail client in relation to a financial product (the…
Section 963C — Non-monetary benefit given in certain circumstances not conflicted remuneration
(1) A non-monetary benefit given to a financial services licensee, or a representative of a financial services licensee, who provides financial product advice to persons as retail clients is not…
Section 963E — Licensee must not accept conflicted remuneration
(1) A financial services licensee must not accept conflicted remuneration. Note: This subsection is a civil penalty provision (see section 1317E). (2) A financial services licensee contravenes this…
Section 963F — Licensee must ensure compliance
A financial services licensee must take reasonable steps to ensure that representatives of the licensee do not accept conflicted remuneration. Note: This section is a civil penalty provision (see…
Section 963G — Authorised representative must not accept conflicted remuneration
(1) An authorised representative of a financial services licensee must not accept conflicted remuneration. Note: This subsection is a civil penalty provision (see section 1317E). (2) Subsection (1)…
Section 963H — Other representatives must not accept conflicted remuneration
A representative, other than an authorised representative, of a financial services licensee must not accept conflicted remuneration unless it is in circumstances for which an employer of the licensee…
Section 963J — Employer must not give employees conflicted remuneration
An employer of a financial services licensee, or a representative of a financial services licensee, must not give the licensee or representative conflicted remuneration for work carried out, or to be…
Section 963K — Product issuer or seller must not give conflicted remuneration
(1) An issuer or seller of a financial product must not give a financial services licensee, or a representative of a financial services licensee, conflicted remuneration. Note: This subsection is a…
Section 963L — Volume-based benefits presumed to be conflicted remuneration
It is presumed for the purposes of this Division that a benefit of one of the following kinds is conflicted remuneration, unless the contrary is proved: (a) a benefit access to which, or the value of…
Section 963M — Person covered by this section in relation to conflicted remuneration
(1) This section covers a person in relation to conflicted remuneration if: (a) the person is legally obliged (disregarding Subdivision C) to give, on or after 1 January 2021, the conflicted…
Section 963N — Regulations may provide for rebate of conflicted remuneration
(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…
Section 963P — Person covered by section 963M must pay amount etc. in accordance with regulations
If regulations made for the purposes of subsection 963N(1) require a person covered by section 963M to pay an amount, or provide a monetary benefit, the person must pay the amount or provide the…
Section 964 — Application
(1) This Subdivision applies if: (a) a financial services licensee or an RSE licensee (the platform operator) is, or offers to be, the provider of a custodial arrangement; and (b) a monetary or…
Section 964A — Platform operator must not accept volume-based shelf-space fees
(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). (2) Subject to subsection (3),…
Section 964B — Application
This Subdivision applies where a financial services licensee, or a representative of a financial services licensee, provides financial product advice (the advice) to a person (the client) as a retail…
Section 964C — Application to a financial services licensee acting as an authorised representative
If a financial services licensee is acting as an authorised representative of another financial services licensee in relation to the advice, this Subdivision applies to the first licensee in relation…
Section 964D — Financial services licensees must not charge asset-based fees on borrowed amounts
(1) The financial services licensee must not charge an asset-based fee on a borrowed amount used or to be used to acquire financial products by or on behalf of the client. Note: This subsection is a…
Section 964E — Authorised representatives must not charge asset-based fees on borrowed amounts
(1) The authorised representative of the financial services licensee must not charge an asset-based fee on a borrowed amount used or to be used to acquire financial products by or on behalf of the…
Section 964F — Meaning of asset-based fee
A fee for providing financial product advice to a person as a retail client is an asset-based fee to the extent that it is dependent upon the amount of funds used or to be used to acquire financial…
Section 964G — Meaning of borrowed
(1) In this Subdivision: borrowed means borrowed in any form, whether secured or unsecured, including through: (a) a credit facility within the meaning of the regulations; and (b) a margin lending…
Section 964H — Meaning of reasonably apparent
For the purposes of this Division, something is reasonably apparent if it would be apparent to a person with a reasonable level of expertise in the subject matter of the advice that has been sought…
Section 965 — Anti-avoidance
(1) Subject to subsection (2), a person must not, either alone or together with one or more other persons, enter into, begin to carry out or carry out a scheme if: (a) it would be concluded that the…
Section 980A — Matters covered by this Part
This Part contains: (a) provisions (see Divisions 2 to 7) relating to conduct etc. of financial services licensees; and (b) miscellaneous provisions (see Division 8) relating to other conduct…
Section 980B — General approach to offence provisions
Division 9 contains provisions creating offences by reference to various rules contained in Divisions of this Part. However, it does not create all the offences relating to those rules, as some…
Section 981A — Money to which Subdivision applies
(1) This Subdivision applies (subject to subsections (2), (3) and (4)) to money paid to a financial services licensee (the licensee) in the following circumstances: (a) the money is paid in…
Section 981B — Obligation to pay money into an account
(1) The licensee must ensure that money to which this Subdivision applies is paid into an account that satisfies these requirements: (a) the account is: (i) with an Australian ADI; or (ii) of a kind…
Section 981C — Regulations may deal with various matters relating to accounts maintained for the purposes of section 981B
(1) The regulations may deal with all or any of the following in relation to accounts, or a class of accounts, maintained for the purposes of section 981B: (a) the circumstances in which payments may…
Section 981D — Money related to derivatives may be used for general margining etc. purposes
(1) Despite anything in regulations made for the purposes of section 981C, if: (a) the financial service referred to in subparagraph 981A(1)(a)(i) is or relates to a dealing in a derivative; or (b)…
Section 981E — Protection of money from attachment etc.
(1) This section applies to: (a) money to which this Subdivision applies that has been paid to the licensee, both while it is in an account maintained for the purposes of section 981B and before and…