Corporations Act 2001
Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .
View history note
Hide history noteCCH Note: Division 4A is modified by the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716.
CCH Note: Subdivision A is modified by the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716.
CCH Note: Section 985G is modified by the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716.
Requirement to make inquiries and take steps to verify
985G(1)
For the purposes of paragraph 985E(1)(d) , the provider must, before making the assessment: (a) make reasonable inquiries about the retail client ' s financial situation; and (b) take reasonable steps to verify the retail client ' s financial situation; and (c) make any inquiries prescribed by the regulations about any matter prescribed by the regulations; and (d) take any steps prescribed by the regulations to verify any matter prescribed by the regulations.
985G(2)
The regulations may prescribe particular inquiries or steps that must be made or taken, or do not need to be made or taken, for the purposes of paragraph (1)(a) or (b).
When not required to take steps to verify
985G(3)
Despite subsection (1), if: (a) a financial services licensee that is authorised to provide financial product advice in relation to margin lending facilities has prepared a statement of advice for the retail client; and (b) the statement of advice was prepared no more than 90 days before the critical day; and (c) the statement of advice recommends that:
(i) the retail client acquire the particular margin lending facility; or
(d) the limit of the facility, or the increase in the limit of the facility, is not greater than the limit, or the increase in the limit, recommended in the statement of advice; and (e) the statement of advice includes the information that was used for the purposes of preparing the statement of advice;
(ii) the limit of the particular margin lending facility be increased; and
then the provider is not required, for the purposes of paragraph (1)(b) or (d), to verify that information.
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