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CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS    View history reference

PART 7.7A - BEST INTERESTS OBLIGATIONS AND REMUNERATION    View history reference

Division 7 - Transition    View history reference

SECTION 968  NOTICE TO CLIENTS IN TRANSITION PERIOD  

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968(1)  

A financial services licensee who lodges a notice with ASIC in accordance with subsection 967(1) must ensure that any person in relation to whom the licensee, or a person acting as a representative of the licensee, has an obligation or is subject to a prohibition under this Part during the transition period (the client) is given a notice that complies with this section.

968(2)  

The notice:


(a) must be in writing; and


(b) must be given to the client on or before the notice day for the client; and


(c) must state that the obligations and prohibitions imposed under this Part begin to apply to the licensee, and any person acting as a representative of the licensee, on a day specified in the notice given to the client.

968(3)  

The day specified in the notice given to the client must be the same as the day specified in the notice lodged with ASIC in accordance with subsection 967(1).

968(4)  

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The notice day is:


(a) for a person (the client) in relation to whom the licensee, or a person acting as a representative of the licensee, has an obligation or is subject to a prohibition under Division 2 of this Part in relation to personal advice provided on or after a day that falls in the transition period - the first day on which personal advice is provided to the client during the transition period; and


(b) for a person to whom the licensee, or a person acting as a representative of the licensee, is obliged to give a fee disclosure statement during the transition period:


(i) unless subparagraph (ii) applies - the disclosure day for the arrangement in relation to which the fee disclosure statement is to be given that falls within the transition period; and

(ii) if a fee disclosure statement is given before the end of a period of 30 days beginning on that disclosure day - the day on which it is given; and


(c) for a person (the client) in relation to whom the licensee, or a person acting as a representative of the licensee, has an obligation or is subject to a prohibition under Subdivision B of Division 5 of this Part in relation to the charging of an asset-based fee during the transition period - the first day on which the client is charged an asset-based fee during the transition period; and


(d) for a person in relation to whom more than one of paragraphs (a), (b) and (c) is satisfied - the earliest of the days specified as the notice day under the paragraphs that are satisfied for that person.


 



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