Federal Register of Legislation - Australian Government

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ASIC Class Order [CO 03/1048]

Authoritative Version
CO 03/1048 Orders/ASIC Class Orders as made
This Class Order provides that an Australian financial services licence is not required for the provision of a financial service that consists of advising or arranging in relation to a mortgage offset account on the condition that the provider of the service is a member of an eligible external dispute resolution scheme.
Administered by: Treasury
General Comments: This instrument was published in the Australian Securities and Investments Commission Gazette on 9 December 2003.
Registered 02 May 2007
Gazetted 09 Dec 2003
Date of repeal 19 Sep 2017
Repealed by ASIC Corporations (Repeal) Instrument 2017/796

 

Australian Securities and Investments Commission

Corporations Act 2001 — Paragraph 911A(2)(l) Exemption

 

Under paragraph 911A(2)(l) of the Corporations Act 2001 (the “Act”) the Australian Securities and Investments Commission (“ASIC”) exempts each person who is a member of an eligible external dispute resolution scheme from the requirement to hold an Australian financial services licence for the provision of the following financial services:

 

1.                  financial product advice relating to a mortgage offset account;

 

2.                  arranging for another person to apply for, acquire, vary or dispose of a mortgage offset account.

 

Interpretation

 

In this instrument:

 

“eligible external dispute resolution scheme” means an external dispute resolution scheme that:

 

(a)        is approved by ASIC for the purposes of subparagraph 912A(2)(b)(i) of the Act; and

 

(b)        may, under its rules, deal with disputes in relation to mortgage offset accounts;

 

“financial product advice” has the meaning given by section 766B of the Act; and

 

“mortgage offset account” means a deposit product (within the meaning of section 761A of the Act) that is a facility in relation to which either of the following paragraphs is satisfied:

 

(a)        the amount standing to the credit of the facility from time to time is notionally offset against the balance of a loan entered into by the depositor with the provider of the facility, and interest on the loan is calculated by reference to the notionally-reduced loan balance; or

 

(b)        interest payable on a loan entered into by the depositor with the provider of the facility is periodically reduced by an amount that would otherwise accrue as interest or other earnings on the amount standing to the credit of the facility from time to time.

 

Commencement

 

This instrument commences on gazettal.

 

Dated this 8th day of December 2003

 

 

 

Signed by Brendan Byrne

as a delegate of the Australian Securities and Investments Commission