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ASIC Corporations (Amendment) Instrument 2016/1006

Authoritative Version
  • - F2016L01647
  • No longer in force
Other as made
This instrument amends ASIC Class Order [CO 14/923] to clarify that licensees must also have access at all times to records in relation to personal advice during the period in which the records are required to be kept, place a direct obligation on authorised representatives who are advisers to keep records in relation to personal advice, and give the records to the licensee if the licensee requests the records provided the request is made in connection with the obligations imposed on the licensee under Chapter 7 of the Corporations Act 2001, during the period in which the records are required to be kept, and restore the original policy intent of the principal class order so that the exemption to the record-keeping obligation in the principal class order only applies where the modified best interests duty applies.
Administered by: Treasury
Registered 26 Oct 2016
Tabling HistoryDate
Tabled HR07-Nov-2016
Tabled Senate07-Nov-2016
Date of repeal 28 Oct 2016
Repealed by Division 1 of Part 3 of Chapter 3 of the Legislation Act 2003
Table of contents.

Commonwealth Coat of Arms and ASIC logo

ASIC Corporations (Amendment) Instrument 2016/1006

I, Grant Moodie, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.

 

Date                20 October 2016

 

 

Grant Moodie

 



Part 1—Preliminary

1        Name of legislative instrument

This is the ASIC Corporations (Amendment) Instrument 2016/1006.

2        Commencement

This instrument commences on the day after it is registered on the Federal Register of Legislation.

Note:    The register may be accessed at www.legislation.gov.au.

3        Authority

This instrument is made under paragraph 926A(2)(c) of the Corporations Act 2001.

4        Schedules

Each instrument that is specified in the Schedule to this instrument is amended as set out in the applicable items in the Schedule.


Schedule 1—Amendments

ASIC Class Order [CO 14/923]

1        Paragraph 4

Omit “all financial services licensees”, substitute “financial services licensees (and former financial services licensees) and authorised representatives (and former authorised representatives)”.

2        Paragraph 4 (notional subsections 912G(3), (4) and (5))

Omit, substitute:

(3)     The financial services licensee must ensure the records required to be kept by this section:

(a)     are kept for 7 years after the day the personal advice was provided to the client; and

(b)     are accessible by the licensee at all times during that period in a way that enables the licensee to produce the records.

This obligation continues to apply even if the financial services licensee ceases to be a financial services licensee during the period that the records are required to be kept and accessible.

(4)     If the provider is an authorised representative of a financial services licensee and the records required to be kept by this section are kept by the authorised representative, the authorised representative:

(a)     must give the records to the licensee if requested by the licensee, provided the request is made:

(i)      in connection with the obligations imposed on the licensee under this Chapter; and

(ii)     within 7 years after the day on which the personal advice was provided to the client; and

(b)     unless the records have been given by the authorised representative to the licensee—must keep the records for a period of 7 years after the day on which the personal advice was provided to the client.

This obligation continues to apply even if the authorised representative ceases to be an authorised representative of the financial services licensee during the period that the records are required to be given or kept.

(5)     Nothing in subsection (4) limits the operation of subsections (2) and (3).

(6)     This section does not apply to the provision of personal advice given in relation to a financial product in circumstances where the provider satisfies the duty in subsection 961B(1) in relation to the advice given in relation to the financial product if the provider takes the steps mentioned in paragraphs 961B(2)(a), (b) and (c).

(7)     This section (other than paragraph (2)(d) and subsection (3) as it relates to that paragraph) does not apply to the provision of personal advice covered by either of the following circumstances:

(a)     the provision of personal advice for which a Statement of Advice is not required to be given to the client;

(b)     the provision of personal advice for which a record of the advice is kept in accordance with subsection 946B(3A).