CORPORATIONS AMENDMENT (PROFESSIONAL STANDARDS OF FINANCIAL ADVISERS) BILL 2016

2016

The Parliament of the

Commonwealth of Australia

HOUSE OF REPRESENTATIVES

Presented and read a first time

Corporations Amendment (Professional

Standards of Financial Advisers) Bill

2016

No. , 2016

(Treasury)

A Bill for an Act to amend the law relating to

financial services, and for related purposes

No. , 2016

Corporations Amendment (Professional Standards of Financial

Advisers) Bill 2016

Contents

Short title ........................................................................................... 1

Commencement ................................................................................. 1

Schedules ........................................................................................... 2

Schedule 1--Amendments

Part 1--Amendments

Corporations Act 2001

Tax Agent Services Act 2009

Part 2--Application of amendments

Corporations Act 2001

No. , 2016

Corporations Amendment (Professional Standards of Financial

Advisers) Bill 2016

A Bill for an Act to amend the law relating to

financial services, and for related purposes

The Parliament of Australia enacts:

1 Short title

This Act is the Corporations Amendment (Professional Standards

of Financial Advisers) Act 2016.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

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Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. The whole of

this Act

A single day to be fixed by Proclamation.

However, if the provisions do not commence

within the period of 6 months beginning on

the day this Act receives the Royal Assent,

they commence on the day after the end of

that period.

Note:

This table relates only to the provisions of this Act as originally

enacted. It will not be amended to deal with any later amendments of

this Act.

(2) Any information in column 3 of the table is not part of this Act.

Information may be inserted in this column, or information in it

may be edited, in any published version of this Act.

3 Schedules

Legislation that is specified in a Schedule to this Act is amended or

repealed as set out in the applicable items in the Schedule

concerned, and any other item in a Schedule to this Act has effect

according to its terms.

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Schedule 1--Amendments

Part 1--Amendments

Corporations Act 2001

1 Section 910A

Insert:

basic banking product has the meaning given by section 961F.

body corporate licensee means a body corporate that:

(a) is a financial services licensee; and

(b) is authorised to provide personal advice to retail clients in

relation to relevant financial products.

class of product advice means financial product advice about a

class of products, but does not include a recommendation about a

specific product in the class.

Code of Ethics means the Code of Ethics, as in force from time to

time, made by the standards body under paragraph 921U(2)(b).

compliance scheme has the meaning given by section 921G.

consumer credit insurance has the meaning given by section 11 of

the Insurance Contracts Act 1984.

control, in relation to a body corporate licensee, means:

(a) having the capacity to cast, or control the casting of, more

than one half of the maximum number of votes that might be

cast at a general meeting of the licensee; or

(b) directly or indirectly holding more than one half of the issued

share capital of the licensee (not including any part of the

issued share capital that carries no right to participate beyond

a specified amount in a distribution of either profits or

capital); or

board or governing body; or

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(d) the capacity to determine the outcome of decisions about the

licensee's financial and operating policies, taking into

account:

(i) the practical influence the person can exert (rather than

the rights it can enforce); and

(ii) any practice or pattern of behaviour affecting the

licensee's financial or operating policies (whether or not

it involves a breach of an agreement or a breach of

trust).

covers, in relation to a compliance scheme, has the meaning given

by section 921J.

CPD year (short for continuing professional development year): a

financial services licensee's CPD year is the 12-month period

beginning on the day of the year included in the most recent notice

given by the licensee under section 922HA.

education and training standards has the meaning given by

section 921B.

foreign qualification means a bachelor or higher degree, or

equivalent qualification, awarded by a tertiary education institution

outside Australia.

limited-service time-sharing adviser: a person is a limited-service

time-sharing adviser if:

(a) the person is a relevant provider; and

(b) the only relevant financial product that the person provides

advice in relation to is a time-sharing scheme; and

training standards in subsections 921B(2) to (4).

monitoring body for a compliance scheme means the person that

monitors and enforces compliance with the Code of Ethics under

the scheme.

notice provision means section 922D, 922H, 922HA, 922HB,

922HD, 922J or 922K.

professional association means a body or association that

represents a section of the financial services industry.

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provisional relevant provider means a relevant provider who is

undertaking work and training in accordance with

subsection 921B(4).

Note:

For rules relating to provisional relevant providers, see Subdivision C

of Division 8A and section 923C.

recent advising history has the meaning given by section 922G.

Register of Relevant Providers means the Register of Relevant

Providers maintained under section 922Q.

relevant financial products means financial products other than:

(a) basic banking products; or

(b) general insurance products; or

(d) a combination of any of those products.

relevant provider: a person is a relevant provider if the person:

(a) is an individual; and

(b) is:

(i) a financial services licensee; or

(ii) an authorised representative of a financial services

licensee; or

(iii) an employee or director of a financial services licensee;

(iv) an employee or director of a related body corporate of a

financial services licensee; and

the licensee or on behalf of the licensee, in relation to

relevant financial products.

Note:

For rules about when relevant providers can use the expressions

"financial adviser" and "financial planner", see section 923C.

standards body means the body corporate in relation to which a

declaration under section 921X is in force.

supervisor of a provisional relevant provider has the meaning

given by subsection 921F(2).

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2 Paragraph 912A(1)(f)

After "adequately trained", insert "(including by complying with

section 921D)".

3 Subsection 913B(1) (note)

Omit "Note", substitute "Note 1".

4 At the end of subsection 913B(1)

Add:

Note 2:

There are limitations on ASIC granting an individual an Australian

financial services licence that covers the provision of certain personal

advice if the individual does not meet the education and training

standards in subsections 921B(2) to (4) (see section 921C).

5 At the end of subsection 916A(1)

Add:

Note:

There are limitations on a financial services licensee authorising an

individual to provide certain personal advice if the individual does not

meet the education and training standards in subsections 921B(2) to

(4) (see section 921C).

6 At the end of subsection 916A(3)

Add:

; or (c) in contravention of subsection 921C(2).

7 Subsection 916B(2)

After "contrary to this section", insert "or subsection 921C(3)".

8 Subsection 916B(2A)

After "contrary to this section", insert "or subsection 921C(3)".

9 At the end of subsection 916B(3)

Add:

Note:

There are limitations on sub-authorising an individual to provide

certain personal advice if the individual does not meet the education

and training standards in subsections 921B(2) to (4) (see

section 921C).

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10 After paragraph 920A(1)(da)

Insert:

(db) the person has not complied with any one or more of his or

her obligations under section 921F (requirements relating to

provisional relevant providers); or

(dc) both of the following apply:

(i) a supervisor referred to in section 921F has not

complied with any one or more of his or her obligations

under that section in relation to a provisional relevant

provider;

(ii) both the supervisor and the provisional relevant

provider are authorised to provide personal advice to

retail clients, on behalf of the person, in relation to

relevant financial products; or

(dd) both of the following apply:

(i) a provisional relevant provider has not complied with

his or her obligations under subsection 921F(7);

(ii) the provisional relevant provider is authorised to

provide personal advice to retail clients, on behalf of the

person, in relation to relevant financial products; or

(de) ASIC has reason to believe that the person was authorised, in

contravention of subsection 921C(2), (3) or (4), to provide

personal advice to retail clients in relation to relevant

financial products; or

11 Paragraph 920A(1)(e)

After "financial services law", insert "(other than section 921E (relevant

providers to comply with the Code of Ethics))".

12 After Division 8 of Part 7.6

Insert:

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Division 8A--Professional standards for relevant providers

Subdivision A--Education and training standards

921B Meaning of education and training standards

(1) This section sets out the education and training standards for a

person who is, or is to be, a relevant provider.

Conditions for relevant providers

(2) The first standard is that:

(a) the person has completed a bachelor or higher degree, or

equivalent qualification, approved by the standards body

under section 921U; or

(b) both of the following conditions are satisfied:

(i) the person has completed a foreign qualification;

(ii) the standards body has approved the foreign

qualification under section 921V.

(3) The second standard is that the person has passed an exam

approved by the standards body.

(4) The third standard is that the person has undertaken at least 1 year

of work and training that meets the requirements set by the

standards body.

Note:

A relevant provider who is undertaking work and training in

accordance with this subsection is a provisional relevant provider (see

the definition of provisional relevant provider in section 910A). For

rules relating to provisional relevant providers, see Subdivision C.

Continuing standard for relevant providers

(5) The fourth standard is that the person meets the requirements for

continuing professional development set by the standards body.

Note:

A provisional relevant provider is not required to meet this standard

(see section 921D).

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921C Limitation on authorisation to provide personal advice unless

conditions met

Financial services licensees

(1) ASIC must not grant an applicant an Australian financial services

licence that covers the provision of personal advice to retail clients

in relation to relevant financial products if:

(a) the applicant is an individual; and

(b) the applicant has not met any one or more of the education

and training standards in subsections 921B(2) to (4).

Note:

Subsections 921B(2) to (4) set out the conditions for education and

training for relevant providers.

Authorised representatives

(2) A financial services licensee must not, under section 916A, give a

person a written notice authorising the person to provide personal

advice to retail clients, on behalf of the licensee, in relation to

relevant financial products if:

(a) the person is an individual; and

(b) either or both of the following subparagraphs apply:

(i) the person has not met either or both of the education

and training standards in subsections 921B(2) and (3);

(ii) the person has not met the education and training

standard in subsection 921B(4), and is not undertaking

work and training in accordance with that subsection.

Sub-authorisations

(3) An authorised representative of a financial services licensee must

not, under subsection 916B(3), give an individual a written notice

authorising that individual to provide personal advice to retail

clients, on behalf of the licensee, in relation to relevant financial

products if either or both of the following paragraphs apply:

(a) the individual has not met either or both of the education and

training standards in subsections 921B(2) and (3);

(b) the individual has not met the education and training standard

in subsection 921B(4), and is not undertaking work and

training in accordance with that subsection.

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Employees and directors

(4) A financial services licensee must not authorise an employee or

director of the licensee, or of a related body corporate of the

licensee, to provide personal advice to retail clients, on behalf of

the licensee, in relation to relevant financial products if either or

both of the following paragraphs apply:

(a) the employee or director has not met either or both of the

education and training standards in subsections 921B(2) and

(3);

(b) the employee or director has not met the education and

training standard in subsection 921B(4), and is not

undertaking work and training in accordance with that

subsection.

Exemption in relation to time-sharing schemes

(5) This section does not apply in relation to a person who is to

provide personal advice to retail clients in relation to relevant

financial products if the only relevant financial product in relation

to which the person is to provide personal advice to retail clients is

a time-sharing scheme.

921D Relevant providers to meet continuing professional

development standard

(1) A relevant provider must comply with subsection 921B(5):

(a) if the relevant provider is a financial services licensee--

during the licensee's CPD year; or

(b) if the relevant provider is authorised to provide personal

advice to retail clients, on behalf of a financial services

licensee, in relation to relevant financial products--during

the licensee's CPD year.

Note 1:

Subsection 921B(5) requires a relevant provider to meet the

continuing professional development standard.

Note 2:

Section 922HB requires a notice to be given at the end of a financial

services licensee's CPD year if a relevant provider has not complied

with this section during that year.

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Exemptions

(2) Subsection (1) does not apply in relation to a person if:

(a) the person is a provisional relevant provider; or

(b) the only relevant financial product in relation to which the

person provides personal advice to retail clients is a

time-sharing scheme.

Subdivision B--Ethical standards

921E Relevant providers to comply with the Code of Ethics

A relevant provider must comply with the Code of Ethics.

Note:

A failure to comply with the Code of Ethics must be notified under

section 922HD.

Subdivision C--Provisional relevant providers

921F Requirements relating to provisional relevant providers

(1) This section sets out the requirements in relation to a person who is

a provisional relevant provider.

Meaning of supervisor

(2) A supervisor of a provisional relevant provider is an individual

who:

(a) has supervisory responsibility for the provisional relevant

provider; and

(b) is a relevant provider; and

(d) is not a limited-service time-sharing adviser.

Role of supervisors

(3) A supervisor of a provisional relevant provider must ensure that

appropriate supervision is provided to the provisional relevant

provider.

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(4) A supervisor of a provisional relevant provider must approve, in

writing, any Statement of Advice provided by the provisional

relevant provider to a retail client.

Personal advice provided by provisional relevant providers

(5) For the purposes of this Act, personal advice provided (whether

orally or in writing) by a provisional relevant provider at a

particular time to a retail client in relation to a relevant financial

product is taken to have been provided to the client by each person

who is, at that time, a supervisor of the provisional relevant

provider (instead of by the provisional relevant provider).

Retail clients to be informed of certain matters

(6) A supervisor of a provisional relevant provider must ensure that a

retail client is informed:

(a) of the name of each supervisor of the provisional relevant

provider (even if the retail client has been informed of the

name of each previous supervisor); and

(b) that the provisional relevant provider is undertaking work

and training in accordance with subsection 921B(4); and

provided by the provisional relevant provider to the client in

relation to a relevant financial product.

Provisional relevant providers not to obstruct or hinder

supervision

(7) A provisional relevant provider must not obstruct or hinder a

supervisor of the provisional relevant provider in ensuring that

appropriate supervision is provided to the provisional relevant

provider.

Note:

Under section 921U, the standards body may provide further for the

purposes of this section.

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Division 8B--Compliance schemes

Subdivision A--Compliance schemes to cover relevant

providers

921G Meaning of compliance scheme

(1) A compliance scheme is a scheme:

(a) that meets the requirements of this section; and

(b) under which compliance with the Code of Ethics by relevant

providers covered by the scheme is monitored and enforced.

Monitoring body of compliance scheme

(2) A monitoring body for a compliance scheme must monitor and

enforce compliance with the Code of Ethics by any relevant

provider covered by the scheme.

(3) A monitoring body for a compliance scheme must not be:

(a) a financial services licensee; or

(b) an associate of a financial services licensee.

(4) A compliance scheme must name the monitoring body for the

scheme.

Disputes and complaints

(5) A compliance scheme must set out how a dispute is to be resolved

between the monitoring body for the scheme and a relevant

provider covered by the scheme.

(6) A compliance scheme must set out how a person may make a

complaint to the monitoring body for the scheme in relation to a

failure to comply with, or possible failure to comply with, the Code

of Ethics by a relevant provider covered by the scheme.

Name of compliance scheme

(7) A compliance scheme must have a name.

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921H Financial services licensees to ensure compliance scheme

covers relevant providers

(1) A financial services licensee must ensure that a compliance scheme

covers:

(a) if the licensee is a relevant provider--the licensee; and

(b) in any case--any relevant provider authorised to provide

personal advice to retail clients, on behalf of the licensee, in

relation to relevant financial products.

Note:

For when a compliance scheme covers a relevant provider, see

section 921J.

(2) A compliance scheme must cover a relevant provider within 30

business days of the following:

(a) the day the person becomes a relevant provider;

(b) if the relevant provider was previously covered by only one

compliance scheme that has ceased to cover the relevant

provider--the day that scheme ceased to cover the relevant

provider.

921J When a compliance scheme covers a relevant provider

(1) A compliance scheme covers a relevant provider if:

(a) an approval is in force under section 921K in relation to the

compliance scheme; and

(b) the condition in subsection (2) of this section is met for the

relevant provider; and

professional association--the relevant provider is a member

of the professional association.

Notifying ASIC of the compliance scheme that covers a relevant

provider

(2) The condition in this subsection is met for a relevant provider in

relation to a compliance scheme if:

(a) both of the following apply:

(i) the notice lodged under section 922D in relation to the

relevant provider stated that the compliance scheme is

to cover the relevant provider;

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(ii) no notice has been lodged under section 922H stating

that another compliance scheme is to cover the relevant

provider; or

(b) the most recent notice lodged under section 922H, in relation

to particulars entered on the Register of Relevant Providers

about the compliance scheme that is to cover the relevant

provider, stated that the compliance scheme is to cover the

relevant provider.

Note:

A notice must be lodged under section 922H when there is a change in

a matter for a relevant provider.

Subdivision B--Approval of compliance schemes

921K Approval of compliance schemes

(1) A monitoring body for a compliance scheme may apply to ASIC

for approval of the compliance scheme.

Note:

A monitoring body for a compliance scheme may propose to modify

the scheme (see section 921R).

(2) The application must set out details of the scheme, including:

(a) the name of the monitoring body for the scheme; and

(b) arrangements for monitoring compliance with the Code of

Ethics by relevant providers covered by the scheme; and

relevant providers covered by the scheme; and

(d) arrangements for resolving disputes between the monitoring

body and relevant providers covered by the scheme; and

(e) arrangements for making complaints to the monitoring body

in relation to failures to comply with, or possible failures to

comply with, the Code of Ethics by relevant providers

covered by the scheme.

(3) The application must include evidence that the monitoring body

has sufficient resources and expertise to appropriately monitor and

enforce compliance with the Code of Ethics under the scheme.

Approval of compliance scheme

(4) ASIC may approve the scheme if it is satisfied that:

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(a) compliance with the Code of Ethics will be appropriately

monitored and enforced under the scheme; and

(b) the monitoring body has sufficient resources and expertise to

appropriately monitor and enforce compliance with the Code

of Ethics under the scheme.

(5) ASIC may approve the scheme subject to any one or more

conditions ASIC considers appropriate.

(6) ASIC must, within a reasonable period, decide the application and

notify the monitoring body of:

(a) the decision; and

(b) any condition mentioned in subsection (5).

Revocation of approval, imposition of additional conditions etc.

(7) ASIC may, in accordance with subsection (8), take an action

specified under subsection (9) if ASIC is satisfied:

(a) that compliance with the Code of Ethics is not being

appropriately monitored or enforced under the scheme; or

(b) that the monitoring body has not complied with:

(i) section 921N (obligation to notify licensee of failure to

comply with Code of Ethics); or

(ii) a request under section 921Q (obligation to provide

ASIC with information); or

(iii) section 921T (obligation to notify ASIC of changes to

monitoring body); or

(iv) section 922HD (obligation to notify ASIC in relation to

failures to comply with the Code of Ethics); or

or expertise to appropriately monitor or enforce compliance

with the Code of Ethics under the scheme.

(8) ASIC must not take an action specified under subsection (9)

unless:

(a) ASIC gives a written notice to the monitoring body:

(i) providing reasons why ASIC is considering taking the

action; and

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(ii) stating that the monitoring body has 90 business days to

make submissions to ASIC, in accordance with the

notice, about the possible action; and

(b) ASIC has considered any submissions made by the

monitoring body in accordance with the notice.

(9) The following actions are specified:

(a) revoking the approval of the scheme;

(b) varying a condition imposed in relation to the approval of the

scheme;

of the scheme.

Revocation of conditions etc.

(10) ASIC may revoke or vary a condition imposed in relation to the

approval of the scheme if ASIC is satisfied that compliance with

the Code of Ethics will continue to be appropriately monitored and

enforced under the scheme if ASIC revokes or varies the condition.

(11) ASIC must, within a reasonable period, notify the monitoring body

if ASIC revokes or varies a condition under subsection (10).

Subdivision C--Investigations by monitoring body

921L Investigations by monitoring body

Investigation into failure, or possible failure, to comply with Code

of Ethics

(1) The monitoring body for a compliance scheme must determine, in

writing, whether a relevant provider covered by the scheme has

failed to comply with the Code of Ethics if the monitoring body

becomes aware of the failure, or possible failure, by the relevant

provider to comply with the Code of Ethics.

Notifying relevant provider of investigation

(2) Within a reasonable period of becoming so aware, the monitoring

body must notify the relevant provider that the monitoring body:

(a) has become so aware; and

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(b) is to make a determination under subsection (1).

Note:

A monitoring body that fails to comply with this subsection may

commit an offence (see subsection 921M(1)).

Request for information

(3) After becoming so aware, the monitoring body may request, in

writing, any one or more of the following persons to provide

information, documents or any other reasonable assistance to the

monitoring body, within a reasonable specified period:

(a) if the relevant provider is a financial services licensee--the

licensee;

(b) if the relevant provider is not a financial services licensee:

(i) the relevant provider; or

(ii) the financial services licensee on whose behalf the

relevant provider is authorised to provide personal

advice to retail clients in relation to relevant financial

products; or

(iii) if the relevant provider is a relevant provider as a result

of section 916B--the authorised representative who

authorised the relevant provider under that section.

Note:

A person who fails to comply with a request under this subsection

may commit an offence (see subsection 921M(2)).

Restriction on relevant provider leaving compliance scheme

(4) The relevant provider must not cause a notice to be lodged under

section 922H stating that another compliance scheme is to cover

the relevant provider before the monitoring body has made a

determination under subsection (1).

Note:

A relevant provider who fails to comply with this subsection may

commit an offence (see subsection 921M(3)).

Completion of investigation

(5) The monitoring body must make the determination:

(a) if the relevant provider notifies the monitoring body that the

relevant provider intends to cause a notice to be lodged under

section 922H stating that another compliance scheme is to

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cover the relevant provider--within 160 days of receiving the

notice; or

(b) otherwise--within a reasonable period of becoming aware of

the failure, or possible failure, by the relevant provider to

comply with the Code of Ethics.

Note:

A monitoring body that fails to comply with this subsection may

commit an offence (see subsection 921M(1)).

Determination by monitoring body not a legislative instrument

(6) The determination is not a legislative instrument.

Offence

(7) A person commits an offence if:

(a) the person is a monitoring body for a compliance scheme;

and

(b) information is disclosed to the person in accordance with

subsection 70-40(3AA) of the Tax Agent Services Act 2009;

and

other than monitoring or enforcing compliance with the Code

of Ethics under the scheme.

Penalty: 10 penalty units.

921M Offences relating to investigations by monitoring body

Failure by monitoring body to notify relevant provider of

investigation or complete investigation

(1) A person commits an offence if:

(a) the person is a monitoring body for a compliance scheme;

and

(b) the person fails to comply with subsection 921L(2) or (5).

Penalty: 10 penalty units.

Failure to comply with request for information

(2) A person commits an offence if:

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(a) a request is made of the person under subsection 921L(3);

and

(b) the person fails to comply with the request within the period

specified.

Penalty: 10 penalty units.

Leaving compliance scheme before investigation completed

(3) A person commits an offence if:

(a) the person is a relevant provider; and

(b) the person is covered by a compliance scheme; and

the monitoring body has become aware of a failure, or

possible failure, by the person to comply with the Code of

Ethics; and

(d) the person contravenes subsection 921L(4).

Penalty: 10 penalty units.

921N Obligation to notify licensee of failure to comply with Code of

Ethics

(1) A monitoring body for a compliance scheme that covers a relevant

provider must notify a financial services licensee if:

(a) either:

(i) the monitoring body determines under

subsection 921L(1) that the relevant provider has failed

to comply with the Code of Ethics; or

(ii) the monitoring body imposes a sanction on the relevant

provider in relation to a failure to comply with the Code

of Ethics; and

(b) the relevant provider is authorised by the licensee to provide

personal advice to retail clients in relation to relevant

financial products.

(2) The monitoring body must notify the licensee within 30 days after

making the determination or imposing the sanction.

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Note 1:

The approval for a compliance scheme may be revoked if the

monitoring body for the scheme does not comply with this section

(see subsection 921K(7)).

Note 2:

ASIC must be notified if a monitoring body becomes aware of a

failure, or possible failure, to comply with the Code of Ethics by a

relevant provider, or if a sanction is imposed on a relevant provider

under a compliance scheme (see section 922HD).

Subdivision D--Other provisions

921P Obligation to ensure that compliance scheme is publicly

available

(1) A monitoring body for a compliance scheme must ensure that the

scheme is publicly available while any approval given under

section 921K is in force in relation to the scheme.

Offence

(2) A person commits an offence if:

(a) the person is a monitoring body for a compliance scheme;

and

(b) an approval given under section 921K is in force in relation

to the scheme; and

Penalty: 10 penalty units.

921Q Obligation to provide ASIC with information

(1) ASIC may request, in writing, a monitoring body for a compliance

scheme to give ASIC any specified information or documents

about the compliance scheme within a reasonable specified period.

(2) The monitoring body must comply with the request within the

period specified.

Note:

The approval for a compliance scheme may be revoked if the

monitoring body for the scheme does not comply with this section

(see subsection 921K(7)).

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921R Modification of compliance scheme

(1) While an approval given under section 921K is in force in relation

to a compliance scheme, the monitoring body for the scheme may,

by written notice given to ASIC, propose to modify the scheme.

(2) The notice must:

(a) set out the text of the proposed modification; and

(b) contain an explanation of the purpose of the proposed

modification.

Disallowance of modification

(3) Within the 28-day period beginning on the day ASIC receives the

notice, ASIC may, by written notice given to the monitoring body,

disallow all or a specified part of the proposed modification if

ASIC is satisfied on reasonable grounds that:

(a) compliance with the Code of Ethics will not be appropriately

monitored or enforced under the scheme as modified; or

(b) if the proposed modification is a new monitoring body for the

scheme--the new monitoring body does not have sufficient

resources or expertise to appropriately monitor or enforce

compliance with the Code of Ethics under the scheme.

Effect of disallowance

(4) If ASIC disallows the proposed modification within the 28-day

period, the proposed modification does not take effect.

(5) If ASIC disallows a specified part of the proposed modification

within the 28-day period:

(a) the specified part does not take effect; and

(b) the proposed modification without the specified part takes

effect at the end of the period.

No disallowance

(6) Otherwise, the proposed modification takes effect at the end of the

28-day period.

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921S Obligation to review compliance scheme

(1) A monitoring body for a compliance scheme must cause another

person to complete a review of the scheme before the end of:

(a) the 5-year period beginning on the day ASIC approves the

scheme under section 921K; and

(b) each subsequent 5-year period.

(2) The other person mentioned in subsection (1) must not be:

(a) an associate of the monitoring body; or

(b) a person covered by the scheme; or

provide personal advice to retail clients, on behalf of a

financial services licensee, in relation to relevant financial

products--the licensee; or

(d) if a relevant provider covered by the scheme is a member of a

professional association--the professional association.

(3) As soon as reasonably practical after the review has been

completed, the monitoring body must:

(a) make the review publicly available; and

(b) give a copy of the review to ASIC.

921T Obligation to notify ASIC of changes to monitoring body

A monitoring body for a compliance scheme must notify ASIC if

the monitoring body significantly reduces the resources or

expertise that it uses to monitor or enforce compliance with the

Code of Ethics under the scheme.

Note:

The approval for a compliance scheme may be revoked if the

monitoring body for the scheme does not comply with this section

(see subsection 921K(7)).

Division 8C--The standards body

Subdivision A--Functions of the standards body

921U Functions of the standards body

(1) The functions of the standards body are:

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(a) to make the legislative instruments mentioned in

subsections (2), (3) and (5); and

(b) to review those instruments regularly; and

approval of a foreign qualification--to approve, or refuse to

approve, the foreign qualification; and

(d) if an exam approved for the purposes of subsection 921B(3)

is to be administered by the standards body--to administer

the exam; and

(e) any other function prescribed by this Act.

Legislative instruments

(2) The standards body must, by legislative instrument:

(a) do any or all of the following in one or more determinations:

(i) approve bachelor or higher degrees, or equivalent

qualifications, for the purposes of

paragraph 921B(2)(a);

(ii) approve an exam for the purposes of

subsection 921B(3);

(iii) set requirements for work and training for the purposes

of subsection 921B(4);

(iv) set requirements for continuing professional

development for the purposes of subsection 921B(5) in

relation to the CPD year of a financial services licensee,

the period mentioned in subsection 1546E(5), or any

other period determined by the standards body;

(v) specify a word or expression to refer to a provisional

relevant provider; and

(b) make a Code of Ethics for the purposes of section 921E.

(3) The standards body may, by legislative instrument, in one or more

determinations, modify the operation of a provision in this Part in

relation to a period determined by the standards body under

subparagraph (2)(a)(iv).

(4) A determination made under subsection (3) has effect according to

its terms, despite any other provision of this Act.

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(5) The standards body may, by legislative instrument, do either or

both of the following in one or more determinations:

(a) provide further in relation to the requirements set out in

section 921F (requirements relating to provisional relevant

providers);

(b) set other requirements in relation to a person who is a

provisional relevant provider.

Consultation

(6) Before making a legislative instrument under subsection (2), (3) or

(5), or when reviewing a legislative instrument under

paragraph (1)(b), the standards body must consult:

(a) financial services licensees; and

(b) relevant providers; and

and

(d) professional associations; and

(e) ASIC and the Department; and

(f) any other person or body that the standards body considers it

appropriate to consult.

(7) Without limiting subsection (6), the standards body is taken to

have consulted the persons and bodies mentioned in that subsection

if, on its website, the standards body:

(a) before making a legislative instrument under subsection (2),

(3) or (5):

(i) makes the proposed legislative instrument, or a

description of the content of the proposed legislative

instrument, available; and

(ii) invites those persons and bodies to comment on the

proposed legislative instrument; or

(b) when reviewing a legislative instrument under

paragraph (1)(b)--invites those persons and bodies to

comment on the legislative instrument.

(8) A failure to comply with subsection (6) does not affect the validity

or enforceability of a legislative instrument made under

subsection (2), (3) or (5).

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Fees

(9) The standards body may charge fees for things done in performing

its functions.

Note:

For the treatment of legislative instruments made under this section

when the declaration of a body corporate to be the standards body is

revoked, see section 921Y.

921V Approval of foreign qualifications

Application for approval

(1) A person who has completed a foreign qualification may apply to

the standards body for approval of the foreign qualification.

(2) An application under subsection (1) must be in a form approved, in

writing, by the standards body.

Approval or refusal to approve

(3) The standards body must either:

(a) approve the foreign qualification in accordance with

subsection (4); or

(b) refuse to approve the foreign qualification.

(4) The standards body may approve the foreign qualification only if:

(a) the standards body is satisfied that the foreign qualification

gives the person qualifications equivalent to a degree or

qualification approved by the standards body for the purposes

of paragraph 921B(2)(a); or

(b) both of the following apply:

(i) the standards body specifies one or more courses to be

completed by the person under subsection (5) of this

section;

(ii) the person completes each of those courses.

(5) The standards body may specify one or more courses for the

purposes of paragraph (4)(b) only if the standards body is satisfied

that (together with the person's foreign qualification) the course or

courses will give the person qualifications equivalent to a degree or

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qualification approved by the standards body for the purposes of

paragraph 921B(2)(a).

When approval takes effect

(6) An approval under paragraph (3)(a) comes into force:

(a) if the standards body specifies one or more courses to be

completed by the person under subsection (5)--when the

person has completed all of those courses; or

(b) otherwise--when it is given.

Review of decision

(7) A person may apply to the Tribunal for review of:

(a) a decision by the standards body under paragraph (3)(b) to

refuse to approve the person's foreign qualification; or

(b) a decision by the standards body under subsection (5) to

specify one or more courses to be completed by the person.

Notice of reviewable decision and review rights

(8) Section 1317D applies in relation to a decision mentioned in

paragraph (7)(a) or (b) of this section as if:

(a) the standards body were a decision maker for the purposes of

section 1317D; and

(b) the decision were a decision to which section 1317B applied.

921W Commencement of Code of Ethics and amendments of Code

of Ethics

(1) The Code of Ethics must not commence earlier than 30 days after

the Code is registered under the Legislation Act 2003.

(2) An amendment of the Code of Ethics must not commence earlier

than 30 days after the amendment is registered under the

Legislation Act 2003.

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Subdivision B--Declaration of the standards body

921X Minister to declare a body corporate to be the standards body

(1) The Minister may (subject to subsection (2)), by notifiable

instrument, declare a body corporate to be the standards body.

(2) The Minister may make a declaration under subsection (1) only if

the following requirements are met:

(a) the body is a company limited by guarantee;

(b) the Minister is satisfied that the body is likely to comply with

its obligations under this Act and other laws of the

Commonwealth;

(i) the functions of the body mentioned in section 921U;

(ii) the body must not be operated for profit;

(iii) the body must have 9 directors;

(iv) at least 3 directors (excluding the chair of the board of

directors) must have experience in carrying on a

financial services business or providing a financial

service;

(v) at least 3 directors (excluding the chair of the board of

directors) must have experience in representing

consumers of financial services;

(vi) at least one director (excluding the chair of the board of

directors) must have experience in the field of ethics;

(vii) at least one director (excluding the chair of the board of

directors) must have experience in designing, or the

requirements of, educational courses or qualifications;

(viii) a director must not hold a managerial or executive office

in a professional association or association representing

consumers of financial services;

(ix) a director must not represent any professional

association, or association representing consumers of

financial services, to which the director belongs;

(x) the Minister must appoint each director;

(xi) a director may resign his or her appointment by giving

the Minister, and the body, a written resignation;

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(xii) the resignation takes effect on the day it has been

received by both the Minister and the body or, if a later

day is specified in the resignation, on that later day.

(3) The declaration must specify the time at which it takes effect.

(4) The Minister must table the declaration in each House of the

Parliament as soon as practicable.

921Y Minister may revoke declaration under section 921X

(1) The Minister may, at any time, by notifiable instrument, revoke a

declaration under section 921X.

(2) The revocation must specify:

(a) the time at which it takes effect; and

(b) which legislative instruments made by the standards body

under subsection 921U(2), (3) or (5) continue in force, and

which are taken to be revoked at that time; and

paragraph 921V(3)(a) continue in force (or are to come into

and continue in force), and which are taken to be revoked at

that time.

(3) A revocation under subsection (1) that specifies that a legislative

instrument, or an approval, is taken to be revoked at a particular

time has effect according to its terms.

Tabling of revocation

(4) The Minister must table the revocation in each House of the

Parliament as soon as practicable.

Performance by Minister of certain functions of standards body

when no declaration is in force

(5) If no declaration under section 921X is in force at a particular time,

the Minister may make a legislative instrument or decision as if the

Minister were performing the functions of the standards body

under paragraph 921U(1)(a) or (c).

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Instruments and decisions made by Minister etc.

(6) If a declaration under section 921X comes into force after the

Minister has made a legislative instrument or decision for the

purposes of subsection (5) of this section, the standards body may

vary or revoke the legislative instrument or decision.

Relationship with Acts Interpretation Act 1901

(7) This section does not limit the operation of subsection 33(3) of the

Acts Interpretation Act 1901.

Subdivision C--Other provisions relating to the standards body

921Z Modification of the standards body's constitution

(1) As soon as practicable after a significant modification of the

standards body's constitution takes effect, the standards body must

notify the Minister in writing of the modification.

(2) The notice must:

(a) set out the text of the modification; and

(b) specify the date on which the modification takes effect; and

(3) If no notice is lodged with the Minister within 21 days after the

modification takes effect, the modification ceases to have effect.

(4) A notice made under this section is not a legislative instrument.

921ZA Disallowance of modifications of the standards body's

constitution

(1) Within 28 days after receiving a notice under section 921Z, the

Minister may disallow all or a specified part of the modification of

the standards body's constitution.

(2) As soon as practicable after all or part of a modification is

disallowed, the Minister must give notice of the disallowance to

the standards body. The modification ceases to have effect, to the

extent of the disallowance, when the standards body receives the

notice.

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921ZB Minister may direct the standards body to do certain things

(1) The Minister may give a written direction to the standards body if

the Minister considers that the standards body is not complying

with its obligations under this Act or under any arrangement it has

with the Commonwealth.

(2) The standards body must comply with the direction.

(3) The Minister may, at any time, vary or revoke a direction.

(4) Despite paragraph (b) in the definition of director in section 9, the

Minister is not a director of the standards body.

921ZC Annual report

As soon as practicable after the end of a financial year, the

standards body must:

(a) publish on its website the annual report for the financial year

prepared under Chapter 2M; and

(b) give a copy of the report to the Minister.

13 Before section 922A

Insert:

Subdivision A--Registers generally

14 At the end of subsection 922A(2)

Add:

Note:

The Register of Relevant Providers is maintained under Subdivision C

of this Division.

15 Section 922B

Repeal the section, substitute:

922B Fees for searching registers

The regulations may prescribe the fees that a person must pay to

ASIC to do the things mentioned in section 1274A in relation to a

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Providers.

Note:

Section 1274A provides that ASIC may permit a person to search

certain registers kept by ASIC for prescribed information.

16 At the end of Division 9 of Part 7.6

Add:

Subdivision B--Notice requirements relating to the Register of

Relevant Providers

922D Obligation to notify ASIC about a person who becomes a

relevant provider

Notice to include details about relevant provider

(1) A notice must be lodged under this section, in accordance with

section 922L, if a person becomes a relevant provider.

Note:

A financial services licensee required to lodge a notice under this

section may obtain information from a relevant provider under

section 922N.

Content of notice

(2) The notice must include:

(a) for a relevant provider who is a financial services licensee--

the information in section 922E; or

(b) for a relevant provider who is not a financial services

licensee--the information in section 922F.

922E Information about a relevant provider who is a financial

services licensee

(1) For the purposes of paragraph 922D(2)(a), the notice must include

the following:

(a) the relevant provider's name;

(b) the address of the relevant provider's principal place of

business;

subsection 913C(1);

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(d) the year in which the relevant provider first provided

personal advice to retail clients in relation to relevant

financial products in accordance with the law (including the

law of a State or Territory);

(e) if applicable, the ABN of the relevant provider;

(f) information about both of the following:

(i) the relevant financial products in relation to which the

relevant provider is authorised to provide personal

advice to retail clients;

(ii) whether the relevant provider is authorised to provide

class of product advice in relation to some or all of

those products;

(g) the recent advising history of the relevant provider for the 5

years ending immediately before the time the notice is

lodged;

(h) information about both of the following:

(i) the educational qualifications of, and any training

courses completed by, the relevant provider, to the

extent that the qualifications and training courses are

relevant to the provision of financial services;

(ii) the relevant provider's membership (if any) of a

professional association if an approval is in force under

section 921K in relation to a compliance scheme

monitored and enforced by the association;

(i) the name of the compliance scheme that is to cover the

relevant provider.

Note:

For the meaning of recent advising history, see section 922G.

Educational qualifications and memberships

(2) For the purposes of subparagraph (1)(h)(i), if a relevant provider

has more than 5 educational qualifications or has completed more

than 5 training courses, the notice must include the 5 qualifications

or training courses that the person lodging the notice believes, on

reasonable grounds, are most relevant to the provision of financial

services.

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922F Information about a relevant provider who is not a financial

services licensee

(1) For the purposes of paragraph 922D(2)(b), the notice must include

the following:

(a) the relevant provider's name;

(b) the address of the relevant provider's principal place of

business;

(d) the name of the financial services licensee on whose behalf

the relevant provider is authorised to provide personal advice

to retail clients in relation to relevant financial products;

(e) the licence number given to that licensee under

subsection 913C(1);

(f) if the relevant provider is a provisional relevant provider--

the fact that the relevant provider is a provisional relevant

provider;

(g) if the relevant provider is a provisional relevant provider--

the day the relevant provider began undertaking work and

training in accordance with subsection 921B(4);

(h) except in relation to provisional relevant providers--the year

in which the relevant provider first provided personal advice

to retail clients in relation to relevant financial products in

accordance with the law (including the law of a State or

Territory);

(i) if the relevant provider is a relevant provider as a result of

section 916B--each of the following:

(i) the name of the authorised representative who

authorised the relevant provider under that section;

(ii) the number allocated to the authorised representative by

ASIC;

(j) if applicable, the ABN of any of the following:

(i) the relevant provider;

(ii) the licensee referred to in paragraph (d);

(iii) the authorised representative referred to in paragraph (i);

(k) details of both of the following:

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(i) the relevant financial products in relation to which the

relevant provider is authorised to provide personal

advice to retail clients;

(ii) whether the relevant provider is authorised to provide

class of product advice in relation to some or all of

those products;

(l) the recent advising history of the relevant provider for the 5

years ending immediately before the time the notice is

lodged;

(m) information about both of the following:

(i) the educational qualifications of, and any training

courses completed by, the relevant provider, to the

extent that the qualifications and training courses are

relevant to the provision of financial services;

(ii) the relevant provider's membership (if any) of a

professional association if an approval is in force under

section 921K in relation to a compliance scheme

monitored and enforced by the association;

(n) the name of the compliance scheme that is to cover the

relevant provider.

Note:

For the meaning of recent advising history, see section 922G.

Educational qualifications and memberships

(2) For the purposes of subparagraph (1)(m)(i), if a relevant provider

has more than 5 educational qualifications or has completed more

than 5 training courses, the notice must include the 5 qualifications

or training courses that the person lodging the notice believes, on

reasonable grounds, are most relevant to the provision of financial

services.

Information already registered

(3) The notice does not need to include the information referred to in

paragraph (1)(h), (l) or (m) if:

(a) the person required under subsection 922L(4) to cause the

notice to be lodged believes on reasonable grounds that the

information has previously been lodged; or

(b) the information is already entered on the Register of Relevant

Providers.

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Provisional relevant providers

(4) The notice does not need to include the information referred to in

paragraph (1)(k) in relation to a provisional relevant provider if

that information is not known at the time the notice relating to the

provisional relevant provider is lodged by the licensee.

Note:

A notice must be lodged under section 922H once this information is

known.

922G Meaning of recent advising history

The recent advising history of a relevant provider is the following

information:

(a) for a relevant provider who is or was a financial services

licensee authorised to provide personal advice to retail clients

in relation to relevant financial products--each period during

which the relevant provider was such a licensee;

(b) for a relevant provider who is or was authorised to provide

personal advice to retail clients, on behalf of one or more

financial services licensees, in relation to relevant financial

products--the following information:

(i) the name of each licensee;

(ii) if the relevant provider is or was a relevant provider as a

result of section 916B--the name of each authorised

representative who authorised the relevant provider

under that section;

(iii) each period during which the relevant provider was

authorised by each licensee or each authorised

representative to provide such advice.

Note:

If a relevant provider is covered by paragraphs (a) and (b) of this

section, the relevant provider's recent advising history includes all the

information required under those paragraphs.

922H Ongoing obligation to notify ASIC when there is a change in a

matter for a relevant provider

(1) A notice must be lodged under this section, in accordance with

section 922L, if:

(a) there is a change in a matter, particulars of which are entered

for a relevant provider in the Register of Relevant Providers

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(other than a change that is a direct consequence of an act by

ASIC); or

(b) both of the following apply:

(i) a notice is lodged under section 922D in relation to a

relevant provider by a financial services licensee

without including the information referred to in

paragraph 922F(1)(k);

(ii) the information becomes known to the licensee after the

notice is lodged.

Note:

For paragraph (1)(a) of this section, an example of a change in a

matter would be a person ceasing to be a relevant provider. Another

example would be a change in the compliance scheme that covers a

relevant provider.

(2) The notice must include the following information:

(a) the new particulars or information to be entered in the

(b) the relevant provider's name;

section 922R.

922HA Obligation to notify ASIC of financial services licensee's

CPD year

(1) A notice must be lodged under this subsection, in accordance with

section 922L, if ASIC grants an applicant an Australian financial

services licence that covers the provision of personal advice to

retail clients in relation to relevant financial products.

(2) A notice lodged under subsection (1) must include the day on

which the licensee's CPD year is to begin.

(3) A notice must be lodged under this subsection, in accordance with

section 922L, if a financial services licensee:

(a) has previously lodged a notice under subsection (1) or this

subsection specifying a particular day of the year; and

(b) decides that the licensee's CPD year is to begin on another

day of the year; and

subsection in the 12-month period preceding that decision.

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(4) A notice lodged under subsection (3) must include the day on

which the licensee's CPD year is to begin.

922HB Obligation to notify ASIC of non-compliance with continuing

professional development standard

(1) A notice must be lodged under this section, in accordance with

section 922L, in relation to a person if, at the end of a financial

services licensee's CPD year:

(a) the person:

(i) is the licensee; or

(ii) is authorised to provide personal advice to retail clients,

on behalf of the licensee, in relation to relevant financial

products; and

(b) the person is a relevant provider; and

during the licensee's CPD year.

Note 1:

A financial services licensee may obtain information from a relevant

provider under section 922N for the purposes of determining whether

to lodge a notice under this section.

Note 2:

Subsection 921D(1) requires certain relevant providers to meet the

continuing professional development standard in subsection 921B(5).

(2) The notice must state that the relevant provider has not complied

with section 921D during the licensee's CPD year.

922HC Requirement to retain information

(1) A financial services licensee must retain evidence of the continuing

professional development undertaken during the licensee's CPD

year by:

(a) if the licensee is a relevant provider--the licensee; and

(b) if a relevant provider is authorised to provide personal advice

to retail clients, on behalf of the licensee, in relation to

relevant financial products--the relevant provider.

(2) The evidence must be retained for 12 months after the end of the

CPD year.

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Offence

(3) A person commits an offence if:

(a) the person is required to retain evidence under this section;

and

(b) the person fails to retain the evidence in accordance with this

section.

Penalty: 50 penalty units.

922HD Obligation to notify ASIC in relation to failures to comply

with the Code of Ethics

(1) A notice must be lodged under this subsection, in accordance with

section 922L, if:

(a) a monitoring body for a compliance scheme determines

under subsection 921L(1) that a relevant provider covered by

the scheme has failed to comply with the Code of Ethics; or

(b) a sanction is imposed on a relevant provider covered by a

compliance scheme in relation to a failure to comply with the

Code of Ethics by the relevant provider.

(2) The notice must include the following information:

(a) if the relevant provider is a financial services licensee--the

name of the licensee;

(b) if the relevant provider is not a financial services licensee:

(i) the name of the relevant provider; and

(ii) the name of the financial services licensee on whose

behalf the relevant provider is authorised to provide

personal advice to retail clients in relation to relevant

financial products;

(d) if paragraph (1)(b) applies--details of the sanction imposed.

(3) If, in relation to the same failure to comply, the events mentioned

in paragraphs (1)(a) and (b) occur within 30 business days of one

another:

(a) a single notice may be lodged under subsection (1) within 30

business days of the later of those events; and

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(b) only one notice is taken to be required to be caused to be

lodged for the purposes of subsection 922M(1).

922J Obligation to notify ASIC about a person who starts to have

control of a body corporate licensee

(1) A notice must be lodged under this section, in accordance with

section 922L, if a person starts to have control of a body corporate

licensee.

Note:

Subsection 922P(3) provides that a notice is not required to be lodged

when a person starts and then ceases to have control of a body

corporate licensee within 30 business days.

(2) The notice must include the following information:

(a) the name of the licensee;

(b) the licence number given to the licensee under

subsection 913C(1);

licensee;

(d) the day the person starts to have control of the licensee.

922K Obligation to notify ASIC about a person who ceases to have

control of a body corporate licensee

(1) A notice must be lodged under this section, in accordance with

section 922L, if a person ceases to have control of a body corporate

licensee.

Note:

Subsection 922P(3) provides that a notice is not required to be lodged

when a person starts and then ceases to have control of a body

corporate licensee within 30 business days.

(2) The notice must include the following information:

(a) the name of the licensee;

(b) the licence number given to the licensee under

subsection 913C(1);

licensee;

(d) the day the person ceases to have control of the licensee.

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922L Requirement for notice to be lodged

Notice in prescribed form

(1) A notice under a notice provision must be in the prescribed form.

Note 1:

Under section 350, a document that this Act requires to be lodged with

ASIC in a prescribed form must:

(a) if a form for the document is prescribed in the regulations--be in

that prescribed form; and

(b) if a form for the document is not prescribed in the regulations but

ASIC has approved a form for the document--be in that

approved form.

Note 2:

The prescribed form may deal with information that is required under

more than one section of this Act.

When notice must be lodged

(2) A notice under a notice provision must be lodged within 30

business days of the following day:

(a) if the notice is lodged under subsection 922HA(1)--the day

ASIC grants the Australian financial services licence

mentioned in that subsection;

(b) if the notice is lodged under subsection 922HA(3)--the day

the financial services licensee mentioned in that subsection

decides that the licensee's CPD year is to begin on another

day of the year;

day of the CPD year of the financial services licensee

mentioned in that subsection;

(d) if the notice is lodged under subsection 922HD(1)--(subject

to subsection 922HD(3)) the day the monitoring body

mentioned in subsection 922HD(1) determines under

subsection 921L(1) that a relevant provider has failed to

comply with the Code of Ethics or a sanction is imposed;

(e) if the notice is lodged under any other notice provision--the

day of the event mentioned in subsection (1) of the notice

provision.

(3) The information contained in the notice must be accurate as at the

day mentioned in paragraph (2)(a), (b), (c), (d) or (e).

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Who must cause notice to be lodged

(4) The following person must cause a notice under section 922D,

922H or 922HB to be lodged in relation to a relevant provider:

(a) if the relevant provider is a financial services licensee--the

licensee;

(b) otherwise--the financial services licensee on whose behalf

the relevant provider is authorised to provide personal advice

to retail clients in relation to relevant financial products.

(5) A notice under subsection 922HA(1) or (3) must be lodged by the

financial services licensee mentioned in that section.

(6) A notice under section 922HD must be lodged by the monitoring

body mentioned in subsection 922HD(1).

(7) A notice under section 922J or 922K relating to a person who starts

or ceases to have control of a body corporate licensee must be

lodged by the licensee.

922M Offence for failing to comply with obligation to notify ASIC

(1) A person commits an offence if:

(a) the person is required to cause a notice to be lodged under a

notice provision; and

(b) the person fails to cause the notice to be lodged in accordance

with that provision.

Note:

A notice must be lodged in accordance with section 922L in order to

be lodged in accordance with a notice provision (see subsection (1) of

the notice provision).

Penalty: 50 penalty units.

(2) However, subsection (1) does not apply if:

(a) the person fails to cause the notice to be lodged in accordance

with section 922D; and

(b) the only reason the person fails to cause the notice to be

lodged in accordance with that section is because the

information referred to in paragraph 922F(1)(h), (l) or (m) is

not included in the notice; and

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include that information.

Note:

A defendant bears an evidential burden in relation to the matter in

subsection (2) (see subsection 13.3(3) of the Criminal Code).

(3) Subsection 4K(2) of the Crimes Act 1914 does not apply to

subsection (1) of this section.

Note:

A person may commit an offence if the person knowingly gives false

or misleading information (see section 1308 of this Act and

section 137.1 of the Criminal Code).

922N Obligation for relevant providers to provide information to

financial services licensees

Information about relevant provider

(1) A person must provide information to a financial services licensee

in accordance with this section if:

(a) the person is a relevant provider; and

(b) the person has been authorised to provide personal advice to

retail clients, on behalf of the licensee, in relation to relevant

financial products; and

so that the licensee can:

(i) comply with its obligation to lodge a notice relating to

the person in accordance with section 922D; or

(ii) comply with its obligation to lodge, under section 922H,

a notice relating to the person for the purposes of

section 921H; or

(iii) determine whether the licensee has an obligation to

lodge a notice under section 922HB.

Note:

A person may commit an offence if the person knowingly gives false

or misleading information (see section 1308 of this Act and

section 137.1 of the Criminal Code).

When information must be given

(2) The information must be given to the licensee within a period that

allows the licensee to comply with the obligation referred to in

paragraph (1)(c).

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922P Change in matter within 30 business days

(1) Notices must be given under sections 922D, 922H and 922HD in

relation to a person who was a relevant provider even if the person

ceases to be a relevant provider before a notice has been lodged

under section 922D.

(2) A notice is not required to be given under section 922HB in

relation to a person if:

(a) the person was a relevant provider at the end of a financial

services licensee's CPD year; and

(b) the person was authorised at that time to provide personal

advice to retail clients, on behalf of the licensee, in relation to

relevant financial products; and

days of becoming a relevant provider.

(3) A notice is not required to be given under sections 922J and 922K

in relation to a person who starts or ceases to have control of a

body corporate licensee if the person ceases to have control of the

licensee within 30 business days of starting to have control of the

licensee.

Subdivision C--Register of Relevant Providers

922Q Register of Relevant Providers

Register to include details of relevant providers

(1) ASIC must enter details on a Register of Relevant Providers in

respect of each person who is or was a relevant provider.

Contents of Register

(2) The details that must be entered on the Register include the

following:

(a) the relevant provider's name;

(b) the relevant provider's principal place of business;

the relevant provider is or was authorised to provide personal

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advice to retail clients in relation to relevant financial

products;

(d) if applicable, each person who has control of the licensee;

(e) the relevant provider's date and place of birth;

(f) the licence number given under subsection 913C(1) to the

relevant provider and each licensee referred to in

paragraph (c);

(g) if applicable, the number given under section 922R;

(h) if the relevant provider is a relevant provider as a result of

section 916B:

(i) the name of the authorised representative who

authorised the relevant provider under that section; and

(ii) the number allocated to the authorised representative by

ASIC;

(i) the recent advising history of the relevant provider;

(j) if the relevant provider is a provisional relevant provider:

(i) the fact that the relevant provider is a provisional

relevant provider; and

(ii) the day the relevant provider began undertaking work

and training in accordance with subsection 921B(4); and

(iii) a statement that the relevant provider is required to be

supervised in accordance with Subdivision C of

Division 8A;

(k) except in relation to provisional relevant providers--the year

in which the relevant provider first provided personal advice

to retail clients in relation to relevant financial products in

accordance with the law (including the law of a State or

Territory);

(l) whether the person is currently, or has ceased to be, a

relevant provider;

(m) if a financial services licensee has lodged a notice under

section 922HB in relation to the relevant provider--that the

relevant provider did not comply with section 921D during

the licensee's CPD year;

(n) if the relevant provider has been disqualified from managing

corporations--information contained on the register

established under section 1274AA;

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(o) if the relevant provider has been banned or disqualified under

section 80 or 86 of the National Consumer Credit Protection

Act 2009--information about that banning or

disqualification;

(p) if the relevant provider has been banned, disqualified or

suspended under Division 8 of Part 7.6, or under

section 130F of the Superannuation Industry (Supervision)

Act 1993--information about that banning, disqualification

or suspension;

(q) if the relevant provider has given an undertaking under either

or both section 93AA of the ASIC Act and section 322 of the

National Consumer Credit Protection Act 2009--information

about that undertaking;

(r) if a monitoring body for a compliance scheme determines

under subsection 921L(1) that the relevant provider who is

covered by the scheme has failed to comply with the Code of

Ethics:

(i) details of the failure to comply; and

(ii) details of any sanction imposed on the relevant provider

in relation to the failure to comply;

(s) if applicable, information about both of the following:

(i) the relevant financial products in relation to which the

relevant provider is authorised to provide personal

advice to retail clients;

(ii) whether the relevant provider is authorised to provide

class of product advice in relation to some or all of

those products;

(t) if applicable, the ABN of any of the following:

(i) the relevant provider;

(ii) each licensee referred to in paragraph (c);

(iii) if applicable, the authorised representative referred to in

paragraph (h);

(u) information about both of the following:

(i) the educational qualifications of, and any training

courses completed by, the relevant provider (but not

courses completed for the purposes of

subsection 921B(5)), to the extent that the qualifications

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and training courses are relevant to the provision of

financial services;

(ii) the relevant provider's membership (if any) of a

professional association if an approval is in force under

section 921K in relation to a compliance scheme

monitored and enforced by the association;

(v) the name of the compliance scheme that is to cover the

relevant provider;

(w) any other information that ASIC believes should be included

in the Register that relates to the provision of financial

services by the relevant provider.

Note 1:

Not all of the Register's contents are publicly available. However,

section 1274A provides that ASIC may permit a person to search

certain registers kept by ASIC for prescribed information.

Note 2:

Information in paragraph (2)(s) may not be known in relation to a

provisional relevant provider (see subsection 922F(4)).

922R Relevant provider number

ASIC may give a unique number (or any unique combination of

numbers, characters, symbols and letters) to a person who is a

relevant provider.

922S Correcting the Register

ASIC may correct any error in, or omission from, the Register of

Relevant Providers.

Note:

Australian Privacy Principle 13 applies to ASIC and requires it to take

reasonable steps to correct personal information that is wrong or

misleading so that the information is accurate, up to date, complete,

relevant and not misleading (see Schedule 1 to the Privacy Act 1988).

17 At the end of Division 10 of Part 7.6

Add:

923C Restriction on use of terms "financial adviser" and "financial

planner"

(1) A person contravenes this subsection if:

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(a) the person carries on a financial services business or provides

a financial service (whether or not on behalf of another

person); and

(b) the person assumes or uses, in this jurisdiction, a restricted

word or expression in relation to the service; and

(i) the person is not a relevant provider;

(ii) the person is a provisional relevant provider;

(iii) the person is a limited-service time-sharing adviser.

Note 1:

For the meanings of restricted word or expression and assume or use,

see subsections (8) and (9) of this section.

Note 2:

A contravention of this subsection is an offence (see

subsection 1311(1)).

(2) A person (the first person) contravenes this subsection if:

(a) the first person carries on a financial services business or

provides a financial service; and

(b) another person provides a financial service on behalf of the

person; and

restricted word or expression in relation to the service; and

(d) any of the following apply:

(i) the first person is not a relevant provider;

(ii) the first person is a provisional relevant provider;

(iii) the first person is a limited-service time-sharing adviser.

Note 1:

For the meanings of restricted word or expression and assume or use,

see subsections (8) and (9) of this section.

Note 2:

A contravention of this subsection is an offence (see

subsection 1311(1)).

Advice to wholesale clients

(3) It is not a contravention of subsection (1) for a person to assume or

use a restricted word or expression if:

(a) the person provides advice to wholesale clients; and

(b) the person assumes or uses the restricted word or expression

only in relation to that advice.

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Note:

A defendant bears an evidential burden in relation to the matters in

subsection (3). See subsection 13.3(3) of the Criminal Code.

(4) It is not a contravention of subsection (2) for a person to assume or

use a restricted word or expression if:

(a) another person (the adviser) provides a financial service on

behalf of the person; and

(b) the adviser provides advice to wholesale clients; and

only in relation to that advice.

Note:

A defendant bears an evidential burden in relation to the matters in

subsection (4). See subsection 13.3(3) of the Criminal Code.

Advice as employee or director

(5) It is not a contravention of subsection (1) for a person to assume or

use a restricted word or expression if:

(a) the person is an employee or director of a body; and

(b) the person provides advice to the body; and

only in relation to that advice.

Note:

A defendant bears an evidential burden in relation to the matters in

subsection (5). See subsection 13.3(3) of the Criminal Code.

(6) It is not a contravention of subsection (2) for a person to assume or

use a restricted word or expression if:

(a) another person (the adviser) is an employee or director of a

body; and

(b) the adviser provides advice to the body; and

only in relation to that advice.

Note:

A defendant bears an evidential burden in relation to the matters in

subsection (6). See subsection 13.3(3) of the Criminal Code.

Continuing contravention

(7) If a person assumes or uses a word or expression in circumstances

that give rise to the person committing an offence under

subsection (1) or (2), the person commits the offence in respect of:

(a) the first day on which the offence is committed; and

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(b) each subsequent day (if any) on which the circumstances that

gave rise to the person committing the offence continue

(including the day of conviction for any such offence or any

later day).

References to restricted word or expression

(8) In this section:

(a) a reference to a restricted word or expression is a reference

to:

(i) the expression financial adviser or financial planner;

(ii) any other word or expression specified in the

regulations as a restricted word or expression for the

purposes of this section; or

(iii) any other word or expression (whether or not in

English) that is of like import to a word or expression

covered by any of the previous subparagraphs; and

(b) a reference to a restricted word or expression being assumed

or used includes a reference to the restricted word or

expression being assumed or used:

(i) as part of another word or expression; or

(ii) in combination with other words, letters or other

symbols.

(9) However, a reference in this section to a restricted word or

expression does not include a reference to a word or expression

mentioned in paragraph (8)(a) if:

(a) the word or expression mentioned in that paragraph is

assumed or used in relation to a provisional relevant

provider; and

(b) the word or expression is assumed or used as part of a word

or expression specified by the standards body for the

purposes of subparagraph 921U(2)(a)(v).

Contravention does not affect compensation arrangements

(10) To avoid doubt, this section does not affect the obligation of a

financial services licensee to have arrangements in place under

section 912B.

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Note:

Section 912B requires financial services licensees to have in place

compensation arrangements if the licensee provides financial services

to retail clients.

18 Paragraph 926A(6)(b)

After "Part 10.2", insert "or 10.23A".

19 Subsection 1274A(2)

After "prescribed register", insert "other than the Register of Relevant

Providers".

20 Schedule 3 (after table item 269A)

Insert:

269AAA

Subsection 923C(1)

10 penalty units for each day, or part

of a day, in respect of which the

offence is committed.

269AAB

Subsection 923C(2)

10 penalty units for each day, or part

of a day, in respect of which the

offence is committed.

Tax Agent Services Act 2009

21 Subparagraph 60-125(8)(c)(iv)

Omit "and".

22 At the end of paragraph 60-125(8)(c)

Add:

(v) if the decision or finding concerns a person

covered by

compliance scheme who provides a tax (financial)

advice service--the

monitoring body for the scheme;

and

23 At the end of paragraph 60-125(8)(d)

Add:

; and (iv) if subparagraph (c)(v) applies--the monitoring body for

the relevant compliance scheme.

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24 Before section 70-35

Insert:

70-34 Power to request information from monitoring bodies

(1) This section applies if a person:

(a) provides a

tax (financial) advice service; and

(b) is

covered by a

compliance scheme.

(2) For the purposes of performing its functions, or exercising its

powers, the Board may, by notice, request the

monitoring body for

the

compliance scheme to give the Board:

(a) information relating to compliance by the person with the

Code of Ethics under the scheme; or

(b) any other information relating to the scheme; or

Code of Professional Conduct.

Note 1:

Failure to give the information is an offence: see section 8C of the

Taxation Administration Act 1953.

Note 2:

This subsection constitutes an authorisation for the purposes of other

laws, such as paragraph 6.2(b) of Australian Privacy Principle 6.

(3) The Board's request must:

(a) be in writing; and

(b) specify the period within which the

monitoring body must

comply with the request.

The period specified under paragraph (b) must be at least 14 days

after the date of the request.

25 After subsection 70-40(3A)

Insert:

Disclosures to monitoring bodies for compliance schemes

(3AA) Subsection 70-35(1) does not apply if the record or disclosure is to

monitoring body for a

compliance scheme for the purpose of

the monitoring body monitoring or enforcing compliance with the

Code of Ethics under the scheme.

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Note:

A defendant bears an evidential burden in relation to the matters in

subsection (3AA): see subsection 13.3(3) of the Criminal Code.

26 Subsection 90-1(1)

Insert:

Code of Ethics has the same meaning as in Part 7.6 of the

Corporations Act 2001.

compliance scheme has the same meaning as in Part 7.6 of the

Corporations Act 2001.

covers, in relation to a compliance scheme, has the same meaning

as in Part 7.6 of the Corporations Act 2001.

Note:

See also section 18A of the Acts Interpretation Act 1901 (parts of

speech and grammatical forms).

monitoring body for a compliance scheme has the same meaning

as in Part 7.6 of the Corporations Act 2001.

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Part 2--Application of amendments

Corporations Act 2001

27 After Part 10.23 of Chapter 10

Insert:

Part 10.23A--Transitional provisions relating to

the Corporations Amendment (Professional

Standards of Financial Advisers) Act 2016

Division 1--Definitions

1546A Definitions

In this Part:

amending Act means the Corporations Amendment (Professional

Standards of Financial Advisers) Act 2016.

commencement means the start of the day Part 1 of Schedule 1 to

the amending Act commences.

education and training standards has the meaning given by

section 921B.

existing provider means:

(a) a person who:

(i) is a relevant provider at any time between 1 January

2016 and 1 January 2019 (except a person who has

ceased to be a relevant provider under

subsection 1546B(4) or (5)); and

(ii) is not banned, disqualified or suspended under

Division 8 of Part 7.6 on 1 January 2019; or

(b) a person who:

(i) at any time between 1 January 2016 and 1 January

2019, provides personal advice in a foreign country to

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retail clients in relation to relevant financial products;

and

(ii) is not prohibited under the law of the foreign country

from providing such advice on 1 January 2019.

foreign country includes a region, where:

(a) the region is a colony, territory or protectorate of a foreign

country; or

(b) the region is part of a foreign country; or

(d) a foreign country exercises jurisdiction or control over the

region; or

(e) a foreign country is responsible for the region's international

relations.

relevant financial products has the meaning given by

section 910A.

relevant provider has the meaning given by section 910A.

Division 2--Application and transitional provisions

1546B Existing providers to meet certain education and training

standards

Completion of qualifications

(1) An existing provider must have done either of the following by

1 January 2024:

(a) met the education and training standard in

subsection 921B(2);

(b) completed one or more courses determined by the standards

body to give the provider qualifications equivalent to that

standard.

Note:

The standard in subsection 921B(2) is that a person has completed a

bachelor or higher degree, or equivalent qualification, approved by the

standards body, or a foreign qualification approved by the standards

body.

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(2) To avoid doubt, an existing provider may meet the education and

training standard in subsection 921B(2), or complete one or more

courses in accordance with paragraph (1)(b) of this section, before

this section commences.

Exam

(3) An existing provider must have met the education and training

standard in subsection 921B(3) before 1 January 2021.

Note 1:

The standard in subsection 921B(3) is that a person has passed an

exam approved by the standards body.

Note 2:

ASIC must be notified when existing providers have passed the exam

(see section 1546Y).

Note 3:

An existing provider is not required to meet the standard in

subsection 921B(4), which is that a person has undertaken at least a

year of work and training that meets the requirements set by the

standards body.

Failing to meet the education and training standards

(4) If, at the start of 1 January 2024, a person who is an existing

provider, and a relevant provider at that time, fails to comply with

subsection (1), the person is taken for the purposes of this Act,

after that time, to have ceased to be a relevant provider.

(5) If, at the start of 1 January 2021, a person who is an existing

provider, and a relevant provider at that time, fails to comply with

subsection (3), the person is taken for the purposes of this Act,

after that time, to have ceased to be a relevant provider.

(6) Subsections (4) and (5) do not prevent the person again becoming a

relevant provider.

Standards body may determine courses

(7) The standards body may, by legislative instrument, determine

courses for the purposes of paragraph (1)(b).

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1546C Application of limitation on authorisation to provide personal

advice and offence

Limitation on authorisation to provide personal advice

(1) Section 921C, as inserted by the amending Act, applies in relation

to:

(a) any Australian financial services licence granted on or after

1 January 2019 to a person who is not a relevant provider

before that day; and

(b) any authorisation given on or after that day to a person who

is not a relevant provider before that day.

Note:

Section 921C provides that a person cannot be granted a licence, or be

authorised, to provide certain financial advice unless the person meets

certain conditions.

(2) Section 921C, as inserted by the amending Act, applies, on and

after 1 January 2024, in relation to a person who ceases to be a

relevant provider under subsection 1546B(4).

(3) Section 921C, as inserted by the amending Act, applies, on and

after 1 January 2021, in relation to a person who ceases to be a

relevant provider under subsection 1546B(5).

(4) Section 921C, as inserted by the amending Act, does not apply in

relation to a person who is an existing provider while the person

continues to be a relevant provider.

Restriction on use of terms "financial adviser" and "financial

planner"

(5) The following provisions, as inserted by the amending Act, apply

on and after 1 January 2019:

(a) section 923C;

(b) items 269AAA and 269AAB of the table in Schedule 3.

Note:

Those provisions relate to offences for using the terms "financial

adviser" and "financial planner".

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1546D Application of requirements relating to provisional relevant

providers

Section 921F, as inserted by the amending Act, applies in relation

to any authorisation given on or after 1 January 2019 to a person

who is not a relevant provider before that day.

Note:

Section 921F sets out the requirements in relation to a person who is a

provisional relevant provider.

1546E Application of continuing professional development standard

for relevant providers

(1) Sections 921D and 922HA, as inserted by the amending Act, apply

on and after 1 January 2019.

Note:

Section 921D provides that certain relevant providers must meet the

continuing professional development standard. Section 922HA

requires ASIC to be notified of the day on which a financial services

licensee's CPD year is to begin.

(2) Sections 922HB and 922HC, as inserted by the amending Act,

apply in relation to any CPD year of a financial services licensee

that begins on or after 1 January 2019.

Note:

Section 922HB requires ASIC to be notified if relevant providers do

not comply with the continuing professional development standard.

Section 922HC requires a financial services licensee to retain evidence

of the continuing professional development of relevant providers.

(3) Section 922N, as inserted by the amending Act, applies in relation

to a request made of a person on or after 1 January 2019 for the

purposes of subparagraph 922N(1)(c)(iii).

Note:

Among other things, section 922N allows a financial services licensee

to ask a person to provide information relating to whether the licensee

must lodge a notice under section 922HB.

(4) Subsection (5) applies if:

(a) the first CPD year of a financial services licensee commences

after 1 January 2019; and

(b) before the start of the licensee's first CPD year:

(i) the licensee is a relevant provider; or

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(ii) a relevant provider is authorised to provide personal

advice to retail clients, on behalf of the licensee, in

relation to relevant financial products.

(5) Sections 922HB, 922HC and 922Q, as inserted by the amending

Act, apply as if a reference in those sections to a financial services

licensee's CPD year included a reference to the period:

(a) beginning on the later of 1 January 2019 and:

(i) if subparagraph (4)(b)(i) applies--the day the licensee is

granted an Australian financial services licence that

covers the provision of personal advice to retail clients

in relation to relevant financial products; and

(ii) if subparagraph (4)(b)(ii) applies--the first day the

relevant provider is authorised to provide personal

advice to retail clients, on behalf of the licensee, in

relation to relevant financial products; and

(b) ending on the day before the licensee's first CPD year.

Note 1:

Among other things, section 922Q requires failures of relevant

providers to comply with the continuing education standard to be

entered on the Register.

Note 2:

The standards body may, under subparagraph 921U(2)(a)(iv), set

requirements for continuing professional development in relation to a

period mentioned in subsection (5) of this section, and, in one or more

determinations made under subsection 921U(3), modify the operation

of a provision in Part 7.6 in relation to such a period.

1546F Application of Code of Ethics to relevant providers

Sections 921E and 922HD, as inserted by the amending Act, apply

on and after 1 January 2020.

Note:

Section 921E requires a relevant provider to comply with the Code of

Ethics. Section 922HD requires ASIC to be notified of failures to

comply with the Code of Ethics.

1546G Application of obligations in relation to compliance schemes

(1) Section 921H, as inserted by the amending Act, applies on and

after 15 November 2019:

(a) in relation to a person who becomes a financial services

licensee on or after that day; and

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(b) for a person who becomes a financial services licensee before

that day:

(i) in relation to a person who becomes a relevant provider

on or after that day; and

(ii) in relation to a person who becomes a relevant provider

before that day as if subsection 921H(2) required the

scheme to cover the relevant provider by 1 January

2020.

Note:

Section 921H requires a financial services licensee to ensure that a

compliance scheme covers each of its relevant providers.

(2) Section 921J, as inserted by the amending Act, applies on and after

15 November 2019.

Note:

Section 921J sets out when a compliance scheme covers a relevant

provider.

(3) Sections 921K, 921Q, 921R and 921T, as inserted by the amending

Act, apply on and after the day this section commences.

Note:

Section 921K provides that a monitoring body for a compliance

scheme may apply to ASIC for approval of the scheme. Section 921Q

provides that ASIC may request information about a compliance

scheme from the monitoring body for the scheme. Section 921R

provides that a monitoring body may propose to modify a scheme in

certain circumstances. Section 921T requires a monitoring body to

notify ASIC of certain reductions in the body's resources or expertise.

(4) Sections 921L, 921M, 921N, 921P and 921S, as inserted by the

amending Act, apply on and after 1 January 2020.

Note:

Sections 921L to 921N include provisions about investigations by

monitoring bodies. Section 921P provides for compliance schemes to

be made publicly available. Section 921S provides for the review of

compliance schemes.

(5) Paragraphs 922E(1)(i) and 922F(1)(n), as inserted by the amending

Act, apply on and after 15 November 2019 in relation to notices

lodged under section 922D on or after that day.

Note:

Paragraphs 922E(1)(i) and 922F(1)(n) require notices lodged under

section 922D in relation to a relevant provider to include the name of

the compliance scheme that is to cover the relevant provider.

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1546H Application of obligation for standards body to publish

annual report

(1) Section 921ZC, as inserted by the amending Act, applies on and

after 1 July 2017.

(2) If the declaration of a body corporate to be the standards body

under section 921X takes effect at a time during a financial year,

the first annual report published by the standards body must cover

the period beginning at that time and ending at the end of the next

financial year as if that period were a financial year.

1546J Application of obligation to notify ASIC about a person who

becomes a relevant provider

Sections 922D, 922E and 922F, as inserted by the amending Act,

apply (subject to subsection 1546G(5) and sections 1546K to

1546N) in relation to a person who becomes a relevant provider if:

(a) the person becomes a relevant provider after commencement;

(b) both of the following apply:

(i) the person becomes a relevant provider before

commencement;

(ii) immediately before commencement, a notice has not

been lodged in accordance with section 922D, as

notionally inserted into this Act by Schedule 8D to the

Corporations Regulations 2001.

Note:

Section 922D requires ASIC to be notified if a person becomes a

relevant provider.

1546K Application of requirements relating to information about

relevant provider's principal place of business

Paragraphs 922E(1)(b) and 922F(1)(b), as inserted by the

amending Act, apply on and after 15 November 2019 in relation to

notices lodged under section 922D on or after that day.

Note:

Paragraphs 922E(1)(b) and 922F(1)(b) require notices lodged under

section 922D in relation to a relevant provider to include the address

of the relevant provider's principal place of business.

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1546L Application of requirements relating to information about

membership of professional associations where relevant

provider is licensee

Section 922E, as inserted by the amending Act, applies until the

start of 15 November 2019 as if paragraph 922E(1)(h) were

replaced with the following:

(h) information about both of the following:

(i) the educational qualifications of, and any training

courses completed by, the relevant provider;

(ii) the relevant provider's membership (if any) of

professional bodies;

to the extent that the qualifications, training courses or

memberships are relevant to the provision of financial

services (and if the relevant provider has more than 5

memberships, the 5 memberships that the person lodging the

notice believes, on reasonable grounds, are most relevant to

the provision of financial services);

1546M Application of requirements relating to information about

membership of professional associations where relevant

provider is not licensee

Section 922F, as inserted by the amending Act, applies until the

start of 15 November 2019 as if paragraph 922F(1)(m) were

replaced with the following:

(m) information about both of the following:

(i) the educational qualifications of, and any training

courses completed by, the relevant provider;

(ii) the relevant provider's membership (if any) of

professional bodies;

to the extent that the qualifications, training courses or

memberships are relevant to the provision of financial

services (and if the relevant provider has more than 5

memberships, the 5 memberships that the person lodging the

notice believes, on reasonable grounds, are most relevant to

the provision of financial services);

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1546N Application of requirements relating to information about

provisional relevant provider's work and training

Paragraphs 922F(1)(f) and (g), as inserted by the amending Act,

apply in relation to notices lodged under section 922D on or after

1 January 2019.

Note:

Paragraphs 922F(1)(f) and (g) require notices lodged under

section 922D to include information in relation to provisional relevant

providers and their work and training.

1546P Application of ongoing obligation to notify ASIC when there

is a change in a matter for a relevant provider

Paragraph 922H(1)(a), as inserted by the amending Act, applies in

relation to a change in a matter if:

(a) the change occurs after commencement; or

(b) both of the following apply:

(i) the change occurs before commencement;

(ii) immediately before commencement, a notice has not

been lodged in accordance with section 922H, as

notionally inserted into this Act by Schedule 8D to the

Corporations Regulations 2001.

1546Q Application of obligation to notify ASIC about a person who

starts to have control of a body corporate licensee

Section 922J, as inserted by the amending Act, applies in relation

to a person who starts to have control of a body corporate licensee

if:

(a) the person starts to have control of the licensee after

commencement; or

(b) both of the following apply:

(i) the person starts to have control of the licensee before

commencement;

(ii) immediately before commencement, a notice has not

been lodged in accordance with section 922J, as

notionally inserted into this Act by Schedule 8D to the

Corporations Regulations 2001.

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1546R Application of obligation to notify ASIC about a person who

ceases to have control of a body corporate licensee

Section 922K, as inserted by the amending Act, applies in relation

to a person who ceases to have control of a body corporate licensee

if:

(a) the person ceases to have control of the licensee after

commencement; or

(b) both of the following apply:

(i) the person ceases to have control of the licensee before

commencement;

(ii) immediately before commencement, a notice has not

been lodged in accordance with section 922K, as

notionally inserted into this Act by Schedule 8D to the

Corporations Regulations 2001.

1546S Application of obligation for relevant providers to provide

information to financial services licensees

Section 922N, as inserted by the amending Act, applies in relation

to a request made of a person if:

(a) both of the following apply:

(i) the request is made of the person for the purposes of

subparagraph 922N(1)(c)(i) or (ii);

(ii) the request is made after commencement (whether the

person becomes a relevant provider before or after

commencement); or

(b) both of the following apply:

(i) the request (as mentioned in paragraph 922N(1)(c), as

notionally inserted into this Act by Schedule 8D to the

Corporations Regulations 2001) is made before

commencement;

(ii) immediately before commencement, the person has not

provided the information requested.

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1546T Application of requirements relating to Register of Relevant

Providers

(1) Paragraphs 922Q(2)(b), (r), and (v), as inserted by the amending

Act, apply on and after 1 January 2020.

(2) Subparagraph 922Q(2)(j)(ii) and paragraph 922Q(2)(m), as

inserted by the amending Act, apply on and after 1 January 2019.

(3) Section 922Q, as inserted by the amending Act, applies until the

start of 1 January 2020 as if subparagraph 922Q(2)(u)(ii) were

replaced with the following:

(ii) the relevant provider's membership (if any) of

professional associations, to the extent that the

memberships are relevant to the provision of financial

services;

(4) Otherwise, sections 922Q and 922S, as inserted by the amending

Act, apply on and after commencement.

1546U Relevant provider numbers given before commencement

For the purposes of this Act, a number given by ASIC to a person

in accordance with regulation 7.6.06A of the Corporations

Regulations 2001 is taken to have been given in accordance with

section 922R of this Act, as inserted by the amending Act.

1546V Continuation of Register of Relevant Providers

The repeal of regulation 7.6.06B of the Corporations

Regulations 2001 by the Corporations Amendment (Professional

Standards of Financial Advisers) Regulation 2016 does not affect

the continuity of the register of relevant providers established

under that regulation.

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Division 3--Transitional notices

1546W Obligation to notify ASIC of certain information

(1) A notice must be lodged under this section, in the prescribed form,

if, before 15 November 2019, a notice was lodged in relation to a

relevant provider under:

(a) section 922D, as inserted by the amending Act; or

(b) section 922D, as notionally inserted into this Act by

Schedule 8D to the Corporations Regulations 2001.

(2) The notice must include:

(a) the address of the relevant provider's principal place of

business; and

(b) the name of the compliance scheme that is to cover the

relevant provider.

(3) The notice must be lodged before 1 January 2020 by:

(a) if the relevant provider is a financial services licensee--the

licensee; or

(b) otherwise--the financial services licensee on whose behalf

the relevant provider is authorised to provide personal advice

to retail clients in relation to relevant financial products.

(4) Subsection 921J(2) applies, subject to this section, as if the

reference in that subsection to section 922D included a reference to

this section.

1546X Obligation to notify ASIC of CDP year

(1) A notice must be lodged under this section, in the prescribed form,

if, before 1 January 2019, ASIC granted an applicant an Australian

financial services licence that covers the provision of personal

advice to retail clients in relation to relevant financial products.

(2) The notice must include the day of the year on which the relevant

financial services licensee's CPD year begins.

(3) The notice must be lodged by the licensee before 1 January 2019.

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(4) Subsection 922HA(3) applies as if a reference in that subsection to

subsection 922HA(1) or (3) included a reference to this section.

1546Y Obligation to notify ASIC when exams passed

(1) A notice must be lodged under this section, in the prescribed form,

if an existing provider passes an exam for the purposes of

complying with subsection 1546B(3).

(2) The notice must state that the existing provider has passed the

exam.

(3) The notice must be lodged by a financial services licensee within

30 business days of the financial services licensee becoming aware

that the existing provider has passed the exam.

1546Z Obligation to notify ASIC of certain information after

banning order

(1) A notice must be lodged under this section, in the prescribed form,

if:

(a) a person was banned, disqualified or suspended under

Division 8 of Part 7.6 on 1 January 2019; and

(b) the person becomes a provisional relevant provider after that

day.

(2) The notice must include the day the person begins undertaking

work and training in accordance with subsection 921B(4).

(3) The notice must be lodged within 30 business days of the day

mentioned in subsection (2) by the financial services licensee on

whose behalf the person is authorised to provide personal advice to

retail clients in relation to relevant financial products.

1546ZA Offence for failing to lodge transitional notices

Section 922M applies as if a reference in that section to a notice

provision included a reference to a notice given under this

Division.

Note:

Section 922M provides that a person commits an offence if a person

does not lodge certain notices.

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CORPORATIONS AMENDMENT (PROFESSIONAL STANDARDS OF FINANCIAL ADVISERS) BILL 2016