Commonwealth Numbered Regulations

ASIC SUPERVISORY COST RECOVERY LEVY REGULATIONS 2017 (F2017L00805) - REG 66

             (1)  A leviable entity forms part of the over-the-counter traders sub-sector in a financial year if, at any time in the financial year, the entity:

                     (a)  holds an Australian financial services licence or is exempt from the requirement to hold such a licence under paragraph 911A(2)(l) or subsection 926A(2) of the Corporations Act 2001 (other than because of an exemption under the ASIC Corporations (Foreign Financial Services Providers--Limited Connection) Instrument 2017/182 ); and

                     (b)  deals in, or holds out that it deals in, over-the-counter financial products by:

                              (i)  acquiring over-the-counter financial products from professional investors; or

                             (ii)  disposing of over-the-counter financial products to professional investors; or

                            (iii)  issuing over-the-counter financial products to professional investors; and

                     (c)  either:

                              (i)  forms part of the corporate advisors sub-sector (see section 63); or

                             (ii)  is a related body corporate of an entity that forms part of the corporate advisors sub-sector; and

                     (d)  does not form part of any of the following sub-sectors:

                              (i)  the responsible entities sub-sector (see section 35);

                             (ii)  the superannuation trustees sub-sector (see section 36);

                            (iii)  the wholesale trustees sub-sector (see section 37).

Levy component

             (2)  The amount of a leviable entity's levy component in respect of the sub-sector for the financial year is the sum of:

                     (a)  the minimum levy component for the sub-sector; and

                     (b)  the graduated levy component for the entity for the sub-sector.

Note:          For the graduated levy component, see section 10.

Entity metric

             (3)  The leviable entity's entity metric for the sub-sector for the financial year is the number of persons who:

                     (a)  ordinarily act on behalf of the entity or an authorised representative of the entity in the financial year; and

                     (b)  in so acting have, at any time in the financial year, carried out one or more of the following activities in relation to dealing in an over-the-counter financial product with a professional investor:

                              (i)  determining the terms on which the entity is willing to deal;

                             (ii)  making or accepting an offer or an invitation to deal;

                            (iii)  managing the financial risk arising from dealing in the financial product.

             (4)  In counting persons for the purposes of subsection (3):

                     (a)  count a person engaged on a part-time basis as an appropriate fraction of a person engaged on a full-time basis; and

                     (b)  count a person engaged for only a part of the year as an appropriate fraction of a person engaged for the whole of the year; and

                     (c)  if the entity is exempt from the requirement to hold an Australian financial services licence as mentioned in paragraph (1)(a)--disregard a person who satisfies both of the following:

                              (i)  the person carried out the activity at a place outside Australia;

                             (ii)  the person carried out the activity in relation to a professional investor that was outside Australia.

             (5)  The minimum levy component for the sub-sector is $1,000.