Amendment to Class Order [CO 14/1262] Relief for 31 day notice term deposits to clarify how it applies to the Financial Advisers Register requirements

ASIC has clarified that persons giving personal advice on 31-day notice term deposits will not be required to be listed on the Financial Advisers Register. This does not apply to those who also provide personal advice on more complex products.

Concern was raised with ASIC about whether [CO 14/1262] Relief for 31 day notice term deposits extended to the Register, as introduced by the Corporations Amendment (Register of Relevant Providers) Regulation 2015 (the Regulation).

ASIC modifications to the Corporations Actwere registered on 27 March 2015. The effect of not making these modifications would have been that providers giving personal advice on 31-day notice term deposits, but not on more complex products, may have been required to be listed on the Register.

[CO 14/1262] gives relief for 18 months to enable a 31-day notice term deposit of up to five years to be given concessional regulatory treatment as basic deposit products. The relief applies to Parts 7.6 (other than Divisions 4 and 8), 7.7 and 7.9 of the Corporations Act. The Regulation was made under Part 7.6; however it was unclear whether [CO 14/1262] did in fact extend to the Regulation.

ASIC Corporations (Amendment No. 1) Instrument 2015 amends [CO 14/1262] to make clear that it does extend to the Regulation and ensure that only those persons providing personal advice to retail clients on more complex products are required to be listed on the Register.

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Last updated: 23/03/2016 03:08