Document ID: chunk:federal_register_of_legislation:F2023C00928:reg:8:p2
Version: federal_register_of_legislation:F2023C00928
Segment Type: reg
Provision Reference: reg 8 (pt 2/34)
Character Range: 16503–19196

are notified by ASIC in writing that they are excluded from relying on this section and ASIC has not withdrawn that notice in writing; or
           (b) 10 business days have elapsed since the person became or should reasonably have become aware of matters that give the person reason to believe that it has failed, other than in an immaterial respect, to comply with a condition in section 12 without full particulars of the failure having been notified to ASIC (to the extent that the person knows those particulars or would have known them if they had undertaken reasonable enquiries).

12 Conditions
A person that relies on the exemption in subsection 11(1) must not knowingly cause the MDA provider to fail to comply with sections 912AEA to 912AEG (as notionally inserted by this instrument) or be knowingly concerned in the MDA provider not complying with those sections.

13 Market participants who provide MDA services to family members only
(1) A financial services licensee that is a market participant does not have to comply with Chapter 5C of the Act, Part 7.6 of the Act (other than Divisions 4 and 8) as affected by this instrument, Part 7.7 of the Act, section 992A of the Act and Part 7.9 of the Act in relation to a financial product that is:
           (a) an interest in a managed investment scheme (other than a registered scheme) that is limited to a right to receive MDA services; or
           (b) a miscellaneous financial investment product that is limited to a right to receive MDA services; or
           (c) an equitable right or interest in a financial product arising because of a holding, or an offer to hold or arrange for the holding of, the financial product on behalf of the client as part of the MDA services.
    Where exemption applies
(2) The exemption in subsection (1) applies where:
           (a) the financial product is issued to a family member of:
(i) the licensee; or
(ii) a representative of the licensee; and
              Note: A non-adult child will cease to be a family member upon obtaining 18 years of age: see definition of family member in section 4.
           (b) if the family member is a non-adult child, the agreement under which the MDA services are provided contains a provision that the agreement will automatically terminate upon the family member obtaining 18 years of age.
(3) The exemption in subsection (1) does not apply to the provision of custodial or depository services by the licensee.

    Extended meaning of certain defined terms

       (4) Where a definition in section 4 refers (directly or indirectly) to a MDA provider, the licensee is taken to be a MDA provider for the purposes of applying the definition