Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:1:p63
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 1 (pt 63/148)
Character Range: 490423–493121

that the test for the value of the product in paragraph 761G(7)(a) of the Act will usually be used to assess a client's status as a retail or wholesale client at or before the time that a financial service (eg financial product advice, disposal of the product) is provided to the client in respect of an existing product.

Value
 (2) For paragraph 761G(7)(a) of the Act, the amount applicable in relation to an investment‑based financial product is $500 000.

Working out value: general rule
 (3) For paragraph 761G(10)(a) of the Act, the value of an investment‑based financial product on a day is:
 (a) if the financial product is a security, or a financial product under paragraph 764A(1)(j) of the Act—the market value of the investment‑based financial product; or
 (b) if paragraph (a) does not apply—the amount of money that stands to the client's credit in relation to that investment‑based financial product.
 (4) For subregulation (3), in calculating the value of an investment‑based financial product:
 (a) disregard any amount standing to the client's credit in relation to the investment‑based financial product to the extent that it is to be paid, or was paid, out of money lent by:
 (i) the person offering the investment‑based financial product; or
 (ii) an associate of that person; and
 (b) disregard any amount of fees or charges:
 (i) that the product issuer has an actual or accrued right to deduct, or otherwise to have access to, from the value of the investment‑based financial product (whether or not the amount has been deducted); or
 (ii) that has accrued as at the time that the client's status as a retail or wholesale client is assessed.

Cumulative value of products
 (5) If, at a single point in time:
 (a) a financial service that is being provided to a client is:
 (i) financial product advice; or
 (ii) arranging for a person to engage in conduct in accordance with subsection 766C(2) of the Act; and
 (b) the financial service is provided in respect of:
 (i) more than 1 investment‑based financial product; or
 (ii) more than 1 income financial stream financial product; or
 (iii) a combination of investment‑based financial products and income financial stream financial products; and
 (c) either:
 (i) the total price for the provision of those financial products is at least $500 000; or
 (ii) the price or value of all of those financial products is at least $500 000;
the value of the financial products is taken, for subregulation (3), to be greater than the amount mentioned in subregulation (2).
 (6) Subregulation (5) does not affect the operation of Part 7.9 of the Act, and Part 7.9 of these Regulations, to the extent that they require the provision of