Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:1:p67
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 1 (pt 67/148)
Character Range: 500175–502789

amount payable or paid to acquire or purchase the income stream financial product:
 (a) disregard any amount payable to the extent to which it is to be paid out of money lent by:
 (i) the person offering the income stream financial product; or
 (ii) an associate of that person; and
 (b) disregard any amount paid to the extent to which it was paid out of money lent by:
 (i) the person offering the income stream financial product; or
 (ii) an associate of that person; and
 (c) include any amount paid or payable to cover:
 (i) fees or charges that are paid to the issuer or any other person that relates to the issue of the income stream financial product; and
 (ii) fees or charges that are paid to the issuer or any other person that relates to the issue of the income stream financial product; and
 (d) despite paragraph (c), disregard any amount of remuneration or other benefits paid or payable to a person for the provision of financial product advice or other related services provided directly to:
 (i) the client; or
 (ii) another person acting on behalf of the client.

7.1.21  Retail clients and wholesale clients: value of income stream financial products
 (1) This regulation makes arrangements about the value of an income stream financial product.
Note: Under paragraph 761G(7)(a) of the Act, if a financial product is not, or a financial service provided to a person does not relate to, a general insurance product, a superannuation product or an RSA, the financial product or financial service is provided to the person as a retail client unless the price for the provision of the financial product, or the value of the financial product to which the financial service relates, equals or exceeds the amount specified in regulations made for the purposes of that paragraph as being applicable in the circumstances.
 Under paragraph 761G(10)(a) of the Act, the regulations may also deal with how a price or value referred to in that paragraph is to be calculated, either generally or in relation to a specified class of financial products.
 In general, the 'value' of a product will be the amount that the product is worth once it is issued or acquired by the client. It is anticipated 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