Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:15:p5
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 15 (pt 5/73)
Character Range: 1701782–1704393

of the Act are taken not to require a person to give a client a Financial Services Guide in accordance with Division 2 of Part 7.7 of the Act in relation to a financial service (the new financial service) if, before the person became subject to Part 7.7 of the Act in relation to the provision of the new financial service:
 (a) the person was a regulated principal, or a representative of a regulated principal within the meaning of subsection 1436(1) of the Act, whose regulated activities included the provision of financial services of the same kind as the new financial service; and
 (b) the person entered into an agreement with the client, to provide the new financial service; and
 (c) the client took all of the steps necessary for the person to be able to provide the new financial service.
Note: When Part 7.7 of the Act begins to apply to a person, the person will be under an obligation to provide a Financial Services Guide to a retail client to which it provides financial services. The Financial Services Guide should be given before the financial service is provided (see sections 941A, 941B and 941D of the Act).
 However, this could create difficulties if the person, or an authorised representative, has an existing client, and has entered into an arrangement with the client before Part 7.7 started to apply. The obligation to give a Financial Services Guide would arise when Part 7.7 begins to apply, but, under the arrangement, the financial service might have to be provided very shortly afterwards.  This might make the giving of the Financial Services Guide in accordance with section 941D difficult.

10.2.48A  Obligation to give a Financial Services Guide for a custodial and depository service
 (1) For section 1444 of the Act, sections 941A and 941B of the Act are taken not to require a person to give a Financial Services Guide to a client, in accordance with Division 2 of Part 7.7 of the Act, in relation to a financial service (the new financial service), if:
 (a) the new financial service constitutes:
 (i) the provision of a custodial or depository service under section 766E of the Act; or
 (ii) dealing in a financial product that is held on trust for or on behalf of the client as a necessary part of the custodial or depository service; or
 (iii) issuing, to the client, a financial product that is a beneficial interest in a financial product held on trust for or on behalf of the client as a necessary part of the custodial or depository service; and
 (b) the person entered into the arrangement under which the custodial or depository service is provided, before the