Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:4:p22
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 4 (pt 22/49)
Character Range: 1036920–1039741

the person acquires the post‑commencement product by exercising an option given to the person under the pre‑commencement product; or
 (ii) the person acquires the post‑commencement product because the pre‑commencement product was cancelled due to an administrative error.

Subdivision 7—Asset‑based fees on borrowed amounts

7.7A.17  Financial services licensees
  For subsection 964D(4) of the Act, a circumstance in which subsections 964D(1) and (2) of the Act do not apply is that the asset‑based fee being charged is a brokerage fee within the meaning of regulation 7.7A.12D.

7.7A.18  Authorised representatives
  For subsection 964E(3) of the Act, a circumstance in which subsection 964E(1) of the Act does not apply is that the asset‑based fee being charged is a brokerage fee within the meaning of regulation 7.7A.12D.

Division 6—Exemptions from application of Part 7.7A of the Act

7.7A.40  Exemption from application of Part 7.7A of the Act
  For paragraph 1368(d) of the Act, Part 7.7A of the Act does not have effect in relation to a financial services licensee or an authorised representative in respect of financial services provided to retail clients who are not in this jurisdiction.

Part 7.8—Other provisions relating to conduct etc connected with financial products and financial services, other than financial product disclosure

Division 2—Dealing with clients' money

Subdivision A—Money other than loans

7.8.01A  Wholesale client money
  For the purposes of paragraph 981A(4)(a) of the Act, money paid as mentioned in subsection 981A(1) of the Act is exempt from Subdivision A of Division 2 of Part 7.8 of the Act at a time if:
 (a) at that time the licensee has the client's written agreement to the money being dealt with other than in accordance with that Subdivision; and
Note 1: It is not necessary for the agreement to mention that Subdivision explicitly.
Note 2: If the licensee obtains the agreement after the money is paid, that Subdivision ceases to apply to the money when the licensee obtains the agreement.
 (b) either:
 (i) the financial service referred to in subparagraph 981A(1)(a)(i) of the Act is or relates to a dealing in a derivative; or
 (ii) the financial product referred to in subparagraph 981A(1)(a)(ii) of the Act is a derivative; and
 (c) the entry into of the derivative was not or will not be cleared through a clearing and settlement facility; and
 (d) the financial service or product would have been provided to the client as a wholesale client if:
 (i) the service or product were provided to the client when the money was paid; and
 (ii) section 761GA of the Act (about sophisticated investors) did not apply.

7.8.01  Obligation to pay money into an account
 (1) For subparagraph 981B(1)(a)(i) of the Act, the reference in that subparagraph to an account with