Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:7:p13
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 7 (pt 13/39)
Character Range: 1135387–1138182

the financial services licensee deals, or has dealt, in a financial product traded on that market:
 (i) on the licensee's own behalf (whether directly or through an agent or other representative); or
 (ii) on behalf of a client; or
 (b) an associate of the financial services licensee is a participant in the market mentioned in that subregulation.
 (2) For subsection 991E(2) of the Act:
 (a) a disclosure referred to in paragraph 991E(1)(c) of the Act must be given by the financial services licensee to the non‑licensee:
 (i) in writing; and
 (ii) if the transaction is an on‑market transaction—in relation to the particular transaction, a class of on‑market transactions which includes the transaction, or all on‑market transactions; and
 (b) a consent referred to in paragraph 991E(1)(d) of the Act:
 (i) may be given orally, or in writing, by the non‑licensee; and
 (ii) is effective until it is revoked, either orally or in writing, by the non‑licensee; and
 (c) if the non‑licensee gives an oral consent to the financial services licensee, or revokes a consent orally, the financial services licensee must:
 (i) make a written record of the consent or revocation; and
 (ii) provide a copy of the written record to the non‑licensee within 10 business days after the day on which the consent is given or revoked.
 (3) For subsection 991E(3) of the Act, a brokerage, commission or other fee is permitted in respect of a transaction between a financial services licensee and a non‑licensee only if:
 (a) the financial services licensee is a participant in a licensed market; and
 (b) the financial services licensee has complied with all of the financial services licensee's obligations in relation to the transaction under the market integrity rules and the operating rules of the relevant licensed market; and
 (c) the market integrity rules or the operating rules permit a brokerage, commission or fee to be charged to non‑licensees of the same kind as the non‑licensee; and
 (d) the non‑licensee has authorised the financial services licensee to charge the non‑licensee in respect of the transaction; and
 (e) the financial services licensee discloses to the non‑licensee the amount of the brokerage, commission or fee, or the basis on which it will be calculated, before the non‑licensee gives the authorisation mentioned in paragraph (d); and
 (f) the amount of the brokerage, commission or fee is reasonable having regard to the amount that would have been charged by the financial services licensee to the non‑licensee if the financial services licensee had entered the transaction with the non‑licensee as agent and not on its own behalf.
 (4) For subregulation (3):
 (a) an authorisation given to the financial services licensee by the non‑licensee:
 (i) may be given orally, or in