Document ID: chunk:federal_register_of_legislation:F2024C01058:reg:66:p1
Version: federal_register_of_legislation:F2024C01058
Segment Type: reg
Provision Reference: reg 66 (pt 1/2)
Character Range: 81770–84608

66  Over‑the‑counter traders
 (1) A leviable entity forms part of the over‑the‑counter traders sub‑sector in a financial year if, at any time in the financial year, the entity:
 (a) holds an Australian financial services licence or is exempt from the requirement to hold such a licence under paragraph 911A(2)(l) or subsection 926A(2) of the Corporations Act 2001 (other than because of an exemption under the ASIC Corporations (Foreign Financial Services Providers—Limited Connection) Instrument 2017/182); and
 (b) deals in, or holds out that it deals in, over‑the‑counter financial products by:
 (i) acquiring over‑the‑counter financial products from professional investors; or
 (ii) disposing of over‑the‑counter financial products to professional investors; or
 (iii) issuing over‑the‑counter financial products to professional investors; and
 (c) either:
 (i) forms part of the corporate advisors sub‑sector (see section 63); or
 (ii) is a related body corporate of an entity that forms part of the corporate advisors sub‑sector.
 (1A) However, a leviable entity does not form part of the over‑the‑counter traders sub‑sector in a financial year if, at all times in the financial year that the entity deals in (or holds out that it deals in) over‑the‑counter financial products, the entity so deals (or so holds out) only in its capacity as an entity that forms part of one or more of the following sub‑sectors:
 (a) the responsible entities sub‑sector (see section 35);
 (b) the superannuation trustees sub‑sector (see section 36);
 (c) the wholesale trustees sub‑sector (see section 37).

Levy component
 (2) The amount of a leviable entity's levy component in respect of the sub‑sector for the financial year is the sum of:
 (a) the minimum levy component for the sub‑sector; and
 (b) the graduated levy component for the entity for the sub‑sector.
Note: For the graduated levy component, see section 10.

Entity metric
 (3) The leviable entity's entity metric for the sub‑sector for the financial year is the number of persons who:
 (a) ordinarily act on behalf of the entity or an authorised representative of the entity in the financial year; and
 (b) in so acting have, at any time in the financial year, carried out one or more of the following activities in relation to dealing in an over‑the‑counter financial product with a professional investor:
 (i) determining the terms on which the entity is willing to deal;
 (ii) making or accepting an offer or an invitation to deal;
 (iii) managing the financial risk arising from dealing in the financial product.
 (4) In counting persons for the purposes of subsection (3):
 (a) count a person engaged on a part‑time basis as an appropriate fraction of a person engaged on a full‑time basis; and
 (b) count a person engaged for only a part of the year as an appropriate fraction