Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:1:p64
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 1 (pt 64/148)
Character Range: 492894–495579

(3), to be greater than the amount mentioned in subregulation (2).
 (6) Subregulation (5) does not affect the operation of Part 7.9 of the Act, and Part 7.9 of these Regulations, to the extent that they require the provision of a Product Disclosure Statement in relation to the financial product advice.
Note: Although the effect of subregulation (5) is that the value of the investment‑based financial products is taken to be at least $500 000 in the circumstances mentioned in that subregulation, a client must still be provided with appropriate product disclosure and other requirements in accordance with Part 7.9 of the Act as a retail client in relation to a particular investment‑based financial product where the price of the product is less than $500 000.
 In any situation in which a Product Disclosure Statement would be required for a retail client (the situations described in Subdivision B of Division 2 of Part 7.9 of the Act), the limit of $500 000 must be reached for any single investment‑based financial product, or income stream financial product, before the client will be treated as a wholesale client.

Group products
 (7) If the investment‑based financial product is a group product covered by subsection 1012H(1) of the Act:
 (a) the amount in subregulation (2) is to be used to determine the status of each person who elects, or may elect, to be covered by the investment‑based financial product; and
 (b) subregulation (3) is to be used to determine the value of the investment‑based financial product to the extent that it stands, or will stand, to the credit of, each person who elects, or may elect, to be covered by the investment‑based financial product.

Time of assessment
 (8) If a financial services provider needs to assess the status of a client as either retail or wholesale at a particular time in order to ensure that the client complies with the Act, or for any related purpose, the value of a financial product may be assessed at any time, whether or not a financial service is being provided at that time in relation to that product.
Note: Subregulation (8) will ensure that a provider of financial services may assess a client's status at any time (for example, the provider may need to ascertain whether a periodic statement must be sent to the client under section 1017D of the Act because the client is a retail client).

7.1.19A  Retail clients and wholesale clients: price of margin lending facilities
 (1) This regulation makes arrangements about the price for the provision of a margin lending facility, or a margin lending facility whose limit is proposed to be increased, within the meaning of subsection 761EA(1) of the Act.
Note: