Document ID: chunk:federal_register_of_legislation:F2020L01338:body:0:p5
Version: federal_register_of_legislation:F2020L01338
Segment Type: other
Provision Reference: 
Character Range: 10531–13215

in circumstances where:
              (i)  the issue of the CFD occurs in this jurisdiction; or
              (ii)  an offer to issue the CFD or to apply for the issue of the CFD is received in this jurisdiction.

       Note 1: The application of the orders in section 5 is subject to the limitations in section 1023C of the Act.

       Note 2: Subject to the Court making an order staying or otherwise affecting the operation of the orders in section 5, the orders will remain in force for 18 months from the day this instrument commences: see subsection 1023G(2) of the Act.

6 Prohibition on providing inducements to retail clients in relation to CFDs
Prohibition
(1) A person must not, in the course of carrying on a business, give or offer a prohibited benefit to a retail client or prospective retail client of a CFD issuer in circumstances where the issue of a CFD to the client by the CFD issuer would be covered by the conditional prohibition in subsection 5(1) (assuming that the issue occurred at a time when the conditional prohibition was in force under subsection 5(5)).
(2) In this section, a prohibited benefit in relation to a retail client or prospective retail client of a CFD issuer means a gift, discount, rebate, trading credit or reward that is given or offered as an inducement to the retail client or prospective retail client to do any of the following:
           (a) open a CFD trading account with the CFD issuer;
           (b) pay the CFD issuer money that is derivative retail client money in relation to a CFD;
           (c) give the CFD issuer property that is derivative retail client property in relation to a CFD;
           (d) acquire a CFD from the CFD issuer.
(3) Despite subsection (2), none of the following is a prohibited benefit:
           (a) the provision of, or access to, an information service or an educational or research tool;
           (b) a discount in costs or fees (including a volume-based discount) that is offered to all retail clients and prospective retail clients;
           (c) a gift, discount, rebate, trading credit or reward that is given in relation to any of the matters referred to in paragraphs (2)(a) to (d) to the extent that the matter was done by the retail client or prospective retail client before 29 March 2021.

       Application of prohibition
(4) Subsection (1) applies on and from 29 March 2021.

       Note 1: The application of the order in section 6 is subject to the limitations in section 1023C of the Act.

       Note 2: Subject to the Court making an order staying or otherwise affecting the operation of the order in section 6, the order will remain in force for 18 months from