Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:1:p75
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 1 (pt 75/148)
Character Range: 519674–522349

is a wholesale client for another reason, the client will be a retail client due to the operation of paragraph 761G(7)(a) of the Act.
Note: Under subsections 761G(5), (6) and (7) of the Act, general insurance products, superannuation products and RSAs are not financial products to which the restriction on counting superannuation‑sourced money towards the price applies. This applies in addition to the exclusion for non‑cash payment products under paragraph (b) of this regulation.

7.1.27  Retail clients and wholesale clients: effect of wholesale status
 (1) For subsection 761G(10) of the Act if, at any time, the holder of a financial product is a wholesale client in relation to the product because of paragraph 761G(7)(a) of the Act:
 (a) the holder is taken, on and after that time, to be a wholesale client in relation to the product as between the holder and:
 (i) the issuer of the product; or
 (ii) if a related body corporate of the issuer of the product provides a custodial or depository service to the holder of the product in relation to the product—the related body corporate;
  for the period during which the holder holds the product; and
 (b) paragraph (a) applies whether or not the holder would, but for that paragraph, have otherwise been or become a retail client in relation to that product at some time.
 (2) For subsection 761G(10) of the Act, if:
 (a) a person is a wholesale client in relation to the product because of paragraph 761G(7)(a) or paragraph (1)(a); and
 (b) another person becomes a holder of the financial product; and
 (c) the issuer did not know, and could not reasonably be expected to have known:
 (i) whether another person had become the holder of the financial product; or
 (ii) whether any subsequent holder of the financial product was a retail client or a wholesale client;
the issuer is taken not to be guilty of any offence, or to be liable under civil penalty or civil liability provisions under the Act, merely because the issuer has not treated any subsequent holder of that financial product as a retail client.

7.1.28  Retail clients and wholesale clients: assets and income
 (1) For subparagraph 761G(7)(c)(i) of the Act, $2.5 million is specified.
 (2) For subparagraph 761G(7)(c)(ii) of the Act, $250 000 is specified.
Note: Under paragraph 761G(7)(c) of the Act, if a financial product is not, or a financial service provided to a person does not relate to, a general insurance product, a superannuation product or an RSA, the product or service is provided to the person as a retail client unless:
(a) the client is a wholesale client under paragraph 761G(7)(a), (b) or (d) of the Act; or
(b) the person who