Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:4:p16
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 4 (pt 16/49)
Character Range: 1021398–1024123

given for advice that relates to an interest in a time‑sharing scheme.

7.7A.12D  Brokerage fees
 (1) A monetary benefit is not conflicted remuneration if:
 (a) the benefit consists of a percentage, of no more than 100%, of a brokerage fee that is given to a provider who is a trading participant of a declared financial market or the market known as the ASX24; and
 (b) the provider, directly or indirectly, gives the benefit to a representative of the provider.
Note 1: For declared financial market, see section 9 of the Act.
Note 2: The ASX24 is the financial market operated by Australian Securities Exchange Limited that was formerly known as the Sydney Futures Exchange.
 (1A) A monetary benefit is not conflicted remuneration if:
 (a) the benefit is a fee paid between a financial services licensee that is a trading participant of a declared financial market and a financial services licensee that is not a trading participant in respect of dealings undertaken by a retail client through a specified service; and
 (b) each of those trades is executed by the trading participant on behalf of the retail client; and
 (c) the fee is a percentage, not exceeding 100%, of a brokerage fee paid directly or indirectly by the retail client; and
 (d) no portion of the benefit is paid to a person other than the trading participant or the licensee that is not a trading participant.
 (2) In this regulation:
brokerage fee means a fee that a retail client pays to a provider in relation to a transaction in which the provider, on behalf of the retail client, deals in a financial product that is traded on:
 (a) a declared financial market; or
 (aa) the market known as the ASX24; or
 (b) a prescribed foreign financial market.
Note 1: Regulations 7.7A.17 and 7.7A.18 relate to exemptions in relation to the charging of asset‑based fees on borrowed amounts.
Note 2: The ASX24 is the financial market operated by Australian Securities Exchange Limited that was formerly known as the Sydney Futures Exchange.
prescribed foreign financial market means a financial market that:
 (a) has its principal place of business in a foreign country; and
 (b) has been authorised by an authority in that country that is a signatory to the International Organization of Securities Commissions' Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information of May 2002.
specified service means a service which:
 (a) is provided for retail clients under the name or brand name of:
 (i) the financial services licensee that is not a trading participant; or
 (ii) the trading participant and the financial services licensee that is not a trading participant; and
 (b) relates to the dealing, on