Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:15:p36
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 15 (pt 36/73)
Character Range: 1777778–1780549

during the transition period, by a representative in respect of more than 1 principal.
Note: The Corporations Act 2001 has been amended by the Financial Services Reform (Consequential Provisions) Act 2001. The Consequential Provisions Act includes a two‑year transition period during which certain conduct, described in Part 10.2 of the Corporations Act, will be regulated under either the legal regime in force before the amendments or under the new version of the Corporations Act.
 If a person continues a business during the transition period, and is to be regulated under the legal regime in force before the amendments, the person will be subject to the relevant law that regulated (or would have regulated) their conduct before the amendments.  This is referred to in section 1430 of the Corporations Act as the 'relevant old legislation'.
 Therefore, after the commencement of the amendments, a person may be a principal under either or both legal regime. This Division deals with the liability of either kind of principal in relation to a client and the conduct of a representative of that principal.
 (2) Nothing in this Division is intended to apply a provision of the relevant old legislation to a person that is not a regulated principal.

10.2.101  Definitions for Division 20
  In this Division:
FSR principal means a person to whom an Australian financial services licence has been granted.
non‑FSR principal means any person who provides financial services as a principal, and who is not an FSR principal during the transitional period, including the following persons:
 (a) an insurer to which paragraph 1436A(2)(d) of the Act applies (in relation to activities and insurance agents to which section 1436A of the Act applies);
 (b) a regulated principal (in relation to regulated activities to which section 1431 of the Act applies).
principal means an FSR principal or a non‑FSR principal.
representative means a person who:
 (a) provides financial services on behalf of a principal; or
 (b) otherwise acts on behalf of a principal;
under the relevant old legislation, the amended Corporations Act or under any other authority.
responsible person means any person who is liable, as a principal or a representative, for conduct in relation to the provision of a financial service under any law.
transition period means:
 (a) the period of 2 years after the FSR commencement; or
 (b) if the person is subject to an exemption under section 1437 of the Act in respect of an activity, the period starting at the FSR commencement and ending on the earlier of:
 (i) the person becoming regulated under the amended Corporations Act in respect of the activity; and
 (ii) the end of the period of the exemption in respect of the activity.

10.2.102  Liability of