Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:4:p52
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 4 (pt 52/60)
Character Range: 953953–956770

is the provision to the client of a financial product and section 1019B of the Act applies to the acquisition of the product by the client—before the start of the period applicable under subsection 1019B(3) of the Act, or sooner if practicable.

7.7.09AA  Statement of Advice from financial services licensee
 (1) For paragraph 947B(2)(g) of the Act, a Statement of Advice given by a financial services licensee in relation to 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 must include the following information:
 (a) whether the client has taken out a loan to fund the secured property or transferred securities contributed by the client for establishing the margin lending facility;
Note: This is sometimes referred to as 'double gearing'.
 (b) if a loan to fund the secured property or transferred securities contributed by the client for establishing the margin lending facility has been taken out—whether the security for the loan includes the primary residential property of the client;
 (c) whether there is a guarantor for the margin lending facility, and, if so:
 (i) if the financial services licensee has the necessary information—a statement as to whether the guarantor has been appropriately informed of, and warned about, the risks and possible consequences of providing the guarantee; or
 (ii) if the financial services licensee does not have the necessary information—a statement that the financial services licensee does not have the information;
 (d) the amount of any other debt incurred by the client;
 (e) any other matter that ASIC has specified in a legislative instrument for subregulation (2).
 (2) ASIC may specify in a legislative instrument any matter ASIC considers to be relevant for the purpose of establishing whether the margin lending facility, or the margin lending facility with the increased limit, is unsuitable for the client.

7.7.09AB  Modification of subsection 947B(4) of the Act
  For paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as if subsection 947B(4) of the Act were modified by:
 (a) substituting the full stop at the end of paragraph (c) with a semi‑colon; and
 (b) inserting after paragraph (c) the following paragraph:
 '(d) that ASIC may specify in a legislative instrument matters ASIC considers to be relevant for the purposes of paragraph 947B(2)(g) of the Act.'

7.7.09B  Statement of Advice from providing entity—information not included in the Statement
 (1) For paragraphs 947B(4)(b) and 947C(4)(b) of the Act, a providing entity is not required to include a statement or information mentioned in Part 7.7 of the Act in a Statement of Advice to the client if the Statement of Advice:
 (a) refers to the statement or information; and
 (b)