Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:7:p15
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 7 (pt 15/39)
Character Range: 1140542–1143236

person (not being a director of the body corporate) employed by the body corporate, or by another body corporate that is related to the first body corporate, to enable the person to acquire financial products that are:
 (i) fully paid shares in the body corporate; and
 (ii) to be held in beneficial ownership by the person.
 (1A) For subsection 991F(2) of the Act, that subsection does not have effect in relation to a financial services licensee that gives credit in good faith to a person employed by:
 (a) the financial services licensee; or
 (b) a person related to the financial services licensee;
to enable the person to acquire an insurance product in relation to a credit facility provided by the financial services licensee to the person.
Example: Mortgage insurance is an insurance product in relation to a credit facility.
 (2) For subsection 991F(3) of the Act, a body corporate that is related to a financial services licensee may act as the agent of an employee of the financial services licensee, in respect of the acquisition mentioned in that subsection, only if:
 (a) before the acquisition, the employee has informed the related body corporate that the employee is acquiring, or agreeing to acquire, the financial product on the employee's own behalf; and
 (b) the financial services licensee has in place arrangements with the related body corporate to allow the licensee to be informed of, and to gain access to records relating to, the acquisition.
 (3) For subsection 991F(3) of the Act, a body corporate may act as the agent of a person who is an employee of a financial services licensee that is a participant in a licensed market and is so employed in connection with a business of dealing in financial products, in respect of an acquisition mentioned in that subsection, if:
 (a) the body corporate holds an Australian financial services licence; and
 (b) the body corporate is a participant in the same licensed market as the licensee; and
 (c) the employer has given consent in writing to the particular acquisition before the acquisition takes place; and
 (d) the employee gives the employer a copy of the confirmation of the transaction.
 (4) For subsection 991F(3) of the Act, a person who is:
 (a) an employee of a financial services licensee that is a participant in a licensed market; and
 (b) employed in connection with a business of dealing in financial products;
may, on the person's own behalf, acquire, or agree to acquire, a financial product that is able to be traded on that licensed market, without the licensee's acting as an agent in respect of the transaction, if the person's employment is not directly connected with the licensee's business of