Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:1:p70
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 1 (pt 70/148)
Character Range: 507420–510061

price or value referred to in that paragraph is to be calculated, either generally or in relation to a specified class of financial products.

Value
 (2) For paragraph 761G(7)(a) of the Act:
 (a) the amount applicable in relation to a single derivative is $500 000; and
 (b) if the derivative is included in 2 or more related financial products, the amount applicable in relation to the related financial products is $500 000.

Working out value: general rule
 (3) For paragraph 761G(10)(a) of the Act, the value of a derivative is the face value, or the notional amount in respect of, the financial product (in dollar terms) as at the date on which the relevant arrangement is entered into by the parties.

Time of assessment
 (4) If a financial services provider needs to assess the status of a client as either retail or wholesale at a particular time in order to ensure that the client complies with the Act, or for any related purpose, the value of a financial product may be assessed at any time, whether or not a financial service is being provided at that time in relation to that product.
Note: Subregulation (4) will ensure that a provider of financial services may assess a client's status at any time (for example, the provider may need to ascertain whether ongoing disclosure of a significant event must be sent to the client under section 1017B of the Act because the client is a retail client).

7.1.22AA  Retail clients and wholesale clients: contract for difference
 (1) This regulation makes arrangements about the value of a derivative that:
 (a) is a contract for difference; and
 (b) is provided by a person who carries on a business of issuing contracts for difference to other persons (holders).
 (2) Paragraph 761G(7)(a) of the Act does not apply to the derivative.
 (3) In this regulation:
contract for difference means a derivative to which all of the following apply:
 (a) the value of the derivative, or the amount of consideration to be provided under the derivative, is ultimately determined, derived from or varies by reference to (wholly or in part) the change, between the acquisition and termination of the derivative, in the amount or value of an underlying specified under the terms of the derivative;
Note 1: For example, a derivative under which, at termination, the amount of consideration payable depends (wholly or in part) on the change in the level of a stock market index over the term of the derivative.
Note 2: There may be other factors that affect the value of the derivative. For example, fees and costs.
 (b) the derivative is not able to be traded on a licensed market;
 (c) the derivative: