CLIENT UPDATE 14 April 2011
Updated ASIC Regulatory Guidance ASIC has updated the following regulatory guides (RGs): • RG 36 Licensing: Financial product advice and dealing. RG 36 now includes the change in the Corporations Act 2001 definition of ‘financial service’ to include ‘traditional trustee company services’ and references other relevant legislation including the National Consumer Credit Protection Act 2009 (National Credit Act) and the shorter PDS regime that applies to certain superannuation products, simple managed investment schemes and margin lending facilities under the Corporations Amendment Regulations 2010 (No. 5).
For more information on the shorter PDS regime, see ASIC Information Sheet 133 Shorter and simpler PDSs: Superannuation, managed investment schemes and margin lending (INFO 133) and the Explanatory Memorandum to the Corporations Amendment Regulations 2010 (No. 5).
The changes to RG 36 are important for financial product issuers, advisers and dealers, and their professional advisers. • RG 121 Doing financial services business in Australia. RG 121 now includes the change in the Corporations Act 2001 definition of ‘financial service’ to include ‘traditional trustee company services’ and includes references to the National Credit Act and the ASIC market integrity rules.
The changes to RG 121 are important for foreign companies and individuals seeking to conduct a financial services business in Australia. • RG 170 Prospective financial information. Reformatted RG 170 now sets out how issuers of standard margin lending facilities, simple managed investment schemes and certain superannuation products should disclose prospective financial information in compliance with the shorter PDS regime requirements (see RG170.12 and following). ASIC also sets out how its new substantiation notice power under s 12GY of the Australian Securities and Investments Commission Act 2001 operates in relation to a claim or representation promoting the supply or possible supply of financial services (see RG 170.56).
The changes to RG 170 are important for issuers of financial products. • RG 175 Licensing: Financial product advisers - conduct and disclosure. RG 175 now clarifies the obligations relating to the provision of financial advice via an intermediary, i.e. as a secondary service (see RG 175.88 and following).
The changes to RG 175 are important for providers of financial product advice to retail clients, and their professional advisers.
Paul Cleary would be happy to discuss these changes to ASIC’s guidance.
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For more information, please contact: Paul Cleary Partner
T: 02 8257 5760 M: 0407 052 170 paul.cleary@turkslegal.com.au
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