Corporations Regulations 2001

This regulation makes arrangements about the price for the provision of an investment‑based financial product.

Under paragraph 761G(7)(a) of the Act, if a financial product is not, or a financial service provided to a person does not relate to, a general insurance product, a superannuation product or an RSA, the financial product or financial service is provided to the person as a retail client unless the price for the provision of the financial product, or the value of the financial product to which the financial service relates, equals or exceeds the amount specified in regulations made for the purposes of that paragraph as being applicable in the circumstances.

For paragraph 761G(7)(a) of the Act, the amount applicable in relation to an investment‑based financial product is $500 000.

For paragraph 761G(10)(a) of the Act, the price of an investment‑based financial product:

is the amount that is paid or payable to acquire or purchase the investment‑based financial product; and

does not include any amount paid for or in respect of the investment‑based financial product following its issue or acquisition unless the issue or acquisition would not have taken place without an arrangement to pay the amount.

An amount deposited in a deposit account will not generally be regarded as part of the ‘price’ paid to acquire or purchase the financial product.

For subregulation (3), in calculating any amount payable or paid to acquire or purchase the investment‑based financial product:

disregard any amount payable to the extent to which it is to be paid out of money lent by:

the person offering the investment‑based financial product; or

an associate of that person; and

disregard any amount paid to the extent to which it was paid out of money lent by:

the person offering the investment‑based financial product; or

an associate of that person; and

include any amount paid or payable to cover:

fees or charges that are paid to the issuer or any other person that relates to the issue of the investment‑based financial product; and

fees or charges that are paid to the issuer or any other person that relates to the issue of the investment‑based financial product; and

despite paragraph (c), disregard any amount of remuneration or other benefits paid or payable to a person for the provision of financial product advice or other related services provided directly to:

the client; or

another person acting on behalf of the client.

If the investment‑based financial product is a group product covered by section 1012H of the Act:

the amount in subregulation (2) is to be used to determine the status of each person who elects, or may elect, to be covered by the investment‑based financial product; and

subregulation (3) is to be used to determine the amount to be paid for the person to be covered by the investment‑based financial product.