Corporations Regulations 2001

A monetary benefit is not conflicted remuneration if:

the benefit consists of a percentage, of no more than 100%, of a brokerage fee that is given to a provider who is a trading participant of a declared financial market or the market known as the ASX24; and

the provider, directly or indirectly, gives the benefit to a representative of the provider.

For declared financial market, see section 9 of the Act.

The ASX24 is the financial market operated by Australian Securities Exchange Limited that was formerly known as the Sydney Futures Exchange.

A monetary benefit is not conflicted remuneration if:

the benefit is a fee paid between a financial services licensee that is a trading participant of a declared financial market and a financial services licensee that is not a trading participant in respect of dealings undertaken by a retail client through a specified service; and

each of those trades is executed by the trading participant on behalf of the retail client; and

the fee is a percentage, not exceeding 100%, of a brokerage fee paid directly or indirectly by the retail client; and

no portion of the benefit is paid to a person other than the trading participant or the licensee that is not a trading participant.

In this regulation:

a declared financial market; or

the market known as the ASX24; or

a prescribed foreign financial market.

Regulations 7.7A.17 and 7.7A.18 relate to exemptions in relation to the charging of asset‑based fees on borrowed amounts.

The ASX24 is the financial market operated by Australian Securities Exchange Limited that was formerly known as the Sydney Futures Exchange.

has its principal place of business in a foreign country; and

has been authorised by an authority in that country that is a signatory to the International Organization of Securities Commissions’ Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information of May 2002.

is provided for retail clients under the name or brand name of:

the financial services licensee that is not a trading participant; or

the trading participant and the financial services licensee that is not a trading participant; and

relates to the dealing, on behalf of the retail client, in a financial product traded on:

a declared financial market; or

a prescribed foreign financial market; and

is provided in either or both of the following ways:

by direct electronic access;

by telephone, but only if:

direct electronic access is not available for a temporary period, or the retail client expresses a preference that the service be provided by telephone; and

neither the trading participant nor the financial services licensee that is not a trading participant is to provide financial product advice to the retail client by telephone in relation to the dealing undertaken on the retail client’s behalf; and

is provided in circumstances in which neither the trading participant nor the financial services licensee that is not a trading participant provides personal advice to the retail client in relation to the dealing undertaken on the retail client’s behalf.

is a participant of the market admitted under the market’s operating rules; and

is allowed, under the market’s operating rules, to deal in one or more of the financial products that are able to be traded on the market.

The ASX24 is the financial market operated by Australian Securities Exchange Limited that was formerly known as the Sydney Futures Exchange.