Application of ban on conflicted remuneration—purchase or sale of financial advice business
7.7A.12EA Application of ban on conflicted remuneration—purchase or sale of financial advice business
A monetary benefit is not conflicted remuneration to the extent that:
the benefit is given to a financial services licensee or a representative of the licensee; and
the benefit is paid as part of:
the purchase or sale of all or part of the licensee’s financial advice business; or
the purchase or sale of all or part of the representative’s financial advice business; and
the price is calculated using a formula:
which is based, in whole or in part, on the number or value of all or part of the financial products held by the licensee’s clients or the representative’s clients; and
in which the weighting attributed to the financial products issued by the licensee or a related body corporate or other person is the same as the weighting attributed to other similar financial products.
This Act’s bill:Explanatory statement
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