ASIC Class Order [CO 14/1262] (updated 15 March 2017), which gives interim conditional relief for a period of 18 months to enable 31-day notice term deposits of up to five years to be treated as basic deposit products under the Corporations Act 2001, has been amended to clarify that the modified definition applies to s 922C of the Corporations Act 2001 (the definition for the basic banking product as it applies to the Financial Advisers Register).
The obligation of financial services licensees to notify details of representatives to the Register of Financial Advisers does not apply to persons advising only on financial products which are basic banking products, general insurance products, consumer credit insurance, or a combination of any of these three categories.
The definition of “basic banking product” includes a “basic deposit product”.
The purpose of the amendment is to ensure that the modified definition of “basic deposit product” (that is, modified so that it also covers a 31 day notice term deposit of up to five years) has effect for the purposes of the Register.
The amendment will have the effect that only those individuals authorised to give personal advice on more complex products (rather than just simpler products) are included on the Register.
A new paragraph 4A has been inserted into the class order.
The amendment omits the existing definition of “basic banking product” in section 922C of the Act and substitutes a new definition. The new definition is identical to the definition of “basic banking product” in section 961F of the Act but does not define it by reference to that section.
The new definition of a “basic banking product” for the purposes of the Register is:
- a basic deposit product;
- a facility for making non-cash payments that is related to a basic deposit product;
- a First Home Savers Account (FHSA) product of a kind mentioned in subparagraph (c)(i) of the meaning of a FHSA in section 8 of the First Home Saver Accounts Act 2008;
- a facility for providing traveller’s cheques;
- any other product prescribed by regulations.
