Treasury Laws Amendment (Delivering Better Financial Outcomes) Regulations 2024 (Cth)

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Treasury Laws Amendment (Delivering Better Financial Outcomes) Regulations 2024

I, the Honourable Sam Mostyn AC, Governor‑General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following regulations.

Dated 12 September 2024

Sam Mostyn AC

Governor‑General

By Her Excellency’s Command

Stephen Jones

Assistant Treasurer

Minister for Financial Services

Contents

1Name

This instrument is the Treasury Laws Amendment (Delivering Better Financial Outcomes) Regulations 2024.

2Commencement
  1. (1)

    Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.

Sections 1 to 4 and anything in this instrument not elsewhere covered by this table

The day after this instrument is registered.

17 September 2024

2. Schedule 1, Parts 1 and 2

The day after this instrument is registered.

17 September 2024

3.

Schedule 1, Part 3

Immediately after the commencement of the provisions covered by table item 2.

17 September 2024

4.

Schedule 1, Part 4

Immediately after the commencement of the provisions covered by table item 3.

17 September 2024

5. Schedule 1, Part 5

At the same time as Part 5 of Schedule 1 to the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024 commences.

9 July 2025

Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.

  1. (2)

    Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.

3Authority

This instrument is made under the following:

  1. (a)

    the Corporations Act 2001;

  2. (b)

    the Electronic Transactions Act 1999.

4Schedules

Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

Schedule 1AmendmentsPart 1Superannuation

Electronic Transactions Regulations 2020

  1. 1

    Clause 1 of Schedule 1 (table item 89, column 1, paragraph (h))

Omit “subsection 99FA(1)”, substitute “section 99FA”.

Part 2Ongoing fee arrangements

Corporations Regulations 2001

2

Subparagraph 7.6.02A(2)(a)(vi)

Repeal the subparagraph.

3

Subparagraphs 7.6.02A(2)(a)(ix) and (x)

Repeal the subparagraphs.

4

Regulation 7.7A.11

Repeal the regulation.

5

Paragraphs 7.7A.11AA(2)(a) and (b)

Repeal the paragraphs.

6

After paragraph 7.7A.11AA(2)(c)

Insert:

  1. (ca)

    each consent given by the client to enter into or renew an ongoing fee arrangement for the purposes of section 962G of the Act;

  2. (cb)

    the matters disclosed to the client under subsection 962G(2) of the Act;

7

After paragraph 7.7A.11AA(3)(b)

Insert:

  1. (ba)

    the matters set out in section 962T of the Act;

8

Paragraph 9.4AB.02(2)(e)

Omit “section 962P”, substitute “section 962Z”.

9

Paragraph 9.4AB.02(2)(f)

Repeal the paragraph.

10

In the appropriate position in Chapter 10

Insert:

Part 10.52—Application provisions relating to the Treasury Laws Amendment (Delivering Better Financial Outcomes) Regulations 2024

10.52.01Application—compliance records for fee disclosure statements

Despite the repeal of paragraphs 7.7A.11AA(2)(a) and (b) made by Part 2 of Schedule 1 to the Treasury Laws Amendment (Delivering Better Financial Outcomes) Regulations 2024, those paragraphs continue to apply in relation to fee disclosure statements required to be given under section 962G of the Act as in force immediately before the commencement of Part 2 of Schedule 1 to the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024 as if those repeals had not happened.

10.52.02Application—contraventions relating to ongoing fee arrangements

The amendments of subregulations 7.6.02A(2) and 9.4AB.02(2) made by Part 2 of Schedule 1 to the Treasury Laws Amendment (Delivering Better Financial Outcomes) Regulations 2024 apply in relation to conduct occurring wholly on or after the day that is 6 months after the commencement of Part 2 of Schedule 1 to the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024.

Part 3Financial Services Guide

Corporations Regulations 2001

11

After subparagraph 7.6.02A(2)(a)(v)

Insert:

  1. (va)

    subsection 943G(3);

  2. (vb)

    subsection 943H(4);

  3. (vc)

    subsection 943K(2);

  4. (vd)

    subsection 943L(2);

12

At the end of subregulation 7.7.02(4A)

Add:

Note: The providing entity is not required to tell the client that a Financial Services Guide exists or that the provider will send out a Financial Services Guide on request if the provider makes website disclosure information available in accordance with Division 2A of Part 7.7 of the Act (see subsection 941C(5A) of the Act).

13

Subregulation 7.7.02A(2)

Repeal the subregulation, substitute:

  1. (2)

    For the purposes of paragraph 951C(1)(c) of the Act, section 941C of the Act is modified by inserting after subsection 941C(7) the following subsections:

  2. “(7AA)

    The providing entity does not have to give the client a Financial Services Guide in the following circumstances:

    1. (a)

      if the providing entity will, or is likely to, provide a financial service to the client in a recommendation situation (see section 1012A), an issue situation (see section 1012B) or a sale situation (see section 1012C);

    2. (b)

      the providing entity gives to the client a Product Disclosure Statement;

    3. (c)

      the providing entity gives to the client a statement that:

      (i) contains so much of the information required by section 942B or 942C (as the case may be), and any regulations made for the purposes of the appropriate section, as is not already set out in the Product Disclosure Statement; and

      1. (ii)

        complies with the requirements set out in subsection (7AB);

    4. (d)

      the statements mentioned in paragraphs (b) and (c) are given at the same time.

  3. (7AB)

    The statement referred to in paragraph (7AA)(c) must:

    1. (a)

      be up to date as at the time it is given to the client; and

    2. (b)

      may contain information apart from that referred to in subparagraph (7AA)(c)(i); and

    3. (c)

      meet the requirements of subsections 942B(3) and (6A) or subsections 942C(3) and (6A) (as the case may be).”

14

At the end of subregulation 7.7.03(1)

Add:

Note: This regulation (other than paragraph (5)(b) and subregulation (6)) is also relevant to website disclosure information made available in accordance with Division 2A of Part 7.7 of the Act (see paragraph 943J(a) of the Act).

15

At the end of subregulation 7.7.03A(1)

Add:

Note: This regulation is also relevant to website disclosure information made available in accordance with Division 2A of Part 7.7 of the Act (see paragraph 943J(a) of the Act).

16

At the end of subregulation 7.7.04(1)

Add:

Note: This regulation is also relevant to website disclosure information made available in accordance with Division 2A of Part 7.7 of the Act (see paragraph 943J(a) of the Act).

17

At the end of subregulation 7.7.04(5)

Add:

Note: If website disclosure information is made available in accordance with Division 2A of Part 7.7 of the Act, the statement required by subparagraph (d)(ii) of this subregulation must set out that the client may request particulars of the remuneration (including commissions) or other benefits but that the request must be made before any financial service identified in the website disclosure information is provided to the client.

18

Paragraph 7.7.04A(1)(a)

After “the Financial Services Guide is given to the client”, insert “or the website disclosure information is made available”.

19

Paragraph 7.7.04A(1)(c)

After “the Financial Services Guide”, insert “or the website disclosure information”.

20

Subregulation 7.7.04A(2)

Repeal the subregulation, substitute:

  1. (2)

    A request under subregulation (1) must be made:

    1. (a)

      if the providing entity makes website disclosure information available in accordance with Division 2A of Part 7.7 of the Act—before any financial service identified in the website disclosure information is provided to the client; or

    2. (b)

      otherwise—within a reasonable time after the client is given the Financial Services Guide and before any financial service identified in the Guide is provided to the client.

21

Subregulation 7.7.04AA(2)

Omit “963C(b)” (first occurring), substitute “963C(1)(b)”.

22

Subregulation 7.7.04AA(2) (note)

Omit “Note”, substitute “Note 1”.

23

Subregulation 7.7.04AA(2) (note)

Omit “963C(b)”, substitute “963C(1)(b)”.

24

At the end of subregulation 7.7.04AA(2)

Add:

Note 2: This regulation is also relevant to website disclosure information made available in accordance with Division 2A of Part 7.7 of the Act (see paragraph 943J(a) of the Act).

25

Subregulation 7.7.04AB(2)

Omit “963C(b)” (first occurring), substitute “963C(1)(b)”.

26

Subregulation 7.7.04AB(2) (note)

Omit “Note”, substitute “Note 1”.

27

Subregulation 7.7.04AB(2) (note)

Omit “963C(b)”, substitute “963C(1)(b)”.

28

At the end of subregulation 7.7.04AB(2)

Add:

Note 2: This regulation is also relevant to website disclosure information made available in accordance with Division 2A of Part 7.7 of the Act (see paragraph 943J(b) of the Act).

29

At the end of subregulation 7.7.05A(1)

Add:

Note: This regulation is also relevant to website disclosure information made available in accordance with Division 2A of Part 7.7 of the Act (see paragraph 943J(b) of the Act).

30

At the end of subregulation 7.7.05B(1)

Add:

Note: This regulation is also relevant to website disclosure information made available in accordance with Division 2A of Part 7.7 of the Act (see paragraph 943J(b) of the Act).

31

At the end of subregulation 7.7.05C(1)

Add:

Note: This subregulation is also relevant to website disclosure information made available in accordance with Division 2A of Part 7.7 of the Act (see paragraph 943J(a) of the Act).

32

At the end of subregulation 7.7.05C(2)

Add:

Note: This subregulation is also relevant to website disclosure information made available in accordance with Division 2A of Part 7.7 of the Act (see paragraph 943J(b) of the Act).

33

At the end of subregulation 7.7.06(1)

Add:

Note: This regulation (other than paragraph (5)(b) and subregulation (6)) is also relevant to website disclosure information made available in accordance with Division 2A of Part 7.7 of the Act (see paragraph 943J(b) of the Act).

34

At the end of regulation 7.7.06A

Add:

Note: This regulation is also relevant to website disclosure information made available in accordance with Division 2A of Part 7.7 of the Act (see paragraph 943J(b) of the Act).

35

At the end of subregulation 7.7.06B(1)

Add:

Note: This regulation is also relevant to website disclosure information made available in accordance with Division 2A of Part 7.7 of the Act (see paragraph 943J(b) of the Act).

36At the end of subregulation 7.7.07(1)

Add:

Note: This regulation is also relevant to website disclosure information made available in accordance with Division 2A of Part 7.7 of the Act (see paragraph 943J(b) of the Act).

37

At the end of subregulation 7.7.07(5)

Add:

Note: If website disclosure information is made available in accordance with Division 2A of Part 7.7 of the Act, the statement required by subparagraph (d)(ii) of this subregulation must set out that the client may request particulars of the remuneration (including commissions) or other benefits but that the request must be made before any financial service identified in the website disclosure information is provided to the client.

38

Paragraph 7.7.07A(1)(a)

After “the Financial Services Guide is given to the client”, insert “or the website disclosure information is made available”.

39

Paragraph 7.7.07A(1)(c)

After “the Financial Services Guide”, insert “or the website disclosure information”.

40

Subregulation 7.7.07A(2)

Repeal the subregulation, substitute:

  1. (2)

    A request under subregulation (1) must be made:

    1. (a)

      if the providing entity makes website disclosure information available in accordance with Division 2A of Part 7.7 of the Act—before any financial service identified in the website disclosure information is provided to the client; or

    2. (b)

      otherwise—within a reasonable time after the client is given the Financial Services Guide and before any financial service identified in the Guide is provided to the client.

41

Regulation 7.7.10AAA (note)

After “942C(8)”, insert “(Financial Services Guides) and section 943N (website disclosure information)”.

42

After regulation 7.7.10AD

Insert:

7.7.10ADAWebsite disclosure information

For the purposes of paragraph 951C(1)(c) of the Act, Part 7.7 of the Act applies as if section 943N of the Act were omitted and the following section were substituted:

“943NRecord of advice must be provided in certain circumstances

If:

  1. (a)

    the website disclosure information includes a statement to the effect that a client may request a record of further advice; and

  2. (b)

    the client is provided with further advice to which that statement applies; and

  3. (c)

    the client has not already been provided with a record of that advice;

the providing entity must comply with a request made in accordance with that statement for a record of that advice.

Note: Failure to comply with this subsection is an offence (see subsection 1311(1)).”

  1. 43

    Subregulation 7.7.10AE(3A) (at the end of note 2)

Add “(Financial Services Guides) and section 943N (website disclosure information) of the Act”.

44

Paragraph 9.4AB.02(2)(c)

Repeal the paragraph, substitute:

  1. (c)

    subsection 941B(4);

  2. (ca)

    subsection 943G(3);

  3. (cb)

    subsection 943H(4);

  4. (cc)

    subsection 943K(2);

  5. (cd)

    subsection 943L(2);

45

In the appropriate position in Part 10.52

Insert:

10.52.03Application—contraventions relating to website disclosure information

The amendments of subregulations 7.6.02A(2) and 9.4AB.02(2) made by Part 3 of Schedule 1 to the Treasury Laws Amendment (Delivering Better Financial Outcomes) Regulations 2024 apply in relation to conduct occurring wholly on or after the commencement of Part 3 of Schedule 1 to the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024.

Part 4Conflicted remuneration

Corporations Regulations 2001

46

Subregulations 7.7.09BC(2) and 7.7.09BD(2)

Omit “963C(b)” (wherever occurring), substitute “963C(1)(b)”.

47

Paragraph 7.7A.11C(1)(d)

Repeal the paragraph.

48

Subparagraph 7.7A.11C(2)(d)(ii)

Omit “products; or”, substitute “products.”.

49

Paragraph 7.7A.11C(2)(e)

Repeal the paragraph.

50

Paragraph 7.7A.11D(1)(d)

Repeal the paragraph.

51

Subparagraph 7.7A.11D(2)(d)(ii)

Omit “products; or”, substitute “products.”.

52

Paragraph 7.7A.11D(2)(e)

Repeal the paragraph.

53

Regulation 7.7A.12 (notes 2 and 3)

Repeal the notes.

54

Regulation 7.7A.12E

Repeal the regulation.

55

Paragraph 7.7A.12F(a)

Omit “963C(f)”, substitute “963C(1)(f)”.

56

Regulation 7.7A.12H

Repeal the regulation.

  1. 57

    Subregulation 7.7A.12I(3) (paragraph (a) of the definition of prescribed provision)

Omit “963B(1)(a), (b), (c) or (d)”, substitute “963B(1)(a), (b) or (ba)”.

  1. 58

    Subregulation 7.7A.12I(3) (paragraph (b) of the definition of prescribed provision)

Omit “963C(a), (b), (c), (d) or (e)”, substitute “963C(1)(a), (b), (c) or (d)”.

  1. 59

    Subregulation 7.7A.12I(3) (paragraph (b) of the definition of prescribed provision)

Omit “963C(f)”, substitute “963C(1)(f)”.

60

Regulation 7.7A.13

Omit “963C(b)(i)”, substitute “963C(1)(b)(i)”.

61

Regulation 7.7A.13 (note)

Omit “963C(b)”, substitute “963C(1)(b)”.

62

Subregulation 7.7A.14(1)

Omit “963C(c)(iii)”, substitute “963C(1)(c)(iii)”.

63

Subregulation 7.7A.14(2)

Omit “963C(c)(i)”, substitute “963C(1)(c)(i)”.

64

Subregulation 7.7A.14(2) (note)

Omit “963C(c)”, substitute “963C(1)(c)”.

65

Subregulation 7.7A.15(1)

Omit “963C(c)(iii)”, substitute “963C(1)(c)(iii)”.

66

Subregulation 7.7A.15(2)

Omit “963C(c)(i)”, substitute “963C(1)(c)(i)”.

67

Subregulation 7.7A.15(2) (note)

Omit “963C(c)”, substitute “963C(1)(c)”.

68

Paragraph 7.7A.15A(1)(a)

Omit “963C(f)”, substitute “963C(1)(f)”.

69

Paragraph 7.7A.15A(2)(c)

Omit “963C(c)(iii)”, substitute “963C(1)(c)(iii)”.

70

Subparagraph 7.8.11A(2)(b)(i)

Omit “963C(b)”, substitute “963C(1)(b)”.

71

Subparagraph 7.8.11A(2)(b)(ii)

Omit “963C(c)”, substitute “963C(1)(c)”.

72

In the appropriate position in Part 10.52

Insert:

10.52.04Application—repeal of benefits for employees of ADIs

  1. (1)

    The repeal of regulation 7.7A.12H by Part 4 of Schedule 1 to the Treasury Laws Amendment (Delivering Better Financial Outcomes) Regulations 2024 applies to a benefit given to a provider, under an arrangement, if:

    1. (a)

      the arrangement was entered into on or after the day (the deferred start day) that is 6 months after the commencement of Part 4 of Schedule 1 to the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024; or

    2. (b)

      all of the following apply:

      1. (i)

        the arrangement was varied on or after the deferred start day;

      2. (ii)

        the variation related to the giving of benefits under the arrangement;

      3. (iii)

        the benefit is given on or after the deferred start day.

  2. (2)

    The repeal of that regulation also applies to a benefit given to a provider, otherwise than under an arrangement, on or after the deferred start day.

Part 5Insurance commissions

Corporations Regulations 2001

73

Regulation 7.7A.12G

Before “A benefit”, insert “(1)”.

74

At the end of regulation 7.7A.12G

Add:

  1. (2)

    Section 963BB of the Act (about informed consent for insurance commissions) applies in relation to subregulation (1) in the same way it applies in relation to paragraph 963B(1)(a) of the Act.

75

Paragraph 9.4AB.02(2)(j)

Omit “section 963K”, substitute “subsection 963K(1)”.

76

In the appropriate position in Part 10.52

Insert:

10.52.05Application—informed consent for benefits given in relation to general insurance products

  1. (1)

    The amendments of regulation 7.7A.12G made by Part 5 of Schedule 1 to the Treasury Laws Amendment (Delivering Better Financial Outcomes) Regulations 2024 apply to benefits given on or after the commencement of Part 5 of Schedule 1 to the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024 in relation to the issue or sale of general insurance products on or after that commencement.

  2. (2)

    However, those amendments do not apply to benefits given in connection with the issue or sale of a general insurance product if:

    1. (a)

      the product is a renewal of another general insurance product; and

    2. (b)

      that other general insurance product was issued or sold before the commencement of that Part.

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