2010‑2011

The Parliament of the
Commonwealth of Australia

HOUSE OF REPRESENTATIVES/THE SENATE

EXPOSURE DRAFT
If you have any comments on this exposure draft, they should be sent to:

The General Manager
Retail Investor Division
The Treasury
Langton Crescent
PARKES ACT 2600
Email: futureofadvice@treasury.gov.au
 
By Friday, 16 September 2011.	

Corporations Amendment (Future of Financial Advice) Bill 2011

No.      , 2011

(Treasury)

A Bill for an Act to amend the law in relation to financial advice, and for related purposes

Contents
1	Short title	1
2	Commencement	1
3	Schedule(s)	1
Schedule 1—Amendments	1
Corporations Act 2001	1

A Bill for an Act to amend the law in relation to financial advice, and for related purposes
The Parliament of Australia enacts:
1  Short title
		This Act may be cited as the Corporations Amendment (Future of Financial Advice) Act 2011.
2  Commencement
	(1)	Each provision of this Act 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	
Provision(s)	Commencement	Date/Details	
1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table	The day this Act receives the Royal Assent.		
2.  Schedule 1	1 July 2012.	1 July 2012	
Note: 	This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
	(2)	Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3  Schedule(s)
		Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments
  
Corporations Act 2001
1  Section 760B (after table item 7)
Insert:
7A	7.7A	best interests obligations
charging ongoing fees to clients	
2  Paragraph 913B(1)(b)
Repeal the paragraph, substitute:
	(b)	ASIC has no reason to believe that the applicant is likely to contravene the obligations that will apply under section 912A if the licence is granted; and
3  Paragraph 915C(1)(aa)
Repeal the paragraph, substitute:
	(aa)	ASIC has reason to believe that the licensee is likely to contravene their obligations under section 912A;
4  Paragraph 920A(1)(ba)
Repeal the paragraph, substitute:
	(ba)	ASIC has reason to believe that the person is likely to contravene their obligations under section 912A; or
5  After paragraph 920A(1)(c)
Insert:
	(d)	ASIC has reason to believe that the person is not of good fame and character; or
	(da)	ASIC has reason to believe that the person is not adequately trained, or is not competent, to provide a financial service or financial services; or
6  Paragraph 920A(1)(f)
Repeal the paragraph, substitute:
	(f)	ASIC has reason to believe that the person is likely to contravene a financial services law; or
7  At the end of subsection 920A(1)
Add:
	(g)	the person has been involved in the contravention of a financial services law by another person; or
	(h)	ASIC has reason to believe that the person is likely to become involved in the contravention of a financial services law by another person.
8  After subsection 920A(1)
Insert:
	(1A)	In considering whether, at a particular time, there is reason to believe that a person is not of good fame or character, ASIC must (subject to Part VIIC of the Crimes Act 1914) have regard to:
	(a)	any conviction of the person, within 10 years before that time, for serious fraud; and
	(b)	whether the person has held an Australian financial services licence that was suspended or cancelled; and
	(c)	whether a banning order or disqualification order under Division 8 has previously been made against the person; and
	(d)	any other matter ASIC considers relevant.
Note:	Part VIIC of the Crimes Act 1914 includes provisions that, in certain circumstances, relieve persons from the requirement to disclose spent convictions and require persons aware of such convictions to disregard them.
	(1B)	To avoid doubt, a person contravenes a financial services law if a person fails to comply with a duty imposed under that law, even if the provision imposing the duty is not an offence or a civil penalty provision.
9  Subdivision B of Division 3 of Part 7.7
Repeal the Subdivision.
10  Paragraph 947B(2)(f)
Omit “section 945B”, substitute “section 961J”.
11  Paragraph 947C(2)(g)
Omit “section 945B”, substitute “section 961J”.
12  Paragraph 953B(1)(c)
Omit “945A, 945B,”.
13  After Part 7.7
Insert:
Part 7.7A—Best interests obligations and fees
Division 1—Preliminary
960  Definitions
		In this Part:
basic banking product has the meaning given by section 961F.
disclosure day has the meaning given by section 962F.
fee disclosure statement has the meaning given by subsection 962E(1).
ongoing fee has the meaning given by subsection 962A(2).
ongoing fee arrangement has the meaning given by subsection 962A(1).
reasonable investigation has the meaning given by section 961E, as affected by subsection 961G(3).
reasonably apparent has the meaning given by section 961D.
renewal notice has the meaning given by subsection 962G(2).
renewal notice day has the meaning given by subsection 962H(1).
renewal period has the meaning given by subsection 962H(2).
representative of a financial services licensee has the same meaning as in Part 7.6 (see section 910A).
responsible licensee, in relation to a contravention of a provision of Division 2, has the meaning given by section 961R.
960A  No contracting out
		A condition of a contract or other arrangement is void if it provides that a party to the contract is required or bound to waive any right under this Part, or waive the compliance with any requirement of this Part.
Division 2—Best interests obligations
Subdivision A—Preliminary
961  Application of this Division
	(1)	This Division applies in relation to the provision of personal advice (the advice) to a person (the client) as a retail client.
	(2)	The individual who provides the advice is referred to in this Division as the provider.
	(3)	If 2 or more individuals provide the advice, each of those individuals is referred to in this Division as the provider.
	(4)	An individual is a provider for the purposes of this Division even if the individual is a representative of a financial services licensee and provides the advice on behalf of that licensee.
	(5)	If it is not reasonably possible to identify the individual, or individuals, who provide the advice, the person who provides the advice is the provider for the purposes of this Division.
	(6)	A person who offers personal advice through a computer program is taken to have provided the advice, and is the provider for the purposes of this Division.
961A  Application to a financial services licensee acting as an authorised representative
		If a financial services licensee is acting as an authorised representative of another financial services licensee in relation to the advice, this Part applies to the first licensee in relation to the advice in that licensee’s capacity as an authorised representative (rather than in the capacity of licensee).
961B  Obligations under this Division in addition to other obligations
		The obligations imposed on the provider under this Division are in addition to any other obligations to which the provider is subject under any other law.
Subdivision B—Provider must act in the best interests of the client
961C  Provider must act in the best interests of the client
	(1)	The provider must act in the best interests of the client when giving the advice.
	(2)	The steps that the provider must take in acting in the best interests of the client include, but are not limited to:
	(a)	identifying the objectives, financial situation and needs of the client that are disclosed to the provider by the client through instructions; and
	(b)	identifying the subject matter of the advice that has been requested by the client; and
	(c)	where it is reasonably apparent that information relating to the objectives, financial situation and needs of the client that is given by the client in instructions is:
	(i)	incomplete for the purposes of providing the advice on the subject matter requested; or
	(ii)	inaccurate;
		make reasonable inquiries to obtain complete and accurate information; and
	(d)	where it is reasonably apparent that the client’s objectives could be better achieved, or the client’s needs better met, if the client obtained advice on another subject matter, either in addition to or in substitution for the advice requested, advising the client in writing of that fact; and
	(e)	assessing whether the provider has the expertise required to give the client advice on the subject matter requested and, if not, declining to give advice; and
	(f)	assessing whether the client’s objectives could be achieved, and needs met, through means other than the acquisition of financial products; and
	(g)	either:
	(i)	conducting a reasonable investigation into the financial products that might achieve the objectives and meet the needs of the client of which the provider is aware and assessing the information gathered in the investigation; or
	(ii)	if another individual has made such an investigation and the provider has access to the results of the investigation—assessing the information gathered in the investigation; and
	(h)	if the provider proposes to advise the client to acquire a financial product in substitution for or in addition to another financial product:
	(i)	assessing the disadvantages (including risk and increased complexity) in acquiring the product; and
	(ii)	weighing them against the advantages of not acquiring the product; and
	(iii)	advising the client to acquire the product only if, having weighed those disadvantages against the advantages, it is reasonable to conclude that the client’s objectives could be better achieved, and the client’s needs better met, if the client acquired the product; and
	(i)	basing all judgements in advising the client on the objectives, financial situation and needs of the client.
	(3)	If:
	(a)	the subject matter of the advice requested by the client is solely a basic banking product; and
	(b)	the provider is an agent or employee of an Australian ADI;
the provider satisfies the duty in subsection (1) if the provider takes the steps mentioned in paragraphs (2)(a), (b) and (c).
Note:	A responsible licensee or an authorised representative may contravene a civil penalty provision if a provider fails to comply with this section (see sections 961M and 961S). The provider may be subject to a banning order (see section 920A).
961D  When is something reasonably apparent?
		Something is reasonably apparent if it would be apparent to a person with a reasonable level of expertise in the subject matter of the advice that has been requested by the client, were that person exercising care and objectively assessing the information given to the provider by the client.
961E  What is a reasonable investigation?
	(1)	A reasonable investigation into the financial products that might achieve the objectives and meet the needs of the client does not require an investigation into every financial product available.
	(2)	However, if the client requests the provider to consider a specified financial product, or financial products of a specified class, a reasonable investigation into the financial products that might achieve the objectives and meet the needs of the client includes an investigation into that financial product, or financial products of that class.
961F  What is a basic banking product?
		Each of the following is basic banking product:
 	(a)	a basic deposit product;
	(b)	a facility for making non‑cash payments (see section 763D) that is related to a basic deposit product;
	(c)	an FHSA product of a kind mentioned in subparagraph (c)(i) of the meaning of FHSA in section 8 of the First Home Saver Accounts Act 2008 (first home saver accounts);
	(d)	a facility for providing travellers’ cheques;
	(e)	any other product prescribed by regulations for the purposes of this paragraph.
961G  Approved product lists
Approved product list maintained by licensee
	(1)	This section applies where:
	(a)	the provider is a financial services licensee or a representative of a financial services licensee; and
	(b)	the licensee maintains a list of financial products that it recommends, or authorises its representatives to recommend; and
	(c)	it is reasonably apparent that there is no product on that list that would achieve the objectives and meet the needs of the client.
Approved product list maintained by authorised representative
	(2)	This section also applies where:
	(a)	the provider is an authorised representative of a financial services licensee, or an employee of an authorised representative of a financial services licensee; and
	(b)	the authorised representative maintains a list of financial products that it recommends, or authorises its employees to recommend; and
	(c)	it is reasonably apparent that there is no product on that list that would achieve the objectives and meet the needs of the client.
Reasonable investigation
	(3)	The requirement that the provider conduct a reasonable investigation into the financial products that might achieve the objectives and meet the needs of the client does not require the provider to investigate products that are not on the list.
No recommendation to be made from list
	(4)	However, to satisfy the duty under section 961C to act in the best interests of the client the provider:
	(a)	must advise the client in writing that the provider cannot recommend a product from the list that might achieve the objectives and meet the needs of the client; and
	(b)	must not advise the client to acquire a product that is on the list.
Subdivision C—Resulting advice must be appropriate to the client
961H  Resulting advice must be appropriate to the client
		The provider must only provide the advice to the client if it would be reasonable to conclude that the advice is appropriate to the client, had the provider satisfied the duty under section 961C to act in the best interests of the client.
Note:	A responsible licensee or an authorised representative may contravene a civil penalty provision if a provider fails to comply with this section (see sections 961M and 961S). The provider may be subject to a banning order (see section 920A).
Subdivision D—Where resulting advice still based on incomplete or inaccurate information
961J  Resulting advice still based on incomplete or inaccurate information
	(1)	If it is reasonably apparent that information relating to the objectives, financial situation and needs of the client on which the advice is based is incomplete or inaccurate, the provider must, in accordance with subsections (2) and (3), warn the client that:
	(a)	the advice is, or may be, based on incomplete or inaccurate information relating to the client’s relevant personal circumstances; and
	(b)	because of that, the client should, before acting on the advice, consider the appropriateness of the advice, having regard to the client’s objectives, financial situation and needs.
	(2)	The warning must be given to the client at the same time as the advice is provided and, subject to subsection (3), by the same means as the advice is provided.
	(3)	If a Statement of Advice is the means by which the advice is provided, or is given to the client at the same time as the advice is provided, the warning may be given by including it in the Statement of Advice.
Note:	The Statement of Advice must at least contain a record of the warning (see paragraphs 947B(2)(f) and 947C(2)(g)).
	(4)	If 2 or more individuals provide the advice and one of those individuals provides a warning in accordance with this section, the other individuals are taken to have complied with this section.
	(5)	Nothing in this section affects the duty of the provider under section 961C to make reasonable inquiries to obtain complete and accurate information (see paragraph 961C(2)(c)).
Note:	A responsible licensee or an authorised representative may contravene a civil penalty provision if a provider fails to comply with this section (see sections 961M and 961S). The provider may be subject to a banning order (see section 920A).
Subdivision E—Provider to give priority to the client’s interests
961K  Conflict between client’s interests and those of provider
		If there is a conflict between the interests of the client and the provider’s interests, the provider must give priority to the client’s interests when giving the advice.
Note:	A responsible licensee or an authorised representative may contravene a civil penalty provision if a provider fails to comply with this section (see sections 961M and 961S). The provider may be subject to a banning order (see section 920A).
961L  Conflict between client’s interests and those of licensee or authorised representative
		If the provider knows, or reasonably ought to know, that there is a conflict between the interests of the client and the interests of:
	(a)	a financial services licensee of whom the provider is a representative; or
	(b)	an authorised representative of whom the provider is an employee;
the provider must give priority to the client’s interests when giving the advice.
Note:	A responsible licensee or an authorised representative may contravene a civil penalty provision if a provider fails to comply with this section (see sections 961M and 961S). The provider may be subject to a banning order (see section 920A).
Subdivision F—Responsibilities of licensee and authorised representative under this Division
961M  Civil penalty provision—sections 961C, 961H, 961J, 961K and 961L
	(1)	A financial services licensee contravenes this section if the licensee contravenes section 961C, 961H, 961J, 961K or 961L.
Note:	This subsection is a civil penalty provision (see section 1317E).
	(2)	A financial services licensee contravenes this section if:
	(a)	a representative, other than an authorised representative, of the licensee contravenes section 961C, 961H, 961J, 961K or 961L; and
	(b)	the licensee is the, or a, responsible licensee in relation to that contravention (see section 961R).
Note:	This subsection is a civil penalty provision (see section 1317E).
961N  Licensees must ensure compliance
		A financial services licensee must take reasonable steps to ensure that representatives of the licensee comply with sections 961C, 961H, 961J, 961K and 961L.
Note:	This subsection is a civil penalty provision (see section 1317E).
961P  Civil action for loss or damage
	(1)	If the client suffers loss or damage because of a contravention of a provision of this Division, the client may recover the amount of the loss or damage by action against one or more of the following persons, whether or not that person (or anyone else) has been convicted of an offence in respect of the matter:
	(a)	if the person who contravenes the provision is a financial services licensee—that licensee;
	(b)	if the person who contravenes the provision is a representative of a financial services licensee, or 2 or more financial services licensees—the, or a, responsible licensee in relation to the contravention (see section 961R).
	(2)	An action under subsection (1) may be begun at any time within 6 years after the day on which the cause of action arose.
	(3)	This section does not affect any liability that a person has under any other law.
961Q  Additional powers of court to make orders
	(1)	The court dealing with an action under subsection 961P(1) may, in addition to awarding loss or damage under that subsection and if it thinks it necessary in order to do justice between the parties:
	(a)	make an order declaring void a contract entered into by the client for or relating to a financial product or a financial service; and
	(b)	if it makes an order under paragraph (a)—make such other order or orders as it thinks are necessary or desirable because of that order.
	(2)	Without limiting paragraph (1)(b), an order under that paragraph may include either or both of the following:
	(a)	an order for the return of money paid by a person;
	(b)	an order for the payment of an amount of interest specified in, or calculated in accordance with, the order.
961R  Responsible licensee
		For the purposes of this Part, the, or a, responsible licensee, in relation to a contravention of a provision of this Division, is:
	(a)	if the person who contravenes the provision is a representative of only one financial services licensee—that financial services licensee; or
	(b)	if the person who contravenes the provision is a representative of more than one financial services licensee:
	(i)	if, under the rules in section 917C, one of those licensees is responsible for the person’s conduct—that licensee; or
	(ii)	if, under the rules in section 917C, 2 or more of those licensees are jointly and severally responsible for the person’s conduct—each of those licensees.
Subdivision G—Responsibilities of authorised representatives
961S  Civil penalty provision—sections 961C, 961H, 961J, 961K and 961L
	(1)	An authorised representative of a financial services licensee contravenes this section if the authorised representative contravenes section 961C, 961H, 961J, 961K or 961L.
Note:	This subsection is a civil penalty provision (see section 1317E).
	(2)	Subsection (1) does not apply if:
	(a)	the licensee had provided the authorised representative with information or instructions about the requirements to be complied with in relation to the giving of personal advice; and
	(b)	the authorised representative’s failure to comply with section 961C, 961H, 961J, 961K or 961L occurred because the representative was acting in reliance on that information or those instructions; and
	(c)	the representative’s reliance on that information or those instructions was reasonable.
Division 3—Charging ongoing fees to clients
962  Application of this Division
	(1)	This Division applies in a case where:
	(a)	a financial services licensee, or an authorised representative of a financial services licensee, enters into an ongoing fee arrangement with another person (the client); and
	(b)	the arrangement has not been terminated for any reason.
	(2)	This Division also applies in a case where:
	(a)	the rights of a financial services licensee, or an authorised representative, under an ongoing fee arrangement are assigned to another person; and
	(b)	the arrangement has not been terminated for any reason.
	(3)	However, this Division only applies where:
	(a)	the client has not been provided with financial product advice as a retail client by the financial services licensee or the authorised representative before the commencing day; and
	(b)	the client enters into the ongoing fee arrangement on or after the commencing day.
	(4)	In this section, the commencing day is the day on which this Part commences.
962A  Ongoing fee arrangement, ongoing fee and fee recipient
	(1)	An ongoing fee arrangement is an arrangement under which:
	(a)	a person to whom a financial services licensee, or a representative of a financial services licensee, provides financial product advice as a retail client, agrees to pay a fee (however described or structured); and
	(b)	the fee cannot reasonably be characterised as relating to advice that, at the time the arrangement is entered into, has already been given.
	(2)	The fee is referred to in this Division as an ongoing fee.
	(3)	The person to whom the client is liable to pay the ongoing fee under the ongoing fee arrangement is referred to in this Division as the fee recipient.
962B  Client may terminate arrangement at any time
	(1)	It is a condition of the ongoing fee arrangement that the client may terminate the arrangement at any time.
	(2)	Any condition of the ongoing fee arrangement, or any other arrangement, that requires the client to pay an amount on terminating the ongoing fee arrangement is void to the extent that the amount exceeds the sum of:
	(a)	any liability that the client has accrued but not satisfied under the ongoing fee arrangement before the termination; and
	(b)	the costs of the fee recipient incurred solely and directly because of the termination.
962C  Client not liable to pay fee if this Division not complied with
	(1)	It is a condition of the ongoing fee arrangement that the client is not liable to pay the ongoing fee if section 962D (the disclosure obligation) or section 962G ( the renewal notice obligation) has not been complied with in relation the ongoing fee arrangement, whether by the current or a previous fee recipient.
	(2)	The client is not taken to have waived the client’s rights under this section, or entered into a new ongoing fee arrangement, if the client makes a payment of an ongoing fee after a failure to comply with section 962D or section 962G in relation to the ongoing fee arrangement.
	(3)	Any ongoing fee that the client has paid to a fee recipient after there has been a failure to comply with section 962D or section 962G (whether by that or another fee recipient) must be refunded by that fee recipient to the client if the client requests the fee recipient to do so.
962D  Fee recipient must give fee disclosure statement
	(1)	The current fee recipient must, at least 30 days before the disclosure day, give the client a fee disclosure statement.
	(2)	The regulations may provide that subsection (1) does not apply in a particular situation.
962E  Fee disclosure statements
	(1)	A fee disclosure statement is a statement in writing that includes the information required under this section.
	(2)	The following information is required for a fee disclosure statement, subject to subsection (3):
	(a)	the amount of the fee paid by the client in the 12 months immediately preceding the disclosure day, expressed in Australian dollars unless an alternative is provided in the regulations;
	(b)	the amount of the fee that the current fee recipient anticipates that the client will pay in the 12 months beginning on the disclosure day, expressed in Australian dollars unless an alternative is provided in the regulations;
	(c)	details of the services that the client was entitled to receive from the current and any previous fee recipient under the arrangements during the 12 months immediately preceding the disclosure day;
	(d)	details of the services that the client received from the current and any previous fee recipient during the 12 months immediately preceding the disclosure day;
	(e)	details of the services that the client is entitled to receive from the current fee recipient under the arrangement during the 12 months beginning on the disclosure day;
	(f)	details of the services that the current fee recipient anticipates that the client will receive from that fee recipient during the 12 months beginning on the disclosure day.
	(3)	The regulations may provide either or both of the following:
	(a)	that particular information is not required for a fee disclosure statement, either in a particular situation or generally;
	(b)	a more detailed statement of the information that is required for a fee disclosure statement, either in a particular situation or generally.
962F  Disclosure day
		The disclosure day is:
	(a)	if no fee disclosure statement has been given to the client in relation to the ongoing fee arrangement since the arrangement was entered into—the anniversary of the day on which the arrangement was entered into; and
	(b)	if a fee disclosure statement in relation to the ongoing fee arrangement has been given to the client since the arrangement was entered into—the anniversary of the day on which a disclosure statement in relation to the arrangement was last given to the client.
962G  Fee recipient must give renewal notice
	(1)	The current fee recipient must, at least 30 days before the renewal notice day for an ongoing fee arrangement, send the client a renewal notice and a fee disclosure statement in relation to the arrangement.
	(2)	A renewal notice is a notice in writing that includes:
	(a)	a statement that the client may renew the ongoing fee arrangement by giving the current fee recipient notice in writing of the election; and
	(b)	a statement that the ongoing fee arrangement will terminate, and no further advice will be provided or fee charged under it, if the client does not elect to renew the arrangement; and
	(c)	a statement that the client will be taken to have elected not to renew the arrangement if the client does not give the current fee recipient notice in writing of an election to renew before the end of the renewal period; and
	(d)	a statement that the renewal period is a period of 30 days beginning on the day on which the renewal notice and fee disclosure statement is given to the client.
	(3)	The regulations may provide that subsection (1) does not apply in a particular situation.
962H  Renewal notice day and renewal period
	(1)	The renewal notice day for an ongoing fee arrangement means:
	(a)	if the arrangement has not previously been renewed—the second anniversary of the day on which the arrangement was entered into; and
	(b)	if the arrangement has previously been renewed, the second anniversary of the last day on which the arrangement was renewed.
	(2)	The renewal period for an ongoing fee arrangement is a period of 30 days beginning on the day on which the current fee recipient gives the client a renewal notice and a fee disclosure statement.
962J  If client notifies fee recipient that client does not wish to renew
		If the client notifies the current fee recipient in writing within the renewal period for the ongoing fee arrangement that the client does not wish to renew the arrangement, the arrangement terminates at the end of a further period of 30 days after the end of the renewal period.
962K  If client does not notify fee recipient that client wishes to renew
		If the client does not notify the current fee recipient in writing within the renewal period for the ongoing fee arrangement that the client wishes to renew the arrangement, the arrangement terminates at the end of a further period of 30 days after the end of the renewal period.
962L  Civil penalty provision—charging ongoing fees after termination under section 962J or 962K
		If an ongoing fee arrangement terminates under section 962J or 962K, the current fee recipient must not continue to charge the ongoing fee.
Note:	This subsection is a civil penalty provision (see section 1317E).
962M  Effect of termination
		To avoid doubt, if, under an ongoing fee arrangement, the continued provision of a service to the client by the fee recipient is dependent on the continued payment of an ongoing fee, on termination of the ongoing fee arrangement, the obligation to continue to provide the service also terminates.
14  Before paragraph 1317E(jaa)
Insert:
	(jaac)	section 961M (financial services licensee responsible for breach of certain best interests duties);
	(jaad)	section 961N (financial services licensee to ensure compliance with certain best interests duties);
	(jaae)	section 961S (authorised representative responsible for breach of certain best interests duties);
	(jaaf)	section 962L (charging ongoing fee after termination of ongoing fee arrangement);
15  After subsection 1317G(1D)
Insert:
Best interests obligations
	(1E)	A Court may order a person to pay the Commonwealth a pecuniary penalty if:
	(a)	a declaration of contravention by the person has been made under section 1317E; and
	(b)	the contravention is of one of the following provisions:
	(i)	section 961M (financial services licensee responsible for breach of certain best interests duties);
	(ii)	section 961N (financial services licensee to ensure compliance with certain best interests duties);
	(iii)	section 961S (authorised representative responsible for breach of certain best interests duties);
	(iv)	section 962L (charging ongoing fee after termination of ongoing fee arrangement).
	(1F)	The maximum amount that the court may order the person to pay for contravening a provision mentioned in subparagraph (1E)(b)(i), (ii) or (iii) is:
	(a)	$200,000 for an individual; or
	(b)	$1 million for a body corporate.
	(1G)	The maximum amount that the court may order the person to pay for contravening a provision mentioned in subparagraph (1E)(b)(iv) is:
	(a)	$50,000 for an individual; or
	(b)	$250,000 for a body corporate.
16  Table items 270A, 270B and 270C of Schedule 3
Repeal the items.
17  At the end of Chapter 10
Add:
Part 10.18—Transitional provisions relating to the Corporations Amendment (Future of Financial Advice) Act 2011
  
1526  Definitions
		In this Part:
amending Act means the Corporations Amendment (Future of Financial Advice) Act 2011.
commencing day means the day on which Schedule 1 to the amending Act commences.
1527  Application of best interests obligations
		Division 2 of Part 7.7A, as inserted by item 13 of Schedule 1 to the amending Act, applies in relation to the provision of personal advice to a person as a retail client on or after the commencing day (whether or not the request for advice was made before the commencing day).