Country Manual Products – Australia out of EEA – BRP Update 2024
BRP has updated its Country Manual Products for Australia
| Source of changes | Answers |
|---|---|
| Law / Regulation | Yes |
| New Position of the Authorities | No |
| Evolution of Expert’s Interpretation | Yes |
Definitions & Concepts, Regulatory Overview and Behaviour Template
The Country Manual has been reviewed to ensure that the content of all the documents remains accurate and up to date.
Material changes
The changes/modifications are as follows:
- In alignment with the Country Manual Private Banking (CM PB), the provision of investment services and any product-related marketing activities are no longer permitted onshore in Australia (at target). Accordingly, the Country Manual Products Behaviour Template (CM P BT) now answers the relevant scenarios with “NO”.
- In further alignment with the CM PB, the provision of macroeconomic information/reports as well as investment research and financial analysis documents/reports is now only permitted onshore in Australia (at target) on an occasional basis.
- The provision of investment advice generally triggers the “local distribution rules” and local licensing requirements. However, there is an exemption from licensing requirements for the provision of investment advice via remote means of communication into Australia in presence of an ongoing advisory agreement is established in compliance with Australian cross-border rules (i.e. no prior solicitation in/into Australia). On the other hand, foreign (unregistered) financial products which are distributed to investors in Australia are still subject to the disclosure requirements in Chapter 6 of the Corporations Act in relation to public offers of financial products. Accordingly, the CM P BT therefore answers the relevant scenarios with “Grey zone/YES – If covered by the advisory agreement requested by the client. Private Placement Exemption Securities/CIS”.
- Cross-border communications into Australia (by e-mail, phone, fax, etc.) generally trigger the “local distribution rules” regardless of the type of communication (unless an exemption applies). In addition, in alignment with the CM PB, the active provision of investment advice as well as any active product-related marketing activities outside the scope of an advisory agreement (spot advice) to Retail Investors on a cross-border basis into Australia are no longer permitted and the CM P BT therefore answers the relevant scenarios with “NO”.
- Furthermore, the prohibition on the sale and distribution of Binary Options to Retail Investors is now reflected in the CM P BT. The same applies to the restrictions on the sale and distribution of CFDs to Retail Investors.
Non-material changes
Some comments and content have been redrafted in the CM, without introducing substantive changes to better reflect the evolving interpretation of the regulatory framework.
For more information, please contact us: info@brpsa.com
Geneva, April 29th 2024