Check whether a retail holder was given confirmation of a transaction

Key facts

Human involvement

Yellow · Close supervision

How AI is used

For a transaction on a financial product acquired as a retail client, record who acquired it, the date of the transaction, whether it is the acquisition, a later dealing, or a disposal, and the date any confirmation was given or a standing facility was made available. Record whether the holder had agreed to the facility, or had been informed of it and had not refused it. Do not decide that confirmation was not required, and do not decide that the content was sufficient.

What the lawyer must review

The lawyer decides whether section 1017F of the Corporations Act 2001 (Cth) required confirmation and whether it was given. Subsection (1) applies where the holder acquired the product as a retail client, the transaction is the acquisition or a transaction while the holder holds the product, including a disposal, the transaction is not excused by subsection (4), the holder has not waived confirmation in accordance with regulations made for paragraph (9)(d), and the product was offered or acquired in this jurisdiction or the transaction takes place in this jurisdiction. The note says the section extends to securities, citing section 1010A, which was not opened. Subsection (2) requires the responsible person in the table to provide confirmation in accordance with subsections (5) to (8). Item 1 is the acquisition, unless it was a sale under an offer to which section 1012C applies, and the obligation is the issuer's. Item 2 is an acquisition that was such a sale, and the obligation is the seller's. Item 3 is any other transaction while the holder holds the product, other than a disposal, and the obligation is the issuer's. Item 4 is a disposal, and the person is the person specified in regulations, which were not opened. Failure to comply with subsection (2) is an offence under subsection 1311(1). Subsection (3) includes, while the product is held, a variation of its terms unless subsection (4) says confirmation is not required, and a redemption or surrender. Subsection (4) lists transactions that do not require confirmation, including an agreed additional contribution, a contribution driven by an external factor such as salary, an inflation index or a tax or levy, a variation of rights attaching to a security, specified deposit-product movements, a variation of the terms of all products in the class, and transactions specified in regulations. The note says a defendant bears an evidential burden on subsection (4). Subsection (5) requires confirmation as soon as is reasonably practicable after the transaction, either to the holder or, subject to subsection (5A), by access to a facility through which the holder can get the confirmation. An arrangement under which the holder must ask another person for a confirmation is not such a facility. Subsection (5A) allows the facility only if the holder agreed, or was informed in accordance with any applicable regulations and has not advised that the holder does not agree. Subsection (6) requires the confirmation to be in writing, electronic, or another form under regulations, provided directly or through another person, or through the facility. Subsection (7) requires the information the responsible person reasonably believes the holder needs, having regard to information already received, to understand the nature of the transaction. Subsection (8) requires identification of the issuer and the holder, identification of any other person required to give it, the date, a description, any amount paid or payable by the holder subject to regulations, any taxes and stamp duties subject to regulations, and any other prescribed details. Subsection (9) allows regulations to modify who confirms, how, and the content, and to provide for waiver. Those regulations were not opened. The lawyer decides whether a subsection (4) exclusion or a waiver applies, and whether the content meets subsections (7) and (8).

Written for / version

US