Corporations Regulations 2001
CHAPTER 7
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FINANCIAL SERVICES AND MARKETS
PART 7.1
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PRELIMINARY
Division 1
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General
REGULATION 7.1.08AA
MEANING OF FINANCIAL PRODUCT ADVICE
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ADVICE THAT IS NOT REGARDED AS A NECESSARY PART OF PROVIDING CLAIMS HANDLING AND SETTLING SERVICES
Advice about how to structure or use insurance claim payouts
7.1.08AA(1)
For the purposes of paragraph 766B(7B)(b) of the Act, giving a recommendation or statement of opinion, or a report of either of those things, cannot reasonably be regarded as a necessary part of providing a claims handling and settling service if the recommendation, statement or report relates to: (a) how an amount to be paid to a person in settlement of a claim under an insurance product should be structured; or (b) the management or use of an amount paid, or to be paid, to a person in settlement of a claim under an insurance product.
Advice about other insurance products or financial products
7.1.08AA(2)
For the purposes of paragraph 766B(7B)(b) of the Act, giving a recommendation or statement of opinion, or a report of either of those things, cannot reasonably be regarded as a necessary part of providing a claims handling and settling service if the recommendation, statement or report: (a) is given in response to a claim, or potential claim, made under an insurance product; and (b) relates to other insurance products not held by the person making the claim or financial products.
View history note
Hide history note[ CCH Note: Pursuant to the Corporations Amendment Regulations 2001 (No 4) (SR 2001 No 319) effective 11 March 2002, Chapter 7 (Securities) comprising reg 7.1.01 - 7.15.01 and Chapter 8 (The futures industry) comprising reg 8.1.01 - 8.7.03 are replaced by a new Chapter 7 (Financial services and markets) comprising reg 7.1.01 - 7.12.01. As the subject matter of the new Chapter 7 relates to the new financial services reform regime, " inserted " has been used in the history notes for each provision, and all references to the former provisions have been removed.]
Advice about how to structure or use insurance claim payouts
7.1.08AA(1)
For the purposes of paragraph 766B(7B)(b) of the Act, giving a recommendation or statement of opinion, or a report of either of those things, cannot reasonably be regarded as a necessary part of providing a claims handling and settling service if the recommendation, statement or report relates to: (a) how an amount to be paid to a person in settlement of a claim under an insurance product should be structured; or (b) the management or use of an amount paid, or to be paid, to a person in settlement of a claim under an insurance product.
Advice about other insurance products or financial products
7.1.08AA(2)
For the purposes of paragraph 766B(7B)(b) of the Act, giving a recommendation or statement of opinion, or a report of either of those things, cannot reasonably be regarded as a necessary part of providing a claims handling and settling service if the recommendation, statement or report: (a) is given in response to a claim, or potential claim, made under an insurance product; and (b) relates to other insurance products not held by the person making the claim or financial products.
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