FIRST HOME SAVER ACCOUNTS ACT 2008 (REPEALED)

PART 7 - PRUDENTIAL PROVISIONS  

Division 4 - Other prudential provisions  

SECTION 124   Obligations of FHSA providers in relation to certain life policies  

124(1)    
This section applies if an FHSA provider that is a life insurance company provides an FHSA as a life policy that is an investment-linked contract.

124(2)    
In considering the specified class or group of assets (as mentioned in paragraph 14(4)(a) of the Life Insurance Act 1995 ) covered under the policy, the provider must have regard to the following matters:

(a) the extent to which the composition of the class or group exposes FHSA holders to risks from inadequate diversification;

(b) the:

(i) risk of a reduction in the value of the units to which the class or group relates; and

(ii) liquidity of the class or group;

in light of the purpose of the FHSA and the minimum term of the FHSA if the requirements in subparagraph 32(1)(c)(i) or (ii) are met;

(c) any other relevant matter.

124(3)    
To avoid doubt, if the life policy allows an FHSA holder to choose between different investment options specified by the FHSA provider, the provider must, in considering the class or group of assets covered under each of those options, also have regard to the matters mentioned in paragraphs (2)(a) to (c).