Corporations Act 2001

CHAPTER 10 - TRANSITIONAL PROVISIONS  

PART 10.2 - TRANSITIONAL PROVISIONS RELATING TO THE FINANCIAL SERVICES REFORM ACT 2001  

Division 1 - Transitional provisions relating to the phasing-in of the new financial services regime  

Subdivision D - Treatment of people who carry on financial services businesses and their representatives  

SECTION 1434   SPECIAL LICENCES FOR INSURANCE MULTI-AGENTS DURING FIRST 2 YEARS AFTER FSR COMMENCEMENT  

1434(1)   [ ``insurance multi-agent'']  

For the purposes of this section, a person is an insurance multi-agent at a particular time if, at that time:

(a) the person is an insurance intermediary (but not an insurance broker), within the meaning of the Insurance (Agents and Brokers) Act 1984 as then in force; and

(b) the person has agreements with 2 or more different insurers under section 10 of that Act.

1434(2)   [ Provisions applying to licence application]  

If:

(a) a person who, immediately before the FSR commencement, is an insurance multi-agent applies in accordance with section 913A of the amended Corporations Act for a licence, during the period of 2 years starting on the FSR commencement; and

(b) the application is lodged at a time:

(i) when the person is still carrying on activities as agent for one or more of the insurers with whom, immediately before the FSR commencement, they had agreements as mentioned in paragraph (1)(b); or

(ii) that is not more than 6 months after the person ceased to so carry on activities as agent for any of those insurers; and

(c) their application includes a statement (in accordance with the requirements of the application form) to the effect that they want this section to apply to their application;

the following provisions apply:

(d) section 913B of the amended Corporations Act applies to their application as if the reference in paragraph 913B(1)(b) to section 912A did not include the obligations under paragraphs 912A(e) and (f);

(e) the licence condition required by subsection 914A(6) of the amended Corporations Act in relation to a licence granted pursuant to their application must specify, as the financial services that the licensee is authorised to provide:

(i) providing financial product advice in relation to risk insurance products and investment life insurance products; and

(ii) dealing in risk insurance products and investment life insurance products.

1434(3)   [ Effect of grant]  

If the application is granted, then:

(a) while the licence remains in force:

(i) paragraphs 912A(e) and (f) of the amended Corporations Act do not apply to the licensee and the financial services covered by the licence; and

(ii) sections 942B and 942C apply in relation to any Financial Services Guide provided by the licensee or an authorised representative of the licensee as if they included a requirement to include in the Guide a statement that the licensee is not bound by the obligations in paragraphs 912A(e) and (f) and that sets out what those obligations are; and

(b) the licence conditions cannot be varied so that the licence covers the licensee providing financial services other than those referred to in paragraph (2)(e); and

(c) the licence ceases to be in force (unless earlier revoked) at the end of the period of 2 years starting on the FSR commencement.