Corporations Amendment (Life Insurance Remuneration Arrangements) Act 2017 (6 of 2017)
Schedule 1 Amendments
Corporations Act 2001
13 After section 963B
Insert:
963BA Benefit ratio and clawback requirements
Benefit ratio requirements
(1) The benefit ratio requirements are satisfied in relation to a benefit given to a financial services licensee, or a representative of a financial services licensee, in relation to a life risk insurance product, or life risk insurance products, if the benefit ratio for the benefit for:
(a) the year in which the product or products are issued; and
(b) each year during which the product or products are continued;
is equal to or less than that determined by ASIC under subsection (2) as an acceptable benefit ratio for that year.
(2) ASIC may, by legislative instrument, determine an acceptable benefit ratio, or a way of working out an acceptable benefit ratio, for a benefit for a year.
Clawback requirements
(3) The clawback requirements are satisfied in relation to a benefit given to a financial services licensee, or a representative of a financial services licensee, in relation to a life risk insurance product, or life risk insurance products, if:
(a) the arrangement under which the benefit is payable includes an obligation to repay all or part of the benefit if:
(i) the product, or one of the products, is cancelled or is not continued, other than because a claim is made under the insurance policy or because other prescribed circumstances exist; or
(ii) the policy cost for the product, or one of the products, during a year or across 2 years is reduced, other than in prescribed circumstances;
within 2 years after the product is first issued to a retail client; and
(b) the amount to be repaid under the obligation is equal to or greater than the amount determined by ASIC under subsection (4) as an acceptable repayment.
(4) ASIC may, by legislative instrument, determine the amount, or a way of working out the amount, that is an acceptable repayment for the purposes of paragraph (3)(b).