Corporations Regulations 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.7 - FINANCIAL SERVICE DISCLOSURE  

Division 5 - Other disclosure requirements  

REGULATION 7.7.20A   EXTENSION OF DISCLOSURE REQUIREMENTS TO WHOLESALE CLIENTS DEALING WITH CERTAIN UNAUTHORISED INSURERS  

7.7.20A(1)    
For paragraph 949B(1)(e) of the Act, a person must give a wholesale client the information set out in subregulation (3) for a financial service provided by that person to the wholesale client if:

(a)    

the service relates to an insurance contract that, because of subparagraph 8(2)(b)(ii) or (iii) of the Insurance Regulations 2024 , may be issued by an unauthorised foreign insurer (the insurer ); and

(b)    either:

(i) the person would be required to give a Statement of Advice if the service were provided to a retail client; or

(ii) the contract is offered or issued to the wholesale client.

Note: Subparagraphs 8(2)(b)(ii) and (iii) of the Insurance Regulations 2024 apply in relation to insurance contracts for:

(a) atypical risks; and

(b) risks that cannot reasonably be placed in Australia.

7.7.20A(2)    
(Repealed by FRLI No F2024L00199, Sch 2 [ 8] (effective 1 March 2024).)

7.7.20A(3)    
The information is:

(a)    a statement that the insurer is not authorised under the Insurance Act 1973 to conduct insurance business in Australia; and

(b)    a statement that the insurer is not subject to the provisions of the Insurance Act 1973 , which establishes a system of financial supervision of general insurers in Australia; and

(c)    

a statement that the wholesale client should consider whether to obtain further information, including:

(i) the country in which the insurer is incorporated, and whether the country has a system of financial supervision of insurers; and

(ii) the paid up capital of the insurer; and

(iii) which country ' s laws will determine disputes in relation to the financial product; and

(d)    

a statement that the insurer cannot be a declared general insurer for the purpose of Part VC of the Insurance Act 1973 , and, if the insurer becomes insolvent, the wholesale client will not be covered by the financial claims scheme provided under Part VC of that Act.