Corporations Regulations 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.7A - BEST INTERESTS OBLIGATIONS AND REMUNERATION  

Note: Regulations 7.7A.01 to 7.7A.04 are reserved for future use.

Division 4 - Conflicted remuneration  

Subdivision 1 - Benefits in relation to life risk insurance products that are conflicted remuneration  

REGULATION 7.7A.11D   CIRCUMSTANCES IN WHICH BENEFITS IN RELATION TO DEALINGS IN LIFE RISK INSURANCE PRODUCTS ARE NOT CONFLICTED REMUNERATION  

Monetary benefits

7.7A.11D(1)    
Despite subregulation 7.7A.11B(2) , a monetary benefit given to a financial services licensee, or a representative of a financial services licensee, in relation to a dealing in a life risk insurance product with a person as a retail client, or dealings in life risk insurance products with persons as retail clients, is not conflicted remuneration if:

(a)    because of the nature of the benefit or the circumstances in which it is given, the benefit could not reasonably be expected to influence:

(i) whether the licensee or representative deals in the life risk insurance product, or life risk insurance products; or

(ii) the way in which the licensee or representative deals in the life risk insurance product, or life risk insurance products; or

(b)    

none of the products is a life risk insurance product covered by subsection 963B(2) of the Act and either:

(i) the benefit ratio for the benefit is the same for the year in which the product or products are issued as it is for each year in which the product or products are continued; or

(ii) the benefit ratio requirements and clawback requirements are satisfied in relation to the benefit; or

(c)    the benefit is given to the licensee or representative in relation to consumer credit insurance; or

(d) (Repealed)

(e)    the benefit is paid to the licensee as part of the purchase or sale of all or part of the licensee ' s business, or to the representative as part of the purchase or sale of all or part of the representative ' s business.

Non-monetary benefits

7.7A.11D(2)    
Despite subregulation 7.7A.11B(2) , a non-monetary benefit given to a financial services licensee, or a representative of a financial services licensee, in relation to a dealing in a life risk insurance product with a person as a retail client, or dealings in life risk insurance products with persons as retail clients, is not conflicted remuneration if:

(a)    because of the nature of the benefit or the circumstances in which it is given, the benefit could not reasonably be expected to influence:

(i) whether the licensee or representative deals in the life risk insurance product, or life risk insurance products; or

(ii) the way in which the licensee or representative deals in the life risk insurance product, or life risk insurance products; or

(b)    each of the following is satisfied:

(i) the licensee or representative is the final recipient of the benefit, or all or part of the benefit passes through the licensee or representative to another financial services licensee, or representative of a financial services licensee, who is the final recipient of the benefit;

(ii) the value of the benefit in the hands of each final recipient is less than $300;

(iii) identical or similar benefits are not given on a frequent or regular basis; or

(c)    each of the following is satisfied:

(i) the benefit has a genuine education or training purpose;

(ii) the benefit is relevant to dealing in life risk insurance products;

(iii) if the education or training is provided through an education or training course (within the meaning of regulation 7.7A.14 ) - subregulations 7.7A.14(3) and (4) are satisfied in relation to the education or training;

(iv) if the education or training is provided other than through an education or training course - the dominant purpose of the benefit is education and training; or

(d)    

each of the following is satisfied:

(i) the benefit is the provision of information technology software or support;

(ii) the benefit is relevant to dealing in life risk insurance products.

(e) (Repealed)