Corporations Amendment Regulation 2012 (No. 10) (268 of 2012)

Schedule 1  

[3]   Part 7.7A

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Division 2 Best interests obligations

Subdivision 1Duty to act in client's best interests

7.7A.1 Duty if advising on combination of products

(1)This regulation:

(a)is made for paragraph 961B (5) (b) of the Act; and

(b)prescribes the circumstances in which a provider is not required to prove he or she has taken the steps mentioned in paragraphs 961B (2) (d) to (g) of the Act to satisfy the duty to act in the best interests of the client, in relation to advice about the following products:

(i)a basic banking product;

(ii)a general insurance product.

(2)A provider is not required to prove it has taken those steps if:

(a)the provider is:

(i)an agent or an employee of an Australian ADI; or

(ii)otherwise acting by arrangement with an Australian ADI under the name of the Australian ADI; and

(b)any personal advice that is provided relates only to:

(i)a basic banking product; or

(ii)a general insurance product; or

(iii)a combination of those products.

Note The definition of personal advice is in subsection 766B (3) of the Act.

(3)A provider is not required to prove the provider has taken those steps in relation to advice about a general insurance product, even if the provider, at the same time, provides other advice (whether or not personal advice).