Corporations Act 2001

CHAPTER 10 - TRANSITIONAL PROVISIONS  

PART 10.48 - APPLICATION AND TRANSITIONAL PROVISIONS RELATING TO SCHEDULE 7 TO THE FINANCIAL SECTOR REFORM (HAYNE ROYAL COMMISSION RESPONSE) ACT 2020  

SECTION 1675  

1675   DEFINITIONS  

In this Part:

commencement day
means the day on which Schedule 7 to the Financial Sector Reform (Hayne Royal Commission Response) Act 2020 commences.

transition period
has the meaning given by section 1675B .

SECTION 1675A  

1675A   APPLICATION OF CLAIMS HANDLING AND SETTLING SERVICES REFORMS  

Subject to this Part, the amendments made by Schedule 7 to the Financial Sector Reform (Hayne Royal Commission Response) Act 2020 apply to claims made under insurance products, or potential claims that arise under insurance products, on or after the commencement day.

SECTION 1675B   TRANSITION PERIODS  

1675B(1)    
For the purposes of this Part, the transition period for a person begins on the commencement day and ends on:

(a)    if the person lodges an application for an Australian financial services licence covering claims handling and settling services and ASIC gives the applicant notice in writing on or before 30 June 2021 that the application is granted - the last licence-processing day; or

(b)    if the person lodges an application for an Australian financial services licence covering claims handling and settling services, the application complies with section 913A and is pending on 30 June 2021 - the earlier of:

(i) if, after 30 June 2021, the person withdraws the application - the day on which the application is withdrawn; and

(ii) if, after 30 June 2021, ASIC notifies the person in writing that ASIC refuses to receive the application under subsection 1274(8) - the day on which ASIC gives that notification; and

(iii) if ASIC refuses to grant the person an Australian financial services licence covering claims handling and settling services - the day on which ASIC gives the person notice in writing of the refusal; and

(iv) the last licence-processing day; or

(c)    if the person lodges an application for ASIC to vary the conditions on the licence to specify that claims handling and settling services are financial services that the licensee is authorised to provide and ASIC gives the applicant notice in writing on or before 30 June 2021 that the application is granted - the last licence-processing day; or

(d)    if the person is a financial services licensee and lodges an application for ASIC to vary the conditions on the licence to specify that claims handling and settling services are financial services that the licensee is authorised to provide, the application complies with paragraph 914A(2)(b) and is pending on 30 June 2021 - the earlier of:

(i) if, after 30 June 2021, the person withdraws the application - the day on which the application is withdrawn; and

(ii) if, after 30 June 2021, ASIC notifies the person in writing that ASIC refuses to receive the application under subsection 1274(8) - the day on which ASIC gives that notification; and

(iii) if ASIC refuses to grant the person the variation - the day on which ASIC gives the person notice in writing of the refusal; and

(iv) the last licence-processing day; or

(e)    otherwise - 30 June 2021.

1675B(2)    
In this section:

last licence-processing day
means the later of:

(a) 31 December 2021; and

(b) if the Minister determines another day under subsection (3) - that other day.

pending
: an application is pending on a particular day if the application has been lodged on or before that day and each of the following is satisfied:

(a) the application has not been withdrawn by the applicant on or before that day;

(b) ASIC has not, on or before that day, given the applicant notice in writing that the application has been granted or refused;

(c) ASIC has not, on or before that day, notified that applicant in writing that ASIC refuses to receive the application under subsection 1274(8) .

1675B(3)    
The Minister may, by notifiable instrument, determine a day that is after 31 December 2021 and before 1 July 2022 to be the last licence-processing day.

SECTION 1675C   APPLICATION DURING TRANSITION PERIOD  

1675C(1)    
Despite section 1675A , a claims handling and settling service provided by or on behalf of a person during the transition period for that person is not to be treated as a financial service, except for the purposes of:

(a)    section 912C ; and

(b)    section 912CA ; and

(c)    section 912E .

1675C(2)    
Nothing in this section prevents:

(a)    a financial services licensee from giving a person a notice under section 916A during the transition period for the licensee authorising the person to provide claims handling and settling services after the end of that transition period; or

(b)    an authorised representative of a financial services licensee giving an individual written notice under section 916B during the transition period for the licensee authorising that individual to provide specified claims handling and settling services or claims handling and settling services on behalf of the licensee after the end of the transition period for the authorised representative.