Financial Sector Legislation Amendment (Discretionary Mutual Funds and Direct Offshore Foreign Insurers) Act 2007 (149 of 2007)

Schedule 2   Amendments commencing on 1 July 2008

Corporations Act 2001

1   At the end of Division 4 of Part 7.8

Add:

985D Financial services licensees etc. not to deal in general insurance products from unauthorised insurers etc.

(1) A financial services licensee, or an authorised representative of a financial services licensee, must not deal in a general insurance product if the insurer for the product, or (if there is more than one insurer for the product) each insurer for the product, is not at least one of the following:

(a) a general insurer within the meaning of the Insurance Act 1973;

(b) a Lloyd's underwriter within the meaning of that Act;

(c) a person in respect of whom a determination is in force, under subsection 7(1) of that Act, that subsection 9(1) or 10(1) or (2) of that Act does not apply (the effect of which is the effect referred to in paragraph 9(1)(c), 10(1)(c) or 10(2)(c) of that Act (as the case requires)).

Note: Failure to comply with this subsection is an offence (see subsection 1311(1)).

(2) Subsection (1) does not apply in relation to a general insurance product if, because of section 3A of the Insurance Act 1973, undertaking liability under the contract of insurance concerned is not, or would not be, insurance business for the purposes of that Act.

Note: A defendant bears an evidential burden in relation to the matters in subsection (2) (see subsection 13.3(3) of the Criminal Code).

(3) Paragraph (1)(b) ceases to apply after section 93 of the Insurance Act 1973 has ceased to have effect.

(4) An offence based on subsection (1) is an offence of strict liability.

Note: For strict liability , see section 6.1 of the Criminal Code.