Corporations Regulations 2001
View history note
Hide history note[ CCH Note: Pursuant to the Corporations Amendment Regulations 2001 (No 4) (SR 2001 No 319) effective 11 March 2002, Chapter 7 (Securities) comprising reg 7.1.01 - 7.15.01 and Chapter 8 (The futures industry) comprising reg 8.1.01 - 8.7.03 are replaced by a new Chapter 7 (Financial services and markets) comprising reg 7.1.01 - 7.12.01. As the subject matter of the new Chapter 7 relates to the new financial services reform regime, " inserted " has been used in the history notes for each provision, and all references to the former provisions have been removed.]
Note: Regulations 7.7A.01 to 7.7A.04 are reserved for future use.
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
(b) none of the products is a life risk insurance product covered by subsection 963B(2) of the Act and either:
(ii) the way in which the licensee or representative deals in the life risk insurance product, or life risk insurance products; or
(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
(c) the benefit is given to the licensee or representative in relation to consumer credit insurance; or
(ii) the benefit ratio requirements and clawback requirements are satisfied in relation to the benefit; 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(d) (Repealed) (e) the benefit is paid to the licensee as part of the purchase or sale of all or part of the licensee ' s business, or to the representative as part of the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
(b) each of the following is satisfied:
(ii) the way in which the licensee or representative deals in the life risk insurance product, or life risk insurance products; or
(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;
(c) each of the following is satisfied:
(iii) identical or similar benefits are not given on a frequent or regular basis; or
(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;
(d) each of the following is satisfied:
(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
(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)
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