Schedule 1 Amendments
(regulation 3)
[1] After paragraph 7.6.01
(1) (o)
insert
(oa) the provision of financial product advice if
the advice:
(i) is provided by an actuary in the
ordinary course of providing actuarial services; and
(ii) could not reasonably be expected
to be included in a document that is to be given to a retail client; and
(iii) is provided to:
(A) a wholesale client; or
(B) the Commonwealth, a
State or a Territory; or
(C) an exempt public
authority.
[2] After regulation 7.7.09
insert
7.7.09B Statement of Advice from
providing entity — information not included in the Statement
(1) For paragraphs 947B (4) (b) and 947C (4) (b)
of the Act, a providing entity is not required to include a statement or
information mentioned in Part 7.7 of the
Act, except a statement or information that is required by sections 945B
and 947D of the Act, in a Statement of Advice to the client if the
Statement of Advice:
(a) refers to the statement or information; and
(b) provides sufficient
details about the statement or information to enable the client:
(i) to identify
by a unique identifier the document, or part of the document, that contains the
statement or information; and
(ii) to decide
whether or not to read the statement or information or obtain a copy of the
statement or information; and
(c) states that a copy
of the statement or information may be obtained from the providing entity on
request, at no charge.
(2) Subject to subregulation (3), the providing entity
must give the client the
document, or part of the document (whichever is applicable), unless the
providing entity has already given the document or part of the document to the
client.
(3) If the providing entity is an authorised
representative of an Australian financial services licensee, the document, or
part of the document (whichever is applicable), may
be provided to the client:
(a) by another authorised representative
appointed by and acting on behalf of the licensee; or
(b) by the licensee.
(4) If the client requests a copy of a statement or information
that the providing entity is not required to include
in accordance with subregulation (1), the providing entity must provide the copy
as soon as practicable, at
no charge.
(5) If a statement or
information is not required to be included in a Statement of Advice because of
subregulation (1), the statement or information is taken to be included in the
Statement of Advice.
7.7.09C Requirement
to keep Statement of Advice and other documents
A Statement of Advice and
a document, or part of a document, mentioned in the Statement, must be retained,
by the providing entity that gave the Statement, for 7 years after the day
on which the Statement is provided to the client.
[3] After subregulation
7.9.15C (3)
insert
(4) For paragraph 1013D (1) (m) of the Act,
for a Product Disclosure Statement that is required in relation to a general
insurance product, if:
(a) information is
required to be stated in dollars; and
(b) the amount can only be determined:
(i) after
the responsible person assesses the risk of the insured; or
(ii) after
the insured has nominated desired levels of insurance cover;
the responsible person may comply with
the requirement to state the information by either of the ways mentioned in
subregulation (5).
(5) For subregulation (4), the responsible person may
state the information by:
(a) stating an amount
in dollars in the Product Disclosure Statement; or
(b) giving to the insured:
(i) a
document containing the information, as soon as practicable (but in any case,
not later than 5 business days after the responsible person issues the general
insurance product); and
(ii) a statement in the Product
Disclosure Statement that sets out the information in at least 1 of the
following formats:
(A) as
a range of amounts in dollars;
(B) as
a percentage of a matter that is mentioned in the statement;
(C) as
a description.
[4] After regulation 7.9.15D
insert
7.9.15DA Statement
or information not included in a Product Disclosure Statement
(1) For paragraph 1020G (1) (c) of the
Act, and subject to subregulation (4), a responsible person is not
required to include a statement or information mentioned in Part 7.9 of the Act
in a Product Disclosure Statement if:
(a) the statement or information
is in writing and is publicly available in a document other than the Product
Disclosure Statement; and
(b) the Product Disclosure Statement:
(i) refers
to the statement or information; and
(ii) provides sufficient details about the statement or information to enable a
person:
(A) to
identify by a unique identifier the document, or part of the document, that
contains the statement or information; and
(B) to
locate the statement or information; and
(C) to
decide whether or not to read the statement or information or obtain a copy of
the statement or information; and
(iii) states
that a copy of the statement or information may be obtained from the
responsible person on request, at no charge; and
(c) the statement or
information is not a statement or information that is in a Short‑Form
Product Disclosure Statement.
(2) If the client requests a
copy of the statement or information that the responsible person is not
required to include in accordance with subregulation (1), the responsible
person must provide the copy as
soon as practicable, at no charge.
(3) If a statement or
information is not included in a Product Disclosure Statement because of
subregulation (1), the statement or information is taken to be included in the Product
Disclosure Statement.
(4) Despite subregulation (3), if a responsible
person does not include a statement or information in a Product Disclosure
Statement in accordance with subregulation (1), the responsible person must
include the following information in the Product Disclosure Statement:
(a) for information
required by paragraph 1013D (1) (b) or (f) of the Act— a
description, in summary, of the purpose and key features of the product;
(b) for information
required by paragraph 1013D (1) (c) of the Act— a
description, in summary, of the key risks of the product;
(c) the information required by:
(i) paragraphs 1013D (1) (a),
(g) and (i) of the Act; and
(ii) Divisions 1
and 2 of Part 2 of Schedule 10; and
(iii) paragraphs 209 (e)
and (h) of Division 4 of Part 2 of Schedule 10; and
(iv) Divisions 5
and 6 of Part 2 of Schedule 10;
(d) the Consumer
Advisory Warning in Division 7 of Part 2 of Schedule 10.
7.9.15DB Requirement
to keep record of Product Disclosure Statement and other documents
If section 1015B of
the Act does not require a copy of a Product Disclosure Statement to be lodged
with ASIC, the Statement and a document, or part of a document, mentioned in the
Statement must be retained by the responsible person for that Statement for 7 years
after the date of the Statement.
Note Responsible person has the
same meaning as in section 1011B of the Act.
7.9.15DC Requirement
to lodge documents mentioned in a Product Disclosure Statement with ASIC
A document, or part of a
document, mentioned in a Product Disclosure Statement that was required to be lodged with ASIC
under section 1015B of the Act must be
lodged with ASIC as if the document, or part of the document, were a Statement
within the meaning of section 1015B of the Act.
[5] After regulation 7.9.15F
insert
7.9.15FA Transitional arrangements for regulations 7.9.15D, 7.9.15E
and 7.9.15F
(1) If, at any time during the transition period, a
Product Disclosure Statement for a general insurance product complies with the
requirements of old sections 1013C and 1013D, the Product Disclosure Statement
is taken to comply with the requirements of:
(a) sections 1013C and 1013D of the Act; and
(b) the provisions of any regulations made for
the purposes of, or modifying, sections 1013C and 1013D of the Act;
as in force at that time.
(2) In this regulation:
commencing day means the day on which this regulation commences.
old sections 1013C and
1013D means:
(a) sections 1013C and 1013D of the Act; and
(b) the provisions of any regulations made for
the purposes of, or modifying, those sections;
as in force immediately before
the commencing day.
transition period means the period starting on the commencing day and ending at
the end of 30 June 2008.
Note Before the commencement of this regulation, transitional
arrangements in similar terms were provided for regulations 7.9.15D,
7.9.15E and 7.9.15F by item 2 of Schedule 5 to the Corporations Amendment
Regulations 2005 (No. 5) (SLI 2005 No. 324).