Schedule 1 Amendment
commencing on 18 April 2010
(regulation 3)
[1] After regulation 7.9.15C
insert
7.9.15CA Less
information in Product Disclosure Statement — financial claims scheme
(1) This regulation applies from 18 April 2010 to 11
October 2011.
(2) For paragraph 1013D (4) (b) of the Act,
paragraphs 1013D (1) (b) and (f) of the Act do not require a Product
Disclosure Statement to contain information relating to Division 2AA of Part II
of the Banking Act 1959 or Part VC of the Insurance Act 1973.
Schedule 2 Amendments
commencing on 12 October 2011
(regulation 3)
[1] Subparagraph 7.7.20A (3) (c) (iii)
omit
product.
insert
product; and
[2] After paragraph 7.7.20A (3) (c)
insert
(d) a statement that the insurer cannot be a declared general insurer for the purpose of Part VC
of the Insurance Act 1973, and, if the insurer becomes insolvent, the
wholesale client will not be covered by the financial claims scheme provided
under Part VC of that Act.
[3] Regulation 7.9.07FA
substitute
7.9.07FA Product
Disclosure Statement not required for certain specified products
For paragraph 1020G (1) (c) of the Act,
Part 7.9 of the Act applies as if section 1012D of the Act were modified by
inserting the following subsection after subsection 1012D (7):
‘Recommendation, issue or sale situation — when Product
Disclosure Statement not required
(7A) In
a recommendation situation, an issue situation or a sale situation, the
regulated person does not have to give the client a Product Disclosure
Statement for the financial product if:
(a) the product is:
(i) a basic deposit product;
or
(ii) a facility for making
non‑cash payments (see section 763D) that is related to a basic
deposit product; or
(iii) a traveller’s cheque;
and
(b) the regulated person has provided
information about the cost of the product (if any) to the client; and
(c) the regulated person has informed
the client as to whether or not any amounts will or may be payable by the
holder of the product, in respect of the product, after its acquisition; and
(ca) if the product is a protected
account under the Banking Act 1959 — the regulated person has
informed the client that:
(i) the account-holder may
be entitled to payment under the financial claims scheme; and
(ii) payments under the
scheme are subject to a limit for each depositor; and
(iii) information about the financial
claims scheme can be obtained from the APRA website at http://www.apra.gov.au
and the APRA hotline on 1300 13 10 60; and
(d) the regulated person has asked the
client whether or not the client would like further information about the amounts
mentioned in paragraph (c); and
(e) if the client indicates that the
client would like the further information about the amounts mentioned in
paragraph (c) — the regulated person has provided that information.’.
[4] After regulation 7.9.14C
insert
7.9.14D Further
statements required in Product Disclosure Statement — financial claims
scheme
(1) For paragraph 1013D (1) (k) of the Act,
the following further statements must be included in a Product Disclosure
Statement that relates to a protected policy issued by a general insurer or a
protected account issued by an authorised deposit-taking institution:
(a) if the Product Disclosure Statement relates
to a protected policy — a statement that:
(i) the person entitled to claim under
insurance cover under a protected policy may be entitled to payment under the
financial claims scheme; and
(ii) access to the scheme is subject to
eligibility criteria;
(b) if the Product Disclosure Statement relates
to a protected account — a statement that:
(i) the account-holder may be entitled
to payment under the financial claims scheme; and
(ii) payments under the scheme are
subject to a limit for each depositor;
(c) a statement that information about the
scheme can be obtained from the APRA website at http://www.apra.gov.au
and the APRA hotline on 1300 13 10 60.
(2) In this regulation:
authorised deposit-taking institution has the
meaning given by subsection 5 (1) of the Banking Act 1959.
financial claims scheme means:
(a) the scheme provided for in Division 2AA of
Part II of the Banking Act 1959; and
(b) the scheme provided for in Part VC of the
Insurance Act 1973.
general insurer has the meaning given by section
11 of the Insurance Act 1973.
protected account has the meaning given by
subsections 5 (4) to (7) of the Banking Act 1959.
protected policy has the meaning given by
subsection 3 (1) of the Insurance Act 1973.
[5] Subparagraph 7.9.15 (1) (c) (iii)
omit
product.
insert
product; and
[6] After paragraph 7.9.15 (1) (c)
insert
(d) a statement that an insurer of that kind cannot
be a declared general insurer for the purpose of Part VC of the Insurance
Act 1973, and, if the insurer becomes insolvent, the person will not be
covered by the financial claims scheme provided under Part VC of that Act.
[7] Schedule 10B, item 12
substitute
12 Contents
of section 9
Section heading
(1) The heading to section 9 of the Product Disclosure Statement
must be relevant to its contents.
Information
(2) Section 9 of the Product Disclosure Statement must
contain the following information:
(a) the name and address of the FHSA provider;
(b) the address of the Internet page, and a phone
number, operated by or for the provider from which a person can obtain further
information about the product;
(c) the dispute resolution system that covers
complaints by holders of the product, and how that system may be accessed.
(3) Section 9 of the Product Disclosure Statement must
contain a statement that:
(i) the account-holder may be entitled to payment
under the financial claims scheme; and
(ii) payments under the scheme are subject to a
limit for each depositor; and
(iii) information about the scheme can be
obtained from the APRA website at http://www.apra.gov.au and the APRA
hotline on 1300 13 10 60.
(4) Section 9 of the Product Disclosure Statement must
also contain the following text:
‘First Home Saver Account enquiries
Information about the First Home Saver Accounts
work, eligibility, fees and taxes, and links to savings calculators and other
useful online tools.
visit www.ato.gov.au’.