Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:1:p74
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 1 (pt 74/148)
Character Range: 517133–519920

to the client under section 1017B of the Act because the client is a retail client).

7.1.25  Retail clients and wholesale clients: life risk insurance and other risk‑based financial products
 (1) This regulation makes arrangements about the value of a risk‑based financial product.
 (2) Paragraph 761G(7)(a) of the Act does not apply to a risk‑based financial product.
Note: Under paragraph 761G(7)(a) of the Act, if a financial product is not, or a financial service provided to a person does not relate to, a general insurance product, a superannuation product or an RSA, the financial product or financial service is provided to the person as a retail client unless the price for the provision of the financial product, or the value of the financial product to which the financial service relates, equals or exceeds the amount specified in regulations made for the purposes of that paragraph as being applicable in the circumstances.
 Under paragraph 761G(10)(a) of the Act, the regulations may also deal with how a price or value referred to in that paragraph is to be calculated, either generally or in relation to a specified class of financial products.
 Under paragraph 761G(10)(b) of the Act, the regulations may also modify the way in which paragraph 761G(7)(a) applies in particular circumstances.

7.1.26  Superannuation‑sourced money
  For the purpose of assessing the price of a financial product, or the value of a financial product to which a financial service relates, under paragraph 761G(7)(a) of the Act, superannuation‑sourced money is not to be counted if:
 (a) the financial service provided to a person is:
 (i) financial product advice; or
 (ii) if the person was a retail client—the provision of a financial product in circumstances in which a Product Disclosure Statement would need to be given to the client under Part 7.9 of the Act (including section 1012A, 1012B, 1012C or 1012IA); and
 (b) the financial product to which the financial service relates is a product other than a non‑cash payment financial product; and
 (c) the person who was the holder of the relevant superannuation interest in the regulated superannuation fund was or would have been a retail client under subsection 761G(6) of the Act if they had held or acquired the product after FSR commencement.
Example: If:
(a) the price for an income stream financial product or an investment‑based financial product is $700 000; and
(b) the client uses $400 000 of superannuation‑sourced money and $300 000 of other funds;
 then, unless the client is a wholesale client for another reason, the client will be a retail client due to the operation of paragraph 761G(7)(a) of the Act.
Note: Under subsections 761G(5), (6) and (7) of the Act, general insurance products, superannuation products and