Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:4:p18
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 4 (pt 18/49)
Character Range: 1026366–1029174

related body corporate or other person is the same as the weighting attributed to other similar financial products.

Subdivision 3—Monetary benefits that relate to life risk insurance products

7.7A.12EB  Life risk insurance products—clawback requirements related to cancellation etc.
  For the purposes of subparagraph 963BA(3)(a)(i) of the Act, the prescribed circumstances are that the life risk insurance product, or the relevant one of the life risk insurance products, is cancelled or is not continued because:
 (a) the person insured dies; or
 (b) the person insured commits an act of self‑harm; or
 (c) the person insured reaches an age that, under the terms of the life risk insurance product under which the person is insured, has the result that the product is cancelled or is not continued; or
 (d) an administrative error has been made.

7.7A.12EC  Life risk insurance products—clawback requirements related to reduction of policy cost
  For the purposes of subparagraph 963BA(3)(a)(ii) of the Act, the prescribed circumstances are that the policy cost for the life risk insurance product, or the relevant one of the life risk insurance products, is reduced because:
 (a) the person who issued the product and the person to whom the product is issued agree that there is a reduction in a risk in relation to a person insured under the product; or
 (b) the person who issued the product reduces the premium for the product without changing the risks covered, or the benefits available, in relation to any person insured under the product; or
 (c) each of the following is satisfied:
 (i) a rebate is paid or a discount applied;
 (ii) it is reasonable in all the circumstances to conclude that the rebate is paid or discount applied to induce the person to whom the product is issued to acquire, or to continue to hold, the product; or
 (d) a benefit payable in relation to a person insured under the product has been, or is being, paid; or
 (e) an administrative error has been made.

Subdivision 4—Other monetary and non‑monetary benefits that are not conflicted remuneration

7.7A.12F  What subdivision is about
  This subdivision:
 (a) is made for paragraphs 963B(1)(e) and 963C(1)(f) of the Act; and
 (b) prescribes the circumstances in which a monetary or non‑monetary benefit given to a financial services licensee, or representative of a financial services licensee, (the provider) who provides financial product advice to persons as retail clients is not conflicted remuneration.

7.7A.12G  General insurance
  A benefit is not conflicted remuneration if the benefit is given in relation to a general insurance product.
Note: If a benefit is given in relation to a financial product that consists of both general insurance and life risk insurance, the benefit is to be treated as relating