Document ID: chunk:federal_register_of_legislation:F2024C01051:body:0:p3
Version: federal_register_of_legislation:F2024C01051
Segment Type: other
Provision Reference: 
Character Range: 6045–8953

services to, the group purchasing body or another entity that controls the body or that is controlled by the body; and
             (c)  provides for payments to be received by the group purchasing body based on claims experience for all those covered by the insurance under the arrangement.
risk management product means a financial product of the kind referred to in paragraphs 764A(1)(d), (e) or (f) or paragraph 763A(1)(b) of the Act other than a general insurance product that a financial services licensee must not deal in because of section 985D of the Act.
risk management scheme means a managed investment scheme under which:
           (a) monies are contributed and are pooled or used in a common enterprise to confer any of the following benefits on the persons contributing:
              (i) lower costs to secure cover, or the securing of cover on more favourable terms, under a risk management product issued by a person who is not, and is not associated with, the group purchasing body operating the scheme;
              (ii) the availability of cover, which would not otherwise be available, under such a risk management product; and
           (b) the persons contributing do not have any entitlement to receive any distributions of scheme property other than any of the following:
              (i) payments that are directly attributable to the cover provided by the risk management product;
              (ii) payments received from the product issuer or any financial services licensee or their associates for arranging for the persons to be covered by the product.
scheme property, in relation to a risk management scheme, means:
           (a) contributions of money or money's worth to the scheme; and
           (b) money borrowed or raised by the group purchasing body for the purposes of the scheme; and
           (c) property acquired, directly or indirectly, with, or with the proceeds of, contributions or money referred to in paragraph (a) or (b); and
           (d) income and property derived, directly or indirectly, from contributions, money or property referred to in paragraph (a), (b) or (c).
standard licensee means a financial services licensee that is not a limited licensee.

       Part 2—Exemptions

5 Risk management scheme exemptions

Exemptions
(1) A group purchasing body does not have to comply with subsection 601ED(5) of the Act in relation to the operation of a risk management scheme.
(2) A group purchasing body does not have to comply with subsection 911A(1) of the Act for the provision of the following financial services:
           (a) dealing in a risk management product or an interest in a risk management scheme operated by the body;
           (b) providing a custodial or depository service by holding a risk management product on trust for or on behalf of another person;
           (c) providing financial product advice in relation to a