Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:4:p27
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 4 (pt 27/49)
Character Range: 1049357–1052080

services licensee under section 981B of the Act; and
 (b) the total amount previously withdrawn from the account and currently invested under subregulation (2);
is at least the sum of:
 (c) any amounts that an insurer is entitled to receive from the account; and
 (d) any amounts that an insured or intending insured is entitled to receive from the account.
 (6A) For paragraph (6)(c), if, at a particular time, money received by a financial services licensee for or on account of an insurer as mentioned in paragraph 7.8.01(4)(a) is paid into the account, the insurer is taken to be entitled to receive payment of:
 (a) the amount; or
 (b) if any deductions from the amount are authorised by a written agreement between the insurer and the broker—the amount less the deductions;
throughout the period:
 (c) beginning at that time; and
 (d) ending when the payment is actually made to the insurer;
whether or not the amount has been invested under subregulation (2).
 (6B) For paragraph (6)(d), if, at a particular time, money received by a financial services licensee for or on account of an insured or intending insured as mentioned in paragraph 7.8.01(4)(b) is paid into an account, the insured or intending insured is taken to be entitled to receive payment of the amount throughout the period:
 (a) beginning at that time; and
 (b) ending when the payment is actually made to the insured or intending insured;
whether or not the amount has been invested under subregulation (2).
 (6C) On application by a financial services licensee in the prescribed form, ASIC may consent in writing to the minimum balance of monies received in relation to insurance products being less than the level specified in subregulation (6).
 (7) For paragraph 981C(1)(c) of the Act, if money is held in an account maintained for section 981B of the Act:
 (a) the financial services licensee is entitled to the interest on the account; and
 (b) the interest on the account is not required to be paid into the account;
only if the financial services licensee discloses to the client that the financial services licensee is keeping the interest (if any) earned on the account.

Interest and other earnings on investments
 (8) For paragraph 981C(1)(d) of the Act, interest or other earnings on:
 (a) an investment of money withdrawn from an account maintained for section 981B of the Act; or
 (b) the proceeds of the realisation of such an investment;
must be dealt with in accordance with the written agreement between the financial services licensee and the client under subregulation (3).

7.8.02A  Accounts maintained for the purposes of section 981B of the Act—special rules for retail clients
 (1) Paragraph 7.8.02(1)(a) does not apply to