Document ID: chunk:federal_register_of_legislation:F2024C01051:body:0:p5
Version: federal_register_of_legislation:F2024C01051
Segment Type: other
Provision Reference: 
Character Range: 11257–14052

the following:
              (i) a payment from a person (covered person) who is covered by the risk management product where:
                  (A) the amount of the payment is separately identified (in dollars from any other amounts payable by the person to the body to become or remain a member of the body) in a written request for payment or written statement of the amount payable given by the body to the person; and
                  (B) an equivalent amount is to be paid by the body to the product issuer;
              (ii) payments from a member of the body or a covered person to cover the costs reasonably incurred by the body for providing financial services relating to the risk management product or an interest in the risk management scheme;
              (iii) rebates for which the body has an obligation to promptly pay an equivalent amount to covered persons (other than covered persons who are the body or its associates);
              (iv) payments under a multinational pooling arrangement; and
           (b) where the body is not a standard licensee or an authorised representative of a standard licensee—the body is not an associate of:
              (i) any person who carries on a business of issuing risk management products (other than interests in a risk management scheme); or
              (ii) a financial services licensee (other than a limited licensee), or any authorised representative of such a licensee, who deals in or provides financial product advice about a risk management product;
           ignoring any association under the terms of a multinational pooling arrangement.

6 Conditions
    A group purchasing body that relies on the exemption in subsection 5(1) must:
(a) ensure that the making of a group purchase payment by a person to the body:
           (i) where the product is to be issued to the person—is a discharge, as between the person and the issuer of the risk management product, of any liability of the person in respect of the product to the extent of the payment; or
           (ii) where the product has been or is to be issued to the body—is a discharge, as between the person and the issuer of the risk management product, of any liability of the body in respect of the product in relation to the person to the extent of the payment; and
           Note 1: This condition is based on section 985B of the Act. The body could, for example, meet this condition by appropriate contractual/agency arrangements with the product issuer.
           Note 2: This condition does not require an arrangement that affects the rights of the issuer of the risk management product to recover the payment from the body.
(b) take reasonable steps to promptly bring to the attention of each person to whom the body provides financial services