Document ID: chunk:federal_register_of_legislation:C2013C00529:clause:1_963b:p1
Version: federal_register_of_legislation:C2013C00529
Segment Type: clause
Provision Reference: sch 1 cl 963B (pt 1/2)
Character Range: 24441–27105

963B  Monetary benefit given in certain circumstances not conflicted remuneration
 (1) Despite section 963A, a monetary benefit given to a financial services licensee, or a representative of a financial services licensee, who provides financial product advice to persons as retail clients is not conflicted remuneration in the circumstances set out in any of the following paragraphs:
 (a) the benefit is given to the licensee or representative solely in relation to a general insurance product;
 (b) the benefit is given to the licensee or representative solely in relation to a life risk insurance product, other than:
 (i) a group life policy for members of a superannuation entity (see subsection (2)); or
 (ii) a life policy for a member of a default superannuation fund (see subsection (3));
 (c) each of the following is satisfied:
 (i) the benefit is given to the licensee or representative in relation to the issue or sale of a financial product to a person;
 (ii) financial product advice in relation to the product, or products of that class, has not been given to the person as a retail client by the licensee or representative in the 12 months immediately before the benefit is given;
 (d) the benefit is given to the licensee or representative by a retail client in relation to:
 (i) the issue or sale of a financial product by the licensee or representative to the client; or
 (ii) financial product advice given by the licensee or representative to the client;
 (e) the benefit is a prescribed benefit or is given in prescribed circumstances.
 (2) A life risk insurance product is a group life policy for members of a superannuation entity if the product is issued to an RSE licensee of a registrable superannuation entity, or a custodian in relation to a registrable superannuation entity, for the benefit of a class of members of the entity.
 (3) A life risk insurance product is a life policy for a member of a default superannuation fund if:
 (a) the product is issued to an RSE licensee of a registrable superannuation entity, or a custodian in relation to a registrable superannuation entity, for the benefit of a person who is a member of the entity; and
 (b) the person has not given written notice to an employer of the person that the fund is the person's chosen fund, but the employer of the person makes contributions to the fund for the benefit of the person.
Note: Superannuation guarantee surcharge may be imposed on an employer if the employer does not make contributions to a superannuation fund for the benefit of its employees. If an employee does not notify the employer of the employee's chosen fund, the employer is still able