Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:3:p14
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 3 (pt 14/19)
Character Range: 1406319–1409120

reduced by the amount of the tax or duty.

Certain financial products
 (7) The amount that would otherwise be repaid in relation to the return of a financial product (other than an RSA) may be reduced to account for reasonable administrative and transaction costs (other than the payment of commissions or similar benefits) incurred by the responsible person that:
 (a) are reasonably related to the acquisition of the financial product and the subsequent termination of the contract or legal relationship; and
 (b) do not exceed the true cost of an arms' length transaction.

Financial product issued for specific period
 (8) If:
 (a) the financial product is:
 (i) a risk insurance product; or
 (ii) that part of a financial product that is a risk insurance product; and
 (b) either:
 (i) the financial product has been issued for a specific period; or
 (ii) the premium for the financial product has been paid in relation to cover for a specific period; and
 (c) a proportion of that period has already passed when the right to return the risk insurance product is exercised;
the amount that would otherwise be repaid may be reduced by a proportion equal to the proportion of the period that has passed.

General
 (9) If the financial product is subject to a distribution to which subregulation 7.9.70(2) applies, the amount that would otherwise be repaid may be reduced by the amount of that distribution.

7.9.68  Modification of section 1019B of the Act: client includes standard employer‑sponsor
 (1) For paragraph 1020G(1)(c) of the Act, subsection 1019A(1) and paragraph 1019A(3)(a) of the Act are modified so that a reference in those provisions to a client includes a standard employer‑sponsor in respect of the issue of a superannuation product to an employee of the standard employer‑sponsor as a standard employer‑sponsored member in accordance with subparagraph 1016A(2)(b)(iii) of the Act.
 (2) For paragraph 1020G(1)(c) of the Act, subsection 1019B(1) of the Act is modified in its application to the issue of a superannuation product mentioned in subregulation (1) as if a reference in subsection 1019B(1) to money paid to acquire a financial product were a reference to all monies paid in relation to the superannuation product.
 (3) For subsection 1019B(2) of the Act, it is a requirement of the exercise of the right to return a superannuation product mentioned in subregulation (1) that, if the monies to be repaid include employer contributions (whether or not they are mandated employer contributions), the standard employer‑sponsor must nominate a superannuation fund, approved deposit fund or RSA into which the employer contributions are to be repaid.
 (4) The right of return is taken to have been exercised only on receipt by the responsible person of the nomination.
 (5)