Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:4:p21
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 4 (pt 21/49)
Character Range: 1034285–1037223

remuneration, to product holders mentioned in section 963N of the Act.

7.7A.15AK  Obligations of covered person
 (1) The covered person must pay amounts, or provide monetary benefits, to the product holders no later than 1 year after the day by which the covered person is legally obliged (disregarding Subdivision C of Division 4 of Part 7.7A of the Act) to give the conflicted remuneration to another person (see paragraph 963M(1)(a) of the Act).
 (2) The amounts paid, or the amounts of the monetary benefit provided, to the product holders under subregulation (1) must be amounts that are just and equitable in the circumstances.
 (3) For the purposes of subregulation (2), in determining whether an amount is just and equitable in the circumstances, take account of the following matters:
 (a) the amount of the conflicted remuneration;
 (b) the amount invested by each product holder in the financial products mentioned in subsection 963N(2) of the Act;
 (c) the structure of the fees (if any) that the product holders have paid in respect of those financial products;
 (d) the extent to which the sum of the amounts to be paid, and the amount of the monetary benefits to be provided, to the product holders under subregulation (2) equals the amount of, or the present value of, the conflicted remuneration;
 (e) any other relevant matter.
 (4) However, for the purposes of subregulation (2), in determining whether an amount is just and equitable in the circumstances, do not take account of the costs of the covered person in paying the amounts or providing the monetary benefits.

Subdivision 6—Application provisions relating to the Corporations Amendment (Life Insurance Remuneration Arrangements) Act 2017

7.7A.16G  Definitions
  In this Subdivision:
amending Act means the Corporations Amendment (Life Insurance Remuneration Arrangements) Act 2017.
commencement day means the day on which Schedule 1 to the Corporations Amendment (Life Insurance Remuneration Arrangements) Act 2017 commences.

7.7A.16H  Life risk insurance products substantially related to existing products
 (1) This regulation is made for the purposes of subsection 1549B(3) of the Act.
 (2) The amendments made by Schedule 1 to the amending Act do not apply to a benefit given to a financial services licensee, or a representative of a financial services licensee, in relation to a life risk insurance product issued to a person on or after the commencement day (the post‑commencement product) if:
 (a) the person held another life risk insurance product immediately before the commencement day (the pre‑commencement product); and
 (b) either:
 (i) the person acquires the post‑commencement product by exercising an option given to the person under the pre‑commencement product; or
 (ii) the person acquires the post‑commencement product because the pre‑commencement product was cancelled due to an administrative error.

Subdivision 7—Asset‑based fees