Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:4:p7
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 4 (pt 7/49)
Character Range: 998762–1001549

must give a wholesale client the information set out in subregulation (3) for a financial service provided by that person to the wholesale client if:
 (a) the service relates to an insurance contract that, because of subparagraph 8(2)(b)(ii) or (iii) of the Insurance Regulations 2024, may be issued by an unauthorised foreign insurer (the insurer); and
 (b) either:
 (i) the person would be required to give a Statement of Advice if the service were provided to a retail client; or
 (ii) the contract is offered or issued to the wholesale client.
Note: Subparagraphs 8(2)(b)(ii) and (iii) of the Insurance Regulations 2024 apply in relation to insurance contracts for:
(a) atypical risks; and
(b) risks that cannot reasonably be placed in Australia.
 (3) The information is:
 (a) a statement that the insurer is not authorised under the Insurance Act 1973 to conduct insurance business in Australia; and
 (b) a statement that the insurer is not subject to the provisions of the Insurance Act 1973, which establishes a system of financial supervision of general insurers in Australia; and
 (c) a statement that the wholesale client should consider whether to obtain further information, including:
 (i) the country in which the insurer is incorporated, and whether the country has a system of financial supervision of insurers; and
 (ii) the paid up capital of the insurer; and
 (iii) which country's laws will determine disputes in relation to the financial product; and
 (d) a statement that the insurer cannot be a declared general insurer for the purpose of Part VC of the Insurance Act 1973, and, if the insurer becomes insolvent, the wholesale client will not be covered by the financial claims scheme provided under Part VC of that Act.

Division 6—Exemptions from application of Part 7.7 of the Act

7.7.21  Exemption from application of Part 7.7 of the Act
  For paragraph 951C(1)(a) of the Act, Part 7.7 of the Act does not apply to a financial services licensee or an authorised representative in respect of financial services provided to retail clients who are not in this jurisdiction.
Note: Regulation 7.9.98 also contains exemptions from the operation of Part 7.7 of the Act.

Part 7.7A—Best interests obligations and remuneration
Note: Regulations 7.7A.01 to 7.7A.04 are reserved for future use.

Division 2—Best interests obligations

7.7A.05  Best interests duty—basic banking products etc.
 (1) This regulation:
 (a) is made for paragraph 961B(5)(b) of the Act; and
 (b) prescribes a circumstance in which the provider is not required to prove that he or she has taken the steps mentioned in paragraphs 961B(2)(d), (e), (f) and (g) of the Act in relation to advice that relates to a basic banking product or general insurance product.
 (2) The provider is not required