Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:4:p8
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 4 (pt 8/49)
Character Range: 1001325–1003944

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 to prove that he or she has taken the steps if:
 (a) the provider is:
 (i) an agent or employee of an Australian ADI; or
 (ii) otherwise acting by arrangement with an Australian ADI under the name of the Australian ADI; and
 (b) the subject matter of the advice sought by the client relates only to the following:
 (i) a basic banking product;
 (ii) a general insurance product;
 (iii) consumer credit insurance;
 (iv) a combination of any of those products.

7.7A.06  Best interests duty—general insurance products
 (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.
 (2) The provider is not required to prove that he or she has taken the steps to the extent that the subject matter of the advice sought by the client is a general insurance product.

Division 3—Charging ongoing fees to clients

7.7A.10  Arrangements that are not ongoing fee arrangements
 (1) This regulation is made for subsection 962A(5) of the Act.
 (2) An arrangement of a kind mentioned in subsection 962A(1) or (2) of the Act is not an ongoing fee arrangement to the extent that the arrangement relates to a product fee mentioned in subregulation (3).
 (3) Each of the following is a product fee:
 (a) a fee for the administration, management or operation of a financial product that is charged to a retail client to which the product is issued by the issuer of the product;
Example 1: A monthly account keeping fee charged by the provider of a basic deposit product.
Example 2: A monthly administration or investment fee charged by a trustee of a superannuation fund or a responsible entity of a registered scheme.
 (b) a fee that:
 (i) is a cost of providing financial product advice; and
 (ii) under section 99F of the Superannuation Industry (Supervision) Act 1993, is not prohibited or prevented from being passed on to a member of a regulated superannuation fund.

7.7A.11AA  Compliance records required to be kept by fee recipients
 (1) This regulation is made for the purposes of section 962X of the Act.
 (2) A fee recipient must keep the following records in relation to an ongoing fee arrangement the fee recipient has with the client:
 (c) if the client gives any of the following notifications to the fee