Corporations Regulations 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.7 - FINANCIAL SERVICE DISCLOSURE  

Division 5 - Other disclosure requirements  

REGULATION 7.7.20A   EXTENSION OF DISCLOSURE REQUIREMENTS TO WHOLESALE CLIENTS DEALING WITH CERTAIN UNAUTHORISED INSURERS  

7.7.20A(1)    
For paragraph 949B(1)(e) of the Act, a person 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 specified in regulation 4C or 4D of the Insurance Regulations 2002 that may be offered or issued by an unauthorised foreign insurer (within the meaning of those Regulations) (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.

7.7.20A(2)    

For paragraph 949B(1)(e) of the Act, a person 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 the wholesale client dealing with an entity (the insurer ) specified in regulation 12 of the Insurance Regulations 2002 ; 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 insurer offers or issues a financial product to the wholesale client.

7.7.20A(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.