Corporations Amendment Regulations 2002 (No. 2) (16 of 2002)

Schedule 1   Amendments commencing at 12.01 am (in the Australian Capital Territory) on 11 March 2002

[107]   After regulation 7.9.61

insert

Division 5A Dealing with money received for financial product before the product is issued

7.9.61A Lost application money

(1) This regulation applies if:

(a) a product provider is not able to return money in compliance with subsection 1017E (4) of the Act; and

(b) the product provider is not able to issue or transfer a financial product to, or in accordance with the instructions of, the person who paid that money in compliance with subsection 1017E (4); and

(c) the money is to be transferred to ASIC to be dealt with under Part 9.7 of the Act.

(2) This regulation also applies if:

(a) money is taken out of an account mentioned in subsection 1017E (2) of the Act by a product provider for the purpose of returning it to the person by whom it was paid in compliance with paragraph 1017E (3) (a); and

(b) the product provider is not able to return the money in compliance with subsection 1017E (4).

(3) For paragraph 1017E (3) (d) of the Act, the situations mentioned in subregulations (1) and (2) are situations in which money may be taken out of an account mentioned in section 1017E.

(4) For paragraph 1017E (4) (c) of the Act, the product provider must, after taking the money out of the account:

(a) transfer the money to ASIC to be dealt with under Part 9.7 of the Act; and

(b) give ASIC any information in the possession of the product provider that could reasonably assist ASIC to assess a claim by a person that the person is entitled to the money.

7.9.61B Issue of substitute insurance product

(1) This regulation applies if:

(a) money is paid to acquire an insurance product (the new product ); and

(b) the product provider issues another product (the other product ) which is the same as the new product except for the date on which it ceases to have effect; and

(c) the product provider has not issued the new product.

(2) For paragraph 1017E (3) (d) of the Act, the situation mentioned in subregulation (1) is a situation in which money may be taken out of an account mentioned in section 1017E.

(3) For paragraph 1017E (4) (c) of the Act, the product provider must, after taking the money out of the account:

(a) issue the new product before the date on which the other product ceases to have effect; or

(b) return the money to the person by whom it was paid before the date on which the other product ceases to have effect.

7.9.61C Cheques

For paragraph 1020G (1) (c) of the Act, section 1017E of the Act is modified in its application in relation to a financial product as if the following subsection were inserted after subsection 1017E (1):

'(1A) For this section, if a payment is made by cheque, the payment is taken to have been paid to, and received by, the product provider when the cheque is honoured.'.

Division 5B Confirming transactions

7.9.61D Transactions involving superannuation products

(1) For paragraph 1020G (1) (c) of the Act, this section applies in relation to the following financial products:

(a) an interest in a regulated superannuation fund that is not a public offer superannuation fund;

(b) an RSA product that has been issued to the product holder because of the operation of subsection 52 (4) of the RSA Act;

(c) an interest in an eligible rollover fund of which the product holder became a member under section 243 of the SIS Act;

(d) an interest in an eligible rollover fund of which the product holder became a member in the circumstances mentioned in section 89 of the RSA Act;

(e) an interest in a public offer superannuation fund that is not an eligible successor fund if:

(i) the product holder is a standard employer-sponsored member of the fund; or

(ii) the product holder is a person who became a member of the fund in the circumstances mentioned in regulation 7.9.06A.

(2) Part 7.9 of the Act applies in relation to the financial products as if the following subsection were inserted after subsection 1017F (5A) of the Act:

'(5B) For a financial product mentioned in regulation 7.9.61D of the Corporations Regulations 2001:

(a) subsection (5A) does not apply if the responsible person in relation to a transaction involving the financial product provides the holder of the financial product with a facility that is able to be accessed by the holder:

(i) by phone; or

(ii) by writing; or

(iii) by another method that the responsible person knows, or reasonably believes, that the product holder is able to use; and

(b) confirmation may be provided by means of the facility mentioned in paragraph (a).'.