Corporations Amendment Regulations 2002 (No. 3) (41 of 2002)

Schedule 1   Amendments commencing at 12.02 am (in the Australian Capital Territory) on 11 March 2002

[21]   After regulation 7.1.32

insert

7.1.33 Handling insurance claims

(1) For paragraph 766A (2) (b) of the Act, a circumstance in which a person is taken not to provide a financial service within the meaning of paragraph 766A (1) (a) of the Act is the giving of advice that consists only of a recommendation or statement of opinion provided in the course of, and as a necessary or incidental part of, either or both of:

(a) the handling of claims or potential claims in relation to an insurance product; and

(b) the settlement of claims or potential claims in relation to an insurance product.

(2) For paragraph 766A (2) (b) of the Act, a circumstance in which a person is taken not to provide a financial service within the meaning of paragraph 766A (1) (b) of the Act is a dealing in an insurance product that is a necessary or incidental part of either or both of:

(a) the handling of claims or potential claims in relation to that product; and

(b) the settlement of claims or potential claims in relation to that product.

Examples of services

1 Negotiations on settlement amounts.

2 Interpretation of relevant policy provisions.

3 Estimates of loss or damage.

4 Estimate of value or appropriate repair.

5 Recommendations on mitigation of loss.

6 Recommendations, in the course of handling a claim as described in subregulations (1) and (2), on increases in limits or different cover options to protect against the same loss in the future.

7 Claims strategy such as the making of claims under alternate policies.

(3) In this regulation:

insurance product includes a self-insurance arrangement through which a person manages financial risk.

7.1.33A Allocation of funds available for investment

For paragraph 766A (2) (b) of the Act, a circumstance in which a person is taken not to provide a financial service within the meaning of paragraph 766A (1) (a) of the Act is the provision of a service that consists only of a recommendation or statement of opinion provided to a person about the allocation of the person's funds that are available for investment among 1 or more of the following:

(a) shares;

(b) debentures;

(c) debentures, stocks or bonds issued, or proposed to be issued, by a government;

(d) deposit products;

(e) managed investment products;

(f) investment life insurance products;

(g) superannuation products;

(h) other types of asset.

Note This regulation does not apply to a recommendation or statement of opinion that relates to specific financial products or classes of financial products.

7.1.33B General advice

(1) For paragraph 766A (2) (b) of the Act, this regulation applies in relation to the provision of a service by a person to another person in the following circumstances:

(a) the service consists only of general advice in relation to a financial product or class of financial products;

(b) the advice is prepared by a product issuer of the financial product or class of financial products;

(c) the advice is given by a financial services licensee whose financial services licence covers the provision of the advice.

(2) The product issuer is taken not to provide a financial service within the meaning of paragraph 766A (1) (a) of the Act.

(3) The financial services licensee is taken to provide a financial service within the meaning of paragraph 766A (1) (a) of the Act.