Commonwealth Consolidated Regulations

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CORPORATIONS REGULATIONS 2001 - REG 7.1.08AA

Meaning of financial product advice--advice that is not regarded as a necessary part of providing claims handling and settling services

Advice about how to structure or use insurance claim payouts

             (1)  For the purposes of paragraph 766B(7B)(b) of the Act, giving a recommendation or statement of opinion, or a report of either of those things, cannot reasonably be regarded as a necessary part of providing a claims handling and settling service if the recommendation, statement or report relates to:

                     (a)  how an amount to be paid to a person in settlement of a claim under an insurance product should be structured; or

                     (b)  the management or use of an amount paid, or to be paid, to a person in settlement of a claim under an insurance product.

Advice about other insurance products or financial products

             (2)  For the purposes of paragraph 766B(7B)(b) of the Act, giving a recommendation or statement of opinion, or a report of either of those things, cannot reasonably be regarded as a necessary part of providing a claims handling and settling service if the recommendation, statement or report:

                     (a)  is given in response to a claim, or potential claim, made under an insurance product; and

                     (b)  relates to other insurance products not held by the person making the claim or financial products.



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