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CORPORATIONS REGULATIONS 2001 - REG 7.7A.11B

Circumstances in which benefits in relation to life risk insurance products are conflicted remuneration

Giving information in relation to life risk insurance products

             (1)  A benefit given to a financial services licensee, or a representative of a financial services licensee, is conflicted remuneration if:

                     (a)  the benefit is given to the licensee or representative in relation to information given to a person, or persons, in relation to a life risk insurance product, or life risk insurance products; and

                     (b)  access to the benefit, or the value of the benefit, is dependent on:

                              (i)  the value of a life risk insurance product, or life risk insurance products, subsequently acquired by a person or persons to whom, or in relation to whom, the information is given; or

                             (ii)  the value of a life risk insurance product, or life risk insurance products, subsequently varied that are held by a person or persons to whom, or in relation to whom, the information is given; or

                            (iii)  the number of life risk insurance products subsequently acquired by a person or persons to whom, or in relation to whom, the information is given; or

                            (iv)  the number of life risk insurance products subsequently varied that are held by a person or persons to whom, or in relation to whom, the information is given; and

                     (c)  the information is not given in the course of, or as a result of, the licensee or representative, or an associate of the licensee or representative, providing financial product advice; and

                     (d)  if the information is given in the course of providing a financial product--the information is not given in the course of providing that product to a person as a wholesale client, or to persons as wholesale clients.

Dealing in life risk insurance products

             (2)  A benefit given to a financial services licensee, or a representative of a financial services licensee, is conflicted remuneration if:

                     (a)  the benefit is given to the licensee or representative in relation to a dealing in a life risk insurance product with a person as a retail client, or dealings in life risk insurance products with persons as retail clients; and

                     (b)  access to the benefit, or the value of the benefit, is dependent on:

                              (i)  the value of the life risk insurance product to which the dealing relates, or the life risk insurance products to which the dealings relate; or

                             (ii)  the number of life risk insurance products to which the dealings relate; and

                     (c)  the dealing, or dealings, do not occur in the course of, or as a result of, the licensee or representative, or an associate of the licensee or representative:

                              (i)  providing financial product advice; or

                             (ii)  giving information in circumstances in which the benefit would be conflicted remuneration under subregulation (1).



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