Commonwealth Consolidated Regulations

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Money to which Subdivision A of Division 2 of Part 7.8 of the Act applies taken to be held in trust: risk accepted by insurer

             (1)  For paragraph 981H(3)(b) of the Act, this regulation applies if, in relation to an insurance product:

                     (a)  a financial services licensee is holding money to which Subdivision A of Division 2 of Part 7.8 of the Act applies; and

                     (b)  the risk in relation to the insurance product has been accepted by an insurer.

             (2)  The financial services licensee holds the money on trust for the insurer in accordance with Division 2 of Part 7.8 of the Act, subject to the agreement of the insurer.

             (3)  This regulation does not affect the operation of regulations 7.8.03 and 7.8.08.

             (4)  For paragraph 981C(1)(c) of the Act, if money to which this regulation applies is held in an account maintained for section 981B of the Act:

                     (a)  the financial services licensee is entitled to the interest on the account; and

                     (b)  the interest on the account is not required to be paid into the account.

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