Commonwealth Consolidated Regulations

CORPORATIONS REGULATIONS 2001 - REG 7.9.15C

  (1)   For paragraph   1013D(1)(m) of the Act, if ASIC determines that, for a compelling reason based on the nature of a financial product or service, or the nature of the information, to state the information as an amount in dollars:

  (a)   would impose an unreasonable burden on a product issuer, or a class of product issuers; or

  (b)   would impose an unreasonable burden on a product issuer, or a class of product issuers, within a period specified in the determination; or

  (c)   would not be in the interests of a client, or a class of clients;

the information may be set out as a description of the amount as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate).

  (2)   For paragraph   1013D(1)(m) of the Act, if ASIC determines that, for a compelling reason, based on the nature of a financial product or service, or the nature of the information, to state the information as an amount in dollars, or to describe the amount as a percentage:

  (a)   would impose an unreasonable burden on a product issuer, or a class of product issuers; or

  (b)   would impose an unreasonable burden on a product issuer, or a class of product issuers, within a period specified in the determination; or

  (c)   would not be in the interests of a client, or a class of clients;

the information may be set out as a description of the method of calculating the charge or benefit (including worked dollar examples, unless that is inappropriate).

  (3)   A determination under subregulation   (1) or (2) must be:

  (a)   in writing; and

  (b)   published in the Gazette .

  (4)   For paragraph   1013D(1)(m) of the Act, for a Product Disclosure Statement that is required in relation to a general insurance product, if:

  (a)   information is required to be stated in dollars; and

  (b)   the amount can only be determined:

  (i)   after the responsible person assesses the risk of the insured; or

  (ii)   after the insured has nominated desired levels of insurance cover;

the responsible person may comply with the requirement to state the information by either of the ways mentioned in subregulation   (5).

  (5)   For subregulation   (4), the responsible person may state the information by:

  (a)   stating an amount in dollars in the Product Disclosure Statement; or

  (b)   giving to the insured:

  (i)   a document containing the information, as soon as practicable (but in any case, not later than 5 business days after the responsible person issues the general insurance product); and

  (ii)   a statement in the Product Disclosure Statement that sets out the information in at least 1 of the following formats:

  (A)   as a range of amounts in dollars;

  (B)   as a percentage of a matter that is mentioned in the statement;

  (C)   as a description.