Corporations Regulations 2001

For paragraph 949B(1)(e) of the Act, a person must give a wholesale client the information set out in subregulation (3) for a financial service provided by that person to the wholesale client if:

the service relates to an insurance contract that, because of subparagraph 8(2)(b)(ii) or (iii) of the Insurance Regulations 2024, may be issued by an unauthorised foreign insurer (the insurer); and

either:

the person would be required to give a Statement of Advice if the service were provided to a retail client; or

the contract is offered or issued to the wholesale client.

Subparagraphs 8(2)(b)(ii) and (iii) of the Insurance Regulations 2024 apply in relation to insurance contracts for:

atypical risks; and

risks that cannot reasonably be placed in Australia.

The information is:

a statement that the insurer is not authorised under the Insurance Act 1973 to conduct insurance business in Australia; and

a statement that the insurer is not subject to the provisions of the Insurance Act 1973, which establishes a system of financial supervision of general insurers in Australia; and

a statement that the wholesale client should consider whether to obtain further information, including:

the country in which the insurer is incorporated, and whether the country has a system of financial supervision of insurers; and

the paid up capital of the insurer; and

which country’s laws will determine disputes in relation to the financial product; and

a statement that the insurer cannot be a declared general insurer for the purpose of Part VC of the Insurance Act 1973, and, if the insurer becomes insolvent, the wholesale client will not be covered by the financial claims scheme provided under Part VC of that Act.