Circumstances in which benefits in relation to life risk insurance products are conflicted remuneration
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
A benefit given to a financial services licensee, or a representative of a financial services licensee, is conflicted remuneration if:
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
access to the benefit, or the value of the benefit, is dependent on:
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
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
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
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
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
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
A benefit given to a financial services licensee, or a representative of a financial services licensee, is conflicted remuneration if:
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
access to the benefit, or the value of the benefit, is dependent on:
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
the number of life risk insurance products to which the dealings relate; and
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:
providing financial product advice; or
giving information in circumstances in which the benefit would be conflicted remuneration under subregulation (1).
This Act’s bill:Explanatory statement
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