Corporations Regulations 2001

For paragraph 1013D(4)(c) of the Act, the more detailed information that must be included in a Product Disclosure Statement that relates to a financial product issued by an unauthorised foreign insurer is:

a statement that the product issuer is:

an unauthorised foreign insurer; and

not authorised under the Insurance Act 1973 to conduct insurance business in Australia; and

a statement that an insurer of that kind 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 person should consider whether to obtain further information, including:

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

the paid up capital of the product issuer; and

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

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

In this regulation:

an insurer that:

does not have an authority under the Insurance Act 1973 to carry on insurance business; and

is not a person who, because of section 5 of that Act, is not required to have such an authority; and

carries on insurance business outside Australia and the external Territories to which the Insurance Act 1973 extends; or

if a direction is in force under section 74 of the Insurance Act 1973—a Lloyd’s underwriter.