Federal Register of Legislation - Australian Government

Primary content

ASIC Class Order [CO 06/623]

Authoritative Version
CO 06/623 Orders/ASIC Class Orders as made
This Class Order provides relief to insurers who receive client monies on behalf of another insurer that is the issuer of the insurance product, from the trust account requirements in Subdivision A of Division 2 of Part 7.8 of the Corporations Act 2001, where the receiving insurer holds those monies in a section 1017E trust account.
Administered by: Treasury
Registered 17 Aug 2006
Tabling HistoryDate
Tabled HR04-Sep-2006
Tabled Senate04-Sep-2006
Date of repeal 28 Jul 2015
Repealed by ASIC Corporations (Repeal) Instrument 2015/684
Table of contents.

Australian Securities and Investments Commission
Corporations Act 2001 — Paragraphs 992B(1)(c) and 1020F(1)(c) — Declarations

 

Enabling legislation

 

1.         The Australian Securities and Investments Commission makes this instrument under paragraphs 992B(1)(c) and 1020F(1)(c) of the Corporations Act 2001 (the Act).

 

Title

 

2.         This instrument is ASIC Class Order [CO 06/623].

 

Commencement

 

3.         This instrument commences on the date it is registered under the Legislative Instruments Act 2003.

 

Note:       An instrument is registered when it is recorded on the Federal Register of Legislative Instruments (FRLI) in electronic form: see Legislative Instruments Act 2003, s 4 (definition of register).  The FRLI may be accessed at http://www.frli.gov.au/.

 

Declarations

 

4.         Part 7.8 of the Act applies in relation to a general insurer as if section 981A were modified or varied by:

 

(a)        inserting after paragraph (2)(c):

 

“(ca)     the money is paid to a licensee who is a general insurer to acquire, or acquire an increased interest in, a general insurance product where all of the following apply:

 

(i)         the licensee receives the money as an agent of another general insurer (the second insurer) under a written agreement between the licensee and the second insurer;

 

(ii)        either:

(A)       the contract of insurance to which the product relates provides more than one kind of cover and, under the contract:

(I)        the licensee provides at least one kind of cover; and

(II)       the second insurer provides at least one kind of cover; or

Note:       Subsections 764A(1A) and (1B) of the Act deal with kinds of cover provided by a contract of insurance.

 

(B)       the licensee is a related body corporate of the second insurer;

Note:       The circumstances in which a licensee may receive money, as agent, that is paid to acquire a product from a second insurer that is its related body corporate include a situation where the licensee is arranging for the issue of the product under a binder.

(iii)       if the product is not issued immediately after the licensee receives the money, the requirements of section 1017E are met in relation to the money.”; and

 

(b)        omitting the note after subsection 981A(2) and substituting:

 

Note:     Money excluded by paragraph (c) or (ca) is covered by section 1017E.  In the case of money to which both subparagraphs (ca)(i) and (ii) apply, the licensee may elect whether the money is dealt with under section 981B or, if the relevant product is not issued immediately after the money is received, under section 1017E.”; and

 

(c)        after subsection 981A(5) inserting:

 

“(6)      In this section, general insurer has the meaning given in section 11 of the Insurance Act 1973.”.

 

5.         Part 7.9 of the Act applies in relation to a general insurer as if section 1017E were modified or varied by:

 

(a)        after subsection (1A), as notionally inserted by subregulation 7.9.08B(1) of the Corporations Regulations 2001, inserting:

“(1B)    However, this section does not apply in relation to money that is paid to acquire, or acquire an increased interest in, a general insurance product where:

 

(a)        the product provider has authorised a general insurer (the receiving agent) who holds an Australian financial services licence to receive the money as the product provider’s agent under a written agreement between the receiving agent and the product provider; and

 

(b)        either:

 

(i)         the contract of insurance to which the money relates provides more than one kind of cover and the receiving agent is providing at least one kind of cover under the contract; or

 

Note:       Subsections 764A(1A) and (1B) deal with kinds of cover provided by a contract of insurance.

 

(ii)        the receiving agent is a related body corporate of the product provider; and

 

Note:       The circumstances in which a receiving agent may receive money that is paid to acquire a product from a product provider that is its related body corporate include a situation where the receiving agent is arranging for the issue of the product under a binder.

 

(c)        upon receiving the money, the receiving agent complies with the requirements of Subdivision A of Division 2 of Part 7.8.”; and

 

(b)        after subsection (6), inserting:

“(7)      In this section, general insurer has the meaning given by section 11 of the Insurance Act 1973.”.

 

Interpretation

 

6.         In this instrument, general insurer has the meaning given by section 11 of the Insurance Act 1973.

 

Dated this 20th day of July 2006

 

 

 

 

Signed by Brendan Byrne
as a delegate of the Australian Securities and Investments Commission