financial services licensees; or

authorised representatives of financial services licensees; or

issuers of financial products;

means a person or entity that agrees, in a way required by the applicant for the code’s approval, to be bound by the code; and

if a person or entity no longer agrees to be bound by the code—includes the person or entity during the period that the person or entity did agree to be so bound.

the provision represents a commitment to a person by a subscriber to the code relating to transactions or dealings performed for, on behalf of or in relation to the person; and

a breach of the provision is likely to result in significant and direct detriment to the person; and

additional criteria prescribed by the regulations for the purposes of this paragraph (if any) are satisfied; and

it is appropriate to identify the provision of the code as an enforceable code provision, having regard to the matters prescribed by the regulations for the purposes of this paragraph (if any).

to the extent that the code is inconsistent with this Act or any other law of the Commonwealth under which ASIC has regulatory responsibilities—the code imposes an obligation on a subscriber that is more onerous than that imposed by this Act or any other law of the Commonwealth under which ASIC has regulatory responsibilities; and

each enforceable code provision:

has been agreed with the applicant; and

is legally effective; and

it is appropriate to approve the code, having regard to the following matters:

whether the obligations of subscribers to the code are capable of being enforced;

whether the applicant has effective administrative systems for monitoring compliance with the code and making information obtained as a result of monitoring publicly available;

whether the applicant has effective administrative systems for maintaining, and making publicly available, an accurate list of subscribers to the code.

on application by the applicant for the approval; or

if ASIC ceases to be satisfied of the matters mentioned in subsection (3); or

if a review of the operation of the code is not completed by the applicant within the timeframe required by section 1101AB.

for the first review—before the end of the 5 year period beginning on the day the code of conduct was approved; and

for a subsequent review—within 5 years after the completion of the previous review.

prescribe criteria of which ASIC must be satisfied before it identifies a provision of a code of conduct as an enforceable code provision; or

prescribe matters to which ASIC must have regard before it identifies a provision of a code of conduct as an enforceable code provision.

confer functions and powers on a person or body for the purposes of:

monitoring compliance with the code of conduct; and

dealing with disputes or complaints arising under, or in relation to, the code of conduct; and

dealing with other associated administrative matters; or

provide for and in relation to:

the keeping of records by persons bound by the code of conduct; and

reporting obligations of such persons.

civil penalty provisions of a mandatory code of conduct.

(a) the Banking Code of Practice, whose approval by ASIC was registered on the Federal Register of Legislation on 18 December 2019, is taken to be approved under section 1101A, as substituted by Schedule 1 to the Financial Sector Reform (Hayne Royal Commission Response) Act 2020;

(b) Banking Code of Practice.Division 2 of Part 7.12, as inserted by that Schedule to that Act, applies to the

licensees; or

credit representatives;

means a person or entity that agrees, in a way required by the applicant for the code’s approval, to be bound by the code; and

if a person or entity no longer agrees to be bound by the code—includes the person or entity during the period that the person or entity did agree to be so bound.

the provision represents a commitment to a person by a subscriber to the code relating to transactions or dealings performed for, on behalf of or in relation to the person; and

a breach of the provision is likely to result in significant and direct detriment to the person; and

additional criteria prescribed by the regulations for the purposes of this paragraph (if any) are satisfied; and

it is appropriate to identify the provision of the code as an enforceable code provision, having regard to the matters prescribed by the regulations for the purposes of this paragraph (if any).

to the extent that the code is inconsistent with this Act or any other law of the Commonwealth under which ASIC has regulatory responsibilities—the code imposes an obligation on a subscriber that is more onerous than that imposed by this Act or any other law of the Commonwealth under which ASIC has regulatory responsibilities; and

each enforceable code provision:

has been agreed with the applicant; and

is legally effective; and

it is appropriate to approve the code, having regard to the following matters:

whether the obligations of subscribers to the code are capable of being enforced;

whether the applicant has effective administrative systems for monitoring compliance with the code and making information obtained as a result of monitoring publicly available;

whether the applicant has effective administrative systems for maintaining, and making publicly available, an accurate list of subscribers to the code.

on application by the applicant for the approval; or

if ASIC ceases to be satisfied of the matters mentioned in subsection (3); or

if a review of the operation of the code is not completed by the applicant within the timeframe required by section 238C.

for the first review—before the end of the 5 year period beginning on the day the code of conduct was approved; and

for a subsequent review—within 5 years after the completion of the previous review.

prescribe criteria of which ASIC must be satisfied before it identifies a provision of a code of conduct as an enforceable code provision; or

prescribe matters to which ASIC must have regard before it identifies a provision of a code of conduct as an enforceable code provision.

confer functions and powers on a person or body for the purposes of:

monitoring compliance with the code of conduct; and

dealing with disputes or complaints arising under, or in relation to, the code of conduct; and

dealing with other associated administrative matters; or

provide for and in relation to:

the keeping of records by persons bound by the code of conduct; and

reporting obligations of such persons.

civil penalty provisions of an approved code of conduct;

civil penalty provisions of a mandatory code of conduct;

the failure was not fraudulent or the misrepresentation was not made fraudulently; and

the insurer would not have been prepared to enter into a contract of life insurance with the insured on any terms, if the duty of disclosure had been complied with or the misrepresentation had not been made;

a contract of life insurance that was originally entered into before the commencement of this item is varied after that commencement to:

increase a sum insured under the contract in respect of one or more of the life insureds; or

provide one or more additional kinds of insurance cover; and

the variation was not an automatic variation but was required to be expressly agreed between the insurer and the insured before the contract was varied;

the contract is treated, to the extent of the variation, as if it had been originally entered into after the commencement of this item; and

the amendments made by this Schedule apply to the contract to the extent of the variation.

it is for new business; and

the insurer, before the contract is entered into, gives the insured a written notice stating that the contract is a consumer insurance contract.

in relation to a consumer insurance contract or proposed consumer insurance contract—the duty to take reasonable care not to make a misrepresentation; or

in relation to any other contract of insurance or proposed contract of insurance—the duty of disclosure.

consumer insurance contracts; and

proposed contracts of insurance that, if entered into, would be consumer insurance contracts.

the type of consumer insurance contract in question, and its target market;

explanatory material or publicity produced or authorised by the insurer;

how clear, and how specific, any questions asked by the insurer of the insured were;

how clearly the insurer communicated to the insured the importance of answering those questions and the possible consequences of failing to do so;

whether or not an agent was acting for the insured;

whether the contract was a new contract or was being renewed, extended, varied or reinstated.

failed to answer a question; or

gave an obviously incomplete or irrelevant answer to a question.

made in or in connection with a contract of insurance; and

made by or attributable to the insured;

contracts of insurance that are not consumer insurance contracts; and

proposed contracts of insurance that, if entered into, would not be consumer insurance contracts.

contracts of insurance that are not consumer insurance contracts; and

proposed contracts of insurance that, if entered into, would not be consumer insurance contracts.

if the contract is, or would be, a consumer insurance contract—a misrepresentation made by the insured in breach of the duty to take reasonable care not to make a misrepresentation; or

otherwise:

a failure by the insured to comply with the duty of disclosure; or

a misrepresentation made by the insured to the insurer before the contract was entered into.

the life insured made a misrepresentation during the negotiations for the contract but before it was entered into; and

the misrepresentation would have been a breach of the duty to take reasonable care not to make a misrepresentation if that duty had applied to the life insured in relation to the contract;

the insurer would have entered into the contract even if the failure had not occurred; or

the failure was in respect of the date of birth of one or more of the life insureds.

there was a relevant failure; or

subitem (2) does not apply to a contract of life insurance; and

on or after 5 October 2021, the contract is varied to:

increase a sum insured under the contract in respect of one or more of the life insureds; or

provide one or more additional kinds of insurance cover; and

the variation was not an automatic variation but was required to be expressly agreed between the insurer and the insured before the contract was varied;

the contract is treated, to the extent of the variation, as if it had been entered into on or after 5 October 2021; and

the amendments made by this Part apply to the contract to the extent of the variation.

(a) is offered or sold to a consumer (the customer) in connection with the customer acquiring, or entering into a commitment to acquire, the principal product or service; and

is offered or sold by:

the provider of the principal product or service; or

another person, in accordance with an arrangement to which the provider of the principal product or service is a party; and

manages financial risk (within the meaning of section 12BAA) relating to the principal product or service; and

either:

is a contract of insurance; or

provides for the customer to benefit from a contract of insurance to which the provider of the financial product is a party.

a contract that would ordinarily be regarded as a contract of insurance even if some of its provisions are not by way of insurance; and

a contract that includes provisions of insurance in so far as those provisions are concerned, even if the contract would not ordinarily be regarded as a contract of insurance.

(a) there is an add-on insurance deferral period in relation to the customer acquiring, or entering into a commitment to acquire, the principal product or service; and

the add-on insurance deferral period is the period beginning at the later of:

the time the customer enters into the commitment (or, if the customer acquires the principal product or service without previously entering into a commitment to do so, the time the customer acquires the principal product or service); and

the time the customer is given the information;

begins when the customer indicates an intention to acquire the principal product or service; and

if there is an add-on insurance deferral period in relation to the customer acquiring, or entering into a commitment to acquire, the principal product or service—ends immediately before the start of that period; and

if there is no such add-on insurance deferral period—does not end.

information to be given for the purposes of subsection (1);

the form and manner in which the information is to be given (which may require the information to be given to a particular customer each time the customer enters into a commitment to acquire, or acquires, the products or services).

must include information that relates to a customer giving notice that the customer does not want to receive:

offers of add-on insurance products; or

requests or invitations for the customer to ask or apply for add-on insurance products;

may include information relating to any other matter that ASIC thinks appropriate.

(a) another person (the customer) acquires, or enters into a commitment to acquire, a product or service (the principal product or service) from the first person; and

the first person also sells a financial product to the customer; and

the financial product is an add-on insurance product in relation to the principal product or service.

(a) another person (the customer) acquires, or enters into a commitment to acquire, a product or service (the principal product or service) from the first person; and

a third person sells the customer a financial product that is an add-on insurance product in relation to the principal product or service.

there is an add-on insurance deferral period in relation to the customer acquiring, or entering into a commitment to acquire, the principal product or service; and

the add-on insurance product is sold to the customer after the end of the add-on insurance deferral period.

(a) the third party provider sells a financial product to a consumer (the customer); and

(b) the financial product is an add-on insurance product in relation to a product or service (the principal product or service) offered or provided by another person; and

either:

there is no add-on insurance deferral period in relation to the customer acquiring, or entering into a commitment to acquire, the principal product or service; or

there is such an add-on insurance deferral period, and the third party provider sells the add-on insurance product to the customer before the end of the period.

(a) another person (the customer) acquires, or enters into a commitment to acquire, a product or service (the principal product or service) from the principal provider; and

the principal provider offers a financial product for issue or sale to the customer, or requests or invites the customer to ask or apply for a financial product or to purchase a financial product; and

the financial product is an add-on insurance product in relation to the principal product or service; and

the offer, request or invitation is made otherwise than in writing.

during the add-on insurance pre-deferral period in relation to the principal product or service; or

if there is an add-on insurance deferral period in relation to the customer acquiring, or entering into a commitment to acquire, the principal product or service—after the end of the period of 6 weeks beginning on the first day of the add-on insurance deferral period.

(a) another person (the customer) acquires, or enters into a commitment to acquire, a product or service (the principal product or service); and

the third party provider offers a financial product for issue or sale to the customer, or requests or invites the customer to ask or apply for a financial product or to purchase a financial product; and

the financial product is an add-on insurance product in relation to the principal product or service; and

the offer, request or invitation is made otherwise than in writing; and

there is an add-on insurance deferral period in relation to the customer acquiring, or entering into a commitment to acquire, the principal product or service; and

the offer, request or invitation is made during the period of 6 weeks beginning on the first day of the add-on insurance deferral period.

the offer, request or invitation is made in response to contact initiated by the customer; and

either:

the offer, request or invitation is made after the end of the add-on insurance deferral period; or

the offer, request or invitation relates only to the purpose for which the customer initiated the contact.

(a) another person (the customer) acquires, or enters into a commitment to acquire, a product or service (the principal product or service); and

the first person offers a financial product for issue or sale to the customer, or requests or invites the customer to ask or apply for a financial product or to purchase a financial product; and

the financial product is an add-on insurance product in relation to the principal product or service; and

before the offer, request or invitation is made, the customer informs the first person that the customer does not want to receive such offers, requests or invitations.

(a) another person (the customer) acquires, or enters into a commitment to acquire, a product or service (the principal product or service); and

the first person offers a financial product for issue or sale to the customer, or requests or invites the customer to ask or apply for a financial product or to purchase a financial product; and

the financial product is an add-on insurance product in relation to the principal product or service; and

before the offer, request or invitation is made, the customer informs any of the following that the customer does not want to receive such offers, requests or invitations:

the person who provided the principal product or service (if that person is not the first person);

any person (other than the first person) with whom the person mentioned in subparagraph (i) has an arrangement of a kind mentioned in subparagraph 12DO(1)(b)(ii).

(a) if, under Corporations Act 2001, the customer has a right to return the product within a particular period—1 month after the end of that period; orsection 1019B of the

otherwise—1 month and 14 days after the product was sold.

if the product is constituted by a legal relationship between the customer and any other person—by force of this section, that relationship is terminated, with effect from the time of the return, without penalty to the customer; and

by force of this section, any contract for the acquisition of the product by the customer is terminated, with effect from the time of the return, without penalty to the customer.

must be the entire amount paid for the product; but

may be reduced by any amount paid as a result of a claim under the product.

(a) the person sells the add-on insurance product, or makes the offer, request or invitation, in the course of providing personal advice (within the meaning of Chapter 7 of the Corporations Act 2001) in circumstances where Division 2 (best interests obligations) of Part 7.7A of that Act applies; and

the add-on insurance product relates to a principal product or service that is provided by the person, and that the person recommends in the course of providing the advice.

covers that sale; and

provides for a period during which the product must not be sold.

an offer to issue or sell; or

a request or invitation to ask or apply for;

to an individual who:

wholly or partly owns a motor vehicle; or

has the use of a motor vehicle under a lease of at least 4 months’ duration; and

in respect of all of the following (whether or not the product also provides insurance cover in respect of other matters):

loss of, or damage to, the motor vehicle resulting from an accident;

loss of, or damage to, property of another person resulting from an accident in which the motor vehicle is involved;

loss of, or damage to, the motor vehicle caused by fire, theft or malicious acts.

is designed to travel by road; and

is designed to carry passengers, or is a motorcycle; and

does not have a carrying capacity that exceeds 2 tonnes.

an add-on insurance product sold by a specified person; or

a class of add-on insurance products sold by a specified person.

any evidence as to whether the add-on insurance product, or the class of add-on insurance products, has historically been good value for money;

whether, without an exemption, there is a high risk of underinsurance or non-insurance;

any evidence as to whether the add-on insurance product, or the class of add-on insurance products, is well understood by consumers;

any differences between the add-on insurance product, or add-on insurance products in the class, and financial products of a similar kind that are not sold as add-on insurance products;

any other matters that ASIC considers relevant.

(a) a product intervention order is in force under Corporations Act 2001 in relation to the product; andPart 7.9A of the

the product intervention order provides for a period during which the product must not be sold.

sells or offers to sell an add-on insurance product, if an exemption under section 12DX or 12DY applies to the product; or

sells a product or service, if:

there is an arrangement between the person and another person that relates to the provision by the other person of add-on insurance products in relation to that kind of product or service; and

an exemption under section 12DX or 12DY applies to any of those add-on insurance products; or

offers an add-on insurance product for issue or sale to a consumer, or requests or invites a consumer to ask or apply for an add-on insurance product or to purchase an add-on insurance product, where an exemption under section 12DX or 12DY applies to the add-on insurance product;

(a) a product intervention order is in force under Corporations Act 2001 in relation to the product; andPart 7.9A of the

the product intervention order provides for a period during which the product must not be sold.

a provision of Subdivision DA;

in relation to a contravention by a person of subsection 12DQ(4), it is necessary to prove that the person was reckless as to the matters in paragraph 12DQ(4)(c); and

in relation to a contravention by a person of subsection 12DR(3), it is necessary to prove that the person was reckless as to the matters in paragraphs 12DR(3)(e) and (f); and

in relation to a contravention by a person of subsection 12DS(2), it is necessary to prove that the person was reckless as to the matters in paragraph 12DS(2)(d).

the person is aware of a substantial risk that the fact exists; and

having regard to the circumstances known to the person, it is unjustifiable to take the risk.

contravenes a provision of Subdivision DA (sections 12DO to 12DZA); or

a provision of Subdivision DA;

to vary or revoke an exemption under subsection 12DY(1); or

to impose or vary a condition on an exemption under subsection 12DY(1).

a person enters into a commitment to acquire the principal product or service on or after the commencement of that Schedule; or

a person acquires the principal product or service on or after the commencement of that Schedule without previously having entered into such a commitment.

(b) an offer of, or a request or invitation relating to, a financial product that is an add-on insurance product in relation to a product or service (the principal product or service) that the consumer has indicated an intention to acquire from:

the person making the offer, request or invitation; or

another person with whom that person has an arrangement that relates to the provision of add-on insurance products in relation to products or services that include the principal product or service; or

(a) making the offer, request or invitation is covered by any of sections 12DU to 12DY of the Australian Securities and Investments Commission Act 2001; or

the offer, request or invitation is made after the end of the period of 6 weeks beginning on the end of the first day of:

the add-on insurance deferral period (within the meaning of section 12DP of that Act) in relation to the consumer acquiring, or entering into a commitment to acquire, the principal product or service; or

if there is no such add-on insurance deferral period—the add-on insurance pre-deferral period (within the meaning of that section).

any financial or other benefit in the nature of a commission; and

in relation to an add-on risk product provided to a person in connection with the person providing a warranty to another person—the amount (if any) by which the consideration for the warranty exceeds so much of the consideration for the add-on risk product as relates to the warranty.

any motor-powered vehicle of a kind intended for use as land transport (other than rail transport), whether or not it is for use on a road; or

any other vehicle of a kind intended to be towed by such a motor-powered vehicle;

the person provides a commission to another person, or receives a commission from another person, in connection with the supply (by any person to any person) of a financial service; and

(b) the financial service is the provision of an add-on risk product to a person (the product recipient) in connection with:

the sale or long-term lease of a motor vehicle to the product recipient; or

the provision of credit connected with the sale or long-term lease of a motor vehicle to the product recipient; or

the provision of a warranty by the product recipient in connection with the sale or long-term lease of a motor vehicle to another person by the product recipient; and

the person acquiring the motor vehicle does so as a consumer (within the meaning of the Australian Consumer Law); and

providing the add-on risk product is covered by a determination under subsection (3); and

the value of the commission exceeds the cap that applies, under that determination, to providing the add-on risk product.

limit the circumstances in which provision of an add-on risk product of that kind is covered by the determination;

provide for the way in which the value of commissions is to be ascertained for the purposes of the determination.

the value ascertained in accordance with the determination under subsection (3) that covers the provision of the add-on risk product; or

if the determination does not provide for the way in which the value is to be ascertained—the sum of:

to the extent that the commission is expressed as an amount of money—that amount; and

otherwise—the market value of so much of the commission as is not expressed as an amount of money.

in accordance with the determination under subsection (3) that covers the provision of the add-on risk products; or

if the determination does not provide for such apportionment—on a reasonable basis.

one single commission is provided that comprises all of those commissions; and

if those commissions are provided by more than one person—that single commission is jointly provided by all of those persons; and

the value of that single commission is the sum of the values of all of those commissions.

is an add-on risk product of a kind covered by a determination under subsection (3); and

is provided in connection with:

the sale or long-term lease of a motor vehicle; or

the provision of credit connected with the sale or long-term lease of a motor vehicle.

a person is convicted of 2 or more offences against subsection (1AA) constituted by contraventions of section 12DMC; and

the contraventions appear to the Court to have been of the same nature or a substantially similar nature and to have occurred at or about the same time;

a person provides a commission to another person in connection with the supply (by any person to any person) of a financial service; and

(b) the financial service is the provision of an add-on risk product to another person (the consumer) in connection with:

the sale or long-term lease of a motor vehicle to the consumer; or

the provision of credit connected with the sale or long-term lease of a motor vehicle to the consumer; and

providing the commission contravenes section 12DMC;

(a) a person (the motor vehicle dealer) receives a commission in connection with the supply (by any person to any person) of a financial service; and

(b) the financial service is the provision of an add-on risk product to the motor vehicle dealer in connection with the giving of a warranty by the motor vehicle dealer in connection with the sale or long-term lease of a motor vehicle to another person (the consumer); and

providing the commission contravenes section 12DMC;

(a) is an add-on risk product of a kind covered by a determination under subsection 12DMC(3) of the Australian Securities and Investments Commission Act 2001; and

is provided in connection with:

the sale or long-term lease of a motor vehicle; or

the provision of credit connected with the sale or long-term lease of a motor vehicle.

the consumer is a retail client; and

the offer, request or invitation is made in the course of, or because of, an unsolicited contact with the consumer.

an offer, request or invitation made in the course of the giving of advice to the consumer by a person who is required under Division 2 of Part 7.7A to act in the best interests of the consumer in relation to the advice; or

an offer, request or invitation of a kind prescribed by the regulations.

the contact is wholly or partly in one or more of the following forms:

a telephone call;

a face-to-face meeting;

any other real-time interaction in the nature of a discussion or conversation; and

either:

the consumer did not consent to the contact; or

if the consumer consented to the contact—the requirements of subsection (5) are not met.

in the case of an offer of that financial product for issue or sale to the consumer, either:

the consent was a consent to the person contacting the consumer for the purpose of making the offer; or

offering to the consumer that financial product for issue or sale was reasonably within the scope of the consumer’s consent; and

in the case of a request or invitation to the consumer to ask or apply for a financial product or to purchase a financial product, either:

the consent was a consent to the person requesting or inviting the consumer to ask or apply for, or to purchase, that financial product; or

requesting or inviting the consumer to ask or apply for, or to purchase, that financial product was reasonably within the scope of the consumer’s consent; and

the consumer gave the consent before the start of the contact; and

giving the consent was a positive and voluntary act of the consumer; and

the consent was clear, and a reasonable person would have understood that the consumer consented to the contact; and

if the consent indicated the form of contact that the consumer wants—the contact is in that form; and

the consent was given:

within 6 weeks before the contact occurs; or

within such longer period (not exceeding 12 weeks) as the consumer agrees to, if the issue or sale of the financial product reasonably requires a period exceeding 6 weeks to allow for a medical examination; and

the consent was not withdrawn before the contact occurs.

because of subsection 734(4), (5), (6), (7), (8) or (9), the advertisement or publication does not contravene subsection 734(2); or

because of paragraphs 1018A(1)(c) to (e), or because of subsection 1018A(3), (4) or (5), the advertisement or publication does not contravene subsection 1018A(1); or

because of paragraphs 1018A(2)(c) to (f), or because of subsection 1018A(3), (4) or (5), the advertisement or publication does not contravene subsection 1018A(2).

if, under section 1019B, the consumer has a right to return the financial product within a particular period—1 month after the end of that period; or

otherwise—1 month and 14 days after the financial product was issued or sold.

if the financial product is constituted by a legal relationship between the consumer and the issuer—by force of this section, that relationship is terminated, with effect from the time of the return, without penalty to the consumer; and

by force of this section, any contract for the acquisition of the product by the consumer is terminated, with effect from the time of the return, without penalty to the consumer; and

such additional consequences (which may include the imposition of additional obligations) apply as are specified in the regulations.

this section does not apply in relation to a financial product included in a class of financial products that the regulations exclude from this section; and

if the regulations provide that this section applies in relation to a class of financial products only if specified additional requirements are satisfied—this section does not apply in relation to a financial product included in that class unless those requirements are satisfied; and

in circumstances specified in the regulations, this section does not apply to any financial product.

the person carries on a business or is proposing to carry on a business; and

(b) the person uses the word insurance to describe (expressly or by implication) a product or service that the person supplies, or proposes to supply, in the course of carrying on the business; and

the product or service is not insurance; and

(d) it is likely in all the circumstances (including the use of the word insurance) that the product or service could be mistakenly believed to be insurance.

in the case of an individual—50 penalty units; or

in the case of a body corporate—500 penalty units.

the person carries on a business or is proposing to carry on a business; and

(b) the person uses the word insurer to describe (expressly or by implication) the person in connection with a product or service that the person supplies, or proposes to supply, in the course of carrying on the business; and

either:

the product or service is not insurance; or

the person would breach a requirement mentioned in subsection (3) if the person supplied the product or service in the course of carrying on the business; and

(d) in a case where the product or service is not insurance—it is likely in all the circumstances (including the use of the word insurer) that the product or service could be mistakenly believed to be insurance.

in the case of an individual—50 penalty units; or

in the case of a body corporate—500 penalty units.

section 9 or 10 of this Act (need to be authorised to carry on insurance business);

(b) Life Insurance Act 1995 (registration of life companies);section 17 of the

(c) Private Health Insurance (Prudential Supervision) Act 2015 (carrying on health insurance business without registration).section 10 of the

the person is a government entity; or

the person:

is covered by a determination under subsection (6); and

if that determination is subject to conditions—meets those conditions; or

the product or service is of a kind prescribed by the regulations; or

the product or service is State insurance (within the meaning of paragraph 51(xiv) of the Constitution) not extending beyond the limits of the State concerned.

a Department of State of the Commonwealth; or

(b) a Department of the Parliament established under the Parliamentary Service Act 1999; or

(c) an Executive Agency, or Statutory Agency, within the meaning of the Public Service Act 1999; or

a Department of State of a State or Territory; or

an entity that is established for a public purpose by a law of the Commonwealth, a State or a Territory.

revoke a determination under subsection (6) relating to a specified person; or

vary such a determination by varying or including conditions to which the determination is subject;

provide a claims handling and settling service, on behalf of the insurer as insurer, in relation to risk insurance products;

carries on a business of representing persons insured under insurance products in pursuing claims under those products; and

represents those persons insured for a benefit given as consideration for that service, whether a monetary benefit or otherwise and whether given to the person providing the services or another person nominated by that person.

the person carries on a business of providing claims handling and settling services on behalf of one or more insurers; and

where the person, as part of that business, also provides goods or other services—providing claims handling and settling services on behalf of one or more insurers is the primary part of the business.

circumstances in which, for the purposes of subsection (1), providing claims handling and settling services on behalf of one or more insurers is taken to be the primary part of a business carried on by a person; and

circumstances in which, for the purposes of subsection (1), providing claims handling and settling services on behalf of one or more insurers is taken not to be the primary part of a business carried on by a person.

provide a claims handling and settling service (see section 766G); or

circumstances in which giving a recommendation, statement of opinion or report could reasonably be regarded as a necessary part of providing a claims handling and settling service for the purposes of subsection (7A); and

circumstances in which giving a recommendation, statement of opinion or report could not reasonably be regarded as a necessary part of providing a claims handling and settling service for the purposes of subsection (7A).

the person makes a recommendation, or states an opinion, in the following circumstances:

the recommendation, or statement of opinion, is made in response to an inquiry by or on behalf of another person about an existing or a potential claim by the other person under an insurance product;

the recommendation, or statement of opinion, could reasonably be expected to influence a decision whether to continue with the existing claim or to make the potential claim; or

the person assists another person to make a claim under an insurance product; or

the person represents a person insured under an insurance product in pursuing a claim under the product; or

the person assesses whether an insurer has a liability under an insurance product, or provides assistance in relation to such an assessment; or

the person makes a decision to accept or reject all or part of a claim under an insurance product; or

the person quantifies the extent of the insurer’s liability to another person under an insurance product, or provides assistance in relation to the quantification of the extent of such a liability; or

the person offers to settle all or part of a claim under an insurance product; or

the person satisfies a liability of the insurer under an insurance product in full or partial settlement of a claim under the insurance product.

provides goods or services to a person insured under an insurance product in satisfaction of the liability of the insurer under the product; and

has been engaged by a financial services licensee, or by another person on behalf of a financial services licensee, to provide those goods or services; and

does not (apart from this section) provide those goods or services as a representative of the financial services licensee;

the service is a claims handling and settling service in relation to an insurance product, and the person providing the service is not one of the following:

the insurer under the insurance product;

an insurance fulfilment provider who has authority from the insurer to reject all or part of a claim under the insurance product;

an insurance claims manager;

(iv) an insurance broker (within the meaning of the Insurance Contracts Act 1984) who provides the claims handling and settling service in relation to the insurance product on behalf of the insurer;

(v) a person who has provided, or has entered into an arrangement to provide, financial product advice to a person insured under the insurance product (including a person insured as a third party beneficiary under the contract of insurance that constitutes the insurance product, within the meaning of the Insurance Contracts Act 1984) and who also provides the claims handling and settling service on behalf of the insurer under the insurance product;

if the insurance product is prescribed by the regulations for the purposes of this subparagraph—a claimant intermediary representing a person insured under the product in pursuing a claim under the product;

the service is a claims handling and settling service in relation to an insurance product and all of the following apply:

the claims handling and settling service is provided under an arrangement between the issuer of the insurance product and a financial services licensee;

the issuer of the insurance product is prescribed by the regulations, or of a class prescribed by the regulations;

under the arrangement, the financial services licensee, or their authorised representatives, may provide the claims handling and settling service in relation to the insurance product;

the provision of the claims handling and settling service is covered by the financial services licensee’s Australian financial services licence;

the claims handling and settling service is provided to the insured as a retail client;

the service is the provision of a claims handling and settling service in relation to an insurance product provided to a wholesale client under an arrangement between the issuer of the insurance product and a financial services licensee;

the service is a claims handling and settling service of one of the following kinds:

advice given by a lawyer, in a professional capacity as a lawyer, about matters of law, legal interpretation or the application of the law to any facts;

except as prescribed by the regulations—other advice given by a lawyer in the ordinary course of activities as a lawyer, that is reasonably regarded as a necessary part of those activities;

action taken by a lawyer, in a professional capacity as a lawyer, to determine whether an insurer is liable to another person under an insurance product, or to quantify the extent of the insurer’s liability;

negotiation by a lawyer, in a professional capacity as a lawyer, of the settlement of a claim under an insurance product;

other conduct by a lawyer, in a professional capacity as a lawyer and on behalf of another person, that could reasonably regarded as a necessary part of acting on instruction and for which the lawyer has not received and is not entitled to receive a benefit other than the payment of professional charges, the reimbursement for expenses incurred on behalf of the other person, or the payment on account of expenses to be incurred on behalf of the other person;

the service is a claims handling and settling service in relation to an insurance product; and

the principal holds an Australian financial services licence covering the provision of the service; and

either the provider is not a person described in subparagraphs 911A(2)(ek)(i) to (vi) (insurers etc.) or, if the provider is a person described in one of those subparagraphs, the claims handling and settling service is of a kind described in paragraph 911A(2)(en) (legal services);

these conditions are satisfied:

the service is a claims handling and settling service in relation to an insurance product; and

the principal is an authorised representative of a financial services licensee; and

the financial services licensee holds an Australian financial services licence covering the provision of the service; and

the authorisation by the financial services licensee covers the provision of the service by the authorised representative; and

the authorised representative has entered into an arrangement with the provider for the provider to provide the service on behalf of the authorised representative and the financial services licensee; and

either the provider is not a person described in subparagraphs 911A(2)(ek)(i) to (vi) (insurers etc.) or, if the provider is a person described in one of those subparagraphs, the claims handling and settling service is of a kind described in paragraph 911A(2)(en) (legal services).

take reasonable steps to ensure that its representatives comply with the financial services laws, except to the extent that:

those representatives are insurance fulfilment providers; and

the financial services laws relate to the provision of claims handling and settling services by those representatives; and

the financial service consists only of a claims handling and settling service; and

the claims handling and settling service does not consist only of representing the client as a person insured under an insurance product in pursuing a claim under that product.

the service is offering to settle all or part of a claim under a general insurance product using a cash payment;

the service is provided:

(i) by a financial services licensee (the providing entity); or

(ii) by a person (the providing entity) in their capacity as authorised representative of a financial services licensee (the authorising licensee), or of 2 or more financial services licensees (the authorising licensees); or

(iii) by another person on behalf of a financial services licensee (the providing entity), or on behalf of 2 or more financial services licensees (each of which is a providing entity);

(c) the service is provided to a person (the client) as a retail client who is insured under the insurance product;

cash payment is not the only option legally available to the client to settle the claim, or the part of the claim.

a statement outlining the options for settlement legally available to the client under the insurance product; and

a statement setting out the sum insured under the insurance product; and

a statement setting out:

the total amount of the cash settlement being offered; and

the amount of each component of the total amount of cash settlement being offered (such as components representing the sum insured, additional payments relating to emergencies and ex gratia payments); and

a statement that the client should consider obtaining independent legal or financial advice before settling; and

if, despite accepting the offer, the client would be entitled under the insurance product to have the payout reviewed—an outline of the rights of review; and

any other information prescribed by the regulations.

if it is a Cash Settlement Fact Sheet—there is an omission from the Cash Settlement Fact Sheet of material required by section 948F; or

a Cash Settlement Fact Sheet; or

the representative gives (see subsection (5)) a person a disclosure document or statement that is one of the following, in circumstances in which the document or statement is required by a provision of this Part to be given to the person:

a Statement of Advice;

a Cash Settlement Fact Sheet;

information, a statement or a copy of a record required by subsection 941C(5) or (7), 941D(2), 946AA(5), 946B(3), (6) or (8) or 946C(2); and

the licensee provides the representative with a disclosure document or statement, being:

a Statement of Advice; or

a Cash Settlement Fact Sheet; or

information, a statement or a copy of a record required by subsection 941C(5) or (7), 941D(2), 946AA(5), 946B(3), (6) or (8) or 946C(2); or

the licensee provides the representative with a disclosure document or statement, being:

a Statement of Advice; or

a Cash Settlement Fact Sheet; or

information, a statement or a copy of a record required by subsection 941C(5) or (7), 941D(2), 946AA(5), 946B(3), (6) or (8) or 946C(2); or

the licensee or representative gives (see subsection (3)) a person a Cash Settlement Fact Sheet in circumstances in which it is required by a provision of this Part to be given to the person; and

the Cash Settlement Fact Sheet does not comply with section 948E.

if it is a Cash Settlement Fact Sheet—there is an omission from the Cash Settlement Fact Sheet of material required by section 948F; or

a Cash Settlement Fact Sheet; or

if the person lodges an application for an Australian financial services licence covering claims handling and settling services and ASIC gives the applicant notice in writing on or before 30 June 2021 that the application is granted—the last licence-processing day; or

(b) if the person lodges an application for an Australian financial services licence covering claims handling and settling services, the application complies with and is pending on 30 June 2021—the earlier of:section 913A

if, after 30 June 2021, the person withdraws the application—the day on which the application is withdrawn; and

if, after 30 June 2021, ASIC notifies the person in writing that ASIC refuses to receive the application under subsection 1274(8)—the day on which ASIC gives that notification; and

if ASIC refuses to grant the person an Australian financial services licence covering claims handling and settling services—the day on which ASIC gives the person notice in writing of the refusal; and

the last licence-processing day; or

if the person lodges an application for ASIC to vary the conditions on the licence to specify that claims handling and settling services are financial services that the licensee is authorised to provide and ASIC gives the applicant notice in writing on or before 30 June 2021 that the application is granted—the last licence-processing day; or

(d) if the person is a financial services licensee and lodges an application for ASIC to vary the conditions on the licence to specify that claims handling and settling services are financial services that the licensee is authorised to provide, the application complies with paragraph 914A(2)(b) and is pending on 30 June 2021—the earlier of:

if, after 30 June 2021, the person withdraws the application—the day on which the application is withdrawn; and

if, after 30 June 2021, ASIC notifies the person in writing that ASIC refuses to receive the application under subsection 1274(8)—the day on which ASIC gives that notification; and

if ASIC refuses to grant the person the variation—the day on which ASIC gives the person notice in writing of the refusal; and

the last licence-processing day; or

otherwise—30 June 2021.

31 December 2021; and

if the Minister determines another day under subsection (3)—that other day.

the application has not been withdrawn by the applicant on or before that day;

ASIC has not, on or before that day, given the applicant notice in writing that the application has been granted or refused;

ASIC has not, on or before that day, notified that applicant in writing that ASIC refuses to receive the application under subsection 1274(8).

section 912C; and

section 912CA; and

section 912E.

a financial services licensee from giving a person a notice under section 916A during the transition period for the licensee authorising the person to provide claims handling and settling services after the end of that transition period; or

an authorised representative of a financial services licensee giving an individual written notice under section 916B during the transition period for the licensee authorising that individual to provide specified claims handling and settling services or claims handling and settling services on behalf of the licensee after the end of the transition period for the authorised representative.

performing the RSE licensee’s duties, or exercising the RSE licensee’s powers, as a trustee of a registrable superannuation entity; or

providing personal advice.

APRA for the purposes of APRA’s administration of the provisions it administers (including provisions both APRA and ASIC administer); and

ASIC for the purposes of ASIC’s administration of the provisions it administers (including provisions both APRA and ASIC administer); and

the Commissioner of Taxation for the purposes of the administration of the provisions the Commissioner of Taxation administers.

Division 3 of Part 25 (see instead item 58 of the general administration table);

sections 328 and 332 (see instead subsection (8) of this section).

powers and duties conferred on ASIC by section 255 are conferred only in relation to persons who are relevant persons in relation to superannuation entities; and

powers and duties conferred on ASIC by section 256 are conferred only in relation to the affairs of superannuation entities.

powers and duties conferred on the Commissioner of Taxation by Divisions 4 to 8 of Part 25 (other than section 285) are conferred only in relation to:

persons who are relevant persons in relation to superannuation entities; and

the affairs of superannuation entities; and

powers and duties are not conferred on the Commissioner of Taxation by section 342 (about pre-1 July 88 funding credits and debits).

(a) APRA for the purposes of the administration of provisions administered by APRA (including provisions both APRA and ASIC administer) or by the Commissioner of Taxation; and

ASIC for the purposes of the administration of provisions administered solely by ASIC.

keeping of reports to members of, or beneficiaries in, funds; or

disclosure of information to members of, or beneficiaries in, funds; or

disclosure of information about funds (including disclosure of information to ASIC but not including disclosure of information to APRA); or

any other matter prescribed by regulations for the purposes of this paragraph.

if the provision in which it occurs is, or is being applied for the purposes of, a provision that is administered by APRA (other than a provision that is administered by both APRA and ASIC)—APRA; or

if the provision in which it occurs is, or is being applied for the purposes of, a provision that is administered by ASIC (other than a provision that is administered by both APRA and ASIC)—ASIC; or

(c) if the provision in which it occurs is, or is being applied for the purposes of, a provision that is administered by both APRA and ASIC—either APRA or ASIC, but, if the context requires the reference to be particularly to one of those bodies, then Regulator means that body; or

if the provision in which it occurs is, or is being applied for the purposes of, a provision that is administered by the Commissioner of Taxation—the Commissioner of Taxation.

subsection 242M(1).

(a) made under subsection 265(1) of the Superannuation Industry (Supervision) Act 1993; and

in force immediately before the commencement of this item;

(a) made under subsection 298A(1) of the Superannuation Industry (Supervision) Act 1993; and

in force immediately before the commencement of this item;

provide a superannuation trustee service; or

a person commits an offence against this Act in the person’s capacity as trustee of a registrable superannuation entity; and

the penalty applicable to the offence is, or includes, a fine;

(a) in relation to a superannuation entity to which paragraph (b) does not apply—the person who is the trustee of the entity for the purposes of the Superannuation Industry (Supervision) Act 1993; or

(b) in relation to a regulated superannuation fund that is the scheme provided for by the Australian Defence Force Cover Act 2015—CSC (within the meaning of the Governance of Australian Government Superannuation Schemes Act 2011).

provide a superannuation trustee service (see section 766H); or

the operation of an exempt public sector superannuation scheme;

conduct of a kind prescribed by regulations made for the purposes of this paragraph.

the service is a superannuation trustee service that is provided only to wholesale clients;

ASIC cannot impose, vary or revoke a condition on the licence if the licensee is authorised to provide a superannuation trustee service and doing so would, in ASIC’s opinion, have the result of preventing the licensee from providing that service, unless:

(i) APRA has agreed in writing with the proposed action; or

the licensee applied under paragraph 914A(2)(b) for ASIC to take the proposed action; or

(iii) the licensee’s RSE licence is not in effect, and is not treated by Superannuation Industry (Supervision) Act 1993 as if it were in effect;section 29GB of the

ASIC cannot suspend or cancel the licensee’s licence if the licensee is authorised to provide a superannuation trustee service unless:

APRA has agreed in writing with the proposed action; or

the licensee applied under paragraph 915B(1)(e), (2)(d), (3)(d) or (4)(d) for ASIC to take the proposed action; or

(iii) the licensee’s RSE licence is not in effect, and is not treated by Superannuation Industry (Supervision) Act 1993 as if it were in effect;section 29GB of the

ASIC cannot make the banning order if doing so would, in ASIC’s opinion, have the result of preventing the licensee from providing that service, unless:

APRA agrees in writing to the making of the banning order; or

(ii) the licensee’s RSE licence is not in effect, and is not treated by Superannuation Industry (Supervision) Act 1993 as if it were in effect;section 29GB of the

if ASIC makes the banning order and paragraph (a) does not apply to that action, ASIC must, within one week, inform APRA of the action that has been taken.

the providing entity is the trustee of a registrable superannuation entity; and

the financial service consists only of a superannuation trustee service.

(a) definition of registrable superannuation entity;

(b) definition of RSE licensee.

a person commits an offence in the person’s capacity as trustee of a registrable superannuation entity; and

the penalty applicable to the offence is, or includes, a fine;

the licensee’s Australian financial services licence authorised the licensee to deal in a superannuation product; and

the licensee was also an RSE licensee.

before the commencement day, a person lodges an application for an Australian financial services licence authorising the person to deal in a superannuation product; and

on or after the commencement day, ASIC decides the application by granting the person an Australian financial services licence authorising the person to deal in a superannuation product; and

at the time the licence is granted, the person is an RSE licensee.

before the commencement day, a person lodges an application for ASIC to vary the conditions on the person’s Australian financial services licence by authorising the person to deal in a superannuation product; and

on or after the commencement day, ASIC decides the application by varying the conditions on the person’s licence to authorise the person to deal in a superannuation product; and

at the time the licence is varied, the person is an RSE licensee.

vary or revoke the condition; or

vary, suspend or cancel the licence;

a condition is expressed to have effect as mentioned in subsection (2A); and

(b) a provision of the prudential standards (the inconsistent provision) is inconsistent with the condition to any extent;

liability for breach of trust if the trustee:

fails to act honestly in a matter concerning the entity; or

intentionally or recklessly fails to exercise, in relation to a matter affecting the entity, the degree of care and diligence that the trustee was required to exercise; or

liability for an amount of a criminal, civil or administrative penalty incurred by the trustee of the entity in relation to a contravention of a law of the Commonwealth (including this Act); or

the payment of any amount payable under an infringement notice (however described) given under a law of the Commonwealth (including this Act); or

liability for the costs of undertaking a course of education in compliance with an education direction (within the meaning of this Act).

a liability that arises because the director:

fails to act honestly in a matter concerning the entity; or

intentionally or recklessly fails to exercise, in relation to a matter affecting the entity, the degree of care and diligence that the director is required to exercise; or

liability for an amount of a criminal, civil or administrative penalty incurred by the director in relation to a contravention of a law of the Commonwealth (including this Act); or

the payment of any amount payable under an infringement notice (however described) given under a law of the Commonwealth (including this Act); or

liability for the costs of undertaking a course of education in compliance with an education direction (within the meaning of this Act).

liabilities imposed on or after 1 January 2022; and

amounts that become payable under infringement notices (however described) given on or after 1 January 2022.

comply with the Reference Checking and Information Sharing Protocol in relation to:

if the licensee is an individual to whom the Protocol applies—the licensee; and

if a former, current or prospective representative of the licensee is an individual to whom the Protocol applies—the representative; and

sharing information about any or all of the following:

a financial services licensee who is an individual;

individuals who are former, current or prospective representatives of a financial services licensee;

sharing information about any or all of the following:

a financial services licensee who is an individual;

individuals who are former, current or prospective representatives of a financial services licensee;

keeping and retaining records of information shared, and the circumstances under which the information is shared.

(a) require or permit personal information (within the meaning of the Privacy Act 1988) to be shared, other than with the consent of the individual to whom the information relates; or

require information to be shared in relation to conduct that occurred more than 5 years before the information is shared.

provide credit assistance in relation to credit contracts secured by mortgages over residential property; and

be a mortgage broker or a director, employee or agent of a mortgage broker.

comply with the Reference Checking and Information Sharing Protocol in relation to:

if the licensee is an individual to whom the Protocol applies—the licensee; and

if a former, current or prospective representative of the licensee is an individual to whom the Protocol applies—the representative; and

sharing information about any or all of the following:

a licensee who is an individual;

individuals who are former, current or prospective representatives of a licensee;

sharing information about any or all of the following:

a licensee who is an individual;

individuals who are former, current or prospective representatives of a licensee;

keeping and retaining records of information shared, and the circumstances under which that information is shared.

(a) require or permit personal information (within the meaning of the Privacy Act 1988) to be shared, other than with the consent of the individual to whom the information relates; or

require information to be shared in relation to conduct that occurred more than 5 years before the information is shared.

provide credit assistance in relation to credit contracts secured by mortgages over residential property; and

(b) be a mortgage broker or a director, employee or agent of a mortgage broker.

the financial services licensee or a representative of the financial services licensee has breached a core obligation and the breach is significant;

(b) the financial services licensee or a representative of the financial services licensee is no longer able to comply with a core obligation and the breach, if it occurs, will be significant;

(c) the financial services licensee or a representative of the financial services licensee conducts an investigation into whether there is a reportable situation of the kind mentioned in paragraph (a) or (b) and the investigation continues for more than 30 days;

an investigation described in paragraph (c) discloses that there is no reportable situation of the kind mentioned in paragraph (a) or (b).

in the course of providing a financial service, the financial services licensee or a representative of the financial services licensee has engaged in conduct constituting gross negligence; or

the financial services licensee or a representative of the financial services licensee has committed serious fraud; or

any other circumstances prescribed by the regulations for the purposes of this paragraph exist.

an obligation under section 912A or 912B, other than the obligation under paragraph 912A(1)(c);

(b) the obligation under paragraph 912A(1)(c), so far as it relates to provisions of this Act or the ASIC Act referred to in paragraphs (a), (b), (ba) and (c) of the definition of financial services law in section 761A;

in relation to financial services, other than traditional trustee company services provided by a licensed trustee company—the obligation under paragraph 912A(1)(c), so far as it relates to Commonwealth legislation that is covered by paragraph (d) of that definition and that is specified in regulations made for the purposes of this paragraph;

in relation to traditional trustee company services provided by a licensed trustee company—the obligation under paragraph 912A(1)(c), so far as it relates to Commonwealth, State or Territory legislation, or a rule of common law or equity, that is covered by paragraph (d) or (e) of that definition.

the breach is constituted by the commission of an offence under any law and the commission of the offence is punishable on conviction by a penalty that may include imprisonment for a maximum period of:

if the offence involves dishonesty—3 months or more; or

in any other case—12 months or more; or

the breach is constituted by the contravention of a civil penalty provision under any law, other than a civil penalty provision prescribed by the regulations for the purposes of this paragraph; or

the breach is constituted by a contravention of subsection 1041H(1) of this Act or subsection 12DA(1) of the ASIC Act (misleading or deceptive conduct in relation to a financial product or a financial service); or

the breach results, or is likely to result, in material loss or damage to:

in the case of a managed investment scheme—a member or members of the scheme; or

in the case of a superannuation entity—a member or members of the entity; or

(iii) in all cases—a person or persons to whom the financial services licensee or a representative of the financial services licensee provides a financial product or a financial service as a wholesale or retail client; or

any other circumstances prescribed by the regulations for the purposes of this paragraph exist.

the number or frequency of similar breaches;

the impact of the breach on the financial services licensee’s ability to provide financial services covered by the licence;

the extent to which the breach indicates that the financial services licensee’s arrangements to ensure compliance with those obligations are inadequate;

any other matters prescribed by regulations made for the purposes of this paragraph.

the financial services licensee must lodge a report in relation to the reportable situation with ASIC; and

the report must be lodged in accordance with this section.

the licensee is a body regulated by APRA; and

the licensee has given a report to APRA that contains all of the information that is required in a report under this section in relation to the reportable situation.

the licensee is a body regulated by APRA; and

the auditor or actuary of the licensee gives APRA a written report about a matter to which the reportable situation relates; and

the report is given before, or within 10 business days after, the licensee first knows that, or is reckless with respect to whether, there are reasonable grounds to believe that the reportable situation has arisen.

a reportable situation has arisen in relation to another financial services licensee of the kind mentioned in:

paragraph 912D(1)(a) or (b) (significant breach or likely breach of a core obligation); or

subsection 912D(2) (gross negligence or serious fraud); and

one of the following is an individual who has engaged in conduct that forms part of the reportable situation:

the other financial services licensee;

an employee of the other financial services licensee or of a related body corporate of the other financial services licensee, acting within the scope of the employee’s employment;

a director of the other financial services licensee or of a related body corporate of the other financial services licensee, acting within the scope of the director’s duties as director;

another representative of the other financial services licensee acting within the scope of the representative’s authority given by the licensee; and

the individual provides personal advice to retail clients in relation to relevant financial products.

the existence of the reportable situation; and

all of the information that is required in a report under this section in relation to the reportable situation.

the financial services licensee must lodge written notice of that fact with ASIC; and

the notice must be lodged in accordance with this section.

reports lodged with ASIC during the financial year under section 912DAA in relation to reportable situations of the kind mentioned in paragraphs 912D(1)(a) and (b) (breaches and likely breaches of core obligations); and

reports lodged with APRA during the financial year, as described in subsections 912DAA(5) and (6), in relation to reportable situations of the kind mentioned in paragraphs 912D(1)(a) and (b) (breaches and likely breaches of core obligations); and

the entities in relation to which those reports are lodged with ASIC or APRA.

be published within 4 months after the end of the financial year; and

be published on ASIC’s website; and

(c) include the information (if any) prescribed by the regulations, which may include personal information (within the meaning of the Privacy Act 1988) in relation to a financial services licensee who is an individual; and

if the regulations prescribe how the information is to be organised—be organised in accordance with the regulations.

the licensee, or a representative of the licensee, provides or has provided personal advice to the affected client as a retail client in relation to a relevant financial product; and

there are reasonable grounds to believe that the reportable situation has arisen in relation to the licensee as mentioned in:

paragraph 912D(1)(a) (significant breach of a core obligation); or

subsection 912D(2) (gross negligence or serious fraud); and

there are reasonable grounds to suspect that:

the affected client has suffered or will suffer loss or damage as a result of the reportable situation; and

the affected client has a legally enforceable right to recover the loss or damage from the licensee.

be given in writing within 30 days after the financial services licensee first knows of, or is reckless with respect to, the circumstances mentioned in paragraphs (1)(a), (b) and (c); and

if ASIC has approved the form in which the notice must be given:

be in the approved form; and

include the information, statements, explanations or other matters required by the form; and

be accompanied by any other material required by the form.

(a) the licensee, or a representative of the licensee, provides or has provided personal advice to a person as a retail client (the affected client) in relation to a relevant financial product; and

there are reasonable grounds to believe that the reportable situation has arisen in relation to the licensee as mentioned in:

paragraph 912D(1)(a) (significant breach of a core obligation); or

subsection 912D(2) (gross negligence or serious fraud); and

there are reasonable grounds to suspect that:

the affected client has suffered or will suffer loss or damage as a result of the reportable situation; and

the affected client has a legally enforceable right to recover the loss or damage from the licensee.

identify the conduct that gave rise to the reportable situation; and

quantify the loss or damage that there are reasonable grounds to believe:

the affected client has suffered or will suffer as a result of the reportable situation; and

the affected client has a legally enforceable right to recover from the licensee; and

do anything else prescribed by the regulations for the purposes of this paragraph.

in writing within 10 days after the completion of the investigation; and

if ASIC has approved the form in which the notice must be given:

in the approved form; and

that includes the information, statements, explanations or other matters required by the form; and

that is accompanied by any other material required by the form.

(a) the affected client has suffered or will suffer loss or damage as a result of the reportable situation; and

the affected client has a legally enforceable right to recover the loss or damage from the financial services licensee;

the breach occurs before 1 October 2021; and

before 1 October 2021, the responsible entity knows of the breach.

the obligation is breached or is likely to be breached before 1 October 2021; and

before 1 October 2021, the licensee knows that the obligation has been breached or is likely to be breached.

the licensee becomes a participant, or ceases to be a participant, in a licensed market or a licensed CS facility before 1 October 2021; and

before 1 October 2021, the licensee knows of that circumstance.

to the responsible entity of a registered scheme in relation to a breach of this Act that occurs before 1 October 2021, but in respect of which paragraph 601FC(1)(l) (as in force immediately before 1 October 2021) does not apply on or after 1 October 2021 (see subsection 1671A(1)); and

to a financial services licensee in relation to a breach or likely breach of an obligation mentioned in paragraph 912D(1)(a) (as in force immediately before 1 October 2021) that occurs before 1 October 2021, but in respect of which subsections 912D(1) to (1D) (as in force immediately before 1 October 2021) do not apply on or after 1 October 2021 (see subsection 1671A(2)); and

in relation to reportable situations arising on or after 1 October 2021.

to a financial services licensee who becomes a participant, or ceases to be a participant, in a licensed market or a licensed CS facility before 1 October 2021, but in respect of which subsection 912D(2) (as in force immediately before 1 October 2021) does not apply on or after 1 October 2021 (subsection 1671A(3)); and

to a financial services licensee who becomes a participant, or ceases to be a participant, in a licensed market or a licensed CS facility on or after 1 October 2021.

the licensee or a representative of the licensee has breached a core obligation and the breach is significant;

(b) the licensee or a representative of the licensee is no longer able to comply with a core obligation and the breach, if it occurs, will be significant;

the licensee or a representative of the licensee conducts an investigation into whether there is a reportable situation of the kind mentioned in paragraph (a) or (b) and the investigation continues for more than 30 days;

an investigation described in paragraph (c) discloses that there is no reportable situation of the kind mentioned in paragraph (a) or (b).

in the course of engaging in a credit activity, the licensee or a representative of the licensee has engaged in conduct constituting gross negligence; or

the licensee or a representative of the licensee has committed serious fraud; or

any other circumstances prescribed by the regulations for the purposes of this paragraph exist.

an obligation under section 47, other than the obligation under paragraph 47(1)(d);

the obligation under paragraph 47(1)(d), so far as it relates to this Act, the Transitional Act and Division 2 of Part 2 of the ASIC Act and regulations made for the purpose of that Division;

(c) the obligation under paragraph 47(1)(d), so far as it relates to Commonwealth legislation that is covered by paragraph (d) of the definition of credit legislation.

the breach is constituted by the commission of an offence under any law and the commission of the offence is punishable on conviction by a penalty that may include imprisonment for a maximum period of:

if the offence involves dishonesty—3 months or more; or

in any other case—12 months or more; or

the breach is constituted by a contravention of a civil penalty provision under any law, other than a civil penalty provision prescribed by the regulations for the purposes of this paragraph; or

the breach is constituted by a contravention of a key requirement (as defined for the purposes of the National Credit Code), other than a key requirement prescribed by the regulations for the purposes of this paragraph; or

the breach is constituted by a contravention of subsection 12DA(1) of the ASIC Act (misleading or deceptive conduct in relation to a financial service); or

the breach results, or is likely to result, in material loss or damage to a credit activity client of the licensee; or

any other circumstances prescribed by the regulations for the purposes of this paragraph exist.

the number or frequency of similar breaches;

the impact of the breach on the licensee’s ability to engage in credit activities covered by the licence;

the extent to which the breach indicates that the licensee’s arrangements to ensure compliance with those obligations are inadequate;

any other matters prescribed by regulations made for the purposes of this paragraph.

is a party to a credit contract, or will be a party to a proposed credit contract, in relation to which the licensee, or a representative of the licensee, performs the obligations, or exercises the rights, of a credit provider; or

is a person to whom the licensee, or a representative of the licensee, provides a credit service; or

is a party to a consumer lease, or will be a party to a proposed consumer lease, in relation to which the licensee, or a representative of the licensee, performs the obligations, or exercises the rights, of a lessor; or

is a mortgagor under a mortgage, or will be the mortgagor under a proposed mortgage, in relation to which the licensee, or a representative of the licensee, performs the obligations, or exercises the rights of a mortgagee; or

is the guarantor under a guarantee, or will be the guarantor under a proposed guarantee, in relation to which the licensee, or a representative of the licensee, performs the obligations, or exercises the rights, of a beneficiary under the guarantee; or

is a person in relation to whom the licensee, or a representative of the licensee, engages in a prescribed activity mentioned in item 6 of the table in subsection 6(1).

the licensee must lodge a report in relation to the reportable situation with ASIC; and

the report must be lodged in accordance with this section.

the person is subject to a requirement under subsection (1); and

the person engages in conduct; and

the conduct contravenes the requirement.

the licensee is a body regulated by APRA; and

the licensee has given a report to APRA that contains all of the information that is required in a report under this section in relation to the reportable situation.

the licensee is a body regulated by APRA; and

the auditor or actuary of the licensee gives APRA a written report about a matter to which the reportable situation relates; and

the report is given before, or within 10 business days after, the licensee first knows that, or is reckless with respect to whether, there are reasonable grounds to believe that the reportable situation has arisen.

a reportable situation has arisen in relation to another licensee of the kind mentioned in:

paragraph 50A(1)(a) or (b) (significant breach or likely breach of a core obligation); or

subsection 50A(2) (gross negligence or serious fraud); and

one of the following is an individual who has engaged in conduct that forms part of the reportable situation:

the other licensee;

an employee of the other licensee or of a related body corporate of the other licensee, acting within the scope of the employee’s employment;

a director of the other licensee or of a related body corporate of the other licensee, acting within the scope of the director’s duties as director;

another representative of the other licensee acting within the scope of the representative’s authority given by the licensee; and

the individual is a mortgage broker.

the existence of the reportable situation; and

all of the information that is required in a report under this section in relation to the reportable situation.

reports lodged with ASIC during the financial year under section 50B in relation to reportable situations of the kind mentioned in paragraphs 50A(1)(a) and (b) (breaches and likely breaches of core obligations); and

reports lodged with APRA during the financial year, as described in subsections 50B(6) and (7), in relation to reportable situations of the kind mentioned in paragraphs 50A(1)(a) and (b) (breaches and likely breaches of core obligations); and

the entities in relation to which those reports are lodged with ASIC or APRA.

be published within 4 months after the end of the financial year; and

be published on ASIC’s website; and

(c) include the information (if any) prescribed by the regulations, which may include personal information (within the meaning of the Privacy Act 1988) in relation to a licensee who is an individual; and

if the regulations prescribe how the information is to be organised—be organised in accordance with the regulations.

the licensee, or a representative of the licensee, provides or has provided credit assistance to the affected consumer in relation to a credit contract secured by a mortgage over residential property; and

the licensee, or the representative of the licensee, is a mortgage broker; and

there are reasonable grounds to believe that a reportable situation has arisen in relation to the licensee as mentioned in:

paragraph 50A(1)(a) (significant breach of a core obligation); or

subsection 50A(2) (gross negligence or serious fraud); and

there are reasonable grounds to suspect that:

(i) the affected consumer has suffered or will suffer loss or damage as a result of the reportable situation; and

the affected consumer has a legally enforceable right to recover the loss or damage from the licensee.

be given in writing within 30 days after the licensee first knows of, or is reckless with respect to, the circumstances mentioned in paragraphs (1)(a), (b), (c) and (d); and

if ASIC has approved the form in which the notice must be given:

be in the approved form; and

include the information, statements, explanations or other matters required by the form; and

be accompanied by any other material required by the form.

(a) the licensee, or a representative of the licensee, has provided credit assistance to a consumer (the affected consumer) in relation to a credit contract secured by a mortgage over residential property; and

the licensee, or the representative of the licensee, is a mortgage broker; and

there are reasonable grounds to believe that a reportable situation has arisen in relation to the licensee as mentioned in:

paragraph 50A(1)(a) (significant breach of a core obligation); or

subsection 50A(2) (gross negligence or serious fraud); and

there are reasonable grounds to suspect that:

(i) the affected consumer has suffered or will suffer loss or damage as a result of the reportable situation; and

the affected consumer has a legally enforceable right to recover the loss or damage from the licensee.

identify the conduct that gave rise to the reportable situation; and

quantify the loss or damage that there are reasonable grounds to believe:

the affected consumer has suffered or will suffer as a result of the reportable situation; and

the affected consumer has a legally enforceable right to recover from the licensee; and

do anything else prescribed by the regulations for the purposes of this paragraph.

in writing within 10 days after the investigation is completed; and

if ASIC has approved the form in which the notice must be given:

in the approved form; and

that includes the information, statements, explanations or other matters required by the form; and

that is accompanied by any other material required by the form.

the affected consumer has suffered or will suffer loss or damage as a result of the reportable situation; and

the affected consumer has a legally enforceable right to recover the loss or damage from the licensee;

the person is subject to a requirement in relation to records under subsection (1); and

the person engages in conduct; and

the conduct contravenes subsection (1).

this section does not affect the operation of that law; and

that law does not affect the operation of this section.

this section does not affect the operation of that law; and

that law does not affect the operation of this section.

specified information or documents covered by section 55C;

information or documents covered by section 55C of a specified kind.

the Chair makes a determination under subsection (4); and

the Chair gives a copy of the determination to ASIC.

in the case of information—the information was given or produced (whether or not voluntarily) to APRA in writing by another person (including a person advising APRA); and

in the case of documents—the documents were given or produced (whether or not voluntarily) to APRA by another person (including a person advising APRA); and

ASIC considers the information or documents to be relevant to the exercise or performance of its functions or powers.

are required or permitted to be created by law as a record (however described); and

are created in accordance with that law.

information or documents concerning the internal administrative functioning of APRA;

information or documents that discloses matter in respect of which APRA or any other person has claimed legal professional privilege;

information or documents of a kind specified in the regulations.

section 55B (ASIC requests);

section 55D (Notifying ASIC of reasonable belief of material breach of ASIC provisions).

the disclosure of protected information or the production of a protected document is by ASIC, for the purposes of the performance of ASIC’s functions, or the exercise of ASIC’s powers; and

the protected information was disclosed previously to ASIC, or the protected document was produced previously to ASIC, for the purpose of APRA complying with any of the following:

section 55B (ASIC requests);

section 55D (Notifying ASIC of reasonable belief of material breach of ASIC provisions).

specified information or documents covered by section 122D;

information or documents covered by section 122D of a specified kind.

the Chairperson makes a determination under subsection (4); and

the Chairperson gives a copy of the determination to APRA.

in the case of information—the information was given or produced (whether or not voluntarily) to ASIC in writing by another person (including a person advising ASIC); and

in the case of documents—the documents were given or produced (whether or not voluntarily) to ASIC by another person (including a person advising ASIC); and

APRA considers the information or documents to be relevant to the exercise or performance of its functions or powers.

are required or permitted to be created by law as a record (however described); and

are created in accordance with that law.

information or documents concerning the internal administrative functioning of ASIC;

information or documents that discloses matter in respect of which ASIC or any other person has claimed legal professional privilege;

information or documents of a kind specified in the regulations.

a deliberative vote; and

if necessary, also a casting vote.

ASIC has determined:

that resolutions may be passed in accordance with this section; and

the method of indicating agreement with a resolution passed in accordance with this section; and

without meeting, a majority of the members indicate agreement with the resolution in accordance with the method determined by ASIC; and

that majority would have constituted a quorum at a meeting; and

all members were informed of the proposed resolution, or reasonable efforts were made to inform all members of the proposed resolution.