Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) For paragraph 949B(1)(e) of the Act, a person must give a wholesale client the information set out in subregulation (3) for a financial service provided by that person to the wholesale client if:
(a) the service relates to an insurance contract that, because of subparagraph 8(2)(b)(ii) or (iii) of the Insurance Regulations 2024 , may be issued by an unauthorised foreign insurer (the insurer ); and
(b) either:
(i) the person would be required to give a Statement of Advice if the service were provided to a retail client; or
(ii) the contract is offered or issued to the wholesale client.
Note: Subparagraphs 8(2)(b)(ii) and (iii) of the Insurance Regulations 2024 apply in relation to insurance contracts for:
(a) atypical risks; and
(b) risks that cannot reasonably be placed in Australia.
(3) The information is:
(a) a statement that the insurer is not authorised under the Insurance Act 1973 to conduct insurance business in Australia; and
(b) a statement that the insurer is not subject to the provisions of the Insurance Act 1973 , which establishes a system of financial supervision of general insurers in Australia; and
(c) a statement that the wholesale client should consider whether to obtain further information, including:
(i) the country in which the insurer is incorporated, and whether the country has a system of financial supervision of insurers; and
(ii) the paid up capital of the insurer; and
(iii) which country's laws will determine disputes in relation to the financial product; and
(d) a statement that the insurer cannot be a declared general insurer for the purpose of Part VC of the Insurance Act 1973 , and, if the insurer becomes insolvent, the wholesale client will not be covered by the financial claims scheme provided under Part VC of that Act.