AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION ACT 2001 - SECT 12DP Meaning of add - on insurance deferral period and add - on insurance pre - deferral period

AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION ACT 2001 - SECT 12DP

  (1)   If a person (the customer ) who acquires, or enters into a commitment to acquire, a product or service (the principal product or service ) is given the information determined under paragraph   (4)(a), in the form and manner determined under paragraph   (4)(b), in connection with the acquisition or proposed acquisition, then:

  (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

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

  (i)   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

  (ii)   the time the customer is given the information;

    and ending at the end of 4 days after the day on which the period begins.

  (2)   If the information determined under paragraph   (4)(a) is not given in the form and manner determined under paragraph   (4)(b) in connection with the acquisition or proposed acquisition, 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.

Note:   There is no obligation for a person who provides a product or service to give the information to a customer. However, if the information is not given and there is no add - on insurance deferral period, certain conduct relating to the sale or offer of add - on insurance products may be prohibited (see sections   12DQ to 12DR).

  (3)   The add - on insurance pre - deferral period in relation to the principal product or service is a period that:

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

  (b)   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

  (c)   if there is no such add - on insurance deferral period--does not end.

  (4)   ASIC may, by legislative instrument, determine the following:

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

  (b)   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).

  (5)   Information determined under paragraph   (4)(a):

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

  (i)   offers of add - on insurance products; or

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

    in relation to the principal product or service; and

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