Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Taxation Laws Amendment Bill (No. 4) 2002

1998-99

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

 

 

 

 

 

Choice of Superannuation Funds (Consumer Protection) Bill 1999

 

No.      , 1999

 

(Treasury)

 

 

 

A Bill for an Act relating to the conduct of, and the disclosure of information by, life companies, life brokers and life insurance advisers, and for related purposes

   

   

   



Contents

Part 1—Preliminary                                                                                                                1

1............ Short title............................................................................................ 1

2............ Commencement.................................................................................. 2

3............ Object of the Act................................................................................ 2

4............ Definitions.......................................................................................... 3

5............ Agents................................................................................................. 5

6............ Issuing promotional material.............................................................. 5

7............ Engaging in a life insurance activity.................................................... 5

8............ General information does not constitute an implied recommendation 6

9............ Additional operation of the Act......................................................... 6

10.......... Exclusion of certain State insurance.................................................... 6

11.......... Exclusion of life companies that are friendly societies....................... 6

12.......... Extension to Norfolk Island................................................................ 6

13.......... General administration........................................................................ 6

14.......... Application of the Criminal Code ...................................................... 6

15.......... Act not to affect operation of other Acts........................................... 7

16.......... Schedule(s).......................................................................................... 7

Part 2—Duties of life companies                                                                                     8

17.......... Effect of Part...................................................................................... 8

18.......... Duty of life companies to provide information.................................. 8

19.......... Disclosure rules.................................................................................. 9

20.......... ASIC may give directions................................................................... 9

21.......... Revocation or variation of directions................................................ 10

22.......... ASIC may issue stop orders............................................................. 11

23.......... False or misleading information: civil liability.................................. 11

24.......... Order to disclose information or publish advertisement etc............. 13

25.......... False or misleading information: criminal liability............................ 14

Part 3—Conduct of life companies and their life insurance advisers       15

26.......... Effect of Part.................................................................................... 15

27.......... Definitions........................................................................................ 15

28.......... Disclosure statements....................................................................... 16

29.......... Life insurance advice must contain certain information.................... 16

30.......... Life insurance advice must have a reasonable basis.......................... 18

31.......... Life company must not issue or vary life policies in certain cases.. 18

32.......... Life company’s civil liability if section 29 or 30 is contravened...... 19

33.......... False or misleading statements etc.: civil liability............................. 20

Part 4—Conduct of life brokers and their life insurance advisers             21

34.......... Effect of Part.................................................................................... 21

35.......... Application of Part........................................................................... 21

36.......... Definitions........................................................................................ 21

37.......... Disclosure statements....................................................................... 22

38.......... Life insurance advice must contain certain information.................... 22

39.......... Life insurance advice must have a reasonable basis.......................... 24

40.......... Life broker must not arrange for issue or variation of a life policy in certain cases 24

41.......... Life broker’s civil liability if section 38 or 39 is contravened.......... 25

42.......... False or misleading statements etc.: civil liability............................. 26

Part 5—Code of Practice for the Life Insurance Industry                              29

43.......... Effect of Part.................................................................................... 29

44.......... Establishment of the Code................................................................ 29

45.......... ASIC may give directions................................................................. 30

46.......... Revocation or variation of directions................................................ 31

Part 6—Compliance provisions                                                                                      33

Division 1—Compliance committees                                                                  33

47.......... Obligation of life company to have compliance committee.............. 33

48.......... Membership of compliance committee............................................ 33

49.......... Functions and powers of compliance committee............................. 33

Division 2—Monitoring life companies and life brokers                          35

50.......... Purpose of Division.......................................................................... 35

51.......... Definition.......................................................................................... 35

52.......... Appointment of authorised persons................................................ 35

53.......... Requirement to give information to ASIC........................................ 35

54.......... Requirement to produce records....................................................... 36

55.......... Self-incrimination.............................................................................. 37

56.......... Access to premises........................................................................... 37

Part 7—Miscellaneous                                                                                                        38

57.......... Statistics........................................................................................... 38

58.......... Jurisdiction of courts under this Act................................................ 38

59.......... Transactions not invalidated............................................................. 39

60.......... Operation of State and Territory laws............................................. 39

61.......... Injunctions........................................................................................ 40

62.......... Review of certain decisions.............................................................. 41

63.......... Constitution and procedure of Tribunal........................................... 42

64.......... Institution of proceedings for offences............................................. 43

65.......... ASIC may begin and carry on certain civil actions........................... 43

66.......... Regulations....................................................................................... 44

Schedule 1—Amendment of other Acts                                                                     45

Australian Securities and Investments Commission Act 1989                           45

Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999   45

 



A Bill for an Act relating to the conduct of, and the disclosure of information by, life companies, life brokers and life insurance advisers, and for related purposes

The Parliament of Australia enacts: