Note: The licensee may give written consNote: The licensee may give written consent to the principal distributor to authorise individuals in respect of either a specified individual or a specified class of individuals (the membership of which may change from time to time).”;

Part 2—Declaration

5 Distribution of certain banking and insurance products

(1) Part 7.6 (other than Divisions 4 and 8) of the Act applies in relation to a financial services licensee (licensee) and a person (the distributor) authorised to provide financial services on behalf of the licensee as if provisions of that Part were modified or varied as follows:

(a) in section 910A, before the definition of qualified tax relevant provider, insert:

“product distributor means, in relation to a financial services licensee: (a) a person (the principal distributor), other than an employee of the licensee, who the licensee has authorised in writing to provide financial services on its behalf in relation to: (i) a basic deposit product; or (ii) a risk insurance product; and (b) an individual who has been authorised in writing to provide those financial services on behalf of the licensee where: (i) the authorisation has been provided by a principal distributor (with the written consent of the licensee); and (ii) the principal distributor is not an individual.

Note: The licensee may give written consent to the principal distributor to authorise individuals in respect of either a specified individual or a specified class of individuals (the membership of which may change from time to time).”;

(b) in section 9, in the definition of representative, insert after subparagraph (a)(iii):

  “(iiia) a product distributor of the licensee; or”;

(c) after paragraph 911B(1)(a), insert:

“(aa) these conditions are satisfied:
  (i) the principal holds an Australian financial services licence covering the provision of the service; and
  (ii) the service is dealing in a basic deposit product or risk insurance product; and
  (iii) the provider is:
  (A) a product distributor of the principal; or
  (B) if the service is dealing in a basic deposit product, an employee of a product distributor of the principal;”.

Where declaration applies

(2) The declaration applies where all of the following are satisfied:

(a) the distributor is not an authorised representative of the licensee;
(b) the financial service provided by the distributor on behalf of the licensee is dealing in any of the following:
  (i) a basic deposit product;
  (ii) a general insurance product;
  (iii) a bundled consumer credit insurance product;
(c) the licensee has taken reasonable steps to ensure that, when the distributor provides the financial service to another person (the client) as a retail client:
  (i) the distributor draws the client’s attention to the availability of a dispute resolution system of the licensee that covers complaints by the client in relation to the financial service and how that system may be accessed; and
  (ii) if the distributor is dealing in a general insurance product or a bundled consumer credit insurance product, the client is given information in writing about:
  (A) who the distributor acts for when providing the financial service; and