Commonwealth Consolidated Acts

AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION ACT 2001 - SECT 12DR

Offer by provider of principal product or service

  (1)   A person (the principal provider ) contravenes this subsection if:

  (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

  (b)   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

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

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

Note:   Failure to comply with this subsection is an offence (see section   12GB).

Exceptions for subsection   (1)--offer made outside add - on insurance deferral period

  (2)   Subsection   (1) does not apply if the offer, request or invitation is made:

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

  (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--after the end of the period of 6 weeks beginning on the first day of the add - on insurance deferral period.

Note:   A defendant bears an evidential burden in relation to the matter in subsection   (2): see subsection   13.3(3) of the Criminal Code .

Offer by third party provider

  (3)   A person (the third party provider ) contravenes this subsection if:

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

  (b)   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

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

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

  (e)   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

  (f)   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.

Note:   Failure to comply with this subsection is an offence (see section   12GB).

Exception for subsections   (1) and (3)--contact initiated by customer

  (4)   Subsections   (1) and (3) do not apply if:

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

  (b)   either:

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

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

Note:   A defendant bears an evidential burden in relation to the matter in subsection   (4): see subsection   13.3(3) of the Criminal Code .