This note is not part of the
regulations, but is intended to indicate their general effect.
These regulations, which come into force
on 1 July 2011, amend the Financial Advisers (Definitions, Voluntary Authorisation, Prescribed
Entities, and Exemptions) Regulations 2011.
These regulations do the following things:
extend the existing definition of pure risk contracts of insurance.
These insurance contracts are classified as category 2 products under section 5 of the Financial
Advisers Act 2008 by virtue of being excluded from being investment-linked
contracts of insurance. The extended definition allows pure risk contracts
of insurance to provide for premium refunds. The extended definition
is limited initially to 5 years, providing an opportunity to review
reclassify the following products as category 2 products under section 5 of the Financial
Advisers Act 2008:
fixed term deposit products offered by Public Trust:
bank notice products (which are deposit products issued by a registered
bank under which funds are on call, but subject to a minimum advance
notice period). These products may also be issued through a PIE structure.
This reclassification is limited initially to 5 years, providing an
opportunity to review its operation:
building society redeemable shares (which are akin to term deposits)
if the building society is also a registered bank:
provide a new exemption from the Financial Advisers Act 2008 for operators of
registered retirement villages that provide advice or other services
in the ordinary course of their business relating to the acquiring
or disposing of occupation right agreements for their retirement village.
This conduct is regulated under the Retirement Villages Act 2003. The exemption extends
(under section 14(1)(q) of the Financial
Advisers Act 2008) to employees and other persons acting in the course
of, and for the purposes of, the operator's business.
Date of notification in Gazette: 23 June 2011.
These regulations are administered by the Ministry of Economic Development.