The Financial Advisers (Definitions, Voluntary Authorisation, Prescribed Entities, and Exemptions) Amendment Regulations 2011 (the Regulations) came into force on 1 July 2011. The regulations amend the Financial Advisers (Definitions, Voluntary Authorisation, Prescribed Entities, and Exemptions) Regulations 2011.
Importantly, they reclassify certain products as 'category 2' products under section 5 of the Financial Advisers Act 2008 (the Act). These include fixed term deposit products offered by Public Trust, bank notice products (being deposit products issued by a registered bank under which funds are on call, but subject to a minimum advance notice period) and (provided the building society is also a registered bank) building society redeemable shares, which are similar to term deposits.
The existing definition of "pure risk contract of insurance" is also extended (for an initial period of five years) to allow pure risk insurance contracts which include premium refunds to fall within 'category 2' products.
The Regulations also provide a new exemption from the application of the Act. The exemption is in relation to registered retirement village operators providing services in the ordinary course of their business (the services must relate to the acquiring or disposing of an occupation right agreement for the retirement village). This activity is regulated by the Retirement Villages Act 2003.