ASIC Deferred Sales Model Exemption (CGUA—Business-Related Livestock Insurance) Instrument 2026/144

Overview

The ASIC Deferred Sales Model Exemption (CGUA—Business-Related Livestock Insurance) Instrument 2026/144 was introduced to provide a specific exemption from certain provisions of the Australian Securities and Investments Commission Act 2001 concerning the sale of business-related livestock add-on insurance products by CGU Australia Pty Ltd. This instrument was enacted under the authority of the Australian Securities and Investments Commission Act 2001, and it aims to facilitate the sale of these insurance products without the need to comply with the deferred sales model regulations. The exemption applies to add-on insurance products that are offered in connection with the acquisition of another product or service in the course of a business, provided the price does not exceed $1,000 and the main purpose of the insurance is to cover the death of livestock animals or the loss of use of bulls, rams, or stallions due to impotency, infertility, or incapacity for natural service. This legislative measure is designed to streamline the process for certain livestock insurance sales while ensuring consumer protection and compliance with overarching financial regulations.

Scope and Application

The ASIC Deferred Sales Model Exemption (CGUA—Business-Related Livestock Insurance) Instrument 2026/144 applies specifically to business-related livestock add-on insurance products sold by CGU Australia Pty Ltd, with an Australian Business Number (ABN) of 62 004 478 960. This exemption exempts these products from certain provisions of the Australian Securities and Investments Commission Act 2001, namely sections 12DQ, 12DR, and 12DS, provided the products meet specific criteria including being offered in connection with another product or service in the course of the consumer carrying on a business, not exceeding a price of $1,000, and having the main purpose of providing insurance cover for the death of livestock animals or loss of use due to impotence, infertility, or incapacity of a bull, ram, or stallion. The exemption is in force from the day after the instrument is registered on the Federal Register of Legislation and is repealed either on 5 October 2028 or the day that paragraph 12B(1)(i) of the Australian Securities and Investments Commission Regulations 2001 ceases to apply to business-related add-on insurance products, whichever is earlier.

Key Provisions

The ASIC Deferred Sales Model Exemption (CGUA—Business-Related Livestock Insurance) Instrument 2026/144 provides an exemption from certain sections of the Australian Securities and Investments Commission Act 2001 (the "Act") for business-related livestock add-on insurance products sold by CGU Australia Pty Ltd. Specifically, sections 12DQ, 12DR, and 12DS of the Act are not applicable to such products, provided they meet the specified criteria (Section 5). These criteria include the product being offered or sold in connection with another product or service acquisition in the course of a business, the price not exceeding $1,000, and the main purpose of the product being insurance cover for the death of a livestock animal or the loss of use of a bull, ram, or stallion due to impotence, infertility, or incapacity for natural service (Section 6). The instrument imposes obligations on CGU Australia Pty Ltd, requiring them to ensure that any business-related livestock add-on insurance products they sell meet the specified criteria to qualify for the exemption. This includes ensuring that the product is offered or sold in the context of business activities, the price does not exceed $1,000, and the product's main purpose aligns with the outlined insurance coverages. Additionally, the instrument mandates that these products be clearly identified as add-on insurance products and that any promotional or sales materials accurately reflect the terms and conditions of the insurance cover. Failure to comply with the requirements of this instrument may result in civil or criminal penalties under the Act. The specific consequences depend on the nature and severity of the breach, but they can include fines, restitution, or other remedial actions. The maximum penalties for breaches of the Act are not explicitly stated in this instrument but can be found in the relevant sections of the Act and any applicable regulations.