ASIC has provided relief from the requirement to provide a Financial Services Guide (FSG) to representatives that are authorised by licensees to deal in general insurance products and/or bundled consumer credit insurance products; and, provide claims handling and settling services.
In a statement on Monday, the corporate regulator said it has granted the relief to reduce the regulatory burden associated with duplicative disclosure requirements, while ensuring consumers will continue to receive the same level of protection that they would if they dealt directly with the product issuer.
The relief is set out in the legislative instrument ASIC Corporations (Financial Services Guides) Instrument 2022/910.
ASIC explained that the relief includes conditions to ensure it is limited to only general insurance products or bundled consumer credit insurance products.
It also includes conditions requiring the licensee to take reasonable steps to ensure that its authorised representative:
- draws the client’s attention to the availability of a dispute resolution system for client complaints; and
- gives the client information in writing about who the authorised representative acts for when providing the financial service and any remuneration (including commission) that the authorised representative may receive.
The relief commences on 29 November 2022 and will expire in five years. ASIC will review the operation of the instrument before it expires.
The relief was granted following an application from an insurer, after which ASIC said it consulted with various industry, consumer and government stakeholders before deciding to grant the relief.
