The industry shouldn’t hold its breath waiting for the Federal Treasury to decide how direct offshore foreign insurers (DOFIs) and discretionary mutual funds (DMFs) should be regulated.

The National Insurance Brokers Association (NIBA) – which has released a guide to members on placing business with DOFIs – has been in regular contact with Treasury about the use of DOFIs and DMFs in the Australian market.

President Steve Ball told brokers at the Victorian NIBA Sundowners roadshow last week that the industry shouldn’t expect to hear anything on the DOFI issue until the last quarter of this year. “We have had indications Treasury may have something to report after that,” he said.

Former Treasury executive Gary Potts was commissioned to analyse the use of DOFIs and DMFs in the Australian market after HIH Royal Commissioner Justice Neville Owen raised concerns about unauthorised insurers.

Treasury released Mr Potts’ recommendations in May 2004, then issued a discussion paper seeking input from interested parties last December.

Mr Ball says Treasury continues to seek NIBA’s input on how the recommendations in the Potts report should be implemented.