The Federal Government’s report into the use of discretionary mutual funds (DMFs) and unauthorised foreign insurers (UFIs) being undertaken by former senior Treasury executive Gary Potts appears to be still dragging its way through the corridors of power. More than four months after it was due to be released, the report is still languishing somewhere in Canberra.

The review was commissioned by the Treasury as part of a number of initiatives in response to HIH Royal Commission recommendations. Currently only Australian insurers are subject to the capital requirements and rules set out by the regulators and there is widespread public and industry concern about the ability of some UFIs to pay claims.

A Treasury spokesman told Sunrise Exchange News two months ago that it had the review, but would wait to release it with its report into financial system guarantees, which deals with the prospect of a policyholder protection scheme.

An Insurance Council of Australia (ICA) spokesman told Sunrise Exchange News ICA expects the review to be released “soon” – but when that might be is a bit of a mystery.

“It makes sense for them (Treasury) to release the two reports together, as both reviews relate very closely to each other,” she said. “ICA continues to stress the importance of dealing with the recommendations as an entire package, not just separate issues.”