A new class order issued by the Australian Securities and Investments Commission (ASIC) will help insurers and brokers provide quotes over the phone without having to provide a product disclosure statement (PDS).

The new class order 11/842 is a response to submissions from the industry over a Corporations Act requirement for a PDS to be issued before or at the same time as a telephone quote.

ASIC said last week industry submissions have shown that existing concessions don’t fully cover the circumstances where the client is seeking a quote for comparison with other available products and doesn’t make an immediate decision about whether or not to buy the product.

The relief given under the new class order “addresses the potential gap in the existing legislative concessions, and enables the continued provision of quotes to retail clients during solicited telephone calls”.

Under the new arrangement a client can choose whether or not to receive a PDS. If they do, the general insurer or broker must provide a PDS as soon as practicable after the quote is given.

ASIC says the relief does not affect the time at which a PDS must be provided if a quote is given during an unsolicited call or is otherwise not solicited by the client.