The “refinement” of the Financial Services Reform Act continues, with the Australian Securities and Investments Commission (ASIC) announcing late last week its decision to give Australian financial services licensees the ability to drop the authorisation requirements for distributors of general insurance products.

That means licensees will now have the option to appoint people to distribute general insurance products on their behalf without having to appoint them as authorised representatives.

But ASIC has made it clear this will only apply where no advice is provided.

The change mainly affects non-traditional participants in insurance like travel agents, car dealers and real estate agents.

National Insurance Brokers Association CEO Noel Pettersen said today the change is welcome. “We will be discussing a number of technical and practical issues that need to be addressed in relation to the proposed relief with ASIC.”

Under the change, there will be no requirement to lodge notifications about appointment, changes in details and revocation of appointment of distributors. Distributors will not have to provide their own personalised financial services guide and a cross- endorsement will not be necessary.