The Australian Securities and Investments Commission (ASIC) has granted Toyota Finance relief from providing product disclosure statements for business insurance for a network of car dealerships.

But the regulator has refused two entities that asked it to vary the requirement for them to provide key facts sheets for home and contents cover.

ASIC says these requests could defer the date for providing key facts sheets, and this would be “inconsistent with the intention of Parliament”.

Insurers have been required to provide key facts sheets since November 9.

ASIC can use its discretion or vary or set aside some legal requirements where it sees a benefit in cutting red tape, and it publishes its decisions on exemptions every six months.

The car dealers employing fewer than 20 people would normally be covered by the obligation to provide product disclosure statements to retail clients.

The product includes elements of motor and travel insurance, but Toyota does not have to provide product disclosure statements because of the disproportionate cost and because ASIC feels the dealers understand the risks and cover.

The risks are limited because an intermediary that has a financial services licence and a relationship with the dealers negotiated the cover, it says.