ASIC: group insurance buyers in the clear
ASIC has confirmed that group insurance purchasing bodies will not require an Australian financial services licence.
Issued on September 30, the regulator’s latest class order provides an exemption to entities that arrange, often in bulk, insurance for other people’s risks but do not issue any risk or financial products themselves.
ASIC says this typically includes small sports or voluntary associations that arrange insurance on behalf of members.
Few of these groups would have bothered to register as financial services providers, which left them in an unclear legal position. The exemption ensures they should now be able to concentrate on that district grand final, not keeping the law onside.
Issued on September 30, the regulator’s latest class order provides an exemption to entities that arrange, often in bulk, insurance for other people’s risks but do not issue any risk or financial products themselves.
ASIC says this typically includes small sports or voluntary associations that arrange insurance on behalf of members.
Few of these groups would have bothered to register as financial services providers, which left them in an unclear legal position. The exemption ensures they should now be able to concentrate on that district grand final, not keeping the law onside.