The Australian Securities and Investments Commission (ASIC) has taken the first step in implementing the Federal Government’s refinements to the financial services regulations.

The regulator has released a consultation paper on proposed relief from the authorisation requirements for insurance products distributors.

ASIC is working on eight refinement projects and this is the first step. Once it has considered feedback on the paper – due by September 2 – the regulator plans to issue its final policy by the end of October.

The relief would allow distributors to provide “certain services” in relation to general insurance products without the need to be licensed or appointed as an authorised representative of an Australian financial services licensee.

It would apply where the distributor arranges for the issue of specific general insurance products of an Australian insurer and where the insurer accepts responsibility for the conduct of the distributor.

ASIC Director of Policy Mark Adams says the proposal aims to promote wide access to general insurance products for consumers, while reducing legal uncertainty and administrative costs for insurance industry participants.

“ASIC is aware some insurers and insurance intermediaries might have concerns about the limited scope of our proposed relief,” he said. “For example, they might be concerned that it does not apply to distributors for whom an insurance broker accepts responsibility or that the relief does not apply to a wider range of dealing services.”

He says ASIC is open to suggestions on ways to address these concerns while still maintaining an appropriate level of consumer protection.