The Australian Securities and Investments Commission (ASIC) is looking at how a product disclosure statement (PDS) is provided to consumers seeking general insurance quotes over the phone.

The regulator is thinking about allowing quotes without a PDS or only making the exemption when a licensed person is talking to a consumer on the phone.

Alternatively, ASIC is suggesting the insurer issue the PDS as soon as practicable and before the consumer applies for the policy.

ASIC is seeking feedback on the issues these proposals would create and their impact on consumers.

In a separate move, ASIC has confirmed research houses must hold an Australian financial services (AFS) licence to conduct their business.

This follows an unnamed established research house that provides a life insurance policy rating service applying to ASIC for an exemption to hold an AFS licence.

The regulator refused the exemption on the basis that issuing a rating on a product is providing financial advice.

“The provision of general financial product advice and the ratings are intended to influence a person’s decision in relation to a life insurance product,” ASIC said in a statement on relief applications.

The regulator requires licensees to meet certain obligations such as dispute procedures and management of conflicts of interest issues, and says research houses needs to have these requirements in place.

ASIC has also refused an unnamed lenders’ mortgage insurance (LMI) provider application for an exemption to hold a credit licence.

The regulator says LMI insurers are to be licensed eventually.

But the regulator has allowed a number of life insurance companies an exemption from the responsible lending requirements of the National Credit Act for loans on policies.

The companies included AMP, AIA, Asteron, MLC and CommInsure and the exemption was for historic loans provided on life insurance polices.

These policies have a risk protection benefit and an investment component with the loan secured by the life insurance policy.

Now the insurers must maintain the same terms and conditions of the policy and also inform the holder of ASIC’s exemption from certain parts of the regulations.