The Australian Securities and Investments Commission (ASIC) has extended a deadline on new rules for group purchasing bodies involved in risk management, as efforts intensify to resolve concerns.

The National Insurance Brokers Association (NIBA) will meet Treasury next week to discuss regulation that would allow the status quo to continue while allaying concerns that the products go against the intent of the Corporations Act.

“We will be going through the matter in quite some detail with Treasury, with a view of hopefully getting a permanent solution once and for all,” NIBA CEO Dallas Booth told insuranceNEWS.com.au.

ASIC released a guide in June 2010 on Class Order 08/1 and the relief it would give group purchasing bodies from the licensing and managed investments provisions of the Corporations Act.

The guide also outlines what groups – such as associations, sporting clubs and community groups – must do to receive the relief.

NIBA, which acts on behalf of members who deal with the bodies, says the class order is confusing, adds cost and is almost unworkable.

Mr Booth says there are no concerns in the marketplace about current arrangements.

“The issue is more how they fit within the regulatory landscape,” he said.

ASIC has extended by a year the deadline for group purchasing bodies to meet breach reporting obligations. It had been set for June 30 this year.