The Australian Securities and Investments Commission (ASIC) today released a consultation paper proposing to remake its class order relating to product disclosure statement (PDS) requirements where a quote for a general insurance product is given.

Legislative instruments, such as class orders, are repealed automatically, or “sunset”, after 10 years unless action is taken to preserve them.

ASIC says in the paper it has formed the “preliminary view” that class order CO 11/842 – which is set to be repealed on April 1 – is operating effectively and efficiently and continues to form a useful part of the legislative framework.

The relief provided by the class order has been given to address practical difficulties in giving a PDS during a telephone call and to allow the continued provision of quotes to retail clients over the telephone.

CO 11/842 applies the requirement to give a PDS differently depending on whether the client wants to be given a PDS at or around the time the quote is given.

Under the relief, the client can choose to receive the PDS, and, if they do, the general insurer or intermediary must give a PDS as soon as practicable after the quote is given. This means that the PDS can be given after the telephone call.

“ASIC proposes to remake the class order,” the regulator said. “The fundamental policy principles that underpin the class order have not changed.

“The new instrument would continue the relief currently given by CO 11/842 PDS requirements where a quote for a general insurance product is given.

“This minimises disruption to the entities that use the instrument.”

Closing date for submissions is December 17.

Click here for the consultation paper.