The Australian Securities and Investments Commission (ASIC) has ignored broker concerns by releasing further amendments to a class order regulating group purchasing bodies for insurance and risk products.

The new amendments fail to address the National Insurance Brokers Association’s concerns that the relief provided under Class Order 08/1 is too complex and expensive to comply with.

Group purchasing bodies – usually organisations like associations, industry bodies, sporting clubs and community groups – arrange risk insurance products for members but unlike brokers don’t provide specific advice.

Class Order 08/1 was intended to provide relief to some bodies from having to comply with the licensing requirements. But to be exempted they must determine their own eligibility and meet new disclosure and liability requirements.

The new class order – 10/177 – grants an extension of time for some group purchasing bodies to comply with the new conditions. But critics say the extension itself isn’t easy to understand and still requires group purchasing bodies to navigate complicated provisions to determine whether they are eligible.

“Most groups which fit within the class order eligibility criteria will have until at least December 31 to meet the conditions,” regulatory specialist Mark Radford told insuranceNEWS.com.au.

“Those that don’t fit within the eligibility criteria will need to seriously consider their positions and seek appropriate advice.”