Finalised anti-hawking regulatory guidance has removed a travel insurance example in favour of a home purchase scenario and has provided more information on how to determine if a consumer would “reasonably expect” to be offered a particular product.

“The new example relates to home building insurance being offered where a consumer is applying for a home loan, which was the product combination we received the most requests for clarity on,” the Australian Securities and Investments Commission (ASIC) says.

“We removed the travel insurance example in response to feedback received and in favour of an example where it is more clear-cut how the law would apply.”

The guide confirms that where add-on insurance is exempt from the deferred sales model regime, the hawking arrangements will apply, and offerors must then consider whether the product is “reasonably” within the scope of the consumer’s consent.

The home example shows that a person would reasonably expect to be offered home building insurance quotes in circumstances where cover is required under the terms of the mortgage contract.

Consumer groups had previously criticised a proposed regulatory guide example that had highlighted the sale of travel insurance through an agent as an exemption.

The hawking rules, applying to retail clients but not where there’s personal advice, come into effect on October 5.