Ms Orr says there are concerns ASIC is hindered in taking action due to a claims handling exemption in the financial services definition, and there are moves to consider whether there should be changes.

Mr Dransfield says there could be unintended consequences from such a change, such as having discussions with customers on their claim falling within the definition of financial advice.

“It would be unfortunate if we were not able to have an open conversation with a customer on their particular circumstances in lodging that claim,” he says.

Mr Dransfield says he is also “quite open” to the suggestion if it improves consumer outcomes.