ASIC releases guidance on the Product Intervention Power

ASIC has confirmed its potential broad use of the Product Intervention Power in Regulatory Guide 272, released on 17 June 2020.   ASIC has moved on from the Federal Court’s recent endorsement of its first use of the Product Intervention Power, in Cigno Pty Limited v ASIC [2020] FCA 479, to issue a finalised Regulatory […]

Federal Court decision on Unfair Contract Terms provides pointers for insurers

ASIC has used its successful unfair contract terms action against the Bendigo and Adelaide Bank to give a warning to insurers.   On 28 May 2020, ASIC obtained judgement in an action against the Bendigo and Adelaide Bank Limited (the Bank) to have several terms within its small business contracts declared unfair1. In commenting on […]

Federal Court endorses broad application of Product Intervention Power

ASIC’s successful dismissal of the judicial review of its first use of the Product Intervention Power, in Cigno Pty Limited v ASIC [2020] FCA 479, opens the door to its wider application.   It must have caused some disappointment, with ASIC at least, when the target of ASIC’s first use of the new Product Intervention […]

General Insurance Regulatory Reforms – COVID-19 impact

As Australia heads into a COVID-19 lockdown, and the insurance industry and its regulators move to remote working, what does it all mean for the incoming raft of regulatory reforms?   Statements made by the government and regulators in the last week indicate that some of the incoming regulatory reforms may need to be delayed. […]

Treasury releases Financial Accountability Regime proposal

The word “Executive” may have been removed from the FAR acronym, but executives remain front and centre in Treasury’s proposal to extend the BEAR to insurers and superannuation entities.   Treasury’s Proposal Paper1, released on 22 January 2020, sets out its plans to extend the operation of the existing Banking Executive Accountability Regime (BEAR) to […]

ASIC’s guidance on Design and Distribution – Key points for insurance

ASIC’s Consultation Paper and draft Regulatory Guide on the Design and Distribution Obligations, which were released just in time for Christmas, contain some important pointers for the insurance industry.   ASIC’s guidance on the Design and Distribution Obligations (DDO)1 is broad ranging and principles based. The purpose of this article is not to summarise it […]

Financial Services regulation comes to insurance claims

Treasury has released draft legislation setting out how it intends to regulate insurance claims handling and settlement as a financial service.   Treasury’s draft Bill1 and Regulation2, which were released on 28 November 2019, follow on from the Royal Commission’s recommendation in February 2019 that the handling and settlement of insurance claims should no longer […]

ASIC confirms whistleblower policies must be in place by 1 January 2020

ASIC released its final Regulatory Guide 270 on Whistleblower Policies this week. In doing so, it noted the concerns raised by some that there was now insufficient time to implement a compliant policy by the 1 January 2020 deadline, but confirmed that the deadline must be met.   ASIC released its draft Regulatory Guide on […]

DISCLOSURE IS NOT ENOUGH

business, city, sydney, self-represented

ASIC’s report on financial services disclosure1, prepared in conjunction with the Dutch Authority for Financial Markets (AFM), concludes that disclosure is not enough. The real value of the report, though, lies in the insights it gives into what else should be done.   In their report, ASIC and AFM provide a detailed and well-researched assessment […]