ASIC drops FSG burden for AR claims handlers

29 November 2022

The corporate regulator says providers of claims handling and settling services will no longer have to provide clients with a Financial Services Guide (FSG) to reduce the “burden of duplicative disclosure”.

The relief is limited to representatives authorised by licensees to deal in general and/or bundled consumer credit insurance products that provide claims handling and settling services.

The Australian Securities and Investments Commission (ASIC) requires that the licensee ensure its authorised representative gives clients written detail about who it acts for and any remuneration, including commission, and makes clear a dispute resolution system is available.

The change was granted following an application from an insurer and subsequent consultation with industry, consumer and government stakeholders.

ASIC says consumers will continue to receive the same level of protection that they would if they dealt directly with the product issuer.

ASIC formerly stipulated that all financial product advisers to retail clients must provide an FSG to help clients “decide whether to obtain financial advice (or any other financial service) from you” and ensure they “receive good quality advice and are able to make informed decisions”.