ASIC provides FSG relief to authorised representatives

The Australian Securities and Investments Commission (ASIC) has provided certain authorised representatives with Financial Services Guide (FSG) relief.

The relief, set out in the legislative instrument ASIC Corporations (Financial Services Guides) Instrument 2022/910, enables authorised representatives to deal in general insurance products and/or bundled consumer credit insurance products and provide claims handling and settling services.

ASIC explained that it granted FSG relief to reduce the regulatory burden associated with duplicative disclosure requirements while ensuring consumers continue to receive the same level of protection when dealing directly with the product issuer.

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The relief includes conditions to ensure it is limited to only general insurance products or bundled consumer credit insurance products. It also has conditions that require licensees to ensure that its authorised representatives:

Draw clients’ attention to the availability of a dispute resolution system for client complaints; and
Give clients information in writing about who the authorised representatives act for when providing financial services and any remuneration they may receive.

The FSG relief takes effect on Tuesday, Nov. 29, and will expire in five years. ASIC will review the instrument’s operation until it expires.

The FSG relief follows the relief to exempt insurers from providing certain notifications where doing so might result in family violence.