The Australian Securities and Investments Commission (ASIC) has commenced a series of consultations focused on renewing key legislative instruments that shape the distribution frameworks and compliance requirements for financial services and insurance providers.
These reviews are in line with mandatory legislative sunsetting provisions and aim to assess whether existing reliefs continue to be appropriate.
ASIC has proposed to remake the ASIC Corporations (Basic Deposit and General Insurance Product Distribution) Instrument 2015/682, which is due to expire on Oct. 1.
This instrument provides exemptions for AFS licensees from appointing distributors of basic deposit and general insurance products as authorised representatives.
Originally implemented to reduce regulatory complexity and operational costs, the measure supports wider consumer access to these products by enabling simpler distribution channels. ASIC has indicated that the relief remains effective and proposes extending it for five years.
The regulator said the relief continues to serve its purpose without affecting statutory consumer protections.
“This ensures that consumers who access basic deposit or general insurance products offered under the relief have the same protections they would have received had they dealt directly with the provider,” it said.
Feedback on the proposal can be submitted to [email protected] by 5pm AEST on June 25. The instrument consolidates two prior class orders – [CO 04/909] on agency banking and [CO 05/1070] on general insurance distribution – previously merged into a single relief framework.
The corporate regulator is also consulting on the potential extension of the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716, which is scheduled to lapse on Aug. 16. This instrument provides an exemption from retail client disclosure obligations when retail coverage is an incidental and unavoidable component of a broader wholesale insurance policy.
ASIC maintains that the exemption was designed to avoid placing unnecessary compliance burdens on business insurers when retail elements – such as employee property cover – are included as part of commercial policies. It is proposing to remake the instrument for a further five-year term.
The commission noted that the relief does not apply when retail coverage is optional or offered on a stand-alone basis. Industry stakeholders have until June 16 to provide feedback via the consultation email.
ASIC is additionally consulting on whether to extend three legislative instruments tied to the provision of financial advice:
Each of these instruments is scheduled to sunset in October 2025 and provides exemptions or modifications to advice-related obligations under the Corporations Act. The commission is proposing to renew them for five more years following a recent internal review.
The 2015/539 instrument permits general advice in advertising without a licence, provided appropriate disclaimers are present.
The 2015/540 instrument allows verbal general advice warnings in lieu of written notices.
The 2015/541 instrument clarifies when a Financial Services Guide is not required, particularly in expert reports or intermediary-authorised product arrangements.
ASIC is seeking input from industry participants by 5pm AEST on June 12.
