On 5 October 2021, a number of insurance regulatory changes affecting insurers, reinsurers, coverholders, underwriting agencies and brokers commenced under the Corporations Act 2001 (Cth) (Corporations Act). In this article we will briefly cover the regulatory reforms that have now taken place and look at what might be next. 1. Product design and distribution obligations … Continue Reading
The month of August 2021 saw a release of anticipated updates to the upcoming changes in the funds management, superannuation and insurance sectors. Notably, Treasury has released the draft updated Corporate Collective Investment Vehicle fund legislation and tax framework, the release of the first Your Future Your Super performance test results and APRA and ASIC … Continue Reading
A significant Covid-19 related business interruption claim has been decided in favour of insurers. In Star Entertainment Group Limited v Chubb Insurance Australia Ltd [2021] FCA 907, the Federal Court dismissed Star Entertainment Group’s claim for business interruption losses under an industrial special risks (ISR) policy. It appears Star has appealed the decision. Not surprisingly, … Continue Reading
Following its adoption by insurers in April this year, unfair contract terms laws are set for another revamp. The Treasury has just released draft legislation which will make unfair contract terms unlawful. These laws have been foreshadowed for some time (see our previous update). Currently no pecuniary penalties apply once a contract term is declared … Continue Reading
In what has proven to be the best and worst of times for insurers, two recent Federal Court of Australia decisions shed further light on when an insurer may be able (or in the case of the second case, unable) to exercise its statutory rights in the event of non-disclosure. In All Class Insurance Brokers … Continue Reading
The Treasury has released for consultation the draft bill for the Financial Accountability Regime (FAR or the Regime). The Regime will apply to the banking, superannuation and insurance sectors. Importantly, the Regime strengthens the Banking Executive Accountability Regime (BEAR), and extends the regime, in line with the recommendations from the Financial Services Royal Commission, to … Continue Reading
On 21 July 2021, ASIC released Consultation Paper 346 and a draft updated Regulatory Guide 38 (RG 38) to reflect new legislative changes that strengthen the current hawking prohibitions. As many in the industry will know, new hawking prohibitions come into effect on 5 October 2021. The new hawking prohibitions will not only affect insurers, … Continue Reading
We previously wrote on the upcoming implementation of the 2021 insurance regulatory reforms, including the deferred sales model for add-on insurance products. On 8 July 2021, the Treasurer announced which insurance products will be exempt from the deferred sales model. What is the Deferred Sales Model? The Government passed the Financial Sector Reform (Hayne Royal … Continue Reading
The High Court of Australia has denied special leave to appeal the decision of the New South Wales Supreme Court of Appeal in HDI Global Speciality SE v Wonkana No 3 Pty Ltd [2020] NSWCA 296, bringing to an end at least one element of confusion which has gripped policyholders and insurers since last year. … Continue Reading
In May 2021, the Federal Budget for the 2021-2022 financial year was handed down which included a number of proposed legislative reforms which will affect the Australian funds management and superannuation industries. Most notably, the Budget Papers included a commitment to the implementation of the Corporate Collective Investment Vehicle regime and also flagged changes to … Continue Reading
During April 2021, ASIC has used its product intervention powers to ban the sale of binary options to retail clients, as well as to extend temporary relief instruments amidst COVID-19. ASIC has also urged claims handling firms to lodge licences by next month. The superannuation sector has seen the release of exposure draft regulations to … Continue Reading
March 2021 has seen the release of legislative reforms to advice fee consent and lack of independence disclosure by financial advisers. ASIC has clarified its position on virtual AGMs and released an interim report on competition in the managed funds industry. APRA has urged life insurers and superannuation funds to ensure their insurance offerings and … Continue Reading
The month of February 2021 has seen continued momentum for a raft of changes affecting financial services providers from various industries. APRA has released its new policies and priorities for 2021, which have a particular focus on the impacts of COVID-19 and seek to strengthen the financial services sector in dealing with future crises. The ‘Your … Continue Reading
The months of December 2020 and January 2021 have been a busy time in the funds management, superannuation and insurance sector. In particular, ASIC has released its final Regulatory Guide 274 Product design and distribution obligations, which will bring industry-wide changes to how financial products are formed, promoted and marketed. The impact of COVID-19 has … Continue Reading
Following the release of the Royal Commission final report earlier this year, the Treasury has now released draft legislation that will make insurance claims handling a financial service under the Corporations Act 2001 (Cth). This will give the Australian Securities and Investments Commission (ASIC) greater supervisory responsibility over claims handling and require that these activities … Continue Reading
ASIC to increase surveillance to monitor compliance with PI insurance requirements AFS licensees should check their PI policy to determine whether cover is adequate Insurers should review their PI offerings to ensure cover is compliant with RG 126 Following an eight month review, ASIC has released its findings on the PI insurance market and areas … Continue Reading
