ASIC consults on relief for group insurance arrangements

ASIC has issued a consultation paper (pdf) seeking submissions from the public on its proposals to offer exemptions for some bodies that arrange group insurance.

ASIC is seeking feedback to help it consider exemption for some bodies which arrange group insurance policies, such as sporting and community associations, from the licensing provisions of Chapters 7 and 5C of the Corporations Act.

When group purchasing bodies are small industry bodies or not-for-profit associations, it may not be economical for them to obtain an AFS licence or to register a managed investment scheme.

ASIC is also consulting on proposals for technical relief for insurers from the product disclosure statement provisions when a person to be covered under a group insurance product would have acquired the product as a wholesale client if they were the insured.

The comments period closes on 25 June 2007.