Australian brokers, authorised representatives and other insurance businesses could avoid additional notification and disclosure requirements under an ASIC proposal to extend eight legislative instruments due to expire in 2027.
Three directly affect general insurance claims, covering claims-handling staff, Financial Services Guides (FSGs) and cash settlements involving customers experiencing family violence.
For brokers operating under Australian Financial Services (AFS) licensing arrangements, the key point is continuity. ASIC is proposing to extend the instruments without changing their substance after assessing them as effective, efficient and still necessary. Its consultation proposes changing only their self-repeal dates.
ASIC Corporations (Notification of Authorised Representatives) Instrument 2022/301 allows authorised representatives to sub-authorise employees providing claims handling and settling services for general insurance and consumer credit insurance without separately notifying ASIC of each employee.
For brokerages and authorised representative networks, expiry could mean additional notifications when claims staff are appointed or their authorisations change.
The relief followed the inclusion of claims handling and settling within the AFS licensing regime from January 1, 2022. ASIC's guidance on the claims-handling regime explains the licensing requirements.
As Insurance Business reported when the exemption was introduced, it was designed to reduce the administrative burden of notifying ASIC about large numbers of claims-handling employees. It does not remove the substantive obligations owed by authorised representatives and AFS licensees to consumers.
The instrument, currently due to expire on June 8, 2027, would be extended to October 1, 2032.
ASIC also proposes extending ASIC Corporations (Financial Services Guides) Instrument 2022/910, which exempts certain authorised representatives from giving clients an FSG when dealing in general insurance or bundled consumer credit insurance and providing claims handling and settling services.
For brokers using authorised representative structures, the extension would allow existing disclosure processes to continue rather than requiring an additional FSG step.
The relief addresses overlapping disclosure requirements rather than removing consumer protections. As previously reported, licensees must still ensure clients receive information on dispute resolution, whom the representative acts for and any remuneration they may receive.
Its November 30, 2027 expiry would move to April 1, 2033.
A third instrument, ASIC Corporations (Cash Settlement Fact Sheet and Confirming Transactions) Instrument 2022/809, provides conditional relief from issuing a Cash Settlement Fact Sheet or transaction confirmation where doing so could create an unacceptable risk of family violence.
ASIC proposes extending it from September 20, 2027 to October 1, 2032. The remaining instruments cover futures markets, retail over-the-counter derivatives, superannuation disclosure and dashboards, and employee share schemes.
For insurance intermediaries, the consultation is therefore less about new regulation than preserving compliance arrangements already embedded in claims and authorised representative operations.
ASIC is seeking feedback on whether extending or allowing any of the instruments to expire would create practical or regulatory issues. Submissions close at 5pm AEST on September 8, 2026.
