ASIC is inviting feedback on its proposal to remake a legislative instrument that provides certain relief for Australian financial services (AFS) licensees.
The ASIC Corporations (Basic Deposit and General Insurance Product Distribution) Instrument 2015/682, which provides relief from the requirement for an AFS licensee to appoint a distributor of a basic deposit product or general insurance product as its authorised representative, is scheduled to end on 1 October 2025.
ASIC granted the relief to reduce the regulatory burden on deposit product and general insurance providers by removing technical requirements associated with the appointment of representatives. This promotes the wide availability of basic deposit products and general insurance products to consumers by reducing the compliance costs to providers.
ASIC has assessed that this instrument is generally operating effectively and efficiently and continues to form a necessary and useful part of the legislative framework.
ASIC proposes to remake the instrument for a period of five years and will continue to monitor its appropriateness considering ASIC's regulatory experience and feedback from relevant stakeholders.
Under the Legislation Act 2003 all legislative instruments are repealed automatically, or sunset, after 10 years, unless ASIC takes action to preserve them.
