ASIC is inviting feedback on its proposal to remake a legislative instrument that exempts insurers and brokers from certain retail client obligations, specifically when incidental retail cover provided in business insurance contracts.
The ASIC Corporations (Incidental Retail Cover) Instrument 2022/716, which exempts insurers and brokers from certain retail client obligations under Chapter 7 of the Corporations Act 2001, is scheduled to end on 16 August 2025.
ASIC granted the relief to reduce regulatory burden and provide certainty for industry that the retail client obligations do not apply to what are, in fact, business insurance products. This prevents retail client compliance costs from being incurred and passed on to businesses.
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Under the Legislation Act 2003 (Cth), all legislative instruments are repealed automatically, or sunset, after 10 years, unless ASIC takes action to preserve them.
