ASIC Grants iExtend AFSL

iExtend has been granted its Australian Financial Services License by ASIC, which the company says “validates and strengthens” its offer for Australians to extend their existing life insurance policy when they otherwise decide to cancel it.

In a statement marking the confirmation of its AFSL, iExtend notes the licence also broadens the scope of its offering as a financial service product, enabling it to fully participate in the financial services market and “…provide financial advisers with stronger support to help their clients co-own with iExtend.”

It notes the granting of the retail licence “…provides a clear and definitive decision on how iExtend fits into a regulated market.”

…this provides a pathway for how innovation… can best participate in this industry…

At the conclusion of what was a long consultative process with ASIC, iExtend CEO, David Sarkis, says the firm is pleased to accept the certainty provided by the issue of an AFSL: “This provides a pathway for how innovation such as iExtend can best participate in this industry,” says Sarkis (see also: ASIC Accepts iExtend EU).

The company notes the approval of the AFSL confirms it is:

• Licensed to operate within its licence terms of the Australian financial service sector
• Compliant with the standards of the industry, providing reassurance through the validation and simplification that an AFSL provides
• Able to deliver the added resources and support that come with holding an AFSL such as PDS, FSG and supporting documents
• Holding Professional Indemnity Insurance as required as an AFSL holder
• A member of AFCA, providing policyholders an alternate dispute resolution process

It says with the appropriate authorisation for iExtend personnel to provide general advice, there is now greater scope to support a referral and introduction relationship to the iExtend offering.

The firm says it has received strong support from several advice groups including Lifespan Financial Planning, Advice Evolution, MBS Insurance, Life Experts and Newlane Risk.

It believes there is a growing industry acknowledgment of the importance of making clients aware of the iExtend offer as an alternative when discussing life insurance cancellations with clients.

“These groups recognise iExtend provides an opportunity for policyholders to maintain some of their original life insurance cover after they have otherwise determined to cancel.”

Sarkis says the AFSL marks a new chapter of opportunity for the firm’s offer and “…solidifies our desire to work with financial advisers and their clients to ensure life insurance is seen as an asset rather than liability.”