The Government has released a regulation that will provide an exemption for financial advisers from the need to vary their AFSL in order to provide claims handling.<\/p>\n
In a note to its members at the end of last week, the AFA say this regulation provides an exemption for individually licensed advisers and authorised representatives.<\/p>\n
The AFA explains that in December last year the Government passed the Financial Sector Reform (Hayne Royal Commission Response) Bill 2020,<\/em> which included a number of elements that will impact financial advice, including a requirement for AFSLs to include an authorisation to assist with insurance claims<\/p>\n The association says that at that time there was some concern expressed about whether financial advisers needed to vary their licence to include an authorisation for claims handling.<\/p>\n \u201cWe were aware at that time of the possibility of a regulation excluding financial advisers, and therefore encouraged members to wait and see what emerged.\u201d<\/p>\n …the regulation appears to meet the needs of the small business financial adviser population…<\/p><\/blockquote>\n THE AFA statement says that the regulation \u201c…appears to meet the needs of the small business financial adviser population”.<\/p>\n It added that whilst the regulation does not specifically refer to staff members of financial advice practices playing a role in claims handling, it was pleased to see that this was specifically referred to in the explanatory statement which accompanied the release of the regulation.<\/p>\n The explanatory statement explains that the Financial Sector Reform (Hayne Royal Commission Response) (Claimant Intermediaries) Regulations 2021,<\/em> dated 15 April 2021, would finalise the implementation of recommendation 4.8 of the Financial Services Royal Commission.<\/p>\n In that recommendation, Commissioner Hayne recommended that insurance claims handling should be regulated as a \u2018financial service\u2019 under the Act.<\/p>\n The explanatory statement includes financial advisers amongst those exempted noting that \u201c\u2026these people are excluded from regulation under the Corporations Act 2001 from having to obtain [an AFSL] for insurance claims handling as a claimant intermediary, because handling claims is typically not their core business and often they… do so for no monetary benefit.<\/p>\n \u201cThe Act is instead intended to require people to obtain an Australian financial services licence when they derive a monetary benefit from acting for the consumer to handle insurance claims.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" The Government has released a regulation that will provide an exemption for financial advisers from the need to vary their AFSL in order to provide claims handling. In a note to its members at the end of last week, the AFA say this regulation provides an exemption for individually licensed advisers and authorised representatives. The […]<\/p>\n","protected":false},"author":24,"featured_media":55604,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[282,8],"tags":[],"class_list":["post-55601","post","type-post","status-publish","format-standard","has-post-thumbnail","category-associations","category-compliance-regulation"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/55601","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=55601"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/55601\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/55604"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=55601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=55601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=55601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}