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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Under the Legislation Act 2003 all legislative instruments are repealed automatically, or sunset, after 10 years, unless ASIC takes action to preserve them.
Providing feedback
Please send your feedback to rri.consultation@asic.gov.au by 5 pm AEST on 25 June 2025.
Background
The ASIC Corporations (Basic Deposit and General Insurance Product Distribution) Instrument 2015/682 commenced on 5 October 2021. This relief was previously provided under two separate class orders: Class Order [CO 04/909] Agency banking and Class Order [CO 05/1070] General insurance distributors (see media release ASIC remakes three ‘sunsetting’ banking and insurance class orders (15-196MR) - 27 July 2015).
The relief provided by ASIC Corporations (Basic Deposit and General Insurance Product Distribution) Instrument 2015/682 does not remove or reduce any of the consumer protection obligations imposed on AFS licensees by the Corporations Act 2001. This ensures that consumers who access basic deposit or general insurance products offered under the relief have the same protections they would have received had they dealt directly with the provider.
