The Australian Securities and Investments Commission ("ASIC") has granted relief from the requirement to provide a Financial Services Guide (FSG) to certain Authorised Representatives.
The relief applies to Authorised Representatives who are authorised by an Australian Financial Services Licensee (Licensee) to provide both of the following services on behalf of the licensee:
- deal in general insurance products and/or bundled consumer credit insurance products; and
- provide claims handling and settling services.
Where the Authorised Representative is authorised to provide any other services, the relief will not apply.
What do Licensees need to do?
Licensees must ensure that their Authorised Representatives are taking reasonable steps to:
- provide their clients with information about the availability of the Licensee's dispute resolution system and how the system may be accessed;
- provide their clients with information in writing regarding who the Authorised Representative acts for when providing the financial services; and
- disclose in writing any remuneration, commission or other benefits the Authorised Representative (or its associates) may receive in relation to the provision of the financial services.
Background:
Section 941B of the Corporations Act 2001 (Cth) requires an Authorised Representative of a Licensee to provide a client with a FSG as soon as practicable after it becomes apparent that a financial service will be provided.
A FSG must not be given to a client unless the Licensee has authorised its distribution.