ob体育 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 is provided in business insurance contracts.听
The , which exempts insurers and brokers from certain retail client obligations under Chapter 7 of the鈥�Corporations Act 2001, is scheduled to end on 16 August 2025.听听
ob体育 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.听听
ob体育 has assessed that this instrument is generally operating effectively and efficiently and continues to form a necessary and useful part of the legislative framework.听
ob体育 proposes to remake the instrument for a period of five years and will continue to monitor its appropriateness considering ob体育鈥檚 regulatory experience and feedback from relevant stakeholders.听
Under the Legislation Act 2003 (Cth), all legislative instruments are repealed automatically, or sunset, after 10 years, unless ob体育 takes action to preserve them.听
Providing feedback
Please send your feedback to [email protected] by 5 pm AEST on 16 June 2025.听听
Refer to CS 19 Proposed remake of incidental retail cover legislative instrument
Background
commenced on 16 August 2022.听
鈥業ncidental retail cover鈥� refers to retail insurance cover provided to a business that forms a minor, incidental and inseparable part of an otherwise wholesale insurance product. For example, retail cover for the loss or damage of personal effects within wholesale business property insurance products that benefit a business鈥檚 employees.听
The relief provided through the instrument includes several conditions to ensure it is appropriately targeted and that the retail cover is genuinely incidental to, and inseparable from, the wholesale insurance product. For example, the instrument does not apply when the retail cover is offered at an optional expense, or when the business client must make a separate decision to purchase it.听
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ob体育 is Australia鈥檚 corporate, markets and financial services regulator.听