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ICA calls for ‘flexibility’ to proposed add-on reforms

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The Australian Securities and Investments Commission’s (ASIC) planned deferred sales model should be amended to remove some of the “granular and rigid” sections, according to feedback.

The Insurance Council of Australia (ICA) says it supports ASIC using its product intervention powers to implement the model but has urged the regulator to “allow for more flexibility” in the proposed set-up.

“For example, the proposed commencement of the deferral period is tied to when a consumer has been given online access to a tailored consumer roadmap,” ICA says in a submission. “This would lead to consumers who do not have ready access to online channels being denied insurance.

“Similarly, while we strongly support action to address the risk of pressure selling or other unfair tactics at the point of sale, the proposed deferred sales model should not preclude conversations with consumers that genuinely aim to provide information about the products offered to them.”

ASIC launched the consultation last month seeking feedback on its deferred sales model plan, the extra obligations attached to the sales scheme and measures to monitor the impact of the changes.