Regulatory reforms slow down

The National Insurance Brokers Association (NIBA) has welcomed announcements from ASIC and APRA that regulatory projects will be postponed for the time being, as the key regulatory agencies concentrate on the impact of COVID-19.

CEO Dallas Booth said: “This is very welcome news, and gives the financial system, including insurance brokers, the opportunity to concentrate on maintaining their own businesses and serving and advising their clients at this most challenging time.”

He revealed that NIBA has written to the Government indicating that insurance brokers are in no position to implement reforms and new compliance obligations in the current challenging environment. Other industry bodies are also sending similar messages to Canberra.

It is important to note that the Design and Distribution Obligations and the Unfair Contract Terms reforms are both legislated, and their commencement dates are now set for 2021. Booth indicated that NIBA will monitor closely any decision by the government to alter the commencement of these reforms.

A range of other Royal Commission proposals were expected to be introduced into the parliament in the next month or so, however the Federal Parliament is now adjourned to August.

A detailed note on the more important reforms likely to have an impact on insurance brokers, prepared by NIBA legal adviser, Mark Radford, is available for NIBA members here.

Booth said, “We will report any announcements by the government in relation to the likely introduction of these reforms, and their likely commencement dates.”

“NIBA will continue to keep members informed of legislative and regulatory developments. We do hope the Government sees the sense of delaying the reform program until things settle down.”