ASIC today announced that Regulatory Guide 195 Group purchasing bodies for insurance and risk products (RG 195) has been amended to clarify when ASIC may grant relief from the Australian financial services licensing and disclosure regime and Ch 5C of the Corporations Act 2001 for some group purchasing bodies and to also give additional guidance on how the conditions for relief operate.

RG 195 explains the relief ASIC has given for bodies that purchase risk management products (e.g. insurance) for groups of people and what the group purchasing bodies must do in order to receive the benefit of ASIC relief.

Class Order [CO 08/1] gives conditional relief from the Australian financial services licensing and disclosure regime and Ch 5C of the Corporations Act 2001 for some group purchasing bodies who arrange or hold risk management products (insurance) for the benefit of third parties.

Under the changes the period for compliance with the breach reporting requirements in Class Order [CO 08/1] will commence the first time that the group purchasing body acquires, renews or renegotiates the terms of the risk management product on or after 31 December 2010, but in any event no later than 31 December 2011.

The changes are set out in Class Order [CO 10/177], which amends Class Order [CO 08/1] Group purchasing bodies.

[CO 10/177] also clarifies the relief available for eligible group purchasing bodies that are arranging and holding risk management products or operating a risk management scheme.

Read:

• Regulatory Guide 195 Group purchasing bodies for insurance and risk products (RG 195)
• Class Order [CO 10/177] Group purchasing bodies - variation of Class Order [CO 08/1]
• Explanatory statement for Class Order [CO 10/177]
• Class Order [CO 08/1] Group purchasing bodies