CP 80 Group insurance arrangements
Released 7 May 2007. Comments closed 25 June 2007.
The provisions of Ch 7 and Ch 5C of the Corporations Act 2001 (Cth) are designed to protect consumers by imposing obligations on issuers and distributors (sellers) of financial products. On their face, these provisions also apply to group purchasing bodies. However, as the role played by group purchasing bodies in arranging the purchase of these insurance products is in many respects comparable to that of a consumer or purchaser of insurance products (rather than a seller of insurance), we think strict compliance with these provisions may be inappropriate.
We are consulting on a proposal to offer conditional ongoing relief for group purchasing bodies from the obligations under Ch 7 to hold an Australian financial services (AFS) licence and under Ch 5C to register certain kinds of managed investment schemes that may be involved in the group insurance arrangements.