The Australian Securities and Investments Commission (ASIC) has extended regulatory relief for insurers and brokers on incidental retail cover while also consulting on new conflict management rules and financial reporting exemptions.
ASIC has reissued the Corporations (Incidental Retail Cover) Instrument 2022/716, originally due to lapse on Aug. 16. The instrument will now remain in place for a further five years.
The exemption removes the need for insurers and intermediaries to apply retail client obligations under the Corporations Act 2001 where a wholesale insurance policy includes a small component of retail cover.
ASIC said the continuation of the relief ensures businesses are not exposed to unnecessary compliance costs.
The regulator found the instrument has been working as intended and remains an important part of the legislative framework.
ASIC confirmed it will continue to review the measure in light of regulatory experience and stakeholder feedback.
Industry input was sought in May 2025, with one submission received in support of the proposal.
Incidental retail cover applies where retail insurance is inseparably linked to wholesale products, such as cover for employees’ personal effects included in a corporate property policy.
The relief only applies where the cover is incidental and cannot be purchased separately, excluding optional add-ons.
In a separate development, ASIC has issued draft revisions to Regulatory Guide 181 covering the management of conflicts of interest by Australian financial services (AFS) licensees.
The guidance has not been updated since 2004 and incorporates lessons from recent supervisory work.
ASIC Commissioner Kate O’Rourke said effective conflicts management is a key obligation under section 912A(1)(aa) of the Corporations Act 2001.
The updated guide outlines how licensees should identify and address conflicts, the need for systems suited to their business risks, and links to other legal obligations.
The draft includes practical examples and steps businesses can adopt to manage conflicts of interest. ASIC is inviting comments through Consultation Paper 385, with submissions closing on Sept. 5.
ASIC is also consulting on the renewal of five financial reporting relief instruments that are scheduled to expire on Oct. 1.
Following a review, the regulator has proposed retaining the instruments with minor technical amendments to align with current drafting standards.
The instruments cover a range of reporting relief, including exemptions for externally administered entities and those in wind-up, concessions for non-reporting entities, disclosure of post-balance date acquisitions or disposals, and consolidated reporting for registered schemes and stapled groups.
Submissions on these proposals are open until Aug. 1.
