Coronavirus (COVID-19) updates from the Australian Government

Regulation of Claimant Intermediaries

8 days left to have your say
Date
-
Consultation Type
Exposure Draft

Key Documents

On 12 November 2020 the Treasurer, the Hon Josh Frydenberg MP, introduced to the House of Representatives the Financial Sector Reform (Hayne Royal Commission Response) Bill 2020. The Bill passed both houses on 10 December 2020. This Bill included legislation to implement recommendation 4.8 of the Financial Services Royal Commission that makes insurance claims handling a financial service. The legislation creates a licensing requirement for claimant intermediaries, defined as a person who carries on a business of representing people to pursue insurance claims in exchange for a monetary or non-monetary benefit, or a benefit provided to another party.

Claimant intermediaries who carry on a business representing consumers to pursue claims are required to:

  • obtain an Australian financial services licence covering claims handling;
  • comply with the general obligations under section 912A of the Corporations Act, including the obligation to:
    • provide claims handling services efficiently, honestly and fairly; and
    • have a compliant internal dispute resolution process in place and be a member of AFCA (if the consumer is a retail client); and
    • give the consumer a Financial Services Guide if the consumer is a retail client.

The exposure draft regulations attached prescribe circumstances in which a person is not a claimant intermediary.

Related content

Financial Sector Reform (Hayne Royal Commission Response) Bill 2020
 

Responding

You can submit responses to this consultation up until 25 January 2021. Interested parties are invited to comment on this consultation.

While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.

Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

View our submission guidelines for further information.

How To Respond

Email

ClaimsHandling@treasury.gov.au

Post

Address written submissions to:

Treasury
Langton Cres
Parkes ACT 2600

Enquiries

Email: ClaimsHandling@treasury.gov.au