Sub-Authorised Representative Appointment Relief for Insurance Claims Handling and Settling Providers

Victoria Lombardo

Victoria Lombardo

Victoria provides support to our compliance and legal teams and assists our clients with the preparation and collation of documentation required for AFS and credit licence applications. She also supports senior staff by providing assistance to clients with the maintenance of their licences through the preparation of compliance policy documents and ongoing compliance support.


Translate

ASIC has removed the obligation for insurance claims handling and settling providers to notify ASIC of the sub-authorisation of employees under their Australian Financial Services (“AFS”) Licence.

This means that if you are a claims handling AFS Licensee and you intend to appoint authorised representatives which are corporate entities, you do not also need to notify ASIC of the appointment of employees of those corporate entities. The appointment of all other authorised representatives, including individual representatives must be notified to ASIC.

Regardless of the relief, the general conduct obligations still apply to both authorised representatives and AFS Licensees. AFS Licensees also have the obligation to monitor and supervise all authorised representatives and their employees, regardless of whether the appointment has been notified to ASIC.

What is an Authorised Representative?

Authorised Representatives are individuals (including companies) authorised to provide financial services on behalf of an AFS Licensee. An Authorised Representative that is a corporate entity may also have the authority to appoint its employees as sub-authorised representatives, with the consent of the AFS Licensee.

Ordinarily, AFS Licensees must notify ASIC within thirty (30) business days of the date an authorisation is issued.

Background:

From 1 January 2022, persons providing claims handling and settling services were required to hold an AFSL after it was established as a financial service.

ASIC has acknowledged that the appointment of sub-authorised representatives by claims handling AFS Licensees is likely to create an unnecessary administrative burden and result in limited consumer benefit.  

Further Reading:

ASIC Corporations (Notification of Authorised Representatives) Instrument 2022/301 

Financial Sector Reform (Hayne Royal Commission Response) Act 2020

Authorised Representatives – Section 761A of the Corporations Act 2001 (Cth)

Regulation 7.6.04AA of the Corporations Regulations 2001

Contact Us

If you would like to discuss your obligations to notify ASIC of your authorised representatives or how we can assist you with your compliance obligations, please contact us.

Victoria Lombardo

Victoria Lombardo

Victoria provides support to our compliance and legal teams and assists our clients with the preparation and collation of documentation required for AFS and credit licence applications. She also supports senior staff by providing assistance to clients with the maintenance of their licences through the preparation of compliance policy documents and ongoing compliance support.