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Claims as a Financial Service – there’s still time left

  • TurkAlert
  • Published 26.05.2021

On 8 April 2021 ASIC published Media Release 21-067, which incorporated the final version of its claims handling and settling service information sheet – INFO 253 (formally issued on 6 May 2021).  

INFO 253 revised ASIC’s recommended date for applying for a claims handling and settling AFS licence condition from the 1 June 2021 to the 7 May 2021. 

7 May 2021 was recommended to allow an applicant time to collate any additional information ASIC may require or to resubmit an application before 30 June 2021 (noting ASIC may reject an application for lodgement if it is incomplete).   

While it may seem that time has run out – there is still time under the transitional arrangements.    

Insurers, businesses and individuals to whom the new claims handling and settling legislation applies can continue to provide claims handling and settling services from 1 July 2021 to 31 December 2021 as long as a complete application has been submitted to ASIC on or before 30 June 2021.  

If after 1 July 2021 ASIC rejects an application or an AFS licence or variation is not granted by ASIC by 31 December 2021, then you will not be able to provide claims handling and settling services from the date of the rejection or 31 December 2021 if the claims handling and settling authorisation is not granted by this date. 

With 7 May 2021 behind us it is essential that insurers, businesses and individuals caught by the new claims handling and settling legislation submit a complete application to ASIC as soon as practicable. 

If you require advice or assistance regarding applying for the claims handling and settling license condition, contact our specialist insurance partners Darryl Pereira, Paul Angus or Michael Adie to see how TurksLegal may be able to assist you.