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The Australian Securities and Investments Commission (ASIC) has clarified the relief it provides to not-for-profit bodies providing group insurance arrangements.
The regulator said it had varied the relevant class order in response to requests from the insurance industry and some group purchasing bodies to provide certainty about who would be eligible for relief and to introduce greater flexibility for compliance with the conditions of relief.
The relief meant that compliant group purchasing bodies would not be required to hold an Australian Financial Services (AFS) licence or comply with the terms of the Corporations Act as they apply to managed investment schemes.
Explaining its approach to the class order, ASIC said it considered that requiring all group purchasing bodies to hold an AFS licence and comply with the managed investment scheme registration requirements would impose a disproportionate cost burden on group purchasing bodies.
It said the relief would ensure that eligible group purchasing bodies could continue to enter group purchasing arrangements for the benefit of their members or clients.
