Draft legislation for the first part of the Delivering Better Financial Outcomes reforms is open for consultation.
ASIC has accepted a court enforceable undertaking from iExtend Holdings Company Pty Ltd and iExi Pty Ltd, (“iExtend”) for operating a financial services business without an Australian financial services (AFS) licence.
iExtend offered to pay people’s life insurance premiums in return for a part of the benefit if a claim is made, acquiring interests in life insurance policies through co-ownership deeds with policy holders.
It was ASIC’s contention that iExtend’s activities were not excluded activities but regulated conduct that required iExtend to either be licensed or authorised by a Licensee; specifically, ASIC alleged that iExtend were, in effect, issuing financial products, providing general advice and offering claims handling and settling services.
The undertaking requires iExtend to apply for an AFS licence covering these services.
The relase can be accessed here.
If you wish to discuss what this action might mean for you, reach out to us.