(Re)Insurance and Regulation Focus - fortnight commencing 21 July 2025

Key developments in the last fortnight

MVIRI Code updates on the way

Consultation on proposed changes to the Motor Vehicle Insurance and Repair Industry (MVIRI) Code of Conduct has concluded, with input from stakeholders including repairers, insurance assessors and industry groups. The review recommendations will be shared with the Insurance Council of Australia in preparation for formal negotiations on the revised draft Code to be developed. The Motor Trades Association of Australia (MTAA) considers the current Code does not adequately address long-standing concerns related to transparency, accountability and balance in insurer-repairer relations, saying it is not fit for purpose. The new Code is expected to be agreed upon by the end of 2025, with implementation planned for early 2026.

Auto industry wraps code review after broad stakeholder input

ACBF Funeral Plans fined $3.5 million for misrepresentation

The Federal Court has penalised ACBF Funeral Plans Pty Ltd (in liquidation) (ACBF) with an additional fine of $3.5 million for misrepresenting ACBF was Aboriginal owned or managed when it was not. ACBF was a funeral expenses insurance provider and was previously fined for $1.2 million in 2023 for other misrepresentations that consumers would receive a lump sum payment when that was not the case under the terms of the product. ASIC Chair Joe Longo commented that this decision should act as a strong deterrent to anyone who intends to mislead Aboriginal consumers by falsely claiming Aboriginal ownership or management and emphasised that ASIC will continue to tackle misconduct targeting First Nations people as one of its priorities.

ACBF Funeral Plans penalised further $3.5 million following successful ASIC appeal

Crown Wealth Group director banned for breach reporting failure

ASIC has banned Andrew Moore, a former director, responsible manager and head of compliance at Crown Wealth Group (Crown), from performing any role involved in the carrying on of, and from controlling an entity that carries on, a financial services business for three years. ASIC found that Mr Moore had failed to take actions after becoming aware of the fees for no service conduct engaged by Crown’s corporate authorised representative, including investigating the conduct, remediating affected clients and lodging a reportable situation report with ASIC within the required timeframe. As a result of this misconduct, ASIC considers that Mr Moore does not have the required training and competency to perform his role. This decision reflects ASIC’s ongoing scrutiny of AFS licensees’ compliance with their various obligations, including breach reporting.

ASIC bans former Crown Wealth Group director Andrew Moore for failing to report fees for no service

AFS Licensees penalised for unregistered financial advisers

ASIC has issued infringement notices to two AFS licensees, namely Sky Money Pty Ltd and Smart Financial Capital Pty Ltd, as it had reasonable grounds to believe that the licensees had authorised financial advisers who provided personal advice despite being unregistered. Following the infringement notices, the licensees immediately registered the financial advisers and reported the breach to ASIC. This serves an important reminder that licensees must maintain ongoing compliance with the registration requirement for financial advisers, as failure to register brings risks for consumers who may receive personal advice from unregistered advisers who may not be fit and proper or meet the education and training requirements. Financial advisers and licensees should check the adviser’s registration status on the financial advisers register before personal advice is given to retail clients.

ASIC pursues licensees after financial advisers gave advice while unregistered

Banning orders issued for fraudulent insurance broker

ASIC has issued two permanent banning orders against a NSW insurance broker, Jason Prasad, following convictions for dishonestly obtaining a financial advantage by deception. The convictions relate to fraudulent insurance documents. The banning order means that Mr Prasad is permanently prohibited from providing financial services or engaging in credit activity, controlling an entity, or performing any functions for an entity, that carries on a financial services business or engages in credit activities.

ASIC permanently bans former insurance broker Jason Prasad

Key dates

• 10 July 2025 – the Broker commission consent regime commenced.
• 6 August 2025 – ASIC consultation closes on proposed updates to RG168 Disclosure: Product Disclosure Statements (and other disclosure obligations).
• 6 August 2025 – ASIC consultation closes on proposal to remake two legislative instruments that provide relief to facilitate electronic delivery of disclosures and update RG221 Facilitating digital financial services disclosures. 

In case you missed it

Last month, ASIC reissued RG 1 which provides updated information on ASIC’s approach to, and guidance on, applying for and varying Australian financial services licences via ASIC’s Regulatory Portal. The reissued RG 1 replaces the previous RG 1, RG 2 and RG 3. If you need any assistance with AFS licence variations or applications, please feel free to reach out to our team.