(Re)Insurance and Regulation Focus - fortnight commencing 29 September 2025

Key developments in the last fortnight

ASIC alleges misleading insurance comparisons against RACQ

ASIC alleges that between September 2019 and December 2024, RACQ Insurance Limited sent over 570,000 renewal notices containing a comparison to the previous insurance period’s premium that was false or misleading. ASIC’s allegation is that the 'last period premium' amount presented to customers was higher than what the customers had actually paid as it did not account for negotiated discounts or policy changes that affected the premium. The representation is said to have occurred across a suite of policies, including home and contents, car, caravan, boat and pet insurance. ASIC has identified one customer who received a renewal notice with a new premium of $7,033.57 and the previous period’s premium being $6,930.55 (or an increase by 1.5%), when in actuality the previous period’s premium was $5,024.18, which was an increase of 38%. ASIC also alleges that RACQ was aware of the practice as they had received complaints from customers within two days of sending renewal notices with the comparison.

ASIC takes court action alleging RACQ sent half a million misleading insurance renewal comparisons

ASIC releases feedback received regarding publication of data relating to reportable situations and internal dispute resolution

Consultation has closed on ASIC’s proposal to publish data about reportable situations and internal dispute resolution submissions that ASIC receives. The proposal contemplates the data being published at a firm level. Following closure of the consultation period, ASIC has released a summary of the feedback that it has received on the proposal. A key point of the feedback included support for the objects of transparency and accountability, but requested more time before firm level data publication, a request that ASIC rejected whilst limiting the data to be published. Other points of feedback included the support for an interactive dashboard format and highlighting the need for the dashboard to support accurate interpretation of the data, both of which ASIC have agreed to. ASIC’s responses to the feedback can be found at the link below. Readers should be aware of ASIC’s plans and how their data is expected to be published once the dashboard is public.

Reportable situations and internal dispute resolution data publication

ASIC issues stop order against RELI Capital

ASIC has issued an interim stop order against the RELI Capital Mortgage Fund, a registered managed investment scheme operated by RELI Capital. The stop order prevents RELI Capital from dealing in interests giving a product disclosure statement for, or providing general financial product advice to, retail clients recommending an investment in the fund for a period of 21 days unless revoked earlier. ASIC’s basis for issuing the stop order is due to concerns relating to the Target Market Determination issued by RELI Capital including incomplete measures of the fund’s risk, statements that no distribution conditions are necessary for the fund and statements regarding the suitability of the fund. This action by ASIC serves as a reminder that ASIC will continue to take action where it considers that the Target Market Determinations are not appropriate.

ASIC issues DDO stop order against RELI Capital Mortgage

Further stop orders issued against La Trobe

ASIC has made an interim stop order against La Trobe US Private Credit Fund and La Trobe Australian Credit Fund, which are registered managed investment schemes operated by La Trobe Financial Asset Management Limited (La Trobe). The basis of ASIC issuing the stop orders is for concerns that both funds’ Target Market Determinations (TMDs) suggest an inappropriate level of portfolio allocation given the funds’ risks, and, in the case of the US Credit Fund, the TMD does not adequately specify an investment timeframe for retail clients, and in the case of the Australian Credit Fund, the TMD does not include appropriate distribution conditions. The stop orders prevent La Trobe from dealing in interests giving a product disclosure statement for, or providing general financial product advice to, retail clients recommending an investment in the funds for a period of 21 days unless revoked earlier. These actions reinforce ASIC’s continued efforts to ensure that product issuers’ TMD works to protect consumers from acquiring a product that may not be suitable for their financial objectives, situation or needs.

ASIC issues DDO stop order against La Trobe US Private Credit Fund and ASIC issues DDO stop orders against La Trobe Australian Credit Fund

Key dates

• 9-10 October 2025 – Insurance Council of Australia’s 2025 Annual Conference.
• 15 October 2025 – ASIC consultation closes on initiatives to simplify ASIC’s regulations and further proposals.

In case you missed it

Sparke Helmore was nominated as a finalist for Professional Services Firm of the Year award at this year’s Australian Insurance Industry Awards. Whilst we were unsuccessful on the night, we are grateful to have been recognised.