Paul Muir’s Post

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Compliance specialist to the Insurance industry

𝗧𝗵𝗲 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝗰𝗲 𝗼𝗳 𝗱𝗶𝘀𝗰𝗹𝗼𝘀𝗶𝗻𝗴 𝘄𝗵𝗼 𝘆𝗼𝘂 𝗮𝗰𝘁 𝗼𝗻 𝗯𝗲𝗵𝗮𝗹𝗳 𝗼𝗳 Little-known, Section 911C of the Corporations Act is simple, yet packs a powerful consumer-protection punch. Section 911C provides: 𝗣𝗿𝗼𝗵𝗶𝗯𝗶𝘁𝗶𝗼𝗻 𝗼𝗻 𝗵𝗼𝗹𝗱𝗶𝗻𝗴 𝗼𝘂𝘁 A person must not hold out: 1. that the person has an Australian financial services licence; or 2. that a financial service provided by the person or by someone else is exempt from the requirement to hold an Australian financial services licence; or 3. that, in providing a financial service, the person acts on behalf of another person; or 4. that conduct, or proposed conduct, of the person is within authority (for example, as an Authorised Representative) in relation to a particular financial services licensee; if that is not the case 👈 [This is the really important bit]. A breach of s911C is an offence. 𝘾𝙤𝙢𝙥𝙡𝙮𝙞𝙣𝙜 𝙬𝙞𝙩𝙝 𝙨911𝘾 You should obtain legal advice on s911C however, in my experience as a compliance specialist: A 'representation statement', is critical, that includes: 1. The full legal entity name & trading names of all relevant parties; 2. AFSL and AR numbers (& ABN); 2. All the parties involved in the distribution or claims handling end-to-end value chain & their role; & 4. Who is representing who [acting on behalf of]. 𝙈𝙮 '𝙣𝙤-𝙘𝙡𝙞𝙘𝙠' 𝙧𝙪𝙡𝙚 The representation statement should be included in all business documents (including marketing materials) & on your website (& as a seperate regulatory requirement in your TMD, FSG & PDS, as relevant). I frequently, due to my compulsive compliance appetite, explore representation statements on websites of underwriting agencies, insurance brokers, insurance claim managers and claimant intermediaries. I expect to be able to easily find and read your representation statement on your website without having to click on any further links or images on your website. The statement should be prominent, clearly displayed & written in plain english however I accept that business practice is often to have the statement included in the terms & conditions located in the footer of the webpage. 𝘾𝙪𝙨𝙩𝙤𝙢𝙚𝙧-𝙘𝙚𝙣𝙩𝙧𝙞𝙘 𝙖𝙥𝙥𝙧𝙤𝙖𝙘𝙝 𝙩𝙤 𝙘𝙤𝙢𝙥𝙡𝙞𝙖𝙣𝙘𝙚 A customer-centric approach to compliance is being able to clearly & honestly explain to a consumer, the financial services & products that you are providing, and on whose behalf you are acting. It is not your role to determine that, '𝘯𝘰-𝘰𝘯𝘦 𝘤𝘢𝘳𝘦𝘴 𝘢𝘣𝘰𝘶𝘵 𝘰𝘳 𝘳𝘦𝘢𝘥𝘴 𝘵𝘩𝘪𝘴 𝘴𝘵𝘶𝘧𝘧', your role is to be upfront, transparent & honest with consumers & not hold-out that you are something that you are not. #compliance #insurance #generalinsurance

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