Search

Interim mutual risk products regulation approach

AN interim approach to the regulation of mutual risk products has been released.

Mutual risk products provide an alternative to conventional general insurance products.

Generally, MRPs involve participation in a "mutual" scheme based around particular professions, small business associations, franchise operations or community groups.

They cover a range of risks such as professional indemnity and public liability risks.

Australian Securities and Investments Commission executive director financial services regulation Ian Johnston said the commission considered MRPs to be financial products for the purposes of the Corporations Act because they represent both facilities for managing financial risk and interests in a managed investment scheme.

"As such, ASIC generally expects MRP providers to comply with managed investment scheme and licensing provisions of the Act," he said.

"In specific limited circumstances, ASIC will consider granting relief from the managed investment and licensing provisions of the Act."

Add your comment

BNIQ sponsored byECU School of Business and Law

Students

6th-Australian Institute of Management WA20,000
7th-Murdoch University16,584
8th-South Regional TAFE10,549
9th-Central Regional TAFE10,000
10th-The University of Notre Dame Australia6,708
47 tertiary education & training providers ranked by total number of students in WA

Number of Employees

BNiQ Disclaimer