5th August, 2020 · bulletin

Consultation on the Sale of Add-On
Motor Vehicle Financial Risk Products
(Add-On Insurance and Warranties)

< 1 minute to read

In October 2019, ASIC initiated a consultation period on its draft Product Intervention Order (PIO) for Financial Risk Products. The intention of the PIO was to put in place protections for consumers acquiring add-on insurance and warranty products provided through new and used car Dealers. The AADA responded to this consultation, a copy of that submission is available here.

Following this consultation, ASIC has made amendments to the draft PIO which it is now seeking feedback on. To assist with this process, ASIC have provided a summary of the changes and compared them to the original draft provisions.

The AADA will be working with a group of Dealers to prepare a response to these changes. We would encourage Dealers wishing to comment, to do so through the AADA. If you have any comments or concerns, please email them to Brian Savage by COB Monday 17 August.

Submissions to ASIC are due on Wednesday 19 August.

Any Dealers wanting to contribute submissions of their own can do so before this deadline. Submissions should be sent to: product.regulation@asic.gov.au.

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