Finance & Insurance

OUR POLICIES

Anti-Money Laundering and
Counter-Terrorism Financing (AML/CTF)

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AADA Position AADA urges the Government not to impose a full AML/CTF regime on the motor vehicle retailing industry and that its AML/CTF objectives could be achieved through the recently announced prohibition on cash transactions exceeding $10,000. Background The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF) provides the legislative framework under which businesses known

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Add-on Insurance Products

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ASIC released three reports into the design, distribution and sale of add-on insurance products sold through car dealerships. The report found systematic problems resulting in a market that is failing consumers; products were ‘sold’ rather than being ‘bought’ by consumers; products were high cost (due to excessive commissions); and poor value measured in claims outcomes. ASIC commented that insurers had designed complex and extremely poor value products, and put their reputations at risk.

AADA and insurers were invited to comment on reform proposals in ASIC Consultation Paper 294, August 2017. The reform proposals are a deferred sales model (DSM) for products regulated under by the Corporations Act other than comprehensive or compulsory third party (CTP) insurance products (Proposal 1), and the introduction of more robust and targeted requirements for providers when supervising and monitoring their authorised representatives (Proposal 2). AADA’s supports any reform proposals that would lead to better consumer outcomes but recommends that a short deferral period and a consumer opt-out mechanism be included in the DSM.

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