A common question I’m asked is the timing to provide disclosure documents & other notices.
The source of the obligation – Act, Regs or Code includes the timing & content requirements for each document & by whom & to whom provided.
The requirements depend on the type of client (retail or wholesale), what you do & who you represent (broker representing an insured or MGA/TPA representing an insurer, or an insurer).
𝗦𝘂𝗺𝗺𝗮𝗿𝘆
𝑭𝑺𝑮
An AFS Licensee or their AR must give a FSG to a retail client as soon as practicable after it becomes apparent that a financial service will be provided to that client & before a financial service is provided.
It is industry best practice to provide an FSG to wholesale clients.
Insurance brokers should be aware that an FSG may be given after the services have been provided in ‘time critical’ cases such as an impending policy due date (4pm).
Brokers can also provide the ‘Terms of engagement’ (part 4.2 Brokers Code) at the same time as providing an FSG.
Insurance Claims Managers do not need to provide an FSG (as they act for insureds) but Claimant Intermediaries must.
𝗦𝗢𝗔
A Statement of Advice must be provided where personal advice is provided to a retail client for sickness & accident & CCI insurance products. The SOA must be provided when or as soon as practicable after providing the advice.
𝗚𝗲𝗻𝗲𝗿𝗮𝗹 𝗮𝗱𝘃𝗶𝗰𝗲 𝘄𝗮𝗿𝗻𝗶𝗻𝗴
A GAW must be provided at the same time & in the same format as when general advice is provided to retail clients. If the GA is provided on a website or in a document the GAW must be included.
𝑷𝑫𝑺
Generally, a product issuer (insurer or MGA) must provide a PDS to a retail client when making an offer (quote) or sale. A broker should ensure a PDS is provided when making a recommendation to a retail client to buy an insurance product.
𝑻𝑴𝑫
A TMD must be made publicly available before any person distributes a financial product that is subject to the design & distribution obligations ie ‘retail product distribution’. Generally the TMD is available on issuers websites with links provided in relevant documents.
𝑪𝒂𝒔𝒉 𝑺𝒆𝒕𝒕𝒍𝒆𝒎𝒆𝒏𝒕 𝑭𝒂𝒄𝒕 𝑺𝒉𝒆𝒆𝒕 & 𝑪𝒐𝒏𝒇𝒊𝒓𝒎𝒂𝒕𝒊𝒐𝒏 𝒐𝒇 𝑻𝒓𝒂𝒏𝒔𝒂𝒄𝒕𝒊𝒐𝒏𝒔
A CSFS must be provided by insurers (or TPA) to retail clients before a cash payment is made where there are other legally available options to settle the claim.
A CoT must be provided as is reasonably practicable after the transaction with the retail client occurs & includes acceptance & settlement of an insurance claim.
A CSFS may be provided up to 5 days after the payment in cases of ‘immediate need’. A CSFS or CoT is not required in family violence situations.
𝑼𝑭𝑰
Brokers must provide a written notice to a client when placing business with an Unauthorised Foreign Insurer when relying upon 1 of the 4 exceptions.
Contact me to understand all your disclosure & notices obligations.