The Australian Securities and Investment Commission (ASIC) has said there will be a focus on the spirit of policy, rather than a strict understanding on requirements when it comes to defining upcoming compliance regulations.
Speaking at the FSC Life Insurance Summit, Emma Curtis, ASIC senior executive leader – insurers, financial services and wealth group, said: “We’re working on guidance on breach reporting, internal dispute resolution (IDR) and hawking so there’s a number of cross industry, cross sector reforms that don’t just apply to life insurance, but will have a big effect on operations.
“We’re working hard to put out some guidance as to what compliance looks like with those obligations.
“The thing that stands out to me is compliance with the spirit of the policy intent, rather than a strict and literal understanding of what requirements are.”
Curtis said that was going to help with insurers to demonstrate a proactive consumer-centric compliance culture.
“It’s a bit of a watch this space to see what the draft guidance looks like, then review it, and provide submissions back to us during the consultation period,” Curtis said.
“That’s really going to help us shape that guidance so its suitable and useful the industry.”