ASIC warns comparison websites
Some insurance and credit comparison websites are not properly licensed to provide financial services, according to the Australian Securities and Investments Commission (ASIC).
The regulator is particularly concerned that some insurance websites provide comparisons on the basis of price, without any warning that different products may have different features and levels of coverage.
ASIC has threatened regulatory action against operators of comparison websites who are not properly licensed and do not disclose links to product manufacturers and 'rankings' criteria.
Another concern includes websites comparing only a limited number of products from a limited number of providers.
"ASIC recognises that consumers can benefit from the increasing opportunities to research and compare financial products online," said ASIC Commissioner Peter Kell.
"For this to occur, operators of the comparison websites must take care to ensure they accurately portray the features and limitations of the products compared."
Commissioner Kell said ASIC would be targeting this area of the market and would take regulatory action where necessary to ensure financial product comparison websites comply with the law.
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