ASIC relief notice: former IBD members

ASIC decides to take no action in relation to printed PDSs and FSGs

ASIC will take no action against Insurance Brokers Disputes Limited (IBD) members for breaches of sections 941E and 1012J of the Act, the requirements to keep the information PDSs and FSGs up to date, in circumstances where:

1. The PDS or FSG is printed prior to 1 January 2009;
2. The member has become a member of the Financial Ombudsman Service; and
3. The member has not included information about the Financial Ombudsman Service in the relevant PDS or FSG.

This no action position is provided on the following conditions:

1. The PDS or FSG was up to date at the time it was printed;
2. The member must provide details of the Financial Ombudsman Service to a consumer who requests the information or makes a complaint. The information may be provided in writing, orally or via a website; and
3. For disputes that are unresolved after having been through a member's internal dispute resolution procedures, the member must inform the disputant that they have a right to pursue their dispute with the Financial Ombudsman Service and provide details of how to access the Financial Ombudsman Service.

This no action position is also conditional on the Financial Ombudsman Service maintaining re-direction arrangements for all communications to IBD which have the effect that if a consumer contacts IBD, that consumer is directed to the Financial Ombudsman Service.

This no action position will apply only until the next reprint of the PDS or FSG, or until 31 March 2010, whichever comes first.

Where information about EDR schemes is contained in documents which are not printed, or is set out on a website, members are expected to keep that information up to date and include details of the Financial Ombudsman Service. This does not apply to a copy of a printed PDS or FSG available on a website.

Updating the ASIC register

When a licensee becomes a member of the Financial Ombudsman Service, the Australian Financial Services licensee register held by ASIC will need to be updated to include details of the new EDR scheme membership. In order for this process to run as smoothly as possible, the Financial Ombudsman Service and ASIC have agreed that for current members of IBD:

• The Financial Ombudsman Service will provide ASIC with details of its new members, and
• ASIC will update the ASIC Australian Financial Services licensee register to show that particular licensees have become members of the Financial Ombudsman Service.

This means that individual licensees do not have to notify ASIC of their new membership of the Financial Ombudsman Service. This notification arrangement will operate until 31 March 2009.