New AFSL for entities who sell funeral expenses facilities


The Australian Securities and Investments Commission (ASIC) has announced that entities who sell funeral expenses facilities will be required to hold an Australian financial services licence (AFSL) from 1 April, 2020.
A funeral expenses facility would be a scheme or arrangement for the payment of money when a person dies, for the purpose of paying all or part of the expenses of, and incidental to, the person's funeral, burial or cremation.
This new licensing requirement would provide greater legislative protection to consumers of funeral expenses facilities, the regulator said.
Until 1 April 2020, funeral expenses policies were exempt from being a ‘financial product’ under the Corporations Act 2001 and the Corporations Regulations.
ASIC said that the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry recommended removing the funeral expenses exemption after identifying harm to vulnerable consumers.
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.