Final piece of DOFIs reforms falls into place

The final tranche of DOFIs reform has just been released by the Australian Treasury – draft regulations establishing reporting requirements for AFSL holders who place business with DOFIs and the disclosure requirements to the insureds, under the exemptions.

Treasury has only given us two working days in which to comment. While this seems very short, these draft regulations are the product of extensive industry consultation and are much as we expected. AFSL holders:

• who place business with either an unauthorised foreign insurer or a DMF must lodge twice-yearly reports with APRA; and
• must give wholesale clients of DMFs or unauthorised foreign insurers a product disclosure statement to ensure clients properly understand the risks.

The finalised regulations are expected to be in place very soon, as they are intended to come into effect on 1 July 2008.