Your reg changes rundown




We recently held a webinar where Chief Regulation and Compliance Officer, David McQueen and the compliance team delved into the 7 regulation changes coming this October. These include:

  • Complaints management
  • Breach reporting
  • Design and Distribution obligations (DDO)
  • Deferred sales model
  • Anti-hawking
  • Reference checking
  • Remediation


What’s coming?
Throughout September, we will be deep-diving into each change through dedicated Thrive sessions that will give you the chance to ask any questions so you're fully prepared for October. You don’t want to miss out on these pivotal sessions. You can find registration details below.


Playback and resources

If you missed the webinar, you can find the recording here. 

Plus, download the handy FAQs.



Effective: 5 October, 2021


What is it? 

RG 271 will replace RG 165 and introduce the following changes with respect to Internal Dispute Resolution processes: 

  • The expansion of the current definition of "complaints" to "[an expression] of dissatisfaction made to or about an organisation, related to its products, services, staff or the handling of a complaint, where a response is explicitly or implicitly expected or legally required” (can be a written or oral complaint including via social media where the author is identifiable but not feedback or commentary in surveys);
  •  Minimum content requirements for responses and maximum timeframes for providing a response;
  • The introduction of processes and procedures to interact with AFCA;
  • Identifying and escalating systemic issues;
  • New reporting requirements for reporting to ASIC (this is delayed until 2022 when ASIC finalise their
  • data requirements).


What does this mean and how will this impact you? 

If from 5 October someone raises a complaint, as per the expanded definition above, the following Internal Dispute Resolution regulations will apply: 

  • Acknowledge the complaint within 24 hours either verbally or in writing. 
  • Record all complaints (even if resolved).
  • Respond to the complaint within 30 days and include the final outcome of their complaint, their right to go to AFCA if they are not satisfied, and AFCA’s contact details. 

OR 

  • If their complaint takes over 30 days to investigate and conclude due to complexity or for reasons beyond the control of the financial firm, they must provide a notification to advise the complainant of the delay. 
    • Then, when the investigation concludes, 10 days to formally advise the complainant.


Compliance by Design 

  • You can use our issue capture form under the Resources tab in MyCRM.  


Complaints Management Thrive Session - Watch below!


Complaints Management Reference guide - click here. 


Further information

There is more information available via ASIC and it is important for all ACL holders to review the regulatory guides and obtain their own advice as appropriate.



Effective: 5 October, 2021 

What is it? 

Design and Distribution Obligations (DDO) is intended to help consumers get appropriate financial products by requiring manufacturers of financial products, like lenders, and distributors, like you - the broker, to have a customer-centric approach to designing and distributing products.

MFAA's CEO, Mike Felton provided this context for DDO:

"Under the incoming Design and Distribution legislation (DDO) which commence 5 October, mortgage brokers will have streamlined obligations including the recording and reporting of product complaints to the issuer, as well as the need to report any 'significant dealings' outside of the target market determination.” - Mike Felton, CEO MFA


How will this impact you? 

  • Be aware of the scope of a product’s Target Market Determination (TMD). It is a product/policy document.
  • DO NOT sell a product if no TMD is available from the manufacturer, where it falls under the DDO regime.
  • Consider whether your client fits within the TMD? If not (it’s OK if they don’t), record the reason for choosing the product (e.g. it is in the best interests of the client).
  • Record complaints about a manufacturer’s product or service.


Compliance by Design 

  • You will be able to find the TMD questions (not required to be answered until October) in the loan application in MyCRM coming in October.  


Design and Distribution Obligations Thrive - watch below!


DDO Reference Guide - click here. 


Further information

There is more information available via ASIC and it is important for all ACL holders to review the regulatory guides and obtain their own advice as appropriate.


Effective: 5 October, 2021


What is it? 

Anti-Hawking requires clear customer consent for referrals to financial products (such as insurance). This consent will only be valid for six weeks. The aim of the prohibition is to protect consumers from unsolicited offers of financial products that may not meet their needs.


How will this impact you? 

  • This does not apply to credit products. 
  • You must get explicit consent from your clients prior to referring them to financial products such as insurance.


Compliance by Design 

  • In MyCRM, you will be prompted to ask your customers for consent in the Goal Setter or in the loan application in October. 
  • Please note: from 5 October, Allianz and its partners must not offer insurance products for issue or sale or request customers apply for insurance products, in the course of, or because of, unsolicited contact. They will also not be accepting any referrals via email. Referrals will now only be made through MyCRM. In effect, this means that Allianz and its partners cannot cross-sell unrelated financial products during contact that may be solicited for another product. 


Anti-Hawking Thrive - watch below!

Further information

There is more information available via ASIC and it is important for all ACL holders to review the regulatory guides and obtain their own advice as appropriate.



Effective: 5 October, 2021


What is it? 

Deferred Sales Model imposes timeline requirements in relation to contacting customers for sales of add-on insurance.


What products are included?
This applies to add-on insurance products that are sold alongside a principle good or service
Examples of principal products and services include:

  • credit facilities such as home loans, with which consumer credit insurance may be offered;
  • motor vehicles, with which consumer credit insurance, tyre and rim insurance and other insurances may be offered;
  • furniture removals, with which removalist insurance may be offered; and
  • mobile phones, with which screen protection insurance may be offered.

What products are excluded from the deferred sales model?

  • compulsory third party (CTP) insurance for motor vehicles;
  • third party property damage,
  • fire and theft insurance for motor vehicles;
  • comprehensive insurance for boats, motorcycles, motorhomes, caravans, and trucks;
  • insurance sold within superannuation (including group life insurance);
  • postage and delivery of consumer goods insurance;
  • home building insurance;
  • home and contents insurance;
  • landlord insurance

What does this mean? 

Once the customer commits to acquire the principal product, there is a four day deferral period where the customer cannot be contacted in relation to the add-on insurance product (but can respond to customer enquiries about the product or feature). This ensures the client has sufficient time to consider the product that was offered and determine whether it’s the right product for them and their circumstances. 


How will this impact you? 

  • No impact to your processes. 
  • Be mindful that if you refer your client to an add-on insurance provider, that there will be a deferred sales period during which your client won’t be contacted.


Compliance by Design 

  • No system changes required. 


Deferred Sales Model Thrive - watch below!


Further information
There is more information available via ASIC and it is important for all ACL holders to review the regulatory guides and obtain their own advice as appropriate.



Effective: 1 October, 2021


Regulators are increasingly looking at data for the purposes of early detection, to help understand trends and
intervene to protect the interests of clients early. Breach reporting introduces new requirements for licensees
to report to ASIC when a situation is identified that is a breach (or is likely to be) of licensee obligations. For
example, a licensee must report a mortgage broker if they fail to act in the best interests of their client or if a
credit representative fails to undertake any inquiries about a client's requirements and objectives


How will this impact you? 

An ACL holder must report to ASIC if: 

  • A core obligation is significantly breached;
  • An ACL/CR is no longer able to comply with a core obligation, and if a breach occurs it would be considered significant;
  • A licensee conducts an investigation into a potential breach and it takes >30 days;
  • An investigation is completed within 30 days and it’s identified that either bullet point 1 or 2 apply;
  • Gross negligence, serious fraud and other circumstances prescribed by regulation, including breaches of misleading or deceptive conduct have been performed. 

Further to this, a licensee must also report to ASIC of other licensees where it has reasonable grounds to suspect that a reportable situation has arisen. We’re also moving to a “if in doubt, report” kind of culture.


Steps to follow and Compliance by Design 

  • Do the right thing - comply with all your NCCP obligations, Best Interests Duty and Responsible Lending. Understand what these obligations are.
  • Prove it - accurate and complete records will show that you have done the right thing.
  • Use the systems - MyCRM to help keep you safe and save you time. You will be able to capture the issue in the issue capture form under the Resources tab in MyCRM.


Breach reporting Thrive - watch below!

Further information

There is more information available via ASIC and it is important for all ACL holders to review the regulatory guides and obtain their own advice as appropriate.



Effective: 1 October, 2021 


What is it and how will this impact you? 

Remediation obligations require that when a licensee detects misconduct, they:

  • Inform client(s) within 30 days of detection.
  • Investigate the extent of any misconduct and loss.
  • Notify client(s) within 10 days of concluding the investigation.
  • Remediate losses within 30 days.
  • Maintain records of your process. 


Remediation Thrive - watch below!

Further information

There is more information available via ASIC and it is important for all ACL holders to review the available material and obtain their own advice as appropriate.



  Effective: 1 October, 2021 


What is it?
Reference Checking imposes new reference checking and information sharing obligations. This requires licensees appointing or authorising a credit representative to request a reference, which must be provided within 10 business days (or 30 days by agreement).


How will this impact you as a broker? 

  • Provide consent when required. 
  • Provide accurate information regarding former licensees. 
  • Provide a copy to your aggregator. 


How will this impact you as a licensee? 

  • Complete a reference check according to the ASIC protocol. 
  • Provide a timely response to reference checks (within 10 days) 


Further information
There is more information available via ASIC and it is important for all ACL holders to review the regulatory guides and obtain their own advice as appropriate.