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The Australian Prudential Regulation Authority (APRA) has finalised a new Information Security Prudential Standard (CPS 234) coming into effect on 1 July 2019.  CPS 234 will apply to all APRA regulated entities, including insurers. The purpose of CPS 234 is to ensure that an APRA regulated entity has measures in place to be resilient against information security incidents, including cyber-attacks. Why introduce a new prudential standard? The release of CPS 234 follows a…
Starting 1 November 2018, the Australian Financial Complaints Authority (AFCA) replaces the Financial Ombudsman Service (FOS), Credit and Investments Ombudsman (CIO) and the Superannuation Complaints Tribunal. The AFCA is now the ASIC approved External Dispute Resolution (EDR) scheme for consumer and small business complaints for Australian financial and credit industries. All financial firms should now be members of the AFCA, as the deadline to register was 21 September 2018. For insurance industry participants, this includes…
APRA has recently released the final versions of three Prudential Standards which will apply to private health insurers (PHIs) from 1 July 2019.  New versions of the following prudential standards have been released: Prudential Standard CPS 510 – Governance; Prudential Standard CPS 520 – Fit and Proper;  and Prudential Standard HPS 310 – Audit and Related Matters. APRA has also released two Prudential Practice Guides, CPG 510 and CPG 520, to help private health insurers…
The Notifiable Data Breaches scheme (NDB scheme) takes effect in Australia in less than a month – organisations must comply with the scheme from 22 February 2018. In preparation for the introduction of the NDB scheme, the Office of the Australian Information Commissioner (OAIC) has provided an update and published its fact sheets in final form.  While the OAIC has mostly made stylistic changes to its fact sheets it has also provided additional guidance in…
What are the legal and insurance implications of the recent furore regarding cladding in Australia? This was considered at a Norton Rose Fulbright panel discussion, “What does the future hold for cladding in Australia?”, by partners John Moran, Emmanuel Confos and Katherine Morris, and Christina Knorr, Chief Fire Engineer at Stephen Grubits & Associates. The issue of cladding used on buildings has been brought into the global spotlight following the Grenfell fire in June 2017.…
ASIC’s latest report (Report 492) on add-on insurance makes for sobering reading. Following a review of add-on general insurance products sold through car dealers, ASIC identifies a number of concerns. This follows earlier reports focused on consumer experiences (Report 470) and the sale of life insurance through car dealers (Report 471). The most recent report focuses on the design of insurance policies and sales processes.…
ASIC to increase surveillance to monitor compliance with PI insurance requirements AFS licensees should check their PI policy to determine whether cover is adequate Insurers should review their PI offerings to ensure cover is compliant with RG 126 Following an eight month review, ASIC has released its findings on the PI insurance market and areas of regulatory risk for AFS licensees providing financial product advice to retail clients on Tier 1 products (referred to as…