Financial products distributed by non-financial people is one of 185 indicators used by CertFair in assessing whether an organisation is fair. CertFair goes Beyond Compliance to assist insurers, bankers and other financial service organisations to assess whether they are acting fairly in the eyes of their customers, regulators and the community.

The fact that retailers are surprised that they may be captured by Royal Commission recommendation 1.7 ”The exemption of retail dealers from the operation of the NCCP Act should be abolished” supports the need to strongly consider this exemption in terms of consumer detriment. Similarly, the ”clerks or cashiers” financial services exemption in the Corps Act enables travel agents, real estate agents and the like to sell insurance.

Retailers who are not licenced or adequately trained in financial service products was a clear driver of the poor consumer outcomes observed during ASIC’s inquiry into Add-On insurance and noted by Commissioner Hayne.

As the Government considers Hayne’s recommendations, its worth noting that regulatory carve-outs and exemptions continue to be a frequent source of unfair outcomes for consumers.

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