Recent reforms related to financial products sold to consumers include:

Add-on Insurance Reforms

Add-on insurance products are sold to a consumer with another type of product. Examples include consumer credit insurance offered with a home loan, or tyre and rim insurance with the sale of a car.

The reforms introduce a four-day deferral period for the offer or sale of add-on insurance associated with the sale of products.  Consumers will have time to consider if the insurance is suitable for their needs without pressure.

There are some exemptions to the regime. Examples are the sale of CTP insurance and comprehensive insurance with cars and home building and house and contents insurance.

Breaches of the legislation may result in fines for sellers. Affected consumers can cancel the policy and ask for a refund.

Anti-Hawking of Financial Products Reforms

The anti-hawking provisions aim to prevent consumers from buying inappropriate insurance and other financial products because of unsolicited contact from a seller. This also aims to prevent financial harm by allowing consumers to make their own choices about suitable financial products.

There are some exemptions to the anti-hawking regime, including basic banking products and offers made to existing customers of the seller.

Breaches of the legislation may result in fines for sellers.

The ASIC website (link opens new window) includes more detailed information in the regulatory guides for each reform.