ASIC has accepted a court enforceable undertaking from iExtend Holdings Company Pty Ltd and iExi Pty Ltd (iExtend) after investigating concerns they were operating a financial services business without an Australian financial services (AFS) licence.
ASIC’s investigation revealed that iExtend was offering to pay people’s life insurance premiums in exchange for a portion of the benefit if a claim is made. To give effect to this arrangement, iExtend acquired interests in life insurance policies by entering into a co-ownership deed with policy holders.
The court enforceable undertaking requires iExtend to apply for an AFS licence to issue financial products, to provide general advice and to provide claims handling and settling services.
Deputy Chair Sarah Court said, ‘Firms dealing in financial products have a legal obligation to be licensed.
‘The licencing regime requires financial services businesses to meet important disclosure, design and distribution obligations. ASIC has taken this action to ensure that iExtend’s customers are afforded the same protections as for the rest of the industry.’
Anyone dealing in a financial product or providing financial advice must have an AFS licence or be appropriately authorised under an AFS licence unless an exemption applies.
Consumers can check ASIC’s Registers to ensure the company or person they are dealing with is licensed.