Draft regulations issued by ASIC last week have laid to rest concerns by loss adjusters and other industry service-providers that they would be caught up in the financial services reforms. Blake Dawson Waldron partner Mark Radford described the decision as “common sense”.

The new draft regulations state that a financial service provided to an insurer which consists only of either or both the handling and the settlement of claims in relation to an insurance product is not provision of a financial service. It’s therefore exempt from licensing under the new regime.

“Insurers and loss adjusters will breathe a sigh of relief,” Mr Radford said.