Financial and insurance services industry
If you run a financial or insurance services business, you need to know about relevant laws, licences and important topics for your industry such as workplace health and safety.
Business types in this industry
The financial and insurance services industry includes:
- investment advisers
- stockbrokers
- financial planners
- wealth management firms
- insurance agents and brokers
- superannuation providers
- insurance companies.
The businesses in this industry typically:
- provide financial advice
- provide financial, insurance and superannuation products
- buy, sell, create or change ownership of financial assets
- manage financial assets
- regulate financial activities.
Industry statistics
Industry research is an important part of planning for your business, it may help you identify:
- economic and industry trends
- establish or improve your business
- help you keep pace with your industry.
See statistics about Australian Industry and Finance on the Australian Bureau of Statistics website.
Check out the profile for the financial and insurance services industry, on the Labour Market Insights website. This will give you an idea of what's happening in the Australian job market.
Legislation standards and initiatives
It’s important that you are aware of the laws that apply to the financial and insurance services industry including:
- Competition and Consumer Act 2010 and insurance monitoring by the Australian Competition and Consumer Commission under this Act.
- Australian Consumer Law (ACL)
- Corporations Act 2001
- Corporations Amendment (Future of Financial Advice) Act 2012
- Anti-Money Laundering and Counter-Terrorism Financing Act 2006
- National Consumer Credit Protection Act 2010.
APRA activity legislation
Companies with Australian Prudential Regulation Authority (APRA) oversight should also consult the legislation that applies to APRA activities. This legislation includes:
- Authorised Deposit-taking Institutions (ADIs) legislation
- General insurance legislation
- Superannuation legislation
- Life insurance and friendly society legislation.
ASIC codes of conduct
Industry associations set codes of conduct to establish service standards. The Australian Securities and Investments Commission (ASIC) provide a list of codes of conduct for the financial services industry.
Licences and permits
State and territory governments manage the licences and permits for the financial and insurance services industry.
The licences and permits you may need include:
- credit provision
- registered schemes
- custodial or deposit services
- providing financial products
- credit licence
- Australian Financial Services (AFS) licence.
Find the licences and permits you need for your business
Search the Australian Business Licence and Information Service (ABLIS) to find information on the licences you may need.
Search nowTaxation
The financial and insurance services have specific goods and services tax (GST) measures. Know your GST obligations and register with the Australian Taxation Office (ATO) to ensure you can claim your GST credits.
Levies and charges
Levies and charges fund activities that benefit the industry or economy as a whole such as consumer protection and regulation of the industry. Levies in the financial and insurance services industry contribute to:
Employ people
If you employ staff, you need to comply with Australia’s national workplace laws specific to the financial and insurance services industry.
Use our checklist for small business owners to help you meet Australian laws when hiring an employee. We’ve also included some tips that might help you through the hiring process.
If you're ready to employ someone, create an employment contract tailored to the award and your business needs.
Workplace health and safety (WHS)
There are general work health and safety regulations for all businesses, however there are state and territory WHS requirements that apply to businesses in the financial and insurance services industry:
Insurance
Alongside compulsory insurances, the financial and insurance services industry has specific insurances. These insurances may include:
- General liability - cover against legal liability for personal injury, property damage and advertising liability.
- Superannuation trustees liability - cover against actual or alleged breaches of trust or law, neglect or misleading conduct with respect to a super fund.
- Investment managers insurance (IMI) - covers breach of duty, directors and officers liability claims and fraud.
- Commercial crime - covers theft, extortion and fraud from internal employees, external sources or a combination of the two. This insurance can also cover costs associated with data restoration, investigation costs and lost interest.
- Professional indemnity insurance - covers potential damages relating to negligence or breach of duty created by an error, omission or act during the delivery of professional services.
Some banks and insurance companies may also be able to register for the Australian Government Financial Claims Scheme. This protects depositors of authorised deposit-taking institutions and customers of general insurance companies from potential losses caused by the failure of the company.
Find support
If you need advice or support, consider getting help from your industry association, a business adviser, accountant or legal professional.
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