Financial and insurance services industry
Last Updated: 23 December 2020
Business types in this industry
The financial and insurance services industry includes business providing a range of services. These include services direct to consumers and business as well as services to other businesses in the industry.
Businesses in the industry include:
- 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
COVID-19 support
Find the latest information about COVID-19 support in your state or territory.
- ACT Government COVID-19 Business and work
- NSW COVID Safe businesses
- NT Government COVID-19 coronavirus Business
- QLD Government Approved COVID Safe Industry Plans
- SA Health Information for business and industry - COVID-19
- SA Government Create a COVID-Safe Plan
- Tas Government COVID-19 Safe Workplaces Framework
- Business Victoria COVID Safe business Financial and Insurance Services sector guidance
- WA Government COVID-19 coronavirus: Business and industry recovery
Legislation standards and initiatives
You must be aware of the laws that apply to the financial and insurance services industry. Key legislation inlcudes:
- Competition and Consumer Act 2010
- 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. ASIC provide a list of codes of conduct for the financial services industry.
Licences and permits
State or territory governments manage the licences and permits for the financial and insurance services industry.
The licences and permits you may need include:
- general insurance
- 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.
Taxation
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.
Other initiatives to provide special assistance to the financial and insurance services industry include:
- Australian Reinsurance Pool Corporation (ARPC): The ARPC administers the terrorism reinsurance scheme, which provides primary insurers with reinsurance for commercial property and business interruption losses caused by terrorism.
- Financial Claims Scheme: This scheme protects depositors of authorised deposit-taking institutions and customers of general insurance companies from potential losses cause by the failure of a company.
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.
Workplace health and safety (WHS)
All business must comply with general occupational health and safety regulations. If your business resides in an office building, your health and safety strategy should include measures to prevent office-based injuries.
Some business in the financial and insurance services industry may employ staff or contractors who aren’t office-based. These business will have other WHS requirements that may include:
- standards for protective clothing and equipment
- standards for occupational safety signage
- prevention of burns from hot liquids, surfaces or steam
- driving safety
- electrical safety
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.
Government organisations
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State and territory government agencies
Government industry research
Further advice and assistance
Check our general business information for additional regulations and obligations relevant to your business.
For further advice and assistance, consider contacting your accountant, solicitor, business adviser or industry association.