ASIC TO ALLOW FULLY ELECTRONIC DISTRIBUTION OF LIFE AND

							Issued on: Thursday 5 October 2000



  ASIC TO ALLOW FULLY ELECTRONIC DISTRIBUTION
      OF LIFE AND SUPERANNUATION PRODUCTS
                                                                                                 ASIC
The Australian Securities and Investments Commission (ASIC) today released a policy
                                                                                            Austra lian Securities &
proposal paper (PPP) seeking public comment on proposals to remove barriers to             Investments Commission
fully electronic distribution of life insurance and superannuation products.

ASIC proposes to allow life companies and superannuation trustees to receive and
process applications electronically. They can already use electronic disclosure
documents, but in many cases existing rules mean they can only accept paper-based
applications. The proposals are also designed to remove uncertainties about whether a
fully electronic application process complies with regulatory rules.

ASIC's proposals are in line with the approach it has already taken to electronic
applications for securities such as shares and debentures.

In framing its proposals, ASIC has been careful to make sure consumers who apply for
life insurance and superannuation products electronically have full access to disclosure
documents, and are fully alerted to their rights and obligations.

The PPP seeks public comments on three sets of issues:
          • the direct distribution of life insurance and superannuation products
              using electronic applications – Section A of the PPP;
          • electronic distribution where agents and brokers are involved –
              Section B of the PPP;
          • mixed-media distribution – Section C of the PPP.

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The PPP is available from the ASIC web site at www.asic.gov.au and from the ASIC Infoline on 1300 300
630.

Public comments on the proposals should be sent to ASIC by 16 November 2000.

Comments should be sent to:
Angela Longo, Project Team, Regulatory Policy Branch
ASIC National Office Melbourne
Fax: (03) 9280 3339
email: angela.longo@asic.gov.au

Issued by:
ASIC Media Unit
Tel: (02) 9911 2683
ASIC Information Release 00/032