The Australian Securities and Investments Commission (ASIC) has granted iExtend its Australian Financial Services Licence (AFSL), which the firm said would broaden the scope of its potential offerings.
This comes after iExtend was instructed to apply for an AFSL late last year, following an investigation by ASIC to determine whether it was operating a financial services business without the appropriate licence.
iExtend offers Australians who have determined to cancel their life insurance policies, either wholly or in part, the opportunity to maintain some cover through its co-ownership arrangement wherein it acquires interest in the policy, takes on some of the ongoing responsibility for premiums, and entitles the firm to a portion of any subsequent claims.
Now having been granted an AFSL, it has the opportunity to expand its service offerings and “provide financial advisers with stronger support to help their clients with insurances that would otherwise be abandoned by them”.
The firm said that being granted the AFSL provides a “clear and definitive decision on how iExtend fits into a regulated market”, ensuring greater certainty moving forward.
In addition to this, with the appropriate authorisation for the firm’s personnel to provide general advice, the firm said the AFSL would also allow iExtend to better service a referral relationship with advisers, broadening the firm’s reach.
David Sarkis, the chief executive of iExtend, said this decision would help future organisations find their place within financial services.
“iExtend is pleased to accept the certainty provided by the issue of an AFSL, the result of a consultative process between ASIC and iExtend. This provides a pathway for how innovation, such as iExtend, can best participate in this industry and within a consumer protection-focused framework,” Sarkis said.
The firm said it has received strong support from several advice groups, including Lifespan Financial Planning, Advice Evolution, MBS insurance, Life Experts and Newlane Risk, some of which iExtend is also an education partner.
iExtend said it will maintain the commitment to its involvement in AFSL professional development days and the iExtend iExchange Forums, a network of risk advisers advocating for solutions to address the challenges facing the risk industry.
Sarkis added: “iExtend is proud of its achievements and the AFSL marks a new chapter of opportunity for the offer and solidifies our desire to work with financial advisers and their clients to ensure life insurance is seen as an asset rather than liability.”
