ASIC has lifted its interim Design and Distribution Obligation stop orders on two Clearview Income Protection Covers, which it introduced last week.
In an update, the life insurance company said it took quick action to address the regulator’s concerns.
On 18 July, ASIC said it was concerned that the Target Market Determinations for the two Clearview products failed to consider the impact of key eligibility criteria (e.g. age and minimum employment criteria) on the suitability of the product for certain classes of consumers.
A TMD is a requirement under DDO. It is a mandatory public document that sets out the class of consumers a financial product is likely to be appropriate for (the target market) and matters relevant to the product’s distribution and review.