ASIC has accepted a court enforceable undertaking from iExtend after investigating concerns it was operating a financial services business without an Australian Financial Services Licence.
The undertaking requires iExtend to apply for an AFSL to issue financial products, to provide general advice and to provide claims handling and settling services.
In a media release, ASIC said has taken this action to ensure that iExtend’s customers are afforded the same protections as for the rest of the industry.
iExtend offers to pay people’s life insurance premiums in exchange for a portion of the benefit if a claim is made by entering into a co-ownership deed with policy holders.
The company launched in March 2022, led by CEO David Sarkis, with former CEO of Perpetual and MLC Geoff Lloyd as chair of the advisory board and former BT executive director Rodney Payne as chair.