Unauthorised Foreign Insurers – DOFI
From 1 July 2008 agents’ and brokers’ compliance obligations under their AFSL changed. From this date they are not able to deal with unauthorised DOFI’s other than through the limited exemptions rules. AFSL holders are generally prohibited from dealing with unauthorised DOFI’s, but where they do deal with DOFI’s under the limited exemption rules they will be required to report this activity to ASIC through statistical returns.
Unauthorised Foreign Insurers or DOFI’s are insurance companies that have not applied for or been approved to transact insurance in Australia. This does not mean that they cannot be used nor does it mean that they are not reputable insurance companies, but they are not licensed and as such brokers can only deal with them, provided their clients meet the exemption rules.
Stands for Direct Off-Shore Foreign Insurer.