Miscellaneous Financial Risk Products

What is a Miscellaneous Financial Risk Product?

A Miscellaneous Financial Risk Product is an alternative to traditional insurance (known as risk protection) offered by discretionary mutual funds. Alternatives to traditional insurance are growing in interest and popularity for various reasons, especially given the increasing risk and severity of events such as natural disasters.

While availability of traditional insurance may be an issue for some people or groups, for others having more control over their financial risk management strategy is the primary motivation.

About our course

Our Miscellaneous Financial Risk Product topic covers essential knowledge for advisers seeking accreditation to provide advice in miscellaneous financial risk products, particularly Discretionary Mutual Funds.

Who is this course for?

  • Advisory businesses seeking to vary their AFSL to add ‘Miscellaneous Financial Risk Products’ to their existing authorisations
  • Insurance brokers seeking to provide advice in Miscellaneous Financial Risk Products as an authorised representative of a licensee that has this authorisation
  • Discretionary mutual funds and their authorised representatives

What is a discretionary mutual fund?

A discretionary mutual fund (DMF) is an entity structured as a mutual company, which pools funds contributed by members that is used to pay claims. Some of the sectors using DMFs include hospitality, agriculture, trades, churches and other charitable organisations, sporting clubs and other community-based activities.

A difference between discretionary mutual funds and traditional insurance is that the fund has discretion to decline, partially pay, or fully pay any claim.

Why do some people look for alternatives to traditional insurance?

Alternative risk transfer solutions are worth considering on the part of entities or buying groups that face gaps in the traditional insurance market for the following reasons:

  • Need cover for hard-to-place risks
  • Seek niche or tailored solutions that offer wider range and/or more flexibility
  • Find cost of insurance is a problem
  • Want more oversight and control of their risk exposure and protection.

Program Content

  • Overview of why people seek alternatives to insurance
  • Examples of insurance alternatives and who they are suitable for
  • General financial services regulation and licensing refresher
  • Licensing of miscellaneous financial risk products
  • What Discretionary Mutual Funds are and how they ‘work’
  • Conduct and disclosure obligations applicable to MFRPs
  • Industry Codes of Practice – BCCM and NIBA
  • Introduction to advising clients, providing quotes, and handling claims

Learning Outcomes

What you will learn

Who is this course for?

Units of Competency


Recognition of Prior Learning


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Frequently Asked Questions