NEWS / Representation
WE ARE YOUR VOICE!
The following is an overview of some of the things NIBA has been examining on behalf of members.
Treasury Quality of Advice Review
NIBA has provided a submission to the Treasury’s Quality of Advice Review draft Terms of Reference. The draft Terms of Reference, which were released late last year, highlighted the Quality of Advice Reviews’ focus on issues affecting the affordability and accessibility of advice. In particular, how changes to the regulatory framework could better enable the provision of high quality, accessible and affordable financial advice. Most notably for brokers, the Terms of Reference confirmed that the review would consider issues such as the concepts of general and personal advice, safe harbour provisions, disclosure requirements and the exemption to the ban on conflicted remuneration for general insurance brokers. After consulting with members, NIBA identified no major issues with the Reviews’ draft Terms of Reference, however, took the opportunity to encourage a holistic review of the advice sector. NIBA’s submission noted that previous reviews into various aspects of the provision of advice had neglected to consider issues relating to the provision of insurance and risk management advice. The submission argued that given the increase in the rate of under-insurance in many parts of Australia, and the difficulties consumers face when trying to obtain appropriate insurance, it is vital that risk advice is considered under the general umbrella of financial advice, not just in relation to recommendation 2.6 of the Royal Commission. In addition to providing a submission, NIBA continues to engage with Treasury and key stakeholders within government,
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enlisting the help of our members to brief Federal MPs on the role insurance brokers play in ensuring all Australians have access to quality risk advice.
ALRC Review of Financial Services Legislation
Last month, NIBA provided a submission to the Australian Law Reform Commission’s interim report on the Review of the Legislative Framework for Corporations and Financial Services Regulation. The report, which was tabled in Parliament late last year, seeks feedback on 16 proposals, and eight questions for reform. The report also made several recommendations relating to relatively technical matters, which the Government could begin implementing immediately.
NIBA’s submission generally supported the recommendations made by the ALRC, however, noted that a number of policy issues raised in the report, were also the subject of Treasury’s Quality of Advice Review. NIBA’s submission also cautioned against a one size fits all approach to financial services arguing that while simplification of the law is required, it should not be to the detriment of an entire industry and that carveouts and exemptions contained within the Corporations Act are a reflection of how varied the financial services market is. To view either submission visit the submissions page on the NIBA website, www.niba.com.au/government-policy/ submissions/
Member feedback required
To support NIBA’s upcoming submission to the Quality of Advice Review, NIBA is working hard to gather success stories from members. This may be a claim that was originally denied by the insurer but through your advocacy and knowing the policy was eventually accepted. Or it could be a time you went above and beyond to assist a client. If you would like to provide an example, please do so in writing to NIBA’s Policy and Research Manager at ahextell@niba.com.au
CONTACT NIBA
As always, brokers who have questions about these or any other government or regulatory matters should feel free to contact NIBA CEO Philip Kewin at: pkewin@niba.com.au
