NIBA provides submission to Quality of Advice Review Terms of Reference

The National Insurance Brokers Association (NIBA) has provided a submission on the Treasury’s Quality of Advice Review Draft Terms of Reference.

Written on 16 February, 2022
Allyssa Hextell

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 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 not considered 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, 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.