NIBA is pleased to share some positive outcomes relating to mandatory training for financial services professionals and Emergency Services Levy (ESL) in NSW.
General insurance brokers have been completely exempt from requirements designed to lift standards of education and ethics for financial advisers, all detailed in draft legislation put forward by Assistant Treasurer Kelly O’Dwyer late last year.
The victory for insurance brokers comes off the back to two years’ worth of lobbying by NIBA, which argued that general insurance brokers were not responsible for the recent losses suffered due to poor financial advice.
The draft legislation will require financial planners, investment advisers and life insurance advisers to have tertiary-level training, with existing advisers made to undertake transitional training if they are to continue advising.
NIBA CEO Dallas Booth says: “There has been no evidence at all of any systemic poor advice by general insurance brokers at any of the reviews or inquiries that have been held over the past two years.”
“Often, some of our biggest achievements on behalf of NIBA members are what we stop from happening.”
“NIBA will take a strong interest in the new requirements on behalf of members who give advice on life risk products,” Booth adds.
Further to this, the NSW Government has announced that the ESL on insurance premiums will be abolished from 1 July 2017.
Booth says that NIBA is very pleased with the outcome, which is a result of years of lobbying from NIBA, the Insurance Council of Australia and insurance companies.
“New South Wales is the only mainland State that continues to tax insurance policies in order to fund the emergency services,” Booth says.
“This adds significantly to the cost of property insurance, and insurance consumers will benefit greatly from the removal of the levy: the overall cost of property insurance in NSW will reduce by over $920 million as a result of this initiative.”