What should Personal Advice look like?

The Australian Securities and Investment Commission (ASIC) has released a very important Consultation Paper,
Promoting access to affordable advice for consumers on the issue of personal advice, and what can be done to facilitate the provision of quality advice in a cost effective manner.

National Insurance Brokers Association (NIBA) CEO, Dallas Booth believes that this consultation goes to the heart of what ‘personal advice’ should look like, and what regulatory requirements should exist in this area.

He said, “Many insurance brokers have said in the past that they are reluctant to operate under a personal advice model for retail clients, because of the cost and complexity of regulatory obligations in this area. This current consultation gives insurance brokers and NIBA the opportunity to indicate what is needed in this area, in order to allow insurance brokers to advise and assist their clients without excessive and expensive regulatory obligations.”

“NIBA will give very careful consideration to his consultation, and will respond to ASIC in due course. We welcome comments and suggestions from members on this topic.”

ASIC is keen to receive feedback on the impediments to providing affordable and limited advice that ASIC and industry are able to address. Feedback on industry’s experience in providing limited, digital and strategic advice is of particular interest.

ASIC Commissioner Danielle Press said, “Good-quality affordable personal advice may help consumers make better financialdecisions, especially during times of heightened vulnerability. We welcome feedback from the financial advice industry andothers with an interest in making advice more accessible to consumers.”

“Your feedback is vital for us to better understand the impediments on the supply side. It will help us determine whatmeaningful steps we can take to help industry better provide good-quality affordable advice that meets consumers’ needs,” Press said.