Individuals who sell general insurance products cannot call themselves financial planners or advisers under the new Corporations Amendment Bill.

The terms will apply only to those providing personal advice on designated financial products.

The designated products list excludes general insurance except for sickness and accident products, and consumer credit insurance.

To use the designation planner or adviser, an individual must hold an Australian financial services licence. General advice providers cannot use the terms.

The bill also prohibits the use of terms such as financial advising agent or financial planning adviser.

The bill will help the public identify genuine financial advice providers, Financial Services Minister Bill Shorten says.

“These reforms will enable consumers to know who to trust with their financial affairs and build consumer confidence in the financial product advice industry.

“By making it an offence for a person to falsely represent that they are a financial planner or a financial adviser, this legislation will make it easier for the corporate regulator to take action against product spruikers and other individuals who seek to deceive Australian consumers.”

The Association of Financial Advisers has welcomed the bill as an important step towards recognition of its members’ role.

“We believe this legislation is good for financial advisers and also for the consumers who rely upon financial advice,” CEO Brad Fox said.

“Consumers deserve to have clarity with respect to who they are seeking advice from.”

The legislation takes effect from July 1.