It was drinks all round for the industry last week as March 11 brought with it the long-awaited, much-dreaded and debated Financial Services Reform Act (FSRA). But there was a more poignant side, too. March 11 signalled the end of an era for insurance intermediaries, particularly some of the smaller players, with many unable to continue operating from that date.

National Insurance Brokers Association (NIBA) CEO Noel Pettersen told members they should be proud of what they had achieved through the two-year lead-up to the new regime. “We are celebrating the start of a new professional era for insurance brokers,” he said.

Warning of more FSRA-related issues ahead, such as the compensation arrangements for loss in the financial sector, he said NIBA “supports the continuation of professional indemnity insurance as the most effective method for brokers and we’ll continue to work with the Government on this”.

And he reminded brokers that much had been achieved for them by NIBA, with the preservation of the title “broker”, the decision to apply the requirements for “retail” selling procedures to domestic products only and “having our say in a large number of small but important details of the FSRA legislation”.

Ross Cameron, Parliamentary Secretary to the Treasurer, was reflective when the start date finally arrived. He said in a statement the date was an historic moment for both the industry and consumers.

Hinting that surgery to trim the Act’s more unfortunate features contained in thousands of pages of regulations will have to happen, he said: “With any new regulatory framework, it takes some time and practical experience for compliance systems to be refined, and FSRA is no exception.

“As such, the Government expects the Australian Securities and Investments Commission will approach administration of the new arrangements in a flexible, sensible and pragmatic manner.”