With licensing now top of mind with most financial services intermediaries – most of whom haven’t yet put their applications in – brokers are still in the dark over some issues. National Insurance Brokers Association (NIBA) CEO Noel Pettersen says “a number of matters” are still being discussed with the Australian Securities and Investments Commission (ASIC), but progress has been slow.

Included in the NIBA list of discussion points is the definition of “arrange”, which Mr Pettersen says covers a wide breadth of activities at present. “It’s just too great at present and needs to be refined,” he told Sunrise Exchange News. “The present guidelines don’t give enough guidance.”

Another sticking point is the definition of personal advice. “The act of collecting personal information shouldn’t necessarily constitute ‘personal advice’, as it does at present,” he said.

The issue of disclosure of back-office costs hasn’t yet been resolved, either. While he acknowledges that ASIC has shown some flexibility in informal comment on the issue, Mr Pettersen says ASIC “hasn’t yet formed an official view”.

Other matters causing concern include the requirement for new licensees to switch across to the new Financial Services Reform Act regime before the commencement date of March 11 next year – a move that would require an alteration to the legislation – and the provision of further advice on the definitions of “personal” and “general” advice.

Mr Pettersen says NIBA is “continuing to engage ASIC” on such issues, and has also written to the Parliamentary Secretary to the Treasurer, Senator Ian Campbell, over the commencement date issue. “We’re still waiting for a response,” he said.