Insurance brokers will find it difficult to avoid any new regulation surrounding fees for service, according to a regulatory compliance expert.

“Regulators are looking at products provided to mums and dads, and it’s likely that insurance would be captured,” Australasian Compliance Institute (ACI) CEO Martin Tolar told insuranceNEWS.com.au.

He was commenting on a new study from the University of Technology Sydney that finds constant change in the regulation of the financial services sector is deterring companies from going beyond adopting the minimum compliance standards.

The study involved 526 business respondents, including 242 drawn from financial services and risk insurance. It says a clear, consistent approach from regulators is key to maximising industry compliance.

The benchmark report – in which the ACI acted as a research partner – says the priorities of industries and regulators converge in a stable regulatory environment.

But it says the raft of “excessive change” in regulations following the global financial crisis means organisations only adopt the minimum standards.

“When there is constant change in the regulatory landscape, such as the financial services industry, organisations are less willing to make that investment,” Mr Tolar said.

The study coincides with the release of a Federal Treasury proposal to impose new data collection and reporting requirements for general insurance brokers. [See REGULATORY]

Despite the burden on the financial services sector in recent years, the majority of companies claim to go beyond the minimum regulatory standards.

The study highlights cost, design clarity, benefit clarity, adequate consultation and adequate implementation periods as crucial to the success of new regulations.

See ANALYSIS.