The financial services sector appears united in its support of the package of refinements for the Financial Services Reform Act (FSRA), with all major industry associations signalling their intention to be a part of the consultation process.

National Insurance Brokers Association CEO Noel Pettersen says the refinements are “a great step in the right direction”.

“The proposed refinements are very broad, but from what we’ve seen so far they will deal with many of the concerns we have voiced since the FSRA was first put in place,” he told Sunrise Exchange News. “We’re delighted that Mr Pearce has done the hard work consulting and listening to the industry to understand the original intent of the legislation as well as its everyday impact on industry professionals.”

Brokers also praised any change that enabled them to more easily use their expertise in advising retail clients on insurance matters, he said.

The Insurance Council of Australia says the proposals will allow the industry to “deliver products more efficiently to consumers without any dilution of protective measures”.

Executive Director Alan Mason says Mr Pearce has listened to industry feedback on the Act and recognised the need to make some changes.

He says the refinements will ensure information and advice is more easily accessible.  “For example, product disclosure statements which tell the consumer what is covered in an insurance policy can run up to 90 pages, which few people would bother to read.”

Mr Mason says a greater distinction between personal and general advice will allow insurers to better help consumers who make inquiries over the phone.  If advice is deemed “personal”, then the person issuing the advice needs to hold an Australian financial services licence. This issue has presented problems for insurers’ call centres.

The peak body supporting financial planners, the Financial Planning Association (FPA), has voiced its support for the proposed refinements, saying they provide “a good basis for consultation in the coming weeks”.

CEO Kerrie Kelly says the FPA has engaged in “constructive dialogue” with the Government and ASIC about the “workability and unintended consequences of FSR”.

“Our goal is to ensure that the legislation does benefit the consumers whom it sets out to protect. Australians must have access to clear information which is relevant to their needs and to advice which is affordable,” she said.

“However, unnecessary or over-burdensome regulations (such as the existing statement of advice requirements) increase the cost of providing financial advice, putting it beyond the reach of ordinary Australians.”

The Investment and Financial Services Association (IFSA) says the proposals present “an excellent and comprehensive set of reforms in a comparatively short timeframe”.

“Consumers have been overwhelmed by the amount of paper-based information presented to them and will be relieved to be able to have relevant information far better tailored for their needs,” IFSA CEO Richard Gilbert said.