The Australian Securities and Investments Commission (ASIC) is seeking feedback on proposed reforms related to advice fee consents and independence disclosures.

It wants submissions on the likely compliance costs, potential effect on competition and other possible impacts from the reform proposals made by the Hayne royal commission.

Under the recommended changes for independence disclosure, financial advisers, including insurance brokers, would be required to provide clients with a written statement “explaining simply and concisely why the adviser is not independent, impartial and unbiased.”

At present the Corporations Act has no provisions making it mandatory for a financial adviser, AFS licensee or authorised representative to disclose to clients that they are not independent.

The Act only restricts them from using certain words such as independent, impartial and unbiased in connection with their businesses.

The National Insurance Brokers Association (NIBA) says the measure could affect the industry.

“We are looking closely at this paper in consultation with our legal adviser,” CEO Dallas Booth said. “At this point all we can say is that the legislative instruments that deal with independence disclosure apply closely to general insurance brokers. But we are giving this paper a great deal of attention.”

Closing date for submissions is April 7.

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