Advisers and brokers selling life insurance outside superannuation funds will be exempt from the Australian Securities and Investments Commission’s (ASIC) proposed rules on conflicted remuneration.

ASIC has released a consultative paper on the topic, describing how it will enforce regulations in the Future of Financial Advice reforms.

Conflicted remuneration rules will apply to advisers selling life insurance within super – either a group policy or to an individual fund member.

They will not be allowed to accept payments that may influence the client’s choice of product, including upfront commissions and trails, plus volume-based payments from platform operators to licensed dealer groups.

ASIC will also ban gifts worth more than $300, including regular lunches and trips to events, although the supply of business equipment is exempt.

“The purpose of this guidance is to help the industry understand the practical operation of these provisions and how ASIC will administer them,” ASIC Commissioner Peter Kell said.

“We will focus on the substance of the payment or benefit rather than what it is called – renaming a banned commission won’t change its substance.”

Submissions on the consultative paper close on November 9, with a regulatory guide to be released next February.