Put it in writing. That’s the message to brokers from the Australian Securities and Investments Commission (ASIC).

ASIC Senior Executive Leader Financial Advisers Deborah Koromalis says quality advice and good record-keeping are key to brokers avoiding regulator scrutiny.

“There is no better way to get on the record the advice you have given, and avoid situations where people could say they didn’t realise.”

Ms Koromalis was speaking at the National Insurance Brokers Association Convention in Sydney last week.

She told delegates that carefully tailored advice would “help you and do justice to your clients”.

“We are seeing more and more issues of product manufacturers passing liability on to those that advise,” she said.

Ms Koromalis says many consumers don’t understand the finer details of insurance products – a fact that underlines the importance of quality broker advice.

“The difference in the level of understanding is phenomenal.”