All brokers and life insurance advisers will still have to apply the “best interests” duty when giving scaled advice.

In a new Australian Securities and Investments Commission (ASIC) consultative paper on the topic, the regulator is proposing all the requirements of either the full or modified best interest duties will apply.

ASIC proposes scaled advice can be limited, but it must meet all legal obligations in providing personal advice.

The regulator accepts it is possible to provide less complex advice in a way that meets the requirements of best interests and the laws relating to providing advice.

This includes a fact-find process, statement of advice and a product disclosure statement if a particular product is recommended.

Online providers of scaled advice will need to meet the same obligations as when the client meets an adviser face-to-face.

ASIC is suggesting licensees look at a filtering process to determine whether scaled advice can be delivered online or the information needs to be delivered through an adviser or broker.

Submissions on the paper must be sent to ASIC by September 20, and the regulator hopes to release a regulatory guideline on the topic in November or December.