The National Insurance Brokers Association (NIBA) is still reviewing the Australian Securities and Investments Commission’s (ASIC) conflicted remuneration regulatory guide.

“Most of the regulations are not relevant to brokers due to the substantial carve-outs,” NIBA CEO Dallas Booth told insuranceNEWS.com.au.

“We will be reviewing the guide to ensure there are no ‘nasties’ that will affect the general insurance industry.”

A monetary or non-monetary benefit, such as a commission, is not considered conflicted remuneration for general insurance advice, the ASIC guide says.

But if brokers advise on other financial services products at the same time, the remuneration ban will apply.

ASIC has expanded what is considered conflicted remuneration and is looking at equity arrangements that include profit-sharing or dividends. It says it will be up to practices to prove such payments are not conflicted.

The regulator has also raised the issue of advisers buying practices under the “buyer of last resort” procedure.

“In some cases these arrangements will be structured in a way that could reasonably be expected to influence the advice given by the representative and would therefore be conflicted remuneration,” the guidelines say.

“The Government is consulting on regulations that will specify when such arrangements are excluded from the conflicted remuneration provisions.”

ASIC will update its guide when the Government has reached a position on practice sales.