With less than 12 months until the Financial Services Reform Act is up and running, insurers and brokers are so concerned about completing so-called “wordy” licensing agreements they are hiring legal providers for advice.

Australian Securities and Investments Commission (ASIC) Director Licensing & Business Operations Pauline Vamos told Sunrise Exchange News that legal professionals were using “scare tactics” to try to squeeze more money out the financial services sector.

“The requirements are coherent and the online licensing system has been designed so there is a direct link between financial service providers and ASIC,” Ms Vamos said. “There is no need for providers to seek external advice.”