The Insurance Council of Australia (ICA) supports proposed changes to the Future of Financial Advice legislation that clarify scaled advice requirements.

It says the current definition of scaled advice does “not give general insurers the certainty required to incorporate scaled advice into their business models”.

“We therefore support the Government’s goal of reassuring licensees that clients and advisers can agree on the scope of the advice to be provided,” ICA says in its submission to Treasury on the planned amendments.

ICA wants the best-interests duty general insurance exemption applied to scaled advice, to allow clients to agree on the subject matter of advice with providers.

The council also strongly supports the deletion of the “catch-all” provision in the legislation.

“The short form of the best-interests duty applicable to general insurance products is spelled out in the Corporations Act itself, rather than in the subsidiary regulation.”