The general insurance carve-out in the Future of Financial Advice (FOFA) legislation needs greater clarity, the National Insurance Brokers Association (NIBA) says.

It told the Senate inquiry into FOFA amendments that the carve-out – which means insurance is excluded from regulation intended for financial planners – needs further changes to ensure that when personal advice is given on more than just general insurance, the insurance advice is not included in FOFA obligations.

This issue has been dealt with in the best-interests duty and conflicted remuneration sections of the legislation, but not the section dealing with prioritising clients’ interest.

The association also wants changes relating to consumer credit insurance, which can affect life insurance. It says bank advisers get special treatment compared with other advisers.

NIBA says life insurance without an investment component should be treated in the same way as general insurance.