The Australian Securities and Investments Commission’s (ASIC) move to label brokers as “insurance advisers” could cause problems over the best-interests duty regulations.

An ASIC spokesman told insuranceNEWS.com.au last week insurance brokers are “a type of adviser”.

“The term insurance adviser was written that way to keep it as broad as possible as opposed to specifying a certain type,” he said.

Minter Ellison Partner Richard Batten told insuranceNEWS.com.au the change of term shouldn’t cause problems as general insurance had been given less onerous conditions to meet the best-interests duty.

“But because the regulations refer to advisers, the general insurance industry should treat these documents with caution,” he says.

“In those terms ASIC is talking about the whole (financial services) market.”

Mr Batten says there are steps insurance brokers will have to undertake to make sure they meet the best-interests duty as it is less of a burden than the financial planning requirements.

National Insurance Brokers Association CEO Dallas Booth says the term is consistent with the broader approach to giving advice.

“It is not an issue with us as the Future of Financial Advice reforms refer to product if you are giving life insurance advice,” he told insuranceNEWS.com.au.

“The best-interests duty has limited application to general insurance brokers so the use of ‘insurance adviser’ is not of huge concern.”