The industry has had a mixed, but mostly positive, response to the Federal Government’s new regulation refinement proposals.

The National Insurance Brokers Association (NIBA) says several of the proposals will relate to insurance brokers, and the association will work with Treasury to ensure the needs of its members are met.

CEO Noel Pettersen says some of the proposals, particularly the sales recommendation aspect, will need careful consideration.

The Financial Planning Association (FPA) says it welcomes most of the proposals, but it is disappointed superannuation has been excluded from the materiality proposal.

“The consultation process means we have an opportunity to state our case and convince the Government why Australians need advice on superannuation, as well as other financial matters,” CEO Jo-Anne Bloch said.

“And those with small superannuation account balances should not be excluded. The Government is aware of our concerns, and has stated that this is a journey, taking one step at a time.”

Like NIBA, the FPA also wants clarification on the financial product sales recommendation before making comment.

Despite the FPA criticism, Ms Bloch says the detailed consultation process put in place by Treasury has been an outstanding example of industry working with policymakers.

Investment and Financial Services Association Deputy CEO John O’Shaughnessy says the new proposals will cover deficiencies identified in the review following the financial services reform process and will update the way business is conducted.
 
He says legislation is catching up with the consumer preference for e-commerce, making it easier for financial services providers to contact clients.

“Overall, the proposals will be beneficial for consumers and for business efficiency, and we thank the Parliamentary Secretary for the progress made thus far and for the co-operative approach taken to working through these issues.”