The next wave of advice reforms must “strike the right balance” to ensure better consumer outcomes and affordability, the National Insurance Brokers Association says.

As reported yesterday, Financial Services Minister Stephen Jones has provided more detail on the looming changes, which include creating a new class of advisers providing “simple” assistance with matters such as insurance and other financial products.

“NIBA is pleased to see the government progressing the Quality of Advice Review reforms, recognising the vital role that advice plays in protecting consumers and businesses,” NIBA CEO Richard Klipin said.

“We look forward to reviewing the draft legislation to ensure the reforms strike the right balance between robust consumer protection and the delivery of accessible, high-quality advice.”

The federal government is developing exposure draft legislation for public consultation after flagging the simple advice model at the end of last year in response to the Quality of Advice Review.

The move is part of the second phase of advice reforms under the Delivering Better Financial Outcomes package, which includes modernising financial advice laws.

NIBA says it wants to assess how the reforms will affect brokers and the broader general insurance industry. “Understanding the practical implications of these reforms will be essential to ensure they achieve their intended objectives without unintended consequences for consumers or the broking profession,” the association said.