The National Insurance Brokers Association (NIBA) wants feedback from professional indemnity (PI) specialists as it consults with the Federal Government on proposed changes from the Quality of Advice Review. 

NIBA says the feedback will look to identify and address any “unintended consequences of the recommendations” outlined from the review, including the potential impact of changes to Statement of Advice (SOA) requirements on the cost of PI insurance for financial advisers and AFSL holders. 

The review recommends changing current requirements that mandate advisers to provide clients with an SOA to instead require advisers to maintain a complete record of advice provided and deliver written advice if requested by clients. 

Under the changes, providers will be required to inform their clients that they are entitled to a written record of advice before or when the advice is being given.   

Reviewer Michelle Levy says the recommendation aims to help alleviate “universally criticised” issues caused by complex and lengthy SOAs, and simplify client advice.    

“Clients should be asked whether they would like written advice before or at the time the advice is provided and a request for written advice is required to be made before, or at the time the advice is provided,” the review said.   

NIBA says members who specialise in the field and wish to contribute to the association’s response to Treasury should provide feedback to info@niba.com.au