The World Federation of Insurance Intermediaries (WFII) is seeking changes to new US financial legislation amid concerns it will unnecessarily increase costs in the international broking sector.

The federation’s world council discussed the legislation and other regulatory issues at a meeting in Sydney last week, National Insurance Brokers Association CEO Dallas Booth told insuranceNEWS.com.au.

The Foreign Account Tax Compliance Act (FATCA) comes into force on July 1.

Mr Booth says it unnecessarily involves insurance in measures aimed at investments, tax avoidance and money laundering.

“That is a real concern and is an area where regulation and proposals on the national level have international repercussions,” he said. “It is just creating massive compliance headaches and adding cost burdens to the sector for no outcome.”

An intergovernmental agreement between the US and Australia on FATCA was announced at the recent G20 finance ministers’ meeting in Sydney.

“We are pursuing details of that intergovernmental agreement so we can understand what the implications of that would be for Australian brokers,” Mr Booth said.

Representatives from Singapore, Malaysia, Hong Kong and New Zealand also attended the two-day WFII annual meeting, held in Sydney for the first time.

“It was very useful for the delegates from the Asia-Pacific region to attend and share their experiences, given the extent to which insurance markets are developing in the Asian region,” Mr Booth said.

The WFII – launched in 1999 – represents member groups from South Africa, Asia-Pacific, Europe, Latin America and North America, and aims to give the intermediated sector a stronger voice on international issues.