Law change won't redraw boundaries
Thursday, March 23rd 2017, 10:05PM
Insurance product recommendations currently offered outside the scope of the Financial Advisers Act will continue to fall outside the regulatory net once the law is rewritten.
The Financial Services Legislation Amendment Bill removes the distinction between class and personalised advice.
It also clears the way for advice to be offered online by robo providers.
But an MBIE spokeswoman said it would not redraw the boundaries.
She said services such as Life Direct, which allows consumers to make comparisons between insurance providers, and ANZ’s online life insurance quote tool, which takes some basic information to determine the benefits and cover levels available, could still operate as they were.
Both are considered to be no-advice information-only services.
“The draft bill is consistent with the current regime in terms of what constitutes financial advice,” she said.
“This includes making a recommendation or giving an opinion about acquiring or disposing of a financial advice product, and excludes the provision of factual information.”
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