ACIL looks into NIBA's post-Quality of Advice Review actions

ACIL looks into NIBA’s post-Quality of Advice Review actions | Insurance Business Australia

Insurance News

ACIL looks into NIBA’s post-Quality of Advice Review actions

Advice issued to the association

Insurance News

By
Roxanne Libatique

The Australian Consumers Insurance Lobby (ACIL) has started a comprehensive inquiry into the National Insurance Brokers Association’s (NIBA) actions in the wake of the Australian Securities and Investments Commission’s (ASIC) Quality of Advice Review.

The Quality of Advice Review aims to improve the accessibility and affordability of quality financial advice.

ACIL’s findings

In a statement, the ACIL reckons whether NIBA used the Quality of Advice Review to backtrack on prior commitments, raising concerns about the association’s ethical conduct throughout the review process.

ACIL commented that it was prudent for NIBA to wait for the review’s conclusion to finalise the code. However, it found no evidence suggesting that the association exploited the review’s outcome to weaken the code’s impact. It further found that the updated remuneration disclosure requirements in the 2022 Insurance Brokers Code of Practice offer improved consumer benefits than the 2014 version.

The consumer lobby advised NIBA to improve its communication to mitigate misunderstandings.

“Ideally, NIBA should have clearly communicated its intent to amend the code both at the time of the decision and during the review,” ACIL said.

ACIL discussed the matter with NIBA, which demonstrated transparency and cooperation, clarifying that the code’s modification was driven by member feedback following its release. Regarding the timing, NIBA said it made the decision before the review concluded but deferred its decision to accommodate potential further changes based on the review’s findings.