Financial Advice Landscape Set for Further Overhaul
Financial Advice Landscape Set for Further Overhaul
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
Financial industry professionals are bracing for significant changes as new reforms surrounding commission consent in financial advice have moved into effect.
With the successful passage of the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Bill 2024, the sector anticipates a substantial shift in how financial advisories are delivered to retail clients.
This legislation marks a pivotal first step in a series of upcoming financial advice reforms initiated by the federal government. It mandates brokers to obtain consent when charging commissions for personal advice, aiming to foster better transparency and affordability in the financial advice provided.
According to the National Insurance Brokers Association (NIBA), these reforms will play a critical role in ensuring that comprehensive risk advice remains both accessible and affordable across Australia. "We are eager to partner with the government and regulatory bodies to implement these reforms," said a representative from NIBA. "Our focus is to support our members in navigating these changes without compromising the quality of advice they deliver."
NIBA has pledged to work closely with its members throughout the year to facilitate adherence to the new legislative requirements. The organization is set on equipping its members with the necessary tools and guidance to continue offering premium services while ensuring compliance with the latest standards.
Meanwhile, insurers are also gearing up for the next round of reforms. A spokesperson from the Insurance Council of Australia expressed readiness to engage in phase two consultations. "The subsequent phase of these reforms addresses the unmet demand for financial advice among individuals with straightforward financial scenarios," the spokesperson remarked. "We are keen to explore the opportunities this presents."
Stephen Jones, Financial Services Minister, emphasized that the new legislation augments transparency and strengthens consumer safeguards in personal insurance advice. He mentioned that the next set of reforms, slated for development later this year, aims to enhance both the reach and affordability of financial advice across the board.
"Our forthcoming reforms will modernize key aspects of financial advising, including the revision of statements of advice and the best-interests duty. Additionally, changes are set to enable financial institutions to provide what we term 'simple' advice, a valuable addition for consumers with straightforward needs," Jones noted.
It is worth mentioning that the recently passed bill included crucial amendments to rectify draft errors that might have inadvertently banned commissions for brokers providing general advice. Furthermore, it contains a provision allowing individuals to leverage their superannuation accounts to cover costs associated with receiving personal financial advice from independent advisors.
These industry-changing reforms promise to reshape the financial advisory landscape significantly, making quality advice more transparent, accessible, and affordable for all Australians. Immediate and collaborative efforts from industry players are cited as imperative for a smooth transition. As reported by Insurance News Magazine, Assistant Treasurer Stephen Jones has indicated his firm stance against succumbing to populist politics concerning affordability, emphasizing a balanced and well-developed approach to these reforms.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
New Zealand’s latest insurance dispute figures are a timely warning for anyone relying on personal cover to protect their household income. The Insurance & Financial Services Ombudsman Scheme reported that, for the year ended 30 June 2026, health insurance became the largest category of disputes it investigated for the first time, with health disputes up 91 percent and 833 dispute investigations completed across all categories. - read more
Fresh commercial insurance market data is giving Australian businesses a more favourable pricing backdrop, but truck owners should be cautious about assuming broad rate falls will automatically reduce heavy vehicle premiums. Marsh’s Q3 2026 Global Insurance Market Index, released on 21 October 2026, reported a 12 per cent fall in Pacific commercial insurance rates for the quarter, led by property and supported by strong insurer competition and available capacity. - read more
Australia’s fast-growing data centre construction market is opening opportunities for electrical, HVAC, fire protection, cabling, fit-out and commissioning trades, but recent insurance industry discussion suggests the risk settings are not always keeping pace with the work. At a recent Australasian Professional Indemnity Group conference, specialists warned that data centre projects can involve unusual contractual, professional and technology-related exposures, especially where contractors rely on annual insurance programs designed for more conventional building work. - read more
Australia’s life insurance industry has moved mental health cover back to the centre of the affordability debate, after the Council of Australian Life Insurers released its response on 30 September 2026 to the independent review of the Life Insurance Code of Practice. For workers who rely on income protection insurance, the issue is practical: mental health conditions can affect earning capacity just as seriously as physical illness, but changes designed to keep premiums manageable may also alter what is covered. - read more
The 2026 National Truck Accident Research Centre major incident report gives Australian truck operators a useful, if challenging, snapshot of where serious heavy vehicle risk is changing. Released in October 2026 and based on de-identified NTI-insured heavy vehicle major-loss claims, the report points to progress on distraction and fatigue, while also highlighting renewed concern about inappropriate speed and following distance. - read more
When it comes to protecting your vehicle and your finances, car insurance is a crucial investment. In Australia, car insurance helps cover the costs associated with accidents, theft, and other unexpected events on the road. - read more
Choosing car insurance in Australia is easier when you understand what each policy type is designed to cover. Comprehensive car insurance offers broader protection for your own vehicle and other people's property, while third party property cover is more limited and usually focuses on damage you cause to others. - read more
Car insurance is a crucial aspect of responsible vehicle ownership. It provides financial protection against accidents, theft, and other unforeseen events. In Australia, having the right car insurance policy can give you peace of mind on the road. - read more
Agreed value and market value affect how your car may be valued if it is written off or stolen. Understanding the difference can help Australian drivers compare comprehensive car insurance policies more carefully. - read more
Knowledgebase
Exclusion: Specific conditions or circumstances for which the insurance policy does not provide coverage.
No comments yet. Be the first to share your thoughts.