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Insurance
Brokers provide advice and
access to Financial Services Industry products to meet the risk
insurance needs of individuals and businesses. While most of us refer to
our insurance “agent” or “broker”, these labels are now incorrect. In
fact, under the new Financial Services Regulations (FSR) implemented on
11 March 2004, most insurance brokers are now known as Authorised
Representatives or an Australian Financial Services Licence holder. Some
of these licensees still call themselves “brokers” while others are
clearly product manufacturers or distribution businesses.
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Your Protection ....
 Authorised
Representatives approved by the Australian Securities & Investment
Commission (ASIC), to give insurance advice are what we
previously referred to as insurance agents or insurance brokers. Then
within this group there are Authorized Representatives approved to
give advice in all insurance including life and fire & general. Others
may be authorized only to give advice in life risk insurance and
financial planning. Further, some authorizations may only allow
“general advice” to be given while others permit both “general and
personal advice”.
The whole
Financial Services industry is complex and heavily regulated by the
Federal Government to ensure the maximum protection for the Australian
public. Therefore, by inspecting the Financial Services Guide (FSG) of
the Licensee or Representative you are able to ensure that the person
you are dealing with is permitted to give the relevant advice in your
area of need. Individuals or companies who provide insurance services
in one form or another must be licensed to do so. If you want personal
advice in selecting what insurance type, amount, and inclusive
benefits you need, then that advice may only be provided in a written
Statement of Advice. This must take into consideration your
objectives, needs and financial circumstances.
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