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General Advice is being adopted more and more as advisers, licensees and insurers look for scalable ways to support consumers who want guidance but may not require tailored recommendations. Despite this shift, the model remains widely misunderstood, with many industry participants still unclear about what General Advice is and what it is not.
Under the Corporations Act 2001, General Advice is defined as financial product advice that does not take into account a client’s objectives, financial situation or needs (s766B). ASIC’s Regulatory Guide 244 reinforces this distinction, outlining the differences between factual information, General Advice and Personal Advice, and confirming that General Advice remains a regulated form of financial product advice designed to improve consumer access to clear, consistent information.
How the General Advice Model Works
The General Advice model focuses on helping clients understand the products and their options in order to be able to make informed decisions about their own insurance needs.
The adviser’s role when operating under this model is to ensure clients clearly understand:
- What life insurance is
- The types of cover available
- How each type of cover works
- Common considerations when thinking about cover levels
- General (factual) differences between insurers and product structures
This approach allows advisers to spend more time in direct conversation with clients answering questions, clarifying concepts and improving understanding rather than undertaking detailed assessments of personal circumstances and preparing tailored advice documents.
Working in Parallel with Personal Advice
- General Advice and Personal Advice serve distinct purposes, yet they operate most effectively when consumers have access to both options:
- General Advice helps raise awareness, build understanding and support simpler needs. And
- Personal Advice remains essential for clients who require tailored recommendations and advice.
Both models are essential to ensure more Australians can access life insurance.
Specialist Licensees Supporting General Advice Adoption
Only a small number of licensees currently specialise in General Advice, and Consilium Advice Australia is one of the few AFSLs dedicated exclusively to this space.
Geoff Byrnes, Compliance Manager at Consilium Advice Australia, has backed the legitimacy and continued growth of the General Advice model, emphasising that its effectiveness comes from operating within a clearly regulated and supervised advice framework. He notes that the model provides more access to life insurance for Australians while maintaining compliance with Australian Financial Services law.
With the industry shifting toward greater recognition of General Advice and its role in addressing the underinsurance issue, Consilium Advice Australia continues to be on the front foot in supporting advisers in adopting General Advice, having long supported the model and its place in rebuilding the risk insurance industry. The group remains focused on strengthening industry understanding of General Advice and protecting more Australians.
