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Informed Consent: What It means for insurance professionals and why it matters now
The landscape for insurance brokers in Australia is shifting, with new informed consent obligations introduced by the Australian Securities & Investments Commission (ASIC) taking effect from 10 July 2025.
These obligations, targeted specifically at brokers who provide personal advice to retail clients, represent a fundamental change in how commissions are disclosed and approved.
Importantly, they are distinct from the Insurance Broker Code of Practice reforms around broker remuneration and disclosure.
This article breaks down what’s required under the new ASIC regulations, addresses key areas of confusion, and clarifies how they differ from obligations under the Code.
What Are the New ASIC Requirements?
From 10 July, brokers who provide personal advice to retail clients must obtain informed consent before receiving a commission or placing cover. This applies where:
- Personal advice is provided (i.e. advice tailored to the client's individual circumstances)
- The client qualifies as a retail client (typically individuals or small businesses under prescribed thresholds)
- The product is a general insurance, certain life insurance, or consumer credit insurance product
Before any commission is received, brokers must clearly disclose the following:
- The insurer's name (if known)
- The commission rate or range
- The frequency and duration of commission payments
- The nature of services provided in relation to the product
- A statement explaining that this consent is required by law
Get confirmation of a client's consent
Once confirmation of a client's consent has been provided, it can't be withdrawn. However, the consent must be explicit and informed.
Silence, inaction, or payment of an invoice do not count as consent. It must be documented - either in writing, via recorded verbal agreement, or through a secure digital process - and retained for no less than five years.
How Is this different from obligations required by the Insurance Brokers Code of Practice?
It’s essential to note that these ASIC requirements are separate and additional to disclosure obligations under the Insurance Brokers Code of Practice.
Under the Code:
Brokers must disclose the actual dollar amount of commission received on retail products when providing personal advice.
This disclosure is made after the product recommendation and forms part of transparent client reporting.
By contrast, ASIC’s informed consent obligations require a prior step: brokers must disclose a range of commission and seek client approval before any commission is received - even if the product has not yet been finalised.
Neither requirement replaces the other. Brokers who are Code subscribers must comply with both.
Why this matters
These reforms are part of a broader push for enhanced consumer outcomes following the Hayne Royal Commission and Quality of Advice Review.
ASIC’s position is clear: if a broker is being paid by an insurer while acting in the client’s interest, that potential conflict must be addressed transparently, with the client’s full knowledge and consent.
Failure to obtain informed consent will render the commission conflicted remuneration, which brokers are prohibited from accepting under the law.
Practical Implications for professionals
According to compliance experts and industry leaders, brokers must provide personal advice considering their specific circumstances and making tailored recommendations based on their financial situation, objectives, and needs.
Retail client identification is key. Brokers must start every advice process by confirming whether the client meets the retail client definition.
Mapping the client journey is critical to identifying when and how informed consent is obtained.
Separate consent documents may be preferable, rather than embedding consent in broader advice or onboarding materials.
Standardised processes across AR networks are essential to ensure license holders can demonstrate compliance.
Renewals are excluded from the initial implementation - provided the original informed consent is on record and the commission range remains unchanged.
If a broker cannot obtain consent, they cannot lawfully accept the commission - and must either shift to a fee-for-service model or forgo remuneration.
Supporting brokers through the transition
Industry bodies such as NIBA are actively engaged with ASIC and the government on broker concerns and have launched education campaigns, webinars, and forthcoming guidance materials. Meanwhile, ASIC’s Information Sheet 292 offers detailed FAQs and examples.
This is a compliance obligation - but it also represents a chance for brokers to lead with transparency and professionalism. Embedding informed consent into the advice process can build trust, differentiate service, and reinforce the broker’s role as the client’s advocate.
What you should do now
- Review your client engagement processes and confirm where personal advice and retail clients intersect
- Train your staff to distinguish between general and personal advice and apply the appropriate consent requirements
- Develop or adopt a standardised informed consent template that includes all mandated disclosures.
- Ensure clear documentation and recordkeeping practices that align with ASIC’s five-year retention rule
- Engage legal or compliance advisers if unsure of application to specific client segments (e.g. strata, commercial motor, fleet).
How ANZIIF can help
To support the transition, ANZIIF has released a practical Informed Consent Checklist to help you assess and strengthen your current processes.
We are also hosting an expert-led webinar: Informed Consent: What It Means for You and Your Clients on 3 July 2025
This session will clarify key obligations, explore emerging best practices, and help your team address common concerns with confidence.
Extend Your Learning
To support long-term capability, ANZIIF offers a suite of Skills Units focused on compliance and professional broking standards:
BR30002-20: Manage changes to a broking client’s insurance program
BR30003-20: Prepare new submissions for new insurance broking business
BR30011-20: Deliver professional insurance broking services
BR30012-20: Provide advice in insurance broking
BR30013-20: Compliance requirements for brokers
Our Recommendation: Prepare Now
Clients are becoming more aware of their rights, and regulators expect clear, proactive action. Don’t wait. Use the checklist to review your processes, seek advice where needed, and register for the webinar to ensure your business is ready.
By getting Informed Consent right, we’re not only meeting regulatory expectations - we’re reinforcing our professionalism and building stronger, more transparent client relationships.
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