The National Insurance Brokers Association (NIBA) has announced changes to the remuneration disclosure requirements in the Insurance Brokers Code of Practice. The modifications to Section 6.1 align the Code to recommendations made by the recent Quality of Advice Review.
“The change requires brokers to disclose commissions to Retail Clients as defined in the Corporations Act,” said NIBA president Gary Okely (pictured above) in a message to members shared with Insurance Business. “This will provide consistency with the government’s proposal and avoid additional administrative complexity for brokers and confusion for their clients,” he said.
The new Section 6.1 (a) of the Code will now ask brokers to provide retail clients with information about any remuneration, including commissions, or other benefits.
“This differs from the current obligation which requires brokers to disclose commissions to all individual and small business clients regardless of whether the client is a retail or wholesale client,” said Okely.
NIBA’s message said members will soon receive an updated version of the Code.
“This version will also include a number of small changes that were released for consultation last month that seek to clarify the intent of certain provisions and reduce complexity,” said Okely.
