Informed consent is a regulatory requirement that ensures clients are fully informed and agree to how insurance brokers are remunerated when personal advice is provided.
At its core, informed consent is about transparency. It means clients are made aware – clearly and upfront – of the commission a broker may receive from the insurer for arranging cover, and what services are provided in return. Consent must be given before a policy can be placed, renewed or altered if personal advice is being provided and commission is being received.
Whether you’re a strata manager, property owner, committee member or part of an Owners Corporation, the Resolute team is here to guide you through the informed consent process and answer any questions.
Why informed consent matters
For many years, brokers have received commissions from insurers as payment for services, including policy placement, advice and ongoing support. The informed consent process doesn’t introduce new costs – commissions are built into the premium and paid by the insurer – but it does require that this arrangement is disclosed and agreed to by the client.
Informed consent supports
- Clarity Giving you a clear understanding of the commission arrangement between Whitbread and the insurer, including any third-party involvement where applicable
- Control Empowering you to choose how you engage with us, whether through a commission-based model or an agreed fee-for-service
- Confidence Ensuring our approach meets evolving legal and ethical standards, so you can proceed with peace of mind
- Commitment Reflecting our dedication to open communication, transparency and doing the right thing by every client we serve
Summary
- Informed consent is a regulatory requirement
- The process is about transparency and clarity, not additional cost
- There are no changes to the insurance process in that brokers have always received commission
- The only difference is that the client now needs to provide consent for the broker to receive commission
Resources
Frequently asked questions (FAQs)
What is “informed consent” in the context of financial services and advice?
Informed consent refers to a person’s voluntary agreement that allows an insurance broker to obtain quotations that include commission as part of the premium. It requires that the client:
- Receives clear and balanced information
- Is given adequate time to consider their decision
- Is not subject to coercion or manipulation
Does “informed consent” have an effect on my insurance premium?
Not necessarily. Insurance companies have been paying commission to brokers for over 100 years. The only difference now is that brokers require the consent of the client in order for the insurance company to pay the broker commission.
Is it sufficient to provide verbal consent over the phone to Resolute?
Verbal consent is acceptable from the client however the formal consent provided must eventually be confirmed in writing.
Is informed consent a one-off process?
No. Informed consent must be reaffirmed when something material changes (for example, a change in commission or a change in insurer, etc).
How should informed consent be documented?
Robust documentation should include:
- A dated record of the information provided
- Method of delivery (verbal, face-to-face, online, written)
- Client’s confirmation (signature, verbal affirmation, digital acceptance)
- Any disclaimers, waivers, or refusals
What happens if informed consent is not obtained from the client?
The legislation is very clear; without consent from the client then no commission can be paid to the broker. The Resolute approach will be to provide the client with alternative options in relation to the provision of advice. We appreciate that these changes may prompt new questions so our staff are well equipped to guide you through the process.
Do I have to sign anything?
In most cases, yes. Signing or providing electronic confirmation ensures there’s a record that you:
- Received the required information
- Had an opportunity to ask questions
- Understood and accepted what was discussed
If you’re unsure or feel pressured, you don’t have to sign. Just ask for more time or advice.
Can I change my mind after giving consent?
Before commission is paid
Yes. A client can revoke consent if they have not yet proceeded with the product or the advice has not yet been acted upon.
After commission is paid
Generally, no. Once the broker has lawfully earned the commission through proper disclosure and informed consent, the client usually cannot retroactively withdraw that consent.
Can someone else give consent on my behalf?
Only if they have legal authority, such as:
- A Power of Attorney
- Legal guardianship
We will need to sight and record these documents
Is giving consent the same as agreeing with the advice?
Not exactly. Giving consent only means that you understand and accept that the broker will receive commission from the insurer. You are not required to accept any recommendation. You can seek a second opinion, defer your decision, or ask for more information.
What protections do I have if I feel I’ve been misled?
If you believe you gave consent without understanding the full picture, you can:
- Lodge a complaint with Resolute
- Contact AFCA (Australian Financial Complaints Authority)
- Seek legal or financial advice independently