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Informed Consent

Why Australian brokers can't afford to get it wrong

With remuneration disclosure breaches surging 695% in the past year, the stakes for compliance, particularly around Informed Consent, have never been higher.

Since Australia's Informed Consent regulations came into effect on 10 July 2025, the insurance broking industry has been navigating a significant shift in how commissions are disclosed and agreed upon with clients. But the numbers tell a concerning story: many brokers are still struggling to meet their compliance obligations.

The wake-up call: 695% increase in breaches

According to recent industry data, remuneration disclosure breaches jumped from 42 to 334 cases in the last 12 months - a staggering 695% increase. This isn't just a statistic; it's a clear signal that brokers across Australia are falling short of their regulatory obligations.

Whether it's a lack of understanding, inadequate processes, or simply the challenge of managing compliance alongside daily operations, the consequences are real. ASIC isn't taking a lenient approach, and brokers who don't have robust systems in place are exposing themselves to significant risk.

A quick refresher: What is Informed Consent?

The Informed Consent regulations stem from the Delivering Better Financial Outcomes (DBFO) Act 2024. The core requirement is straightforward: brokers must obtain explicit, informed consent from clients before receiving commissions on personal advice related to insurance products, including general, life, and consumer credit insurance.

Key requirements at a glance

Timing matters

Consent must be obtained before the policy is issued, sold, or renewed.

Format flexibility

Consent can be written or verbal, but verbal consent requires a written record that's date and time-stamped.

Client documentation

Clients must receive a copy of the consent document or written record.

Record keeping

All consent records must be kept for at least 7 years, with any variations documented.

Non-compliance consequences

Penalties include substantial fines, operational bans, or suspension / cancellation of your AFS licence.

What must be disclosed?

The 695% increase in remuneration disclosure breaches points to several underlying challenges:

Process gaps: Many brokerages haven't embedded Informed Consent into their standard workflows, leaving it vulnerable to human error or oversight
Documentation failures: Verbal consent without proper written records, or records that lack required date and time stamps
Training shortfalls: Team members who don't fully understand the distinction between personal and general advice, or the specific disclosure requirements
Manual systems: Relying on spreadsheets, emails, and memory rather than automated compliance tools

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry exposed widespread issues with fee disclosure. ASIC's research at the time found that 27% of required fee disclosure statements weren't provided to clients, 35% of renewal notices were missing, and 80% of statements that were provided contained inaccurate information.

These regulations exist to rebuild trust. Brokers who treat compliance as an afterthought aren't just risking penalties - they're undermining the industry's credibility.

How to get compliance right

The good news? With the right tools and processes, Informed Consent compliance doesn't have to be a burden. Here's how to set your brokerage up for success:

Build compliance into your workflows

Make Informed Consent a mandatory step in your client processes, for both new business and renewals. When consent is embedded into your workflow, it can't be skipped or forgotten.

Standardise your documentation

Use consistent templates across your team for all consent-related communications. This ensures every client receives the same clear, compliant information, and makes auditing significantly easier.

Automate where possible

Manual processes invite errors. Automated workflows can trigger consent steps at the right time, generate date and time-stamped records, and ensure nothing slips through the cracks.

Secure your records

With a 7-year retention requirement, you need a reliable system for storing consent documentation. Cloud-based document management ensures records are secure, searchable, and always accessible when you need them.

Create a robust audit trail

Every action related to Informed Consent should be logged and traceable. Uneditable file notes, version control of documents, and document templates, provide the kind of audit trail that satisfies regulators and protects your business.

Train your team

Make sure everyone in your brokerage understands what's required, why it matters, and how to do it correctly. ASIC provides comprehensive FAQs and guidance documentation that should be required reading.

The tools that make it easier

JAVLN Officetech is designed to take the complexity out of compliance. Here's how it helps with Informed Consent:

Mandatory workflow steps

Configure workflows so consent becomes a required step that can't be bypassed.

Uneditable file notes

Records are automatically date and time-stamped and cannot be altered once saved.

Secure centralised storage

All documentation stored in one place, meeting the 7-year retention requirement.

Smart auditing and reporting

Comprehensive visibility across your compliance activities.

Template management

Store and share standardised consent templates across your entire team.

Complete audit trail

Every user action is recorded and traceable.

The bigger picture

Informed Consent isn't just about avoiding fines. It's about operating with integrity and building genuine trust with your clients. When clients understand exactly how you're compensated and what services you'll provide, relationships strengthen.

The 695% increase in breaches is a warning sign for the industry. Brokers who invest in proper systems and processes now will be better positioned to serve their clients, satisfy regulators, and grow their businesses with confidence.

Those who don't? They're taking a risk that could cost them far more than the time it takes to get compliance right.

Ready to strengthen your compliance processes?

JAVLN Officetech helps Australian insurance brokers streamline Informed Consent workflows, maintain bulletproof records, and stay audit-ready. No complicated setup, just practical software that works.

Book a demo with our team and see how it can work for your brokerage.

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