What is informed consent?
Informed consent is the formal approval provided by a retail client (in this case, a strata scheme) that allows an insurance broker to receive a commission for arranging insurance.
From 9 July 2025, new ASIC regulations require brokers to obtain clear, prior consent from clients in each policy period when personal advice is provided and commission is paid.
Why is informed consent necessary?
- Transparency: ensures strata schemes are fully informed about the strata manager and broker’s remuneration.
- Choice: allows clients to choose how strata managers and brokers are paid (commission or fee-for-service).
- Compliance: aligns with updated financial services laws and industry best practice under ASIC’s regulatory framework.
- Trust: reinforces BCB’s ongoing commitment to acting in the best interests of our clients and delivering full disclosure.
Our commitment
We’re committed to working openly and collaboratively with strata schemes. We support complete transparency and are proud to give our clients control and choice in how we manage their insurance renewals.
We’ll implement informed consent for all new insurance plans and renewals from 9 July 2025 to comply with the new legislation.
How it will work
New clients
Use the Letter of Appointment to seek informed consent at the time of appointment. We’ll request subsequent informed consent in the Pre-Renewal Declaration (PRD) at each renewal.
Existing clients
1. Pre-Renewal Declaration (PRD)
At the start of each renewal cycle, we’ll issue a PRD to the strata scheme or its appointed strata manager.
This PRD will do the following.
- Request instructions on the preferred remuneration method for the upcoming renewal from the strata scheme.
- Include a mandatory consent section requiring authorised sign-off.
2. Market quoting based on instructions
We’ll approach insurers for quotations based on the remuneration instructions provided in the PRD.
3. Broker Advice with full disclosure
BCB’s final Broker Advice will:
- confirm the quotes we’ve obtained
- show the remuneration for each option
- present this in accordance with the SCA Strata Insurance Disclosure Best Practice Guide.
What you need to do
- Review the PRD when you receive it.
- Ensure the committee (or delegated authority) discusses and approves the preferred remuneration method.
- Provide formal instructions to BCB by completing the PRD.
- Contact us if you have any questions or want to explore alternative remuneration arrangements.
Useful documents
New clients
Existing clients (as at 9 July 2025)
Email template for seeking informed consent
Email template for informed consent confirmation of verbal/SMS instruction
We’re here to help
We understand these changes may prompt new questions, so we’re here to help. Our dedicated team is available to guide your strata scheme through the informed consent process and help ensure a smooth renewal.
Please refer to the FAQs or contact your local BCB office if you have any questions.
