Frequently Asked Questions
Informed Consent for insurance commissions
Effective 9 July 2025
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What is informed consent?
Informed consent is the formal approval for BCB to receive a commission for arranging an insurance policy. It ensures clients understand how we are remunerated and that their agreement is documented before we finalise the insurance.
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Why is this being introduced now?
From 9 July 2025, when insurance brokers provide personal advice to retail clients, ASIC regulations require brokers to obtain informed consent each year before they can receive a commission. These changes are part of ongoing efforts to improve transparency and protect client interests.
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Who provides the consent – the strata committee, the strata scheme or the strata manager?
Consent must come from the strata scheme. In many cases, this will be delegated to the strata committee or strata manager via a General Meeting resolution or an existing agency agreement. The authority to consent should be clearly documented.
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How will BCB capture informed consent?
New clients/new policies: we’ll use the Quotation Slip to obtain informed consent and we’ll request subsequent informed consent in the Pre-Renewal Declaration at each renewal.
New clients/existing policy takeover: we’ll use the Letter of Appointment to seek informed consent at the time of appointment. This will ensure the client is aware of informed consent before their next renewal. We’ll also request subsequent informed consent in the Pre-Renewal Declaration at each renewal.
Existing clients: the strata scheme will receive a Pre-Renewal Declaration (PRD) at the start of the renewal process. This form will include options for how we are paid and require the scheme’s formal instructions before we request quotations from insurers.
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What are the options for broker remuneration?
You’ll be asked to select from the following options.
- Commission-based remuneration
- Fee-for-service
- Hybrid (a combination of commission and fee)
Each option will be clearly explained in the PRD.
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What happens if we don’t return the signed PRD?
We can’t obtain quotations or place cover without a strata scheme’s informed consent. This may delay your renewal and risk a lapse in insurance coverage if not resolved in time.
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Will this change the cost of our insurance?
Not necessarily. The cost of insurance is determined by the insurer, the policy coverage, and any broker fees or commissions. The important change is that you will now formally choose and approve the method of broker remuneration before we obtain quotes.
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What will be included in the Broker Advice document?
The final Broker Advice you receive will include:
- a summary of all quotes
- the remuneration structure you chose
- the dollar amount of any commission or fees
- a clear and compliant disclosure using the SCA Strata Insurance Disclosure Best Practice Guide.
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Can we change our remuneration preference in the future?
Yes. Your strata scheme can update its preference before each renewal cycle. We’ll issue a new PRD annually, allowing you to reassess and choose the most appropriate method.
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What if our strata manager has delegated authority to approve insurance?
If your strata scheme has contractually delegated this authority, the strata manager can complete the PRD on your behalf. BCB will rely on this authority being valid and current. We recommend reviewing your agency agreement or obtaining a formal Committee resolution if in doubt.
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What if we have questions or want to learn more?
Please speak to your BCB Account Manager or contact our team via email or phone. We’re here to help guide your scheme through this process and answer any questions you may have.
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Where can we find updates or additional guidance?
You can visit the ASIC website or refer to industry resources such as the SCA Strata Insurance Disclosure Best Practice Guide.
BCB is committed to transparency, client choice, and quality advice.
We’re here to make this transition as seamless as possible.
