Informed Consent can be straight forward with the right tools

With Australia’s Informed Consent regulations coming into effect on 10 July 2025, now’s the perfect time to implement smarter processes for client renewals and new business to ensure compliance and keep your insurance brokerage running smoothly.

The nitty-gritty of the new regulations

New regulations from the Delivering Better Financial Outcomes (DBFO) Act 2024, come into play on 10 July 2025.  ASIC will enforce the rules, which will align Australia with global regulatory trends for client transparency and trust.

Here’s what’s changing: Brokers will need to obtain explicit, informed consent from their clients before receiving commissions on personal advice related to insurance products.

The regulations relate to general, life and consumer credit insurance.

Let’s break down the key points you need to know:

When do the rules apply? The regulations apply to new policies and certain renewals from 10 July 2025. Consent must be obtained before the policy is issued, sold, or renewed – no exceptions.

How can consent be given? This consent can be written or verbal, but if it’s verbal, you need a written record of it that’s date and time stamped. Think of it as your compliance safety net.

What about client records? Clients must receive a copy of the consent document or written record. It’s all about keeping everyone on the same page.

What happens if you don’t comply? Not complying can lead to some serious consequences like hefty fines , being banned from operating as a broker, or even suspension or cancellation of your AFS licence. Nobody wants that to happen.

Record keeping requirements: Any variations to the consent must be recorded, and all records need to be kept for at least 5 years. Yes, that’s a lot of record keeping, but JAVLN will show you how to make it easy. 

What needs to be disclosed

Informed Consent is more than simply telling a client that commission will be paid by the insurer to the broker. The new regulations are very specific about what information must be disclosed, and it needs to be presented in a clear, concise, and effective way.

Here’s your disclosure checklist:

Name of the insurer: You need to clearly identify the insurer.

Monetary benefit (fees or commission): This should be explained as a percentage range of the policy cost. No vague language allowed.

Frequency and duration of commission payments: How often and for how long will commissions be paid? This is to ensure your clients have the full picture.

Nature of broker services: Outline the services you will provide to your client in relation to the insurance product. Be specific about what value you’re bringing.

Consent requirement: Explain that consent is needed before you can receive payment [from the insurer] and is irrevocable. This isn’t a decision clients can change their mind about later.

The key here is that clients must have a “genuine and real opportunity” to make an informed decision. Information must be clearly explained, in language the client can understand. Burying this important information in the fine print won’t cut it.

Why these changes matter

These regulations didn’t appear out of nowhere. They’re ASIC’s response to issues uncovered by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. The commission exposed widespread problems, including financial advisors charging clients for services never provided and failing to adequately disclose fees.

ASIC’s own research found some eye-opening statistics: 27% of required fee disclosure statements weren’t given to clients, 35% of required renewal notices were missing, and of the statements that were provided, 80% didn’t include accurate information about services clients were entitled to receive.

The bottom line? These new regulations are about rebuilding trust and ensuring clients genuinely understand what they’re agreeing to. 

Keep it simple with JAVLN Officetech

Here’s where things get exciting. JAVLN Officetech already has all the tools you need to ensure compliance, and save headaches down the line. JAVLN’s built-in, automated tools and workflows can create mandatory informed consent steps, complete with clear instructions and templates that make compliance feel easier.

Why JAVLN Officetech is a game-changer:

Mandatory workflow steps: Set up workflows so that Informed Consent becomes a “must-do” step, preventing the next stage until it’s completed. No more wondering if someone forgot a crucial step.

Bulletproof secure storage: JAVLN Officetech securely stores all documentation, in one central place, making it easy to adhere to the mandatory 5-year retention requirement. Think of it as your digital filing cabinet that never loses anything.

Immutable file notes: File notes made in JAVLN Officetech cannot be changed once they’ve been saved and they’re automatically date and time-stamped. This provides a robust audit trail that regulators love to see.

Smart auditing and reporting: JAVLN’s comprehensive reporting simplifies auditing, giving you full visibility of compliance with current and new regulations. When audit time comes around, it won’t be the arduous process you may put to the bottom of your to do list.

Template magic: JAVLN Officetech can store your email or document templates. Everyone in your team can use the same compliance document (making auditing even easier). No starting from scratch for each client – just practical tools that work.

Audit Trail: The audit trail displays and records every action performed by all users within JAVLN Officetech.

Your action plan for July 2025

Now’s the time to get your ducks in a row. Consider how your brokerage will manage compliance, reporting, and auditing for this new step in your client process.

Check out this roadmap:

Review and update your disclosure practices: Ensure all commission disclosures are clear, concise, and effectively communicated to clients. Need some guidance? Chat with your compliance provider (NIBA, Cluster Group, AFSL).

Implement standardised procedures: Develop consistent processes for obtaining and recording client consent. JAVLN’s workflow engine makes this automatic rather than manual.

Educate your team: Make sure your brokers understand the distinctions between personal and general advice, the new consent requirements, and why compliance matters. ASIC’s comprehensive FAQs and detailed documentation provide excellent guidance to get the team up to speed.

Strengthen your compliance framework: Update internal processes to incorporate the new consent requirements, including regular monitoring. JAVLN’s reporting tools give you the oversight you need without the administrative burden.

The bigger picture

While these regulations might initially seem like another hurdle, they’re really about building stronger relationships with your clients. When clients understand exactly how you’re compensated and what services you’ll provide, trust increases. And with tools like JAVLN Officetech, compliance can be a smooth, efficient process that benefits both you and your clients.

The insurance industry is moving toward more transparency and client centricity. Brokers who embrace these changes and implement smart technology solutions won’t just survive – they’ll thrive. Your clients will appreciate the clarity, regulators will appreciate your compliance, and you’ll appreciate how much easier your daily operations become.

Remember, this is about positioning your brokerage as a trusted, professional operation that puts client interests first. In an industry where trust matters, that’s a competitive advantage worth investing in.

Work smarter, not harder

July 2025 is around just the corner and with the right preparation and tools, you’ll be ready. JAVLN Officetech helps make regulatory compliance a business advantage, giving you more time to focus on what you do best – serving your clients and growing your business.

Ready to see how JAVLN Officetech can transform your compliance processes?

Work smarter, not harder with JAVLN Officetech. No technical jargon. No complicated setup. Just practical software that helps insurance brokers free up more of their time and ensure compliance.

Book a free demo and JAVLN will show you the magic.