Informed consent
What is informed consent?
Informed consent is the formal approval provided by a retail client (in this case, an Owners Corporation or Body Corporate) that allows an insurance broker to obtain insurance quotations that include commission as part of the premium
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 Owners Corporations are fully informed about the managing agents and the broker’s remuneration.
Choice: allows clients to choose how managing agents 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 CIB’s ongoing commitment to acting in the best interests of our clients and delivering full disclosure.
Our commitment
We are committed to working openly and collaboratively with Owners Corporations. We support complete transparency and are proud to give our clients control and choice in how we manage their insurance renewals.
We will 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 will request subsequent informed consent in the Pre-Renewal Declaration (PRD) at each renewal.
Existing clients
1. Pre-Renewal Declaration
At the start of each renewal cycle, we will issue a PRD to the Owners Corporation or their appointed Managing Agent.
This PRD will do the following.
Request instructions on the preferred remuneration method for the upcoming renewal from the Owners Corporation.
Include a mandatory consent section requiring authorised sign-off.
2. Market quoting based on instructions
We will approach insurers for quotations based on the remuneration instructions provided in the PRD.
3. Broker Advice with full disclosure
CIB’s final Broker Advice will:
confirm the quotes we have 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 discusses and approves the preferred remuneration method.
Provide formal instructions to CIB by completing the PRD.
Contact us if you have any questions or want to explore alternative remuneration arrangements.
Useful documents
New clients
Existing clients
Email template for seeking informed consent
Email template for informed consent confirmation of verbal/SMS instruction
We are 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 CIB representative if you have any questions.