Insurance brokers – Tidying up after a busy June: a compliance perspective
You’ve had a hectic June but feel satisfied because you assisted so many clients
There is an alarming amount of paperwork that you need to clear & you’re desperately trying to remember all the compliance stuff that you’re supposed to do.
I’m not condoning non-compliance however you have a small window to rectify. We are only human after all & we all make mistakes.
Don’t forget to raise any non-compliance as an incident in either CCX 360 or similar register & declare on your attestation.
𝗬𝗼𝘂𝗿 𝗵𝗶𝗻𝗱𝘀𝗶𝗴𝗵𝘁 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗰𝗵𝗲𝗰𝗸𝗹𝗶𝘀𝘁
Over the past 4 weeks
- 1 Did you provide Terms of engagement to prospective clients?
- Did you provide an FSG?
- If the client is a retail client did you disclose your actual $ remuneration?
- Was any client dissatisfied with your service? If so, raise as a complaint, give the client a call to check in, apologise & advise of your IDR process
- Did you provide support to any client experiencing vulnerability?
- Did you correctly identify consumer insurance contracts & comply with your client’s duty to take reasonable care not to make a misrepresentation?
- In all other cases did your client comply with their duty of disclosure?
- Did you contact your client at least 14 days before the policy expiry date?
- Did you bind terms for your client? If the insurer or underwriting agency did not provide renewal terms or non-renewal notice to you 14 days prior to the due date your client has the benefit of statutory cover for renewals.
- Did you ensure that your retail client fell within the Target Market Determination?
- Did you send your retail client the PDS? (Which also includes the policy schedule).
- If you are a NIBA member & won the account but the previous broker did all the renewal work. Did you send the commission to the previous broker?
- In your client dealings, did you act honestly & with integrity? Did you act with commercial decency? Did you provide a duty of care to your client that a reasonable broker in your circumstances would?
- Was all client money paid into your trust account?
- Any E&O matters that you need to disclose to your PI insurer?
𝙋𝙤𝙨𝙩 𝙅𝙪𝙣𝙚 𝙞𝙨 𝙖 𝙜𝙧𝙚𝙖𝙩 𝙩𝙞𝙢𝙚 𝙛𝙤𝙧 𝙖 𝙘𝙤𝙢𝙥𝙡𝙞𝙖𝙣𝙘𝙚 𝙝𝙚𝙖𝙡𝙩𝙝-𝙘𝙝𝙚𝙘𝙠
As the dust settles in June, now is a great time to think about a compliance health check.
When conducting a compliance health check of your broking business I consider:
1. Financial service laws
2. Your AFSL authorisations & conditions
3. Your obligations as an Authorised Rep
4. Your monitoring of your staff, ARs & referrers
5. If you’re a Steadfast member – Steadfast Broker Code of conduct
6. If you’re a NIBA member – the Code of Practice
7. CCX 360 or equivalent (evidence of compliance)