ASIC rules drive surge in digital consent for insurance brokers

New regulatory requirements from the Australian Securities and Investments Commission (ASIC) now demand that insurance brokers and financial advisers obtain and record informed consent from clients before receiving commission payments for insurance product recommendations.

Effective 10 July 2025, the updated rules oblige Australian Financial Services (AFS) licensees and their representatives to secure a client's informed consent, or a written record of any verbal consent the client provides, before they may receive commissions in relation to certain general, life or consumer credit insurance products. Some exemptions apply, but the changes apply to the vast majority of retail client interactions involving insurance commissions.

Consent and Disclosure Requirements

In addition to obtaining consent, brokers and advisers must now provide detailed disclosures to clients before they receive a commission. The regulations also require the maintenance of secure, retrievable records of all disclosures and consents for at least five years. If commission terms or policy conditions change, new consents will need to be collected to remain compliant.

The compliance burden is expected to increase for those operating in the advice and insurance sectors, with an emphasis on timely and thorough record-keeping. Secure documentation of both written and verbal consent is necessary, with written records of verbal consent also required to be supplied to clients.

Technology and Compliance

In response, many firms are seeking to incorporate electronic signature and agreement management technologies into their workflows. Electronic platforms are being positioned as tools to support seamless compliance with ASIC's stricter requirements.

ASIC's latest requirements place a premium on robust record-keeping, but they don't have to mean more admin for Insurance Brokers and Financial Advisers. With Docusign Intelligent agreement management, they can ensure every disclosure is clear, each clients' consent is securely captured and every record is at their fingertips. Ultimately these changes could be seen as a positive by the advice and insurance industries, as they support more transparency for clients, building deeper trust in Australia's critical adviser and broker network.

Docusign's AI-powered intelligent agreement platform, among others, has been highlighted as automating many aspects of consent collection and record-keeping. These platforms allow users to obtain and store electronic consent, utilise pre-populated disclosure templates in line with ASIC's requirements, and automate documentation and delivery of written records to clients.

Automation and Audit Trails

The platforms store all records centrally to allow for straightforward, audit-ready retrieval, which is critical for those needing to evidence compliance over multi-year periods. Automated triggers can be configured to request new client consents if commission structures or policy details change. Additional features like sending bulk requests and issuing automated reminders are intended to reduce the administrative burden of following up with clients.

The technological tools are designed to help financial services providers remain compliant with ASIC's disclosure and consent mandates, while also supporting process efficiencies in their operations.

Industry commentators note that these rule changes are reflective of a broader shift towards improving consumer protection and strengthening transparency in the insurance and financial advice markets.

The introduction of these new requirements marks a significant shift in the compliance landscape for brokers and advisers. All parties operating as AFS licensees and their representatives are required to review and, where necessary, update their administrative and client engagement processes to reflect the ASIC standards, ensuring the provision and documentation of informed client consent in relation to commission payments.