ASIC has approved the Insurance Brokers Disputes Limited in relation to Policy Statement 139 – Approval of External Complaints Resolution Schemes. This means IBD will now be recognised as a public company by guarantee with its own constitution.

It’s good news for member firms because they are now able to use their membership to fulfil the licensing obligation to belong to an approved EDR scheme in accordance with section 912A of the Financial Services Reform Act 2001.

The approval has been granted on the condition that the new terms of reference set out by ASIC are introduced and effective from January 1. 

Other conditions focus on the adequacy of the IBD monetary limit of $50,000 per claim. Any claims above this limit must be reviewed by ASIC. The IBD must also undergo an independent review of its operations within the next three years, focusing particularly on the adequacy of the monetary limit.

The IBD board consists of five members: former Insurance and Superannuation Assistant Commissioner Richard Smith, NIBA CEO Noel Pettersen, industry representative Bob Elder and two consumer representatives, Peter Gartlan and Jenni Mack.