The new National Consumer Credit Protection Regime, expected to begin on July 1, contains some potential compliance headaches for insurance brokers.

The legislation provides a national code for the provision of credit to consumers for wholly or predominantly personal, household or domestic purposes.

Insurance lawyer Mark Radford from Colin Biggers & Paisley says premium funders will be affected with personal and domestic funding on products like home policies, as will brokers who help clients apply for or secure premium funding.

To be exempt, brokers will have to limit their services to the passing on of factual information and use prepared documents or activities.

Mr Radford says brokers should identify whether their activities will be caught in the regime and start planning for their compliance.

“It’s kind of staggered,” he told insuranceNEWS.com.au.

“You have registration with the Australian Securities and Investments Commission that’s not that onerous to begin with, but it is followed by licensing, so it has an impact.

“Those brokers who want to play more than a mere conduit role will pretty much have to meet the requirements.”