The National Insurance Brokers Association (NIBA) expects to launch the new code of practice on March 1 ahead of it taking effect from the start of November.

President Dianne Phelan says the new version has been “built from the ground up” following feedback on a draft document and is based on the core principles of professional commitment, ethical behaviour and transparency and accountability.

“These principles are enshrined through the code and it’s my hope that subscribers will use these principles to ensure best practices within their organisations,” she said at the NIBA Convention in Adelaide.

Support materials and guidance templates have been developed to assist members ahead of implementation, and NIBA has engaged with industry training organisations.

NIBA CEO Phil Kewin says the code promotes standards above those required by the law and includes changes such as “peer-to-peer accountability”.

The strengthened document contains obligations to report brokers who breach the code, commitments to identify and support vulnerable clients and increased disclosure requirements

Preferential remuneration, such as volume-based commissions, and contingent remuneration, unless under a binder arrangement will be banned.

Consultations on the new code began in 2018 and have taken into account financial services changes emerging from the Hayne royal commission and updates to the General Insurance Code of Practice.

The existing version of the code dates back to 2014.