Consumer groups say a revised version of the Insurance Brokers Code of Practice is “very much better” than an earlier draft that they criticised for being difficult to read and falling well short of expectations.

The updated version released for comment last year would go far closer to meeting the National Insurance Brokers Association (NIBA) ambition of having a code that is a benchmark for industry self-regulation, the Consumers Federation of Australia (CFA) says in a submission.

CFA still has some concerns, including around the handling of conflicts of interest, and has proposed changes that would bring the NIBA document in line with the Financial Adviser Standards and Ethics Authority (FASEA) code.

“We do not consider that it is reasonable just to inform a client about a conflict and expect them to assess the validity of the broker’s view that this conflict is not against their interests,” CFA says.

“This goes against the nature of the broker-client relationship, which as the draft code notes is intended to be one of consumer confidence in the broker’s advice.”

Consumers also seek a stronger response on non-financial remuneration, rather than just requiring that it is disclosed, and propose more of an onus on brokers to work to identify vulnerability, rather than relying on the client.

The revised document is commended for being significantly better written and easier for consumers to understand than the first draft, while some further amendments are suggested.

The draft code flags that it could take effect on September 1, and the CFA urges that there should be no further delay.

“Our general view is that the new code should be implemented sooner rather than later, while allowing sufficient time for brokers to prepare properly,” the submission says.

“While we appreciate that starting part-way through a reporting year creates some complexities, we are not in favour of delaying implementation until 2023.”