The new Insurance Brokers Code of Practice has been launched with a ban on preferential remuneration, increased disclosure requirements and an obligation to identify and support vulnerable clients.

Brokers can also be named and shamed for breaches and there is an obligation on brokers to report other brokers.

The National Insurance Brokers Association (NIBA) says members have until November 1 to prepare for the new requirements, and NIBA will provide advice and guidance in the meantime.

Consumer representatives have welcomed the code but say some aspects could have been stronger.

“We … appreciate the work that NIBA has put in to build in improved protections for consumers who use insurance brokers,” Director of Casework at Financial Rights Legal Centre Alexandra Kelly said.

“Having said that there always remains work to be done. We don’t think the conflicts of interest and commission remuneration sections are as strong we would like them to be – especially in comparison to the FASEA Code of Ethics.”

Chairman of the Insurance Brokers Code Compliance Committee Oscar Shub says the committee’s early concerns were taken on board and paid tribute to the level of cooperation between all parties.

Sanctions available to the committee do not include a financial penalty, but it can “publish the fact that a named code subscriber has breached the code and details of the breach”. Mr Shub says that’s appropriate.

“If you want to protect the public then it is important that if you have errant brokers that they are identified, but we will exercise some discretion,” he told insuranceNEWS.com.au.

Click  here to see the new code.