New code now in force, but what happens if brokers aren’t ready?
Brokers that have been unable to fully comply with the new Code of Practice in time should report a breach, experts say.
The Insurance Brokers Code Compliance Committee has issued tips and answered frequently asked questions, following the code coming into force this week.
“Code subscribers are expected to formally adopt and fully comply with the 2022 Code by November 1, with the exception of section 6.1 (disclosing remuneration) which is deferred until November 1 2023,” the committee said.
It acknowledges that some code subscribers “might struggle” to be ready, but says this must be reported as a breach.
It gives the example of a subscriber that started training its employees to support vulnerable clients, but not all had completed the training when the code came into force.
“The code subscriber should self-report this as a breach of obligations under section 5.2(c) of the 2022 Code in its 2022 Annual Compliance Statement,” the committee said.
“Detailed information should be provided, what caused the delay, any remediation action taken to rectify the breach and an expected date by which all staff have been trained.
“This also provides management with an overview of any gaps in the transition and implementation process and where to focus additional resources.
“We encourage subscribers to record and report all breaches of the code.”