Yes. A retail client can provide verbal informed consent for insurance commission payments, provided the AFS licensee or representative creates a written record of that consent, retains it, and gives the client a copy as soon as practicable.
Expanded Answer
ASIC permits informed consent to be obtained either in writing or verbally. Where consent is verbal, the key requirement is that it is properly captured. The adviser must make a written record of the consent, including the details disclosed to the client (such as commission structure, timing and duration), and retain that record as evidence of compliance.
In practice, this means verbal consent must be contemporaneously documented—typically through file notes, call recordings, or system records—and then provided to the client in a durable form (such as email or letter). The obligation is not just to obtain consent, but to demonstrate that it was informed. This includes showing the client was given the required information before agreeing.
These steps ensure compliance with section 963BB(1) of the Corporations Act and help mitigate potential conflicts of interest arising from receiving commissions. The requirement applies equally to new and existing clients whenever new commissions arise or insurance arrangements are materially changed. For further context, see client consent: a compliance cornerstone and trust-building tool and why product consent forms aren’t enough.
Why it matters
Verbal consent without proper records is a common failure point. If consent cannot be evidenced, ASIC may treat it as not obtained, exposing licensees to conflicted remuneration breaches and enforcement risk.
Practical guidance
- Record verbal consent clearly, including what was disclosed and when consent was given
- Provide the client with a written record of the consent as soon as practicable
- Ensure systems and supervision processes verify that consent is both obtained and evidenced
Further reading