Does the “informed consent” requirement apply to General Advice?

The informed consent does not apply to general advice. In fact, there are various circumstances where AFS licensees and representatives are not required to meet the informed consent obligation. These include:

1. Insurance Issued or Sold Before 10 July 2025:
   • The informed consent requirement does not apply to insurance products issued or sold before 10 July 2025, as outlined in section 1708E(1).
2. General Advice:
   • If only general advice is provided, the informed consent requirement does not apply. However, the requirement applies to the monetary benefits involved if both general and personal advice are provided.
3. Non-Monetary Benefits:
   • Non-monetary benefits such as education and training do not require informed consent, but they may still be considered conflicted remuneration under section 963A(1).
4. Renewals:
   • For general insurance issued or sold before 10 July 2025, the informed consent requirement does not apply to renewals. For general insurance sold after this date, the requirement applies unless the original consent covers renewals and the renewal terms are consistent with the original consent.
   • Similarly, for life risk and consumer credit insurance sold after 10 July 2025, the informed consent requirement does not apply to renewals if the client was informed of the renewal period and the commission structure at the time of the original consent.
5. Business Transfers:
   • If an AFS licensee acquires part or all of another business, the informed consent obtained by the original business is considered valid for the new business. This applies even if the insurance product was transferred along with the client’s details.