Quality of Advice reviewer Michelle Levy has had her say on the National Insurance Brokers Association draft code, arguing that all commissions should be disclosed.

As insuranceNEWS.com.au has reported, the reviewed code currently leaves out a key recommendation requiring remuneration be disclosed to all small business clients, regardless of product.

“In my view a person who is a professional, acting in the best interests of their client, has an ethical obligation – if not legal obligation – to disclose all the remuneration they will receive,” Ms Levy told insuranceNEWS.com.au.

She does not believe that it’s reasonable to rely on the obligation contained in the draft code to give a dollar figure to all clients that ask for remuneration details.

“A person that is ethical does not wait to be asked,” she said.

“An ethical person will volunteer all relevant information. I find it incomprehensible that you would withhold information subject to being asked.”

The Australian Financial Complaints Authority and Insurance Brokers Code Compliance Committee have threatened to push for legislative reform if the current draft code wording is approved, and Ms Levy does not believe it would be difficult for the government to take action.

“It would not be very hard to expand the definition of retail client, for example,” she said.

The IBCCC is focused on expanding remuneration requirements to all small business clients. The current definition of a retail client only includes individuals and small businesses buying a set list of mostly personal lines products.

Ms Levy’s Quality of Advice Review was recommended by royal commissioner Kenneth Hayne. The review enabled commissions to continue in general insurance, but introduced the informed consent obligation where brokers are giving personal advice to retail clients.

The review was focused on retail clients, but Ms Levy has previously told insuranceNEWS.com.au that her views on disclosure and consent around commissions also extend to small business.

NIBA has argued that there is no evidence of harm to back any further expansion of disclosure requirements. It says every additional obligation comes at a cost and must be justified by some tangible client benefit.

insuranceNEWS.com.au understands the NIBA board will consider feedback on the draft code at a meeting this week.