Lesson 7 – Records, Conflicts and Provider Monitoring

7.1 Recording the disclosure

MyEstate should retain evidence showing:

• The provider recommended;
• The service offered;
• The date and time of the recommendation;
• The disclosure wording used;
• The referral-fee amount or calculation;
• The commercial connection;
• How the disclosure was delivered;
• Whether the customer agreed to the referral;
• Whether consent was obtained to share details;
• The details transferred;
• The customer’s decision; and
• Any questions or objections raised.

7.2 Suitable evidence

Evidence may include:

• A signed disclosure;
• An electronic acceptance;
• A recorded opt-in;
• An email confirmation;
• A customer relationship management entry;
• A copy of the quotation;
• A telephone attendance note; or
• A time-stamped online record.

A note simply stating “customer advised” may be insufficient if it does not show what was disclosed.

7.3 Conflicts of interest

Referral arrangements may create a conflict where:

• MyEstate’s fee influences the provider recommended;
• An employee’s bonus affects their behaviour;
• A higher-paying provider is recommended over a more suitable one;
• The referral arrangement delays a transaction;
• The recommended provider is also acting for another party;
• A contractor’s commission affects repair decisions;
• The customer believes the recommendation is independent; or
• Complaints about the provider are ignored to protect income.

Employees should report actual, potential or perceived conflicts.

7.4 Provider due diligence

Before a provider is added to an approved panel, MyEstate should consider:

• Relevant qualifications;
• Regulatory status;
• Insurance;
• Experience;
• Reputation;
• Complaint history;
• Service standards;
• Data-protection arrangements;
• Financial stability where relevant;
• Pricing transparency;
• Conflicts of interest; and
• The terms of the referral agreement.

7.5 Ongoing monitoring

MyEstate should not assume that an approved provider will remain suitable indefinitely.

Monitoring may include:

• Reviewing complaints;
• Checking response times;
• Monitoring abandoned transactions;
• Reviewing customer feedback;
• Checking regulatory status;
• Reviewing data-security incidents;
• Examining quality failures;
• Confirming current insurance; and
• Reviewing fees and disclosure wording.

7.6 Data protection

Customer details should not be passed to a provider merely because a referral arrangement exists.

Before sharing information, staff should:

• Explain what will be shared;
• Explain who will receive it;
• Identify the proper data-protection basis;
• Obtain any required consent;
• Share only necessary information;
• Use an approved secure method; and
• Record the transfer.

Lesson 7 key point

A referral is not complete when the customer is introduced. MyEstate must retain evidence, manage conflicts and monitor provider performance.