What does the duty of accountability require brokers to do?

The duty of accountability requires brokers to keep records of all transactions made on their behalf. This duty is crucial in ensuring that brokers maintain transparency and are able to provide evidence of their activities, ensuring they are acting in the best interests of their clients. Proper record-keeping supports regulatory requirements and helps in risk management, enabling brokers to track dealings, resolve disputes, and demonstrate compliance with relevant laws and standards. This practice also fosters trust between brokers and their clients, as clients can hold brokers accountable for their actions and decisions regarding their insurance matters.

In contrast, ensuring personal funds are available has no relevance to the accountability principle, while providing gifts to clients could potentially create conflicts of interest and does not relate to the professional duty of accountability. Additionally, limiting communication with insurers is counterproductive to the role of a broker, who needs to maintain open lines of communication to effectively advocate for their clients’ needs and secure the best possible coverage.