ASIC has issued new regulatory guidance and has also updated some existing regulatory guidance in response to reforms under the Treasury Laws Amendments (Delivering Better Financial Outcomes and Other Measures) Act 2024 (DBFO Act).
ASIC’s new regulatory guidance includes four new information sheets and updates to Regulatory Guide 246 Conflicted and other banned remuneration (RG 246) and Regulatory Guide 175 AFS Licensing: Financial product advisers–Conduct and disclosure (RG 175).
The new information sheets are:
- Information Sheet 286 FAQs: Ongoing fee arrangements and consents (INFO 286), which answers frequently asked questions (FAQs) for financial advisers who must get a client’s written consent to enter into or renew an ongoing fee arrangement,
- Information Sheet 287 FAQs: Non-ongoing fee requests or consents (INFO 287), which answers FAQs for financial advisers who must get a client’s written request or consent to charge non-ongoing fees to client superannuation accounts,
- INFO 291 FAQs: FSGs and website disclosure information (INFO 291), which answers FAQs about obligations relating to Financial Services Guides (FSGs) and website disclosure information, and
- INFO 292 FAQs: Informed consents for insurance commissions (INFO 292), which answers FAQs about the obligation to obtain informed consent before receiving certain insurance commissions to avoid them being conflicted remuneration.
INFO 291 includes references to ASIC’s recently made instrument that allows AFS licensees or their representatives dealing in a financial product for the purposes of implementing financial product advice to rely on website disclosure information in place of providing an FSG.
ASIC’s guidance in INFO 286 and INFO 287 should assist financial advisers in meeting the revised advice fee obligations under the DBFO Act, which apply from 10 January 2025 for new fee arrangements.
ASIC’s updates to RG 246 include new guidance in response to amendments to the conflicted remuneration requirements under the DBFO Act. Revisions to RG 175 have been made to remove the FSG guidance in former Section C as its guidance had been replaced by INFO 291.
ASIC has also made consequential amendments to two regulatory guides (RG 126, RG 138) and five information sheets (INFO 141, 228, 266, 267 and 274).
ASIC will issue further guidance once the second tranche of the Government’s Delivering Better Financial Outcomes package is legislated. We will consult with industry before issuing further guidance.
For more information about the DBFO Act reforms and ASIC’s response, visit Delivering Better Financial Outcomes (DBFO) package on the ASIC website.
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- Regulatory Guide 175 AFS Licensing: Financial product advisers–Conduct and disclosure
- Regulatory Guide 246 Conflicted and other banned remuneration
- Regulatory Guide 126 Compensation and insurance arrangements for AFS licensees
- Regulatory Guide 138 Foreign passport funds
- Information Sheet 141 Dealing and providing custodial or depository service as secondary service
- Information Sheet 228 Limited AFS licensees: Advice conduct and disclosure obligations
- Information Sheet 266 FAQs: Records of Advice (ROAs)
- Information Sheet 267 Tips for giving limited advice
- Information Sheet 274 Tips for giving self-managed superannuation fund advice
- Information Sheet 286 FAQs: Ongoing fee arrangements and consents
- Information Sheet 287 FAQs: Non-ongoing fee requests or consents
- Information Sheet 291 FAQs: FSGs and website disclosure information
- Information Sheet 292 FAQs: Informed consents for insurance commissions
ASIC is Australia’s corporate, markets and financial services regulator.
