Comply with ASIC product intervention orders
Issuers and distributors must observe any product intervention order made by ASIC.
Who must comply
Issuers and distributors of subject products.
What triggers it
An applicable ASIC product intervention order.
When due
From the order's commencement date.
Evidence required
Updated PDS / TMD / sales scripts; cessation of prohibited activities.
Max penalty
Civil penalties to the maximum financial-services regime
Summary
Part 7.9A of the Corporations Act enables ASIC to make product intervention orders banning, restricting or imposing conditions on financial products causing significant consumer detriment. Orders are binding and contraventions attract civil and criminal penalties.
Enforced by
Source legislation
Topics
Related obligations
- CWLTHComply with AFSL general obligations (s 912A)AFSL holders must do all things necessary to ensure financial services are provided efficiently, honestly and fairly.
- CWLTHReport reportable situations to ASIC within 30 days (RG 78)AFSL/ACL holders must report reportable situations within 30 calendar days of becoming aware.
- CWLTHComply with Design and Distribution Obligations (DDO)Issuers and distributors of retail financial products must have a Target Market Determination (TMD) and distribute consistently with it.
- CWLTHMaintain adequate PI insurance (AFSL holders, RG 126)AFSL holders providing financial services to retail clients must hold adequate professional indemnity insurance.
- CWLTHBan on conflicted remuneration (FOFA)AFSL holders and representatives must not accept conflicted remuneration in connection with retail financial product advice.
- CWLTHMaintain AFCA membership (mandatory external dispute resolution)AFSL + ACL holders must be members of AFCA — sole AU EDR scheme.
Frequently asked questions
- Who must comply with ASIC product intervention orders?
- Issuers and distributors of subject products.
- What triggers ASIC product intervention orders?
- An applicable ASIC product intervention order.
- When is ASIC product intervention orders due?
- From the order's commencement date.
- What is the maximum penalty for ASIC product intervention orders?
- Civil penalties to the maximum financial-services regime
- What evidence is required for ASIC product intervention orders?
- Updated PDS / TMD / sales scripts; cessation of prohibited activities.
Source: https://asic.gov.au/regulatory-resources/financial-services/product-intervention-power/. Rules Mate is not a law firm. Always verify against the live regulator source before acting.