Best interests duty for financial advisers (s 961B-G)

Personal advisers must act in client's best interests + meet related obligations.

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Who must comply

Personal advisers (relevant providers).

What triggers it

Providing personal advice to a retail client.

When due

Continuous per engagement.

Evidence required

SOA; client-best-interests-duty record; conflict register; prioritisation evidence.

Max penalty

Civil penalties to financial services maximum ($15.65M / 3× / 10%)

Summary

Sections 961B-961G Corporations Act + ASIC RG 175 require providers of personal advice to retail clients to: (1) act in client's best interests; (2) provide appropriate advice; (3) warn if advice based on incomplete/inaccurate info; (4) prioritise client's interests over their own.

Enforced by

Source legislation

Topics

financial-servicesbest-interestsadvice

Source: https://asic.gov.au/regulatory-resources/find-a-document/regulatory-guides/rg-175-licensing-financial-product-advisers-conduct-and-disclosure/. Rules Mate is not a law firm. Always verify against the live regulator source before acting.