Financial services
AFSL holders' obligations, Design and Distribution Obligations, Internal Dispute Resolution (RG 271), breach reporting, responsible lending, and product intervention powers.
25
Obligations
4
Regulators
0
Recent enforcement
Regulators
Obligations (25)
- criticalCWLTHcurrentBan on conflicted remuneration (FOFA)
AFSL holders and representatives must not accept conflicted remuneration in connection with retail financial product advice.
- criticalCWLTHcurrentBest interests duty for financial advisers (s 961B-G)
Personal advisers must act in client's best interests + meet related obligations.
- criticalCWLTHcurrentBNPL providers — credit licensing from 10 June 2025
BNPL captured by the NCCP Act as a regulated credit product from 10 June 2025.
- criticalCWLTHcurrentComply with AFSL general obligations (s 912A)
AFSL holders must do all things necessary to ensure financial services are provided efficiently, honestly and fairly.
- criticalCWLTHcurrentComply 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.
- criticalCWLTHcurrentComply with NCCP responsible lending obligations
Credit licensees must not enter into credit contracts unsuitable for the consumer.
- criticalCWLTHcurrentConsumer Credit Hardship Notice (NCC ss 72-73)
Credit providers must respond to hardship notice + assess variation request.
- criticalCWLTHcurrentDesign and Distribution Obligations (DDO) — RG 274
Issuers + distributors of retail financial products bound by DDO from 5 October 2021.
- criticalCWLTHcurrentHold AFSL with derivative authorisations (margin lending + CFD + binary)
Issuers of OTC derivatives to retail clients face product intervention orders + tightened conditions.
- criticalCWLTHcurrentLodge a prospectus for offers requiring disclosure
Offers of securities to retail investors require a prospectus or OIS lodged with ASIC.
- criticalCWLTHcurrentMaintain adequate PI insurance (AFSL holders, RG 126)
AFSL holders providing financial services to retail clients must hold adequate professional indemnity insurance.
- criticalCWLTHcurrentMaintain AFCA membership (mandatory external dispute resolution)
AFSL + ACL holders must be members of AFCA — sole AU EDR scheme.
- criticalCWLTHcurrentMortgage broker best interests duty
Brokers must act in the consumer's best interests when providing credit assistance.
- criticalCWLTHcurrentProvide FSG + Statement of Advice to retail clients
Financial Services Guide before service; Statement of Advice for personal advice.
- criticalCWLTHcurrentRegister a Managed Investment Scheme under Ch 5C
Schemes with 20+ retail members must be registered with ASIC as MIS.
- criticalCWLTHcurrentReport reportable situations to ASIC within 30 days (RG 78)
AFSL/ACL holders must report reportable situations within 30 calendar days of becoming aware.
- criticalCWLTHcurrentSmall Amount Credit Contract + Consumer Lease caps (post-SACC reforms)
SACC + consumer lease fee caps + responsible lending tightened post-Royal Commission.
- highCWLTHcurrentAFSL representative training (RG 146)
Representatives advising on financial products to retail clients must meet RG 146 training standards.
- highCWLTHcurrentAuthorise representatives correctly (Authorised Representative regime)
AFSL holders must authorise representatives in writing and notify ASIC of new ARs within 15 business days.
- highCWLTHcurrentComply with ASIC product intervention orders
Issuers and distributors must observe any product intervention order made by ASIC.
- highCWLTHcurrentComply with internal dispute resolution standards (RG 271)
Financial firms must acknowledge complaints within 24 hours and resolve within prescribed timeframes.
- highCWLTHcurrentDisplay comparison rate on credit product advertising
Annual percentage + comparison rate must accompany credit product ads under NCCP Regulations.
- highCWLTHcurrentPre-2025 ban on unsolicited credit limit increase invitations
Credit card limit increase offers cannot be sent without prior written consent.
- highCWLTHcurrentProvide a current Product Disclosure Statement (s 1013A)
Retail financial product issuers must provide a current PDS before issuing.
- highCWLTHcurrentRespond to hardship notices within statutory timeframe
Credit providers must consider hardship notices within 21 days under s 72 NCC.