Who must comply with Ban on conflicted remuneration (FOFA)?
The applicability test for Ban on conflicted remuneration (FOFA) (ASIC), computed across 35 industries, 9 business structures and 6 size bands.
Short answer: Only if
Applies when the business has an AFSL. Where the business has financial products no afsl, check whether you provide financial services (you then need an AFSL or authorised-representative status).
What the obligation is
AFSL holders and representatives must not accept conflicted remuneration in connection with retail financial product advice.
Sections 963A-963K of the Corporations Act (the 'FOFA' provisions) ban acceptance of commissions, volume-based payments and other benefits likely to influence advice on retail financial products. Limited exceptions for risk insurance (capped LIF commissions), basic banking and general insurance.
The applicability test
Applies when the business has an AFSL. Where the business has financial products no afsl, check whether you provide financial services (you then need an AFSL or authorised-representative status).
How the regulator frames it: AFSL holders and their representatives.
What triggers it: Receiving any benefit in connection with retail advice.
Jurisdiction: Commonwealth law, so the test is the same in every state and territory.
Which industries are in or out
Outcome across the 35 industries Rules Mate maps (35 of 35: no).
The answer is the same in every industry: no. Industry does not change who must comply.
Business structure and size
Structure does not change the answer across all industries: for every structure the answer is "no".
Size does not change the answer across all industries: at every size band the answer is "no".
Worked examples
Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:
- Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: does not apply. Requires an AFSL.
Answers that bring it into scope
Starting from a small or large professional services company that does not otherwise meet the test, each of these single facts changes the engine's answer:
- The business holds an Australian financial services licence (AFSL): it then applies (AFSL holder).
- The business issues financial products or gives financial product advice: it becomes worth checking, because it applies only if you provide financial services (you then need an AFSL or authorised-representative status).
When you need to check further
The engine shows this obligation as "check whether this applies" when a business has financial products no afsl. It then applies only if you provide financial services (you then need an AFSL or authorised-representative status). That fact is not something Rules Mate can infer from industry, structure or size.
What you must do, and when
- When due
- Continuous.
- Frequency
- Ongoing
- Evidence to keep
- Remuneration register, benefit assessment file notes, alternative remuneration register.
- Status
- Current
- Priority
- Critical
Penalty for not complying
Maximum penalty: Civil penalties to the maximum financial-services regime.
Audit or assurance level
Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.
Obligations with the same applicability test
If this obligation applies to you, so do these 7: the engine uses the same rule for each.
- Comply with AFSL general obligations (s 912A)
- Maintain adequate PI insurance (AFSL holders, RG 126)
- Authorise representatives correctly (Authorised Representative regime)
- Maintain Financial Adviser registration + standards (s 921B)
- AFSL representative training (RG 146)
- Provide FSG + Statement of Advice to retail clients
- Best interests duty for financial advisers (s 961B-G)
Where it sits in the corpus
Rules Mate tracks 17 published obligations tagged "financial services", 12 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 0 of those apply outright. This obligation is rated critical priority, and is an ongoing duty.
Regulator, legislation and tools
Regulated by Australian Securities and Investments Commission.
ASIC: Corporate regulator administering the Corporations Act, financial services and credit licensing (AFSL/ACL), markets supervision, insolvency, and registries (ASIC and ABRS).
Corporations Act: The foundational federal Act for Australian corporate law.
Free tools that help with this obligation:
Questions
- Who must comply with Ban on conflicted remuneration (FOFA)?
- Applies when the business has an AFSL. Where the business has financial products no afsl, check whether you provide financial services (you then need an AFSL or authorised-representative status).
- Does Ban on conflicted remuneration (FOFA) apply to sole traders?
- No. Across every industry and every size band, the engine's answer for a sole trader is: no.
- Does Ban on conflicted remuneration (FOFA) apply to businesses with 1–5 employees?
- No (1–5 employees, turnover $100K–$1M).
- When is "Ban on conflicted remuneration (FOFA)" due?
- Continuous.
Related
Sources
Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.