Anti-hawking prohibition reforms for financial products

In what is the last of a raft of compliance changes commencing in October 2021 to be finalised, ASIC has now released its guidance in relation to the revised anti-hawking regime. The anti-hawking reforms seek to provide retail clients with greater control over their decisions to purchase financial products. This includes allowing retail clients to determine how they can be contacted by a financial services provider and the kinds of financial products they are offered.

What are the Requirements?

From 5 October 2021, AFS licensees are not permitted to offer, sell or issue a financial product to a retail client if the offer, sale or issuance is made in the course of, or because of, unsolicited contact with the retail client. This conduct is prohibited under the Corporations Act and is known as the general prohibition in relation to the hawking of financial products.