Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 15 JANUARY 2025

Are you taking reasonable steps to ensure your authorised representatives do not accept conflicted remuneration?

Sophie Grace Pty Ltd
Explore more from Sophie Grace Pty Ltd

Case clarifies actions taken by AFS Licensees may constitute 'reasonable steps'.

AustraliaFinance and Banking
Alicia Pevely
Alicia Pevely
Author LinkedIn connections

Key takeaways from the recent court interpretation.

The Federal Court's determination in the case of ASIC v R M Capital Pty Ltd has provided clarification on what actions taken by AFS Licensees may constitute 'reasonable steps'.

'Reasonable steps' in this context, is the standard set by s 963F of the Corporations Act for Licensees to ensure that its representatives do not accept conflicted remuneration.

Importantly, the Court noted that while Licensees are not required to take every reasonable step that could be taken, Licensees should have a correct understanding of the law and take into account all the relevant circumstances of its businesses including activities carried on by its representatives, when determining what reasonable steps to take. An incorrect understanding will not provide a defence.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Australia's Enhanced Substantial Holding Disclosure And Beneficial Ownership Disclosure Regime Comes Into Effect From 4 December

Australian financial markets face a fundamental shift in disclosure requirements from December 2026, as new rules expand substantial holding obligations beyond traditional voting interests to capture derivative positions and economic exposure. Market participants must now navigate complex calculations involving physically settleable derivatives, cash-settled instruments, and offsetting short positions—with no grandfathering for existing holdings.
AustraliaFinance and Banking
K&L Gates
K&L Gates
Article

New Payment Models Face A Broader Licensing Regime

Australia's payment services landscape is undergoing a fundamental regulatory transformation with the introduction of new legislation that shifts focus from specific technologies to the functions and activities performed by payment service providers. The Treasury Laws Amendment Bill 2026 will replace the existing non-cash payment facility framework with a comprehensive licensing regime that distinguishes between payment products and payment services, potentially capturing previously unregulated payment
AustraliaFinance and Banking
McCabes
McCabes
Article

Australia's Updated Financial Innovation Strategy

The Australian Government has unveiled its Financial Innovation Strategy, introducing a new Financial Innovation Committee and overhauling the Enhanced Regulatory Sandbox framework to better support emerging businesses testing innovative financial products. The strategy encompasses reforms across consumer data rights, digital assets, tokenised infrastructure, and regulatory frameworks designed to position Australia as a leader in financial innovation.
AustraliaFinance and Banking
K&L Gates
K&L Gates