Conflicted Remuneration Definition Changes – Benefits Given By Clients Are Now Easier To Receive

The definition of conflicted remuneration has been amended by clarifying that monetary and non-monetary benefits given by a retail client are not conflicted remuneration and removing some of the previous exceptions to conflicted remuneration. These changes came into effect on 10 July 2024.

Specifically, a benefit given by a retail client to a licensee or its authorised representative is not considered conflicted remuneration if:

• the benefit is given directly by a retail client or a retail client causes or authorises another party (for example, the product issuer) to give the benefit on their behalf;
• the benefit is given by a retail client or on behalf of the client, including from one or more financial products in which the retail client has rights or benefits (for example, a benefit is paid out of a premium paid by a client); and