No Conflict Rule: A Reminder For AFSL Holders

On 30 July 2025, the Australian Securities and Investments Commission ("ASIC") released its proposed updates to the Regulatory Guide 181, 'Licencing: Managing conflicts of interest' ("RG 181"), which was issued in 2004. The purpose of RG 181 was to set out the general approach taken by ASIC to compliance with section 912A(1)(aa) of the Corporations Act 2001 (Cth). This is the statutory obligation requiring holders of an Australian Financial Services Licence ("AFSL") to have adequate arrangements for the management of conflicts of interest that may arise in the provision of providing financial services within their financial services business ("statutory obligation").

The proposed update to RG 181 presents a timely opportunity to remind AFSL holders that, depending on the circumstances, the fiduciary duty to avoid conflicts may operate in addition to the statutory obligation. This should be taken into account when formulating arrangements for conflict management,