Updated ASIC guidance: Conflicts of interest

ASIC has updated Regulatory Guide 181 to include further guidance for Australian Financial Services Licensees in relation to managing conflicts of interest. Changes made align RG181 with recent cases, ASIC's policy and changes to the law including to financial adviser obligations, conflicted remuneration and the design and distribution obligations.

Key Changes

The updates relate to:

• The scope of the conflicts management obligation – clarifying that the obligation is broad and applies to all conflicts which relate to the financial services provided by the AFS Licensees.
• Detailing other financial services laws which interact with the conflicts management obligation – including directors' duties, fiduciary duties, the financial adviser standards, registered scheme responsible entity obligations, foreign legislation and industry standards and codes.