On 21 November 2024, the Australian Securities and Investments Commission released updated regulatory guidance in response to reforms introduced under the Treasury Laws Amendments (Delivering Better Financial Outcomes and Other Measures) Act 2024 (DBFO Act). This guidance is aimed to assist financial advisers and Australian Financial Services (AFS) licensees in complying with new obligations arising from the reforms, which come into effect on 10 January 2025. The updated regulatory guidance includes four updated information sheets and updates to existing regulatory guides, with further guidance expected as the government’s DBFO package continues to roll out.
ASIC has published four new information sheets addressing the DBFO Act, which includes INFO 286, INFO 287 i.e. FAQs on Non-Ongoing Fee Arrangements and Consents, this sheet answers frequently asked questions about obtaining written client consent to enter into or renew ongoing fee arrangements. INFO 287 is updated FAQs on Non-Ongoing Fee Requests or Consents. Financial advisers can refer to this sheet for guidance on obtaining client requests or consents to charge non-ongoing fees to superannuation accounts. INFO 291 are FAQs on FSGs and Website Disclosure Information. This sheet explains obligations related to Financial Services Guides (FSGs) and website disclosures. It also references ASIC’s recent instrument allowing AFS licensees to rely on website disclosures in place of providing an FSG when dealing in financial products. INFO 292 are FAQs on Informed Consents for Insurance Commissions. This sheet clarifies the requirement to obtain informed consent before receiving certain insurance commissions, ensuring they are not classified as conflicted remuneration.
ASIC has also updated two regulatory guides to align with the DBFO Act reforms which are, RG 246: Conflicted and Other Banned Remuneration. This guide now includes additional advice on managing amendments to conflicted remuneration requirements and RG 175: AFS Licensing – Conduct and Disclosure. Updates to this guide reflect the removal of FSG guidance in former Section C, which has been replaced by the detailed information provided in INFO 291. ASIC has also made minor adjustments to two other regulatory guides i.e. RG 126 and RG 138, as well as five information sheets to ensure consistency with the DBFO Act.
ASIC’s guidance is particularly relevant to advisers handling fee arrangements, as new advice fee obligations under the DBFO Act will take effect from 10 January 2025 for new arrangements. INFO 286 and INFO 287 are designed to help advisers navigate these revised obligations while maintaining compliance. The updates to RG 246 address the practical implications of the amended conflicted remuneration rules, while INFO 292 ensures clarity on the need for informed client consent when dealing with insurance commissions. These changes aim to improve transparency and trust in financial advice.
ASIC has confirmed its commitment to issuing further guidance once the second tranche of the Government’s Delivering Better Financial Outcomes package is legislated. As part of this process, ASIC will consult with the industry to ensure future guidance addresses the practical needs of financial advisers and AFS licensees. In the meantime, ASIC encourages stakeholders to review the current guidance and implement the necessary adjustments to comply with the DBFO Act reforms. For more details about the DBFO Act reforms and ASIC’s regulatory response, visit the Delivering Better Financial Outcomes package section on the ASIC website. This hub provides comprehensive information on the reforms and the support available for financial services professionals.
