Record-keeping obligations updated

Financial advisers’ record-keeping obligations have been updated, following industry consultation.

The updated obligations require Australian financial services (AFS) licensees to keep records to prove that the AFS licensee and its representatives have complied with the Future of Financial Advice (FOFA) best interests duty and related obligations when they give personal advice to retail clients.

ASIC consulted with industry on proposals to update record-keeping obligations in July 2013 (refer: 13-196MR). Following this, ASIC today released a report on the feedback it received and a class order modifying the law to reflect the updated obligations.

Keeping records of advice and transactions is important to ensuring clients receive quality advice and that financial services are provided efficiently, honestly and fairly.

ASIC has been actively monitoring record keeping by AFS licensees and, where AFS licensees have failed, has taken action.

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• Class Order [CO 14/923] Record-keeping obligations for Australian financial services licensees when giving personal advice
• Report 409 Response to submissions on CP 214 Updated record keeping obligations for AFS licensees (REP 409)
• Consultation Paper 214 Updated record-keeping obligations for AFS licensees (CP 214)
• Industry submissions to CP 214