ASIC releases updated guidance in response to DBFO act

The prudential regulator has issued guidance and updated existing guidance in response to DBFO reforms that passed earlier this year. 

The regulator’s new guidance includes four new information sheets and updates to Regulatory Guide 246 Conflicted and other banned remuneration and Regulatory Guide 175 AFS Licensing: Financial product advisers–Conduct and disclosure. 

The new information sheets are: 

• Information Sheet 286 FAQs: Ongoing fee arrangements and consents, which answers frequently asked questions (FAQs) for financial advisers who must get a client’s written consent to enter into or renew an ongoing fee arrangement; 

• Information Sheet 287 FAQs: Non-ongoing fee requests or consents, which answers FAQs for financial advisers who must get a client’s written request or consent to charge non-ongoing fees to client superannuation accounts; 

• INFO 291 FAQs: FSGs and website disclosure information, which answers FAQs about obligations relating to Financial Services Guides and website disclosure information; and 

• INFO 292 FAQs: Informed consents for insurance commissions, which answers FAQs about the obligation to obtain informed consent before receiving certain insurance commissions to avoid them being conflicted remuneration. 

INFO 291 references the regulator’s new legislative instrument that allows AFS licensees or their representatives dealing in a financial product for the purposes of implementing financial product advice to rely on website disclosure information in place of providing an FSG. 

The guidance in INFO 286 and INFO 287 aims to help financial advisers meet the revised advice fee obligations under the DBFO act. 

ASIC’s updates to RG 246 include new guidance in response to amendments to the conflicted remuneration requirements under the DBFO act. Revisions to RG 175 have been made to remove the FSG guidance in former Section C. 

The regulator will issue further guidance once the second tranche of the government’s DBFO package is legislated.