Powered by MOMENTUM MEDIA
Broker Daily logo

Regulator amends conflicted remuneration guidance

ASIC has issued updates to its regulatory guidance on conflicted remuneration for advisers in preparation for incoming reforms to life insurance remuneration, which come into effect on 1 January 2018.

The updates to Regulatory Guide 246 (RG246) include additional guidance on the exclusion of benefits paid by clients and examples of when conference benefits are likely to be conflicted remuneration.

Further, the updates reiterate that “commissions given by a property developer to an adviser where the adviser recommends the establishment, or use, of an SMSF to purchase property are likely to be conflicted remuneration”.

The changes also include guidance on the incoming life insurance remuneration reforms, which will require remuneration arrangements used in direct sales and other distribution channels to change from 1 January 2018.

==
==

ASIC said that it will continue to monitor the implementation of the life insurance remuneration reforms and will “consider developing additional guidance” if there is a need to do so.

The regulator noted that changes to the grandfathering arrangements for the ban on conflicted remuneration, exclusions for basic banking products, and stamping fee and brokerage exclusions have all also impacted the guidance in RG246.

More on Regulation
18 November 2024
NAB has been targeted by ASIC after allegedly failing to support customers when applying for hardship support.
15 November 2024
The government has announced a fund aimed at boosting productivity across the country, including in housing construction ...
14 November 2024
The resetting of the Consumer Data Right (CDR) has begun, with changes coming into effect this week.