ASIC has updated Regulatory Guide 175 Licensing: Financial product advisers – conduct and disclosure (RG 175) to reflect regulatory and legislative changes, including revisions to the Future of Financial Advice (FOFA) reforms.

The changes incorporate:

• technical amendments to the FOFA reforms;
• recent amendments to clarify financial advisers’ record-keeping obligations when giving personal advice;
  the application of the tax agent services regime to financial advisers who provide tax (financial) advice services; and
• the relief available to facilitate the digital delivery of disclosures.

RG 175 has also been updated to clarify ASIC’s views that while the best interests duty and the appropriate advice requirement introduced as part of the FOFA reforms are separate obligations, it is unlikely that advice which fails to meet the best interests duty will be appropriate.

RG 175 also provides guidance on the use of restricted terms under s923A of the Corporations Act, particularly about when commissions can be said to be ‘rebated in full’. ASIC is currently considering the interpretation of s923A, including in relation to whether other terms (such as ‘independently owned’) are restricted under s923A.