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.