WHAT IS IT?

The best interests duty requires financial advisers to place the interests of their clients ahead of their own in providing personal advice to retail clients. It is designed to build trust and confidence in the financial advice industry through an enhancedstandard which aligns the interests of the adviser with their client, thereby reducing conflicts of interest.

COMPLIANCE - WHAT TO LOOK FOR -

The term "best interests" is not defined in the new legislation. However, an adviser will comply with the best interests duty if they comply with the "safe harbour" provisions set out in the Act, which requires...

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Topics:  Australia, Australian Securities and Investments Commission, Conflicts of Interest, Fiduciary Duty, Financial Adviser, FOFA Reforms, Insurers

Published In: General Business Updates, Finance & Banking Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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