ASIC expands on DBFO guidance

The Australian Securities and Investments Commission (ASIC) has expanded on its regulatory guidance around the Government’s Delivering Better Financial Outcomes (DBFO) legislation including around life insurance commissions.

In doing so, the regulator has confirmed that clients can provide informed consent verbally but that advisers must keep a written record of that consent and and give a copy of it to the client as soon as reasonably practicable.

The ASIC guidance has also made clear that advisers who are paid a monetary benefit without obtaining informed consent from the client will have accepted conflicted remuneration.

“The consequences of breaching this ban could include a civil penalty, a banning order or AFS license suspension or cancellation,” the guidance said.

The guidance also makes clear that advisers do not need to obtain new informed consent if they acquire all or part of an advice business.