Ban on conflicted remuneration (FOFA)
AFSL holders and representatives must not accept conflicted remuneration in connection with retail financial product advice.
Who must comply
AFSL holders and their representatives.
What triggers it
Receiving any benefit in connection with retail advice.
When due
Continuous.
Evidence required
Remuneration register, benefit assessment file notes, alternative remuneration register.
Max penalty
Civil penalties to the maximum financial-services regime
Summary
Sections 963A-963K of the Corporations Act (the 'FOFA' provisions) ban acceptance of commissions, volume-based payments and other benefits likely to influence advice on retail financial products. Limited exceptions for risk insurance (capped LIF commissions), basic banking and general insurance.
Enforced by
Source legislation
Entity types
Topics
Source: https://asic.gov.au/regulatory-resources/financial-services/giving-financial-product-advice/conflicted-and-other-banned-remuneration/. Rules Mate is not a law firm. Always verify against the live regulator source before acting.