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ASIC rejigs record-keeping rules

ASIC has updated the record-keeping obligations of advisers to bring the current rules in line with the FOFA regime.

The corporate regulator has issued a class order following a period of consultation with the industry that will require advisers to maintain records of how they have complied with the FOFA best industry duty when giving advice.

ASIC said licensees and their representatives will need to ensure they maintain records of the information relied upon in providing advice as well as the advice given and the reasons why.

In cases where there is a conflict between the interests of the client and those of an adviser, ASIC said the licensee or representative of the licensee will need to provide evidence that the client’s interests were given priority.


The corporate regulator said financial services licensees will be required to keep these records for seven years after the day the personal advice was provided to the client.

ASIC noted, however, that the requirements will not apply in cases where the provision of advice did not require a statement of advice.


“Keeping records of advice and transactions is important to ensuring clients receive quality advice and that financial services are provided efficiently, honestly and fairly,” said ASIC.

“ASIC has been actively monitoring record keeping by AFS licensees and, where AFS licensees have failed, has taken action.”