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 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.
What if that person was also a Licensed Real Estate Agent and made it clear where one advice stops and the next begins ie. Clear indication that property sales is finished and a clear sign that Planning or Broking begins?
How is it unethical? You can make that type of commission recommending Insurances so maybe that should be band as well? Maybe Financial Planners or Mortgage Brokers shouldn’t be able to make commission full stop? Where does it start and stop? Lets just all work for charity!
Stunned. How about instead it reads “Commissions given by a property developer to an adviser…are conflicted remuneration.”
Exactly, its such a joke that anyone (planner, mortgage broker or accountant) can receive 10-40k for referring to a property spruiker. Unethical to say the least.