Advice Governance

What’s the difference between an SMA and an SMA mandate?

ASIC treats an SMA as a managed account structure, while an SMA mandate is the investment rule set used within...

How do compliance programs increase client retention rates?

ASIC expects AFS licensees to maintain compliance systems, and those programs increase client retention by turning regulatory obligations into reliable...

What is the key difference between “ongoing review” and an “annual review”?

ASIC doesn’t define “ongoing review” and an “annual review” as separate statutory categories. The key distinction is that ongoing review...

Why does retail or wholesale client classification matter?

Under the Corporations Act, retail or wholesale client classification determines which consumer protection obligations apply to an AFS licensee. Correct...

Can a client’s classification as retail or wholesale change over time?

Under the Corporations Act, a client’s classification as retail or wholesale can change if the facts supporting the classification change...

When is a client treated as a wholesale client under Australian financial services law?

Under the Corporations Act, a client is treated as a wholesale client only when they satisfy one or more of...

What is a retail client under Australian financial services law?

Under the Corporations Act, a retail client is a person or entity that does not satisfy the statutory tests for...

Why does retail or wholesale client classification matter?

Under the Corporations Act, retail or wholesale client classification determines which regulatory obligations apply when an AFS licensee provides financial...

What are the consequences of incorrectly classifying a client as retail or wholesale?

Under the Corporations Act, incorrectly classifying a client as retail or wholesale can cause an AFS licensee to breach applicable...

Is commission on group life insurance conflicted remuneration?

ASIC and the Corporations Act treat commission on group life insurance as not conflicted remuneration when a specific legislative exemption...

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