Australian Securities & Investments Commission consults on updated conflicts of interest guidance for AFS licensees

The Australian Securities & Investments Commission has launched a consultation on proposed updates to Regulatory Guide 181 on managing conflicts of interest, setting out revised expectations for how Australian financial services (AFS) licensees should comply with their conflicts management obligation. The changes update guidance last revised in 2004, aligning it with developments in law and policy and drawing on insights from ASIC’s private markets surveillance work. The draft guidance explains the legal framework (including scope and interaction with related obligations), the types of conflicts AFS licensees need to identify and manage, and the need for robust, tailored arrangements that are adequate to manage conflicts, as well as practical approaches to effective conflicts management. It also adds a “roadmap” to signpost other conflicts management obligations relevant to AFS licensees, against the backdrop of the conflicts management obligation in section 912A(1)(aa) of the Corporations Act 2001. Submissions on Consultation Paper 385 are due by 5 pm AEST on 5 September 2025. ASIC also indicated it intends to publish findings later in 2025 from a surveillance focusing on auditors’ compliance with independence and conflicts of interest obligations.