FUNDS MANAGEMENT & FINANCIAL SERVICES Alert: Fund managers and the ban on commissions

29 April 2013


As part of its roll out of policy on the Future of Financial Advice (FOFA) reforms, the Australian Securities and Investments Commission (ASIC) has recently released its guidance on how it will regulate the ban on conflicted remuneration in Regulatory Guide 246: Conflicted remuneration.

The policy contains important guidance about the circumstances in which ASIC considers a fee will be conflicted remuneration. In particular, it addresses common fee structures between fund managers, dealer groups and platforms. Set out in this alert are some examples of common fee structures and how ASIC is going to apply the ban on the payment of conflicted remuneration.

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