ASIC review of broker conduct spurs renewed compliance focus
The Finance Brokers Association of Australia (FBAA) has reminded broker members to ensure all advertising complies with the Australia Securities & Investments Commission’s (ASIC) Regulatory Guide 234 on financial products and credit promotion.
In a notice to brokers, the association stressed that all public statements must be accurate, verifiable and properly contextualised, and that brokers should follow professional advertising standards to protect the industry’s reputation.
“It looks like ASIC's main objective in revising the guidance was to introduce more examples based on enforcement action they have been successful in,” said David Carson, regulatory compliance specialist at the FBAA. “Remember this simple rule: Only say things that are factually true, and if you say something that you cannot substantiate as factually true, then don’t say it at all.”
The FBAA also backed the Mortgage & Finance Association of Australia’s (MFAA) submission to ASIC on the guidance update, saying a unified message from industry bodies was important in demonstrating that brokers take regulatory obligations seriously.
Meanwhile, at MFAA’s online event earlier this week, ASIC held its first industry discussion on the review of brokers’ Best Interests Duty (BID) compliance since the duty took effect in 2021.
ASIC senior executive leader Nathan Bourne outlined the regulator’s data‑driven monitoring of BID, including work with aggregators to obtain consistent information on product recommendations and oversight frameworks.
“We want to make sure those frameworks are applied consistently and ultimately that they can be tested by aggregators and licensees to make sure they’re meeting their obligations,” Bourne said.
For MFAA chief executive Anja Pannek, the discussion came at a critical time for brokers. “Hearing directly from ASIC helps our members understand not just the compliance requirements, but the intent behind the regulation and how to embed best practice in their businesses,” she said.
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