The Australian Securities and Investments Commission (ASIC) has updated its regulatory guide on conflicted and other banned remuneration to take into account recent legislative changes.

ASIC says the updates in Regulatory Guide 246 reflect the end of the grandfathering of conflicted remuneration for financial product advice on January 1.

The guide also reflects the extension of the ban on conflicted remuneration to stamping fees paid in relation to listed investment companies and listed investment trusts - excluding real estate investment trusts - that took effect on July 1 this year.

“The ban on conflicted remuneration for financial product advice applies to all benefits given on or after January 1 2021,” ASIC says. “Product issuers are required to provide rebates to clients for all previously grandfathered benefits that they remain legally obliged to pay on or after 1 January 2021.”

The ending of grandfathering of conflicted remuneration paid to financial advisers is a recommendation made by the Hayne royal commission in its final report last year to the Government.

Click here for the ASIC regulatory guide.