Conflict between client’s interests and those of provider, licensee, authorised representative or associates
(1) If the provider knows, or reasonably ought to know, that there is a conflict between the interests of the client and the interests of: (a) the provider; or (b) an associate of the provider; or (c) a financial services licensee of whom the provider is a representative; or (d) an associate of a financial services licensee of whom the provider is a representative; or (e) an authorised representative who has authorised the provider, under subsection 916B(3), to provide a specified financial service or financial services on behalf of a financial services licensee; or (f) an associate of an authorised representative who has authorised the provider, under subsection 916B(3), to provide a specified financial service or financial services on behalf of a financial services licensee; the provider must give priority to the client’s interests when giving the advice. Note: A responsible licensee or an authorised representative may contravene a civil penalty provision if a provider fails to comply with this section (see sections 961K and 961Q). The provider may be subject to a banning order (see section 920A). (2) If: (a) the provider is: (i) an agent or employee of an Australian ADI; or (ii) otherwise acting by arrangement with an Australian ADI under the name of the Australian ADI; and (b) the subject matter of the advice sought by the client relates only to the following: (i) a basic banking product; (ii) a general insurance product; (iii) consumer credit insurance; (iv) a combination of any of those products; subsection (1) does not apply to the extent that the advice relates to a basic banking product or a general insurance product or a combination of those 2 products. (3) Subsection (1) does not apply to the extent that the subject matter of the advice sought by the client is a general insurance product.
Sourced from the Federal Register of Legislation at 17 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.
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