Funds Update - 29 November 2024

In this Funds Update for 29 November 2024:

1. Herbert Smith Freehills opens Luxembourg office
2. ASIC reissues funds and AFSL RGs 
3. Consultation re conflicts, advertising and disclosure RGs
4. ASIC guidance for ongoing and non-ongoing fee arrangements and FSGs

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Herbert Smith Freehills opens Luxembourg office

Herbert Smith Freehills (HSF) has strengthened its private capital offering and its presence in Europe with the opening of an office in Luxembourg in early 2025, with  funds, M&A and tax capabilities.

For more information on the opening, the HSF Firm News article can be found here.

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ASIC reissues funds and AFSL RGs

ASIC has reissued the following regulatory guides (RGs) and Information Sheet in relation to funds and Australian financial services (AFS) licensees:

• RG 126 Compensation and insurance arrangements for AFS licensees: sets out how ASIC administers the compensation requirements for retail clients under s 912B of the Corporations Act;
• RG 138 Foreign passport funds: guide for foreign passport fund operators seeking to enter, or operating in, Australia under the Asia Region Funds Passport;
• RG 175 AFS Licensing: AFS Financial product advisers–Conduct and disclosure: considers how certain conduct and disclosure obligations in Pt 7.7 and Div 2 of Pt 7.7A of the Corporations Act apply to the provision of financial product advice; and
• INFO 228 Limited AFS licensees: Advice conduct and disclosure obligations: sets out the conduct and disclosure obligations that apply to a limited AFS licensee and, in some cases, a representative of a limited AFS licensee when providing advice to retail clients.

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Consultation re conflicts, advertising and disclosure RGs

In 2025, ASIC will consult in relation to updates to a number of Regulatory Guides (RGs) including in relation to conflicts, advertising and disclosure, to reflect changes in law reform, case law and other relevant issues.

ASIC will consult on updating the following RGs:

• RG 53: The use of past performance in promotional material;
• RG 168: Disclosure: Product Disclosure Statements (and other disclosure obligations);
• RG 181: Licensing: Managing conflicts of interest;
• RG 183: Approval of financial services codes of conduct; and
• RG 234: Advertising financial products and services (including credit): Good practice guidance.

For further details about our upcoming releases and timing, find ASIC’s media release here. 

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ASIC guidance for ongoing and non-ongoing fee arrangements and FSGs

On 21 November 2024, ASIC issued new regulatory guidance and updated some existing regulatory guidance in response to reforms under the Treasury Laws Amendments (Delivering Better Financial Outcomes and Other Measures) Act 2024.

The new and updated relevant information sheets include:

• INFO 286 FAQs: Ongoing fee arrangements and consents, which answers frequently asked questions (FAQs) for financial advisers who must get a client’s written consent to enter into or renew an ongoing fee arrangement;
• INFO 287 FAQs: Non-ongoing fee requests or consents, which answers FAQs for financial advisers who must get a client’s written request or consent to charge non-ongoing fees to client superannuation accounts; and
• INFO 291 FAQs: FSGs and website disclosure information, which answers FAQs about obligations relating to Financial Services Guides (FSGs) and website disclosure information.

Notably, INFO 291 includes references to ASIC’s recently made instrument that allows AFS licensees or their representatives dealing in a financial product for the purposes of implementing financial product advice to rely on website disclosure information in place of providing an FSG.

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