ASIC has today updated its regulatory guidance on managing conflicts of interest for Australian financial services businesses.
The changes align our guidance with developments in law and policy and draw on ASIC's regulatory experience and insights from its surveillance of private markets.
'Conflicts of interest aren't just ethical dilemmas. They pose real threats that erode trust, tarnish reputations, and cause lasting harm to consumers, investors, and the entire financial ecosystem,' ASIC Commissioner Kate O'Rourke said.
'Effective conflict management is more than a regulatory checkbox-it's the cornerstone of trust in financial services.
The updated Regulatory Guide 181 AFS Licensing: Managing Conflicts of Interest (RG 181) sets out clear, principles-based guidance for Australian financial services (AFS) licensees.
It aims to help licensees fulfil their licensing obligation to have robust arrangements and tailored conflict management strategies in place.
Key updates include:
- how the law applies to conflicts of interest, including the scope of the conflicts management obligation and links to other related obligations
- the types of conflicts AFS licensees should identify and manage
- the need for robust, tailored arrangements to manage conflicts
- practical steps for effective conflict management, and
- a non-exhaustive 'catalogue' of related legal obligations and information.
The revised RG 181 replaces guidance issued in August 2004 and is part of ASIC's ongoing regulatory maintenance and simplification agenda-making it easier for businesses to access regulatory information and understand their obligations.
Consultation feedback and ASIC's response
Between 30 July and 5 September 2025, ASIC consulted publicly on proposed updates to RG 181.
ASIC received 26 submissions from industry, industry groups and other interested parties, with broad support for simplifying and updating the guidance.
Most feedback focused on technical details and specific guidance, such as the illustrative examples ASIC provided to identify different types of conflicts of interest.
ASIC updated RG 181 to address this feedback, where appropriate, and we have summarised our responses to key feedback.
You can read these responses along with the 22 non-confidential submissions to ASIC's public consultation on the relevant consultation paper webpage.
Background
Conflicts of interest are a significant source of misconduct as well as consumer, investor and economic harm within the financial services sector.
Under section 912A(1)(aa) of the Corporations Act 2001, AFS licensees must have adequate arrangements in place to effectively manage all conflicts of interest, except those that occur wholly outside a financial services business.
The management of conflicts of interest was raised as an area requiring further clarification in a number of submissions to ASIC's discussion paper on the evolving dynamics in public and private markets, and was a compliance issue identified in ASIC's private credit surveillance report (REP 820). The issuance of the updated RG 181 was outlined as a deliverable in ASIC's roadmap for the next 12-18 months, released as part of our response to the discussion paper in November (REP 823).
More information
- Regulatory Guide 181 AFS Licensing: Managing Conflicts of Interest (RG 181)
- ASIC seeks feedback on proposed updates to conflicts management guidance (25-150MR)
- Consultation paper 385 Proposed update to RG 181 Licensing: Managing conflicts of interest (CP 385)
