ASIC Regulatory Guide 256: Client review and remediation conducted by advice licensees
This regulatory guide sets out our guidance on client review and remediation (review and remediation) that:
- is conducted by Australian financial services (AFS) licensees who provide personal advice to retail clients (advice licensees); and
- seeks to remediate clients who have suffered loss or detriment as a result of misconduct or other compliance failure by an advice licensee (or its representatives) in giving personal advice.
Review and remediation, which may be large or small scale, generally aims to place affected clients in the position they would have been in if the misconduct or other compliance failure had not occurred: see RG 256.5–RG 256.6 and RG 256.13–RG 256.20. The principles in this guide should also be applied to review and remediation that is not related to personal advice, to the extent relevant, although we recognise that:
- implementation may differ between the various types of review and remediation; and
- licensees may need to consider specific legislative requirements or other guidance that applies: see RG 256.7–RG 256.11.
Key considerations for advice licensees include:
- when to initiate the process of review and remediation (see Section B);
- the scope of review and remediation (see Section C);
- designing and implementing a comprehensive and effective process for review and remediation (see Section D);
- communicating effectively with clients (see Section E); and
- ensuring access to external review (see Section F).
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