Where are your priorities?

Originally published | 16th September 2016

Set out in s961J of the Corporations Act, is a rule that many advisers might gloss over. It is the conflicts priority rule.

This rule is similar in nature to the previous obligation to provide “appropriate advice”. The priority rule expressly requires an advice provider (Financial Adviser) to prioritise the interests of the client if the financial adviser knows, or reasonably ought to know; when they give the advice that there is a conflict between the interests of the client and the interests of:

  • The financial adviser; or
  • The financial adviser’s Australian Financial Services (AFS) licensee.