ASIC RG 175 Explained: Conduct and Disclosure Rules for Financial Advisers
7 min read · facts checked 28 Oct 2026
As at 28 October 2026, ASIC Regulatory Guide 175 (AFS licensing: Financial product advisers—Conduct and disclosure, reissued 21 November 2024) is ASIC's main guidance on how Part 7.7 of the Corporations Act (the general advice warning, the Financial Services Guide and the Statement of Advice) and Division 2 of Part 7.7A (the best interests duty and related obligations) apply to advice for retail clients. ASIC's Exam preparation guidance (v6.0, September 2026) lists it as suggested reading for both the regulatory and legal obligations area and the financial advice construction area.
What is in RG 175
| Section | Covers | Where it shows up in the exam |
|---|---|---|
| A Overview | The two sets of obligations and who owes each | Questions on who breached: the licensee, the authorised representative or the individual adviser |
| B Providing financial product advice | Personal v general advice, retail clients, the general advice warning, restricted words such as "independent" | Classifying a conversation as general or personal advice |
| C Preparing and providing an SOA | When an SOA is needed, the exceptions, further advice and records of advice, content and presentation | SOA extracts and advice-document questions |
| D Best interests duty and related obligations | Sections 961B, 961G, 961H and 961J, the safe harbour, scaled advice, record keeping | Most scenario questions on the quality of advice |
| Appendices | Examples of personal v general advice and two worked advice reviews | Practice for scenario questions |
Providing entity or advice provider?
RG 175 splits the duties between two people. The Part 7.7 disclosure duties (FSG, general advice warning, SOA) sit on the providing entity: the licensee, or the authorised representative where one gives the advice. An employee who is not an authorised representative is not a providing entity, so the licensee is (RG 175.15). The Division 2 conduct duties sit on the advice provider, usually the individual who gives the personal advice (RG 175.18).
- The licensee must take reasonable steps to ensure its representatives comply with ss 961B, 961G, 961H and 961J (s 961L; RG 175.20).
- The licensee contravenes a civil penalty provision if it breaches those sections, or if a representative of its who is not an authorised representative does (s 961K).
- An authorised representative that breaches them can be liable for a civil penalty itself (s 961Q; RG 175.21).
- Where an authorised representative is the providing entity, the licensee still has an overriding duty to see that the advice complies with Part 7.7 (RG 175.16).
Personal or general advice
Advice is personal if the provider considered one or more of the client's objectives, financial situation and needs, or a reasonable person might expect them to have (s 766B(3); RG 175.11), and considering one aspect is enough (RG 175.26). RG 175.25 lists the circumstances ASIC weighs, including whether personal advice was offered or asked for, whether the provider asked about the client's circumstances, whether the advice was directed to a named client and whether it looks tailored. A general advice warning is relevant but does not settle the question (RG 175.25, note 2), and advice can be personal when given at a seminar, by phone, or by someone who did not intend it to be (RG 175.31). For the line between factual information and advice, see our RG 244 guide.
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Statements of Advice and records of advice
- Personal advice to a retail client needs an SOA (s 946A), unless an exception applies. RG 175.89 lists them: for example, advice to a client who is not a retail client, and, subject to conditions, advice on basic deposit products and certain general insurance products such as motor vehicle and home contents cover.
- Further advice can be recorded in a record of advice instead of a new SOA if an earlier SOA set out the client's relevant circumstances and neither those circumstances nor the basis of the advice is significantly different (RG 175.93). The record is kept for seven years, and the client must be given the remuneration and conflicts information an SOA would contain (RG 175.94).
- For the FSG and website disclosure information, RG 175 now points to ASIC's INFO 291 (RG 175, Table 2).
- What an SOA must contain, and the small-investment relief, are in our Statement of Advice guide.
The best interests duty in RG 175
- Better position: ASIC asks whether a reasonable advice provider would believe the client is likely to be in a better position if they follow the advice (RG 175.164).
- Safe harbour: if an advice provider cannot show every element, they cannot rely on the safe harbour (RG 175.188).
- Three separate duties: the best interests duty in s 961B, the appropriate advice rule in s 961G and the priority rule in s 961J operate alongside each other every time personal advice is given (RG 175.155(e)).
- Scaled advice: all personal advice can be scaled, and there are not two sets of rules for comprehensive and limited advice (RG 175.329–175.330).
- The best interests duty guide walks through the seven safe harbour steps.
Worked example
Original example, not an exam question. Tom is a salaried adviser at Coastline Advice, an AFS licensee. He is a relevant provider but not an authorised representative. He advises Grace, 47, to roll her super into a new fund, but does not ask about the life cover inside her old fund, which she would lose.
- Who must give Grace the SOA? Coastline, as the providing entity, because Tom is not an authorised representative (RG 175.15).
- Who owes the best interests duty? Tom, as the advice provider (RG 175.18). Coastline must take reasonable steps to ensure he complies (s 961L), and if he breaches s 961B, Coastline contravenes s 961K too, because he is not an authorised representative.
- What did Tom miss? Losing insurance on a rollover is a circumstance relevant to the advice (s 961B(2)(b)), and an SOA recommending a replacement product must also set out the costs and lost benefits of the switch (s 947D).
Traps the exam sets
- "An authorised representative gave the advice, so the licensee is off the hook." No. The licensee must still take reasonable steps to ensure compliance (s 961L; RG 175.16), and it can be responsible to the client for the loss (see section 917B).
- "It carried a general advice warning, so it was general advice." Not decisive (RG 175.25, note 2).
- "Further advice always needs a new SOA." No, if the further advice conditions are met a record of advice will do (RG 175.93).
- "Following the safe harbour steps is enough." The advice must also be appropriate (s 961G), and conflicts must be resolved in the client's favour (s 961J).
Quick check
4 questionsAnswer each one before you tap to see the answer and why. All are from the practice bank.
- 1mediumScenario
Twelve months after giving Jin, 46, an SOA recommending a diversified portfolio on a platform, his adviser, Dev, recommends rebalancing within the same platform. Jin's job, income, goals and risk tolerance are unchanged, and Dev's basis for advising is the same. For this further advice, Dev…
- A may use a record of advice only if the rebalancing totals under A$15,000
- B may use a record of advice instead of an SOA
- C needs a new SOA: the previous SOA is now twelve months old
- D needs no document: rebalancing within the same platform is not advice
Show the answer
Answer: B. may use a record of advice instead of an SOA
Answer: May use a record of advice instead of an SOA. Jin's earlier SOA set out his relevant circumstances, and neither those circumstances nor the basis of the advice are significantly different, so the further advice relief applies.Why not the others:• may use a record of advice only if the rebalancing totals under A$15,000: The A$15,000 figure belongs to the separate small investment relief (s946AA; reg 7.7.09A), not to further advice.• needs a new SOA: the previous SOA is now twelve months old: A new SOA is always permitted but nothing makes it necessary, because this relief has no twelve-month expiry.• needs no document: rebalancing within the same platform is not advice: Rebalancing recommends disposing of some investments and acquiring others, so it is financial product advice (s766B(1)).Watch out: Dev must still give Jin the remuneration and interests information and keep a record of the advice for 7 years (reg 7.7.09(3)).Rule: Under s946B as substituted by reg 7.7.10AE, no SOA is needed for further advice where an earlier SOA set out the client's relevant personal circumstances and those circumstances, and the basis of the advice, are not significantly different.Source: Corporations Act 2001 (Cth) ss766B(1), 946AA (compilation No. 149, 19 Sep 2026); Corporations Regulations 2001 (Cth) regs 7.7.09(3), 7.7.09A, 7.7.10AE (compilation No. 214, 1 Sep 2026)
- 2mediumRecall
Part 7.7 of the Corporations Act provides that … (i) where general advice relates to acquiring a particular product, the warning must tell the client to obtain and consider the PDS before deciding. (ii) a Financial Services Guide may be made up of two or more separate documents given at the same time.
- A (i) True, (ii) True
- B (i) True, (ii) False
- C (i) False, (ii) True
- D (i) False, (ii) False
Show the answer
Answer: A. (i) True, (ii) True
Answer: (i) True, (ii) True. Each statement restates a Part 7.7 rule as it is written.(i) True. Where general advice relates to acquiring a particular financial product, s949A(2)(c)(i) requires the warning to tell the client to obtain and consider the PDS before deciding whether to acquire it.(ii) True. Section 942D allows an FSG to be made up of two or more separate documents given at the same time, provided each document says it is part of the FSG and identifies the other parts.Rule: The PDS warning is the extra step for product-specific general advice, while a split FSG is only a format choice: every part must still be given, so no FSG content can be left out by splitting it.Source: Corporations Act 2001 (Cth) ss942D, 949A(2) (compilation No. 149, 19 Sep 2026)
- 3mediumRecall
Several best interests obligations, such as making inquiries under s961B(2)(c) and warning under s961H, apply only when something is 'reasonably apparent'. Under s961C, something is reasonably apparent when…
- A the client has expressly told the provider about it in writing
- B it would be apparent to a careful provider with reasonable expertise
- C the provider actually noticed it, judged by their own level of expertise
- D the licensee's compliance team has flagged it in the client file
Show the answer
Answer: B. it would be apparent to a careful provider with reasonable expertise
Answer: It would be apparent to a careful provider with reasonable expertise. Section 961C sets an objective test, not one based on what the client wrote or what the provider happened to notice.Why not the others:• the client has expressly told the provider about it in writing: a gap can be apparent without the client saying anything in writing.• the provider actually noticed it, judged by their own level of expertise: a provider who misses what a careful, reasonably expert adviser would notice cannot rely on their own lower expertise.• the licensee's compliance team has flagged it in the client file: a compliance flag may show something was apparent, but it is not the test.Rule: Something is reasonably apparent if it would be apparent to a person with a reasonable level of expertise in the subject matter of the advice, exercising care and objectively assessing the information the client gave (s961C).Source: Corporations Act 2001 (Cth) s961C (compilation No. 149, 19 Sep 2026)
- 4mediumScenario
Leilani Ruatara, 44, a nurse, asks her adviser, Tomasz Wilk of Southbank Planning, for advice only on whether to make a A$20,000 personal deductible super contribution this financial year. Her fact-find records her salary, super balance and home loan, but lists her credit card debt as 'unknown'. The safe harbour step that this gap MOST directly engages is…
- A conducting a reasonable investigation of every super product available in the market
- B recording the agreed scope of the advice in a signed letter of engagement
- C warning her that the advice may rest on incomplete information about her debts
- D making reasonable inquiries to get complete and accurate information
Show the answer
Answer: D. making reasonable inquiries to get complete and accurate information
Answer: Making reasonable inquiries to get complete and accurate information. Leilani's debt bears directly on whether tying up A$20,000 in super suits her cash flow and priorities, so Tomasz must follow up the apparent gap.Why not the others:• conducting a reasonable investigation of every super product available in the market: a reasonable investigation never requires a look at every product available (s961D), and it does not address the gap.• recording the agreed scope of the advice in a signed letter of engagement: recording the scope is good practice, but scaling the advice does not excuse ignoring an apparent gap within it.• warning her that the advice may rest on incomplete information about her debts: the s961H warning is a real obligation but applies only if the information is still incomplete after inquiries, and s961H(5) keeps the duty to inquire.Rule: Where it is reasonably apparent that information about the client's relevant circumstances is incomplete or inaccurate, the provider makes reasonable inquiries to obtain complete and accurate information (s961B(2)(c)).Source: Corporations Act 2001 (Cth) ss961B, 961D, 961H (compilation No. 149, 19 Sep 2026)
Our study notes cover advice and disclosure, FSG, SOA and record of advice and the best interests duty step by step. Our free financial adviser practice exam is a timed mock of 20 original questions in 30 minutes across all three areas, mostly on client scenarios. You can try 5 questions with no sign-up, each marked with a worked answer; the full timed mock needs a free account.
Sources (checked 28 Oct 2026)
- ASIC RG 175 AFS licensing: Financial product advisers—Conduct and disclosure (November 2024)
- Corporations Act 2001 (Cth), ss 766B, 946A, 949A and 961B–961Q (Compilation No. 149, 19 September 2026)
- Corporations Act 2001 (Cth), Pt 7.7 Div 3 (ss 946A–947E) and Pt 7.7A Div 2 (ss 961B–961L) (Compilation No. 149, 19 September 2026)
- Corporations Regulations 2001, regs 7.7.09, 7.7.09A and 7.7.10AE (Compilation No. 214, 1 September 2026)
- ASIC RG 244 Giving information, general advice and scaled advice (December 2012, note added December 2021)
- ASIC: Financial adviser exam: Exam preparation guidance, version 6.0 (September 2026)
Adviser Exam Prep is an independent study aid for candidates sitting the financial adviser exam. It is not affiliated with, endorsed by or connected to the Australian Securities and Investments Commission (ASIC), the exam's administrator or any AFS licensee. "ASIC" is used only to describe the exam. All questions are original practice material, not past or live exam questions, and nothing on this site is financial advice.
Frequently asked questions
What is ASIC RG 175?
Regulatory Guide 175, AFS licensing: Financial product advisers—Conduct and disclosure, reissued 21 November 2024. It explains how Part 7.7 of the Corporations Act (general advice warning, FSG, SOA) and Division 2 of Part 7.7A (the best interests duty and related obligations) apply to advice to retail clients.
Is RG 175 in the financial adviser exam?
It is suggested reading for the regulatory and legal obligations area and the financial advice construction area (ASIC Exam preparation guidance v6.0, September 2026). Expect to apply its guidance to client scenarios rather than quote it.
Who owes the best interests duty under RG 175?
The advice provider, usually the individual who gives the personal advice (RG 175.18). The licensee must take reasonable steps to ensure its representatives comply (Corporations Act s 961L).
More guides
- ASIC RG 244 Explained: Factual Information, General Advice and Scaled Advice
- The Best Interest Duty (s 961B) and the Safe Harbour Steps, Explained for the Exam
- Statement of Advice Requirements: What an SOA Must Contain, and When a Record of Advice Will Do
- Section 917B Explained: When a Licensee Is Liable for Its Representative's Advice
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