Royal Commission recommendation 2.2 (Disclosure of lack of independence) aims to ensure consumers are not misled and receive accurate information. This recommendation was implemented in the Financial Sector Reform (Hayne Royal Commission Response No. 2) Act 2021 and became effective on 1 July 2021.
The independence requirements contained in s923A of the Corporations Act restrict the use of the terms ‘independent’, ‘impartial’ and ‘unbiased’ (or any other words “of like import”) unless specific criteria are met.
Section 923a requirements
If I receive asset-based fees can I call myself 'independent'?
Does an APL prevent me calling myself 'independent'?
Can I use 'independently owned', 'non-aligned' and 'non-institutionally owned'?