🚨 Conflicts of Interest: What’s Changed, What to Review, and How to Update Your Policy

Conflicts of interest are part of financial services. They always have been.

What’s changing is how clearly firms are expected to manage them in practice — not just describe them in a policy.

Recent updates to regulatory guidance have prompted many brokers, MGAs and insurers to take a fresh look at their conflict of interest policies. For some, the policy is outdated. For others, it’s technically correct but no longer practical enough.

This article explains:

• what has changed and when,
• how conflict management fits with other key regulatory obligations, and
• what firms should focus on when reviewing or re-writing their policies

1️⃣Background: what changed, and when

In December 2025, a revised version of Regulatory Guide 181 (RG 181) came into effect. RG 181 deals with how financial services firms identify and manage conflicts of interest.

Earlier versions of RG 181 focused largely on:

• identifying conflicts, and
• disclosing them to clients.

The updated guidance places more emphasis on what firms actually do when conflicts arise.

In simple terms, there is now more focus on:

• moving beyond disclosure alone,
• being clear about when conflicts should be avoided, not just disclosed,
• having practical ways to make decisions when client interests and commercial interests pull in different directions, and
• showing clear ownership and escalation when conflicts are difficult or sensitive.

This reflects a broader shift across financial services regulation toward outcomes and behaviour, rather than policies that exist only on paper.

For many firms, this doesn’t mean their policy is “wrong” — but it may no longer be specific, practical or clear enough.

2️⃣ How RG 181 fits with other regulatory obligations

RG 181 should not be read in isolation. Conflict of interest policies sit at the intersection of several long-standing regulatory requirements.

1. The obligation to have mechanisms to manage conflicts

Across financial services laws, firms are required to have adequate arrangements to manage conflicts of interest.

This goes beyond having a policy document. It means having:

• practical ways to identify conflicts,
• clear steps for managing or escalating them, and
• rules for when a firm should step back and not act.

RG 181 reinforces this by focusing attention on how those arrangements work in real situations, not just how they are described.

2. Broader financial services obligations

More broadly, financial services laws require firms to act efficiently, honestly, and fairly, and to prioritise client interests when providing services.

Conflict of interest policies are often one of the first documents reviewed when questions arise about conduct, complaints, or decision-making. RG 181 strengthens the link between conflict decisions and broader conduct outcomes.

3️⃣What firms should review in their Conflict of Interest Policy

In practice, most gaps are not about missing sections — they’re about lack of clarity.

Here are the areas that commonly need attention.

1. Clear rules on when the firm will not act

Many policies explain how conflicts are disclosed, but never clearly say:

• when a conflict must be avoided, or
• when the firm will decline or stop acting.

Policies should draw a clear line. Staff should not be left guessing.

2. Turning “best interests” into a real decision test

Best interests are often mentioned, but not explained.

A strong policy helps staff understand:

• how best interests are weighed when conflicts arise, and
• what happens when commercial interests point in a different direction.

3. Reducing reliance on disclosure alone

Disclosure is still important — but it does not fix every conflict.

Policies should clearly explain:

• when disclosure is enough,
• when additional controls are needed, and
• when disclosure is not enough and the firm must step back.

4. Stronger treatment of remuneration, gifts and benefits

Commissions, non-monetary benefits and gifts are some of the highest-risk conflict areas, yet they are often under-explained.

Good policies:

• address these topics together,
• deal with frequency and perception, not just dollar amounts, and
• require recording and monitoring over time.

5. Clear ownership and escalation

Policies should clearly state:

• who owns the policy,
• who staff should speak to when unsure, and
• who makes decisions when conflicts are complex or sensitive.

This gives staff confidence and strengthens governance.

4️⃣ How to re-write a policy without overcomplicating it

Re-writing a conflict of interest policy does not mean making it longer or more legalistic.

In practice, the most effective policies:

• use plain language,
• include realistic examples,
• embed simple decision filters, and
• reflect how decisions are actually made day to day.

The aim is clarity — not perfection.

🚀How Curium can help

Many firms know their conflict of interest policy needs updating, but struggle with:

• overlapping regulatory requirements,
• translating guidance into practical rules, or
• keeping policies current as regulation evolves.

At Curium, we help brokers, insurers and MGAs:

• review conflict of interest policies against the latest regulatory changes,
• identify practical gaps, not just theoretical ones, and
• update policies so they are clear, usable and defensible.

If you’d like an independent review of your conflict of interest policy, or help updating it in line with recent changes, get in touch.

Authors: Tetiana George, CEO and Co-Founder of Curium, Co-Chair of Insurtech Australia, member of ASIC Digital Finance Advisory Panel, and Yvonne Lam, Partner Corporate Insurance & Regulatory Law, Clyde & Co

Link to the new RG https://download.asic.gov.au/media/ebykrtdj/rg181-published-16-december-2025.pdf

ASIC RG168:

https://download.asic.gov.au/media/flkjouql/rg168-published-03-december-2025.pdf

ASIC RG 181:

Regulatory Guide RG 181 AFS licensing: Managing conflicts of interest

ASIC RG 183:

RG 183 Codes of conduct for the financial services and credit sectors | ASIC

ASIC RG 221:

RG 221 Facilitating digital financial services disclosures | ASIC