Future of financial advice reform: The changing content and nature of the 'best interests obligation'

In 2009, the Parliamentary Joint Committee on Corporations and Financial Services questioned whether the formulation of a statutory fiduciary duty might ensure that client-focused advice was provided to financial service clients. In 2012, amendments were made to the Corporations Act 2001 (Cth) in response to the Joint Committee's recommendations. This paper examines the evolution of the 'best interests obligation' to demonstrate that the statutory obligation now in place in the Corporations Act does not an enact a statutory fiduciary duty.